Vol.45 No.3 JAN‑MAR 2017

V O L U M E 4 5 J A N U A R Y – M A R C H 2 0 1 7 N U M B E R 3 Second study supports new Soo lock . Plan 2014 finalized . Tabulating the 2016 season . Ag exports rise 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 PARTNERSHIP Interlake Steamship believes that partnership isn’t just an idea. Partnership has a face. It’s the face of the individuals who touch its customers’ business on a daily basis. At Interlake, each team member – from management to operations personnel to vessel crew – understands that individual effort can make a difference in helping customers meet their goals. Our people set Interlake apart. Advanced training, valuable experience, and close cooperation help Interlake continue its century-long customer-first philosophy. Great Lakes transportation is our business, our only business. Let us deliver for you. Great Lakes Fleet Your business and today’s supply chains expect more than haphazard dependability, cryptic scheduling, and a sea of broken promises. Avoid the runaround. Our accomplished staff and premier vessels are at the ready to deliver, backed by more than 2 billion tons worth of cargo experience. Bulk may be our business, but unsurpassed service is what we sell. Leave the art of logistics to the industry leader – Great Lakes Fleet. The Art of Logistics. cn.ca/greatlakesfleet Marine Tech Marine Pollution Control 2 www.greatlakes-seawayreview.com THE INTERNATIONAL MARITIME MAGAZINE OF THE GREAT LAKES/ST. LAWRENCE SEAWAY SYSTEM VOLUME 45 JANUARY-MARCH 2017 NUMBER 3 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; 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; 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. © 2017 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: Looking down the boom of Edwin H. Gott. Great Laker Cover: Kevin Diedrich working aboard the SS Badger. Inland. S Sea. Solut tions. M w MPC IS OSRO #003 www.MarinePollutionC +1 (313) 849-2333 – 24 Marine Pollution Contr Control.com 4/hour rol .. .. 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 January-March, 2017 3 The international maritime magazine of the Great Lakes/St. Lawrence Seaway system Plan 2014 addresses safe and efficient navigation amid binational water level regulations. Page 17. U.S. and Canadian Coast Guards experience a lighter spring breakout. Page 64. A R T I C L E S Port History WATCH OUT WORLD—HERE COMES INDIANA . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61 Indiana becomes a working partner along the inland waterway. Icebreaking AN EASIER BREAKOUT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .64 Spring 2017 proves to be an easier clearing for commercial traffic. Meet the Fleet ONE FOR THE BOOKS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67 CSL Laurentien goes long and deep for the record. Meet the Crew THE ROMANCE OF SAILING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70 ‘There’s no place else I would rather be.’ Locks MOUNTING EVIDENCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Second study shows $1.7 billion economic benefit from modernizing Soo Locks. Executive Roundtable PROVIDING LEADERSHIP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Maritime executives weigh in on key issues impacting business development. Lake Levels THE MOST BASIC NEED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 How Plan 2014 addresses safe and efficient navigation. The 2016 Season CHALLENGES AND CHANGE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 Political, cargo shifts impact regional shipping industry. THE DETAILS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24 See how each port contributes to the Great Lakes/Seaway system. Shipbuilding LAUNCHING SHIPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36 Algoma Central team makes fast tracks through rebuild program. Interview A NEW DAY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39 Chamber of Marine Commerce President helps kick off new era. Logistics TARGETING TRENDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43 Logistics provider reports on overall growth and expectations. Commodities AG EXPORTS RISE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49 New capacity brings growth in moving food products. Towing & Barging POWERING UP FOR 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55 Tug operators add horsepower to meet industry’s needs. GREAT LAKER J A N U A RY- M A R C H 2 0 1 7 Great Lakes/St. Lawrence Seaway D E P A R T M E N T S Dateline: Great Lakes/St. Lawrence Seaway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Great Lakes Ports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Guest Editorial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 On The Radar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 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 Between issues of Great Lakes/Seaway Review, stay current with our free weekly news service, Digital Dateline, at www.greatlakes-seawayreview.com/digdateline/ Also available as an interactive digital magazine and a mobile app Second study shows $1.7 billion economic benefit from modernizing Soo Locks. Page 9 . Fednav 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 GREAT LAKES/SEAWAY REVIEW January-March, 2017 5 Elaine Chao appointed U.S. Transportation Secretary Elaine Chao was confirmed January 31 as the Secretary of Transportation. She is the former Labor Secretary and has ties to the maritime industry. Chao, 63, was a transportation banker, worked on transportation and trade issues at the White House Office of Policy Development and has served as Deputy Maritime Administrator, Chairman of the Federal Maritime Commission and Deputy Secretary of the U.S. Department of Transportation. In her confirmation hearing before the Senate Committee on Commerce, Science, & Transportation, Chao expressed support for the Jones Act. Ties to the shipping industry include her father, James Chao, who joined the merchant marine after majoring in navigation in college in China and rose to the rank of captain. He emigrated to the U.S. in 1958 and, after settling in New York City, founded Foremost Maritime Corp. With infrastructure modernization named as one of President Trump’s priorities, Chao’s experience in the executive branch and as a private banker are expected to be assets. She earned her MBA from the Harvard Business School and an economics degree from Mount Holyoke College. Chao is married to Senate Majority Leader Mitch McConnell (R-KY). . Steel company expands at Burns Harbor Ratner Steel Supply Co. is doubling in size at the Port of Indiana- Burns Harbor. The company is investing $8 million to expand its facility by 100,000 square feet to load and unload steel shipments. The Minnesota-based company produces carbon sheet steel and plates for service centers, in addition to manufacturing agricultural and transportation products. “Watching the Ratner Steel expansion take shape is especially encouraging because it further demonstrates that by using the port’s strategic location and multimodal capabilities, a company can gain a competitive advantage and grow its business,” said Port Director Rick Heimann. The expansion is being completed for the 2017 season. . Great Lakes Seaway Partnership’s Laura Blades passes After an extended battle with lung cancer, Laura Margaret Blades died January 11. She was a friend of the Great Lakes/St. Lawrence Seaway system, having spent countless hours educating elected officials, media representatives and the public on regional commercial shipping. Blades began her career in the system as the Washington, D.C.- based staffer for Marine Delivers. Later, she went on to become Director of Public Affairs for The Great Lakes Seaway Partnership, with which she continued until December 2016, when her retirement was announced. Prior to joining the industry, Blades worked with presidential personnel in the Reagan/Bush White House and in communications at the Office of Special Counsel for Marriott Corporation. While her peers in the shipping industry appreciated Blades’ humor and professionalism, she was also a wife and mother. In her obituary, she was referred to as “a force of love and light, stubborn in righteousness, willing to be a friend to all.” She is survived by her husband, her son and daughter- in-law and many other friends and family. . FMT expands service in Cleveland A one-year agreement between the Cleveland-Cuyahoga County Port Authority Board and Federal Marine Terminals, Inc. (FMT) expands service to the Cleveland- Europe Express. Prior, FMT served as the terminal operator for Warehouses A, 24, 26 and the Maintenance Shed at the port. The new deal includes Dock 22 and Warehouse 22 and adds stevedoring services for the Cleveland-Europe Express, the only scheduled container vessel service between the Great Lakes, Europe and beyond. “FMT has proven itself a strong service provider on the Port of Cleveland’s docks,” said Dave Gutheil, port authority Vice President, Maritime & Logistics. “This new agreement will help streamline and improve efficiencies at our facilities.” . DATELINE Upgraded locks open for business Enhanced locks are open for the 2017 season. Over the winter, the Saint Lawrence Seaway Development Corporation installed Hands-Free Mooring (HFM) technology at the U.S. Eisenhower Lock. Additional infrastructure work and installation is required before the system becomes operational. HFM equipment for the U.S. Snell Lock has been purchased and installation/implementation is dependent upon future federal appropriation. At the Welland Canal, much of C$90 million has been invested into upgrades and repairs during the off-season. The work involved reconstruction of a tie-up wall at Upper Lock 1, rehabilitation of gates, lock and weir valves, a swing bridge, approach walls and fendering, deployment of Hands-Free Mooring, upgrades in lighting and bank protection. The work is expected to expedite vessel movement and maintain a nearly 100 percent reliability rate for the locks. . Algoma, Nova Marine Carriers announce global short-sea shipping initiative Algoma Central Corporation of St. Catharines, Ontario, and Nova Marine Carriers SA of Lugano, Switzerland are exploring an expanded partnership expected to lead to the creation of a global company specializing in short-sea dry bulk shipping. The new company, which is to be called NovaAlgoma Short-Sea Carriers, or NASC, will initially operate a fleet of about 70 bulk vessels with capacities up to 15,000 dwt in worldwide markets. The fleet will consist of ships that are owned, chartered and under third-party management contracts. In 2016, Algoma and Nova joined forces to form NovaAlgoma Cement Carriers to focus on building a fleet of modern pneumatic bulk vessels to service cement manufacturers. . Elaine Chao Laura Blades International Shipmasters announces 2017 board During the International Shipmasters’ Association’s 127th annual convention in Alpena, Michigan, the 2017 board was announced. The officers are: (front row, from left) Grand Secretary-Treasurer Brian Eickel, Grand President Lee Barnhill, Grand 1st Vice President Harold Dusseau, Grand 2nd Vice President Mark Mather; (back row, from left) Grand Chaplain Mary Ann Schallip, Grand Sentinel Scott Reynolds, Grand Warden Caitlin Clyne and Grand Marshal Greg Stamatelakys. Andrie 6 www.greatlakes-seawayreview.com D A T E L I N E He also serves on the University of Wisconsin- Superior Transportation and Logistics Advisory Board and the U.S. DOT Maritime Transportation System National Advisory Committee. . McKeil Marine enters long-term agreement with Essroc McKeil Marine is providing Essroc Canada a vessel to transport cement products from Essroc’s production facility in Picton, Ontario to their terminals in Lake Ontario and Lake Erie. McKeil Marine is acquiring Essroc’s current vessel, the Stephen B. Roman, for operation during the 2017 season. To fulfill the long-term contract, McKeil will deliver a modern shallowdraft vessel in early 2018. The addition of the Stephen B. Roman to the McKeil fleet will provide new opportunities for the marine logistics company. The additional business is expected to add 30 full-time jobs at McKeil. . Ballast water working group releases 2016 report The Great Lakes Seaway Ballast Water Working Group’s 2016 summary report has been released. The annual report provides an update on binational efforts to reduce the introduction of aquatic invasive species through ballast water and residuals. In 2016, 100 percent of vessels bound for the Great Lakes/Seaway system from outside the Exclusive Economic Zone received a ballast water management exam. In total, the group assessed all 8,488 ballast tanks during 466 vessel transits in the navigation season. This is the seventh consecutive year the agencies have ensured the examination of 100 percent of ballast tanks entering the system. The group anticipates continued high compliance rates for the 2017 season. The working group consists of representatives from the U.S. Coast Guard, U.S. Saint Lawrence Seaway Development Corporation, Transport Canada – Marine Safety & Security and The St. Lawrence Seaway Management Corporation. For more information, please contact U.S. Coast Guard Cmdr. Christopher Tantillo at (216) 902-6049 or Christopher.J.Tantillo @uscg.mil. . Coast Guard awards contracts for icebreaker studies The U.S. Coast Guard has awarded five fixedprice contracts for heavy polar icebreaker design studies and analysis. The contracts were awarded to Bollinger Shipyards LLC of Lockport, Louisiana; Fincantieri Marine Group LLC of Washington, D.C.; General Dynamics/National Steel and Shipbuilding Company of San Diego, California; Huntington Ingalls Inc. and VT Halter Marine Inc., both of Pascagoula, Mississippi. The objective of the studies is to identify design and systems approaches to reduce costs and production timelines. The contracts require examining major design cost drivers, approaches to address potential acquisition, technology and production risks, and benefits associated with different types of production contract types. Duluth executive receives award from Center for Transportation Studies The 2017 William K. Smith Distinguished Service Award has been given to Vanta Coda, Executive Director of the Duluth Seaway Port Authority. The award was presented February 15 by the Center for Transportation Studies (CTS) in recognition of Coda’s leadership in freight transportation and logistics and contributions to leadership, mentorship and education of future leaders in private sector freight transportation. The award, first presented in 2002, is named in honor of William K. Smith, who served on the committee that established CTS and on several of its research and education councils until his death in 2001. Coda’s career in transportation and logistics spans more than 20 years. He currently serves as President for the Minnesota Ports Association and is an active member of American Great Lakes Ports Association, Chamber of Marine Commerce and Minnesota Agri-Growth Council. Vanta Coda 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 January-March, 2017 7 REGIONAL CALENDAR D A T E L I N E In February, the U.S. and Canadian governments established a partnership that will enable the U.S. Coast Guard heavy polar icebreaker acquisition program to test and validate potential design models at Canada’s National Research Council in St John’s, Newfoundland. The studies—valued at about $20 million— are expected to take 12 months, with incremental results provided during that time. “These contracts will provide invaluable data and insight as we seek to meet schedule and affordability objectives,” said Rear Adm. Michael Haycock, the Coast Guard’s Director of Acquisition Programs and Program Executive Officer. “Our nation has an urgent need for heavy polar icebreaking capability. We formed an integrated program office with the Navy to take advantage of their shipbuilding experience.” . Milwaukee invests in new crawler crane The Port of Milwaukee has invested in a new Manitowoc crawler crane for heavy lifts. The $2.7-million, model 2250 crawler crane was delivered in late 2016, joining the port’s complement of other crawler, gantry and derrick cranes. Its first use involved moving part of a locally built mining shovel. The shovel’s mainframe component weighed more than 200,000 pounds. The crane will be used to move cargo on Jones Island. Typically, port cranes lift cargo on and off barges, lakers and ocean-going ships. It will also be used to move products arriving at the port by rail. . Cat Island helping wildlife preservation The U.S. Army Corps of Engineers Detroit District’s dredge material disposal facility on Cat Island is proving an environmental benefit as wildlife returns to the area. Since 2014, more than 385,000 cubic yards of clean dredge material from Green Bay’s outer harbor has been placed on Cat Island in an effort to restore terrestrial habitat and wetland in the former Pete Lake Marsh area. As a result, more than 30 species of Great Lakes shorebirds have been spotted around Cat Island. . 30- GreenTech 2017 June 1 Hyatt Regency Pier Sixty-Six Fort Lauderdale, Florida www.green-marine.org 31- 24th Annual Symposium on the June 1 Great Lakes/St. Lawrence River Ecosystem St. Lawrence Power Development Visitors Centre Cornwall, Ontario www.riverinstitute.ca JUNE 14-16 Great Lakes and St. Lawrence Cities Initiative Annual Meeting Holiday Inn Montreal Centreville Downtown Montreal, Quebec www.glslcities.org 30 U.S. Army Corps of Engineers Soo Locks Engineers Day Sault Ste. Marie, Michigan www.lre.usace.army.mil APRIL 24-26 Breakbulk Europe Antwerp Expo, Antwerp, Belgium www.breakbulk.com 24-26 Great Lakes Economic Forum Detroit-Windsor www.greatlakeseconomicforum.com MAY 8-11 AISTech 2017 Music City Center, Nashville, Tennessee www.aist.org 28-31 Canadian Transportation Research Forum Radisson Hotel Winnipeg Downtown Winnipeg, Manitoba www.ctrf.ca 218.727.8525 | duluthport.com WE’VE GOT THE RIGHT CONNECTIONS. The Port of Duluth-Superior links the Heartland to the world. From iron ore, coal, stone, salt, cement and grain to breakbulk or heavy-lift project cargo, this port serves customers across North America and the globe. By water, road and rail … we deliver. Serving the Heartland of North America St. Lawrence Seaway Management Corp. Modernizing the Soo Locks is one of 40 national transportation and water infrastructure projects named in a recent study as having “major economic significance” to the country—an estimated net economic benefit of up to $1.7 billion. The study, entitled “40 Proposed U.S. Transportation and Water Infrastructure Projects of Major Economic Significance,” was prepared for the U.S. Department of Treasury by AECOM, in partnership with Compass Transportation Inc., Raymond Ellis Consulting and Rubin Mallows Worldwide Inc. It produced a benefit-cost ratio for modernizing the Soo Locks of between 2.0 and 4.0. “This new study is further proof that a second Poe-sized lock will be a wise investment,” said Jim Weakley, President of Lake Carriers’ Association (LCA). “The project is shovel ready. We just need an accurate benefit- cost ratio.” The study’s ratio differs from the one previously assigned by the U.S. Army Corps of Engineers—rated at 0.73—which left the project ineligible for funding. According to Corps guidelines, a benefit-cost ration must fall above 1.0 to qualify for funding. The Corps has acknowledged the inaccuracy of its prior benefit-cost ratio, noting an assumption was made that rail could move the thousands of tons of displaced iron ore to steel mills in the southern Great Lakes. Rail capacity between the northern mines and southern mills does not exist. The Soo Locks provide passage for ships carrying more than 80 million tons of cargo through in a season, about 80 percent of which transits the Poe Lock. In 2016, U.S.- flag Great Lakes freighters moved 83.3 million tons of cargo. Iron ore for steel production was the fleet’s primary cargo, totaling 44.1 million tons. Detailing the study. The Department of Treasury, on behalf of the Build America Investment Initiatives, commissioned the study to identify 40 proposed transportation and water infrastructure projects of major economic significance whose completion has been slowed or is in jeopardy. It provides a view of how, if completed, these proposed projects would have a positive impact on national and regional activities such as: • Reducing congestion • Improving safety and reliability • Decreasing flood hazard and other varied benefits “We were asked to focus on transportation and water projects because such projects are primarily funded by the public sector and have experienced problems moving forward,” according to the study’s executive summary. “In some cases, completing these projects could be transformative.” The total benefit-cost ratio across all 40 projects falls between 3.5 and 7.0, meaning the nation would gain between $3.50 and $7 for every $1 spent on capital costs. The projects included would generate $800 billion of net economic benefit if they were completed and available for use. Declining federal funding of regional and national transportation and water infrastructure projects has shifted funding responsibilities to state and local governments. L O C K S GREAT LAKES/SEAWAY REVIEW January-March, 2017 9 Mounting evidence Second study shows $1.7 billion economic benefit from modernizing Soo Locks A Quick Look Detailing the study Other research and support A 1,000-foot laker fills the Poe Lock (left), too large to transit through the smaller MacArthur Lock (right). Toledo Lucas County Port Authority “Today, there is limited incentive for state and local agencies to invest in projects with broad benefits,” the study states. “This is not just an issue related to lack of funds, but partly a lack of financial and planning incentives.” When looking at modernizing the Soo Locks specifically, the project was determined as having a net economic benefit of $0.6-1.7 billion. It includes twinning the largest lock to provide redundancy for the system’s largest ships. Considerations in the study include: • More than 60 percent of the current U.S. and Canadian fleet is restricted by size to using the Poe Lock • Any type of service disruption or closure may result in delays to vessel transit • Closures of the aging Poe Lock are expected to increase • If a closure occurs—short- or longterm— there may not be viable alternatives to transport more than 40 million tons of iron ore and coal to U.S. manufacturers along the Great Lakes Construction of a second Poe-sized lock was authorized in the Water Resources Development Act of 1986. Since then, there have been ongoing attempts to secure funding, including the most recent—when Congress agreed the lock should be built at full federal funding. The engineering is ready and part of the required coffer dams have been installed to clear the way for lock construction. While the red tape of procedures remains, studies and influential support mounts. Twinning the Poe is nearly the definition of infrastructure investment, which has been supported by the last two U.S. administrations. Yet, a lack of funding has the project stalled and more money being spent on maintenance to minimize lock shutdowns and interruptions to commerce. Increased reliability and efficiency are benefits identified in the study for twinning the largest lock. A new lock would lower operators’ risk profile to prospective lenders and make lenders more inclined to finance capital investments. An expectation in an increasing number of mechanical problems at the aging lock is also noted, along with the federal government being unable to fully capture the national impact for each closure of the Poe Lock. “The project will require 1.5 million labor-hours over the 10-year construction period,” Weakley said. “The jobs it will create have been likened to opening an auto plant in the Upper Peninsula. And the eco- L O C K S 10 www.greatlakes-seawayreview.com Steps toward constructing a new Poe-sized lock DISCUSSION OF BUILDING a new Poe-sized lock has been going on for decades. The current lock— the only one large enough for the U.S.-flag freighter fleet—was constructed in 1968. • In 1986, the second Poe-sized lock was authorized by Congress. • In 2004, a flawed benefit-cost ratio halted the process. • In 2007, Congress authorized construction of the lock at full federal expense. • In 2009, preparation for lock construction began. • In 2014, the Corps conducted a “sensitivity” study to determine if a new study was warranted. • In 2015, a U.S. Department of Homeland Security study was released. Simultaneously, the Corps’ sensitivity study confirmed the need for the Economic Reevaluation Report, a secondary benefit-cost study. • In 2016, a U.S. Department of Treasury Report was released, rating Soo Locks modernization as having a benefit-cost ratio of between 2.0-4.0. Groupe Desgagnes Minnesota Wisconsin Michigan Pennsylvania New York Illinois Indiana Ohio nomic benefit will exceed $1.7 billion.” Other research and support. For the past two State of the State addresses, Michigan Governor Rick Snyder has stressed the importance of constructing a second Poesized lock in the Soo. In February, he followed up by placing lock modernization at the top of a list of the state’s pressing infrastructure priorities to the National Governors Association. The association sent the lists to the White House. Snyder said constructing the lock should be a priority for President Trump. Year in and year out, more than 80 million tons of cargo transits the Soo Locks. More than 90 percent of the cargo U.S.-flag lakers move through the Soo Locks transits the Poe Lock, according to LCA. A study published in 2016 by the Department of Homeland Security (DHS) states the largest lock is a potential single point of failure in the iron mining-steel production- manufacturing supply chain. DHS forecasts nearly 11 million Americans would lose their jobs if the Poe Lock was out of service for just six months. The lock is estimated to cost $672 million and would create approximately 15,000 construction jobs during the 10-year construction period. Janenne Irene Pung n L O C K S GREAT LAKES/SEAWAY REVIEW January-March, 2017 11 SOURCE: 40 PROPOSED U.S. TRANSPORTATION AND WATER INFRASTRUCTURE PROJECTS OF MAJOR ECONOMIC SIGNIFICANCE, 2017 (O&M EXCLUDED FROM COSTS) BY THE NUMBERS 9,923,000 POPULATION 4,265,000 EMPLOYMENT $448,000 GROSS DOMESTIC PRODUCT ($M) 46,787,000 POPULATION 21,515,000 EMPLOYMENT $2,368,286 GROSS DOMESTIC PRODUCT ($M) Economic Benefits & Costs ($M) $626 CAPITAL COST $582 DISCOUNTED CAPITAL COST $1,164-2,328 DISCOUNTED BENEFITS $582-1,746 NET ECONOMIC BENEFITS 2.0-4.0 BENEFIT-COST RATIO Michigan Market Served Great Lakes States Market Served www.desgagnes.com info@desgagnes.com Telephone: (418) 692-1000 Fax 21 Marché-Champlain Street, Desg Grou x: (418) 692-6044 , Québec (Québec) G1K 8Z8 D gagnés inc. upe Tessier Ltd. Relais Nordik Inc. Petro-Nav Inc. Transport Desgagnes Inc. Services Maritimes Desgagnés Inc. Navigation Desgagnés Inc. Desgagnés Transarctik Inc. Desgagnés Marine Saint-Laurent Inc. Desgagnés Marine Petro Inc. Desgagnés Marine Cargo Inc. Subsidiaries maritim portation, Passenger maritime transportation General cargo and liquid bulk maritime trans ternational s and heavy machinery coastal and in mach Shipowners charterers brokers and agents Rental and operation of crane Intermodal tra Road trans o a on nshipment Boreal Cranes Inc. me Inc transportation division Petro-Nav Saint-Sacrement Street Suite 601 Montréal (Québec Tele H2Y 1W8 phone: 14) 8 8 a e 88 agn 800 agnes.com Fax: (514 8 9195 : info@petro.nav.desg maritim 204 S Liquid bulk E-mail Soo Locks The Great Lakes Seaway Partnership d l A techn f th G t L k ical background supporting 227 Great Lakes Se 000 jobs in the United St away shipping drives eco tates and Canada onomic growth, on that challenge. at a busy shipyard. He thrive Today, he supervises project become a marine mechanic inspired Chris Henderson to and a love of the Great Lake For more inform es ts c. o s www.greatla @GLSPartne mation, please visit us at ,000 akesseaway.org ership : Canada. Estimating & Planning, Great Lakes Shipyard CHRIS HENDERSON, Project Coordinator/ Great Lakes/Seaway Review: Leadership within the Great Lakes/St. Lawrence Seaway system has outlined priorities for business development as: 1) Investing in infrastructure, 2) Harmonizing regulations across borders, 3) Reducing red tape and costs of government-mandated services and 4) Establishing environmental regulations on science. Do you agree with these priorities and, if so, why? If you have other priorities, please share them and why they’re important. Barker: Broadly speaking, I do agree with these priorities, given the right context. These are initiatives that we need to be collectively working on as industry leaders. Exactly how they are defined and executed presents unique challenges for all stakeholders. We need a Great Lakes/St. Lawrence Seaway system that has a strong infrastructure so we know we have the ability to move cargo. Without this, we have no business model. A second Poe-size lock at Sault Ste. Marie, Michigan is an absolute necessity for the health and security of our nation’s economy. We need to be able to navigate a regulation regime that we understand and one that has continuity. Clearly, the U.S. and Canada share an important waterway and border. Our corresponding regulations must be respected and streamlined in order to encourage trade and maintain the free flow of cargo between our nations. We need to establish environmental regulations that are rooted in science and implemented based on true risk. And at the end of the day, we need to ensure that these priorities have a vision and a timeline attached. We are making large investments in our fleets, and we need to have confidence that our countries, our infrastructure and our regulations will be there to support us as we help propel our nation’s economy forward. Harris: I understand these priorities, but would not agree with them completely. First, if the goal is business development, then I would believe the focus should be developing business. The priorities listed above are great, but for me, developing business is connecting the correct industry with the ports through an analysis of capabilities, market trends and business activity. Second, any financial assistance from either government—programs that can increase economic opportunities as well as strengthen financial power in buying, bonding or expanding—would be optimal. Finally, inviting more elected officials to the meetings could help open governmental awareness and thus encourage more business opportunities. Heney: Reducing red tape and, particularly, costs of government-mandated services should be the No. 1 priority to enhance competitiveness and diversify cargo on the system. Increasing and diversifying cargo would be the overall priority. Pathy: I do agree with them. Both points of harmonizing regulations and reducing costs of services are certainly high on our priority list for business development and trade in the Great Lakes. E X E C U T I V E R O U N D T A B L E GREAT LAKES/SEAWAY REVIEW January-March, 2017 13 Providing leadership Maritime executives weigh in on key issues impacting business development As the 2017 season kicks off, there are a number of issues impacting the future of the Great Lakes/St. Lawrence Seaway system. To share insights with stakeholders throughout the industry, Great Lakes/Seaway Review has prepared a virtual roundtable where a group of industry leaders discuss impediments to progress and strategies for moving forward. The executives participating in the roundtable are: Mark Barker, President, Interlake Steamship Company; Clayton Harris III, Executive Director, Illinois International Port District; Tim Heney, CEO, Thunder Bay Port Authority; Paul Pathy, President and CEO, Fednav Limited; and Joe Starck Jr., President, Great Lakes Shipyard. If you would like to provide your thoughts on any of these topics, please email them to Editor Janenne Irene Pung at jpung@harborhouse.com. We need to establish environmental regulations that are rooted in science and implemented based on true risk. —Mark Barker Mark Barker Clayton Harris III Tim Heney Paul Pathy Joe Starck Jr. Ocean Group 14 www.greatlakes-seawayreview.com fighting for the same cargoes and vessel calls. If investment in infrastructure will make the system more cost-efficient, then it will help. If harmonizing regulations makes the system more welcoming to its users, then that should help. If, by reducing red tape and costs of government-mandated services, we can attract more cargoes and generate more vessel calls, that would be great. And, if establishing environmental regulations based on science helps reduce costs, well every little bit helps. We believe that we’re all in this together. Our priorities for business development must be in sync to keep the system viable and sustainable for the long-term. Great Lakes/Seaway Review: Heading into the 2017 season, what do you view as your greatest business development opportunities and why? Barker: In 2017, we are looking for an increased stabilization of our core customers in iron ore, coal and stone trades. We look forward to helping our customers grow as the economy slowly rebounds. Harris: The greatest opportunity would/could be infrastructure investment. The ability to strengthen and expand port operations, while attending to infrastructure needs, will increase opportunities for development. Heney: Movement of crude oil would be the opportunity with the greatest potential for increased cargo volumes. Continuing challenges to new pipelines and the inherent safety issues with rail transport of crude oil will eventually make marine a preferred option. Pathy: With the prospect of more infrastructure investment, we hope steel demand will be strong. The Midwest Revival (the auto industry in particular) should have an effect on demand for general cargo and steel. Starck: Without question, the hopeful anticipation for government investment in Infrastructure renewal in the system is of great importance and this priority is shared by our governments (Seaway, Soo locks, dredging, ports, etc.). Additionally, we consider environmental performance to be an urgent issue. We must strive to continuously reduce our footprint. Starck: While I believe all of these priorities are important, the highest priority is to reduce costs. The Great Lakes/St. Lawrence Seaway system has seen a continual decrease in vessel traffic and cargo. Meanwhile, costs across the spectrum of services to that cargo and those vessels continue to increase. With each increase, we send a collective message to the users of the system that we don’t want them here. If we can’t figure out how to increase cargo and decrease our costs, the international trade we all rely upon will disappear from the Great Lakes. The Great Lakes Towing Company provides harbor towing services. It is a service provider that is truly at the bottom of the food chain. No cargo … no ship. No ship … no ship assist. It’s very simple. Our ports are all E X E C U T I V E R O U N D T A B L E Without question, the hopeful anticipation for government investment in infrastructure and the resulting demand for construction materials represent an excellent opportunity for a spike in trade. —Joe Starck Jr. MARINE INGENUITY Our range of marine services is the most comprehensive in the industry. Whatever your needs in ship construction and repair, dredging, specialized equipment rental, harbour towing or marine transportation, our expertise and creativity will be useful in providing you with ingenious solutions tailored to your needs. WE ARE PROPELLED BY OUR MARITIME PASSION GROUPOCEAN.COM Ports Toronto GREAT LAKES/SEAWAY REVIEW January-March, 2017 15 infrastructure and the resulting demand for construction materials represent an excellent opportunity for a spike in trade. Of course, this would result in movement of more of the same cargoes, not necessarily “new business.” Great Lakes/Seaway Review: What do you see as your greatest challenges of the new season? Barker: The challenges for us are focused on ensuring the long-term sustainability of the Great Lakes system. Our top priority is continuing to advocate for redundancy at the Soo Locks and the critical need to build a second Poe-size lock. Harris: The greatest challenge for me is financial stability and increasing and expanding business on/with/for the port, as well as working with the state and federal governments in ensuring there is adequate attention toward the port. Funding, infrastructure and operations are extremely important, but having the port incorporated into the transportation logistics in and beyond the region is critical. Heney: The challenge is always educating potential customers as to the benefits and capabilities of the system and coordinating with railways or trucks to reach final destinations. Continual cost increases in pilotage and other government-related regulations are a growing challenge. Pathy: Our greatest challenge is keeping the costs of the system down; particularly with pilotage costs for U.S. pilots, which increased 70 percent in the last year alone. Starck: In the harbor towing business, we see compliance with the U.S. Coast Guard’s Subchapter M towing vessel inspection rules as a major concern. This season, we will be focused on our safety management systems and the condition of our fleet as we prepare to obtain Certificates of Inspections for each tug. This will be a major, major undertaking with a significant cost impact on our entire operation. Great Lakes/Seaway Review: How are major commodity shifts impacting you and what are you doing in response to, for example, the notable decreases in coal and iron ore shipments? Barker: Our company has invested heavily to modernize and maintain our fleet so we are ready and equipped to respond as the economy recovers and business rebounds. Harris: We have been diverse in the commodities that have been coming to and through the port. The port pivoted years ago from grain and increased in metals. Heney: We have seen significant improvement in grain volumes over the past three years and, I believe, this trend will continue. Increasing harvests in the prairie provinces and growth in eastern markets, particularly the Middle East and North Africa, will lead to increased usage of the Seaway. Pathy: Commodity shifts are constant in our industry; as carriers, we understand the need to adapt to this reality. We are continuously investing in our fleet. We operate 43 Lakes-suitable salties and have eight on order, allowing us the flexibility to serve the Great Lakes and world markets. E X E C U T I V E R O U N D T A B L E Increasing harvests in the prairie provinces and growth in eastern markets, particularly the middle east and north Africa, will lead to increased usage of the Seaway. —Tim Heney Adonis Starck: The decrease in coal and iron ore hurts each and every one of us—the vessel operators, docks, ports, tugs, etc. We must reduce our costs and find new cargoes to replace these. Great Lakes/Seaway Review: With landbased movement of large project cargo struggling with permits and congestion, in what ways can the marine industry improve its partnerships and/or intermodal connections to gain access to more intermodal movements? Barker: Finding ways to collaborate with our partners and offer creative solutions for their project cargo is essential as we continue to build awareness about the efficiency and environmental benefits of marine transportation. Harris: This is a great question and one that I have been tackling, or attempting to tackle, in my region. I have had to start with a re-education of the benefits that ports offer in reducing congestion, improving the environment and adding to the quality of life for communities. Marine industry can improve partnerships by engaging in purposeful interaction with the trucking and rail communities through seminars, workshops, talks, papers and elected officials. This may seem selfserving (and probably is to a small extent), but the first meaningful touchpoint should be Chicago. Chicago is the freight capitol of North America and has “committed” to reducing congestion and improving how freight moves, but those leading discussions have neglected to include ports, even though they can mitigate concerns. Heney: The Seaway has a natural advantage on project and dimensional cargo. The further inland this type of shipment can be taken by ship, the fewer the challenges and the lower the costs. This advantage, combined with an available grain backhaul to the point of origin in Europe, improves the economics of the shipments. The liner service concept introduced in Cleveland has been a major step forward by increasing part-lot shipments. Pathy: The solution for road congestion in the Great Lakes region lies clearly within the maritime industry. This is true in general, but much more applicable in relation to large project cargo. Ships can easily transport large loads, which would otherwise disrupt normal traffic. The shipping industry has the expertise and equipment to deal with these projects. Starck: This is an area where we can develop new business. For each dollar invested in the movement of large project cargoes using the Seaway system, we should see a much greater amount in return. Marketing more to supply chain managers and 3PLs in conjunction with finding ways to reduce costs is necessary to capture more project cargo. Developing cooperative relationships with trucking and rail interests that provide the “last mile” is also critical. Great Lakes/Seaway Review: There are some new executives coming into the system with international and non-shipping backgrounds. In what ways do you anticipate their influence impacting the system in the next few years? Harris: They provide fresh eyes and new perspectives that move folks from the waythings- have-always-been-done. Innovation, creativity and novelty can be keys to renewed success. Heney: This may provide a new and innovative perspective with fewer ties to traditional ways of doing business. Pathy: Our view has always been that the Great Lakes’ economy is linked to world markets. An international vision is needed for the region to benefit from worldwide trade. We like to think that we have always brought this vision and expertise to the Lakes and welcome outside influences. Starck: Maybe their fresh perspective will help. Certainly, if they can help connect the Seaway to other modes of transportation, to help provide more cost-efficient transportation of cargoes for our customers and generate new business, they will be welcomed with open arms. Great Lakes/Seaway Review: Do you have anything to add? Pathy: Fednav is confident in the future of the Lakes. This is why we are continuously investing in our Lakes-suitable fleet and in our terminal operations. We should, collectively, always be conscious of the system costs and be aware of our competitiveness. . The solution for road congestion in the Great Lakes region lies clearly within the maritime industry. —Paul Pathy Innovation, creativity and novelty can be keys to renewed success. —Clayton Harris III challeng We know A complete su Maritime Human Re ges! w the tal roll Manager n pboard Modules ite of esource: Ad • – a Adonis Portal Adonis Payroll Adonis Personnel integration for office and shipboard Crew Planning global Human Resource Solution www.adonis.no Crew Management • Crew Planning • Course Scheduling • Competence Matrix and Requirements • Documents scanning • Mail Merge • Web Recruitment Portal • Crew Portal with Time & Attendance • US Payroll with built-in tax and social security • All AMO, SIU and USW calculations and reporting • Advanced output options • Check printing • Direct Deposit interfaces • Accounting System interfaces • E-mail interface • Automatic ship-shore replication of crew and payroll information 16 CRAIG H. MIDDLEBROOK Deputy Administrator Saint Lawrence Seaway Development Corporation CARRIE L. LAVIGNE Chief Counsel Saint Lawrence Seaway Development Corporation Water is crucial to safe navigation, as it is to most aspects of our human existence. Nowhere is this truer than on Lake Ontario and in the St. Lawrence River where adequate water levels and flows are critical to safe and efficient navigation. In January, for the first time in over 50 years, the International Joint Commission implemented a new water level and flow plan for Lake Ontario and the St. Lawrence River—Plan 2014. Over the last 16 years, extensive efforts by numerous individuals north and south of the 49th parallel went into agreeing on a new plan. As that plan is now, finally, being implemented, it is important to understand how the previous plan was changed and what the future looks like under the new plan. Why a water plan? In the 1950s, the physical construction of the Seaway was deemed an engineering marvel for its ability to connect the Great Lakes to the Atlantic Ocean through an intricate series of deepdraft locks and channels. In addition to confronting the Seaway’s physical infrastructure challenges, engineers also had to develop a water management plan to ensure adequate water levels and flows from the newly constructed Robert Moses Saunders Power Dam located between Massena, New York and Cornwall, Ontario. This water management plan was every bit as critical—if not more so—as the new lock and channel infrastructure needed for viable commercial navigation. Without adequate water levels and flows, this engineering marvel would not have been able to fulfill the vital purpose for which it was created. Nor would the Saint Lawrence Seaway Development Corporation (SLSDC) be able to succeed in its mission to serve marine transportation industries by providing a safe, reliable and efficient deep-draft international waterway in cooperation with its Canadian counterpart, The St. Lawrence Seaway Management Corporation (SLSMC). Given the critical role of water levels and flows for navigation, one begins to realize why it took so long to develop a new plan. How are water levels and flows managed? The past—1958DD. The International Joint Commission (IJC), the binational organization created under the United States- Canada Boundary Waters Treaty of 1909 (1909 Treaty) to prevent or resolve boundary waters disputes, not only approved the U.S. and Canadian government applications to construct the Seaway, but also developed a water management plan in the mid- 1950s. The plan was based on criteria provided by both governments, in order to direct and control the water flows and levels at the Robert Moses Saunders Dam in Massena, New York. The 1909 Treaty recognized the critical importance of navigation in the boundary waters of Canada and the United States by establishing an “order of precedence” for the IJC to adhere to when it manages levels and flows. Since water is a finite resource, the order of precedence prioritizes water uses as follows: 1) domestic and sanitary purposes; 2) navigation; and 3) hydropower. The plan developed by the IJC in the 1950s, referred to as Plan 1958DD, was ultimately put into place based on the criteria in a 1956 “Order of Approval” (Order). The Order and Plan 1958DD respected the 1909 Treaty’s order of precedence, thus meeting the needs of navigation. Over the years, however, repeated deviations from Plan 1958DD were needed to ensure safe vessel transits. The present—Plan 2014. In 2000, the IJC, acknowledging the increasing need for deviations from Plan 1958DD, decided on its own initiative to undertake a five-year study of how to improve the plan. As part of the study, the IJC also sought to include additional interests in the development of a new plan, interests that were not included when Plan 1958DD was developed, while still adhering to the terms of the 1909 Treaty. From 2006 until 2012, the IJC put forth several proposed plans that were the subject of public hearings and comments. For the SLSDC, the most important criterion for assessing any new plan was whether it would provide the same level—or better—of safety for navigation as Plan 1958DD. Based on its analysis of the proposals, the SLSDC determined that these earlier plans would not. Due to this and other concerns raised by numerous stakeholders during the hearing and comment periods, the IJC determined that none of the proposals represented a viable approach. So it went back to the drawing board. In 2013 the IJC held public hearings around the basin of Lake Ontario and the L A K E L E V E L S GREAT LAKES/SEAWAY REVIEW January-March, 2017 17 The most basic need How Plan 2014 addresses safe and efficient navigation A Quick Look Why a water plan? The past—1958DD • The present—Plan 2014 The future—implementing Plan 2014 DNV-GL St. Lawrence River, and based on the information presented at the hearings and public comments it received, it developed a new water management proposal: Plan 2014. The IJC has characterized Plan 2014 as a way to protect navigation while benefiting the environment by restoring “more natural flows” to the St. Lawrence River to allow for more flooding during wet seasons and more restricted water flows during dry seasons. In June 2014, Plan 2014 and the accompanying Supplementary Order of Approval were presented to the two governments for their concurrence— the first proposed plan to reach this level throughout the process. During the two years of interagency negotiations that followed, the SLSDC supported an approach to changing the Lake Ontario and the St. Lawrence River water level and flow plan that would broaden the interests served by the new plan while protecting the safety and efficiency of navigation. One area of consistent focus and discussion was the anticipated impact of future dry seasons under Plan 2014. If water levels were to drop too low, navigation safety could be adversely affected in the Seaway and thus violate the 1909 Treaty. Ultimately, the two governments agreed to use a “trigger level” approach, which established specific water level points at various times of the year when the Seaway will be able to obtain a major deviation from Plan 2014 to provide for safe transits through the Seaway. Under the new plan, such instances of low water should occur less than 10 percent of the time. When water levels reach a specific trigger level, the flows from the dam will be set to provide all possible relief to navigation, pursuant to the Order of Approval. The L A K E L E V E L S 18 www.greatlakes-seawayreview.com LAKE ONTARIO – ST. LAWRENCE RIVER DRAINAGE BASIN Detroit Wayne County Port Authority trigger levels will allow the new water management plan to comply with the terms of the 1909 Treaty (i.e., with the treaty’s order of precedence) to ensure safe navigation in Lake Ontario and the St. Lawrence River. It is anticipated that the need for such major deviations will be less frequent than under Plan 1958DD. The two governments communicated their agreement to use trigger levels to the IJC in a joint concurrence letter accompanying a Canadian and U.S. revised Order of Approval. Pursuant to the terms of the order, these specific low water level triggers, as well as Plan 2014 itself and the Order of Approval, can only be changed with the concurrence of both the U.S. and Canadian governments. An express statement is included in the governments’ joint concurrence letter reflecting the understanding that the order will be implemented in a manner that observes the treaty’s order of precedence. These key components seek to ensure that the SLSDC will be able to fulfill its mission by allowing for safe and efficient navigation in the St. Lawrence Seaway. After months of negotiations, the United States and Canada concurred on a new Order of Approval, entitled: “International Joint Commission Supplementary Order of Approval to regulate water flows and levels on Lake Ontario and the upper St. Lawrence River.” On December 8, 2016, the IJC issued the order. The future—implementing Plan 2014. After 16 years of study, numerous reviews of multiple proposed plans, as well as lengthy negotiations among many stakeholders in the United States and Canada, the IJC began the implementation of Plan 2014 in January 2017. This is a milestone achievement. One of the first steps taken by the IJC was to create a new board, the International Lake Ontario- St. Lawrence River Board, to manage and execute the approved plan. Additionally, as part of the order, the IJC will utilize an adaptive management plan to monitor and evaluate the new plan’s impacts. The SLSDC was an active participant throughout the 16-year process that led to the adoption of Plan 2014. Every effort was made to ensure that Plan 2014 and the “2016 Supplementary Order of Approval” will provide commercial navigation with the necessary water levels to safely and efficiently transit the Seaway (provided Mother Nature complies). Going forward, diligent monitoring of Plan 2014 is a must to ensure that it is implemented in accordance with the 1909 Treaty, in particular with its order of precedence. Plan 1958DD worked well for navigation for over 50 years. We all need to ensure that we “got it right” in Plan 2014 for the next half century. “Water is life,” as the saying goes, and without adequate water, there would be no viable navigation in the St. Lawrence Seaway. . L A K E L E V E L S GREAT LAKES/SEAWAY REVIEW January-March, 2017 19 After 16 years of study, numerous reviews of multiple proposed plans, as well as lengthy negotiations among many stakeholders in the United States and Canada, the IJC began the implementation of Plan 2014 in January 2017. DETROIT/WAYNE COUNTY PORT AUTHORITY PROMOTING TRADE AND ECONOMIC GROWTH 130 E. Atwater, Detroit, Michigan 48226 Phone: (313) 259-5091 Fax: (313) 259-5093 www.portdetroit.com • Located on the border of United States and Canada • Seaport related services • Remediation of Brownfield sites • Global transportation system • Worldwide direct-water port terminals with complete cargo handling and stevedoring services • Financing tools for improving infrastructure repair and development • Public/private partnerships which create awareness for the maritime industry, job creation and economic growth T H E 2 0 1 6 S E A S O N The tide is turning from a strong surge for globalization. The U.K. left the European Union. Elections resulted in shifts in political power in both Canada and the U.S. Discussions created, and continue to create, a sense of instability regarding long-term and new trade deals. Commodity prices are low and the value of the dollar high—negatively impacting exports. The constant of the Great Lakes/St. Lawrence Seaway’s 2016 season was change. Halfway through the season, cargo tonnage was down 11 percent compared to 2015. A dip in demand for iron ore and coal contributed to the decrease. Agriculture helped fill the gap, with the fall harvest bringing numbers up to 35.13 million metric tons—3 percent down from 2015, according to Canada’s The St. Lawrence Seaway Management Corporation (SLSMC). General cargo, including wind turbines and other machines, continue to increase as a significant commodity in the system. Additionally, U.S. grain traffic increased by 21 percent and liquid bulk traffic increased by 18 percent in 2016. “Due in part to trade initiatives led through the Hwy H2O international marketing brand, U.S. and Canadian grain was a major commodity in the supply chain to export markets in 2016,” said Terence Bowles, SLSMC President and CEO, noting the Seaway locks maintained 99.9 percent availability throughout the season. As a breakdown, ships moved 8.9 million metric tons of dry bulk, 8.5 million metric tons of Canadian grain and 6.20 million metric tons of iron ore. Overall tonnage was down 2.35 million metric tons from the five-year average. (For more specifics on tonnage, please see the related graph on this page.) “The slight decrease in traffic throughout the Great Lakes/St. Lawrence Seaway system was representative of international shipping trends as well as fluctuations in the world economy in 2016,” said Craig Middlebrook, Deputy Administrator for the Saint Lawrence Seaway Development Corporation (SLSDC). 2016 tied for being the longest shipping season since opening in 1959, with 3,773 ships transiting during 286 days of operation—extending from March 21 to December 31. Cargo was moved between North America and more than 50 countries. “Without a doubt, agricultural commodities have become increasingly important, and it’s rewarding to see the pace of new investment by grain companies in ports along our waterway,” said Bowles. “What we need to keep in mind is that while grain

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