Vol.45 No.1 JUL‑SEP 2016

V O L U M E 4 5 J U L Y – S E P T E M B E R 2 0 1 6 N U M B E R 1 Beneficial reuse innovations . Infrastructure funding . Type approval for ballast systems . LNG powered vessel delivers G LGREAT LAKER Interlake Steamship The Interlake Steamship Company 7300 Engle Road Middleburg Heights, Ohio 44130 Phone: 440-260-6900 • 800-327-3855 FAX: 440-260-6945 Email: boconnor@interlake-steamship.com Website: www.interlakesteamship.com DEDICATION Throughout Interlake Steamship’s successful history, one thing has never changed – the company’s dedication to providing superior customer service. Interlake builds on its past by looking ahead every day – to changing customer needs, to engineering innovation, to personnel training, to safety upgrades. Ensuring a modern, competitive, well-maintained fleet operated by knowledgeable shore-side staff and experienced vessel crews means that Interlake’s customers receive safe and reliable cargo delivery. Interlake is committed to using yesterday as a benchmark to be exceeded tomorrow. Great Lakes transportation is our business, our only business. Let us deliver for you. Great Lakes Fleet Marine Tech Marine Pollution Control 2 www.greatlakes-seawayreview.com THE INTERNATIONAL MARITIME MAGAZINE OF THE GREAT LAKES/ST. LAWRENCE SEAWAY SYSTEM VOLUME 45 JULY-SEPTEMBER 2016 NUMBER 1 Business and Editorial Office 221 Water Street Boyne City, Michigan 49712 USA (800) 491-1760 FAX: (866) 906-3392 harbor@harborhouse.com www.greatlakes-seawayreview.com EDITORIAL AND BUSINESS STAFF Jacques LesStrang Publisher Emeritus Michelle Cortright Publisher Janenne Irene Pung Editor Cris Shankleton Creative Director Lisa Liebgott Production Manager Tina Felton Business Manager Amanda Korthase Circulation Manager ADVERTISING DEPARTMENT Kathy Booth Account Manager Rex Cassidy Account Manager James Fish Senior Account Manager Patricia A. Rumpler Account Manager Ellen Trimper Account Manager William W. Wellman Senior Account Manager EDITORIAL ADVISORY BOARD John D. Baker, President, Great Lakes District Council, International Longshoremen’s Association; Mark Barker, President, The Interlake Steamship Company; Dale Bergeron, Associate Professor, Minnesota Sea Grant; David Bolduc, Executive Director, Green Marine; Stephen Brooks, President, Chamber of Marine Commerce; Joe Cappel, Vice President of Business Development, Toledo-Lucas County Port Authority; Steven A. Fisher, Executive Director, American Great Lakes Ports Association; Tim Heney, Chief Executive Officer, Thunder Bay Port Authority; Peter Kakela, Ph.D., Professor, Department of Community, Agriculture, Recreation and Resource Studies, Michigan State University; Paul LaMarre, Jr., Port Director, Port of Monroe; Kevin McMonagle, Vice President-Operations, American Steamship Company; Allister Paterson, President, Canada Steamship Lines; Mark Pathy, President and Co-CEO, Fednav Limited; Wayne Smith, Senior Vice-President, Commercial, Algoma Central Corporation; Joseph P. Starck, Jr., President, Great Lakes Shipyard; James H.I. Weakley, President, Lake Carriers’ Association; Wendy Zatylny, President, Association of Canadian Port Authorities. SUBSCRIPTIONS – (800) 491-1760 or www.greatlakes-seawayreview.com Published quarterly. One year $32.00; two years $53.00; three years $75.00. One year print & digital edition $38. Foreign: One year $47.00; two years $68.00; three years $100.00. One year print & digital edition $53. One year digital edition $20. Mobile edition available on the iTunes store. Back issues available for $7.50. Payable in U.S. funds. Article reprints are also available. Reprints and scans produced by others not permitted. ISSN 0037-0487 SRDS Classifications: 84, 115C, 148 Great Lakes/Seaway Review and Great Laker are published quarterly. Postmaster: Send address changes to Great Lakes/Seaway Review, Great Laker, 221 Water Street, Boyne City, Michigan 49712 USA. © 2016 Harbor House Publishers, Inc., Boyne City, Michigan. All rights reserved. No article or portion of same may be reproduced without written permission of publisher. Great Lakes/Seaway Review Cover: Grain exports from Duluth. Source: Robert Welton. Great Laker Cover: Removing the bell from the Challenger. Source: Paul LaMarre III. Inland. S Sea. Solut tions. M www.MarinePollu +1 (313) 84 Marine MPC IS OSRO #003 utionControl.com 49-2333 – 24/hour Pollution Control .. .. THE SOLUTION for DETERIORATING COMMERCIAL Marine Tech process repa in place at a replacement the water’s s dry environm commerce a For the highe deteriorated M DOCKS. s innovative, proprietary ’ airs corroded sheet piling much lower cost than t. All work is done below surface in a relatively ment without disrupting across the owner’s dock. est quality repair of your docks, call us. TECH MARINE 8-720-2833 etechduluth.com .. ……………… …….. luth, MN 55802 218 marine …. Du GREAT LAKES/SEAWAY REVIEW July-September, 2016 3 The international maritime magazine of the Great Lakes/St. Lawrence Seaway system A R T I C L E S J U LY- S E P T E M B E R 2 0 1 6 Great Lakes/St. Lawrence Seaway Between issues of Great Lakes/Seaway Review, stay current with our free weekly news service, Digital Dateline, at www.greatlakes-seawayreview.com/digdateline/ Using private sector funding to build and expand port infrastructure. Page 9. Fleet expansions include Group Desgagnes’ LNGpowered tanker. Page 43. William P. Snyder/St. Marys Challenger original bell discovered, cleaned and donated. Page 62. Maritime Heritage SOUL SURVIVOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 St. Marys Challenger’s century-old bell uncovered. Passenger Ferries A HIGH-SPEED SHORTCUT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Lake Express receives upgrades, tracks new travel trends. Training & Recruitment History GREAT LAKES MARITIME ACADEMY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 The first school oriented to the needs of America’s inland sea. Meet the Crew A QUIET PUBLIC LIFE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 Capt. Dan Hobbs tests warships, maneuvers tankers in tight ports without fanfare. D E P A R T M E N T S Dateline: Great Lakes/St. Lawrence Seaway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 The Administrator’s Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Great Lakes Ports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Guest Editorials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49, 57 On The Radar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Infrastructure WIDENING HORIZONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Using the private sector to expand port infrastructure investment and business sustainability. Interview DEEP DETERMINATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 New Port of Chicago executive combines past strengths with renewed vision. Dredging RESEARCHING OPPORTUNITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Ohio explores new solutions for dredged sediment. Ballast Water Management APPROVAL PROCESS UNDERWAY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 With 37 systems on the horizon and 20 in testing, the Coast Guard talks implementation. Training & Recruitment RAISING MARITIME’S PROFILE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Maritime academies, programs use new approaches for the next generation. Marine Photography WHAT A REACH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Edwin H. Gott uses extended self-unloading boom to deliver the goods. Admiralty Law HEIGHTENING ENFORCEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 U.S. Customs and Border Protection create new division to police Jones Act. Shipbuilding HISTORIC FLEET TRANSFORMATION UNDERWAY . . . . . . . . . . . . . . . . . . . . . . . 43 Trends for Canadian newbuilds and U.S. fleet renewals reach industry milestones. Ports A PORT FOR ALL SEASONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Escanaba welcomes deepwater port development for growth in Michigan’s Upper Peninsula and beyond. Environment VOLUNTARY ACCOUNTABILITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 Green Marine continues to offer ports, shipowners and others structure for improved performance. MAINTAINING THE RIVER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Port authority uses specialized vessels, staff to rid the water of debris. Technology YEAR-ROUND BUOYS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 U.S. Coast Guard looks to revolutionize seasonal aids to navigation. G R E A T L A K E R www.greatlakes-seawayreview.com Great Lakes/Seaway Review 221 Water Street, Boyne City, Michigan 49712 USA (800) 491-1760 FAX: (866) 906-3392 harbor@harborhouse.com Fednav GREAT LAKES/SEAWAY REVIEW July-September, 2016 5 Fednav Limited realigns leadership Paul Pathy has assumed the role of sole Chief Executive Officer of Fednav Limited and Fednav International Ltd (FIL). Since 2010, Paul and Mark Pathy have led Fednav Limited as Presidents and Co- CEOs, with Mark also acting as President and CEO of FIL since 2008. Paul and Mark mutually concluded it would be best for Fednav to operate under one leader. Paul Pathy joined Fednav in 2003 as Vice-President and General Manager of Federal Marine Terminals (FMT), moving to Senior Vice- President of the Business Development Group in 2007. Since 2010, he has been responsible for various company departments, including Shipowning, Arctic Operations and Projects, as well as Finance, Investment and Risk Management. While Mark is leaving, he continues to be involved in Fednav’s activities as a major shareholder and member of the board. He also continues as President of Mavrik Corp. Mavrik is a major investor in Stingray Digital Group, Inc., a Canadian company reaching 400 million pay-television subscribers in 152 countries and a multi-platform music service provider. The leadership change was effective September 10. . Rod Jones announces retirement from CSL Rod Jones is retiring as President and Chief Executive Officer of The CSL Group Inc., effective March 31, 2017. Jones has led the company for nine years; his overall tenure spans more than 30 years. “Rod has stood out as an inclusive, visionary and modern leader who leaves behind a sound company and lasting legacy built on authentic values and a commitment to people, safety and the environment,” said Paul Martin, CSL Board Chair. Effective April 1, Louis Martel, President, CSL International and Executive Vice-President, CSL Group, will assume the role of Chief Executive Officer. Martel joined Canada Steamship Lines as a Naval Architect in 1997 and transferred to CSL Americas in 2003, where he became Vice-President, Technical Operations. He took the helm of Canada Steamship Lines as President in April 2012 and was promoted to Executive Vice-President, CSL Group, and President, Canada Steamship Lines, in January 2014. A year later, he was appointed President, CSL International. . G R E A T L A K E S / S T . L A W R E N C E S E A W A Y DATELINE Paul Pathy Louis Martel With Finland’s accession to the International Maritime Organization’s (IMO) International Convention for the Control and Management of Ships’ Ballast Water and Sediments, the press for consistent ballast water regulations builds. The International Chamber of Shipping (ICS) is calling for IMO states to finalize the G8 Type Approval Guidelines for treatment systems at the October meeting. “We must ensure that shipowners can have absolute confidence that the expensive equipment they will soon have to install will be effective in treating ballast water conditions normally encountered during worldwide operations and be regarded as fully compliant during Port State Control inspections,” said ICS Chairman Esben Poulsson, noting that an implementation date gives shipowners some certainty in making decisions about whether to refit the new mandatory treatment equipment or to start sending ships for early recycling. The Finnish accession brings the combined tonnage of contracting states to 35.1441 percent, with 52 contracting parties. The convention stipulates that it will enter into force 12 months after ratification by a minimum of 30 states, representing 35 percent of world merchant shipping tonnage. With ratification in place, the convention is expected to enter into force September 8, 2017. Ships will be required to “manage their ballast water to remove, render harmless, or avoid the uptake of discharge of aquatic organisms and pathogens within ballast water and sediments,” according to the IMO. While calling for global governments to “act on ballast water chaos,” Poulsson pointed out the unknowns of the U.S. treatment standards. The U.S. is not an IMO member. “The impasse in the U.S. is a particular concern for operators that have installed ultraviolet systems,” Poulsson said, noting the U.S. Coast Guard’s decision to not accept systems of this type. “ICS will therefore be working with IMO member states to impress upon the United States the importance of coming to a pragmatic solution. Otherwise, once the IMO convention finally enters into force next year, the shipping industry will be faced with real chaos.” “The entry into force of the ballast water management convention will not change the U.S. Coast Guard approach to or enforcement of the U.S. ballast water regulations,” according to Rear Admiral Paul Thomas in an official blog on convention status. U.S. regulations require all ships discharging ballast water in U.S. waters to use a treatment system approved by the U.S. Coast Guard. Ships already required to comply with the regulations have either been granted extensions for fitting the systems or permitted to install a Coast Guard accepted Alternate Management System (AMS), although these systems will only be approved to operate for five years. For more information, please see the story on page 25. . Ballast water convention ratified, increases need for consistent guidelines One of seven new salties built for the Great Lakes/St. Lawrence Seaway system by Fednav Limited, Federal Caribou, is now moving cargo. The vessel and her six sister ships are being equipped with a filtration ballast water treatment system. At a ceremony onboard Federal Caribou, Fednav CEO Paul Pathy highlighted the significance of welcoming one of the system’s first ships equipped with ballast water treatment technology. The new lakers treat ballast water two times before entering the Great Lakes—they exchange ballast water in the middle of the Atlantic Ocean and treat the water through the JFE BallastAce processing system, which uses filtration and chlorine disinfectant. Fednav has implemented the technology before ratification of the IMO’s ballast water management convention. Federal Caribou is part of a series of 16 Handysize vessels designed for the Great Lakes. The ships represent an investment of more than C$400 million. They have box-shaped holds to facilitate handling general cargo. “This vessel confirms that the protection of the Great Lakes is a priority for Fednav and demonstrates the confidence we have in the region’s future,” Pathy said. “These ships will allow us to offer our customers an unparalleled service at a higher standard.” . New Fednav vessels introduce ballast water treatment technology Rod Jones Andrie 6 www.greatlakes-seawayreview.com D A T E L I N E the Great Lakes. She will be Canadian-flagged and crewed. To comply with emission control area requirements, the scrubber is being connected to the self-discharging bulker’s four-stroke 6L38B main engine. The system uses centrifugal separation to clean emissions before they are released from the stack. It is designed to be used in closed- or open-loop formats. It will be used as a closed-loop system while in the Great Lakes to meet requirements of the U.S. Vessel General Permit. . Ojibway salt mine expanding K+S Windsor Salt Ltd. is expanding the Ojibway salt mine in Windsor, Ontario. Over the next five years, the company will invest more than C$60 million to expand to the next mining level, about 400 feet below the current level. As part of the expansion, the company is upgrading its mining method and equipment. This investment will help boost production and extend the life of the mine to 2063. “This is one of the most significant developments in the mine’s history,” said Mike Soave, mine Manager. The expansion project is in the final stages of engineering and design. Infrastructure changes will start in 2017 with ramp production slated for 2018. The Ojibway salt mine largely produces rock salt used for commercial and consumer deicing to keep Canadian roads, streets and sidewalks clear during the winter season. In addition, the mine produces salt used for other applications, including water softening. The mine is capable of producing up to 3 million metric tons of salt annually. K+S Windsor Salt employs more than 225 people at the mine, which ships the majority of its Windsor-based product through the Great Lakes/St. Lawrence Seaway system. Francois Allard, Director Marine Distribution for K+S Windsor Salt Ltd., said: “Not only is the Seaway transportation system the most cost-effective way to reach our markets, it also minimizes our impact on the environment. Thunder Bay’s transit from the Ojibway mine to Bowmanville takes almost 1,000 truckloads off Ontario highways.” . Grant helps Port of Milwaukee improve infrastructure The Port of Milwaukee has been awarded a grant from the Wisconsin Department of Transportation to rehabilitate and reconstruct 15 at-grade road crossings at the port. The $1.76 million grant, part of the Freight Railroad Preservation Program, is helping fund the $2.20 million project, with the City of Milwaukee providing a $440,880 match. “When completed, this project will strengthen the connection between the Seaway and destinations beyond the western Great Lakes,” said Port Director Paul Vornholt. . NovaAlgoma outfitting cement carrier with scrubber system When NACC Quebec begins delivering cement in the Great Lakes/St. Lawrence Seaway system in 2017, she will represent a new breed of self-unloader while also being equipped with an Alfa Laval PureSOx emission scrubber system. The ship is part of NovaAlgoma Cement Carriers (NACC), an enterprise formed in January as a joint venture of Algoma Central Corporation and Nova Marine Holding. The fleet of cement carriers supports infrastructure projects worldwide. The self-discharging dry bulk carrier uses pneumatic and mechanical loading operations and is contracted to provide service for McInnis Cement at Port-Daniel–Gascons. McInnis is constructing a new plant and deepwater marine terminal to serve eastern Canada and New England. Through NACC, 11 vessels have been contracted. Six are currently sailing and the rest are being built or converted at shipyards in Turkey and China. The NACC Quebec will be used in SHIP ASSISTS • TOWING CREW BOAT SERVICES • ICE BREAKING SPECIAL PROJECTS ASPHALT & FUEL OIL TRANSPORTATION VESSEL & FLEET MANAGEMENT PROJECT MANAGEMENT 561 E. Western Ave. Muskegon, MI 49442 TUGS • BARGES • JACK-UP BARGES • CREW BOAT • CRANES Call Stan Andrie at (231) 332-9227 or Mike Caliendo at (231) 332-9243 www.andrietg.com Duluth Seaway Port Authority REGIONAL CALENDAR GREAT LAKES/SEAWAY REVIEW July-September, 2016 7 REGIONAL CALENDAR D A T E L I N E Cliffs secures long-term power for Tilden Mining Tilden Mining Company has entered into a 20-year energy agreement with WEC Energy Group to provide Tilden mine with long-term, reliable electrical power in Michigan. The agreement will also benefit residents living in the state’s Upper Peninsula. “With a stable, long-term source of power in place, Tilden will also continue to be the most operationally efficient producer of pellets for the domestic steel industry,” said Lourenco Goncalves, Cliffs’ Natural Resources Chairman, President and CEO. Under the agreement, WEC Energy Group, through the proposed Upper Michigan Energy Resources Corporation, plans to construct, own and operate 170 megawatts of new natural gas generating capacity across two sites in the Upper Peninsula. Pending regulatory approvals, the proposed facilities will begin operating in 2019. . Great Lakes nominated as World Cruise Destination of the Year Seatrade Global, an international cruise industry trade organization, named the Great Lakes region as one of three finalists for its 2016 Destination of the Year. The Baltic Cruise region and Singapore Tourist Board also were named. The winning region will be announced at a gala presentation in the Canary Islands, according to Stephen Burnett, Executive Director of the bi-national Great Lakes Cruising Coalition. Previous winners and nominees include Liverpool, England; the Copenhagen Cruise Network; Cruise Scotland; Malta; Dubai; and the Black Sea Cruise Ports. Each of these destinations is highly regarded by the Seatrade adjudication panel and being named among the finalists is an honor for the Great Lakes cruise industry. The Seatrade Global judging panel is composed of prominent cruise industry management executives. . 25 Quebec Marine Day 2016 Quebec National Assembly Quebec City, Quebec www.st-laurent.org NOVEMBER 1-5 SNAME Maritime Convention 2016 Hyatt Regency Bellevue Bellevue, Washington www.sname.org/smc/home 15-17 Green Ship Technology North America Conference The Watergate Hotel, Washington, D.C. https://maritime.knect365.com/green-shiptech- na 16-17 12th Annual Hwy H2O Conference Toronto Airport Hotel & Suites Toronto, Ontario www.hwyh2o-conferences.com OCTOBER 5-6 SNAME Great Lakes/Great Rivers Fall Section Meeting Stone Harbor Resort and Conference Center Sturgeon Bay, Wisconsin www.sname.org/greatlakesgreatrivers section/ 11-13 Natural Gas for High Horsepower Summit McCormick Place Chicago, Illinois www.hhpsummit.com 23-26 American Association of Port Authorities Annual Convention Sheraton New Orleans Hotel New Orleans, Louisiana www.aapa-ports.org It’s common to see a laker in the Duluth-Superior Harbor with its crew opening hatch covers, getting ready to discharge tens of thousands of tons of cargo the minute she docks. Once empty, those same cargo holds can be loaded with iron ore or coal for a return trip to the Lower Lakes. The faster crews can turn a boat (empty and reload the holds) the more deliveries it can make in a shipping season. So, remember our mariners—the men and women who keep cargo moving on the Great Lakes. They are the toast of this town. Down the hatch! 218.727.8525 | duluthport.com Down the Hatch! Canada Steamship Lines Clean. Green. Safe. Smart. The next generation of CSL self-unloaders and bulkers are setting new standards. cslships.com MICHAEL FENN Former Ontario Deputy Minister President Fenn Advisory Services Inc. American and Canadian Great Lakes/ St. Lawrence Seaway system ports may be divided by an invisible line in the middle of the water, but they share the challenges facing lake-based shipping. As global and regional competition accelerates, port authorities understand the need to innovate in their business models, technology and financing. As with airports, most ports know their future lies beyond simply attracting vessels and government grants. It also involves leveraging or expanding real estate holdings, building new infrastructure, adopting new technologies and broadening business offerings. This wider scope includes attracting private-equity investments, creating intermodal hubs and customs pre-clearance facilities, and promoting port-related uses. But these expansive business strategies are also expensive strategies—and the traditional funding sources may not be reliable. Governments have been reluctant to incur public debt or budgetary deficits to subsidize port operations and port enhancements. They have also been slow to establish a level playing field in freight competition, such as by pruning legal restrictions on port mandates, reducing the levies they draw from port operations or giving the same support to freshwater ports that they do to tidewater ports. Privatization. Some see port privatization— turning major ports over to the private sector to own and operate—as the way forward. In some situations, particularly for smaller ports, this may well be the answer. For example, in Goderich, Ontario, the municipality purchased its commercial port from the federal government by partnering with major local industry in an award- I N F R A S T R U C T U R E GREAT LAKES/SEAWAY REVIEW July-September, 2016 9 Widening horizons Using the private sector to expand port infrastructure investment and business sustainability Goderich port has been purchased by the municipality with the help of local industry. A Quick Look » • Privatization • P3 options • Innovative financing in the U.S. • The Canadian debate • Finding balance Van Enkevort Tug & Barge winning public-private partnership. For Goderich, privatization increased profitability and tonnage. The public-private partnership yielded major infrastructure investments, including revitalizing the port’s harbor and wharf. The agreement ensured continued public access to the water and accountability that the port would be economically self-sustaining. While the industry partner is more recently reluctant to move beyond user fees for additional capital investments, the Association of Municipalities of Ontario considers the partnership an example of how far private-sector partnerships and non-traditional financing can go to support the public good. In other cases, such as the Port of Churchill in Manitoba, privatization has resulted in little new investment and a decline in shipping activity—despite an increasingly accessible tidewater port serving mid-continent producers. Before closing, the deepwater port provided an Arctic link to the Atlantic Ocean. The port is best known for exporting Canadian wheat. While the owner, Denver-based OmniTrax, has not commented on the closure, city officials have stated that employees have been laid off. The success of privatization clearly depends on the terms negotiated. P3 options. There are many ways to marshal the financial and commercial resources, innovation and expertise of the private sector, short of outright privatization. Public-private partnerships (P3s) offer a rich array of options, tailored to the needs of individual ports and differing political jurisdictions. These options can be and should be better understood. Equally, we need the research, policies and legal/tax frameworks in place to allow port authorities, port users and governments at all levels to evaluate all of their options and to exploit them to advantage. The 2015 study entitled “Vital Capital” (https://councilgreatlakesregion.org/wpcontent/ uploads/pdfs/114_VitalCapital.pdf) provides a clear and easily understood summary of the evidence-supported options. It describes the tools to advance successful public-private partnerships and other innovative financing and funding structures for building and operating infrastructure, and for related property management and acquisition, throughout the Great Lakes. In addition to the menu of P3 options available for specific infrastructure projects, new overall approaches to capital investment and asset management have emerged. In some jurisdictions, such as the UK and in Canadian Provinces Ontario, British Columbia and Québec, central government procurement authorities have been established to promote P3s in infrastructure. They focus on predictable, standardized processes and commercial due diligence procedures, coupled with private financing and funding. In Australia and Britain, governments adopted policies aimed at reducing recourse to public debt and tax-supported expendi- I N F R A S T R U C T U R E 10 www.greatlakes-seawayreview.com Some see port privatization—turning major ports over to the private sector to own and operate—as the way forward. In some situations, particularly for smaller ports, this may well be the answer. SEEKING MARINE PROFESSIONALS MATES, ENGINEERS AND AB’s / DECKHANDS Van Enkevort Tug & Barge, Inc. 909 N. Lincoln Rd. • Escanaba, MI 49829 (906) 786-1717 Days • Fax: (906) 786-1700 vtbarge@vtbarge.com GREAT LAKES | BULK SELF-UNLOADING IRON ORE | STONE | COAL Any Type Dry Cargo Bulk Commodity American Great Lakes Ports Association tures by financing new or refurbished infrastructure from the proceeds of infrastructure concessions and from selling an ownership stake, or through long-term lease, of all or part of existing or legacy infrastructure. It is a policy known as “asset recycling.” (http://mowatcentre.ca/recyclingontarios- assets/) Do these fiscal policies attract new port investments? Globally, saltwater ports have benefitted, including multi-billion dollar investments by Canadian public sector pension funds. Interestingly, freshwater ports in North America have not seen this surge of new investment from the private sector and pension funds. Innovative financing in the U.S. For generations, U.S. municipalities and local government entities have used tax-exempt bonds to fund crucial community infrastructure of all kinds. In the late 20th Century, when local governments wanted to involve the private sector more extensively in the provision of infrastructure on their behalf, Congress redesigned tax legislation to accommodate them. Tax-exempt private activity bonds (PABs) are now used to extend the benefits of taxexempt municipal bonds to those in the private sector undertaking projects on behalf I N F R A S T R U C T U R E GREAT LAKES/SEAWAY REVIEW July-September, 2016 11 The Welland Canal, though operated by the non-profit St. Lawrence Seaway Management Corporation, remains federally owned. Advocacy. promoting public policies that foster maritime commerce on the Great Lakes-Seaway system for membership information visit: www.greatlakesports.org Ports of Indiana at Lake Michigan and Ohio 1,000 Acr of Multimodal Industrial Sites ts res River Por are Available of public-sector entities, although mainly road, rail and municipal infrastructure. When in 1998, Congress extended the scope of TEA-21 transportation legislation to embrace transportation ‘choke points’ and intermodal facilities, it also opened the door to using the infrastructure funding model under which toll highways and bridges were being financed, i.e., with private-sector investors and operators, dedicated revenue streams and infrastructure banks. Now that Congress has reauthorized transportation finance legislation, all the players in the transportation arena will be turning their attention to creative means to fund and finance infrastructure priorities. With their wealth of physical assets and a strong economic and environmental business case, can Great Lakes/Seaway port authorities craft public-private partnerships under that legislation to achieve 21st Century port business development strategies? The Canadian debate. In Canada, major public ports that had been ‘commercialized’ between 1992 and 2003 have begun to hear that they might have a role in meeting the Trudeau government’s ambitious infrastructure investment plans, just as the previous government’s Canada Transportation Act (CTA) Review Panel had recommended. (http://www.tc.gc.ca/eng/ctare view2014/CTAR_Vol1_EN.pdf) “Ottawa looking at whether Canada’s major airports should be sold off to private investors to raise funds for infrastructure spending,” announced a July 3, 2016 headline in the Toronto Star, adding: “The Liberals were elected last fall on a promise to deliver big-ticket infrastructure spending. Their March budget confirmed that they are considering public pension plans and other ‘innovative’ funding sources, such as asset recycling, to help fund that program. Asset recycling is the process of giving the private sector a stake in existing infrastructure assets, such as ports or highways, to raise the cash needed for other investments.” The CTA review, led by former Conservative Minister David Emerson, said a ‘commercial mandate’ was insufficient, particularly in relation to its ability to leverage the value of business and realty assets. Although the Emerson Review used the term ‘privatization,’ one might argue that the essence of the recommendations was to expand the scope of private-sector involvement in ports, through public-private partnerships. “Canadian policy has favoured commercialization over privatization, which has resulted in a lack of significant infrastructure available for private sector investment. Governments in the U.S., United Kingdom and Australia are using a practice of ‘asset recycling’ to dispose of outdated or legacy assets in order to generate the capital needed to invest in new public projects, or refurbish existing infrastructure. Canada could do the same … . This would require that the proceeds from disposition of Crown-held assets be redeployed for new critical transportation initiatives that improve the performance of the network, i.e. as identified on the transportation projects pipeline,” according to the review. Emerson argued for government to allow share-capital investment, measures to promote the environmental advantages of short-sea shipping, creating a ‘projects pipeline’ for investors, rule changes to encourage investors such as pension funds and a stable, predictable regulatory regime to build the confidence of investors. Some have already taken up the challenge, with port strategies that aim to embrace new technologies or protect and expand land holdings, as well as to open ports to private investment (e.g., Government of Québec). (http://business.financialpost. com/news/economy/quebec-launchesprojected- 9-billion-maritime-strategy-tomake- montreal-a-top-north-american-shipping- hub) Finding balance. As an alternative to fullblown privatization, the key to public-private partnerships and asset recycling in public port facilities, as elsewhere in public infrastructure, is to hit the right balance of risk allocation. The financing and governance structures must respect the long-term interests of the port and its host community, but also adopt the commercial discipline, innovation and adaptability of the private sector. This risk allocation must protect the public interest, including community interests and progressive, industry-focused regulation; but it also needs to make ports commercially attractive to shippers and investors and to insulate port operations and port development from the kind of episodic political involvement and economic and fiscal impediments that deter private investment, limit horizons and cause ports to underperform in a competitive world. . I N F R A S T R U C T U R E GREAT LAKES/SEAWAY REVIEW July-September, 2016 13 Like the Welland, the two U.S. locks in the system are federally owned. All maintenance is funded through appropriations. Public-private partnerships (P3s) offer a rich array of options, tailored to the needs of individual ports and differing political jurisdictions. The Great Lakes Group THE GRE GREAT LAKES SHIP PYARD I N T E R V I E W GREAT LAKES/SEAWAY REVIEW July-September, 2016 15 Great Lakes/Seaway Review: Having a long history of public service, what led you to move from private sector consulting to the more public position of Executive Director of the port? Harris: The port is quasi governmental. I was approached and asked about taking the job. One thing that seemed like a good match is my experience working at both city and state levels and working with different types of administrations. My board is made up of five mayoral appointees and four gubernatorial appointees. In the process, I was told my work in Governor Blagojevich’s office was attractive. I was his last Chief of Staff after he was arrested. They told me: ‘You do well with crisis management.’ I know to remain calm, to help others remain calm and to come up with a plan on how to move forward. Great Lakes/Seaway Review: Like with Governor Blagojevich, you had no way of knowing the crisis that was coming. How do you operate in your regular work environment to prepare for any potential crises? Harris: I need order, organization. If things are in order, I can deal with the bigger issues. There could have been others chosen to be Chief of Staff in the governor’s office when everything went down. But some people were literally running one way and then the other. They didn’t know what to do. I just told staff members to get everyone in the conference room. I came in there and told them all to calm down. I had to calmly ask one person to stop crying—literally. I explained we would just need to move forward. I teach a course at the University of Chicago, a public policy course. I talk to my students about how to embark on a large endeavor. It’s the same principle you use to eat a whale—one bite at a time. You just have to do it. I tend to approach problems the same way. You have to clearly identify the problem, identify the players and then come up with the policy for the solution. When I was asked about the port, I had seen the financial report for the port and was aware of some of the issues. I decided to take the job because I’m confident I can come up with some solutions. Now, since being here, I’ve discovered more that needs to be addressed, but there Deep determination New Port of Chicago executive combines past strengths with renewed vision Clayton Harris III is the new Executive Director for the Illinois International Port District at the Port of Chicago. In his new role, Harris is determined to expand economic activity to impact the port, City of Chicago and State of Illinois. Before joining the port in May, Harris served as Director of Government Affairs for the Midwest U.S. for CH2M, an engineering design/build company consulting with governments, cities and private entities on infrastructure and natural resources projects. After earning his Bachelor of Science in Aerospace Technology from Middle Tennessee State University and while working at the Pentagon in the Ballistic Missile Defense Organization, Harris decided to attend law school full-time while continuing to work full-time. During his education, he transitioned into an internship with the Federal Aviation Administration and then to the U.S. Department of Agriculture as an Equal Employment Opportunity Commission Specialist. When he graduated from Howard University School of Law, he moved to Chicago to become a Cook County Assistant States’ Attorney. Harris was recruited by Mayor Richard M. Daley to further his legislative agenda in Springfield, Illinois. He focused on crime, environment and labor. Having experience at the capitol, the State of Illinois hired Harris as Chief of Staff for the Illinois Department of Transportation in 2006, for which he led the $1 billion reconstruction of the Dan Ryan Expressway. The Governor’s office placed Harris over all state infrastructure as the Deputy Chief of Staff, where he oversaw and managed every capital agency in the state. While working in this capacity, he stepped up during the state’s most dire time—when Governor Rod Blagojevich and his Chief of Staff were charged with corruption and removed from office—and ultimately assumed the role and responsibilities of Chief of Staff for the State of Illinois. He led the staff until the next governor transitioned into office three months later. In addition to his various professional positions, Harris lectures at The University of Chicago, teaching process and policy in state and local government; serves his community through the national Omega Psi Phi fraternity, the same fraternity of which his father and grandfather are distinguished members; and serves as a board member with Childserv. He resides on the South Side of Chicago with his wife, Trena, and their two sons. Clayton Harris III Iroquois Landing is “open for business” at the Port of Chicago. SOURCE: CHRISTINE DOUGLAS Ashton Marine 16 www.greatlakes-seawayreview.com point, what is your assessment of the port? Harris: The Port of Chicago moves more general cargo than any other port on the Great Lakes, with annual tonnage of waterborne commerce of over 19 million tons, maintaining Chicago’s place among the top 36 ports in the nation. We are fifth if you look at annual state tonnage totals: 1. Louisiana, 544.0 million tons 2. Texas, 506.6 million tons 3. California, 230.2 million tons 4. Washington, 119.2 million tons 5. Illinois, the only inland port, 106.5 million tons The port does all of this with only four employees. That’s impressive to me and deserves my respect. Now, it’s incumbent on me to keep it going. Great Lakes/Seaway Review: Because of past efforts to privatize the port and comments from board members on a continued interest to do so, what will happen to your job if the port is privatized? Harris: That was one of my first questions. They said they would always need an executive director, someone to manage the group which comes in to manage the property. The devil will be in the details. It would matter what the master lease agreement would look like. I’ve been guaranteed that if it occurs, I’ll be okay. I don’t know if they’re looking at it the same way I am, but I’m behaving as if they are not going to get a private lease. Great Lakes/Seaway Review: If you are able to maximize the potential of the port, do you think privatization will remain on the table? Harris: I’m extremely confident, not arrogant, that I can do what they need me to do if they allow me to do it. Great Lakes/Seaway Review: How do you feel your background with transportation departments, public service and the Federal Aviation Administration will help in your new role at the port? Harris: When I was in law school, I interned at the Federal Aviation Administration. At the time, we were dealing with space law and because it was brand new, they were mirroring a lot of maritime law. I’ve been the beneficiary, as has my wife, of a lot of providence and opportunities. One thing I’ve told the board is that, if through the course of my job, you need me to go talk to the Alderman or the Congresswoman or the Commissioner or go to community events, I’m all over it. I’m that guy. But I stressed that my job is not to go see the Alderman, the Congresswoman, the Commissioner or go to community events. I can see how my experience with governare also fewer issues in some areas than I expected. In my opinion, for the past few years, the former Executive Director was asked to swim in Lake Michigan with his hands tied behind his back. So now, for me, one of the attractive aspects of the job is the potential of the port. It is amazing. I’m amazed at the thought of what could happen and what should happen. I see so much potential I’ve asked why this job isn’t more coveted. I don’t think I’m selling myself short. I think they have the right person for the job, but why aren’t people knocking down the door for this job? They told me the port has been under the radar and it has issues. It needs to be turned around. I get it. Three years from now, I don’t think I’ll have the ship turned around fully, but you should be able to see it turning. My biggest concern, three years from now, is keeping my job because more people are going to want it. They’re going to see what I see now—what’s here and what it can be. Great Lakes/Seaway Review: At this I N T E R V I E W SHIP ASSISTS • TOWING ICE BREAKING • SALVAGE PROJECT CARGO MOVES 329 West Circle Drive, North Muskegon, MI 49445 For competitive rates call Phil Andrie at (231) 720-0868 or email phil@ashtontugs.com www.ashtontugs.com Donjon Shipbuilding GREAT LAKES/SEAWAY REVIEW July-September, 2016 17 ment affairs will be important, but it’s only part of my job. I prefer to go knock on someone’s door rather than talk on the phone. It’s right to meet people on their level. When at CH2M, I would drive down to a legislator’s district to meet them face-toface and build a foundation on which to work with them. I understand that people need to see me. The players are important and everyone needs and deserves to know they’ve actually been heard. Great Lakes/Seaway Review: Do you see your role reaching beyond your home port to represent the region’s commercial shipping industry? Harris: Yes. I have offered to go to Washington, D.C. and to Springfield to represent the Port of Chicago to the Illinois delegation. I know a lot of those guys from previous lives. I will go out there and talk to the right people because the goal with relationship building is to get them educated and get them excited about the port. Ben Brockschmidt from the Illinois Chamber of Commerce, who I know from a different life, asked me what he could do to help me out with this asset. I told him we just needed to get the word out. The last speech I gave and the speeches I will be giving for the next year will have the same theme: ‘Hi, I’m Clayton Harris III. I’m the new Executive Director at the Illinois International Port District at the Port of Chicago and we’re open for business.’ While we’ve never been closed, people need to know we’re working hard to make things happen. Saying the port is open for business matters. While nothing has changed, the perception is beginning to change about what can happen, what could happen and what should happen—and each of those are different things. Great Lakes/Seaway Review: What are your short-term and long-term plans for making the port more competitive? Harris: The port needs to be as competitive as possible, but after being there a short time, I realized we are No. 1 on the Great Lakes in terms of tonnage and people don’t even know it. Short term, my approach is saying the port is open for business. I also need to lease land so I’m bringing in more revenue. There are three types of ports: a landlord port, an operations port and a hybrid of the two. We need to become a more hybrid port so we increase operations and still handle leases, but that’s probably five years out. If we’re talking five years and under, I’m looking at marketing, leasing the land we have available, developing a clear definition of viability and executing a strategic plan I N T E R V I E W The Port of Chicago moves more general cargo than any other port on the Great Lakes, with annual tonnage of waterborne commerce of over 19 million tons, maintaining Chicago’s place among the top 36 ports in the nation. St. Lawrence Seaway Management Corp SLSMC I N T E R V I E W 18 www.greatlakes-seawayreview.com that includes conservation, recreation, environment and industry because those are the major interested parties of the port. I don’t think those interests are mutually exclusive. We can marry those interests and come up with a strategic plan I can publicly tout and then execute. For instance, I was talking with Tony [Ianello, former port Executive Director] about the potential for developing a marina. He went and pulled out plans previously considered. While I’m not saying we will be developing a marina, ideas like this are worth exploring to see if they’re more viable today than in the past. We need to smartly work through our agreements with different entities. I’m also responsible for reminding the board members that they have a fiduciary responsibility to the port, first and foremost. We have to maintain the viability of the port while sitting in the middle of Chicago. It is incumbent upon me to educate the board more on our options and what will benefit the port as we move forward together. Great Lakes/Seaway Review: There’s a growing interest in containerized cargo. Are you interested in returning container traffic to the port? Harris: Yes, I am interested. My issue is how to do so when we’re not getting the same type of ships on the Great Lakes, because of the weight and size, as the coasts are getting. The commodities moving on those container ships are more daily products, so getting them through the Great Lakes is not as cost-effective because you’re adding days onto the transportation. The barges, lakers and salties are not able to carry enough containers to make it as beneficial to come into the system. Every now and then, we get containers but it’s not what’s being transported costeffectively now. If we don’t do something like it, we won’t be successful. One of my favorite quotes is: “Fortune favors the bold.” At some point in time, you’ve just got to take the step. You’ve got to go for it. If it works, you succeed huge. But if you fail, you fail huge. When it comes to the port, if it makes sense to make an investment in an area, I can sell it to the board. We just need to be smart about how we do what we do. Great Lakes/Seaway Review: Having worked with state and federal departments of transportation, which tend to be highway focused, what do see as the future of the shipping industry? Harris: One of the benefits I have is DOT put me over highway, bridges, aviation— all of it. I got to see things from every point of view. One thing that’s going to refocus transportation on water is the environmental impact. The motor fuel tax, in all honesty, is causing our nation’s infrastructure funding problem. Our infrastructure is crumbling around us because the model with the motor fuel tax is not a sustainable model. As a country, we’ve become more efficient and the motor fuel tax revenue is decreasing. Because of that, there’s a renewed focus on how to take some of the congestion off the roads. It’s an important and probably long-overdue conversation Congress has taken on again because of those eureka moments of ‘what about the water?’ This conversation will work to my benefit. Chicago is aptly placed at the crossroads. All rail traffic comes to and through Chicago, for the most part. The reason Mayor Daly was so dead-set on keeping O’Hare at its current location was to keep everything coming to and through Chicago. At the port, I’m the one on the western end of eastern railroads and the eastern end of western railroads. A lot of them either terminate or don’t go much further than Chicago. With the renewed interest in mov DNV-GL I N T E R V I E W GREAT LAKES/SEAWAY REVIEW July-September, 2016 19 ing freight as efficiently as possible and still considering the environment and infrastructure, moving the freight off-road becomes an obvious answer. We have something unique. We have a back door, which is the Illinois River and the Mississippi River, and I can get freight disseminated from the Atlantic Ocean to the Gulf of Mexico and all the areas down and through the United States. Even if the Great Lakes were frozen over completely, we could still bring barges up the Mississippi River. Great Lakes/Seaway Review: With the port’s golf courses—Harborside International Golf Center—being privately managed, is this an area for potential change? Harris: There are six years left on the KemperSports contract. At this point in time, I think the board is collectively satisfied with what’s happening there. In moving forward, we will look at all our contracts and the potential ways in which we can generate more revenue. Great Lakes/Seaway Review: How would you categorize the port’s infrastructure and what do you think needs to be done next to modernize it? Harris: We need to invest in ourselves. For what we’re doing and for the operations of the port, we’re in good shape, but we could easily be better—easily. One medium- term goal is looking at making the Port of Chicago a zero or negative carbon-footprint port. We have a lot of land to add things like wind turbines and solar panels. When we start renewing contracts, we can add a green clause to encourage this type of thinking and investing back into the community. As we lease land and increase revenue, it’s important and incumbent to put revenue back into the port. It can all be part of a strategic plan. I have all types of tenants who are doing what they can do and as things need to be replaced, we can look at different ways of thinking than was used 60 years ago. Great Lakes/Seaway Review: Is there anything you would like to add? Harris: The Port of Chicago isn’t even a diamond in the rough. It’s a diamond that just needs to be polished. Yes, the port can do better than it has done, but the port is doing better than most people realize. In two years, I hope we can look back and see all the good that’s happened. I have intentionally associated my name with the port and I will do everything in my power to make this something my little boys will be proud to say ‘My dad’s the director there.’ That’s how I’ll know I’ve been successful. n There are three types of ports: a landlord port, an operations port and a hybrid of the two. We need to become a more hybrid port so we increase operations and still handle leases, but that’s probably five years out. The Great Lakes Seaway Partnership As disposal options dwindle for Great Lakes dredged material, stakeholders focus on transforming what has long been considered a waste product into a valuable commodity. The paradigm shift requires rethinking, inventing and funding sustainable solutions for as much as 5 million cubic yards of material removed from the system’s rivers and harbors annually. Nowhere is the issue more pressing than for Lake Erie’s ports of Cleveland and Toledo, Ohio, which account for about one-third of all sediment dredged from the Great Lakes each year. In 2020, a new Ohio law takes effect banning the longtime practice of open-lake placement of dredged material, the method preferred by the U.S. Army Corps of Engineers. A Toledo-based project. To keep the Port of Toledo’s 25-mile shipping lane open, 850,000 -1 million cubic yards of silt and clay should be removed yearly from federal and non-federal channels. It’s the greatest sediment volume dredged from any single Great Lakes port. Historically, most of the dredged material was deposited according to open-lake methods and the remainder placed in confined disposal facilities. Costs typically run $5 million annually, according to Joe Cappel, Vice President of Business Development for Toledo- Lucas County Port Authority. Toledo’s port and its customers could face a disabling future without cost-effective alternatives to open-lake placement. “What’s the price point at which it no longer makes sense for the Corps to dredge?” Cappel asked. “Without beneficial reuse we may not even have a port in Toledo.” A new concept for dredged material management is imperative. The port authority received a $2.5 million grant from the Ohio Healthy Lake Erie Funds to establish the Great Lakes Dredged Material Center of Innovation agriculture demonstration project. The pilot project returns dredged sediment to farm fields. “We need high-volume, low-cost projects,” Cappel said. “We think pumping (dredged material) to the agriculture field will fit the bill.” The project involves four four-acre cells built on a 16-acre site leased from the City of Toledo. Cells are completed and ready to accept as much as 60,000 cubic yards of material in 2016. The sediment will be moved by barge from the dredging site to the cells. Work at the cells involves dewatering sediment and use of interim crops and soil amendments. Edge-of-field treatment research focuses on the issue of nutrient runoff into the freshwater, a problem previously associated with Lake Erie’s history of algae blooms. “We hope to bring farmers, entrepreneurs and students in to see how crops grow in dredged material and possibly implement it on a large scale east of here,” Cappel said. “There are a lot of low-lying fields prone to flooding. It would improve drainage and let farmers plant earlier in the season.” The pilot project also establishes a blended soil production program using leaf compost sourced from the city. The resulting engineered soil product targets both public and commercial markets. In addition, collaborative efforts with the City of Toledo are exploring the use of dredged material as a wetlands filtering material at Toledo’s Cullen Park located near the Maumee River and Lake Erie, and a second site at nearby Oregon, Ohio. Despite promising options, logistic support for beneficial sediment use presents a significant hurdle in the sediment shift from waste to a marketable commodity, according to Pam Allen, Ohio Environmental Protection Agency Lake Erie Dredged Materials and Nutrients Manager. “Dirt in Ohio is very cheap,” she said. “We might be able to use it in other areas of the state, but moving it to the market is costly.” D R E D G I N G GREAT LAKES/SEAWAY REVIEW July-September, 2016 21 RESEARCHING OPPORTUNITIES Ohio explores new solutions for dredged sediment A Quick Look » • A Toledo-based project • Looking at Cleveland • Non-federal sponsor • Dredging on hold This drawing depicts the various areas of the Great Lakes Dredged Material Center for Innovation in Toledo, Ohio. SOURCE: TOLEDO-LUCAS COUNTY PORT AUTHORITY West Michigan Port Operators Successful beneficial reuse also needs public buy-in, Allen said—which requires an education outreach. When people see and touch clean sediment prepared for beneficial reuse, they open to the possibilities. While Toledo’s dredged material is silt and clay and is suitable for agriculture land fill, it presents a dewatering challenge. Cleveland’s sediment is a sandy, gravel mix, deemed suitable for brownfield restoration, landfill cover, highway construction, creation of aquatic habitat areas and beach nourishment. The differing sediment character from the waterways serving the two ports requires custom approaches to reuse and management. “It isn’t going to be solved with one idea or solution,” Allen said. “We need to be open to see new ideas and opportunities.” Looking at Cleveland. Cleveland maintains shipping lanes accommodating 800 to 900 vessel trips yearly. About 225,000 cubic yards of sediment is dredged from six miles of breakwater, 5.9 miles of the Cuyahoga River and one mile of what’s known as the Old River Channel. Cleveland-Cuyahoga County Port Authority’s innovative tactics stirred global interest at the July International Symposium for Sediment Management in Montreal, according to Jim White, Cleveland Port Director of Sustainable infrastructure Programs. “We are not wasting or mindlessly disposing of a potentially valuable commodity,” White said. In addition, Cleveland’s projects save the port from constructing a new confined disposal facility with a $150-300 million price tag. The port authority is a founding member of the Cleveland Harbor Dredge Task Force. Members meet regularly with stakeholders to hatch out sustainable beneficial use options. An effort matching the needs of the port authority and Cuyahoga Land Bank creates a community win-win. The collaboration directs dredged sediment for use as basement fill for demolished derelict houses, creating a steady beneficial reuse market. D R E D G I N G 22 www.greatlakes-seawayreview.com Drainage is part of Toledo’s new project, which will help local leaders determine the validity of using dredged materials for agricultural and blended soil products. The largest port on the coast of West Michigan Providing your Lake Michigan bulk storage needs 75 years of cargo and material handling experience (231) 722-6691 westmichiganportoperators.org • e-mail inquiries to info@wmpo.com Internationally Accessible Marine Freight Corridors FERRYSBURG | HOLLAND | MUSKEGON Detroit/Wayne County Port Authority “Basements require 200 cubic yards of fill,” White said. “They have 10,000 houses to be demolished that will require 2 million cubic yards over the next decade.” But Cleveland’s most innovative initiative tackles the sediment issue at the source. The Ohio EPA provided $1.2 million from the Ohio Healthy Lake Fund for capital costs of an underwater bed loader and multi-year pilot evaluation. Cleveland’s bed load interceptor deployed in 2015 reduces dredging requirements while harvesting sellable material. The unit sits on the Cuyahoga River bottom. Powered by river flow, it captures sediment before it settles in the shipping channel. Sediment flows up a ramp into a hopper and is then pumped through a pipe to a conveyor located along the shore. Contaminated sediment is automatically sifted from clean material. Usable sediment is stacked and ready for use and the water is recycled. The cost of harvesting sediment with the bed loader is $1 per cubic yard versus $17.50 per cubic yard to dredge, according to White. “Our bed load collector is the first and only such installation in the Great Lakes,” he said. “We think the technology can be used elsewhere to great effect to reduce dredging requirements and also to provide very cost effective, high quality material.” The bed loader program functions through a public-private partnership agreement between the Port of Cleveland and Kurtz Bros. Inc., a long-time producer of engineered soil products. Kurtz pr

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