Vol.46 No.1 JUL‑SEP 2017

V O L U M E 4 6 J U L Y – S E P T E M B E R 2 0 1 7 N U M B E R 1 New lock technology expands access . Summarizing NAFTA negotiations . LNG fuel use picks up G LGREAT LAKER 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 Bulk, General & Project Cargo Experts 2 THE INTERNATIONAL MARITIME MAGAZINE OF THE GREAT LAKES/ST. LAWRENCE SEAWAY SYSTEM VOLUME 46 JULY-SEPTEMBER 2017 NUMBER 1 Business and Editorial Office 221 Water Street Boyne City, Michigan 49712 USA (800) 491-1760 FAX: (866) 906-3392 harbor@harborhouse.com www.greatlakes-seawayreview.com EDITORIAL AND BUSINESS STAFF Jacques LesStrang Publisher Emeritus Michelle Cortright Publisher Janenne Irene Pung Editor Cris Shankleton Creative Director 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 Candi Wynn Account Executive 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, Board Chair, Chamber of Marine Commerce; 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 V O L U M E 4 6 J U L Y – S E P T E M B E R 2 0 1 7 N U M B E R 1 New lock technology expands access .. Summarizing NAFTA negotiations .. LNG fuel use picks up G LGREAT LAKER Raising maritime awareness Honoring Alastair Guthrie’s impact GREAT LAKER V O L U M E 4 6 J U L Y- S E P T E M B E R 2 0 1 7 N U M B E R 1 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: Working the anchor aboard a laker. Great Laker Cover: A view of Detroit from the Paul R. Tregurtha. GREAT LAKES/SEAWAY REVIEW July-September, 2017 3 The international maritime magazine of the Great Lakes/St. Lawrence Seaway system Hands-free mooring expands international and domestic vessel access. Page 9. Maritime academies teach a combination of old and new navigation techniques. Page 47. A Lorain-built freighter turns 45. Page 70. A R T I C L E S Maritime Heritage SHIPPING IN THE MOTOR CITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62 Detroit/Wayne County Port Authority seeks to raise the city’s maritime profile. Shipbuilding History 125 YEARS OF SHIPBUILDING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .64 Fraser Shipyard donates historic documents for public use, research. Legends ALASTAIR GUTHRIE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66 An artist at brokering cargo movements. Great Lakes People CAPTAIN ALICE CHANEY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69 First female passes exam and is issued pilot’s license on Great Lakes. Meet the Fleet CELEBRATING LAKERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70 Lorain-built freighter turns 45. Technology GLOBAL ALIGNMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Hands-free mooring expands opportunities for international business growth. Trade Patterns RENEGOTIATING NAFTA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 U.S., Canadian firms collaborate in analysis of pending change. Interview NEGOTIATING A NEW DEAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21 After decades of successful contracts, Wayne Smith puts together his retirement plan. Terminals PROMOTING LONG-TERM GROWTH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27 Investments at port terminals to streamline system efficiencies. Admiralty Law OILY WATER SEPARATOR CASE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30 Rare pretrial dismissal for UTV Victory engineers. Marine Photography GROWTH IN CONTAINERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32 Cleveland-Europe Express provides key connections for regional manufacturers. Propulsion LNG FUEL USE PICKS UP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 Technology creates mobile, temporary and permanent options for fueling. Interview LEANING ON KNOW-HOW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39 System captains navigate vessels through heightened currents. Economic Development INTERMODAL CONNECTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41 How to maximize the region’s economic development through transportation. Training & Recruitment OLD SCHOOL, NEW SCHOOL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47 Academies teach a combination of navigation techniques. Technology PRECISION CLEARANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53 Use of dynamic under-keel clearance technology on the St. Lawrence River. J U L Y- S E P T E M B E R 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 Great Lakes Ports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Guest Editorials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45, 51, 59 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/ Print Digital Mobile GREAT LAKES/SEAWAY REVIEW July-September, 2017 5 Mark “Buz” Buzby sworn in as new Maritime Administrator Rear Adm. Mark Buzby was sworn in as U.S. Maritime Administrator August 8. Prior to his appointment, Buzby served as President of the National Defense Transportation Association, a position he has held since retiring from the U.S. Navy in 2013 with more than 34 years of military service. “I grew up on the water, piloting vessels from the time I was nine years old, and have a lifelong love for the sea,” Admiral Buzby said. “It is one of the great honors of my life to serve as Maritime Administrator, and to start working to grow and revitalize the U.S. Merchant Marine and ensure our nation continues its maritime leadership.” A 1979 graduate of the U.S. Merchant Marine Academy, Buzby earned his Bachelor of Science in Nautical Science and U.S. Coast Guard Third Mate License. He was commissioned in the Navy in June 1979, is a graduate of the Joint Forces Staff College and holds master’s degrees from the U.S. Naval War College and Salve Regina University in Strategic Studies and International Relations respectively… Detroit port authority names Interim Executive Director The Detroit/ Wayne County Port Authority (DWCPA) is under new leadership. With the departure of John Loftus, Kyle Burleson has been named Interim Executive Director. He formerly served as Deputy Director. Burleson was named to the interim position August 1 and will serve in it until the board of directors names a permanent replacement, which is expected to happen by February 1, 2018. Delorean Holmes, former economic development manager for the port authority, is now serving as Interim Deputy Director. Prior to joining DWCPA, Burleson acted as Legislative Director in the office of Congresswoman Candice Miller, where he handled a legislative portfolio consisting of judicial, energy and environmental issues. .. Corps of Engineers releases tentative plan in Brandon Road study With the release of the Great Lakes and Mississippi River Interbasin Study – Brandon Road Draft Integrated Feasibility Study and Environmental Impact Statement, a window for public comment is open. The study looks at options and technologies that could be used at the Brandon Road lock in Jolliet, Illinois to keep aquatic invasive species from migrating from the Mississippi River system into the Great Lakes— while minimizing impacts to existing waterway uses and users. The tentatively selected plan released in August is the Technology Alternative – Complex Noise with Electric Barrier, which includes the following measures: nonstructural measures, complex noise, water jets, engineered channel, electric barrier, flushing lock, boat launches and mooring area. The goal will be to optimize alternative effectiveness while minimizing safety impacts. The map below shows locations of key features, or measures, of the tentatively selected plan at Brandon Road Lock and Dam. Descriptions of nonstructural and structural control measures included in the tentatively selected plan follow. For more information, please go to glmris.anl.gov/brandon-rd/. .. Dennis “Doc” Mahoney retires After 24 years with World Shipping, Inc, Dennis “Doc” Mahoney has retired from his position as Vice President, Operations. “Over his long career, Mahoney has assembled an unrivaled reputation for his passion and devotion to building our Vessel Operations Division into what it is today,” said Frederick Hunger, World Shipping’s CEO. “The industry as a whole has been the true beneficiary of his talent. We wish him and his wife Debbie all the best as they enjoy the fruits of retirement.” Mahoney worked in the maritime industry for over 40 years and has spent his career as a vessel agent with Great Lakes Overseas, worked as a stevedoring foreman at Great Lakes International and managed the Cleveland office of Fedmar International. Since 1993, he has lent his talents to the World Shipping team. Mahoney enjoyed the diversity of the job, stating: “It takes an appreciation and understanding of what it takes to get the job done to realize the importance of everyone’s role.” .. 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 Sen. Baldwin named Great Lakes Legislator of the Year Wisconsin Sen. Tammy Baldwin (D) has been named 2017 Great Lakes Legislator of the Year by the Great Lakes Maritime Task Force (GLMTF). The honor is given to one legislator annually who has helped advance waterborne commerce on the Great Lakes/St. Lawrence Seaway. “Sen. Baldwin’s first term in the Senate has been remarkable for her understanding of and commitment to shipping on the Great Lakes and St. Lawrence Seaway,” said Brian D. Krus, President of GLMTF in 2017. “Her grasp of the issues and, more importantly, her response to the challenges facing shipping on the Fourth Sea Coast has been instrumental in moving several projects forward.” Baldwin has supported efforts to build another heavy icebreaker for the Great Lakes and has a keen interest in international trade to and from the Great Lakes via the St. Lawrence Seaway and investing in regional shipbuilding. With her selection as Great Lakes Legislator of the Year, Sen. Baldwin becomes the fourth Wisconsin legislator to receive the award since its inception in 1998. Previous recipients are Sen. Ron Johnson (R), Rep. David Obey (D) and Rep. Mark Green (R). .. Rear Adm. Mark Buzby Sen. Tammy Baldwin Kyle Burleson Van Enkevort returns ATB to original name Van Enkevort Tug & Barge held a renaming celebration with 168 guests in Cleveland, Ohio in August. While the Clyde S. Van Enkevort/Erie Trader has sailed as an articulated tug-barge since March, the official renaming had special meaning for the family-owned business—returning the vessel to the name given during its construction. With the sale of the ATB to Seajon while under construction, the units were christened Ken Boothe Sr./Lakes Contender at Donjon Shipyard in 2012. The duo was chartered by American Steamship Company until purchased by Van Enkevort Tug & Barge recently. Clyde S. Van Enkevort is the founder of the company and a pioneer in integrated tug/barge design. He died February 20, 2016, making the renaming a tribute to him and recognition of the company’s 50th anniversary. .. 6 www.greatlakes-seawayreview.com D A T E L I N E Canadian taxpayer. • Thirdly, Federal Fleet Services, Davie sister company, will operate the ship with a mixed crew of merchant seafarers and Royal Canadian Navy personnel. .. Minister Garneau extends St. Lawrence Seaway agreement Marc Garneau, Minister of Transport, announced a five-year extension to the Government of Canada’s agreement with the St. Lawrence Seaway Management Corporation (SLSMC) to manage, maintain and operate the Seaway. This extends the existing agreement until March 31, 2023 and will provide stability for the SLSMC and the marine shipping industry. “We look forward to our continued collaboration with the St. Lawrence Seaway Management Corporation to ensure this strategic transportation corridor remains competitive now and in the future,” Garneau said. To ensure the Seaway continues to be positioned as a critical transportation corridor for North America, Transport Canada will conduct a review to examine further opportunities for increased economic and commercial development, the waterway’s competitiveness and sustainability and the Seaway’s governance structure. .. Burns Harbor handles world’s largest liquid argon particle hunter ICARUS, the world’s largest liquid argon particle hunter, arrived at the Port of Indiana-Burns Harbor aboard M/V Frieda to complete the maritime portion of its trip from Europe. The equipment was then moved to its final destination, the U.S. Dept. of Energy’s Fermi National Accelerator Laboratory (Fermilab) in Batavia, Illinois. The hunter, the size of two semi-trucks, is used by particle physicists to study neutrinos, among the smallest building blocks in nature and by far the most abundant particles in the universe. It will be used for some of the most advanced science experiments in the world. ICARUS was separated into two identical pieces before being loaded onto the Frieda in Antwerp, Belgium. When the two containers, each 66 feet long and weighing 63 tons, arrived at Burns Harbor, they were transloaded by the ship’s cranes directly onto over-sized truck trailers. A neutrino detector, ICARUS’ job is to observe and record the results of neutrino collisions with particles of matter set in motion by another scientific instrument, an accelerator. By studying how neutrinos interact, scientists hope to understand more about the universe at the smallest scale. Reassembly at Fermilab was followed by filling the equipment with 760 tons of liquid argon. .. Cargo tonnage up for 2017 season Efforts to diversify and expand cargo routes are contributing to a 13 percent increase in yearto- date cargo shipments via the St. Lawrence Seaway, according to the Chamber of Marine Commerce. Statistics released by The St. Lawrence Seaway Management Corporation show total cargo tonnage from March 20 to August 31 reached 19.9 million metric tons—2.3 million metric tons more Davie Shipbuilding completing largest naval ship built at a Canadian yard Davie Shipbuilding’s construction of the Asterix, the first large naval ship to be built in Canada in over 20 years, represented a two-year build for the company’s 1,369 staff and more 900 Canadian suppliers. The Resolve-Class naval support ship will enter into service with the Royal Canadian Navy by the end of this year. The ship will be the largest naval platform in service with the Royal Canadian Navy for the foreseeable future and will provide a wide range of functions from at-sea replenishment of fuels and cargo to aviation support, fleet medical support and humanitarian and disaster relief. This program involves three levels of innovation for Canada allowing the delivery of a most needed ship in a timely manner and with the best value for Canadian taxpayers. • Firstly, instead of building a ship from new, a modern containership has been converted into a state-of-the-art naval support ship. • Secondly, the ship has been privately financed by Davie and will be leased to Canada— which means a fixed, transparent cost to the 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 REGIONAL CALENDAR GREAT LAKES/SEAWAY REVIEW July-September, 2017 7 REGIONAL CALENDAR D A T E L I N E compared to the same period in 2016. “Our bread and butter cargoes remain raw materials such as iron ore, grain, and road salt that keep North American factories running, feed cities, and ensure that our highways are safe. As well, the Great Lakes/Seaway system continues to make significant inroads at attracting high-value general cargo such as specialty steel, machinery and oversized project cargo,” said Terence Bowles, President and CEO of The St. Lawrence Seaway Management Corporation. Year-to-date, shipments of high-value general cargo via the Seaway totaled two million metric tons, up 40 percent over the same period last year. .. Heritage Marine upgrades fleet Tug operator Heritage Marine has purchased two new tugs to replace two aging vessels. The tugs, Fort Point and Taurus, were purchased from Fournier Tugs in Belfast, Maine. From there, they came through the Canso Canal in Nova Scotia, up the St Lawrence River, through the Welland Canal and across the Great Lakes to Duluth, Minnesota. Cleaned and repainted in Heritage Marine colors, the tugs have been renamed Edward H and Nels J—after the vessels they are replacing. Built in 1970, the new 2,100 HP Edward H—formerly Fort Point—was originally a harbor tug for the U.S. Navy and is equipped with an 800 HP stern thruster. The vessel is currently working in Two Harbors, Minnesota, but will be moved to Duluth-Superior later in the season for ship assists and icebreaking. The 3,800 HP Nels J—formerly Taurus—was built in 1952 for the U.S. Army and has an 800 HP Aquamaster retractable bow thruster. She will join her fleetmates in Two Harbors. .. Multi-user dock generates local spinoffs A conveyor is being built at the Port of Sept- Iles to link the multi-user dock to terminal storage facilities. The local, C$15 million investment by Pointe-Noire Port and Railway Company (SFPPN), is in keeping with the agreements stipulating that users of the multi-user dock are responsible for linking it to their storage facilities. As the instigator of the multi-user approach and partner with SFPPN from day one, the port will help ensure the project is delivered on time so that loading operations can start at the multiuser dock before the end of the year. .. OCTOBER 1-4 American Association of Port Authorities Annual Convention Long Beach Convention Center Long Beach, California www.aapa-ports.org 11-12 SNAME Great Lakes/Great Rivers Fall Section Meeting Fairfield Inn & Suites Chicago Downtown/ River North, Chicago, Illinois www.sname.org 17-19 Breakbulk Americas George R. Brown Convention Center Houston, Texas www.breakbulk.com NOVEMBER 6-9 Natural Gas for High Horsepower Summit Prime Osborn Convention Center Jacksonville, Florida www.hhpsummit.com 14-16 13th Annual Hwy H2O Conference Hilton Toronto Airport Hotel & Suites Toronto, Ontario www.hwyh2o-conferences.com/ 15-17 Green Ship Technology North America Sheraton New York Times Square Hotel New York, New York maritime.knect365.com/green-ship-tech-na/ duluthcargo.com | 218.727.6646 Serving the Heartland of North America Yes, we deliver. Whatever your project cargo needs, let us do the heavy lifting. Streamline your supply chain. Use us as your storage & distribution center to ship inland or overseas. Avoid congestion and delivery delays. Make the Port of Duluth your cargo hub. By water, road and rail … we deliver. A Quick Look The process of innovating Finishing installation Impacting business today One lock remains. After years of research, development and installation, hands-free mooring (HFM) is changing the way ships pass through Canadian and U.S. locks throughout the Great Lakes/St. Lawrence Seaway system. With final testing taking place at the U.S. Eisenhower Lock this fall and installation at the Snell Lock beginning over the winter, full integration of the new technology is nearing. Once the HFM system is operational, there will no longer be a need for specialized equipment on vessels, or pausing for its installation before entering the Seaway. Streamlining passage simplifies use of the system for handy-sized ships from anywhere in the world. No more steel lines or fairleads. No special anchors. Time in the locks will now be downtime for crew, as HFM automation does the work. Traditionally, crew was on the deck securing the ship in the locks with wire ropes. “The new technology allows commercial ships to transit faster and more efficiently, while also enhancing workplace and operational safety conditions,” said Craig Middlebrook, Deputy Administrator for the U.S. Saint Lawrence Seaway Development Corporation (SLSDC). “The universe of Seawaysize, handy- and handymax ships is significant. There’s always a need for those versatile ships to get into modest-draft ports. HFM can put these shipowners on a track T E C H N O L O G Y GREAT LAKES/SEAWAY REVIEW July-September, 2017 9 Global alignment Hands-free mooring expands opportunities for international business growth The Canadian locks were the first to have the custom hands-free mooring technology installed. All of the deep locks are now equipped. of looking at freight rates here in the system.” HMF uses vacuum pads—two on each of three automated arms which are mounted on vertical rails inside the locks. The pads provide up to 20 tons of holding force as they move vertically on tracks in the locks as the ship raises or lowers based on changing water levels. The system keeps the vessel at a fixed distance from the lock wall throughout the process. When the vessels are ready to leave the lock, the vacuum pads release and the arms retract, giving the vessels clearance to sail out of the lock. “Larger vessels will no longer need to be fitted with steel mooring wires and roller fairleads. This vessel requirement was a Seawayspecific cost. Larger vessels can now use their Panama chocks and soft lines, as utilized almost everywhere else in their travels,” said Terence Bowles, President & CEO of The St. Lawrence Seaway Management Corporation. The change simplifies use of the Seaway for carriers. “This will greatly expand the universe of ships that can come into the Seaway,” Middlebrook said. “Right now, the specialized equipment can be a barrier, especially to smaller companies that may be willing to come into the system, but don’t often enough to justify the expense.” T E C H N O L O G Y 10 www.greatlakes-seawayreview.com The center slot is cut out of the Eisenhower Lock for the vertically mobile HMF equipment. SEEKING MARINE PROFESSIONALS Mates, enGineers and aB’s / deCkhands Van Enkevort Tug & Barge, Inc. 909 n. Lincoln rd. • escanaba, Mi 49829 (906) 786-1717 days • fax: (906) 786-1700 vtbarge@vtbarge.com G r e at L a k e s | B u L k s e L f – u n L o a d i n G i r o n o r e | s t o n e | C o a L Any Type Dry Cargo Bulk Commodity According to the SLSMC, the wire mooring cables and roller-type fairleads can involve fitting costs of between $25,000 and $50,000 per ship. There’s also downtime required in drydock or port for the installation. The vision for what this type of automation could offer has taken 10 years to refine and install. With both Seaway entities using the technology, the U.S. Army Corps of Engineers— which operates the Soo Locks—has sent representatives to the Welland Canal to look at the technology. According to Marie Strum from the Great Lakes Navigation Team, the Corps has considered installing HMF, but does not have set plans to do so at this time. The process of innovating. At first, the SLSMC began looking for off-the-shelf technology, which could be dropped into place and provide for the Seaway’s requirements. Early in the process, Seaway engineers realized the existing technology they discovered in another country—being used on docks—would not directly adapt to the locks where the ships would need to adjust with changing water levels. Unique gear would be required. Custom designing began. SLSMC began testing equipment in 2007. T E C H N O L O G Y GREAT LAKES/SEAWAY REVIEW July-September, 2017 11 Topside work occurs at the Eisenhower Lock. The technology is now installed and being tested. PROUD FO WATERS & SERVING INDUSTR DLY PROTECTING OUR R OVER 50 YEARS S INDUSTRY +1 (313) 849-2333 – 24/hour • www.Mari MARINE POLLU nePollutionControl.com • MPC IS OSRO #003 UTION CONTROL 12 www.greatlakes-seawayreview.com Major innovations were made and tested. • Stage I of the research and development involved a simple floating unit, which could extend into the lock and serve to moor vessels. This unit was tested at Lock 8 of the Welland Canal. The basic premise for the unit’s design was confirmed. • A Stage II floating model was brought to a deep lock, specifically Lock 7 in the Welland Canal, to establish the number of pads required to safely moor vessels during lockages. • At Stage III, floating units were quickly transformed to winch-operated units to enable operators to position the pads vertically at an optimal location on a ship’s hull, to avoid wear bars, etc. For capacity reasons, it was determined that a six-pad system would be required. • Bringing about Stage IV, dual pads were placed on three hydraulically operated arms mounted on rails. This design has only undergone minor modifications since the project was approved in 2013. Since finalizing the design in 2013, HFM has been getting installed at the system locks. The SLSMC has invested about C$95 million in the overall process. As of July, the technology has been installed and operational at all the high-lift Canadian Seaway locks, which involves 14 locks when counting the three twinned locks in the Welland Canal. The success of the system has gathered worldwide acclaim. The SLSMC was presented The Promising Innovation in Transport Award by the Organization for Economic Cooperation and Development in Leipzig, Germany during the 2015 Summit of Transport Ministers. “I was honored to accept the award on behalf of all the employees of the Seaway,” Bowles said. Canadian Minister of Transport at the time, Lisa Raitt, said: “With the creation of the world’s first hands-free mooring system for movement of ships through locks, I am proud to say that The St. Lawrence Seaway Management Corporation is truly a world leader in marine technology.” Finishing installation.While the SLSMC was completing HFM installation in its locks, SLSDC was beginning work on the Eisenhower Lock. The U.S. Seaway faced its own innovations. Its two Seaway locks are deeper, on average, and have natural bottoms, creating challenges with placing and moving equipment needed for cutting the tracks and installing the hydraulic equipment. However, the HFM equipment is essentially the same— in purpose and operation—further streamlining the sailing experience. Like their Canadian peers, the American engineers have found the way forward. T E C H N O L O G Y With final testing taking place at the U.S. Eisenhower Lock this fall and installation at the Snell Lock beginning over the winter, full integration of the new technology is nearing. 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 GREAT LAKES/SEAWAY REVIEW July-September, 2017 13 Testing at the Eisenhower Lock is being finished. SLSDC expects to commission the enhanced lock in early 2018. Installation at the final lock, the Snell, begins this winter by cutting out the tracks for the vertically mobile arms. During the 2018 season, the heads and support equipment will be installed and tested. The advanced Snell is expected to be commissioned in 2019—marking history for both Seaways and its users. “This has really broken new ground,” Middlebrook said, specifically referring to the hydraulic arm feature that secures a vessel inside a dynamic lock situation which requires strength to withstand current surges. “It’s been an iterative process for 10 years and we’re to the point now where we can be really proud of the creative ways we’ve overcome the challenges.” In addition to the Canadian Seaway’s investment, SLSDC is expected to spend $27 million from its Asset Renewal Plan funding on HFM. Impacting business today.With HFM in use at the Canadian locks, system stakeholders are already seeing benefits. The benefits go beyond eliminating equipment and costs, and opening the system to more ships. They include: • Allowing commercial users to reduce crew sizes • Increasing safety for crew and Seaway personnel by eliminating linehandling and the potential for mooring wires to snap, creating a whipping effect • Decreasing lockage times by seven minutes, which could add up to nearly two hours once installation is through the entire system • Saving fuel costs and emissions • Allowing the Seaways to use existing lock operations work crews on other priority projects, including routine maintenance “This is a massive technological leap for the lock and dam system of the Seaway,” Middlebrook said. “It joins a pantheon for technological innovation in the Seaway.” “We have seen a greater openness from our customers to embrace new technologies in a quest to enhance our competitiveness and ensure a mutually profitable future, Bowles said, noting that success grants both the Seaway and shipowners the means to retain and build market share in various cargo markets. “Without question, HFM represents the greatest change to Seaway operations since its construction wrapped up in 1959,” he added. “We are now ready to usher in a new era in terms of enhanced operating efficiency and enhanced safety, ensuring that the Seaway remains a vital trade gateway for decades to come.” Janenne Irene Pung . T E C H N O L O G Y Once the HFM system is operational, there will no longer be a need for specialized equipment on vessels, or pausing for its installation before entering the Seaway. nmc.edu/maritime • 877-824-7447 Bachelor of Science Degree Merchant Marine Officer License First-class Pilot’s LIcense Career on Great Lakes or Oceans Michigan’s Maritime College BUILT FOR BULK www.fednav.com | FMT | FALLine | Fednav Direct | Canada Former Prime Minister Brian Mulroney captivated his audience at a recent public speaking engagement in Ottawa when he spoke about the original Canada-U.S. Free Trade Agreement negotiations undertaken while his government was in office. He relayed a fascinating anecdote about the 11th-hour negotiations when the U.S. negotiators, led by then-Treasury Secretary James Baker, firmly rejected Canada’s last ditch efforts to include a dispute settlement mechanism for anti-dumping/countervailing duty matters (Chapter 19) in the text of the agreement. With the clock ticking toward midnight, when Congressional approval for the negotiations was set to expire, Mulroney telephoned Baker and told him that he was going to call President Ronald Reagan, who the prime minister knew was at Camp David. Fully aware of the fond relationship between the two heads of state, Baker asked the prime minister what he was going to say to the president. Mulroney said he would tell his close friend, President Reagan, he could T R A D E P A T T E R N S GREAT LAKES/SEAWAY REVIEW July-September, 2017 15 Renegotiating During the 2016 U.S. presidential election campaign, international trade agreements, especially the North American Free Trade Agreement (NAFTA), and the U.S. trade deficit received more attention than in many years. The subsequent election of Donald Trump raised the possibility that the United States would withdraw from NAFTA. Within days of his inauguration, Trump formally withdrew from the Trans-Pacific Partnership (TPP) and has repeated his calls for the renegotiation of NAFTA. Through Manatt’s and ManattJones’ offices in Washington, D.C. and Mexico City, and TACTIX’ head office in Ottawa, the firms are collaborating to provide the kind of critical information and experienced judgment global companies and North American industry associations need to help navigate the choppy NAFTA waters. The analysis is being released digitally in installments, broken down by country. The first installment introduced the major players in each country’s negotiations. The second looked at how each member has commenced formal international consultations ahead of trilateral negotiation, how concessions made during TPP talks may influence the countries’ initial negotiating positions and how the Trump administration has yet to designate a lead negotiator. The following assessment is the third installment of their findings. A Quick Look Canada draws a red line at Chapter 19 Assessing Mexico’s stand Addressing trade deficits Designating the lead U.S. negotiator U.S., Canadian firms collaborate in analysis of pending change not understand why the United States could negotiate an arms treaty with its archenemy, the Soviet Union, but could not agree with its closest friend, ally and neighbor on a free trade deal. Baker asked the Canadian prime minister to hold off calling the president, indicating that he would do so himself. Moments later, James Baker walked into the room of negotiators and threw a document on the table, saying to the Canadian contingent, “Here is your damn dispute settlement provision.” Canada draws a red line at Chapter 19. This story is recounted for two reasons. First, former Prime Minister Mulroney, who knows President Trump and Commerce Secretary Ross personally, has been brought in by the Canadian government to advise on the NAFTA renegotiations. Second, the dispute settlement mechanism in NAFTA (also Chapter 19) continues to be a line-in-the-sand issue for Canada today, 30 years after the signing of the Canada-U.S. Free Trade Agreement. As was the case in those original negotiations concluded by the Mulroney government, and repeated in the NAFTA negotiations several years later, the United States bristles against trade agreement provisions that circumvent its domestic court system, which Canadian negotiators seek to avoid. This position was reinforced once again in the Summary of Objectives for the NAFTA renegotiation released by the Office the United States Trade Representative on July 17. The summary text could not be any clearer: “Eliminate the Chapter 19 dispute settlement mechanism.” Not renegotiate—eliminate. Canada’s NAFTA renegotiation team brought a fact-based brief to the bargaining table with its U.S. and Mexican counterparts when negotiations commenced August 16. And when it comes to the facts surrounding cases heard pursuant to Chapter 19, the Canadian team has interesting data. International trade lawyer Riyaz Dattu, a partner with the prestigious Osler law firm, has examined the history of disputes brought by Canada or Mexico against the U.S. under Chapter 19. Dattu found that, of the 47 cases brought, 36 were decided by unanimous decision of the five panelists, representing close to 77 percent of the cases. No doubt these facts will be presented by the Canadian negotiating team to their U.S. counterparts. Abandoning their previous position of not negotiating in the media, Prime Minister Trudeau has publicly affirmed that Chapter 19 is Canada’s sine qua non. We can expect Canada’s Foreign Affairs Minister, the Hon. Chrystia Freeland, to reiterate her boss’s assessment at the NAFTA renegotiation table. It is not a surprise that much of the success, or failure, of the pending negotiations revolves around dispute settlement. Former Prime Minister Mulroney could rely upon his friendship with then- U.S. President Reagan 30 years ago to have Chapter 19 delivered in the 11th hour for the Canadian side. Prime Minister Trudeau may have to find a rabbit to pull out of his hat, too. Mexico Mexican reaction to the U.S. NAFTA negotiating objectives has been mixed since they were released in July. The inclusion of new to NAFTA (or updated) disciplines addressed in the Trans-Pacific Partnership negotiations such as e-commerce, financial services, intellectual property rights and energy are viewed as positive efforts to modernize the agreement. The list of objectives was also characterized by a major industry association as “less radical than feared.” The focus on reduction of the U.S. trade deficit and some proposals to restrict market access rather than expand it are seen as problematic at best. Secretary of Economy Ildefonso Guajardo, in his initial comments, called the focus on the trade deficit worrisome and repeated his oft-stated position that Mexico is ready to discuss reduction of trade deficits through trade expansion, not through trade restriction. Guajardo and other Mexican officials have also repeated their prior exhortations that modernization of the agreement must be beneficial for all three parties. Assessing Mexico’s stand. Initial Mexican reaction to the proposed elimination of Chapter 19 suggests that Mexico may be reluctant to agree to this U.S. objective (as will be Canada). Secretary Guajardo seemed to imply that Mexico might be willing to agree to the elimination of Chapter 19 when he was noted by Reuters as saying “the majority of recent controversies…we have won them all in the WTO, which has been for us, a much more efficient mechanism than Chapter 19 of NAFTA 1.” A Mexican multiparty congressional coalition (including members of the ruling PRI party) has called for the Mexican government to reject the proposed elimination of Chapter 19. Industry groups have also voiced opposition. In addition to dispute settlement, rules of origin could pose challenges for Mexico. The U.S. negotiating objectives make multiple references to products, goods and materials from the United States and North America. The intent behind this distinction is unclear at present. If the United States seeks to negotiate both regional and domestic content requirements for goods-seeking to claim NAFTA preferences, the result could prove disruptive to commercial supply chains and potentially discourage development of such regional supply chains in the future. Proposed changes to the government procurement chapter to reinforce “buy American, hire American” provisions, and thus restrict rather than expand market access, could also prove challenging for Mexico to accept. Finally, the objectives include novel provisions to promote anticorruption measures and to prevent currency manipulation which could pose challenges for Mexico. Inclusion of currency language is likely aimed more at China and as a model for subsequent FTAs T R A D E P A T T E R N S GREAT LAKES/SEAWAY REVIEW July-September, 2017 17 Abandoning their previous position of not negotiating in the media, Prime Minister Trudeau has publicly affirmed that Chapter 19 is Canada’s sine qua non. Guajardo and other Mexican officials have also repeated their prior exhortations that modernization of the agreement must be beneficial for all three parties. to be negotiated or updated. Mexican Ambassador to the United States Geronimo Gutierrez recently told a broad group of private sector and foreign embassy officials that the anti-corruption measures were a Mexican proposal adopted by the United States. As a result, these two disciplines may prove non-controversial or could be used as bargaining chips by Mexican or Canadian negotiators. Mexico also opposes the U.S. proposal to eliminate the exemption for Mexico and Canada from U.S. global safeguard measures, which can involve the imposition of tariffs or quotas on an industry that has suffered serious injury from imports. Mexico continues to prepare for an aggressive negotiating schedule in order to complete the negotiations in late 2017 or early 2018. Secretary Guajardo indicated there would be no more than a threeweek gap between negotiating rounds which would allow for six to nine rounds in the proposed timeframe. Completion before the 2018 presidential campaign kicks off in Mexico remains a priority for the current Mexican negotiating team. United States The Trump administration published its NAFTA negotiating objectives document on July 17. The first round of negotiations in August in Washington occurred during the earliest window possible under the Trade Promotion Authority (TPA) legislation. While some reports have quoted Mexican officials in saying that six to nine rounds of negotiations will be conducted before the year’s end, only the first has been confirmed by the United States. The negotiating objectives documents’ initial premise is that the biggest problem with the agreement is the U.S. trade deficit with North America. In fact, the introductory paragraphs blame NAFTA for the explosion of trade deficits, the closure of thousands of factories and the loss of millions of jobs held by Americans “no longer able to utilize the skills for which they had been trained.” Addressing trade deficits. The administration states that the renegotiation must focus on “addressing America’s persistent trade imbalances in North America.” Further, the first item in the description of the objectives is: “Improve the U.S. trade balance and reduce the trade deficit with the NAFTA countries.” This language is consistent with the 2016 campaign and the Trump administration’s trade policy to date. Yet the introduction also highlights the need to improve market access for U.S. exports and calls for the continued elimination of trade barriers. The introduction also calls for a more efficient market system in North America. One overarching question being posed is whether elimination of market access barriers would alter the trade deficit sufficiently or rapidly enough to satisfy the Trump administration and Congress (and their constituents) that a NAFTA 2.0 based on these stated objectives is responsive to the goals identified during the campaign. The specific proposed changes draw frequently from the TPA itself and from the text of the Trans-Pacific Partnership. The more than 100 separate objectives call for greater transparency, regulatory compatibility and elimination of barriers across several chapters and disciplines. Canada and Mexico agreed to many of these provisions in the TPP, so there may be an assumption that they can be easily adopted into NAFTA, though there is no mention of TPP in this document. It is important to note, however, that the 12-country TPP negotiations offered considerable new market access in return for concessions— whereas, in the case of NAFTA, there is very little additional market access to be gained for Mexican or Canadian businesses. Designating the lead U.S. negotiator. U.S. Trade Representative (USTR) Robert Lighthizer also announced that Assistant U.S. Trade Representative for the Western Hemisphere John Melle would be the lead U.S. negotiator. Melle has served in the office of the USTR since 1988. Additional specific objectives worth highlighting include: • Elimination of non-tariff barriers for U.S. agricultural exports (likely aimed at Canada’s restrictions on dairy, eggs and poultry) and enhanced regulatory compatibility (for agriculture and more generally) • Science-based regulations • Streamlined customs procedures • Strengthen Rules of Origin “as necessary, to ensure that the benefits of NAFTA go to products genuinely made in the United States and North America” (It is not yet clear if the administration will seek specific U.S. content requirements in addition to regional content requirements, nor how this might impact the concept of regional integration and the reality of supply chains.) • Include strong provisions on transparency and anti-corruption (which Mexican officials say was their suggestion) • Facilitate market entry for telecom through transparent regulation and an independent regulator • Ensure that “NAFTA countries refrain from imposing measures in the financial services sector that restrict cross-border data flows or that require the use or installation of local computing facilities” • Ensure non-discrimination of digital products • Reduce or eliminate barriers to U.S. investment in all sectors and in all of the NAFTA countries • Strengthen IP for new and emerging technologies and improve enforcement • The labor and environment chapters should be included in the main agreement, all countries should be required to enforce their laws in these areas, dispute settlement provisions should apply to labor and environment, and there should be a mechanism to allow for stakeholders to raise concerns directly • Elimination of Chapter 19, the dispute settlement for antidumping/ countervailing duties (AD/CVD)—this is a red line for Canada • Special protection for perishable and seasonal products in AD/CVD proceedings, as well as the potential for collaboration against third country AD/CVD • Exclusion of sub-federal coverage for government procurement from the commitments being negotiated (The administration is making clear that it will not modify Buy America and other similar provisions.) • Preserve and strengthen investment, market access and stateowned enterprise disciplines benefitting energy production and transmission and support North American energy security and independence, while promoting continuing energy market-opening reforms. . To receive future NAFTA negotiations updates from Tactix Government Relations and Public Affairs, ManattJones Global Strategies and Manatt, Phelps & Phillips, please contact Alan Young at alan.young@tactix.ca. T R A D E P A T T E R N S GREAT LAKES/SEAWAY REVIEW July-September, 2017 19 The administration states that the renegotiation must focus on “addressing America’s persistent trade imbalances in North America.” at Lake Michigan and Ohio 1,000 Acr of Multimodal Industrial Sites ts res River Por are Available the boat is a very solid and comfortable cruising sailboat capable of blue water passages. With a big sail plan, she is also an excellent performer. My time on the water had always been compromised by work responsibilities, so now my wife, Nancy, and I are definitely looking forward to more time to enjoy sailing. I have always had in mind to venture offshore but there is so much to see and do right here on the Great Lakes and St. Lawrence. It’s extremely exciting to think about the possibilities! Great Lakes/Seaway Review:With bachelor’s and master’s degrees in business management, how did you get involved in the maritime industry initially? Smith: Before joining the shipping industry, I held senior management positions in the energy sector. The mid- to late-1980s was a very exciting time in energy. Canada had deregulated its natural gas markets and, all of sudden, large end-users, utilities and energy producers had to negotiate supply deals directly. I had the good fortune to be positioned right at the center of this new deregulated industry. We literally spent months negotiating the early natural gas deals with large utilities, energy producers and industrial users only to spend months more defending them in front of regulators and government. This was an excellent training ground not only in the art of dealmaking but also in learning the importance of managing private, public and political regulatory expectations within a very complex and competitive environment. By the early 1990s, the excitement and challenges of the early years of energy deregulation had largely passed. When I learned that the Great Lakes/St. Lawrence shipping partnership Seaway Self-Unloaders was looking for its first full-time GM in 1995, I jumped at the chance to use my training and experience in an area of great personal interest. Great Lakes/Seaway Review:When and how did you know you were a good fit for maritime? Smith: The very first time I stepped aboard one of our self-unloaders and sat in the bridge with the captain as he navigated the Welland Canal, I knew I had made the I have never doubted my decision to join the industry. Great Lakes/Seaway Review: What prompted your retirement at this time? Smith: There is probably no such thing as a perfect time, but I had completed some major projects over the last year or two that saw Algoma expand in ocean self-unloaders, the creation of a new global cement carrier company and, in Canada, the merger of our two national marine industry associations. While markets have been very challenging both domestically and internationally, we have successfully weathered the storm and the worst is behind us. It seemed like a very good time to change gears and take the next step. Great Lakes/Seaway Review:What will be the most difficult part of retiring? Smith: The most difficult part will be missing the people I worked with each and every day at Algoma, among the shipping community and, of course, my industry colleagues. I have had the great pleasure to work with many extremely talented, capable and dedicated people. This has always made my job extremely gratifying. Great Lakes/Seaway Review:What will be the easiest to leave behind? Smith: Frankly, the long hours and frequent travel will not be missed. I always saw myself more as a dealmaker and problem solver than an administrator; so, giving up the daily grind will certainly not be missed, especially if I am able to keep a hand in the sector assisting others in special projects or working for important industry causes through the Chamber of Marine Commerce. Great Lakes/Seaway Review: Tell us about your personal sailboat, Moxie III, and your growing relationship with her. For example, do you mostly enjoy local boating or are you planning extended excursions? Smith: I started sailing as a young kid in Toronto Harbor and quickly got hooked. I have sailed ever since and have owned a variety of sailboats throughout my life, from small dinghies to high-performance racers and cruising sailboats. Sailing has always been my personal release. Just a few minutes out on the water and I feel completely relaxed and focused on the course I am sailing and my boat’s speed. For me, there is nothing quite like this feeling. I bought Moxie III a couple of years ago with retirement in mind. With a 41-foot LOA and a displacement of 24,000 pounds, I N T E R V I E W GREAT LAKES/SEAWAY REVIEW July-September, 2017 21 Negotiating a new deal After decades of successful contracts, Wayne Smith puts together his retirement plan After 22 years in Great Lakes/Seaway shipping, Wayne Smith recently retired from Algoma Central Corporation. He joined Seaway Self-Unloaders, a partnership of Algoma, as Vice President and General Manager on August 1, 1995. He was later appointed Vice- President Marketing of Seaway Marine Transport and, on May 1, 2008, was appointed Senior Vice President, Commercial at Algoma. In his most recent role, he oversaw all of Algoma’s commercial shipping interests—both domestically and internationally in dry bulk, tankers and cement carriers. He also led the company’s government relations activities, previously serving as chair of the Canadian Shipowners Association and currently as chair of the Chamber of Marine Commerce, which merged with the CSA in 2016. “I retire from Algoma with the comfort and knowledge that a strong and capable team remains to continue to drive Algoma forward,” he said. “In the future, I expect to continue to support important marine industry causes where I can lend a helping hand and pursue projects of personal interest.” Smith graciously took time for an interview with Editor Janenne Irene Pung before fully launching into his retirement. He is a member of the Great Lakes/Seaway Review Editorial Advisory Board. 22 www.greatlakes-seawayreview.com point in time when things begin to change and, for Algoma, the opportunity to expand again internationally arose next in 2015 and 2016 with the purchase of three oceangoing self-unloaders plus a half-interest in a fourth. The creation of NovaAlgoma Cement Carriers in early 2016 as a leading global cement carrier developed initially from a strategy to strengthen our experience and competency in modern cement carriers for domestic market shippers. We quickly realized that these highly specialized and technologically advanced vessels have most of the same market attributes as our core short sea self-unloader business, but with a global perspective. This was an undeniably perfect fit. I had the opportunity to meet Nova Marine Carriers, based in Switzerland, in 2015 and we agreed to form the joint venture in the fall of that year, completing the deal in early 2016. Starting with just five vessels, the joint venture has quickly expanded to 13 ships, including two Canadian-flag vessels for new Canadian cement producer McInnis Cement and, coming in 2018, a new cement carrier for Lafarge Canada. I see tremendous opportunities for NovaAlgoma Cement Carriers to continue to grow internationally. Out of the NovaAlgoma joint venture, NovaAlgoma Short Sea Carriers has been created. This business focuses on the small international bulk carrier space and, starting with a fleet of about 70 vessels, it also appears to have a promising future. Great Lakes/Seaway Review: Is it getting particularly challenging for companies to remain regionally focused and, if so, why? Smith: The future of companies like Algoma depends on their ability to maintain a very sharp regional focus. This is particularly the case in the Great Lakes/St. Lawrence region, where we have specially designed optimized ships, rigorous regulatory standards and a demanding marketplace. The biggest challenge for a large regional player is the limit of the regional market size. This is what causes companies like Algoma to look beyond the Great Lakes/St. Lawrence, but this does not mean that they can lose focus on the Great Lakes/St. Lawrence region. Great Lakes/Seaway Review: What do you consider the Great Lakes/Seaway shipping industry’s greatest challenge currently and why? Smith: This is a very difficult question. There has been a never-ending flow of challenges and issues faced by our industry. In my time, there has been the introduction of marine services cost recovery, the removal of Canada’s 25 percent import duty, right choice. I have never doubted my decision to join the industry. Great Lakes/Seaway Review: Please tell us about your role in Algoma Central’s expansion into the international shipping market and where you see it taking the company. Smith: I took over responsibility for Algoma’s ocean self-unloaders and tankers in 2008. The 2000s, up until this time, had been very positive for international shipping. Freight rates and ship values continually rose, but in September 2008 all of that changed with the collapse of Lehman Bros., the onset of the global financial crisis and what ended up becoming the Great Recession. The global economic downturn lingered for a very long time and, with a substantial surplus in vessel capacity, international opportunities stalled. Our international self-unloader fleet was rationalized and orders for new international tankers were cancelled. Meanwhile, we were aggressively pursuing essential fleet renewal in Canada and took over former partner Upper Lakes Shipping. With every cycle, there is the inevitable If time is money, why spend it refueling? Serving Toledo, Detroit, Chicago and every port in between. Warner Petroleum delivers: by ship or by truck. We deliver to you! Delivery Solutions for all of your fleets refueling needs • Serving all southern Lake Michigan Ports via tanker Coloma L. 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So often, we as an industry have become mired in defensive actions aimed at mitigating difficult, sometimes impossible, regulatory and governmental actions. I have consistently said—since the beginning of my career in this industry—that what is needed most is a sector-wide vision for marine transportation, ultimately a binational regional marine transportation policy aimed at optimizing the use of the Great Lakes/St. Lawrence Waterway. In the fall of 1997, I had the opportunity to write a guest editorial for Great Lakes/Seaway Review. In it, I wrote, “There is a growing school of thought that asks all stakeholders in the Great Lakes/St. Lawrence Seaway system, including governments, to find a common understanding not just about how we can protect the economics and efficiency of the system, but also enhance it to allow the system to reach its full potential as the most competitive, technologically advanced and environmentally responsible waterway in the world.” The absence of this long-term vision still plagues our industry. This is one of the main reasons why I have so much hope for the new merged Chamber of Marine Commerce. With a stronger and more cohesive voice, this will be our best chance yet to help develop this vision for marine transportation in our region. Great Lakes/Seaway Review: How have you balanced your tasks at Algoma and the leadership responsibilities of chairing organizations such as the Chamber of Marine Commerce (CMC) and Canadian Shipowners Association (CSA)? Smith: I have never thought of my role with our national industry associations and my position at Algoma as head of Commercial to be at odds or competing in any way. The goals and objectives of both roles were exactly the same—maintaining a sustainable marine transportation system. I can think of no better way to achieve this than to be able to stand side by side wit

Maritime Editorial