Vol.46 No.3 JAN‑MAR 2018

V O L U M E 46 n U M B E r 3 new hBI plant . algoma vessels deliver . 2017 season shows growth . Shipyards complete winter work LEADERSHIP I nterlake Steamship’s legacy of leadership onthe Great Lakes isaresult of more thanacentury of superior customer service. Interlake continues to build its legacy by ensuring that its vessels are efficient and reliable. Preventive maintenance,upgrades,and attention to environmental stewardship keep the nine-vessel fleet in top shape. Responsive marketing and innovative engineering prevent delays and maintain ahigh level of readiness and efficiency. With individual vessel capacities ranging from 24,800 to 68,000 gross tons,Interlake canprovide targeted solutions to customers’requirements. Great Lakes transportation is ourbusiness,ouronly business. Let usdeliver for you. The Art of Logistics. 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. cn.ca/greatlakesfleet PORT OF INDIANA-BURNS HARBOR 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 January-March 2018 Business Development IRONVILLE TERMINAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Toledo’s industrial site draws cliffs’ new hot briquetted iron plant. Shipbuilding & Ship Repair NEW CAPACITY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Ship orders and purchases continue to modernize algoma central’s fleet. The 2017 Season A STRONG SEASON. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 2017 cargo movements approach prerecession levels; season length sets record. TOTALS & TRENDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Ports, terminal operators summarize cargo movements for the season. Trade Patterns REPERCUSSIONS OF TERMINATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 The importance of naFTa goes beyond trade to national security and defense. Commodities AN IRON ORE COMEBACK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Fears of post World War II depletion addressed by new processing. Interview TRUE COMMITMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Jim Sharrow reflects on a career of accomplishments, adventure and partnerships. Shipbuilding & Ship Repair AN INDUSTRIOUS SEASON . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Shipyards busy with a mix of winter work. Dateline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Great Lakes Ports. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Guest Editorials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49, 63 U.S. Coast Guard …………………………………………………. 68 Canadian Coast Guard. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 On the Radar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Icebreaking BREAKING THROUGH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Early freeze, fluctuating temperatures create ice challenges. Meet the Fleet INTERLAKE’S ATB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 Dorothy ann/Pathfinder becomes a versatile workhorse on the Great Lakes. Training History DIFFICULT FIRST STEP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 how Mortimer cooley created the country’s largest school of naval architecture. Meet the Fleet FIRST-SEASON SUCCESS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 cleveland adds girth to Great Lakes Towing fleet. The Experts in Human Resource, Planning and Payroll V O L U M E 46 N U M B E R 3 Executives’ views on new steel plant . Ships delivering for new season . 2017 season outcomes positive V O L U M E 46 JAN U AR Y -MARCH 2018 N U M B E R 3 Early fr impacts shipping Dorothy Ann/ Pathfinder offers versatility 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. © 2018 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: Domestic and international ships doing business in Chicago. Source: Christine Douglas Great Laker Cover: Two Algoma Central Corporation ships pass in the ice. Source: Environment and Climate Change Canada, Jonathan Delisle U.S. House officials call for maintaining WRRDA funding levels a bipartisan group of more than 100 mem.bers of the house of representatives are pushing for additional funds for maintenance dredging of the nation’s harbors. In a March 15 letter, legisla.tors urged the house appropriations committee to include $1.38 billion in the Fiscal year 2019 Energy and Water Development appropriations Bill for the U.S. army corps of Engineers’ oper.ations and maintenance activities. For the last three years, legislators have pushed appropriators to reach annual funding targets outlined in the 2014 Water resources reform and Development act (WrrDa). The legislation lays out steps to be taken between 2015 and 2025 to achieve full spending of the tax revenue. “Full use of the harbor Maintenance Trust Fund (hMTF) is urgently needed for safe and efficient freight transportation,” the letter states. “congress, through WrrDa, committed to achieve full use of the hMTF through incre.mental increases over a 10-year period.” On average, the Great Lakes region annually receives 10 percent of corps’ coastal navigation operation and maintenance spending, according to the american Great Lakes Ports association. “as a strategy, it is our goal to work with partners from across the country to lobby for full use of the harbor Maintenance Tax,” said Executive Director Steve Fisher. “If the Great Lakes share holds at 10 percent, the region should experience an increase in dredging funds—and the eventual elimination of our $200 million dredging backlog.” To view a copy of the letter, go to http:// www.greatlakesports.org/wp-content/uploads/ 2018/03/Fy19-harbor-Maintenance-Trust.Fund-Letter.pdf. . Seaway tolls increase 1 percent for 2018 a toll rate increase of 1 percent has been made for the 2018 navigation season, according to The St. Lawrence Seaway Management cor.poration (SLSMc). The new Business Incentive and the Gateway Incentive programs will continue for the 2018 season to keep costs down and encourage busi.ness development. “Over the past 10 years, $36.3 million in new business has been generated as part of ongoing efforts to diversify our commodity base,” said Bruce hodgson, Director of Market Development for the SLSMc. The incentive programs have been an integral component in attracting business into the Great Lakes/Seaway system. For example, the recently introduced Gateway Incentive provides a stimulus for shippers to save by switching the movement of their cargo to the Great Lakes. “We have consistently kept toll increases be.low cPI, while continuing to invest and reduce costs,” said Terence Bowles, President and cEO of the SLSMc. “This is critical to providing a re.liable and competitive gateway for our custom.ers, and we will continue to address these areas on an ongoing basis.” . DaTELInE Cleveland issues bonds to finance new Amazon fulfillment center Through its bonding ability, the cleveland-cuyahoga county Port authority is help.ing fund an amazon.com fulfillment center in Euclid, Ohio. now under construction, the center should create about 1,000 new full-time jobs and create occupancy for the vacant Euclid Square Mall, which closed in 2016. The new 855,000-square-foot building will become one of about 75 amazon fulfillment centers across the U.S. The taxable lease revenue bonds provide privately-sourced capital for the project with no financial risk or contribution by the port. The new facility, with another fulfillment center being built in north randall, will serve as a dual hub for amazon’s distribution network in northern Ohio. The Port of cleveland also issued lease revenue bonds for the north randall project. Together, the two fulfillment centers are projected to add more than 2,000 new full-time jobs in the Greater cleveland area. Great Lakes Commission names Executive Director Darren nichols is the new Executive Director of the Great Lakes commission (GLc). Formerly of the columbia river Gorge commission and most recently associate Darren Nichols Director for the William D. ruckelshaus center in Seattle, Washington, he will oversee the GLc’s work on regional programs and advocacy, as well as day-to-day operations. “as the former leader of an interstate com.pact agency, Darren nichols brings a strong background in building strategic partnerships and addressing high-profile public policy is.sues,” said GLc chair John Linc Stine, commissioner of the Minnesota Pollution control agency. “We are looking forward to his fresh perspective on managing Great Lakes issues and believe he will be an out.standing leader in balancing economic and environmental interests on behalf of our member states and provinces.” . as executive director of the columbia riv.er Gorge commission, nichols managed a regional, bi-state agency governed by a 13-member commission. he convened Ore.gon and Washington governors’ offices, local and state officials, tribal leaders, railroads, en.vironmental advocates, scientists, property owners, business leaders and other interests to address complex public policy issues, in.cluding fossil fuel transport, climate change, forest health, urban growth management and regional economic development. nichols de.veloped and led multi-agency, multi-disci.plinary partnerships to address regional challenges. nichols earned a bachelor’s degree in busi.ness economics from Willamette University and a master’s degree in urban and regional planning from Portland State University. he also earned a J.D. from Lewis & clark Law School with a focus on environmental, natu.ral resources, and energy law. nichols officially begins his duties in mid.april. he succeeds Tim Eder, who left the GLc in 2017. . GrEaT LaKES/SEaWay rEVIEW January-March, 2018 Rand Logistics forms Conneaut Creek Ship Repair rand Logistics, Inc. is expanding its vessel maintenance and services business with the introduction of conneaut creek Ship repair, Inc. (ccSr), a full-service ship repair, fabrica.tion and industrial maintenance company. conneaut creek Ship repair is located in ashtabula, Ohio and is staffed to manage proj.ects of all sizes, with recent contracts awarded by government agencies and private industry. ccSr’s capabilities and services comprise: • heavy fabrication and repair, including steel, stainless steel and aluminum fabrication • Ship repair while dockside or underway • Vessel construction • U.S. coast Guard Subchapter M reme.diation • conveyor and track repairs • Engine and generator repowering and new installations • heavy duty winch repair and main.tenance • Dock fabrication, installation and repair • commercial diving “conneaut creek represents the continued growth of our existing ship repair maintenance subsidiary, Lower Lakes Ship repair,” said Ed Levy, President and chief Executive Officer of rand. “not only will they service our fleet of U.S.- and canadian-flagged vessels, they will also offer innovative solutions, quality work and superior service to many new and existing customers. The formation of conneaut creek is consistent with our strategy of broadening our product and service offering to capitalize on the customer relationships that we have built through the operation of our self-unload.er and bulk carrier fleet.” The conneaut creek team is led by Senior Director Joseph craine, who has more than 35 years of marine and heavy industry repair and maintenance expertise. . CMC hires Senior Director of Government and Stakeholder Relations Sarah Douglas has been hired as Senior Director of Government and Stakeholder relations for the chamber of Marine commerce (cMc). She started March 12. Sarah Douglas reporting to the President, Douglas is responsible for man.aging and executing cMc’s government rela.tions program in support of the association’s strategic plan. She will liaise with a network of government officials and other external stake.holders in Ottawa and the provinces to advo.cate for safe, sustainable, harmonized and com.petitive policy and regulation that recognize the marine transportation system’s significant ad.vantages in inland and coastal markets. “Sarah has a strong understanding of the machinery of government from both working inside the political sphere and from an industry perspective as an advocate for the pharmaceuti.cal sector,” said Bruce Burrows, cMc President. “her experience in policy analysis, political messaging and advocacy campaign design will be a valuable addition to our team.” . First Ladies in Logistics event deemed successful The annual Marine club dinner in January offers plenty of networking opportunities for industry stakeholders. numerous companies host meetings, dinners and receptions that cul.minate with the dinner. This year, a reception exclusive for the women in the maritime logis.tics industry was added. The inaugural Ladies in Logistics event host.ed approximately 25 women with the intent of networking with female colleagues as the num.ber of women in the industry continues to grow. “There are many talented and successful women who work in the broader Great Lakes/ St. Lawrence Seaway system/Eastern canadian Gateway, said Gina Delle rose-ash, Market Business Specialist for The St. Lawrence Seaway Management corporation and an or.ganizer of the event. “It is important to lever.age this talent pool to strengthen and create relationships in addition to encouraging more women to join the maritime industry and move into leadership positions.” Delle rose-ash was joined by Jenna MacDonald, Director of Marketing for the Belledune Port authority, in planning the event. The port also sponsored the reception. “It’s important to create a forum where pro.fessional women in maritime logistics can build and foster relationships that will boost business development prospects and potential mentoring opportunities, MacDonald said. The reception will become an annual event during Marine club. Women interested in more information may email gdelleroseash@ seaway.ca. . Cleveland invests in infrastructure The cleveland-cuyahoga county Port authority is improving its Sediment Processing & Management Facility (SPMF). The upgrades will allow the port to process up to 160,000 cubic yards annually for sale and beneficial re.use, representing over 65 percent of the total material dredged. any sediment of poorer quality will continue to be placed into perma.nent storage in the existing confined Disposal Facility (cDF). The port developed the SPMF two years ago to sort sediment and maximize storage space in the existing cDF. continued use and facility improvements are expected to extend the useful life of the cDF by 20 years, to at least 2037. If a new cDF were constructed, it is estimated to cost $150 million. . Public comments, meeting transcripts available for GLMRIS a public comment period on the Great Lakes and Mississippi river Interbasin Study – Brandon road Draft Integrated Feasibility Study and Environmental Impact Statement ran from august 7 to December 8, 2017. The Draft GLMrIS-Br report evaluates op.tions and technologies near the Brandon road Lock and Dam site in Will county, Illinois, near Joliet, to prevent the upstream transfer of aquatic invasive species from the Mississippi river Basin into the Great Lakes Basin, while minimizing impacts to existing waterway uses and users. Find the draft report, public comments, public meeting materials, transcripts and other information at glmris.anl.gov/brandon-rd/. . MAY 3-5 Great Lakes Economic Forum Montreal, Quebec www.greatlakeseconomicforum.com 7-10 AISTech 2018 Pennsylvania Convention Center Philadelphia, Pennsylvania www.aist.org 16-18 North American Rail Shippers Association Annual Meeting Hyatt McCormick Place Chicago, Illinois www.railshippers.com 29-31 Breakbulk Europe JUNE Messe Bremen, Bremen, Germany www.breakbulk.com 3-6 Canadian Transportation Research Forum Crowne Plaza Gatineau-Ottawa 30-31 25th Annual Great Lakes/St. Lawrence River Gatineau, Quebec Ecosystem Symposium www.ctrf.ca Ontario Power Generation Visitor Center Cornwall, Ontario www.riverinstitute.ca 13-15 Great Lakes and St. Lawrence Cities Initiative Annual Meeting Ajax, Ontario 30. GreenTech 2018 www.glslcities.org June 1 Marriott Pinnacle Downtown Hotel Vancouver, British Columbia www.green-marine.org The Port of Duluth-Superior links the Heartland to the world. We’re connected to a fast, flexible freight network with direct access to four Class I rail carriers, congestion-free roads and the Great Lakes-Seaway system. With a CN Intermodal Terminal now onsite we’re your one-stop shop for cargo service across North America, with gateways to the world. duluthcargo.com | 218.727.6646 GrEaT LaKES/SEaWay rEVIEW January-March, 2018 SEA THE WORLD OUR WAY www.fednav.com BUSINESS DEVELOPMENT Ironville Terminal Toledo’s industrial site draws Cliffs’ new hot briquetted iron plant Cleveland-Cliffs Inc. is locating its first hot briquetted iron (HBI) production plant at Ironville Terminal in East Toledo. The project has the potential to create up to 130 permanent jobs, more than 1,200 construction jobs and represents a $700 million investment in the Toledo region. Cliffs will lease about 100 acres from terminal operator, Midwest Terminals of Toledo. Con.struction is beginning this quarter, with the production of commercial tonnage of HBI beginning in mid-2020. Cliffs will receive more than two million tons of product, delivered by vessel, for the pro.duction of HBI, and has the potential to add 100 new vessel calls per year at the Port of Toledo. The finished product will ship from the facility via truck and rail. To gain an greater understanding of what the project entails, Lourenco Goncalves, Chairman, President & Chief Executive Officer of Cliffs, and Paul Toth, President & Chief Executive Officer of the Toledo-Lucas County Port Authority, have participated in the following interviews. BUSINESS DEVELOPMENT BUSINESS DEVELOPMENT GrEaT LaKES/SEaWay rEVIEW January-March, 2018 11 BUSINESS DEVELOPMENT Goncalves prestigious Brazilian university. after working at cSn for 17 years and rising up to be in charge of both operations and sales, I accepted an invitation to become cEO of california Steel In.dustries (cSI) and moved with my family to the United States in 1998. We have been here since. Great Lakes/Seaway Review: Does your understanding of mineral processing, extractive and physical metallurgy influ.ence how you’re leading cleveland-cliffs? If so, how? Goncalves: yes, it certainly does. My understanding of the me.chanical and chemical properties of our tailor-made iron ore pel.lets has helped in both my interactions with our customers and our commercial negotiations. I know how unique our pellets are and how they behave from the metallurgical standpoint. Secondly, my understanding of metallurgy has been especial.ly helpful in cliffs’ growth strategy toward supplying the electric arc furnaces (EaF). Knowing how each type of EaF feedstock works, I became confident that hot briquetted iron’s (hBI) unique metallurgical properties and easy transportability make it the ideal product for a company like cliffs to supply and ulti.mately evolve as a business. Toth developers swarm to locations like Ironville where industrial de.velopment often competes with commercial development for valuable waterfront property. When Ironville was acquired, there was little interest in the vacant brownfield. The port authority and Midwest Terminals saw an opportuni.ty to act as a developer for the site in a private-public partnership and to expand the Port of Toledo by an additional 180 acres. We worked with the State of Ohio and received funding through the job ready site grant program and the logistics and distribution stimulus grant program to make the necessary improvements, which included dredging and dock wall, warehouse, conveyor and on-dock rail construction. Working through the development process took a lot of col.laboration between the port, Midwest and the many engineers, attorneys, consultants and contractors who assisted with the project. Environmental covenants and permits were obtained and the site was designated by the State of Ohio as a Job ready certified Site. There was even a point in time when a boulder had to be dealt with using underwater explosives. It gives us great satisfaction that all this work eventually paid off with the announcement of this project and that there will be a significant return on the investment in the form of jobs for the community. The difference between HBI and scrap is that our HBI will be made from virgin iron, rather than steel that has been recycled. Great Lakes/Seaway Review: With more than 30 years of ex.perience in the steel industry, what do you consider the greatest pressures for progress? Goncalves: In my 37-year (and counting) career, one of the greatest examples of pressure for progress is on the environmen.tal side. as long as I have been in this business, there have been multiple examples of industrial nations stepping up their game on environmental compliance. Throughout the entire world, once the country is stable, then you have to make sure it continues to be a livable place. That happened with South Korea in the ’70s, Japan during the ’60s and with the United States even earlier. The most recent example is china, which over the past couple of years, has really started to care about pollution. This has benefitted our business since the demand for higher-grade, environmentally friendly products, like iron ore pellets, has significantly increased. Great Lakes/Seaway Review: construction of the hBI produc.tion plant in Toledo adds a new business component for cliffs. Please explain what type of return you expect to get on the $700 million plant. Goncalves: We would not be making such a large-scale in.vestment in this business if we did not anticipate strong re.turns. cliffs will be selling hBI to electric arc furnace (EaF) steelmakers located in the Great Lakes. These folks currently import virgin iron units from countries such as russia, Brazil and Ukraine. We will be delivering them a better product with.out the inconsistency in quality, working capital drags, lead time issues or exchange rate risk, and we will be the only one in the Great Lakes able to do so. The same unique positioning within the Great Lakes that makes our iron ore pellets business so successful will make the hBI business successful, as well. Great Lakes/Seaway Review: how do you anticipate the plant impacting the Midwest steel industry and the local economy? The name Ironville was derived from the unique East Toledo neighborhood that once stood near this industrial area. There was a strong sense of community in Ironville and many of the residents worked at the nearby port. Great Lakes/Seaway Review: Please discuss your original vi.sion for the property. Toth: cleveland-cliffs Inc. has stated it was as though Iron-ville Terminal was developed to meet their specific needs for building the new hBI production plant. The port authority and Midwest Terminals had a project like the cliffs hBI plant in mind as Ironville was being developed. Instead of adopting a piecemeal strategy of chasing down a cargo here and there, Ironville was meant to house an industrial user who had a long term and recurrent need for marine and rail connectivity. In addition, the availability of low cost natural gas and the proximity to abundant reclaimed cooling water made the loca.tion a perfect fit. There are not many locations within the Great Lakes or the United States, for that matter, that had all the nec.essary infrastructure and utilities ready to go for a project of this magnitude. To replicate the infrastructure of Ironville from scratch at another location would have taken several years and would likely have been cost prohibitive. Great Lakes/Seaway Review: how did forming a public-pri.vate partnership with Midwest Terminals further the develop.ment of the property? Toth: Midwest has been an important partner in the revitaliza.tion of the Port of Toledo since they began operating the cSX rail ballast dock in 1999. In 2004, when Toledo World Industries ended their agreement to operate the port’s general cargo dock, Midwest Terminals stepped into that role and was very success.ful in attracting new business and working with the port to mod.ernize and improve the terminal. BUSINESS DEVELOPMENT BUSINESS DEVELOPMENT GrEaT LaKES/SEaWay rEVIEW January-March, 2018 15 BUSINESS DEVELOPMENT Goncalves the process of working through details with the port and eco.nomic development experts in Toledo and what they did to fi.nalize the deal. Goncalves: The port has been a great partner and facilitator in this endeavor. They have spearheaded the process to gather the important stakeholders together to finalize the deal. On the economic development side, we have secured over $30 million in financial assistance from the State of Ohio through various grants, which goes a long way in terms of generating employ.ment in an area that needs jobs, as well as boosts our return on investment on the project. Great Lakes/Seaway Review: Will the plant increase water.borne iron ore transportation by 2 million annually or does it create a shift in the trade pattern from another Midwest trade pattern? Goncalves: We are not adding additional iron ore pellet tons to the marketplace. We will be shifting 2.5 million tons from the blast furnace end market to the EaF end market. Our ship.ping pattern will then be different. rather than shipping north-shore pellets to ports in Gary, chicago, Detroit, cleveland or hamilton, these shipments will instead be diverted to Toledo. Overall, there will not be changes in iron ore pellet volumes. Toth plant of that magnitude is enormous. cliffs has already opened an office building in Toledo and is moving dirt on the site. It has utilized the Ironville dock to bring in two vessel loads of stone and will be bringing in some modular units over the gen.eral cargo dock. The port authority is working with the city of Toledo to construct two round-about intersections and improve the road connecting the interstate to the plant. These are some prelimi.nary examples of the short-term impact the plant is already having, with much more to come. Over the longer term, high paying material handling, trans.portation, plant operation, fabrication, consulting and engi.neering job opportunities will be available and the indirect im.pact to the local and regional economy for suppliers and utility providers will be tremendous. Great Lakes/Seaway Review: It’s estimated the plant could mean an additional 100 vessels coming to port. Please put that increase into prospective. Toth: cleveland-cliffs estimates that 2 million tons of iron ore will be consumed at the facility each year to produce 1.6 million tons of hot briquetted iron. The inbound ore will arrive in vessels and the finished hBI will ship in truck and railcars to 60th Anniversary DiamondJubilee Since 1958, Samsel Supply has seen safety in the mar.itime industry make great strides. Safety is a sincere priority for the vessels. Samsel provides the maritime industry with the personal protective equipment (PPE) nec. essary for today’s safety standards. When Frank Samsel started in ’58, standard issue to the crew was a cork life vest (used for going over the side only), mooring wires were heavy, and wooden life boats were what mariners were expect. ed to depend on. The hold was dimly lit, and there was no hear. ing or eye protection. The first safety mandate for hardhats didn’t start until after 1949. Today marine safety has advanced ten-fold. • Life vests are comfortable to wear when working – and are required to be worn more than just when swinging over the side of the boat. Immersion suits are also required on the vessel. • Fall Protection, gloves, glasses and ear plugs are used as well as hi-vis clothing. • Synthetic mooring lines are size for size stronger than wire rope. • Dust emission is lowered; on some vessels Samsel has fabricated covers for the boom to reduce dust particulates even further. • Inflatable life rafts have replaced life boats. • Lighting is being replaced with LED technology; it illu.minates the vessel effectively and efficiently. Samsel Supply provides UScG Life raft Inspections, hy.draulic repairs, wire rope and cordage splicing, sewing shop, hardware and rigging; maritime has the perfect one stop shop. Samsel has helped keep mariners safe and equipped for 60 years. steel mills throughout the region. Because the hBI will primarily go to electric arc mini mills, the existing iron ore volume through the Port of Toledo, which goes to integrated mills, should not be impacted. an addition.al 2 million tons of waterborne cargo will provide a significant impact to the port’s overall tonnage, which is typically between 8 and 13 million tons per year. To put this into perspective, by tonnage, the inbound ore associated with the cliffs project alone will surpass the port’s average total grain, liquid bulk and general cargo tonnage combined in most years. Total vessel calls range from 500 to 700 in any given year, so 100 additional vessels will certainly make a significant difference. This additional maritime activity will certainly have a positive economic impact on the local economy, benefiting many businesses such as the Toledo Ship.yard, industrial suppliers and local restaurants and hotels. Great Lakes/Seaway Review: Beyond cleveland-cliffs’ current plans, what kind of development potential remains at Ironville? Toth: Ironically, the port authority and Midwest Terminals originally acquired the Ironville location, in part, because the general cargo dock was beginning to reach capacity and anoth.er location was required to accommodate additional cargo and accommodate major investment opportunities. now that this GrEaT LaKES/SEaWay rEVIEW January-March, 2018 17 WINNER cslships.com BUSINESS DEVELOPMENT Goncalves Great Lakes/Seaway Review: Is the recent purchase of 553 acres and lease of 3,215 acres in the Biwabik Iron Formation in Minnesota connected with the new hBI plant? If so, how? Goncalves: no, they are not immediately connected. at cliffs, we have two main strategic targets: expand the customer base and protect the core business. We are simultaneously ad.vancing our strategy in both areas. The hBI plant is an effort to expand our customer base and develop a new product. The real estate transaction in Minneso.ta falls under the strategic focus to protect our core business. The nashwauk properties provide cliffs with options to extend the life of our existing Minnesota operations. Great Lakes/Seaway Review: Plans call for shipping out the finished product by truck and rail. Is this primarily because it will remain inland in the Midwest? Goncalves: That is correct. The advantage of the Toledo hBI plant is that it is located close to our potential EaF customers and, in most cases, it will be more economical to rail product to them. Furthermore most EaFs are not located directly on the Great Lakes like the majority of the blast furnaces. Due to this, rail is the most logical solution. cliffs’ logistical advantage com.pared to imported alternative iron units is significant. HBI is key to our future, much like iron ore pelletizing was a significant turning point in the 1950s. Great Lakes/Seaway Review: Do you anticipate the hBI prod.uct becoming an export through the Great Lakes/St. Lawrence Seaway system? Goncalves: We do not. We expect more than enough de.mand for hBI from the EaFs steelmakers in the Great Lakes and the product will be sold out within the region. Shipping out of the St. Lawrence Seaway system is costly and inefficient for us, and we prefer not to go that route. When we ship iron ore pellets out of the Great Lakes, our price realizations after freight charges are much less than our sales to U.S. domestic customers. Great Lakes/Seaway Review: Please summarize the impor.tance of this project to cliffs. Goncalves: We cannot deny the ongoing shift of steelmaking in the United States from blast furnaces to EaFs. Less than 30 years ago, only one-third of steel made in the United States was via EaF, with the remaining two-thirds produced by blast fur.naces. Today, that breakdown has completely flipped. after World War II, there was a structural shift in steelmak.ing when the country ran out of high-grade iron ore. at that time, cliffs had to make major risky investments in beneficia.tion and pelletizing technology to survive. Without that fore.sight, cliffs would not be here today. We are reinventing the company once again by expanding into hBI for electric arc furnace steel producers. hBI is key to our future, much like iron ore pelletizing was a significant turn.ing point in the 1950s. not only are we investing in this to stay on the forefront of the industry shift, but this will also be a val.ue-accretive project. We will soon be coming to our end of life for the mine at our australian operation and this facility should more than replace the earnings contribution we have previously gotten from there. . Toth vision has become our reality, we still believe there is significant development potential for the Ironville Terminal. In 2017, the terminal handled nearly 500,000 tons of cargo from vessels which included mill scale, ballast stone and lime.stone. In addition, metals and liquid bulk storage and trans-loading activity occur at Ironville on a year-round basis. There is no reason why these activities can’t continue to expand con.currently with the cliffs operation. The port authority and Midwest Terminals are committed to continue investing in infrastructure and marketing the facility until full capacity is reached. We feel the size of this location and the infrastructure investments at Ironville will allow for the cliffs operation to grow along with other business at the terminal. Great Lakes/Seaway Review: Beyond the physical develop.ment, what other factors were key to the port authority secur.ing the cliffs deal? Toth: Orchestrating the cliffs deal took a coordinated effort from many entities. The port authority and Midwest Terminals have been aggressively marketing the site and worked to have it certi.fied through the State of Ohio’s Job ready Site certification pro.gram. When Midwest Terminals discovered that cliffs was inter.ested in the Ironville location, the staff there contacted the port authority, which brought together economic development officials from the city of Toledo, State of Ohio and Lucas county. The port authority put together a proposal for the Ironville location that was both competitive and compelling. With the support of elected officials, including Governor Kasich, Tole.do’s mayor and with each agency utilizing every resource avail.able, cliffs made the decision to commit to the location. The name Ironville was derived from the unique East Toledo neighborhood that once stood near this industrial area. There was a strong sense of community in Ironville and many of the residents worked at the nearby port. Great Lakes/Seaway Review: Do you have other new tenants to announce? Toth: We have seen a lot of recent development in the Front Street corridor along the Maumee river in the port area. The availability of abundant and competitively priced natural gas has been one of the primary drivers. new gas fired electric power generation facilities have been constructed with additional facilities in the development pro.cess. Some components for these facilities are shipped through Toledo’s general cargo dock operated by Midwest Terminals. Just down the road from the cliffs project, a methanol pro.ducer has entered into an option agreement with the port au.thority to lease 12 acres and construct a new facility. In addi.tion, the Seneca tank farm is also expanding its operation for handling liquid asphalt through the port by constructing new tanks and building new on-dock rail, connecting the facility to norfolk Southern. Midamerican Salt also has plans to expand their operation in Toledo. We are very excited about these proj.ects that are expected to create hundreds of additional jobs for the community. . SAVE SAVE TIME & MONEY DIRECT ACCESS TRADING IN BULK, BREAK BULK, SEAMLESS SUPPLY INTO ALL OF NORTH OVER 50 GLOBAL LIQUID & CHAIN WITH A AMERICA MARKETS SPECIAL CARGO CONNECTED NETWORK SIMPLE. COMPETITIVE. CONNECTED. EUROPE U.S. MID-WEST SPECIAL CARGO TO TO ICON/BADGE U.S. MID-WEST NORTH AFRICA SHIP WITH US TODAY Moving beyond delayed deliver.ies and a failing foreign ship. yard, algoma central corpo. ration’s fleet renewal is producing long- awaited capacity. Ships are delivering. Ships are being purchased. For the 2018 season, the company has additional hulls to fill—new lakers built at chinese and croatian shipyards and ves. sels purchased from american Steamship company. addressing the unexpected challenges of a shipbuilding program dat. ing back to the 2013 construction of the Algoma Equinox, Peter Winkley, algoma’s chief Financial Officer said: “While there have been some overall changes, the vi. sion has not changed that much. The ulti. mate objective is fleet renewal with the Equinox class as the core.” Equinox class ships are designed with an exhaust gas scrubbing system that eliminates 97 percent of all sulphur oxide emissions and 75 percent of particulate matter emissions from the engines. Tier II main and auxiliary engines produce less nitrogen oxide and feature electronically controlled smokeless rail fuel injection. While the renewal program is not ex. panding capacity, the estimated c$500 million investment is making the fleet more efficient, sustainable—by reducing winter work—and greener. “The outcome will be that we operate a fleet that is there for our customers for the long term,” Winkley said. Marking progress. algoma began its fleet renewal with Mingde shipyard in chi. na. Three bulkers were built and delivered from the yard. however, while construct. ing two additional vessels, production halt. ed and the shipyard went bankrupt. algoma worked through legal issues, delaying its scheduling for new ships. SHIPBUILDING & SHIP REPAIR NEW CAPACITY Ship orders and purchases continue to modernize Algoma Central’s fleet GrEaT LaKES/SEaWay rEVIEW January-March, 2018 21 In early 2017, the first of the break.throughs came when the company ac.quired one of its vessels—about 95 per.cent complete. By that fall, the second “silver lining” presented when algoma ac.quired the hull of the first self-unloader from the yard, according to Winkley. These vessels are now the Algoma Strong-field and Algoma Conveyor. Equinox Class ships are designed with an exhaust gas scrubbing system that eliminates 97 percent of all sulphur oxide emissions and 75 percent of particulate matter emissions from the engines. Five of the original eight orders with Mingde were either delivered or recov.ered, with only the Conveyor remaining under construction. The vessels which have already begun service in the Great Lakes/St. Lawrence Seaway system are: • Algoma Equinox, the flagship • Algoma Harvester, the second gear-less dry-bulk carrier • G3 Marquis, a third bulker moving agriculture products and iron ore • Algoma Strongfield, the fourth gear-less bulk carrier, was recovered from Mingde shipyard after its bankruptcy and completed at yangsijiang Shipbuilding in china for her 2017 début in the system • Algoma Niagara, the fifth vessel but the first self-unloader to deliver, arrived in november 2017 The company is now in its second phase of the shipbuilding program, which is tak.ing place in two countries and will culmi.nate with a total delivery of 10 new dry-bulk lakers. During the off season, algoma has taken delivery of two more vessels— Algoma Innovator and Algoma Sault. The Algoma Innovator is a 650-foot Equinox class vessel with a forward-mounted boom. She was built at 3Maj shipyard in croatia and arrived in the sys.tem to join the fleet for the 2018 season to be a leader in the river class business. She is the first new ship built with a for.ward boom in 45 years. The configuration creates maneuvering flexibility, allowing cargo to be delivered into niche spaces. SHIPBUILDING & SHIP REPAIR “The flexibility and efficiency of this vessel will advance algoma further in the marine industry, allowing us to continual.ly meet the needs of our customers,” said Ken Bloch Soerensen, algoma President and cEO. The Algoma Sault is a 740-foot self-un.loader, the second of its kind within the Equinox class order. She was built at yangzijiang Shipbuilding in china and re.cently sailed through the Panama canal en route to the system. Winkley said working with the new yards has been refreshing. The shipyard in china is building two ships simultaneous.ly while the croatian yard is building one based on yard configuration. Scheduling is behind at 3Maj, yet algoma is working with the yard, appreciating its high quali.ty workmanship. While the shipyards have changed, the number of vessels in the renewal program has not. But the road has required flexibili.ty. More money has been spent to maintain older vessels, leading algoma Ship repair to rent the drydock at Port colborne tem.porarily to provide space for mobile crews to complete additional winter work. a surprise purchase. The twist in al.goma’s fleet renewal plan came when it opted to purchase four vessels from amer.ican Steamship company (aSc). al.though not looking to purchase ships, al.goma made the deal for two reasons: it needed river class vessels to meet con.tracts with 3Maj falling behind and aSc put four ships on the market, two of which are fully ready to sail. The ships are MV Buffalo, MV Adam E. Cornelius, SS American Valor and SS American Victory. The Buffalo and Cornelius have been reflagged as canadian and are sailing this season as Algoma Buffalo and Algoma Com.pass, respectively. The names were chosen through an internal contest for algoma employees. They are providing efficient capacity in shipping salt, aggregates and other commodities. They enable the com.pany additional versatility with vessel size and capabilities. The steamers were part of the package deal. There are no set plans for re-engining them. Plans call for scrapping the Victory and for either converting the Valor into an aTB or for use as a donor vessel. “We acquired good capacity for a rea.sonable price,” Winkley said. “It helps us deal with the delays in the croatian con.tracts. It was a win for us and for ameri.can Steamship company. With construction ongoing in croatia, algoma doesn’t anticipate vessels deliver.ing in 2018. It is working with staff there to reach an agreement on an achievable schedule. Algoma Conveyor is scheduled to deliver in early 2019. Janenne Irene Pung . THE 2017 SEASON A STRONG SEASON The 2017 season marks the longest in Seaway history— lasting 298 days, representing commerce moving between North America and more than 59 overseas markets. Port of Monroe THE 2017 SEASON 2017 cargo movements approach prerecession levels; season length sets record It isn’t everyday that a hotel moves through the Great Lakes/St. Lawrence Seaway sys.tem aboard a ship. Whether pre-construct. ed housing, TEUs of equipment or bulk iron ore and grain, stakeholders along the Seaway are moving it. Over the 2017 season, 38.12 mil.lion metric tons of cargo was transported through the Great Lakes/St. Lawrence Seaway system. Dry bulk, grain and iron ore top the ton.nage summary, accounting for nearly 29 million metric tons, or about 76 percent of the total. about 90 percent of the cargo moving through the Seaway is bulk. (Please see the chart on page 27 for a breakdown by commodity.) The largest over-the-year increase in tonnage came through general car.go, which includes steel, heavy ma.chinery and electrical infrastructure. The hotel was moved in modular com.ponents, arriving at the Port of Thun.der Bay’s Keefer Terminal in the fall. The components were brought across the atlantic Ocean from Gdynia, Poland, with each component welded into place for the voyage. Once in port, the welds were cut and Logistec Stevedoring used a crane to off.load the 154 modules and truck them to a lay-down area for short-term storage. Over the season, they were trucked to their final destination in calgary, alberta for assembly, according to Tim heney, port cEO. Like in Thunder Bay, many ports expe.rienced a surge in general cargo in 2017— representing a 30 percent increase over the previous year. The 2017 season marks the longest in Seaway history—lasting 298 days, represent.ing commerce moving between north america and more than 59 overseas markets. Growth and reliability. During the season, traffic through the Seaway increased by 9 per.cent over 2016. Jointly, the U.S. and canadian Seaway corporations maintained more than a 99 percent system reliability and availability rate throughout the season. Growth commodi.ties included iron ore exports, dry bulk cargoes, such as salt, coke and potash, and general car.goes, including imported steel and slab, project cargo, imported aluminum. The longstanding trade pattern of steel in, grain out remains critical to the system’s success. “We’re enthusiastic about the strong ship.ping tonnage, said craig Middlebrook, Deputy administrator for the Saint Lawrence Seaway Development corporation (SLSDc), of the 2017 season. “The demand for both traditional and new Seaway cargoes is having positive im.plications for Great Lakes shipping and mari.time-related employment. These numbers vali.date the importance of the system as an essential trade artery and reflect the continued growth in manufacturing, construction and other indus.tries throughout the region.” “We can accommodate double the annual cargo we now have, and the ports and terminals stand ready to expand the use of the Seaway,” said Terence Bowles, President and cEO of the St. Lawrence Seaway Management corporation (SLSMc). “Expanding use of the Seaway is the best way to promote transportation with effi.ciencies for the environment.” Putting the season increase into perspective, there were a number of sizeable challenges faced, including: • high-water flows prompting maximum outflows of Lake Ontario and reduced vessel speeds • north atlantic right Whales migrating into the Gulf of St. Lawrence, creating another reason for ships to slow down • Pilotage fees and the behind-the-scenes conflicts in courtrooms and at the docks, where ships sat idle waiting to load and unload • Early ice forming quickly amid plummet.ing December temperatures, activating coast GrEaT LaKES/SEaWay rEVIEW January-March, 2018 25 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. mcasphalt.com THE 2017 SEASON A DECADE OF TONNAGE TOTALS (Million MT) guard and Seaway crews to break ice and clear locks until the close of the season The season officially ended when the Federal Biscay cleared St. Lambert Lock on January 11, heading downstream. Peak Seaway performers. In addition to the 30 percent increase general cargo, dry bulk has been an accomplished commodity—top.ping tonnage totals. Over 2017, 10.50 million metric tons of dry bulk moved through the Sea.way. an increase in potash movements helped boost the cargo, which also includes in salt, ce.ment, pig iron and more. Iron ore shipments rebounded 29 percent over the 2016 level, accounting for 8 million metric tons of the Seaway’s seasonal total. While grain tonnage overall was down by 10.62 percent, canadian grain soared, represent.ing 21.8 percent of the system’s overall cargo flow. Many businesses are celebrating tonnage lev.els that are back to prerecession levels. at the Port of Detroit, 2017 was the stron.gest season since the 2009 downturn, accord.ing to Dan Deane, President of nicholson Ter.minal Dock company, with steel products strong and machinery/capital equipment for au.tomobile plants surging. The last time the Port of Duluth-Superior topped 17.8 million metric tons was 2007. “It’s been an extraordinary year for ship.ments of Minnesota iron ore from the Port of Duluth-Superior,” said adele yorde, Public re.lations Director for the Duluth Seaway Port au.thority. “Both domestic and international de.mand for steelmaking has remained strong.” Iron ore volumes at the Port of Duluth-Supe.rior amounted to 19.2 million net tons through December 2017, a 34 percent increase over 2016 and representing one of the strongest sea.sons in recent memory. The Port of Indiana-Burns harbor handled 40.80 30.71 36.60 37.60 39.07 37.10 39.89 36.25 35.01 38.12 5-year average 2.8 million tons in 2017, completing the high.est three-year total in the port’s history. Steel shipments were up 38 percent and large-di.mensional cargoes increased nearly 27 percent. For more port-specific coverage, please go to page 29. Interlake outcomes. Over the year, inter-lake shipments by U.S.-flag carriers totaled 85.74 million net tons, according to Lake carri.ers’ association (Lca). Of that total, iron ore represents 46 million tons and dry bulk 26.30 tons. (For a detailed breakdown on interlake cargo, please see the chart on page 28.) Interlake shipments of iron ore on the Great Lakes totaled 60.3 net tons in 2017, an increase of nearly 11 percent year over year—the highest total recorded since 2012. “The significant increase in iron ore ship.ments clearly illustrates that when american steel rebounds, the country depends on lakers to supply its iron ore,” said Jim Weakley, Presi.dent of Lca. “Without Great Lakes shipping, SEAWAY TRAFFIC RESULTS 2016-17 (thousands of metric tons) Commodity 2016 2017 Total Transits 3,774 4,119 Grain 11,266 10,069 Dry Bulk 8,892 10,485 Iron Ore 6,233 8,039 Liquid Bulk 3,685 3,790 General Cargo 2,628 3,426 Coal 2,248 38,121 Total Cargo 35,010 38,121 SOURCE: THE ST. LAWRENCE SEAWAY MANAGEMENT CORPORATION Growth commodities included iron ore exports, dry bulk cargoes, such as salt, coke and potash, and general cargoes, including imported steel and slab, project cargo, imported aluminum. THE 2017 SEASON Moving inlandwith intermodal Linkages between water and land transportation benefit end users Connecting the world to North American mines, makers and markets, the Seaway system is home to about 107 million people, 30 percent of the total population of Canada and the United States. According to a study by the Council of the Great Lakes Region, the maritime industry now contributes $5.8 trillion annually to the regional economy—representing 8 percent of the global gross domestic product. The water does more than bring cargo to the ports. It brings products into the continent’s heartland through the Seaway, utilizing economic and environmental advantages. The system is part of a seamless intermodal transportation flow—moving commodities from ship to rail and truck and from rail and truck to ship. It’s no coincidence that the major rail and highway hubs of the region—such as Chicago, Cleveland, Duluth, Burns Harbor, Toronto, Thunder Bay, Hamilton, Detroit and Toledo—are linked to major Great Lakes/Seaway ports. More than 100 Great Lakes/ Seaway ports form links in the intermodal transportation network. They connect 164 million metric tons of raw materials and finished products annually with the customers who transform them into everyday products, such as automobiles, washing machines, electricity and a variety of foods. Connected to the St. Lawrence River, Great Lakes and connecting waterways are: • 20,000 miles of highways • 50,000 miles of rail lines • Nearly 70 intermodal terminals • 15 major international marine ports • 50 regional marine ports • 12 of the top 50 North American airports Investments are being made in port connections with the railroads and in creating new and more efficient access to major interstates. New industrial parks are taking advantage of foreign trade zones and enabling manufacturers to operate near or on port property. National freight transportation plans and regional maritime strategies are being used to target funding for further advancements to North America’s intermodal linkages. U.S.-FLAG MOVEMENT ON THE GREAT LAKES 2012-16 AND FIVE-YEAR AVERAGE (net tons) Commodity 2013 2014 2015 2016 2017 Ave. 2013-2017 Iron Ore 43,852,041 45,624,207 40,864,953 44,074,832 45,988,815 44,080,970 Coal 18,237,640 17,772,489 17,654,314 12,964,877 13,332,497 15,992,363 Limestone 22,111,494 21,459,429 23,142,584 21,193,845 21,553,131 21,892,097 Cement 3,129,748 3,248,033 3,451,989 3,246,471 3,182,636 3,251,775 Salt 1,004,837 1,400,068 1,411,169 1,259,409 1,067,836 1,228,664 Sand 371,279 376,456 319,891 265,220 375,638 341,697 Grain 447,653 259,461 356,268 249,999 237,331 301,142 Totals 89,154,692 90,140,143 87,201,168 83,254,653 85,737,884 87,097,708 america would be dependent on foreign steel, jeopardizing hundreds of thousands of fami.ly-sustaining jobs that ring the Great Lakes.” Most of the interlake business involves moving iron ore to the steel mills along the Lower Lakes. Loadings at U.S. ports totaled 55.75 million tons, an increase of 13.4 per.cent, even with the port in Escanaba, Michigan closing in april. The iron ore mine that shipped through Escanaba, the Empire Mine in Palmer, Michigan, closed because of exhausted mine-able reserves. With the mine and port in Michigan’s Up.per Peninsula closed, all domestically mined iron ore now must transit the locks at Sault Ste. Marie, Michigan to feed blast furnaces in Indi.ana, Ohio, Michigan and Pennsylvania. The Lake Superior ore ports that ship through the Soo Locks saw their loadings increase by 9.9 million tons, or 23.6 percent. Shipments from canadian ports in the St. Lawrence Seaway totaled 4.6 million tons, a decrease of 12.4 percent. Looking at ’18. The Seaway system contin.ues to be a bellweather for the economy. The out.look for the north american economy is positive with the Eurozone continuing to improve. Overall, the forecast for system business for the new season remains positive, according to the Saint Lawrence Seaway Development cor.poration and St. Lawrence Seaway Manage.ment corporation. The canadian Gross Do.mestic Product (GDP) is expected to reach 2.1 percent in 2018, but slow thereafter, and the U.S. GDP is expected to reach 2.5 percent over the year and slow thereafter. While cargo is moving aboard ships and across docks, the Seaway entities continue their investment in infrastructure improve.ments. The commissioning of hands Free SOURCE: LAKE CARRIERS’ ASSOCIATION Mooring for all canadian locks is complete, with work progressing on the U.S. locks. Full implementation for system-wide use is sched.uled for the 2019 season. The canadian St. Lawrence Seaway Man.agement corporation’s asset renewal Program investment totaled c$59 million in the 2017/18 fiscal year; c$56 million is planned for the 2018/19 fiscal year. The U.S. Saint Lawrence Seaway Develop.ment corporation’s asset renewal Program in.vestment was $18.7 million in Fiscal year 2017. It is expected to fall between $9.5 and 18.5 million for Fiscal year 2018, subject to congressional approval. Traffic for the 2018 shipping season is ex.pected to be above the five-year average. cana.dian grain carry-over offers potential for a strong season opening. Export movements of iron ore are forecasted to remain strong on sustained de.mand from world markets. Momentum for gen.eral cargoes, including steel and slab, is expect.ed to lead to robust traffic in 2018. Janenne Irene Pung . THE 2017 SEASON TOTALS & TRENDS Ports, terminal operators summarize cargo movements for the season GrEaT LaKES/SEaWay rEVIEW January-March, 2018 29 WE KNOW WHAT POWERS YOU. Sterling Fuels provides a full range of fuels and ExxonMobil lubricants, all of which meet the strictest industry standards. Just like the service we offer, whether by water, land or truck. WINDSOR | SARNIA | HAMILTON | HALIFAX STERLINGFUELS.CA 3665 Russell St. Windsor, Ontario N9C 1E9 Tel: 519 253 4694 Email: info@sterlingfuels.ca THE 2017 SEASON METRIC TONS SHORT TONS 2017 00 2016 194,195 214,063 5-year ave. na na The Port of Buffalo Gateway Trade center, however, experienced the worst season in its history, according to Patricia Schreiber, Port Di.rector, with no tonnage moving through the port during the 2017 season. In 2016, about 194,000 metric tons was recorded. METRIC TONS SHORT TONS 2017 3,600,000 3,968,316 2016 3,600,000 3,858,085 5-year ave. na na The Port of cleveland handled 3.6 million metric tons of cargo in 2017, up from 3.5 million metric tons the previous season. International cargo was up 19 percent over 2016 due to in.creases in non-containerized steel, container movements and project cargo handled by the port’s terminal operator, Federal Marine Terminals. The port also formed a new relationship with Logistec, which now manages and oper.ates the bulk terminal, providing iron ore to arcelorMittal and limestone to an energy plant on the Ohio river. Primary cargoes through the port were iron ore, breakbulk, containers, lime.stone and dry cement. Looking ahead, the port is targeting more in.vestment in infrastructure and services. “In 2018, we will begin the planning and de.sign phase for a number of infrastructure im.provements, such as an expansion of our main gate and the rehabilitation of the bulkhead at cleveland Bulk Terminal, which will significant.ly improve the operational efficiencies of our in.ternational and bulk cargo terminals,” said David Gutheil, Vice President, Maritime and Logistics. “These projects will be completed in 2019.” “We are optimistic about the 2018 cargo sea.son due to anticipated continued growth in non-containerized steel, project cargo and con.tainerized cargo,” he added. METRIC TONS SHORT TONS 2017 511,528 563,862 2016 430,597 474,651 5-year ave. 427,166 470,869 nicholson Terminal Dock co. completed its 89th year of operating in the Port of Detroit in 2017, and according to company President Daniel Deane, had its strongest season since the 2009 downturn. a total of 511,528 metric tons moved through the terminal, an increase of nearly 19 percent from 2016. Steel product vol.umes were strong, making up 85 percent of to.tal tonnage. Bulk products and machinery/ equipment were 10 and nearly 4 percent of the total, respectively, while aluminum accounted for the remaining traffic, at just over 1 percent. While there were no new commodities in 2017, Deane said the return of capital projects for manufacturing and refining businesses were welcome signs. however, he said many of the Port of Cleveland DETROIT 851014+ Primary Cargoes . Steel . Bulk Products . Machinery/Capital Projects . Aluminum THE 2017 SEASON DULUTH-SUPERIOR 56293102+ Primary Cargoes . Iron Ore . Coal . Limestone . Grain . Other terminal’s clients face challenges that could have an impact on business going forward, including aggressive pilotage increases, lack of harmoni.zation on ballast water regulations within the State of Michigan and stringent inspection re.quirements on containers, boxed and skidded machinery. “We are cautiously optimistic for the 2018 season,” Deane said. “With 85 percent of our tonnage being steel products, the rumbles from the Beltway for protectionism for the domestic steel industry could greatly impact our clients and, ultimately, the cost of materials to our manufacturing base in Michigan.” The company continues to invest in equip.ment, including new Taylor lift trucks and con.veyor equipment. Updates to drainage and pavement are ongoing. METRIC TONS SHORT TONS 2017 31,979,881 35,251,743 2016 27,305,137 30,098,726 5-year ave. 31,550,724 34,778,679 a surge in iron ore and increases in inbound shipments of limestone and coal helped push the season tonnage total at the Port of Duluth-Superior to 32 million metric tons—17 percent ahead of 2016. nearly 18 million metric tons of iron ore moved through the port, making 2017 one of the strongest seasons in a decade for iron ore. “a surge in domestic demand for iron ore cou.pled with a rise in exports to asia during 2017 boosted the season’s throughput some 34 percent over the previous shipping season and 23 percent ahead of the five-year average,” said Kevin Beard.sley, Interim Executive Director at Duluth Seaway Port authority. “Duluth-Superior tonnage figures could have climbed even higher had Mother na.ture not blasted us with frigid arctic temps for weeks during December/early January, which hampered loadings and slowed transits.” The Duluth Seaway Port authority completed a $2.8 million project in 2017 to improve traffic flow at the clure Public Marine Terminal. The project added a new road to ease congestion, ex.panded office space for Duluth cargo connect operations, rehabbed a section of track and in.cluded a new truck scale and security office—all of which supported operations of the new cn Duluth Intermodal Terminal, which opened on-site in March 2017. Work is underway to replace fenders on berths 5, 6 and 7 of the clure Terminal. a $2.4 million intermodal terminal expansion is underway. according to Beardsley, manufacturing and steelmaking look strong, which bodes well for the 2018 season. The Great Lakes Towing Company provides safe and reliable towing services throughout the Great Lakes with tugs serving more than 40 ports and harbors across all eight U.S. Great Lakes States. The Towing Company’s state-of-the-art shipyard, Great Lakes Shipyard, provides new construction, custom fabrication as well as maintenance and repairs at its headquarters in Cleveland, Ohio. SHIPYARD SERVICES • Dockside Repa

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