Vol.45 No.4 APR‑JUN 2017

V O L U M E 4 5 A P R I L – J U N E 2 0 1 7 N U M B E R 4 Iron ore innovations . Ohio intermodal connections . LNG in the system . Bay Shipbuilding expands 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 LEADERSHIP Interlake Steamship’s legacy of leadership on the Great Lakes is a result of more than a century of superior customer service. Interlake continues to build its legacy by ensuring that its vessels are efficient and reliable. Preventive maintenance, upgrades, and attention to environmental stewardship keep the nine-vessel fleet in top shape. Responsive marketing and innovative engineering prevent delays and maintain a high level of readiness and efficiency. With individual vessel capacities ranging from 24,800 to 68,000 gross tons, Interlake can provide targeted solutions to customers’ requirements. Great Lakes transportation is our business, our only business. Let us deliver for you. Great Lakes Fleet GREAT LAKES/SEAWAY REVIEW April-June, 2017 1 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 Port Milwaukee Marine Tech 2 www.greatlakes-seawayreview.com THE INTERNATIONAL MARITIME MAGAZINE OF THE GREAT LAKES/ST. LAWRENCE SEAWAY SYSTEM VOLUME 45 APRIL-JUNE 2017 NUMBER 4 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, III, 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: A tug and barge are used to move oversized cargo at Duluth, Minnesota. Source: Robert Welton Great Laker Cover: Two generations of LaMarre mariners enjoy a moment aboard the William Hoey. Source: Paul C. LaMarre, III .. .. 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 BULK, BREAKBULK, LIQUID CARGO . 16 day Europe to Milwaukee service with Fednav shipping line . Year-round river barge service to the Gulf region . Deck barge service throughout the Great Lakes . Tramp liner service by Inducement . Heavy lift capacity up to 187 metric tons with Stiff Leg Derrick crane . Inside and outside storage availability . Direct Union Pacific an d Canadian Pacific railroad service . All interstate highway routes to Illinois and Iowa for overdimensional cargo FOR MORE INFORMATION: Port Milwaukee 414-286-3511 www.milwaukee.gov/port OVERSIZED AND HEAVY GREAT LAKES/SEAWAY REVIEW April-June, 2017 3 The international maritime magazine of the Great Lakes/St. Lawrence Seaway system A new superflex taconite pellet is being produced at Cliffs Natural Resources new plant. Page 9. Potential growth of marine sanctuaries causes shipping concerns. Page 25. Two Great Lakes lighthouses get a second chance. Page 50. A R T I C L E S Lighthouses A NEW LEASE ON LIGHT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50 Two Great Lakes lighthouses get a second chance. History HONORING THE REGION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57 Seaway commemorated in collection of stamps. Maritime Heritage MASTERPIECE IN MONTREAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .60 Port authority’s model city is scaled to amaze. Great Lakes People NEW TOP SEAFARER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63 Lloyd’s Tom Boardley leads Mission to Seafarers. Commodities GOOD NEWS, BAD NEWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Innovations, infrastructure and cautious optimism for the iron ore industry. Executive Roundtable DISCUSSING MARITIME TRANSPORTATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 Ohio seeks to further integrate maritime into its focus on intermodal commerce. Marine Sanctuaries UNINTENDED CONSEQUENCES? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25 Potential rapid growth of Great Lakes marine sanctuaries creates shipping concerns. Technology MARKING PROGRESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29 Industry stakeholders face hurdles before autonomous ships can become commercially viable. Locks EISENHOWER AT WORK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32 An up-close view of U.S. Eisenhower Lock. Shipbuilding LAUNCHING AN ERA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34 Desgagnés brings LNG power to the system. SHIPBUILDER EXPANDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39 Fincantieri Bay Shipbuilding positioned for growth by adding land, facilities. Technology PRECISION CLEARANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43 Use of dynamic under-keel clearance technology on the St. Lawrence River. A P R I L – J U N E 2 0 1 7 Great Lakes/St. Lawrence Seaway D E P A R T M E N T S G R E A T L A K E R Dateline: Great Lakes/St. Lawrence Seaway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Guest Editorials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23, 37, 41 Legends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 On the Radar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 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 PRINT DIGITAL MOBILE Between issues of Great Lakes/Seaway Review, stay current with our free weekly news service, Digital Dateline, at www.greatlakes-seawayreview.com/digdateline/ Fednav 4 GREAT LAKES/SEAWAY REVIEW April-June, 2017 5 Rear Adm. Nunan to assume command of Ninth District Rear Adm. Joanna Nunan will assume command of the Ninth Coast Guard District Wednesday, August 2 in Cleveland, Ohio. She will relieve Rear Adm. June Ryan, who is retiring after 35 years of service. Nunan currently serves as Military Advisor to the Secretary of Homeland Security. Prior to this, she was Chief of Staff at the Coast Guard Force Readiness Command in Norfolk, Virginia. She has served as Deputy Sector Commander in San Juan, Puerto Rico and as Sector Commander in Honolulu, Hawaii. She was selected as the Coast Guard’s first Female Elite Athlete of the Year. Ryan enlisted in the Coast Guard Reserves in 1982 and was the first woman to move up the military ranks from junior enlisted to flag officer. Her staff tours include Senior Instructor, Maritime Law Enforcement School, four tours in Coast Guard Headquarters and two tours in Coast Guard Pacific Area, including Pacific Area Chief of Staff. She also served as the Military Aide to the President, only the third woman in U.S. history to do so. Ryan assumed command of the Ninth Coast Guard District in June 2015. . Great Lakes/Seaway economy expansion expected The Great Lakes/St. Lawrence Seaway economy is expected to accelerate in 2017 after posting sturdy growth in recent years, according to a new report from BMO Capital Markets Economics. The report, Driving North American Growth and Trade, states the U.S. economy is expected to grow 2.3 percent in 2017, up from 1.6 percent last year. Canada’s economy is expected to grow 2.5 percent as Central Canada remains strong and the oil-producing provinces emerge from recession, according to BMO Chief Economist Doug Porter, who presented the study at the Great Lakes Economic Forum. “The Great Lakes/St. Lawrence region is a vital driver of North American economic output, jobs and exports,” Porter said. “With economic output estimated at C$6 trillion in 2016, the region accounts for 30 percent of combined Canadian and U.S. economic activity and employment.” According to the study, trade within the Great Lakes region is relatively balanced. The North American Free Trade Agreement has helped spur the trade relationship and recent political comments regarding renegotiation are creating concerns for the integrated supply chain. “Measures by policymakers to maintain the trade relationship and further facilitate the flow of goods in the region would be a clear positive for economies on both sides of the border,” Porter said. To review the full report, go to bmocm. com/economics. . Michigan delegation pushes for funds to twin Poe Lock 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 Rear Adm. Joanna Nunan Rear Adm. June Ryan A bipartisan group has introduced the Soo Locks Modernization Act, federal legislation authorizing funding to construct another Poe-sized lock in Sault Ste. Marie, Michigan. This legislation was introduced in June, days after seven members of Michigan’s congressional delegation and Gov. Rick Snyder toured the locks. Introducing the bill was: U.S. Sen. Debbie Stabenow, Rep. Jack Bergman, U.S. Sen. Gary Peters and Reps. Sandy Levin, Fred Upton, Bill Huizenga, Tim Walberg, Dan Kildee, Mike Bishop, Debbie Dingell, Brenda Lawrence, John Moolenaar, Dave Trott and Paul Mitchell. There have been no comprehensive improvements to the Soo Locks facility in nearly 50 years. About 80 million tons of iron ore, coal, stone, grain and other commercial commodities pass through the locks annually. The Poe Lock is the only lock large enough to allow transit of the Great Lakes/St. Lawrence Seaway’s largest lakers. These ships handle 70 percent of the cargo moved through the locks. “We are on borrowed time until something happens that shuts down the Poe Lock,” said Stabenow, noting that during the tour, the group saw 100-year-old pumps and a lock built during World War II. “Our whole delegation is working together to secure funding to build a replacement lock. We must ensure this vital gateway stays open for commerce and jobs.” “We’ve reached the point where modernization is absolutely critical to prevent unscheduled interruptions in operation and nationwide economic disaster,” Bergman said. “The Soo Locks have been called the Achilles’ heel of our American manufacturing industry and even a short unplanned outage at the Poe Lock would seriously impact Michigan’s manufacturers and our national economy,” Peters said. For more information on twinning the Poe Lock, please turn to Rep. Jack Bergman’s Guest Editorial on page 23. . SLSDC installing hands-free mooring technology on U.S. locks During the 2017 winter season, the U.S. Saint Lawrence Seaway Development Corporation (SLSDC) completed the first major phase of a multiyear project to install handsfree mooring technology (HFM) at Eisenhower and Snell locks. Similar to the Canadian St. Lawrence Seaway Management Corporation, SLSDC is updating the way vessels transit the U.S. locks. The new technology allows commercial ships to transit faster and more efficiently, while also enhancing workplace and operational safety conditions. The HFM system uses vacuum pads, each of which provide up to 20 tons of holding force, mounted on vertical rails inside the lock chamber wall to secure a vessel during the lockage process. HFM keeps the vessel at a fixed distance from the lock wall as it is raised or lowered. The last step in the lockage operation consists of releasing the vacuum and retracting the pads so that the vessel is able to sail safely out of the lock. At the end of the year, SLSDC will complete HFM installation at the Eisenhower Lock. To get better acquainted with this lock, turn to page 32. . Improving intermodal connections The first six containers arrive at Duluth-Superior by train this spring as the port opens the new CN Intermodal Terminal. SOURCE: DULUTH SEAWAY PORT AUTHORITY Andrie 6 www.greatlakes-seawayreview.com D A T E L I N E U.S. Army Corps releases work plan for FY18, adds for FY17 With the 2017 dredging season in full swing, the U.S. Army Corps of Engineers has released its operations and maintenance work plan for FY18. The Great Lakes Navigation Team has created an operations and maintenance (O&M) work plan for $106.23 million, the amount included in the President’s Budget. Of that amount, $37.85 million is committed to dredged ports in the Great Lakes, according to numbers released by Marie Strum, Team Lead. The budget will cover removal of a total of 2.95 million cubic yards of material from harbors in Cleveland, Toledo, Duluth-Superior, Indiana (including Burns), Monroe, Green Bay, Calumet, Sandusky, Grand Haven, Manistee, Conneaut, Holland, St. Joseph, Waukegan and the Saginaw River. In addition to dredging, the O&M budget has: • $10.92 million set aside for dredged material maintenance • $19.58 million for lock operation and maintenance for Chicago, Black Rock and the Soo • $8.9 million for Soo Lock Asset Renewal • $9.57 million for floating plant repairs • $6.44 million for strike removal in the Detroit, St. Clair and St. Marys rivers • $1.1 million for Lake Michigan diversion accounting • $215,000 for Chicago Lock maintenance, including lighting replacement and upgrade • $250,000 for regional economic data collection • $250,000 for breakwater assessments in Duluth-Superior The team has also made plans for adds to the FY17 budget. Originally, spending was set for $102.7 million, as designated in the President’s Budget. Adds of $51.8 million bring fiscal year spending to $154.5 million. Increased funds of $10 million will enable more dredging in Cleveland and Buffalo and the addition of 11 smaller harbors, most of which have not been dredged in years. In addition to dredging, Calumet Harbor received $4.4 million for rock removal, Soo Locks asset renewal was boosted by $3.7 million and a variety of Great Lakes breakwater repairs were scheduled. For more details, go to www.lre.usace.army. mil/Missions/Great-Lakes-Navigation/. . Third phase of Interlake’s scrubber installations complete Mesabi Miner has become The Interlake Steamship Company’s fourth self-unloader outfitted with exhaust gas scrubbers. Interlake became the first U.S.-flag fleet to test freshwater scrubbers on the Great Lakes in April 2015 by pioneering emission-reduction technology on Hon. James L. Oberstar. In 2016, the company outfitted its first 1,000-foot vessel, James R. Barker, and the 826-foot Lee A. Tregurtha in the second phase of the upgrade. With the 1,004-foot Mesabi Miner back in service, Interlake has equipped nearly half of its nine-vessel fleet with scrubber systems to reduce emissions to a level that meets or exceeds North Alibaba looks to add food products to online marketplace The equivalent to America’s Amazon, Alibaba, hosted a meeting in Detroit, Michigan in June to communicate its plans to sell agricultural products on its online marketplace. The twoday event, called Gateway ’17, assembled about 1,000 U.S. food and agriculture companies to help them explore growth opportunities with Chinese consumers. Alibaba is a China-based online commerce company consisting of a marketplace, a search engine and a bank. Transactions on the site totaled $248 billion in 2016, more than eBay and Amazon.com combined, according to Alibaba. The growing standard of living in China and consumers’ desires to access U.S. products is being credited for the company’s success and plans for expanding product lines. It’s estimated that over half a million online shoppers in China wield nearly $1 trillion in spending power. With wine, dried fruits and grains already traded between the U.S. and China, Alibaba hoped Gateway ’17 would connect growers and processors with the team heading its move into agriculture commodities. . 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 April-June, 2017 7 REGIONAL CALENDAR D A T E L I N E American Emissions Control Area requirements. Fincantieri Bay Shipbuilding in Sturgeon Bay, Wisconsin handled the installations, equipping them with closed-loop systems. The scrubber units, which are attached to the exhaust system of each of the ship’s two engines, effectively strip the majority of sulfur from her stack emissions. Exhaust gas from the engine is sent through a series of absorption sprays that “wash” and remove impurities, specifically sulfur and particulate matter. That washed exhaust gas then travels through a droplet separator before a clean plume of white steam is discharged into the atmosphere. A fifth installation aboard the Paul R. Tregurtha will be done by 2018. . Algoma Central Corporation, Nova Marine Carriers create second partnership Algoma Central Corporation and Nova Marine Carriers SA have created a new joint venture to focus on short-sea dry bulk shipping for global markets. Operating as NovaAlgoma Short-Sea Carriers, or NASC, the 50/50 joint venture involves Nova transferring all short-sea commercial contracts to NASC and transferring its interest in NASC and its interests in any dry bulk vessels of less than 15,000 dwt to a newly formed entity, NovaAlgoma Short-Sea Holding Limited (NASH). To complete this transaction, Algoma has acquired a 50 percent interest in NASH from Nova. At closing, Algoma acquired an interest in the NASC commercial platform and its book of business and an interest in a fleet of 15 shortsea minibulkers ranging in size from 5,750 dwt to 14,700 dwt. Six of these vessels are wholly owned by NASH and the company has a 50 percent interest in the remaining nine vessels. The joint venture will be based in Lugano, Switzerland and has offices in Rotterdam and Sofia. . 19-20 Great Lakes Commission Annual Meeting Duluth Entertainment Convention Center Duluth, Minnesota www.glc.org 26-28 BWMTech North America Trump International Beach Resort Miami, Florida maritime.knect365.com/bwmtechnorth- america/ JULY 19-21 AAPA Port Security Seminar & Expo InterContinental Chicago Magnificent Mile Hotel, Chicago, Illinois www.aapa-ports.org AUGUST 2-4 Ohio Conference on Freight/Midwest Green Fleets Forum & Expo Hilton Columbus Downtown Columbus, Ohio www.ohiofreight.org 15-17 Midwest Specialty Grains Conference & Trade Show Hilton Omaha, Omaha, Nebraska www.grainconference.org SEPTEMBER 18-20 Association of Canadian Port Authorities Fairmont Waterfront Vancouver, British Columbia www.acpa2017.ca OCTOBER 17-19 Breakbulk Americas George R. Brown Convention Center Houston, Texas www.breakbulk.com NOVEMBER 14-16 13th Annual Hwy H2O Conference Toronto, Ontario www.hwyh2o.com 218.727.8525 | duluthport.com When it comes to international trade, there’s no stronger relationship than the connection between Canadian ports and the Port of Duluth-Superior. Nearly 20 percent of the iron ore, coal and grain shipped out of the Twin Ports each year is carried on Canadian vessels bound for customers in Ontario or to Seaway ports for transshipment overseas. Likewise, ships arrive here loaded with salt, cement or stone from Canada. What a great reflection of two-way trade on our binational marine highway. Great Reflection, Great Lakes Relationship The Great Lakes Towing Company A Quick Look Shifting trade patterns Investment and innovations Port improvements Infrastructure investments Infrastructure investment and product updates unfold a new story for iron, the volatile kingpin commodity of the Great Lakes/St. Lawrence Seaway shipping industry. Today’s iron ore story is a good news-bad news situation. Its historic role in the region has been tested in recent years. A downward spiral in the commodity’s value led to the 2015 idling and closure or reduced production at six U.S. iron ore mines. In 2016, nine mines and two plants remained in operation, according to the U.S. Geological Survey. Last summer, Cliffs Natural Resources shuttered its exhausted Empire mine in Michigan’s Upper Peninsula. The mine had been capable of producing 4.2 million tons of iron ore annually, sourced from the Marquette Iron Range. Product regularly shipped by freighter from Escanaba via Lake Michigan to industries in Chicago, Indiana and other points in the Midwest. Empire’s final load shipped out in April 2016 on the Wilfred Sykes, a 678-foot self-unloader operated by Central Marine Logistics. Looking at the early part of the 2017 season, tonnage totals released by The St. Lawrence Seaway Management Corporation show U.S. iron ore exports to Japan and China strong—up 70 percent over a year earlier. Shifting trade patterns. Escanaba was the only iron ore port on Lake Michigan. It had the distinction of allowing ore to ship earlier and later in the shipping season— after the Soo Locks closed. It also served as GREAT LAKES/SEAWAY REVIEW April-June, 2017 9 Good news, bad news Innovations, infrastructure and cautious optimism for the iron ore industry The new Mustang pellets are loaded onto the James R. Barker for shipment from Duluth-Superior to ArcelorMittal at Indiana Harbor. C O M M O D I T I E S Ports of Indiana an alternative for moving ore in the event the Soo Locks were damaged or shut down. Following the mine closure, Canadian National Railroad closed its Escanaba iron ore docks after 165 years of operation. “With Escanaba’s iron ore mine closing, more will be shipped out of Lake Superior and through the Soo Locks,” said Glen Nekvasil, Vice President of the Lake Carriers’ Association (LCA). “It makes the Poe Lock rebuild more important.” Cliffs’ Tilden operation near Ishpeming remains active with an annual pellet production capacity of 7.8 million tons. Product is transported by rail from the site to Cliffs’ ship-loading port along Lake Superior at Marquette, Michigan. Iron ore for steel production remains the U.S.-flagged fleet’s chief cargo. • In the first quarter of 2017, the fleet handled 3.5 million net tons compared to 2014’s weak first quarter, when 2.5 million net tons shipped, according to LCA. • Michigan and Minnesota shipped out 98 percent of the U.S. usable iron ore products produced 2016, according to U.S. Geological Survey. • Over the last five years, iron ore shipments on U.S.-flagged vessels averaged 44.5 million net tons annually. Ohio-based Cliffs Natural Resources, the oldest and largest independent U.S. iron ore mining company, relies on waterborne transport for all U.S. iron ore pellet shipments to its steel customers in the United States, Canada and Mexico. Company spokesperson Patricia Persico said the company will operate at full capacity in 2017. Projections call for this season’s production to climb to 21 net tons, a slight rise over 2016 volumes and a notable increase from 2015’s 19 million net tons documented in the company’s annual report. While the company has survived iron ore’s slide through major downsizing, weak market conditions prompted Cliffs’ 2014 announcement to shutter its Canadian operations, according to Persico. The U.S. and Canadian closures birthed a company reset. Cliffs’ wholly owned United Taconite plant at Forbes, Minnesota reopened in August 2016. The plant was shuttered for 12 months due to competition created by an increased volume of steel imports to the United States and reduced demand from customers. Persico said United Taconite has since recalled all 450 employees. Investment and innovations. Recovering iron ore and steel markets triggered Cliffs’ $65 million investment in reinventing its Forbes operation. Improvements to handling and processing operations allow for production of a new customized superflux taconite iron pellet for ArcelorMittal USA LLC, Cliffs’ largest customer. Beginning in June, the new “Mustang” pellet replaces the Viceroy pellet produced at its Empire facility. Mustang pellets move from the facility site by CN rail to loading ports at Duluth, Minnesota, also operated by CN. United Taconite’s annual production capacity is 5.4 million gross tons. It will produce both a standard pellet and the new Mustang. Under a 10-year contract, Mustang production will supply ArcelorMittal’s facility at Burns Harbor situated along Lake Michigan in Northwest Indiana. The Mustang is destined for ArcelorMittal furnace No. 7, the largest blast furnace in the United States. Developed through a Cliffs/ArcelorMittal partnership, Mustang pellets provide the advantage of converting from a solid to a liquid at a fast rate inside the blast furnace. This results in lower energy costs for the steelmaker as it produces flat rolled and plate steel for the automotive industry, according to the company. Production of the new pellet type is accompanied by a $75 million infrastructure investment by Cliffs at the United Taconite C O M M O D I T I E S 10 www.greatlakes-seawayreview.com SLSMC Mine. The new storage facility, silos, limestone crusher, conveyors and rail infrastructure were dedicated in late May, after nine months of construction. Cliffs continues to develop new pellet products for the electric arc furnace steelmaker market. Port improvements. ArcelorMittal is one of 15 steel-related companies operating at Burns Harbor, which serves Great Lakes ships, ocean vessels and river barges. It provides connections to five interstates and eight rail carriers. The port’s 2016 infrastructure investment of nearly $2.5 million supports increases in cargo tonnage, including iron ore. Improvements included dredging and adding stabilization stones to two berths, increasing the number of docks capable of handling full Seaway- draft vessels. To improve multimodal connections, the port replaced 2,000 feet of rail track and rehabilitated three rail turnouts. GREAT LAKES/SEAWAY REVIEW April-June, 2017 11 Iron ore for steel production remains the U.S.-flagged fleet’s chief cargo. The new Mustang pellets developed through a Cliffs Natural Resources/ArcelorMittal partnership convert from a solid to a liquid at a faster rate than more traditional Viceroy pellets. C O M M O D I T I E S Donjon Shipbuilding & Repair 12 www.greatlakes-seawayreview.com Manager for Ratner’s Indiana office. “We’ve gone from 100,000 square feet to 200,000. The increased capacity is phenomenal.” Ratner’s expansion calls for hiring up to 50 workers by 2019, including machine and crane operators. Upgrades included relocating equipment from its Minnesota operation and a building redesign to enhance efficiencies. Infrastructure investments. Stronger steel markets and port improvements are reflected in activity at Lake Superior’s Port of Duluth-Superior, the major U.S. iron ore handling port. A $2.8 million project, scheduled for completion by June, on the main iron ore terminal upgrades infrastructure and improves efficiencies for intermodal traffic. The port handled 14.7 million iron ore short tons in 2016, which accounted for 49 percent of the port’s total cargo. Cautious optimism surrounds projections for future growth in iron ore volumes. “We would expect iron ore shipments to increase during the 2017 shipping season as the forecast for steel demand is up and pellet production at plants in northeastern Minnesota is back on track,” said Vanta Coda, Duluth Seaway Port Authority Director. “As long as we keep a watchful eye on foreign steel dumping, the marketplace should continue to show improvement.” In Canada, market upswings in 2016 prompted iron ore production to increase 31.5 percent over 2015 volumes as a result of demand from China. The Port of SeptÎles is poised to capture new iron ore opportunities based on a large amount of public and private investments. Port of Sept-Îles sits along the north shore of the St. Lawrence River and provides transportation for iron ore sourced from the Labrador Trough in West Labrador and Northeast Quebec. In 2016, overall cargo handled at Sept-Îles increased slightly to a total of 25 million net tons, but iron ore shipments were a mixed bag. Iron Ore Company of Canada-Rio Tinto (IOC) increased shipments through the port by 4.5 percent. At the same time, shipments from Tata Steel Minerals Canada dipped more than 30 percent. Completed in 2015, the Pointe-Noire multi-user wharf provided new annual shipping capacity of 55 million net tons of iron ore. The C$220 million project was funded by the federal and Quebec governments and a consortium of five iron ore miners in the region: Alderon Iron Ore, Champion Iron Mines, Labrador Iron Mines, New Millennium Iron and Tata Steel Minerals Canada. Water depth at the dock accommodates bulk carriers with capacity as high as 400,000 deadweight tonnage. “The Ports of Indiana believe continued investment in our own port infrastructure produces a foundation for long-term growth for our port customers,” said Rich Allen, spokesperson for the Ports of Indiana. The port worked closely with Minnesotabased Ratner Steel Supply to forward the company’s $8.3 million expansion. Ratner receives raw materials by barge, handled by Federal Marine Terminal. All outgoing materials are transported by truck and rail. Port engineers assisted Ratner’s design team to ensure grading, drainage and utility requirements were met, and temporarily leased Ratner storage and office space during construction. Ratner produces carbon sheet steel for service centers and for manufacturing agricultural and transportation products. Upgrades double its Burns Harbor Portage footprint to better facilitate loading and unloading steel shipments. The site is producing near capacity at 25,000 tons per month. “Being in the port has helped us grow tremendously in the past five years,” said Dennis Szymanski, Vice President and General C O M M O D I T I E S KCBX Terminals GREAT LAKES/SEAWAY REVIEW April-June, 2017 13 Another landmark port project approved in 2016 primes the commodity’s growth. The Superior Court of Quebec approved the port’s acquisition of 1,005 acres from Wabush Mining, a Cliffs company. The tract sits near three port facilities—Pointe- Noire dock, Relance dock and the new multi-user dock. The government of Quebec, along with Pointe-Noire Railway and Port Authority (SFPPN), also acquired additional Wabush assets. The port and SFPPN entered a longterm agreement to develop Pointe-Noire. The port will collaborate with the Quebec government, which now owns the land, equipment and rights associated with rail, storage, pelletizing and transshipment in the Pointe-Noire sector. Agreements call for linking the ore storage areas with the facilities on the multi-user dock. The long-term viability of the region’s iron ore industry brightens with the planned 2018 opening of IOC’s Wabush3 open pit mine located adjacent to its Luce pit at West Labrador. IOC’s new pit calls for a C$79 million investment. Wabush3 is expected to increase IOC production volume by 5.5 million net tons and extend the life of its Carol Project operations 12 years. Total ore output from its new and four existing Carol Project pits should increase to 25 million net tons as a result of the investment. The Wabush3 project leverages use of existing maintenance, ore delivery, processing and tailings management facilities. The new pit provides ease of extraction, according to the company, resulting in lower costs, which is expected to hedge market fluctuations. While investment establishes continuity for iron ore markets and unfolding potential for marine transport, reality is defined as much by uncertainty. Iron ore prices continue to fluctuate with inventory and demand. Duluth-Superior’s Coda acknowledges what ports and shippers have long dealt with: “There really is no long-term predictability with regard to price and volume in the commodities world.” Sally Barber . In Canada, market upswings in 2016 prompted iron ore production to increase 31.5 percent over 2015 volumes as a result of demand from China. KCBX Terminals in Chicago is one of the most modern, efficient and customer-orientated direct transfer terminals in mid-continent North America. Located on the Calumet River at mile-marker 330.1, KCBX is capable of receiving cargo from river barges and rail cars, including access to all Class 1 Railroads though the Indiana Harbor Belt Railway. We transfer cargo directly to outbound river or lake barges and lake vessels. If you need to transport coal, petroleum coke, or any other dry bulk commodity almost anywhere in world, contact KCBX today. DOCK SITE: 10730 South Burley Ave. (just south of the 106th bridge on the Calumet River) Chicago, Illinois 60617 • 773-375-3700 TERMINAL MANAGER: Peter Rotundo • 773-978-8314 • rotundop@kochind.com CHICAGO’S PREMIUM COAL, PETROLEUM COKE, AND DRY BULK TRANSLOADING TM KCBX TERMINALS COMPANY SOURCE: ROGER LELIEVRE C O M M O D I T I E S The Great Lakes Seaway Partnership E X E C U T I V E R O U N D T A B L E GREAT LAKES/SEAWAY REVIEW April-June, 2017 15 Discussing maritime transportation Ohio seeks to further integrate maritime into its focus on intermodal commerce Federal legislation—the Safe, Accountable, Flexible, Efficient Transportation Equity Act—requires U.S. states to develop statewide transportation plans. The outcome is intended to provide a technical resource to guide decision-makers as they consider the importance, role and development of each state’s transportation infrastructure. Great Lakes/Seaway Review convened an Executive Roundtable to interact with leaders from Ohio regarding the role maritime transportation plays or should play in the state’s transportation plan and its economic development. Elected officials and organization executives who accepted our invitation are: Ohio State Senator Gayle Manning; Director of State Policy, Ohio Farm Bureau Federation, Tony Seegers, Esq.; Ohio State Representative Michael Sheehy, 46th District; Ohio State Representative Kent Smith, 8th District; Lt. Gov. of Ohio, Mary Taylor; Deputy Director Division of Planning, Ohio Department of Transportation, Jennifer Townley. Ozinga Great Lakes/Seaway Review: To help with introductions, please briefly explain your role in Ohio’s transportation sector, including any involvement or experience you have with maritime commerce. Manning: During my time in the Ohio Senate, I have worked to develop Ohio’s maritime transportation policies. I have served as Chair of the Senate Transportation Committee during the 130th and 131st General Assemblies, and as a legislative appointee to the Ohio Turnpike and Infrastructure Commission. Seegers: I am one of two directors of state policy for the Ohio Farm Bureau Federation. This means I advocate for our members with the state legislature and state executive agencies. Agriculture is Ohio’s number one industry and so Ohio Farm Bureau has a great interest in the transportation infrastructure of our state, be it overland or through our waterways. Sheehy: As ranking minority member of the Ohio House of Representatives Transportation and Public Safety Committee, I am uniquely situated to make a contribution to facilitate maritime commerce in Ohio. Forty years experience in rail transportation at the Toledo Dock and Northwest Ohio Terminal location has provided me with an intimate knowledge of the workings and the challenges of maritime shipping. Smith: I represent Ohio’s 8th House district which includes the City of Euclid, Ohio’s 19th largest city. Euclid borders Lake Erie and has approximately 5 miles of coastline. Having grown up in Euclid, I have a keen interest in keep the Great Lakes great. I am a member of the Great Lakes Legislative Caucus, which is a collection of legislators from eight U.S. states and two Canadian provinces. Taylor: As Lt. Governor, I help oversee Ohio’s state government, including our Department of Transportation. As it relates more specifically to maritime transportation, I am Ohio’s representative to the Conference of Great Lakes and St. Lawrence Governors and Premiers. In that role, my office has worked closely with our delegates to the Conference’s Maritime Task Force in helping to coordinate Ohio’s participation, as well as the ongoing maritime study being conducted partly in response to the conference’s work. Townley: The Ohio Department of Transportation’s role is to foster and support a comprehensive transportation system comprising all modes. Ohio is fortunate to have E X E C U T I V E R O U N D T A B L E 16 www.greatlakes-seawayreview.com State Sen. Gayle Manning is serving her second term in the Ohio Senate where she represents the residents of Huron and Lorain counties. She is current Majority Whip and Vice Chair of the Senate’s Finance Committee. She also sits on the Senate’s Education Committee; Local Government, Public Safety, and Veteran Affairs Committee; Rules and Reference Committee; and Transportation, Commerce and Workforce Committee. Ohio’s easy access to several of the nation’s largest freight hubs makes maritime transportation an industry with unlimited potential. American Great Lakes Ports Association direct access to Lake Erie and the Great Lakes to connect to domestic and international markets. Maritime access gives the state’s freight network an added dimension and Ohio a strategic advantage over many other states without water. By utilizing the State of Ohio’s FAST Act compliant freight plan, “Transport Ohio,” we launched a statewide maritime study to learn more about the capabilities of the system. This study is looking at existing and future opportunities to keep Ohio competitive and goods flowing. The Ohio DOT is also a partner with the binational Conference of Great Lakes and St. Lawrence Governors and Premiers. Great Lakes/Seaway Review: How important is maritime commerce to the state’s economy? Manning: Ohio has 736 miles of navigable waterways, including nine commercial ports on Lake Erie and along the Ohio River. The state has the nation’s fourth largest maritime system and ranks eighth in terms of total water tonnage moved. Maritime transportation is a significant contributor to Ohio’s economy, but much opportunity for growth still exists. Seegers: Overall, maritime commerce is immensely important to Ohio’s economy. According to the Ohio Department of Transportation (ODOT): • Ohio’s maritime ports and river terminals handle over 103 million tons of commodities valued at $11 billion per year. • The Lake Erie system is responsible for 40.6 million tons of commodities valued at $3.6 billion moving to, from and within Ohio. • The Ohio River system is responsible for 63 million tons of commodities valued at $7.4 billion moving to, from and within Ohio. Sheehy: Working at the Port of Toledo was my earliest recognition that the Port of Toledo, like port cities on the northern tier of Ohio, was a maritime connection to every major port in the world. Maritime commerce allows agriculture commodities, as well as industrial goods, to move freely and economically. The tons of goods and commodities which move economically over water reduce stress on others modes of transportation. The maritime connection is very important to Ohio’s economy. Smith: Ohio’s maritime commerce is connected to its strong freight delivery system that includes roads, railroads, air and waterways. Ohio has 265 miles of coastline, nine commercial ports on Lake Erie and is E X E C U T I V E R O U N D T A B L E GREAT LAKES/SEAWAY REVIEW April-June, 2017 17 Tony Seegers, Esq., is Director of State Policy for the Ohio Farm Bureau Federation. Prior, he was a policy director at the Ohio Chamber of Commerce, an attorney with Wright Law Company and an assistant attorney general and legislative aide in both the Ohio Senate and House. With the continued need for road infrastructure repair, I believe we can expect to see an increase in maritime transportation of goods. Advocacy. promoting public policies that foster maritime commerce on the Great Lakes-Seaway system for membership information visit: www.greatlakesports.org Chicago Dry Dock 18 www.greatlakes-seawayreview.com State Rep. Michael P. Sheehy is serving his second full term, having been appointed in mid-2013. Ohio District 46 includes the cities of Oregon, Maumee, parts of Toledo and the Village of Holland. He is a member of the committees on Agriculture and Rural Development, Economic Development, Commerce and Labor, and Community and Family Advancement. He serves as the ranking member in the Transportation and Public Safety Committee and is a member of the Ohio Rail Commission and the State Council on Educational Opportunity for Military Children. State Rep. Kent Smith was elected to the 8th Ohio House District in 2014 and reelected in 2016. He serves as the Ranking Democrat on the Financial Institutions, Housing and Urban Development Committee. He is a member on the Education and Career Readiness, High Education and Workforce Development and Public Utilities committees. He serves on the Great Lakes Legislative Caucus and the National Caucus of Environmental Legislators. CUSTOM | PRINT | DIGITAL | MOBILE 221 Water Street, Boyne City, MI 49712 USA (800) 491-1760 • FAX: (866) 906-3392 • harbor@harborhouse.com Order online at: www.greenwoodsguide.com • Full-color throughout • Spiral bound • 28 tabs for quick, easy reference • Information updated annually for accuracy and integrity The most detailed guide to Great Lakes shipping available Book $75.00 plus shipping CD $65.00 includes shipping PDF $45.00 downloadable online App $9.99 available on the iOS App Store All New Edition Ohio’s three most pressing infrastructure needs are: highway infrastructure upgrades, maintaining freight and rail systems and maritime infrastructure upgrades. While they are not in Lake Erie, the Soo Locks in Lake Superior are also critically important to the national security of the nation and the Great Lakes economy. eighth in the nation for total water tonnage moved. The Lake Erie system is responsible for 40.6 million tons of commodities valued at approximately $3.6 billion. Great Lakes shipping supports 28,000 Ohio jobs. Taylor: Maritime commerce is highly important to Ohio’s economy, as well as to the economy of the broader Great Lakes region. Ohio ranks eighth in the nation for total water tonnage moved and our ports handle goods valued at more than $11 billion each year. All of that product represents economic activity and is important to both the maritime industry moving the goods and the customers they serve. Regionally, maritime contributes more than $30 billion and accounts for 220,000 jobs in the U.S. and Canadian economies. Townley: The maritime system is very important to the State of Ohio and its economy. It is an economic advantage for Ohio to have access to its waterways. The overarching objective of the Ohio maritime study is to inform the state as it seeks to best leverage Ohio’s maritime transportation system (MTS) to enable Ohio’s economic competitiveness and growth. ODOT’s statewide maritime study has found that Ohio’s “ports, terminals and docks that provide connectivity to Ohio’s MTS handle between 80 million and 100 million short tons of freight per year (2011- 2015), valued at over $12 billion (2015).” (Working Paper 1 – Ohio’s Maritime Transportation System) Great Lakes/Seaway Review: What trends are you seeing with Ohio’s maritime commerce? Do you expect it to increase or decrease—and why? Manning: Affordability has led to an uptick in maritime freight shipping, and I anticipate the trend to continue. As the state’s economy improves we must expect increased demand for all forms of freight transport, including maritime. Ohio’s growing economy will require access to maritime freight facilities. Because manufacturing is an important contributor to Ohio’s economy, maritime transport will be a necessary factor in advancement in this area. Seegers: Regarding grain, oil seed and other types of commodities, there has been an increase in the last several years of exports from Ohio. With the continued need for road infrastructure repair, I believe we can expect to see an increase in maritime transportation of goods. Sheehy: Recent demands in the energy industry have reduced the demand for delivery to some power plants on the Great Lakes. However, demand for commodities from agriculture and other industries continues to grow. I do not anticipate any reduction in maritime commerce in the future. Smith: While freight volumes are projected to rise in Ohio in all forms (road, rail, air and water), marine facilities on Lake Erie operate at less than capacity. Greater investment in harbor dredging and port maintenance is needed. Taylor: We are currently in the midst of conducting the Maritime Strategy Study in Ohio, in part to identify those trends and position our state to capitalize on it. However, it’s reasonable to anticipate a positive trend given all the growth opportunities that exist, such as unused capacity within the Great Lakes/St. Lawrence Seaway system and new market opportunities Townley: Ohio’s maritime system feeds a variety of industries with the raw materials essential for manufacturing. Keeping Ohio’s supply chain and logistics competitive through lower transportation costs will attract and retain business and industry. The ports are responding by offering a variety of solutions to move cargo. ODOT is optimistic about Ohio’s maritime future. Great Lakes/Seaway Review: Please briefly name Ohio’s three most pressing infrastructure needs for the Strategic Transportation System and how they are being addressed. Manning: I have advocated for the creation of a strategic statewide infrastructure plan based on traffic volume and connections within the system as a whole. This approach will allow for improvements in areas in the worst condition, while still ensuring that no tax dollars are being wasted. Seegers: In general, from Ohio Farm Bureau’s perspective, we need to continue to ensure our ports are accessible for trade. In addition, our road and bridge system is a vital asset for the economy of our state and country but is in need of repair. Sheehy: Ohio’s three most pressing infrastructure needs are: highway infrastructure upgrades, maintaining freight and rail systems and maritime infrastructure upgrades. The highway system in the U.S. has been the greatest success story in the transportation sector since World War II. We are now in a renaissance to renovate those infrastructures. Similarly, the rail sector in the U.S. is in a continuous renovation process. Ports and shipping channels need to be maintained and upgraded as well. Smith: Four things come to mind. No. 1 is the dredging of Ohio’s nine commercial ports. This is an ongoing need. The most critical project for the Port of Cleveland is strengthening the Irishtown Bend curve of the Cuyahoga River. The hillside is collapsing into the Cuyahoga River and it could severely compromise, or even completely block, the Cuyahoga shipping channel. Millions of dollars in bulkheads need to be dropped into the river at Irishtown Bend to protect against the unsteady hillside. The most pressing need on the Ohio River is the aging lock and damn infrastructure. While they are not in Lake Erie, the Soo Locks in Lake Superior are also critically important to the national security of the nation and the Great Lakes economy. Rebuilding the locks is important to the U.S. economy, as all iron ore comes via Minnesota. Taylor: In terms of specific priority projects, it’s premature to answer this question. The study will help the state identify projects that have significant needs and/or economic development potential, which will then inform the prioritization decisions by policymakers. Townley: Ohio, and the nation, are concerned with keeping the locks and dams system healthy, including the Soo Locks. In addition, there are dredging needs to keep the Great Lake channels deep enough for commercial navigation and proper disposal areas are also of critical need. Great Lakes/Seaway Review: Ohio is currently conducting the Maritime Strategy Study. How will the information be used and distributed? Manning: The state has put forth several initiatives in recent years to help improve the maritime industry. In an effort to better understand the nuances of Ohio’s statewide freight transportation network, the Ohio Department of Transportation has been conducting the Maritime Strategy Study. The information acquired from the study will be used to reform Ohio’s freight model and drive more strategic investments for improving Ohio’s access to national and international markets. Seegers: I am not certain how the information will be used or distributed, but I hope it is used by policymakers when looking at our current and future transportation needs. Sheehy: When finished, the Maritime Strategy Study will be released through media resources throughout the world. Smith: The Ohio Department of Transportation is currently conducting the Maritime Strategy Study (MSS) in partnership with CPCS Transcom Limited consultants under the direction of the U.S. Department of Transportation. The MSS is scheduled to be finished in early 2018. It will include information about how to boost regional competitiveness and economic develop- E X E C U T I V E R O U N D T A B L E GREAT LAKES/SEAWAY REVIEW April-June, 2017 19 DNV-GL ment. It will also address the requirements of the regions shippers and receivers. The study is hoped to answer three questions: 1) What assets and services compose Ohio’s maritime transportation system (MTS)? 2) Who are the existing and potential users of the MTS? and 3) What are options for ODOT’s role in maritime freight transportation, including policies, plans and actions? Taylor: The maritime study has been designed to maximize the input we get from stakeholders and then provide the information as broadly as possible to assist decision- makers. The study is intended to complement Ohio’s statewide freight plan as well as the Great Lakes Governors and Premiers’ maritime report, therefore assisting policymakers at all levels in making decisions about transportation infrastructure. At the same time, we recognize that because of jurisdictional issues, as well as private ownership of the majority of maritime assets, many of the decisions related to the industry and its infrastructure fall outside of the Ohio government. As a result, it’s even more important that our study be shared as widely as possible to better ensure the usefulness of the information it contains. Townley: A series of stakeholder interviews were and are being conducted and information is being shared. The working papers as completed are being posted to http://www.dot.state.oh.us/Divisions/Planning/ SPR/StatewidePlanning/Pages/Maritime_ Freight_Program.aspx. The study has a steering committee comprising representatives for Governor, Lt. Governor, JobsOhio, Development Services Agency, Ohio Rail Development Agency and ODOT, which is briefed and provides guidance to the study. Great Lakes/Seaway Review: Is it possible the study will include grant options for seaport infrastructure and capital improvements and other ways such programs could be funded? Manning: One of the intents of the study is to identify methods to further develop the existing maritime network and explore new ways of funding needed improvements. Considering this goal, it is certainly possible that the study will include grant options for infrastructure improvements. Sheehy: I believe it is imperative that these opportunities exist. Taylor: It’s probably too early to answer that question definitively. We all recognize that addressing our infrastructure needs re- E X E C U T I V E R O U N D T A B L E 20 www.greatlakes-seawayreview.com Lt. Gov. Mary Taylor was elected as Ohio State Auditor in 2006, following two terms in the legislature representing the 43rd District. She was sworn in to serve as lieutenant governor in 2011 and is fulfilling her second term alongside Gov. John Kasich. As Ohio’s 65th Lieutenant Governor, Taylor leads Ohio’s Common Sense Initiative to reform the state’s regulatory policies. She served as the Director of the Ohio Department of Insurance from 2011 to 2017. We all recognize that addressing our infrastructure needs requires a commitment of resources. Toledo Lucas County Port Authority quires a commitment of resources. However, the study itself is intended to be more of an inventory of assets and identification of strengths, weaknesses, opportunities and threats. This will certainly make the study a tool for determining funding allocations, but we don’t intend to make funding decisions within the study itself. Townley: At this time, the study is focused on assessing existing and future opportunities to keep Ohio competitive and goods flowing. The study will answer: • What assets and services compose Ohio’s maritime transportation system? • Who are the existing and potential users of Ohio’s maritime transportation system? • What are the options for ODOT’s role in maritime freight transportation, including policies, plans and actions? Great Lakes/Seaway Review: Has adding a maritime representative to the Department of Transportation helped Ohio develop waterborne commerce? If so, how? Manning: Yes, appointing a maritime representative to the department has provided the industry with a direct advocate during important conversations and policy- development initiatives. Sheehy: Only time will tell if the new maritime representative to the Department of Transportation will help Ohio’s waterborne commerce. The current recognition of the need for a maritime representative is a positive first step in recognizing the importance of maritime commerce. Taylor: The maritime representative does make a big difference, based on what I hear from the industry. Giving them a point of contact within the agency helps ensure they have a place to get their issues resolved and the industry has a voice in policy decisions made by the state. More broadly, Mark has been our point person working with the Great Lakes Governors and Premiers and working on Ohio’s maritime study. So clearly, the position is instrumental both for the immediate needs of our maritime industry and for the longterm positioning of maritime in Ohio. Townley: Yes. Having a maritime contact at ODOT provides the maritime industry a person to coordinate and share best practices, information, opportunities and someone who can advocate for the maritime mode. ODOT’s maritime contact also enables the agency to coordinate with U.S. DOT on a variety of issues and participates on the Marine Transportation System National Advisory Committee. E X E C U T I V E R O U N D T A B L E GREAT LAKES/SEAWAY REVIEW April-June, 2017 21 Jennifer Townley has been employed with the Ohio Department of Transportation for 27 years, serving in various capacities and on numerous committees. She currently serves as Deputy Director of the Division of Planning, which includes the offices of Asset Inventory & Systems Integration, Environmental Services, Local Programs, Program Management, Statewide Planning & Research, Technical Services and Transit. Keeping Ohio’s supply chain and logistics competitive through lower transportation costs will attract and retain business and industry. Adonis 22 Great Lakes/Seaway Review: What do you see as the greatest hindrances to growing waterborne commerce, i.e. policies, infrastructure, etc.? What do you suggest be done to address them? Manning: Even considering its quantifiable growth, the maritime commerce industry in Ohio has faced formidable obstacles. My district has seen the effects of these challenges firsthand in Huron and Lorain counties, both of which are in the Lake Erie region. The entirety of Lorain County’s northern border is the Lake Erie shoreline. Maintenance of Ohio’s waterways, including the lock and dam system, is important for the economy and for those looking to enjoy recreational opportunities on the water. Dredging in the Lake Erie ports and excess capacity throughout Ohio’s waterways are issues relevant to all of Ohio and particularly my district. Seegers: One of the most pressing issues facing waterborne commerce is our aging locks and dams that were built in the 1920s and 1930s. We cannot expect an 80- to 90- year-old system to handle the demand of the 21st Century economy, which includes 60 percent of exported U.S. grain. Sheehy: Failure to embrace a business culture which celebrates and embraces free and fair trade is the greatest hindrance to waterborne commerce. Smith: If federal funding becomes scarce, Ohio must fill the gap to keep the Lake Erie shipping industry open for business. While my attention is first focused on the Cleveland port, Toledo—with its intersection of shipping, rail and major freeways—will be increasingly significant for a wide variety of industries. Congress restricts the spending of the Harbor Maintenance Tax revenue, which results in a maintenance backlog. More funding is always welcome, but greater flexibility is also needed. Taylor: Historically, the biggest hindrance has been the lack of a statewide strategy to focus on the needs and opportunities of this industry, including how it fits into other sectors of the economy and other infrastructure strategies. Ohio is well on its way to addressing this, both through our commitment to use transportation investment as an economic development tool and to make decisions about those investments based on a long-term, integrated strategy. Townley: The greatest hindrance is having a comprehensive statewide strategy to interconnect Ohio’s water ports with the larger transportation system. ODOT is addressing this by a developing a statewide freight plan (Transport Ohio) and a statewide maritime study, which will provide guidance on ODOT’s role. Great Lakes/Seaway Review: Do you have any additional comments? Manning: Ohio’s easy access to several of the nation’s largest freight hubs makes maritime transportation an industry with unlimited potential. Support and growth of this industry will be of incredible benefit to my district, the State of Ohi

Maritime Editorial