Vol.46 No.2 OCT‑DEC 2017

V O L U M E 4 6 O C T O B E R – D E C E M B E R 2 0 1 7 N U M B E R 2 Fleet renewal continues . Hamilton’s regional impact . NAFTA negotiations . Draft Brandon Road study The Interlake Steamship Company 7300 Engle Road Middleburg Heights, Ohio 44130 Phone: 440-260-6900 • 800-327-3855 FAX: 440-260-6945 Email: boconnor@interlake-steamship.com Website: www.interlakesteamship.com DEDICATION Throughout Interlake Steamship’s successful history, one thing has never changed – the company’s dedication to providing superior customer service. Interlake builds on its past by looking ahead every day – to changing customer needs, to engineering innovation, to personnel training, to safety upgrades. Ensuring a modern, competitive, well-maintained fleet operated by knowledgeable shore-side staff and experienced vessel crews means that Interlake’s customers receive safe and reliable cargo delivery. Interlake is committed to using yesterday as a benchmark to be exceeded tomorrow. Great Lakes transportation is our business, our only business. Let us deliver for you. 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 2 www.greatlakes-seawayreview.com THE INTERNATIONAL MARITIME MAGAZINE OF THE GREAT LAKES/ST. LAWRENCE SEAWAY SYSTEM VOLUME 46 OCTOBER-DECEMBER 2017 NUMBER 2 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 Jen Shock 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 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, Maritime Extension Educator, 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; Marc Gagnon, Director, Government Affairs and Regulatory Compliance, Fednav Limited; Tim Heney, Chief Executive Officer, Thunder Bay Port Authority; Peter Kakela, Ph.D., Professor Emeritus, Department of Community Sustainability, 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, The Great Lakes Towing Company; 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 $38.00. Foreign: One year $47.00; two years $68.00; three years $100.00. One year print & digital edition $53.00. One year digital edition $20.00. 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: Two carriers take on iron ore. Source: Robert Welton Great Laker Cover: Mississagi moving cargo. Source: Ed Bansek THE SOLUTION for DETERIORATING COMMERCIAL DOCKS. Marine Tech’s innovative, proprietary process repairs corroded sheet piling in place at a much lower cost than replacement. All work is done below the water’s surface in a relatively dry environment without disrupting commerce across the owner’s dock. For the highest quality repair of your deteriorated docks, call us. MARINE TECH 218-720-2833 marinetechduluth.com 716 Garfield Ave. Duluth, MN 55802 The furthest inland port in Canada handles dimensional project cargo for destinations across Western Canada. Full service, 24hr terminal www.portofthunderbay.ca (807) 345-6400 GREAT LAKES/SEAWAY REVIEW October-December, 2017 3 Great Lakes/St. Lawrence Seaway A R T I C L E S D E P A R T M E N T S G R E A T L A K E R AVAILABLE IN THESE FORMATS 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/ Fednav expands it new ship order. Page 9. Superior Midwest Energy Terminal moves the most coal in the Great Lakes Basin. Page 36. Restoration of Lorain Lighthouse complete. Page 60. The international maritime magazine of the Great Lakes/St. Lawrence Seaway system O C T O B E R – D E C E M B E R 2 0 1 7 Fleets FORWARD THINKING ……………………………………………………………………………………… 9 Fednav Limited adds to owned fleet with expanded order at Oshima. Hamilton: Regional Impact MORE THAN MARITIME …………………………………………………………………………………12 Hamilton Port Authority fosters economic development. Interview FRESH LEADERSHIP ……………………………………………………………………………………….. 21 U.S. Maritime Administrator addresses commercial navigation issues. Shipbuilding PREPARED FOR BUILDING, REPAIRS ………………………………………………………………. 27 Donjon Shipbuilding has renewed drydock for upcoming winter work. Trade Patterns A FUTURE NAFTA? …………………………………………………………………………………………. 31 U.S., Canadian firms analyze outcomes if American President withdraws from ongoing negotiations. Terminals GREAT LAKES COAL ………………………………………………………………………………………36 St. Clair takes on coal at Superior Midwest Energy Terminal. Interview REDEFINING PURPOSE ………………………………………………………………………………….. 39 Great Lakes Commission Chair discusses new leadership, strategic plan. Infrastructure BRANDON ROAD LOCK AND DAM REPORT …………………………………………………..45 U.S. Army Corps of Engineers releases draft Great Lakes Mississippi River Interbasin Study. Commodities THE HISTORIC REBIRTH OF IRON ORE ………………………………………………………….50 How one Seaway commodity transformed after World War II. SHIFTING DESTINATIONS …………………………………………………………………………….. 54 Trade patterns are changing for U.S. wheat exports. Ballast Water Management BALLAST WATER RESEARCH ………………………………………………………………………….57 Research collaborative continues Great Ships Initiative work on preventing introductions and spreading invasive species by ships. Lighthouses CELEBRATING 100 YEARS ………………………………………………………………………………. 60 Lorain Lighthouse supporters recognize a history of safekeeping. Legends LEAVING A LEGACY ……………………………………………………………………………………….. 64 Terry Johnson converts vision to results for Great Lakes/Seaway system. History A FAMOUS VISITOR ………………………………………………………………………………………..67 Jacques Cousteau comes to the Seaway. Meet the Fleet SAILING STRONG …………………………………………………………………………………………… 68 Classic self-unloader heading for 75th season. Dateline: Great Lakes/St. Lawrence Seaway ………………………………………………………………….. 5 Guest Editorials ………………………………………………………………………………………………. 25, 53 Laker Library ………………………………………………………………………………………………………….71 On the Radar …………………………………………………………………………………………………………… 72 PRINT DIGITAL MOBILE www.fednav.com | FMT | FALLine | Fednav Direct | Winner of the IBJ Environmental Protection Award Photo Bill Kloss GREENER THAN EVER G R E A T L A K E S / S T . L A W R E N C E S E A W A Y GREAT LAKES/SEAWAY REVIEW October-December, 2017 5 DATELINE Daniel J. Kobasic, founder of Basic Marine passes Daniel Joseph Kobasic died November 30 at his home in Escanaba, Michigan. He was 71. Born on August 10, 1946, Kobasic was the second son and fifth child of Frank and Mary Kobasic. The night he turned 18, he walked onto an iron ore freighter. He worked his way up the hawsepipe and attended navigation school in New York. He overcame color-blindness to pass the red light/green light lantern test and eventually became a celestial navigator, second mate in the merchant marine. He served in the Vietnam war zone hauling goods and weapons throughout southeastern Asia. After nearly eight years on ships, Kobasic returned to his Escanaba home. He constructed Shakey’s pizza restaurant and channeled profits from it to build a fishing trawler. With no formal education in naval architecture, he built the Danicia K. in 1978 and started Basic Marine a year later. The company went on to build more than 240 vessels. Kobasic and his brother and business partner, Claude, expanded the business, adding a drydock to accommodate larger vessels and went on to launch Basic Towing, which grew to a fleet of eight vessels. He also maintained a former World War II Coast Guard-cutter, Erika Kobasic, as an icebreaker to maintain area shipping lanes. The company most recently expanded its dock in Escanaba, which allowed the first saltwater vessel into the port in 80 years. The project expanded the dock from 450 to 1,200 feet, dredged the port to 28 feet and included several thousand feet of steel sheeting to secure the shoreline. His unfinished dream to restore Escanaba’s North Shore to its original 1880s glory will be carried on by Claude and his nephew, Nicholas. h Michigan legislature revises ballast water regulation The Republican-majority Legislature has backed making an adjustment to a 2005 law deterring salties from exporting products from Michigan’s ports. The original law prohibited releasing ballast water untreated by a ballast water management system in Michigan waters. When originally passed, there were no U.S. Coast Guard-approved systems available for use. The recent bill, which won approval by a 25-11 vote in the Senate, cleared the House the week prior. If signed by the Governor Rick Snyder, shipping companies sailing beyond the Great Lake/St. Lawrence Seaway system could use state-approved technology before discharging ballast water. Under the legislation, the state would use federal aquatic species nuisance standards when issuing a port permit to an oceangoing vessel. h Algoma Niagara sailing the system, next ship delivers The first Equinox Class self-unloader, the Seawaymax size Algoma Niagara, arrived at the Port of Sept-Iles, Quebec November 1. Algoma Niagara is the fifth Equinox Class vessel to join the Canadian-flag fleet, with the four previous being gearless sister ships. “The performance of the Equinox Class has met all our objectives for efficiency and reliability,” said Gregg Ruhl, Chief Operating Officer of Algoma Central Corp. “Being able to provide these benefits to customers in our self-unloading trades is something we have been looking forward to.” Algoma Niagara is the first of three Equinox Class self-unloaders to deliver at Yangzijiang shipyard in Jiangsu China. The ship is a traditional boom-aft twin belt self-unloader with a deadweight capacity of about 39,000 metric tons at design draught (29,100 metric tons at Seaway draught). Algoma Innovator, another self-unloader, delivered in Croatia in December. It is expected to depart the shipyard and sail to the system in the spring. Still to deliver are Algoma Sault and Algoma Conveyor, which Algoma acquired at auction from the failed Nantong Mingde shipyard earlier this year. Algoma Sault is expected to arrive in Canada in time to start the 2018 navigation season. Algoma Conveyor is expected to deliver in early 2019. h Port of Chicago negotiates legislative action on debt When the Illinois House and Senate overrode the Governor Bruce Rauner’s veto on HB1797, the Port of Chicago immediately became equipped to realize its potential. The override cut a port debt from $24 to $9.8 million. In more than 30 years since payment from the Capital Development Board was made to the port in 1980, the Illinois International Port District has never been required to make a payment because it never reached levels to require such a payment. However, having it on the books was negatively impacting funding opportunities. “The existence of this debt is of no value whatsoever to the state and serves only to limit the investment in the Port of Chicago and the amount of economic activity throughout Illinois water channels, truck routes and rail lines,” stated the bill. “The port is now poised for strategic growth, international expansion and amazing local economic stimulus,” said port Executive Director Clayton Harris, III. “The leadership in the House (Rep. Will Davis) and the Senate (Sen. Donne Trotter) was key. I thank them and the entire General Assembly for all of their help and their belief in the potential of the port. This is allowing the port to get on its economic feet and start moving.” The port is now developing a five-year strategic plan incorporating their E.R.I.C. (Economic and Environment, Resources and Recreation, Industry and Innovation, Community and Commerce) initiative and is expected to include construction of a multimodal facility to ramp up connections between the Great Lakes, Mississippi River system and with regional rail and road thoroughfares. h Daniel J. Kobasic Mackinaw part of historic reenactment The crew of the Coast Guard Cutter Mackinaw played a role in a recent enactment of the “Christmas Ship” by hauling more than 1,200 Christmas trees to Chicago’s Navy Pier for deserving families. Herman Schuenemann, Captain of the original Christmas Ship, made the journey for more than 30 years with fresh evergreens during the late 1800s and early 1900s. Captain, crew and the Rouse Simmons were lost in a storm on Lake Michigan between Kewaunee and Two Rivers, Wisconsin on November 23, 1912. During the recent transit, the crew of the Mackinaw held a tribute and dropped a wreath into the waters near the ship’s resting place. D A T E L I N E 6 www.greatlakes-seawayreview.com In 2016, the Coast Guard established a new methodology for determining pay, which increased the average annual pilot compensation from $235,000 to $326,000. It also recommended adding more pilots and giving them up to 10 days off a month. While the federal judge supported the Coast Guard’s methodology for the rate increase, he did challenge how the regulator determined 10 percent of the increase for weighting factors. As a next step, Contreras has requested remedy proposals for consideration before determining the final outcome of the suit. To see the judge’s memorandum, go to https://ecf.dcd.uscourts.gov/cgi-bin/show_ public_doc?2016cv1019-34. h Senator Baldwin pushes for Great Lakes cruising provision Senator Tammy Baldwin (D-WI) has championed report language in the Senate Fiscal Year 2018 Homeland Security Appropriations Bill, which would direct U.S. Customs and Border Protection (CBP) to work with stakeholders and develop a mutually agreed upon and economically feasible cruise passenger clearance plan for the 2018 Great Lakes cruise season. Last April, CBP threatened to shut down the 2017 cruise season. The agency backed down after Baldwin and other legislators objected. Since April, a broad coalition of stakeholders, including ports, U.S. Seaway, Great Lakes and St. Lawrence Governors and Premiers, and cruise ship operators have worked with CBP to establish adequate cruise ship clearance facilities for 2018. Although still under development, the plan is hoped to enable port-of-entry in Duluth, Minnesota; Sault Ste. Marie and Detroit, Michigan; and Cleveland, Ohio. Baldwin’s efforts are meant to ensure that CBP continues to work cooperatively with stakeholders, utilizing mobile jump kit technology to clear passengers until more robust facilities are in place. h Eco Ships granted Marine Highway Designation Eco Ships, Inc. was recently awarded a Marine Highway Designation from the U.S. Department of Transportation. A Marine Highway Designation validates the Eco Ships concept and supports Eco Ships chosen ports with infrastructure improvements and marketing. Eco Ships is a designated link of Marine Highway M-90. Click the following link to learn more about MARAD’s Marine Highway Program: https://www.marad.dot.gov/ships-and-shipping/ dot-maritime-administration-americas-marinehighway- program/. h Burns Harbor receives congressional support for $19.7 million expansion Port of Indiana-Burns Harbor is receiving one of 10 FASTLANE small project grants for 2017. The U.S. Department of Transportation recommended approval of a $9.85 million discretionary grant for the port, which is helping fund a $19.7 million expansion to increase Judge rules in favor of 2016 rate increase for U.S. pilots In a written opinion issued November 3, a federal judge ruled that the U.S. Coast Guard was justified in raising Great Lakes pilots’ pay. However, the amount of the raise is yet to be determined, with 10 percent of the hike in question. The suit, filed by regional ports and carriers, claimed the Coast Guard’s 2016 methodology for determining pilotage rates arbitrary and capricious. Under Administrative Procedure Act guidelines, based on how the suit was filed, the court cannot set aside an agency rule that is “regional, based on consideration of the relevant factors and within the scope of the authority delegated to the agency by the statute,” according to U.S. District Judge Rudolph Contreras’ opinion. “The function of the court is to assure that the agency has given reasoned consideration to all the material facts and issues.” The Coast Guard is responsible for regulatory oversight of all aspects of Great Lakes pilotage, including setting rates and charges. Each year, it determines costs for the three regional groups providing pilotage services. 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 GREAT LAKES/SEAWAY REVIEW October-December, 2017 7 D A T E L I N E REGIONAL CALENDAR REGIONAL CALENDAR cargo-handling and multimodal capabilities. The port expansion will include construction of a new 2.3-acre cargo terminal with multimodal connections for handling cargo transfers between ships, barges, railcars and trucks. In addition, 4.4 miles will be added to the port’s existing 14-mile rail network. Two new rail yards will create storage for 165 rail cars, accommodate a 90-car unit train and provide railcar switching within the port to improve operating efficiencies. Improvements to the west dock include extending a retaining wall, paving a dock apron and adding 1,200 feet of usable dock space. The project adds a new, six-acre truck marshalling yard to relieve congestion along port roads. “With these investments, companies using water to move cargo will have new options for their inbound raw materials, outbound finished products and transferring shipments between ships and barges, railcars and trucks,” said Ports of Indiana CEO Rich Cooper. h Ontario government awards ferry contracts to Damen Damen Shipyards Group will design, build and delivery for two “road” ferries to operate in Canadian waters of the Great Lakes. The ferries, a 68-meter Damen Road Ferry 6819 and a 98-meter Damen Road Ferry 9819, will share many design features and equipment specifications. Both will be hybrid-ready, enabling them to be fitted with batteries when required. Both vessels are being designed in-house by Damen and will be fully customized for the local infrastructure. The ferries will be based in Kingston and Loyalist Township, Ontario at the northeast end of Lake Ontario and are scheduled for delivery at the end of 2019 (Amherst) and at the end of 2020 (Wolfe). h CSL bids farewell to Pineglen and CSL Clyde Earlier this fall, MV Pineglen was sold to a vessel broker who towed the renamed ship from Montreal to a ship recycling yard in Turkey. The 33,197 DWT bulk carrier was recycled in compliance with international rules and regulations and according to CSL’s vessel recycling policy. Pineglen was the last straight-deck laker built on the Great Lakes and was launched at the Collingwood Shipyard in 1985 as Paterson. She joined the CSL fleet in 2002. h APRIL 18-20 Mari-Tech 18 Victoria Conference Center, Victoria, British Columbia www.mt18.ca MAY 3-5 Great Lakes Economic Forum Hotel Bonaventure, Montreal, Quebec www.greatlakeseconomicforum.com 29-31 Breakbulk Europe Messe Bremen, Bremen, Germany www.breakbulk.com 6-7 Great Lakes Waterways Conference Renaissance Cleveland Hotel, Cleveland, Ohio www.maritimemeetings.com/great-lakeswaterways- conference.php 7-8 SNAME Great Lakes/Great Rivers Section Meeting Renaissance Cleveland Hotel, Cleveland, Ohio www.sname.org MARCH 6-8 2018 Great Lakes Commission Semiannual Meeting and Great Lakes Day The Madison Washington DC, Washington, D.C. www.glc.org JANUARY 7-11 Transportation Research Board 97th Annual Meeting Walter E. Washington Convention Center Washington, D.C. www.trb.org 19 Toronto Marine Club Dinner and General Meeting Fairmont Royal York Hotel, Toronto, Ontario www.themarineclub.org FEBRUARY 1-4 ISMA Grand Lodge Convention 2018 Renaissance Toledo Downtown Hotel, Toledo, Ohio www.shipmaster.org 218.727.8525 | duluthport.com Each year, over $2 billion worth of cargo flows through the Port of Duluth-Superior. Add in the wages of those who work on the ships, the docks and railroads, those who drive trucks and heavy equipment, plus all who work in port-related businesses … and the economic impact easily doubles. Proud to anchor the western tip of the entire Great Lakes St. Lawrence Seaway system. Every time Duluth’s Aerial Bridge goes up, so does the Great Lakes economy. A Quick Look A prevailing partnership The Seaway fleet GREAT LAKES/SEAWAY REVIEW October-December, 2017 Forward thinking Fednav Limited adds to owned fleet with expanded order at Oshima F L E E T S The arrival of each new ship tilts the scale for Fednav Limited in owning more of its fleet. In October, the Montreal-based carrier added six bulkers to its current order at Oshima Shipbuilding Company in Japan. Low costs for shipbuilding and a long-term relationship with the shipyard is making additional fleet ownership a reality. In the late 2000s, Fednav carried about a three-to-one ratio of chartered vs. owned vessels. Today, it’s more than reversed. “After the crash in 2009, which hit shipping in 2010-11, we had a hard time finding owners who were willing to buy ships because a lot of them were hurt in the crash,” said Fednav CEO & President Paul Pathy. Because of the company’s healthy financial position, it decided to change its business model— to order and own the bulkers it needs to serve customers. In 2015, Fednav Limited began ordering bulkers that have become Seawaysized sister ships. “We had to ensure access to the specialized ships—Rolls Royce lakers—we needed,” Pathy added. “You don’t find ships like this in the general market.” Because of the company’s healthy financial position, it decided to change its business model—to order and own the bulkers it needs to serve customers. Paul Pathy Federal Cedar delivers to Fednav Limited at Oshima Shipbuilding Company in Japan. 10 www.greatlakes-seawayreview.com F L E E T S Since then, there’s been a regular rollout of newbuild contracts with Oshima Shipbuilding. Currently, there are 10 ships on order at the shipyard. A prevailing partnership. Since 2015, Oshima Shipbuilding has delivered 12 Seaway-sized vessels to Fednav. With 10 more on order, the number will total 22 new vessels in six years—all of which are owned by the international carrier. Deliveries have kept an aggressive pace, with: • Six ships arriving in 2015 • Six more delivering in 2016 • Four more scheduled for 2018 • Six scheduled for delivery between 2019 and 2021 “This advances our replacement program,” Pathy said, again noting the favorable pricing. “The growth is modest, almost an advance replacement for those ships that might otherwise come in 2023. Instead, we’re getting them in 2020. It has been a banner year in the Lakes and the system, so we feel there’s business to support the modest growth.” With salties, the expected lifespan is about 25 years. However, two factors are considered when determining when to retire a vessel: 1) whether it’s operating safely and efficiently and 2) current customer demand, which can sometimes include the age of the vessels on which their products move. Each new vessel costs between C$25- 27 million to build, adding up to a C$300 million investment in recent years. “We want to maintain our lead in the sector, and we do that with cargo capacity and efficiencies,” Pathy said. Oshima specializes in building bulkers, which primarily service the ore, coal, grains and steel industries. Its factory is located in the city of Saiki, formerly known as Oshima. One hundred eightyeight acres are broken down into four primary areas: fabrication, assembly, painting and advanced assembly. The shipyard, founded in 1973, includes two drydocks and two docks along the outer perimeter. The shipyard’s experience with bulkers allows for the delivery of the 34,500-deadweight, Great Lakes-capable vessels Fednav uses for regional deliveries. Its affiliate businesses in the machinery, engineering, ship design and iron works sectors help offer varied expertise and timely service. It is a joint venture between Sumitomo Currently, there are 10 ships on order at Oshima Shipbuilding. GREAT LAKES/SEAWAY REVIEW October-December, 2017 11 Fednav has been working with JFE Engineering Corporation on installing a system known as BallastAce since 2015. It was the first shipowner to use onboard treatment technology in the system with the arrival of Federal Caribou. The technology follows the regular practice of exchanging ballast water in saltwater in the North Atlantic—creating a two-step approach. “We have been in the fortunate position of being able to plan space for the system as we do fleet renewal,” Pathy said. Janenne Irene Pung n Corporation, Sumitomo Heavy Industries and the Daizo Corporation. The Seaway fleet. Fednav presently has 45 Seaway-sized vessels in its fleet—41 owned and four chartered. This count does not include the 10 ships on order at Oshima. All the ships are ice-class for winter operation. Between newbuilds and having four ships sailing at about 20 years old, the fleet should average 50 vessels. “When you have 40 to 50 lakers, it calls for nearly constant renewal,” Pathy said. Fednav International Limited operates the Fednav Atlantic Lakes Line (FALLine), a regular service between Northern Europe and the Great Lakes/St. Lawrence Seaway system. The service includes 50 to 60 westbound trips per year, with monthly departures from Bremen/Brake on the Weser River and twice monthly departures from Antwerp during the regular season. The committed route moves about a million metric tons of cargo a year to ports like Sorel, Hamilton, Cleveland, Detroit, Milwaukee, Burns Harbor, Thunder Bay and Duluth. The cargo includes steel products, machinery and project cargo. The steel products range from bars, beams and billets to coils, pipes, sheets and wired rods. Industrial machinery involves excavators, transformers, dryers, vehicles, yachts and packaged cargo. Box-shaped holds facilitate general cargo handling. According to Pathy, a strong steel market and economic growth in the U.S. is boosting business for Fednav this season. As the new ships roll out of the shipyard, they are all equipped with ballast water treatment systems—one of the reasons the vessel design has changed slightly in recent years. Space has been created for the system, which treats ballast water by using filtration and chlorination. F L E E T S As the new ships roll out of the shipyard, they are all equipped with ballast water treatment systems—one of the reasons the vessel design has changed slightly in recent years. Wärtsilä connects the dots The biggest marine offering in the world has the right digital solutions for all ship types, including yours. Our electrical and automation offering covers everything from bridges and dynamic positioning to integration and project management. That’s why Wärtsilä makes you more competitive. Read more at www.wartsila.com how intelligent should we make your ship? Modern shipping deMands sMarter ships. We Make ships More intelligent With data. A Quick Look Reaching beyond the port Exploring new options Processing dockside Staggering growth 12 www.greatlakes-seawayreview.com H A M I L T O N : R E G I O N A L I M P A C T MORE THAN MARITIME Hamilton Port Authority fosters economic development GREAT LAKES/SEAWAY REVIEW October-December, 2017 13 boosting the economy with each new occupation, investment and expansion. “The amount of development taking place at the port in the last seven or eight years is phenomenal,” he said, noting that G3 Canada Limited and Parrish and Heimbecker (P&H) represent millions of dollars in investments alone. “What you see happening at the port is happening across the City of Hamilton with new condos and other developments. We have tremendous momentum and the port is a big part of that momentum.” Schleehahn said the city’s industrial vacancy is below 2 percent and building permits have exceeded C$1 million every year for eight years. Exploring new options. Steel Town, as Hamilton has long been called, is changing. And the port is helping lead the way. HPA is structured as a landlord-type organization. As President & CEO, Hamilton said their operations may sometimes look more like a real estate company than a port. But in its role, the port authority is attracting new businesses, making infrastructure investments to help tenants expand and investing in The Hamilton Port Authority (HPA) is about more than cargo and tonnage. It’s a key player in the region’s economic development, which is accelerating as companies see the benefit of locating in Hamilton—near the Greater Toronto Area. Hamilton is outpacing many with increasing employment and infrastructure investments—both through public, private and public-private funding. Its infrastructure and economic development are a powerful part of Hamilton’s story. More than C$300 million of new investments have been made at the port in the past eight years. The port’s 630 acres are close to full occupancy, leaving HPA searching for more industrial property. “Based on The Canada Marine Act, the mandate of a port is to facilitate trade and to support the regional economy,” said Ian Hamilton, HPA President & CEO. “For the Port of Hamilton, this means serving as a link in several supply chains: steelmaking, agri-food, construction materials, petrochemicals and manufacturing.” Taking the helm of HPA amid the surge in agri-food, Hamilton said it’s an example of encouraging the right mix of tenants to support growth and customer choices. The port also has two stevedoring companies and two Class I railroads. The mix produces competitive pricing, making the port attractive for interested tenants. Reaching beyond the port. With its prime location and momentum, HPA is looking to increase its regional impact. To do so, the staff has a multimodal focus and sometimes operates like a logistics firm to help companies determine the best route for moving their goods. “Companies come to us to reduce their logistics costs and to process their cargo,” Hamilton said. “Rail has become as important as marine. Customers want modal choice, and we have access to road, rail and marine. We’re serviced by a few pipelines, as well.” According to Norm Schleehahn, Director of the City of Hamilton Planning and Economic Development, the port is actively recruiting businesses to the region— H A M I L T O N : R E G I O N A L I M P A C T The port also has two stevedoring companies and two Class I railroads. The mix produces competitive pricing, making the port attractive for interested tenants. Ian Hamilton Polsteam’s Resko takes on cargo in Hamilton Harbour. 14 www.greatlakes-seawayreview.com Hamilton Harbour, as seen from the top of G3 Canada’s new 50,000-metric-ton grain terminal. Direct impact Industry continues to command economic attention in Hamilton WHILE SOME MAY QUESTION whether industry is declining, there are new companies and industrial facilities coming to the port in Hamilton. As the largest port in Ontario, the port: • Is home to 130 businesses and organizations • Has an annual economic activity of C$6 billion, which includes C$416 million in onsite operations • Receives more than 600 ships, 6,000 railcars and numerous trucks annually • Moves between 9 and 10 million metric tons annually • Has 15 commercial wharves and 36,000 feet of shipping berths • Supports more than 2,100 jobs, a 30% increase over the last five years • Sustains jobs paying more than 20% higher than the provincial average Quick, Comprehensive, Reliable Repairs. Always. We now have three full size dry-docks and 1200 feet of sheeted wall on the Calumet River at our seven-acre site near Lake Michigan. Our new capacity allows us to also perform dry dock repairs on 300-foot tank barges right here in Chicagoland. With the region.s most experienced repair crew we complete even the most complex and For more information, please contact Mike Hogan at 773-721-3100 or M.Hogan@tpgcdd.com. And be sure to visit our web site at www.tpgcdd.com. TPG Chicago Dry Dock is a Proud Member of the Transmodal Performance Group of Companies 2017 marks our corporation’s 63rd year of supplying waterborne shipping and high quality aggregate products to the communities, contractors and government agencies in the tri-county area. Our strategically located dock facilities feature convenient access to transport and flex-use project staging. Our six decades of success is the direct result of the long standing relationships with our shipping companies and quarries, our loyal customer base and our port partners as exemplified by the hardworking board, executives and staff of the Windsor Port Authority. Products from our West Windsor, East Windsor, Kingsville, Sarnia and Sombra docks are found in roadways, parking lots, driveways and sidewalks. They support rail tracks, line landfill cells, surround sewer pipes and watermains. Our stone is in the foundations of factories, buildings and homes. And even our agricultural lime is spread on surrounding farm fields. Southwestern Sales continues to assist in growing and powering the Ontario economy. We are pleased to announce our return to the West Windsor marketplace. Our newest dock is conveniently located at 210 Detroit Street in Old Sandwich Towne. This latest enhancement allows us to continue and grow our legacy of dedicated service and competitive pricing to our customers in Essex, Kent and Lambton counties. Thanks for sailing along with us. We Have a New West Windsor Dock! We Are Your Aggregate and Shipping Solution The Frye Family and Southwestern Sales Corporation Limited 100 Lesperance Road, Unit 5, Tecumseh, Ontario N8N 1W1 Phone: (519) 735-9822 Fax: (519) 735-1913 www.southwesternsales.ca GREAT LAKES/SEAWAY REVIEW October-December, 2017 15 community awareness—like creating a viewing platform to allow residents to witness a working waterfront at Pier 15. Historically, the blue-collar city and port have been—and continue to be— deeply dependent on the steel industry. As steel began to slump a decade ago, HPA began exploring new business options. “What else could we do to support trade and grow new commodities for the port?” Hamilton said of the HPA’s brainstorming efforts. “How can we leverage our infrastructure assets to facilitate economic development?” Today, the port’s fastest-growing commodity is agricultural products. Much of the new investment has come through these tenants. The port is now home to four grain export/processing facilities, which generated 20.7 percent of the cargo in 2016—more than double the annual tonnage seven years earlier. One of the grain tenants, G3 Canada, completed construction of a C$50 million terminal in October. The expansion brings G3 east, giving it a coast-to-coast grain enterprise in Canada. “Grain exports from southern Ontario have been increasing for some time now,” said Karl Gerrand, CEO of G3 Canada Limited. The company is expanding its relationship with Ontario farmers. G3 Canada is a new grain company that acquired 51 percent interest in the former Canadian Wheat Board earlier this year. The acquisition represents the end of the wheat board’s single-desk marketing authority in Western Canada. The new terminal at Pier 26 has 50,000 metric tons of storage capacity and the latest in dust-control technology. Trucks bring the grain onsite and automation enables drivers to use a security pass to gain entrance, have the product tested and unloaded without leaving their cabs. The entire process can be completed within 10 minutes and the terminal can move 1,500 metric tons of cargo an hour with its automated shiploader. All the incoming grain departs by vessel. Grain and oilseeds are transported to G3’s export facilities at Three Rivers and Quebec City. The grain is either shipped on out on lakers or transshipped to 75,000-metric-ton Panamax vessels for the Steel Town, as Hamilton has long been called, is changing. The Port of Hamilton is the largest Canadian port on the Great Lakes. With numerous Seaway-depth berths, shippers through the Port of Hamilton have access to shipping destinations in the Great Lakes and around the globe. YOUR BEST MOVE ON THE GREAT LAKES Handling, transloading and storage of a wide range of commodities: why not find out more? Call 1.800.263.2131 or visit HamiltonPort.ca dry bulk • liquid bulk • breakbulk project cargo & containers Gateway to theWorld Sourthern Ontario’s PORT OF HAMILTON 16 www.greatlakes-seawayreview.com H A M I L T O N : R E G I O N A L I M P A C T Hamilton Port Authority commissioned this mural to stretch the length of tenant, Collective Arts Brewing, to beautify Burlington Street. Atlantic voyage to Europe, Asia, Ireland or other global markets. “We were particularly interested in Hamilton because of the potential to buy grain and use water to move it east,” said Daniel Decarie, General Manager of G3 Canada in Hamilton. “The opportunity was there to purchase the products.” On average, 120 trucks bring grain into the terminal each day during the harvest. Up to 400 trucks can be processed in a 12-hour day. To assist, HPA paid to install a new access gate on port property to increase efficiency of the trucks for G3 and the other nearby tenants—which includes grain handlers P&H and Richardson International. It also assisted with planning meetings, helping G3 meet federal laws and by training security personnel. A look at the agri-food sector in Hamilton includes a 14 percent year-to-year increase in grain tonnage. Agriculture represents the port’s second-largest cargo sector, at nearly 2 million metric tons annually. Products used for steelmaking still rank No. 1 at nearly 6 million metrics tons. In 2016, the port’s tonnage totaled 9.3 million metric tons, valued at C$1.9 billion. “Hamilton’s port is critical infrastructure for manufacturing in southern Ontario, handling finished steel that is used in everything from cars to construction,” Hamilton said, noting recently that finished steel tonnages are trending 19 percent higher than a year ago. Processing dockside. Part of the enthusiasm around agri-food in Hamilton involves processing raw products dockside. Growing these next-level businesses solidifies the port as a destination. P&H operates a flour mill at the port. When constructed on Pier 10, it was the first new flour mill built in Ontario in 75 years. Daniel Decarie GREAT LAKES/SEAWAY REVIEW October-December, 2017 17 H A M I L T O N : R E G I O N A L I M P A C T The company invested C$40 million, with the province providing an additional C$5 million through the Food and Beverage Growth Fund. The facility allows the company to process about 25 percent more grain and increase the intake of Ontario wheat by 10 percent annually. P&H’s regional product provides the primary ingredients in breads, cakes, cookies, pasta and various types of flour. Other port processing advancements include: • Bunge, affiliated with G3, has invested in its grain crushing facility. • Sucro Can Canada Inc. is operating a sugar refinery at the port. • Collective Arts Brewing creates craft beers from within a 40,000-square-foot building on port property. Improvement plans include a larger taproom and hospitality center to create a destination for beer, art and music. The new brewery is one result of HPA’s business development efforts. The building was previously occupied by Lakeport Brewery. When the company was bought out and the building began to sit empty, HPA began looking for a new tenant. “They brought the brewery in and to the city so we could help with the building permitting process and approval to get them up and operational,” Schleehahn said. “With most of the tenants it brings The port authority is attracting new businesses, making infrastructure investments to help tenants expand and investing in community awareness. 18 www.greatlakes-seawayreview.com H A M I L T O N : R E G I O N A L I M P A C T Creating the right mix Hamilton collaborates on an industry strategy THE CITY OF HAMILTON is developing the Bayfront Industrial Area Strategy, which calls for improving more than 3,700 acres of land—with expected changes ranging from land use and transportation to green space and cultural heritage. The strategy encompasses the port, Hamilton Harbor and is adjacent to the city’s oldest neighborhoods. As a result, Hamilton Port Authority (HPA) is involved in the planning stages, part of a citywide group of stakeholders looking at how to modernize land uses. “We are looking to reinvent the north end of Hamilton,” said City of Hamilton Planning and Development Director Norm Schleehahn. “To promote the city as a place for goods movement, you have to become familiar with the players.” The players include industry, hospitals, universities and other business organizations. And because manufacturing is still a mainstay in the city, the plan maintains makerspace. “We should be repurposing old industrial brownfields for new industries, rather than turning to far-flung greenfields,” said HPA President and CEO Ian Hamilton. “Condominiums are great, but once the space to make things is gone, it is gone for good, along with the economic opportunities.” The plan is expected to release in late 2018. For more information on the study, link through to https:// www.hamilton.ca/city-planning/planning-community/bayfront-industrial-area-strategy. in, the port authority has brought its own investments to the table.” For the brewery, HPA commissioned a mural on the building along Burlington Street. The bright artwork has made the building a showpiece in an area which was known for its industrial look. “The mural fits well with the fabric of the community,” Schleehahn said. “Kudos to the port authority for creating a transition from the recreation and park area to the higher-use district of flour mills and grain terminals.” “With the flour and sugar, we’re starting to see upstream processing at the port,” Hamilton said. “As long as we are willing to make investments and act as a partner, they are more than willing to make the material investments here in Hamilton.” Staggering growth. Yellowline Asphalt Products more than doubled its business the first two full years of production at the port. Its 40,000-metric-ton liquid asphalt terminal brings in liquid asphalt from refineries and processes it for export to mixing plants where aggregates are added for highway, bridge and tunnel improvements. The product arrives by barge, rail and truck and is exported by vessel, said Suresh Daljeet, Operations Manager. The largest port on the coast of West Michigan Providing your Lake Michigan bulk storage needs 75 years of cargo and material handling experience (231) 722-6691 westmichiganportoperators.org • e-mail inquiries to info@wmpo.com Internationally Accessible Marine Freight Corridors FERRYSBURG | HOLLAND | MUSKEGON GREAT LAKES/SEAWAY REVIEW October-December, 2017 19 H A M I L T O N : R E G I O N A L I M P A C T sees nothing but opportunity. “This location at the port is ideal for what we do,” he said. “We couldn’t have grown the way we did without being able to bring in materials with the three modes of transportation. The port is extremely helpful in doing whatever they can to improve and increase our business. They’ve been able to get things done for us quickly and keep our business growing.” Yellowline has received the port’s Environmental Excellence Award, an annual recognition of a tenant respecting and protecting the environment. Its membership in Green Marine offered guidance to meet and exceed government standards during its second year in business. Onsite technology involves extensive carbon and potassium magnetite filters. While the companies building their businesses at the port may seem disparate, they all have one thing in common— business and economic impact. Through their partnerships with HPA, they are maximizing their potential to grow through a collaborative group of thinkers. The result is creating a booming economy for people living throughout the region. They all boost the tax base, provide good-paying jobs and contribute to the rising tide in Hamilton. Janenne Irene Pung n To meet fast-paced growth, Yellowline Asphalt recently installed a second truck loading system. While not planning to use the marine option for the first four years, HPA helped propel the business forward in year two by installing a pipe rack reaching from the tank farm to the dock. From the first year to the second, business more than doubled, reaching about 1.3 million metric tons in 2017. “When we were ready to go, the pipe rack was there and all we had to do was put our pipe on it,” Daljeet said, adding that a ship can fill one 8,500-metric-ton storage container in 16 hours through the pipe vs. the weeks it would take by truck or rail. To help meet the growth, a second truck loading system went online in October. The company is also adding storage, tanks and processing equipment. With contracts in place through 2019-20 and public infrastructure improvements on the rise, Daljeet In 2016, the port’s tonnage totaled 9.3 million metric tons, valued at C$1.9 billion. mcasphalt.com PAVING THE WAY ON THE H20 HWY. McAsphalt Marine Transportation Limited (MMTL) specializes in providing marine transportation that goes the extra mile. We pride ourselves in offering our customers the safest, most environmentally friendly and efficient means of transportation “on time, every time”. Operating two Articulated Tug/Barge (ATB) units, the “Everlast/Norman McLeod” and the “Leo A. McArthur/ John J. Carrick”, on the Great Lakes, St. Lawrence Seaway and Eastern Seaboard. GREAT LAKES/SEAWAY REVIEW October-December, 2017 21 I N T E R V I E W Fresh leadership U.S. Maritime Administrator addresses commercial navigation issues Great Lakes/Seaway Review: Please summarize your priorities and focus as Administrator of the U.S. Maritime Administration (MARAD), especially as it pertains to maritime transportation. Buzby: As I have settled into the job and begun to appreciate the breadth of issues competing for attention and resources, I’ve gained a renewed appreciation for the importance of the three pillars of the U.S.- flag fleet: a strong Jones Act, our Voluntary Intermodal Sealift Agreement/Maritime Security Program fleet and Cargo Preference programs. Without all of those elements in place and healthy in peacetime, we will not have the vessels, the intermodal ports and networks and, most critically, the trained pool of mariners to man our sealift assets to move and sustain our armed forces overseas in times of national emergency. Supporting those programs, educating Congress and the public of their criticality, and innovating for the future are all high on my priority list—and it’s a long list. Great Lakes/Seaway Review: What role do you see maritime commerce playing in the nation’s economic development? Buzby: The nation’s economic development is reliant on maritime commerce which is cost-competitive, fuel-efficient, safe and has environmental advantages over other modes. As road and rail capacities reach their limits, more cargo will need to be carried by America’s waterways to move goods to consumers. The development of public-private sector partnerships can help to incorporate our nation’s underutilized freight and passenger marine transportation capacity into national, state and local transportation programs. Maritime commerce will also maintain its dominant role in getting goods to markets overseas. We need to continue to invest in our seaports to sustain the volume of commerce they handle. The Maritime Administration has been proactive in identifying public and private investment opportunities by developing tools to assist ports in designing, financing and/or funding, improving and building new infrastructure. Through a cooperative agreement with the American Association of Port Authorities, MARAD released the first module of the Port Planning and Investment Toolkit, focused on port funding strategies last year. Great Lakes/Seaway Review: Private industry has made significant investments in the future of the Great Lakes/St. Lawrence Seaway system, including new vessels (Canadian-flag) and repowering vessels (U.S.-flag). What does MARAD see as the future role of the system as it relates to the nation’s transportation plan? Buzby: The Great Lakes/St. Lawrence Seaway system is a vital resource. As one of the world’s greatest and most strategic waterways, it is also an essential part of North America’s transportation infrastructure. The system enables and facilitates significant domestic and international trade for the continent’s largest interior markets, including the industrial, manufacturing, agricultural and natural resource sectors. The Seaway system is vitally important to the nation’s marine transportation system currently and in the future. The Department of Transportation and MARAD recognize the system as a critical component of our nation’s future transportation network and this is reflected in department efforts, such as the National Multimodal Freight Network, where the waterways and ports in the Great Lakes and St. Lawrence Seaway have been identified in the draft network. We encourage the states and regional planning bodies to highlight the value that the system brings the nation in their state freight plans and transportation investment plans. Great Lakes/Seaway Review: In years past, the U.S. offered incentives to assist with building new vessels, resulting in today’s U.S.-flag 1,000-foot freighters. Do you see incentive programs returning to aid in fleet modernization? Buzby: Currently the Maritime Administration has two programs that assist with construction of new vessels in U.S. shipyards. The Federal Ship Financing Program (commonly referred to as Title XI) is available, subject to appropriated funding, to support construction of new vessels. The Capital Construction Fund (CCF) is a tax deferral program that allows taxable income from the operation or sale of an eligible vessel to be deposited into an account to be used for construction of a new vessel in a U.S. shipyard. Great Lakes/Seaway Review: What other types of federal initiatives are promoting greater use of America’s Marine Highways, particularly in the Great Lakes/St. Lawrence Seaway region? Buzby: In addition to the Department of Transportation’s Marine Highways program, there are a host of federal infrastructure investment programs available for the Seaway region. Federal initiatives promoting greater use of America’s Marine Highways can be Rear Adm. Mark Buzby Rear Adm. Mark Buzby is the new Administrator of the Maritime Administration. Prior to his appointment, he served as President of the National Defense Transportation Association, a global association of transportation and logistics professionals. “Our maritime industry is facing unprecedented challenges in our increasingly globalized world,” said U.S. Department of Transportation Secretary Elaine Chao. “Administrator Buzby’s extensive naval and maritime background will serve as a tremendous asset to the Maritime Administration.” “I grew up on the water, piloting vessels from the time I was nine years old and have a lifelong love for the sea,” Buzby said. A career Naval officer with over 34 years of service, Buzby has an extensive background in maritime transportation and leadership. A 1979 graduate of the U.S. Merchant Marine Academy, he earned his Bachelor of Science in Nautical Science and U.S. Coast Guard Third Mate License. He 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. Buzby has answered questions presented by Editor Janenne Irene Pung. I’ve gained a renewed appreciation for the importance of the three pillars of the U.S.-flag fleet: a strong Jones Act, our Voluntary Intermodal Sealift Agreement/Maritime Security Program fleet and Cargo Preference programs. 22 www.greatlakes-seawayreview.com I N T E R V I E W found in CMTS’s Federal Funding handbook for Maritime Transportation System Infrastructure. Even more information is available on the Maritime Administration’s webpage at www.strongports.gov. In addition, TIGER and INFRA Grants are but two DOT initiatives that help fund ideas and projects to provide public services and stimulate the economy both on the American Marine Highways and, more specifically, in the Great Lakes/St. Lawrence Seaway region. Great Lakes/Seaway Review: Two federal studies, “The Perils of Efficiency: An Analysis of an Unexpected Closure of the Poe Lock and Its Impact,” and “40 Proposed U.S. Transportation and Water Infrastructure Projects of Major Economic Significance,” show constructing a second Poe-sized lock in Sault Ste. Marie, Michigan is critical to the nation’s economy and national security. With Congress having long ago approved construction with full federal funding, what can be done to move this matter beyond additional studies and into construction? Buzby: MARAD recognizes the importance of maintaining the reliability of the Poe Lock and we are looking forward to the commencement of the maintenance and repair project expected to begin at Poe Lock early next year. In addition, we are also awaiting the outcome of the Corps’ updated economic analysis on the potential construction of a new Poe-sized lock. MARAD shares in the Corps’ vision of achieving a reliable and resilient Great Lakes Navigation System. As efforts progress to ensure the long-term reliability of the Poe Lock, MARAD intends to continue advocating for a robust waterway system by emphasizing how critical our lock and dam infrastructure is to the U.S. economy. Great Lakes/Seaway Review: With maritime transportation representing the majority of U.S. imports (53 percent) and exports (38 percent), what can be done to improve new and existing foreign trade agreements? Buzby: Effective and efficient maritime transportation is very important to worldwide trade . MARAD will continue to support the U.S. Trade Representative on our Free Trade Agreements. MARAD will also continue to support and promote the use of U.S.-flag ships, the U.S. maritime industry and the improvements of existing Free Trade Agreements. Great Lakes/Seaway Review: How important is the Jones Act and should it be revised? If so, how? Buzby: As I mentioned earlier, the Jones Act is critically important to the well-being of the U.S.-flag fleet. The primary reason for the Jones Act is to assure that there are enough commercial ships and qualified mariners to meet our national defense sealift requirements. The operational requirements to deploy troops and critical supplies demand access to the labor pool guaranteed by the Jones Act. Of the 181 commercial ships that employ sealift-qualified mariners, 99 are in the Jones Act fleet. We are already short about 1,800 qualified available mariners to sustain a full activation of the sealift THE PORT OF TOLEDO +1 419 243 8251 toledoport.org Just Got Bigger! Now Open For Business! 180 ACRES ADDED TO THE PORT OF TOLEDO AT THE IRONVILLE SITE Water Your Cargo Here! Rail Truck 180 More Reasons to Love the Port of Toledo! MARAD recognizes the importance of maintaining the reliability of the Poe Lock and we are looking forward to the commencement of the maintenance and repair project expected to begin at Poe Lock early next year. GREAT LAKES/SEAWAY REVIEW October-December, 2017 23 resource and could be so much more effectively used. MARAD remains committed to expanding our national understanding of the Seaway as a safe, environmentally responsible and cost-effective solution to many of the issues confronting our surface transportation system. We are hopeful that Seaway stakeholders will join us in communicating this message to a broader audience. Great Lakes/Seaway Review: Do you have anything to add? Buzby: I’ve spent most of my career focused on the deep sea sector of the industry, so I’ve got a lot to learn about our Lakes and inland waterways that are so critical to our economy. I’m honored to have been asked to serve as Maritime Administrator and look forward to getting up to speed quickly on this important sector of the maritime industry. n Fund to commit 100 percent of its funds for maintaining the nation’s waterways? Buzby: Obviously, harbor deepening and maintenance falls under the direct purview of the U.S. Army Corps of Engineers; however, the Administration recognizes the need for coordinated infrastructure investment. Such investment should be coordinated across our federal, state and local governments, as well as our private- sector stakeholders. Great Lakes/Seaway Review: How can Seaway stakeholders work to help you achieve MARAD’s goals for the region? Buzby: Seaway stakeholders have a firsthand understanding of the integral role our nation’s waterways play in the transportation of freight and, more generally, the U.S. economy. It is imperative that we work to increase national awareness of our waterway network and its importance to the American economy. It is an amazing fleet. Any action that reduces the size of the Jones Act fleet ultimately affects our national security. In addition, the domestic marine transportation system provides an efficient and highly economical means of moving freight. This region is currently served by over 39,000 vessels that are fundamentally U.S. citizen-owned and operated. Without the Jones Act, the nation would be confronted with the difficult and costly requirement of monitoring, regulating and overseeing foreign-controlled, foreigncrewed vessels operating in internal waters of the U.S. I don’t think that is what most of us want. Finally, there is the impact to our national shipbuilding and repair capability. Naval shipbuilding is not sufficient to sustain the industry and the suppliers who support shipbuilding and ship repair without a significant commercial component. The Jones Act ensures that. We, as a nation, cannot afford to have our naval and commercial maritime construction capability dependent on overseas yards. Great Lakes/Seaway Review: How is MARAD responding to the bills in Congress (H.R. 3152 and S. 1488) o

Maritime Editorial