Vol.47 No.1 JUL‑SEP 2018

Economic impact of shipping . Tariffs and shipping . P3s build Monroe . New Poe-sized lock Interlake Steamship Great Lakes Fleet Key Lakes, Inc. Ports of Indiana CONTENTS The international maritime magazine of the Great Lakes/St. Lawrence Seaway system July-September 2018 34 9 ECONOMIC IMPACT Driving the economy9 A new landmark study13 Ontario and Quebec19 INTERNATIONAL TRADE Tariffs and shipping23 INTERVIEW Building consensus27 SPECIAL SECTION: PORT OF MONROE Keeping it nimble and simple34 WATER LEVELS Exceptional conditions43 LOCKS New Poe-sized lock moves forward44 SHIPBUILDING & SHIP REPAIR Ship fixers53 INTERVIEW A focus on water56 TRAINING & RECRUITMENT Sparking Interest59 TECHNOLOGY Creating a test bed for technologies65 Self-tracking67 DEPARTMENTS Dateline5 Guest Editorials Cross-border shipping33 Build the lock51 Workforce development63 On the Radar80 MARITIME HERITAGE Grace and guts70 HISTORY Maintaining the North American connection72 MEET THE FLEET A tale of two cement carriers74 MARITIME HERITAGE Discovering the Dossin76 MEET THE FLEET Expanding the fleet79 Marine Pollution Control MPC THE INTERNATIONAL MARITIME MAGAZINE OF THE GREAT LAKES/ST. LAWRENCE SEAWAY SYSTEM VOLUME 47 July-September, 2018NUMBER 1 BUSINESS AND EDITORIAL OFFICE 221 Water Street Boyne City, Michigan 49712 USA (800) 491-1760 FAX: (866) 906-3392 harbor@harborhouse.com www.greatlakes-seawayreview.com EDITORIAL AND BUSINESS STAFF Jacques LesStrang Publisher Emeritus Michelle Cortright Publisher Janenne Irene Pung Editor Cris Shankleton Creative Director Jen Shock Production Manager Tina Felton Business Manager Tamara Weidlich 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, Executive Vice President & Chief Operating Officer, CSL Group; Wayne Smith, Honorary Director, 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. © 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. AVAILABLE IN THESE FORMATS PRINT DIGITAL MOBILE Between issues of Great Lakes/Seaway Review, stay current with our free news service, Digital Dateline, at www.greatlakes-seawayreview.com/digdateline/ Adonis GREAT LAKES/ST. LAWRENCE SEAWAY DATELINE Ruge inducted into Great Lakes Marine Hall of Fame Mark Ruge Mark Ruge has been named Marine Man of the Year and in.ducted into the Great Lakes Ma.rine Hall of Fame in Sault Ste. Marie, Michigan. He is the first lawyer given the honor. Ruge has been involved in a broad range of legislative initia.tives to promote Great Lakes shipping: • Blocking the decommissioning of the heavy-duty icebreaker Mackinaw, which led to the construction and christening of a new Mackinaw in 2006 • Working with Congress to develop a new program to encourage repowering the U.S.-flag steamships when the North Ameri.can Emissions Control Area threatened the fleet in 2008 • Advocating for a second Poe-sized lock, which has since been endorsed by President Donald Trump • Defending the Jones Act and other U.S. maritime cabotage laws • Serving as Washington, D.C.-based counsel for the Lake Carriers’ Association • Advocating for the three U.S. Great Lakes pilots associations, the Great Lakes Maritime Academy in Traverse City, Michigan and five other U.S. state maritime academies • Helping preserve the S.S. Badger when engineering challenges could have led to the carferry’s retirement “Great Lakes shipping was not fully appre.ciated in Washington until Mark took the leg.islative helm,” said James Barker, Chairman of The Interlake Steamship Company. “Words cannot express my admiration for Mark.”. U.S. House authorizes 2018 WRDA, a step toward twinning the Poe Lock The U.S. House passed a bill September 13, 408 to two, authorizing the federal govern.ment to spend $922 million on a new naviga.tion lock in northern Michigan. The bill, the 2018 Water Resources Development Act (WRDA), now faces the Senate. If passed there, it will go before the President. WRDA funds the nation’s investments in in.frastructure, including ports, inland waterways, locks, dams, flood protection and ecosystem restoration—as administered by the U.S. Army Corps of Engineers. The multi-faceted bill in.volves four titles, each addressing different as.pects of national infrastructure needs. While the bill doesn’t guarantee funding for the new Poe-sized lock in Sault Ste Marie, it is a step forward in defining a plan that could take up to 10 years to complete and em.ploy as many as 15,000 people in the Upper Peninsula during construction. According to U.S. Representative John Moolenaar, R-Midland, House passage of the legislation exemplifies widespread, binational support for a new lock in the Soo. As Michi.gan’s only member of the Appropriations Com.mittee, he is likely to be a key player in secur.ing funding.. Duluth Seaway Port Authority names Executive Director Deb DeLuca Deb DeLuca is the eighth Ex.ecutive Director of the Duluth Seaway Port Authority (DSPA). Having previously served as Government and Environmental Affairs Director, she is the first woman to lead the organization. “We are fortunate to have had a history of strong leaders at the Duluth Sea.way Port Authority,” said DSPA board Presi.dent Ray Klosowski. “Staff and board mem.bers appreciate her thoroughness, her lead- ership style and her profound commitment not only to the mission of this organization but also to the well-being of our entire port community.” DeLuca brings decades of public and pri.vate sector experience to the job. She has spent the last four years tracking regulatory issues and legislation for DSPA, the Port of Duluth-Superior and the Great Lakes/Seaway system. She currently chairs the Harbor Tech.nical Advisory Committee (HTAC) for the Duluth-Superior Metropolitan Interstate Council, serves on the Executive Committee of the Duluth Area Chamber of Commerce and represents DSPA on the mayor’s Econom.ic Development Coalition. Earlier this year, she was one of just 36 civilians selected to participate in the Joint Civilian Orientation Conference, a public liaison program of the U.S. Department of Defense. A noted expert on redevelopment projects and environmental policy, DeLuca was a found.ing board member of Minnesota Brownfields. As owner and principal of DeLuca Strategies for 14 years prior to joining DSPA, she provid.ed consulting services to public, private and nonprofit sector clients in the arenas of grant writing, implementation of funding strate.gies, project management, government rela.tions and public outreach.. Model designer releases commissioned mini cruise ships for Victory Bob May’s latest models are being sold aboard the cruise ships they replicate. At 12 inch.es long, 4 inches tall and 2.5 inches wide, the mini Victory I and Victory II offer passengers keepsakes of the ships carrying them through their binational voyage—the intention of Victo.ry Cruise Lines when commis.sioning Lake Freighter Minis to create the custom models. Other than the names on the vessels, the sister ships are identical—whether full sized or as miniatures. May spent about three months developing the model kit, which in.volves the design work, illustrated instruc.tions and label. Once complete, he sent the work to a local print shop in St. Clair Shores, Michigan to transform his work into paper model kits. Prior to Victory, May has been commis.sioned for other notable minis, such as S.S. Badger, M/V Chi-Cheemaun, M/V Coho, M/V Huron Spirit and S.S. Lane Victory Museum, S.S. Col. James M. Schoonmaker Museum and S.S. City of Milwaukee Museum.. Fincantieri Bay Shipbuilding contracted to build 740-foot, self-unloading barge VanEnkevort Tug & Barge is contracting with Fincantieri Bay Shipbuilding to con.struct a new self-unloading barge for trans.porting bulk products throughout the Great Lakes region. The vessel will be constructed in Sturgeon Bay, Wisconsin. VanEnkevort Tug & Barge, of Escanaba, Michigan, operates three articulated tug and barges (ATBs) on the Great Lakes. This new.est self-unloading barge will be delivered with the first Great Lakes ballast water treat.ment system meeting EPA standards. The barge is scheduled for completion in mid-2020.. Rep. Jack Bergman named 2018 Great Lakes Legislator of the Year Jack Bergman Michigan Congressman Jack Bergman (R) has been named 2018 Great Lakes Legislator of the Year by members of the Great Lakes Maritime Task Force (GLMTF). “Although this is just his first term, Rep. Bergman has quickly become recognized as a leader on Great Lakes and Seaway issues,” said Jim Weakley, President of GLMTF in 2018. “This reflects that his district fronts on three of the five Great Lakes: Superior, Michigan and Huron.” Weakley, who is also President of the Lake Carriers’ Association, said GLMTF is especially grateful that Bergman spoke di.rectly to President Donald Trump about the need for a second Poe-sized lock at Sault Ste. Marie, Michigan. “Within hours of Congressman Bergman talking to the president, our nation’s leader publicly declared his support for fixing the Soo Locks. That support, coupled with the new benefit/cost ratio of 2.42, puts the proj.ect in the best spot it’s been in years.” Bergman’s commitment to adequate U.S. Coast Guard icebreaking resources, Great Lakes dredging and the Jones Act were also factors in his selection.. New Canadian ferry delivers A new 92-meter ferry built for the Que.bec Ferry Company has delivered. The final commissioning of the environmentally ad.vanced vessel took place at the Chantier Da.vie Canada shipyard in June 2018. The M/V Armand-Imbeau II operates on LNG fuel and uses Wärtsilä’s integrated sys.tem which includes dual-fuel engines, fuel storage, a control and supply system and ex.tended project management. By operating the vessel on LNG fuel, the ferry operator minimizes the environmental impact of its operations. The decision is also in line with Québec’s Maritime Strategy, which seeks to protect the integrity of the province’s river and marine ecosystem. The delivery marks the first LNG-fueled ferry to be built in North America. The ferry operates on the Saguenay River on the Tadoussac to Baie-Sainte-Catherine route. It is capable of carrying more than 430 passengers and 110 cars or 16 tractor units.. Canada to acquire three interim icebreakers The Government of Canada has issued an Advanced Contract Award Notice (ACAN) to Chantier Davie of Lévis, Quebec for the ac.quisition and conversion of three medium commercial icebreakers, a move that con.firms Canada’s intention to enter into a con.tract with the shipyard. These ships will provide interim capabil.ity for the Canadian Coast Guard, while re.placement vessels are being built under the National Shipbuilding Strategy. The plan calls for: • Purchasing a class of three existing An.chor Handling Tug Supply icebreakers • Using the ships to backfill the Canadi.an Coast Guard fleet while new ships are un.dergoing maintenance, refit and vessel life extension • Operating the ships to conduct critical icebreaking duties for the southern winter.time program and as support for Arctic sum.mertime programs • Putting the first ship to work icebreak.ing during the current season. OCTOBER 2-3 2018 Great Lakes Commission Annual Meeting The Conrad Indianapolis, Indianapolis, Indiana www.glc.org/meetings/annual 2-4 Breakbulk Americas George R. Brown Convention Center Houston, Texas www.breakbulk.com 3-4 SNAME Great Lakes/Great Rivers 2018 Fall Meeting Holiday Inn St. Louis Downtown – Convention Center, St. Louis, Missouri www.sname.org 7-10 American Association of Port Authorities Annual Convention Valparaiso Cruise Terminal, Valparaiso, Chile www.aapa-ports.org NOVEMBER 12-14 GST North America/Shipping 2030 North America Intercontinental Times Square New York, New York maritime.knect365.com/green-ship-tech-na/ 13-15 2018 HWY H2O Conference Hilton Toronto Airport Hotel & Suites Mississauga, Ontario www.hwyh2o-conferences.com DECEMBER 11-12 Natural Gas for High Horsepower Summit Long Beach Convention Center Long Beach, California www.hhpsummit.com Port of Erie the scene of historic CMI Energy shipment More than 13 million pounds of components arrived in Erie en route to New Castle, Pennsylvania. CMI Energy designs, engineers, procures and provides aftermarket support for heat recovery steam generators worldwide. Through a recent contract, the company brought an 86,890-square-foot and 13.5-mil.lion-pound shipment of heat recovery steam generators into the Port of Erie. The load weighed more than the total tonnage received in the port over the last eight years, according to Brenda Sandberg, Executive Director at the Erie-Western Pennsylvania Port Authority. This is the first time since the 1990s that a large-scale project for CMI Energy has come into the port. The company chose the port based on the local economy and the port authority’s willingness to accommodate the large shipment. CMI partnered with Donjon Shipbuilding and Repair and Barnhart Transportation for logistics. The cargo took up one acre, with the generators generally standing over 150 feet with tacks. Once unloaded, the components were transported to New Castle for assem.bly, where they are being used to convert natural gas to electric to provide power to Pennsylvania residents.. Andrie Inc. REGIONAL CALENDAR REGIONAL CALENDAR Duluth Cargo Connect Duluth Seaway Port Authority Port of Duluth Fednav Direct FMT FALLine ECONOMIC IMPACT Driving the economy Great Lakes/Seaway shipping industry conducts four-tier study to examine its impact STEVE FISHER Executive Director American Great Lakes Ports Association On July 18, 2018, a consortium of Great Lakes and St. Lawrence maritime industry organizations released a comprehensive economic im.pact analysis of the entire binational navi.gation system. Entitled, “Economic Im.pacts of Maritime Shipping in the Great Lakes-St. Lawrence Region,” the study seeks to inform the navigation communi.ty, transportation planners, government policymakers and the general public. The study takes a snapshot of the 2017 navigation season and measures key eco.nomic contributions made by cargo moving through Great Lakes ports and terminals. The study’s sponsors include the St. Law.rence Seaway Development Corporation, the St. Lawrence Seaway Management Cor.poration, the American Great Lakes Ports Association, the Lake Carriers’ Association, the Chamber of Marine Commerce and the Shipping Federation of Canada. A 12 mem.ber steering committee provided oversight to the study team led by Martin Associates of Lancaster, Pennsylvania, a leading provider of economic analysis and consulting services to the maritime industry. In conducting the analysis, Martin Asso.ciates interviewed more than 700 individual companies with marine-related operations in the eight Great Lakes states, Ontario and Quebec. Based on economic data gathered during the interview process, economic im.pact models were developed to measure im.pacts at 40 U.S. and Canadian Great Lakes ports. From these local models, Martin As.sociates was able to expand the impact esti.mates of commercial navigation to the state and provincial level and, ultimately, to the country and regional level. Due to unreliable or unavailable tonnage data from the federal governments, the study team collected detailed shipment data direct.ly from the carriers and the Seaway. This lev.el of cooperation allowed the analysis to be much more accurate than past studies. Every effort has been made to present the data in a flexible format that is useful to as many stakeholders as possible. For this reason, the study results are expressed in both metric tons and short tons. Economic values are expressed in both U.S. dollars and Canadian dollars. The report has been produced in both English and French. Similarly, the study organizes the data in multiple ways, with the goal of present.ing its findings from multiple perspec.tives. Economic impacts include the num.ber of jobs directly supported by maritime commerce, the number of jobs “induced” when individuals spend their wages and the number of indirect jobs created when businesses spend on services and equip.ment. The study documents the amount of wages paid, the business revenue gen.erated by firms and the local consumption spending by firms purchasing goods and services in their communities. Finally, the study documents the federal, state and lo.cal tax contributions from maritime eco.nomic activity. The study results for each of these economic metrics are presented at the region level, the country-level and state and provincial levels. Study results are also presented by flag of carriage. The final report is actually four stud.ies bundled together. Each of the four studies documents impacts from one of four perspectives. First, the report includes an analysis of the economic impacts of the Great Lakes/St. Lawrence Seaway system. This perspective is a traditional take on the navigation system and includes all commercial activity from Duluth to Montreal. However, it only in.cludes those Quebec impacts that somehow have a nexus with the Great Lakes. For ex.ample, St. Lawrence River terminals that handle Great Lakes transshipped cargo. The second study takes a broader per.spective and includes all Great Lakes and St. Lawrence River commercial activity, in.cluding commerce on the St. Lawrence that has no nexus with the Great Lakes. For ex.ample, the impacts of container shipping between the Port of Montreal and overseas ports are included. Similarly, the impacts of domestic commerce between St. Lawrence River ports are included. The third study isolates the economic im.pacts of the St. Lawrence Seaway. This per.spective is meant to inform policymakers and navigation stakeholders of the specific contri.butions of the Seaway infrastructure and in.cludes impacts from any maritime commerce that transits any of the Seaway locks. Finally, the fourth study isolates the eco.nomic impacts of the Soo Locks and in.cludes impacts from any commerce that transits the locks. This data will be of critical importance as Congress considers funding for construction of a new Poe-sized lock. As the Great Lakes/St. Lawrence mari.time industry works to improve public un.derstanding of its role in the region’s econ.omy, this study will serve as a foundational data source. It is our hope that policymak.ers will look to it as a reliable source of in.formation and that stakeholders use it to help tell the positive story of Great Lakes/Seaway and St. Lawrence shipping.n ECONOMIC IMPACT                        Flow of Economic Impacts Generated by Maritime Shipping GRAPHICS THROUGHOUT THIS SECTION ARE SOURCED TO ECONOMIC IMPACTS OF MARITIME SHIPPING IN THE GREAT LAKES-ST. LAWRENCE REGION. Groupe Desgagnes ECONOMIC IMPACT                        Regional Jobs 13% Direct Jobs by Flag . U.S. Flag39,522 . Canadian Flag28,498 . Foreign Flag10,380 Total 78,400 51% 36% Direct Jobs by Commodity Steel General Cargo Iron Ore Grain Stone/Aggregate Cement Salt Other Dry Bulk Liquid Bulk Coal Ferry Not Allocated 9,913 487 28,605 3,184 6,010 2,653 3,497 4,108 5,403 3,820 942 10,154 Note: containerized cargo part of general cargo Toledo Lucas County Port Authority Port of Toledo Toledo Port SLSMC Saint Lawrence Seaway Management Corporation St. Lawrence Seaway Management Corporation ECONOMIC IMPACT A new landmark study Results of binational study evidence commercial shipping’s benefits SOURCE: ROBERT WELTON CRAIG H. MIDDLEBROOK Deputy Administrator Saint Lawrence Seaway Development Corporation To say “a new landmark study” risks sounding either too grandiose or too mundane. Yet, how else to describe the study released in July entitled, “Eco.nomic Impacts of Maritime Shipping in the Great Lakes-St. Lawrence Region?” It is in.deed new, being an expanded update of the economic impact study completed in 2011. And, it is also a landmark achieve.ment, as the study represents the most comprehensive and in-depth analysis ever completed of the U.S. and Canadian im.pacts and benefits of commercial naviga.tion in the Great Lakes/St. Lawrence Sea.way and St. Lawrence River region. What does the study tell us? The study makes clear that commercial mari.time navigation in the Great Lakes/St. Lawrence Seaway system directly and sig.nificantly supports the vibrant and im.mense economies of the region’s eight Great Lakes states and two provinces. If these states and provinces were consid.ered as a single economy, their combined economic output, in terms of gross do.mestic product, would constitute the third largest economy in the world, after the United States and China. With economic output estimated at $6 trillion in 2017, the region accounts for 30 percent of combined Canadian and U.S. economic activity and employment. With.in this massive economy, commercial mar.itime navigation in the Great Lakes/Seaway system moves 143.5 million metric tons of cargo valued at $15.2 billion. This com.mercial activity supports 237,868 jobs in the U.S. and Canada and $35 billion dol.lars of economic activity. If you expand the geographic analysis of the impacts to include commercial traffic along the St. Lawrence River below Mon.treal (within Quebec), the study shows that cargo moved within the Great Lakes/Sea.way and St. Lawrence River region equals 230.9 million metric tons valued at $77.4 billion and sustains 328,543 jobs and $45.6 billion in economic activity. These impressive facts and figures alone would qualify this as a landmark study. Broad-reaching results. Beyond these impressive numbers, however, what makes this study historic is that an analysis of this scope, complexity and quality has almost become, dare I say it, routine. I clearly re.member the context within which this study’s predecessor was completed and re.leased back in 2011. At that time, public debate surrounding the benefits of com.mercial navigation was intense and decid.edly skeptical—if not hostile—to the idea that commercial navigation was making significant contributions to the economy and overall quality of life of the region. At that time, what little data were avail.able on the topic were woefully inade.quate, incomplete and, in many cases, in.accurate. It was at that moment that a broad-based, binational group of stake.holders decided to come together to do the hard work of researching how and to what extent commercial navigation provided economic benefits to the region. Such an analysis and the commitment to publish the results no matter what they showed had never been done before. It was a bold, but necessary commitment; bold because no one knew what the overall im.pacts were as no prior study of this type ex.isted and necessary because the public was demanding a full and fair accounting of what, exactly, commercial navigation’s con.tributions to the region were. The publica.tion of that 2011 study was a watershed moment for the Great Lakes/Seaway sys.tem. That study, so carefully designed to be accurate, comprehensive and credible, fun.damentally changed the nature of the pub.lic debate about commercial navigation’s contributions to the quality of life in the Great Lakes region. This year’s study won’t radically change the nature of the public discourse. But it doesn’t have to—and that is what makes it so significant. The public still demands this information, just as it did seven years ago, but the data are now needed so the public can better understand what it knows to be true: commercial navigation provides tre.mendous economic benefits to the citizens of the region. The ability to again provide the public with complete and accurate in.formation regarding one of the most com.plicated international waterways in the world is a landmark achievement. The overall quality of public discourse on why commercial navigation matters has improved tremendously since 2011. That’s good news for everybody. This year’s eco.nomic impact study provides up-to-date, accurate and even more data on how com.mercial navigation provides economic ben.efits to the citizens of the Great Lakes/St. Lawrence Seaway region. That’s an historic achievement worth celebrating.n With economic output estimated at $6 trillion in 2017, the region accounts for 30 percent of combined Canadian and U.S. economic activity and employment. U.S. $                                      35+19+12+8+6+6+5+4+3+1+1+FF 23+21+17+15+8+5+4+2+2+2+1+FF Metric Tons Moved Cargo Value TOTAL $15.2b TOTAL 143,564 (1,000) . Cement . Coal . General Cargo . Grain . Iron Ore . Other Dry Bulk . Other Liquid Bulk . Petroleum Products . Salt . Steel . Stone/Aggregate Economic Impacts by Country. U.S. . Canada Jobs Economic Activity Personal Income Business Revenue Local Purchases Taxes 62+38+LL 74+26+LL 73+27+LL $35.0b 237,868 $14.2b MAK Toromont CAT 72+28+LL 70+30+LL 66+34+LL $28.1b $8.0b $6.6b CSL Canada Steamship Lines Any Type Dry Cargo Bulk Commodity GREAT LAKES | BULK SELF-UNLOADING IRON ORE | STONE | COAL VanEnkevort Tug & Barge, Inc. VTB Van Enkevort Tug & Barge, Inc. SEEKING MARINE PROFESSIONALS MATES, ENGINEERS AND AB’s / DECKHANDS Days: (906) 786-1717 Fax: (906) 786-1700 vtbarge@vtbarge.com 909 N. Lincoln Rd. Escanaba, MI 49829 Karl Senner LLC “Purvis Marine is very pleased with the longevity of the REINTJES Gearboxes onboard the M/V Anglian Lady with over 93,000 running hours. When it came time for overhaul the Karl Senner Service Team responded quickly and efficiently to keep downtime at a minimum.” —Jack Purvis, President Owner: Purvis Marine Limited Shipyard: Dockside Shipfacilities B.V. Karl Senner, LLC is the proud distributor of REINTJES Marine Gearboxes, Steerprop Azimuth Thrusters, and EPD Electrical Systems throughout North America. WWW.KARLSENNER.COM ECONOMIC IMPACT Metric Tons (1,000) / U.S. $ (1,000)                                                    State by state New study includes economic impact of the Great Lakes states THE INTERCONNECTEDNESS of the marine shipping industry in the Great Lakes/St. Law.rence Seaway system makes it important to have a study that measures the value of the entire navigation system. It is also valuable to have the state data breakouts, which reveal the synergies of the system and underscore the value of partnerships to the collective op.erations system-wide. The study measures the economic impacts in each of the eight Great Lakes states that are supported by cargo moving via the maritime mode. The job impacts, in particular, are indica.tive of specific commodity movements support.ing key industries such as agriculture, steel production and construction in the region. This can largely be attributed to the robust steel production and manufacturing industry in those states, which rely on waterborne com.merce for delivery of raw materials ultimately used for auto production, appliance manufac.turing, road construction and many other products. Numbers for the remaining states are: • Cargo activity at ports in Wisconsin sup.ported 7,484 jobs, as exports of grain, mining equipment, coal and iron ore from the state’s ports are critical to the manufacturing, energy and agricultural sectors there. • Great Lakes/Seaway shipping supported 6,476 jobs in Illinois where local manufactur.ers rely on ships to deliver semi-finished steel products, low-sulfur coal for delivery to elec.tric utilities for power generation and a large amount of salt for deicing of roads in winter. • In Minnesota, shipping supported 6,161 jobs, highlighted by the movement of iron ore critical to the mining sector and the export of farm products vital for the agricultural sector in the state. • Waterborne commerce through the sys.tem supported 1,349 jobs in New York, com.prised mainly of salt for winter road maintenance, cement and aggregate for the construction in.dustry and other materials for the manufactur.ing and energy sectors. • Great Lakes/Seaway cargo activity in Pennsylvania, comprised mainly of project car.goes such as diesel-electric locomotives and other high value equipment, supported 757 jobs in the state. This study validates what has long been known, that the Seaway system is crucial to the economies of both the United States and Canada, providing a multitude of well-paying jobs, on land and at sea.n Economic Impacts by State ILLINOIS 10,289 Tonnage Handled 6,476 Total Jobs $830,908 Economic Activity INDIANA 26,986 Tonnage Handled 66,158 Total Jobs $13,726,685 Economic Activity MICHIGAN 59,014 Tonnage Handled 25,910 Total Jobs $4,160,713 Economic Activity NEW YORK 960 Tonnage Handled 1,349 Total Jobs $141,866 Economic Activity MINNESOTA 31,231 Tonnage Handled 6,161 Total Jobs $1,483,766 Economic Activity OHIO 39,599 Tonnage Handled 33,168 Total Jobs $3,745,199 Economic Activity WISCONSIN 27,086 Tonnage Handled 7,484 Total Jobs $1,430,900 Economic Activity PENNSYLVANIA 603 Tonnage Handled 757 Total Jobs $90,468 Economic Activity Metric Tons (1,000) / U.S. $ Collected and Port Impacts Tonnage Handled Jobs Economic Activity Personal Income Business Revenue Taxes 29+20+16+14+14+5+1+1+LL 45+22+18+5+4+4+1+1+LL 54+16+14+6+5+3+1+1+LL 147,464 $25.6b 195,768 50+18+17+5+4+4+1+1+LL 55+15+14+6+6+2+1+1+LL 46+21+17+5+5+4+1+1+LL $20.3b $4.6b $10.5b Algoma Central Corporation ECONOMIC IMPACT Port of Montreal Ontario and Quebec Economic impact breaks out provincial contributions to binational economy BRUCE BURROWS President Chamber of Marine Commerce In Canada’s federal political corridors, inland shipping can often take a back.seat to the importance of the nation’s seaports on the West Coast and the export role they play with key trading partners. Much attention is paid to investing infra.structure dollars to clear bottlenecks lead.ing to these ports and developing policy and regulation to deal with real and per.ceived associated environmental risks. This western focus often overshadows the very significant benefits (both economic and environmental) of the inland marine high.way that travels right into the economic and industrial heartland of Canada. But thanks to the new economic impact report from Martin Associates, “Economic Impacts of Maritime Shipping in the Great Lakes-St. Lawrence Region,” government and policymakers for the first time have data that shines a bright light on the true economic value of inland shipping. The study presents the economic impacts of the domestic and international cargo handled at ports in the Great Lakes, its connecting rivers, the St. Lawrence Seaway and the Lower St. Lawrence River. The results underline the importance of this waterway as a strategic transporta.tion and trade corridor for Canada, both domestically and with our trading part.ners in the United States and throughout the world. Provincial impacts. In 2017, more than 185.2 million metric tons of cargo was handled at Ontario and Quebec ports along this 3,700-kilometer waterway. That port activity supported 181,000 di.rect, indirect and induced jobs and C$26 billion in economic activity (comprised of business revenues and personal income re-spending) in Canada. More than 60 percent of these impacts were in Quebec, with the balance in Ontario. The study also showed that marine- related industries and employees contribut.ed significantly to the health, education and general prosperity of Canadian society through their annual C$5.7 billion contri.bution to federal and provincial/local taxes. Delve a little deeper and things get even more interesting. The top cargoes transported by volume at these Ontario and Quebec ports were commodities like iron ore, grain, liquid bulk (asphalt and petroleum products), other dry bulk (such as bauxite and fertilizers), stone/ aggregates and salt. These cargoes fulfill a number of im.portant roles. Firstly, the raw materials support domestic industries such as min.ing, steelmaking, aluminum production, advanced manufacturing (automotive and equipment), construction, food produc.tion and energy production. This supply chain is so fundamental that nearly 50 percent of the direct jobs im.pacts in Ontario and Quebec outlined in this study are at steel mills, alumina smelt.ers and iron ore, salt and alumina mines in proximity to the ports. These jobs are com.pletely dependent on these cargoes being delivered by ship and would likely disap.pear without the navigation system. As Sean Donnelly, President and CEO, of ArcelorMittal Dofasco, puts it: “More than 185 ships carry iron ore and coal to our Hamilton docks every year for steel production, as well as other materials such as steel slabs and coke. It provides a direct, cost-effective and sustainable way to transport these huge volumes of raw materials. Our success is dependent on the success of our supply chain, including the St. Lawrence Seaway and the ship op.erators that move our material.” Secondly, the study’s data shows that the waterway is a significant import/ex.port gateway both for cross-border and international trade. More than 58.8 mil.lion metric tons of cross-border cargo was shipped between ports in the U.S. Great Lakes states and provinces of Ontario and Quebec in 2017. And more than 90 million metric tons of cargo arriving from or heading to overseas markets was handled at Ontario and Que.bec ports. This includes Canadian exports such as grain, pulses and oilseeds from the Prairies, Ontario and Quebec; potash from Saskatchewan; and iron ore from Quebec. Containerized goods (both import and ex.port) handled at Quebec ports along the St. Lawrence River (mainly the Port of Montre.al) were worth more than C$60 billion. Shipping: a key contributor. Thirdly, the fact that ships are able to carry these goods cost-effectively, safely and sustain.ably not only enhances the global compet.itiveness of Canadian industries but it also directly impacts those who live in the re.gion. Previous studies have shown that Great Lakes/Seaway ships can have a pos.itive impact on public safety (relative to other modes of transport), are the most fuel-efficient way to transport goods, pro.duce the least amount of carbon emis.sions and that one Seaway-sized ship can carry as much as 963 trucks in just one load. As a result, using inland marine transportation significantly reduces high.way congestion in Canada’s most popu.lous region and has significant potential to address the Canadian government’s ambi.tions to tackle climate change. The current Canadian government has emphasized the importance of developing policy based on science and robust data as evidence rather than just sentiment. This economic study provides a powerful tool to persuade federal and provincial govern.ments of the merits of directing more infra.structure money to support the growth of Great Lakes/St. Lawrence River shipping and to develop supportive policy through a different lens—namely one that recognizes the broad benefits of this “other” national trade and transportation corridor.n The results underline the importance of this waterway as a strategic transportation and trade corridor for Canada, both domestically and with our trading partners in the United States and throughout the world. ECONOMIC IMPACT C $                  Economic Impacts by Flag of Carriage Jobs Economic Activity Personal Income Business Revenue Taxes 36+32+32+LL 47+27+26+LL 44+29+27+LL 42+30+28+LL 46+28+26+LL $11.7b TOTALS 328,543 $23.3b $59.2b $49.0b . U.S. Flag 118,106 $27.1b $10.9b $21.6b $4.9b . Canadian Flag 105,993 $16.7b $6.3b $14.0b $3.3b . Foreign Flag 104,445 $15.4b $6.1b $13.4b $3.6b Donjon Shipbuilding & Repair, LLC ECONOMIC IMPACT Metric Tons (1,000) / C $                  Economic Impacts by Province Tonnage Handled Jobs Economic Activity Personal Income Business Revenue Taxes 67+33+LL 61+39+LL 62+38+LL 63+37+LL 60+40+LL 66+34+LL $9.7b TOTALS 185,234 $26.0b $22.6b 181,079 $5.7b . Quebec 123,856 110,433 $16.0b $5.8b $14.3b $3.7b . Ontario 61,378 70,647 $10.0b $3.9b $8.3b $1.9b Metro Ports Rand Logistics INTERNATIONAL TRADE Tariffs and shipping Assessing the current—and potential—impacts of the U.S. steel tariffs KEVIN GAUDET President BrightPoint Strategy President Donald Trump has been weaponizing trade. He appears to be getting closer with old enemies like Russia, North Korea and China. Meanwhile he is creating discord with old friends like Canada, Mexico and the European Union. At this early stage it is, as yet, unclear what the longer-term impacts will be to this new approach to trade. The impacts on Canada- U.S. shipping, for example, have been limit.ed, so far. However, with so much at stake, the impacts are being watched closely. Disrupting NAFTA. The President has been following his 11-point frame.work from The Art of the Deal as he works toward new trade relationships. He is clearly having fun leveraging U.S. clout in an effort to divide and conquer. His ap.proach toward Canada and North Ameri.can Free Trade Agreement (NAFTA) con.tinue, though, to cause uncertainty—the bane of business. To get where he wanted to go in dis.rupting NAFTA, President Trump worked around Congress, which is responsible for matters of trade. Here’s how he did it. In a highly irregular move on February 16, 2018, the United States Department of Commerce concluded under section 232 of the Trade Expansion Act of 1962 (19 U.S.C. 1862(b)(1)(A)) that steel and alumi.num imports constituted a national securi.ty threat and, on March 8, the President imposed trade sanctions, with temporary exemptions for Canada, Mexico and the European Union. Those exemptions lapsed on June 1, making effective tariffs of 25 percent on steel imports and 10 percent on aluminum imports from the European Union, Canada and Mexico. To be clear, through this action, the United States stated that its largest trading partner—Canada, its neighbor to the north, its friend and ally with whom it shares the longest undefended border in the world—poses a national security threat. What is Trump’s goal? The U.S. mid.terms are to be held on November 6. All 435 Congressional seats are up for election, as are 35 of 100 Senate seats. With NAFTA and trade in play, President Trump and the Republicans can and will use this issue to appear to defend workers and their inter.ests in the United States. A great many of these are voters in red [Republican] states. One might expect early in a story arc for the President’s efforts to appear as the tough champion of U.S. workers against big bad trade partners who allegedly are costing American jobs. After the midterms, one could expect the President’s messaging and tactics to move closer to a deal. With this approach, no matter what the content of any deal, the President can appear to be the victor in the process. This moves his mes.saging from midterm trade defender to re.election trade victor closer to 2020. An inkling of this strategy is visible through public comments by White House Economic Advisor Kevin Hassett with statements such as: The U.S. is now mak.ing “absolutely amazing’’ progress toward renegotiating the North American Free Trade Agreement and a deal could come as early as this fall. In an interview that aired July 28 on Fox News, he said: “My guess is that we will see something by the fall.” Meanwhile, President Trump has re.cently said that the U.S. is making solid progress in talks with Mexico, but has indi.cated that his administration may pursue a bilateral deal with that country first before negotiating separately with Canada. Such a move would upend the de.cades-old trilateral NAFTA deal and likely stretch out negotiations far longer. Mexi.co’s incoming President Andres Manuel Lopez Obrador has said he wants to keep the trilateral structure of NAFTA in place. Tariff impacts? But what are the im.pacts of the tariffs on trade and shipping? According to U.S. government figures, America imported almost 37 million met.ric tons of steel last year. About one-sixth of that comes from Canada. Canada plays an even larger role in aluminum, contribut.ing more than half of the almost five million metric tons the U.S. consumes each year. In response to the American tariffs, Ca.nadian Prime Minister Justin Trudeau pre.sented a list of tariffs that took effect July 1 on more than 100 U.S. products. The list includes not only industrial steel and alu.minum items, but consumer products ranging from ketchup to dishwasher deter.gent, boats, toilet paper, playing cards, in.secticide, washing machines and bourbon. Overall cargo shipments on the Great Lakes/St. Lawrence Seaway between March 29 and June 30 totaled 12.1 million met.ric tons, down 2 percent compared to the same period in 2017. The slight decrease is due to the later and slower start of the season and a decline in salt shipments, according to the Chamber of Marine Commerce (CMC). “Summer is the season for construction projects and ships have been delivering materials for major building projects across the region,” said Bruce Burrows, President of the CMC. “U.S. grain exports are also up this season and illustrate the importance of marine transportation to so many of America’s economic sectors. This was underlined by a new study released recently showing Great Lakes/St. Law.rence shipping supports 147,500 jobs and $25.6 billion in economic activity in United States.” The main impact of higher U.S. tariffs to date has been higher U.S. prices. The U.S. has already imposed significant tariffs on Canadian softwood lumber and news.print, for example, in addition to steel tar.iffs levied earlier on a select group of countries, notably China and Russia. U.S. prices have spiked higher for all of those products. Import tariffs are typically framed as an attack on another country’s exports. Much of the cost, though, is ultimately paid by domestic rather than foreign pro.ducers and consumers. The imposition of tariffs is likely to raise prices for downstream consumers across the overall economy. The imposi.tion of protectionist measures is also likely to damage U.S. allies’ economies and in.vite retaliation by trading partners. n Kevin Gaudet is an expert in government relations and public affairs. He founded BrightPoint Strategy, which of.fers services in Ottawa, Toronto, Quebec, Washington and Mexico. 23 GREAT LAKES/SEAWAY REVIEW July-September, 2018 INTERNATIONAL TRADE According to U.S. government figures, America imported almost 37 million metric tons of steel last year. About one-sixth of that comes from Canada. Husky Energy INTERNATIONAL TRADE Canada plays an even larger role in aluminum, contributing more than half of the almost five million metric tons the U.S. consumes each year. Great Lakes Maritime Academy Sterling Fuels Limited INTERVIEW BUILDING CONSENSUS New Great Lakes Commission director deepening connections, realigning with compact Darren Nichols In April, Darren Nichols relocated his family from Washington State to Chelsea, Michigan to become the sixth Executive Director of the Great Lakes Commis.sion (GLC). The commission was formed in 1955 to support the mutually dependent goals of develop.ing and maintaining a healthy environment and a prosperous economy. With board members from the eight Great Lakes states and two Canadian provinces, the GLC advocates for legislation and programs to benefit the basin and its communities. Nichols over.sees day-to-day operations, as well as regional programs and advocacy. “We are looking forward to his fresh perspective on managing Great Lakes issues and believe he will be an outstanding leader in balancing economic and environmental interests on behalf of our member states and provinces,” said GLC Chair John Linc Stine, who is also Commissioner of the Minnesota Pollution Control Agency. Prior to joining the GLC, Nichols worked in private consulting. He previously served as Associate Director for The William D. Ruckelshaus Center in Seattle, Washington. The center is a collective effort in problem solving between Washington State University, Uni.versity of Washington and regional stakeholders. Earlier in his career, Nichols was Executive Director of the Colum.bia River Gorge Commission, a regional, bi-state agency governed by a 13-member commission. He convened Oregon and Washington governors’ offices, local and state officials, tribal leaders, railroads, environmental advocates, scientists, property owners, business lead.ers and other interests to address complex public policy issues, includ.ing fossil fuel transport, climate change, urban growth management and regional economic development. Nichols has a bachelor’s degree in business 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, natural resources and energy law. He recently talked with Editor Janenne Irene Pung to discuss his new post and his plans for moving the GLC forward. I believe in the power of people to intentionally work toward trust, which leads to good decisions. Great Lakes/Seaway Review: In intro.ducing you to our readers, what would you most like them to know? Nichols: I grew up in Oregon and have a lot of interests. In college, I worked in economics, which led to urban and re.gional planning. Economic development and planning then led to working on statewide land-use policies and a need to understand the environmental compo.nent. I later went back to law school to add to my toolbox. Great Lakes/Seaway Review: Please tell us how your background has prepared you to lead the Great Lakes Commission. Nichols: When I was with the Columbia River Gorge Commission, I worked with four treaty tribes and the states of Oregon and Washington. Our mandate was to pro.tect our natural resources while also sup.porting the regional economy. While differ.ent in scale and context, it was similar to the role of the Great Lakes Commission. In law school, I had the great opportu.nity to take a course in Interstate Com.pacts, the only one of its kind in the na.tion. The instructor of the course became my general counsel at the gorge. So, I es.sentially studied under him for 10 years, learning a great deal about collaborative governance. As a result, I believe in the power of people to intentionally work to.ward trust, which leads to good decisions. The Ruckelshaus Center was created to foster collaborative public policy in the State of Washington and the Pacific North.west. It has advisory board members in the public and private sectors who believe that working to understand the issues is the only way to govern. The opening of the St. Lawrence Seaway was the driving factor in the formation of the GLC, requiring state and federal partner.ship. The formation of interstate compacts flows from the constitution. They are meaningful legal tools which carry a lot of authority. That’s why we are doubling back to reassess the Great Lakes Commis.sion’s commitment to the original com.pact and what it means now. We lost our connection to that original purpose. If we’re going to be effective stew.ards of the Great Lakes basin, we have to get clarification on our role and be able to set priorities to better advocate for and convene discussions for reinvestment in the region. I want to get us back on solid footing that can bring this region together and work on a neutral forum. I didn’t move 2,500 miles on a lark. I’ve spent the last 15 years trying to work with people to solve complex issues. When I saw how people here wanted to work together, it was irresistible to come. When we connect as humans, we can solve problems. Great Lakes/Seaway Review: You recent.ly traveled aboard a U.S.-flag laker. Please share a few of your impressions and/or surprises. Nichols: This is my first time on a laker and it was an amazing trip. We traveled from the Port of Duluth-Superior to U.S. Steel in Gary, Indiana. It enabled me to see almost the full trip iron ore takes from the loading facility in Superior, Wisconsin, through Lake Superior, the St. Marys Riv.er and the Soo Locks and then through the remainder of the St. Marys River, the Straits of Mackinac and the full length of Lake Michigan. I was able to experience the loading and unloading of 64,000 tons of taconite. Other than the thrill of spending three-and-a-half days with the captain and crew aboard a 1,000-foot vessel, the Edgar B. Speer, the takeaways include the value of the transportation system in moving large amounts of cargo. I was struck by the ex.pertise and the sense of pride and stew.ardship of the captain and crew. The complexity of it all was surprising to me—the skill and efficiency required to load and unload those vessels. They are incredibly efficient, but it’s a complicated task to properly load and balance a 1,000-foot vessel for the journey. The crew carefully watches the loading of the ship because the draft clearance they have to navigate in the channel and through the Soo Locks is, at times, a cou.ple of inches. They have to make sure the ship doesn’t list from side to side and that INTERVIEW 2018 Great Lakes Commission Federal Priorities SAFE DRINKING WATER is endangered by failing water infrastructure, lead in drinking water lines, toxic algae, sewage overflows from overburdened wastewater systems and im.pacts from extreme weather. Commercial navigation is undermined by aging port infrastructure, unmet dredging needs in harbors and waterways, and the vulnerability of critical choke points, such as the Soo Locks. Jobs created by tourism and outdoor recreation depend on clean water and healthy fish and wildlife populations, which are vulnerable to invasive species, pollution, beach closures, hab.itat loss, and poorly funded management and conservation programs. Economic development in coastal communities is hampered by historic contamination, poorly utilized waterfront areas, failing infrastructure, inadequate support for clean-up and revitaliza.tion efforts, and vulnerability to climate change and extreme weather. Picton Terminals the bow and stern are within two-to-four inches of each other, with no part of the vessel deeper than the clearance. On the human side, the crew’s com.mitment to being on the vessel 24 hours a day for 60 to 90 days at a time made an impression on me. It’s a long-term career commitment that requires specialized training and time away from home. Great Lakes/Seaway Review: Being in the position since mid-April, have you had time to establish a vision for how you will lead the GLC? Nichols: At this point, we are looking at what we expect to accomplish as an orga.nization and what resources we need to accomplish it. It’s typical for an organiza.tion to go through this process. Organiza.tions can get years, or even decades, down the road and no longer have a clear view of their mandate. We are going through the mandate of the original compact and asking questions of our board and the states we represent about what the organization should be. We are taking a step back to look forward at how we can make sure we are bringing the Great Lakes basin together to work most effectively. Great Lakes/Seaway Review: How are you making this assessment? Nichols: When I was at the Columbia River Gorge Commission, we hired an outside team of academic and organiza.tional experts to assess the intention of the gorge when it was formed, as well as our mandated scope of authority in a current context. We used their findings to set ob.jective expectations and align staff. It’s important to know the compelling reasons behind creating an organization like the Great Lakes Commission. Going forward, it’s important to remain aligned with the original purpose and to also see how we should be evolving over time with today’s technologies and policies. We plan to involve outside experts, and we have already begun talking with the re.gion’s stakeholders—the states, provinces, agencies, industries and others who have interests in what we do. We have an oppor.tunity to be more intentional in meeting the needs of our partners and in meeting the needs of the region’s economy. Great Lakes/Seaway Review: A year ago, we interviewed GLC Board Chair John Linc Stine, who said the board was look.ing for an executive director who has a “fluent knowledge of the economic and INTERVIEW Ozinga Bros. Inc. Ozinga Materials & Logistics commercial navigation aspects that sur.round the Great Lakes.” Please share your approach to the GLC’s goals and strate.gies, particularly as they pertain to com.mercial navigation. Nichols: Let me first flag some of the work we’ve done in recent years. We have been in.volved in an economic assessment of the Great Lakes Restoration Initiative. We’ve done a lot of work in revitalizing coastal communities, including some cleaning up of areas of concern which are now generat.ing economic opportunities and competi.tiveness for those communities and ports. We are also developing the Blue Ac.counting program, which will create an un.derstanding of the implications of reinvest.ing in the Great Lakes. At this point, we’re missing the ability to fully understand the connections between economics and envi.ronmental health, which is where we believe Blue Accounting can make a difference. With staffing, we have more expertise in-house than people may see at first glance. Matt Doss, our Legislative and Policy Director, has worked really hard over the last several years to stay abreast of the policy and legislative matters and how they impact commercial navigation. In addition, we bring in Dave Knight on as as-need basis, when we need specific ex.pertise or specific connections to the mar.itime industry. We also have a number of maritime leaders on our commission and on our board, like Jim Weakley and Tom Ray.burn with the Lake Carriers’ Association and Jody Peacock with the Ports of Illi.nois. So while they are not staffed to the Great Lakes Commission, they do provide a wealth of expertise and perspective as we lean on them to help guide our work and remain mindful of the needs of the Great Lakes maritime navigation system. There is also an opportunity going for.ward for us to invite the states to reinvest in maritime navigation expertise and real.ly help us reflect that portion of the man.date that’s in the compact. Great Lakes/Seaway Review: How is the Blue Accounting initiative progressing? Nichols: Matt Doss is the lead on what we’re calling the Maritime Transportation Pilot Project within the Blue Accounting program. Matt convened an advisory committee workgroup in late July. We have close to 20 people from across the re.gion and with a range of expertise. We’ve asked the group how an information sys.tem or platform for sharing and analyzing data could provide value to maritime transportation. I’m encouraged by the way that group is thinking and some of the ideas and needs they put on the table. There is defi.nitely a consensus of how the Great Lakes Commission and the Blue Accounting ap.proach can provide consistent informa.tion for both private companies and pub.lic agencies and organizations to help inform and guide future policy—and to potentially help create a framework for fu.ture investment in the maritime transpor.tation system. We’re using the regional maritime strat.egy, originally created by the Conference of Great Lakes St. Lawrence Governors & Premiers, as one of the building blocks for advancing maritime transportation policy and as a building block for the Blue Accounting conversation. (www.gsgp.org/media/1815/final-regional-mts-strategy-june-15-2016pdf.pdf) Great Lakes/Seaway Review: How will you measure success and determine course corrections for the organization? Nichols: There are two fundamental ways we’ll measure success. One is the support of eight Great Lakes states, two provinces and Congress. The consensus and support we have is one indicator of our success because it shows how well we’re supported and the level of consen.sus behind that support. The Blue Ac.counting approach is another way of ob.jectively measuring how well we’re achieving improvements in the economic and environmental health in the region. Great Lakes/Seaway Review: As an orga.nization, how is the GLC approaching the threat to cut funding for the Great Lakes Restoration Initiative (GLRI)? Nichols: We need to make sure there’s a clear connection in Congress between the needs and the value of reinvesting in the system. We are thankful for the strong leadership and partnerships across the ba.sin, which compel continued investment in the GLRI. It highlights how well we have worked together in reassuring our nation that the Great Lakes are worth investing in. Great Lakes/Seaway Review: The GLC board has passed a resolution supporting the Soo Locks Modernization Act, which promotes twinning the Poe Lock in Sault Ste. Marie, Michigan. What approach are you taking to furthering construction of a new lock? Nichols: Our board has energetically dis.cussed the importance of the Soo Locks over the last three meetings. The GLC recognizes the importance of building a new Poe-sized lock and fully supports its construction. Dis.cussions are underway on how to get the funding for the lock. The commission re.mains committed to these discussions. Great Lakes/Seaway Review: Do you have anything to add? Nichols: The Great Lakes basin contains 20 percent of the world’s surface freshwa.ter. You can’t put too many exclamation points behind that statement, especially when we see wildfires raging in California and drought throughout much of the south and southwest. The fact that this re.gion is blessed with 20 percent of the worlds’ freshwater is something for us to spend some time contemplating and con.sidering the importance of stewardship of this resource. We are provided with an amazing op.portunity as the Great Lakes community and the Great Lakes Commission to look forward and work together to create a glob.al model for harnessing innovation and stewardship to ensure our economic and environmental health. I am both humbled and thrilled to be able to work with the Great Lakes Commission and people from throughout the basin on this task.n INTERVIEW Warner Petroleum Corporation I’ve spent the last 15 years trying to work with people to solve complex issues. When I saw how people here wanted to work together, it was irresistible to come. SERVING THE GREAT FLEETS OF THE GREAT LAKES! 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GUEST EDITORIAL Cross-border shipping The outlook according to Canadian exporters STEPHEN TAPP, Deputy Chief Economist, Export Development Canada After years of strong investment during the boom times of the previous business cycle, and ev.er-growing vessel sizes, global shipping has built up a lot of surplus capacity. Data from the United Nations Confer.ence on Trade and Development illus.trate the situation: the average rate of product tonnage to shipping capacity is currently about 30 percent below peak usage. Vessels are running 80 percent full, 20 percent of the available ships are idled and all ships are running about 80 percent as often as before. It’s not great news for the shipping industry, as reflect.ed in depressed lease rates. Against this backdrop, and with the rise of protectionism south of the border and in other parts of the world, there are escalating trade tensions and a general lack of clarity about the future of global trade rules. Canada-U.S. trade relations have been thorny of late. Between new tariffs in sectors like steel and aluminum, new trade disputes being launched at the World Trade Organization and North American Free Trade Agreement (NAFTA) negotiations entering the second year of talks, there are many reasons for uncer.tainty among Canadian exporters. It’s not surprising, then, that in Export Development Canada’s most recent Trade Confidence Index—our semi-annual sur.vey of 1,000 exporters—the number of exporters who said NAFTA renegotiations has had a negative impact on their Cana.dian operations rose to 28 percent, up from 23 percent in our previous survey. The highest NAFTA concerns were re.ported in the transportation sector, for large firms and those located in Ontario and Western Canada. Our mid-year 2018 survey also saw nea

Maritime Editorial