Vol.47 No.2 OCT‑DEC 2018

Funding for Poe Lock twin . USMcA concessions . Port Erie progress . the value of iron ore 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 P O R T O F I N D I A N A – B U R N S H A R B O R GENERAL CARGO BULK CARGO Whatever your cargo, our world-class stevedore partners, Federal Marine Terminals and Metro Ports, can handle it. For more information about our Great Lakes partners, visit us online at portsofindiana.com/GLSR OCTObEr-DECEmbEr 2018 great lakes/seaway review cover: CSL Assiniboine slips through late-season fog. Photo: Robert Welton great laker cover: Marblehead Lighthouse stands watchful on Lake Erie. Photo: Ed Bansek 9 L O C K S Twinning the Poe 9 T r A D E PAT T E r N S A new era of trade? 15 E X E C U T I V E r O U N D TA b L E New port executives 19 P O rT S & S H I P b U I L D I N G Revitalizing the Erie waterfront 32 S H I P b U I L D I N G New training vessel 35 P O rT S On course for 2030 37 37 C O m m O D I T I E S Transforming an economy 41 U . S . C O A S T G U A r D Aiding maritime commerce 49 D E PA rT m E N T S Dateline 5 Great Lakes Ports 31 Guest Editorials Shipyard oversight 39 Sending a wake-up call 47 On the Radar 64 G r E AT L A K E S P E O P L E Another kind of shipbuilder 53 L I G H T H O U S E S Marblehead shines on 55 m E E T T H E C r E W A family tradition 59 H I S T O rY No, those aren’t smokestacks 60 m E E T T H E F L E E T One busy boat 62 Marine Pollution Control +1 (313) 849-2333 – 24/hour www.MarinePollutionControl.com MPC IS OSRO #003, NFO CLASSIFIED SHIP SERVICES tHE INtErNAtIONAL MArItIME MAGAZINE OF tHE GrEAt LAKES/St. LAWrENcE SEAWAY SYStEM VOLUME 47 OctObEr-DEcEMbEr, 2018 NUMbEr 2 bUSINESS AND EDItOrIAL OFFIcE 221 Water Street boyne city, Michigan 49712 USA (800) 491-1760 FAX: (866) 906-3392 harbor@harborhouse.com www.greatlakes-seawayreview.com EDItOrIAL AND bUSINESS StAFF Jacques LesStrang Publisher Emeritus Michelle cortright Publisher Janenne Irene Pung Editor cris Shankleton creative Director Jen Shock Production Manager tina Felton business Manager 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, Principal, DB Consulting; 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/ G r E A T L A K E S / S T . L A W r E N C E S E A W A Y Grain continues to provide late-season cargo boost With increases like 96 percent at the Port of Hamilton, it’s easy to recognize the impact grain makes in shipping through the Great Lakes/St. Lawrence Seaway system. Most of the grain moving through Hamilton is being exported. the growth is attributed to investments by companies like G3 canada Ltd. and Parrish and Heimbecker, a European draught, increasing trade through the comprehensive Economic and trade Agreement (cEtA) and European counter-tariffs on agricultural products. the increase in Hamilton is boosting grain volumes in the Lower Lakes moving downbound through Lake Superior from the ports of thunder bay and Duluth-Superior. Grain with U.S. origins has declined over 10 years due to competition from rail and river options and a shift of crops from cereals to corn for ethanol. the Port of Oswego experienced a significant increase in soybean exports to foreign markets. the increase is due to the port being granted a USDA export license. the port also upgraded its facilities to include a USDA lab and, in cooperation with Perdue Agribusiness, installed a state-of-the-art weighing system for exports. “by 2020, we look to double the yearly total and are planning to make investments in expanding our storage facilities,” said bill Scriber, port Executive Director. through the third quarter, grain was up more than 16 percent in the system. For a full report on grain outcomes for the 2018 season, see the upcomong spring edition of Great Lakes/Seaway Review. . DAtELINE The Great Lakes Group tug Washington brings NACC Argonaut down the Buffalo River in December. PHOTO: PHILLIP ZYGMUNT Algoma continues diversification, fleet modernization While short sea shipping remains the core business, Algoma central corporation is expanding to include more cargo movement along the eastern seaboard. With 20 years experience in an international pool servicing customers on the east and west coasts, Algoma is looking further beyond the Seaway system for business opportunities. “We are still focused on short sea shipping, fundamentally the same thing we do in the Great Lakes,” said Peter Winkley, chief Financial Officer for Algoma, noting opportunities in niche markets. “In 2015 when the board decided to hire Ken Soerensen, who had little experience in dry bulk and canadian shipping but vast international contacts, it sent a message that if we were to grow the business, it had to be outside the canadian markets.” through its partnership in NovaAlgoma cement carriers (NAcc), it is increasing its mini-bulker fleet to serve the cement industry. In 2018, NACC Alicudi became the world’s first cement carrier equipped with Scania IMO tier III diesel engines to drive its bulk-handling system. converted in 2017, the ship became a self-discharging cement carrier, equipped to move cement, fly ash and granulated slag. the Scania system is lowering emissions and the height of the loading system onboard Alicudi. the decrease in height enables her to access more ports. She is now operating on a three-year contract, chartered to McInnis cement on the east coast, delivering cargo to both U.S. and canadian ports. McInnis cement owns a new cement plant in Port-Daniel-Gascons, Quebec and a new receiving terminal in bronx, New York. Alicudi joined NACC Quebec in the trade. . Corps Detroit District gets funding increases For fiscal year 2019, the U.S. Army corps of Engineers Great Lakes Navigation Operations and Maintenance budget is $191.9 million, which includes $83.2 million from the Additional Funds for Ongoing Work from the FY19 Appropriation, according to Marie Strum, chief, Engineering & technical Services. the president’s budget was $108.7 million. Key FY19 additions include five new dredging projects and three projects with additional dredging funds. the total dredging program for FY19 includes $48 million for 26 dredging projects. the dredging backlog has decreased from a high of 18 million cubic yards in 2013 to 13.5 million cubic yards at the end of 2017 and is expected to continue the trend. An additional $49 million was funded for work on navigation structures throughout the Great Lakes, including design, maintenance and repairs. Over $15 million was added for work on the Soo Locks existing infrastructure, $4.58 million for chicago Lock infrastructure and $550,000 for black rock Lock infrastructure repairs. “the work plan represents a significant investment by the federal government in the Great Lakes,” said Lt. col. Greg turner, District Engineer for the Detroit District. “It will allow us to take our first major step towards getting a new Poe-sized lock at the Soo in the ground, repair structures at a number of ports throughout the lakes and complete other important infrastructure and environmental projects.” to view the work plan, http:// www.greatlakesports.org/wpcontent/ uploads/2018/11/FY19Final- corps-Workplan.pdf. . German brew tanks move through Port of Ogdensburg Federal Danube delivers 12 stainless steel fermenting and aging tanks and four additional components from Germany to the Port of Ogdensburg. The tanks were then trucked to Matt Brewing Co. in Utica, New York for installation. They are part of an expansion and modernization at the brewery, which was founded in 1888. GrEAt LAKES/SEAWAY rEVIEW October-December, 2018 Desgagnés takes delivery of m/T Paul A. Desgagnés Desgagnés took delivery of M/T Paul A. Desgagnés in the fall, following her construction in turkey. She is a new-generation product tanker with state-of-the-art technology. third in a series of four product carriers, she is custom-built according to an original concept developed by Desgagnés and constructed at the besiktas shipyard in Yalova near Istanbul, turkey. “the addition of the Paul A. Desgagnés to the Desgagnés fleet—as for the addition of the Damia Desgagnés and the Mia Desgagnés—is the result of multiple innovations and tremendous work; as her predecessors, she is the source of great pride,” said Louis-Marie beaulieu, chairman of the board and chief Executive Officer of Desgagnés. the ship was named in honor of Paul A. côté, who worked at Desgagnés for nearly 40 years. Paul A. Desgagnés is a dual-fuel, LNG oil-product and chemical tanker. Her most notable characteristic is that she can be powered by any of three types of fuel: heavy fuel oil, marine diesel oil or liquefied natural gas (LNG). She is double-hulled and holds a Polar 7 ice class, confirming her capacity to navigate in ice-laden waters. With a deadweight of 15,000 metric tons at 7.8 meters draft, her cargo tanks can hold up to 17,505 m3 at 98 percent capacity. She is equipped with a Wärtsila 5rt-flex 50DF engine developing 5,450kW power. She is also equipped with a variable pitch propeller, a 750kW bow thruster, a 550kW stern thruster and a dynamic positioning system. the Paul A. Desgagnés represents an investment exceeding c$50 million, of which almost c$9 million are solely dedicated to the dual-fuel/LNG motorization. . Local businesses to benefit from Port milwaukee’s increasing rail service the Wisconsin Department of transportation awarded Port Milwaukee a $3 million grant to upgrade railroad track on Jones Island. the money is being combined with a 20 percent match from Port Milwaukee to cover the $3.7 million investment. the project grant will modernize about 8,000 feet of track, directly benefitting a number of port tenants. the work will also prepare Port Milwaukee for a possible resumption of intermodal container service connecting regional manufacturers and transportation companies with railroad service to the Atlantic and Pacific oceans. “Port Milwaukee’s railroad infrastructure has served Milwaukee companies for decades. these planned improvements will bring tracks at the port to the highest standards,” Mayor tom barrett said. “Looking forward, this work will facilitate the addition of long distance container service so local businesses can reach distant markets efficiently.” thousands of railcars move through Port Milwaukee rail facilities annually connecting to either the Union Pacific or canadian Pacific railways—a number which is expected to increase substantially when intermodal service resumes. regularly scheduled rail container movement at Port Milwaukee ended in 2012 when canadian Pacific streamlined its intermodal operation. Most companies that use shipping containers to move cargo in southeastern Wisconsin are now required to truck containers to chicago-area rail yards. A resumption of intermodal service in Milwaukee would reduce transportation costs for many Wisconsin companies. . Port of Hamilton receives federal infrastructure investment transport Minister Marc Garneau has awarded Hamilton Port Authority c$17.7 million from the National trade corridors Fund. the port is matching the funds in support of the c$35.45 million Westport Modernization Project. this project involves reconfiguring port property to create new employment land development parcels. New transportation infrastructure will improve efficiency and fluidity for port users. Perimeter areas will add landscaping to improve the port-city interface. the port authority’s plan for Westport is to create a multi-modal transportation hub, better connecting Westport with other areas of the port by upgrading rail and roads, adding a new dockwall at Pier 12, grading and paving cargo laydown areas, and adding a storage warehouse. the improvements will provide more development-ready parcels of land to meet the demand from potential port users. HPA expects to leverage today’s investments into c$80-90 million in new business attraction. Westport is a 115-hectare area located at the west end of the Port of Hamilton. Primary project investments began in 2018 and are expected to continue through 2020. . more interaction coming to Great Lakes Waterways Conference the planning committee for the Great Lakes Waterways conference, comprised of U.S. and canadian Seaways and shipping stakeholders, is updating the approach to the annual meeting. Sessions will now be more interactive, with moderators posing key questions to the guest speakers. the sessions are focusing on blockchain Dynamics, A Look to the Future and technology of the Seaway, Strategies at Home and Across the Globe, Great Lakes Shipping in the 116th congress, U.S. Army corps of Engineers – Great Lakes Navigation System Update, cyber Advancements, State of Engagement in Great Lakes trade and U.S. and canadian coast Guard Issues. the conference runs tuesday-Wednesday, February 5-6, at the Westin cleveland Downtown. the Admiral’s Dinner is a premier networking event. For more information, go to http://www.maritimemeetings.com/great-lakeswaterways- conference.php. . rEGIONAL CALENDAr JANUARY 13-17 Transportation Research Board 98th Annual Meeting Walter E. Washington Convention Center Washington, D.C. www.trb.org 18 Marine Club Annual Dinner Fairmont Royal York Hotel Toronto, Ontario www.themarineclub.org/events FEBRUARY 5-6 Great Lakes Waterways Conference The Westin Cleveland Downtown Cleveland, Ohio www.maritimemeetings.com/great-lakeswaterways- conference.php 7 SNAME Great Lakes/Great Rivers 2019 Winter Meeting Cleveland, Ohio www.sname.org 7-10 ISMA Grand Lodge Convention 2019 Park Place Hotel Traverse City, Michigan www.shipmaster.org rEGIONAL CALENDAr MARCH MAY 7 Great Lakes Congressional Breakfast Washington, D.C. www.glc.org 21-23 Breakbulk Europe Messe Bremen Bremen, Germany www.breakbulk.com APRIL 23-25 Mari-Tech 2019 Ottawa Conference & Event Centre Ottawa, Ontario www.mari-techconference.ca 29-31 Great Lakes Economic Forum Cleveland, Ohio www.greatlakeseconomicforum.com Winner of the IBJ People Development Award | FMT | FALLine | Fednav Direct | Photo: Nancy Cline SUSTAINABILITY www.fednav.com L O C K S Construction scenario Providing reliability A Quick Look An artist rendering shows what it might look like with a second Poe-sized lock at Sault Ste. Marie, Michigan. SOURCE: U.S. ARMY CORPS OF ENGINEERS Consider steel TWINNING THE POE Legislation, Corps work plan moving new lock construction forward “ “ Let the construction begin.” After more than three decades, the U.S. Army corps of Engineers is proceed ing with plans to build a new Soo Lock, one of the largest Great Lakes infrastructure projects in a generation. the commitment comes on the heels of Presidential and con gressional advocacy for a new Poe-sized lock in Sault Ste. Marie, Michigan. In October, President Donald trump signed America’s Water Infrastructure Act into law, authorizing construction of the new lock. the official standing allows the project to compete with other national con struction projects for funding. the lock is authorized for 100 percent federal funding. In November, the U.S. Army corps of Engineers formally allocated $32 million for design and construction. the funding could be combined with another $52 mil lion committed by Michigan Governor rick Snyder. “this is the moment we have been waiting for more than 30 years,” said Jim Weakley, President of Lake carriers’ Association. “the announcement by the Army corps that the construction program for the new lock at the Soo will officially begin is the direct result of the tireless efforts of so many people and organizations banding together to update one of the most critical pieces of American infrastructure. It is a great day for Michigan, the Great Lakes region and the entire nation. We are elated.” construction will take place over the next 10 years and will need to be funded through additional annual appropriations, according to Lake carriers’ Association. total construction cost for the new lock is estimated at $922.4 million. the lock on the St. Marys river is designed to twin the Poe Lock and allow a second lock for the region’s largest lakers. “the U.S. Army corps of Engineers, Detroit District, understands the significance of this critical project,” said Lt. col. Greg turner, District Engineer. “We stand ready to execute the new Soo Lock construction and have already begun taking steps to minimize the time from receipt of funding to project completion.” Funding allocation in the corps’ FY19 work plan is also being celebrated in congress. “this is great news for Michigan’s First District, the Great Lakes region and the entire U.S. economy, which relies on the Soo Locks,” said Michigan representative Jack bergman. “I’m proud of the progress we’ve made to finally break ground on a project that’s been delayed for decades. I also applaud the trump Administration for acknowledging the importance of a new lock and for working with the House, Senate and Great Lakes industries to make construction of a new lock in Sault Ste. Marie a reality.” the work plan follows years of starts and stops. the actual groundbreaking for the new lock was held June 30, 2009. the funds recently announced will be used for L O C K S SOO LOCKS OPERATIONS AND MAINTENANCE FUNDING (1997-2018) 50 45 40 35 30 25 20 15 10 5 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 SOURCE: U.S. ARMY CORPS OF ENGINEERS $ MILLIONS design work and to resume construction. Upcoming construction projects for restart work on the new lock include deepening the upstream channel to accommodate modern Great Lakes vessels and construction of the upstream approach walls. Construction scenario. When the corps released the “New Soo Lock Economic Validation Study” in June 2018, it included “the most likely” scenario for construction of the new lock. In this scenario, a new lock would be built by 2027. Under the scenario, the corps would continue routine and prioritized major maintenance on the Poe and MacArthur locks to maintain the navigation mission and meet the congressional intent of redundancy. by maintaining the existing locks, there will be chambers operating for vessel traffic in either the north or south canals, reducing the risk of outages. the MacArthur Lock was completed in 1943 and has a length of 800 feet, meaning it cannot accommodate the largest lakers but can provide transit for the 650s and 740s. When the new lock is completed, the MacArthur Lock would be placed in a standby—but ready—status. It would be briefly placed back into service as needed to allow for major maintenance and/or L O C K S LOCK CONSTRUCTION COST Total work is estimated to cost approximately $1 billion and is broken into three phases, listed below, in the order in which construction contracts are to be awarded. 1) Upstream Channel Deepening (red) 2) Upstream Approach Walls (green) 3) New Soo Lock (blue) SOURCE: U.S. ARMY CORPS OF ENGINEERS replacement of certain Poe Lock components to reduce impacts to navigation. In anticipation of the idle status of the MacArthur lock, expenditures for major maintenance on the MacArthur Lock would be held to a minimum. It is anticipated that by 2041, the MacArthur Lock would be placed into permanent “caretaker” status with minimal usage and upkeep. Providing reliability. the MacArthur and Poe locks were built in 1943 and 1968, respectively. the need for and cost of maintenance is increasing as the locks age. components replaced in the last 10 years include: • Embedded gate anchorages and linkages for both locks • Electrical systems at both locks • Poe Lock miter and quoin blocks • Poe Lock gate 1 coating • Poe Lock hydraulic system • Lock facility steam plant • Lock facility compressed air system According to Kevin Sprague, corps Area Engineer for the Soo Locks, maintenance at the Poe Lock resulting in outages has gone from a rare event to a monthly occurrence over the last 10 years (see Figure 1). this past October, the Poe Lock was shut down for emergency repairs for eight hours. “the navigation industry expects reliability of our lock infrastructure,” Sprague said. “We work very hard to minimize outages because every hour that our locks are Advocacy. promoting public policies that foster maritime commerce on the Great Lakes-Seaway system for membership inf www.greatlakesports.org GrEAt LAKES/SEAWAY rEVIEW October-December, 2018 11 L O C K S POE LOCK-ATTRIBUTED VESSEL DELAYS DUE TO MAINTENANCE AND REPAIR (2013-17) not in operation results in significant eco . Number of Vessels Affected . Total Time Delayed (hours) nomic consequences to the industry. As ex pected, lock components are showing their 9 2013 8 age and as a result there has been an in crease in maintenance requirements.” 26 2014 Unscheduled outages or delays are often due to the need to repair or maintain 12 170 2015 the lock and lock equipment. While preventative maintenance is performed during 273 652 2016 the winter closure, from January 15 to 146 March 25, additional work is required and 13 unplanned outages can have a significant 2017 7 impact on navigation and the industries SOURCE: U.S. ARMY CORPS OF ENGINEERS depending on the disrupted deliveries. According to the corps, over the past five years a few major outages or delays have occurred. “This is the moment we have been waiting for more than 30 years,” said Jim Weakley, President of Lake Carriers’ Association. • In 2015 there was a 19-day unscheduled outage of the MacArthur Lock for repairs. this outage caused delays to 136 vessels for a total time of 262 hours. based on vessel operating cost alone, the shipping industry incurred a cost of $840,000. Although the outage was on the MacArthur Lock, it resulted in delays to the Poe Lock because all traffic was diverted to the Poe as the only operational lock. • Valve repairs were completed on the Poe Lock in 2016, which slowed down the filling and emptying time of the lock. these repairs affected 649 vessels and caused 163 hours of delay. Consider steel. While lakers bring a variety of commodities through the locks, taconite represents the largest single commodity going through—over half of the total tonnage transiting the Soo Locks. With the Minnesota Iron range producing much of the iron ore/taconite used in making steel, manufacturing facilities throughout the binational region are dependent on the big ships getting through the St. Marys river. Of the annual average of 72.5 million tons moving through the locks, 89 percent of it transits the Poe Lock. “the Soo Locks are paramount to enabling vessels to transport iron ore and L O C K S other commodities from the Upper Peninsula of Michigan and Minnesota to steel mills in the lower Great Lakes region,” said tom Dower, Senior Director, Government relations for ArcelorMittal Americas. “However, the lock system is highly antiquated, and its failure could have catastrophic impact, not only on the transport of iron ore but the entire economy.” ArcelorMittal is a leading steel and mining company, which uses water transportation to deliver raw materials and finished products safely, securely and efficiently. currently, of the four locks located in the Soo, only two are operational—the Poe and MacArthur. the decommissioned Davis and Sabin locks—built in 1914 and 1919, respectively—would be demolished and replaced with the new Poesized lock—a move Dower supports. “Simply put, this important infrastructure must be updated,” he said. “Given the importance of the Soo Locks to steel production and our ability to serve critical steel markets including automotive, defense, appliance and machinery, this project is a high priority for ArcelorMittal. Momentum for the Soo Locks project is building rapidly, and we are fortunate to have a very supportive bipartisan congressional delegation across the Great Lakes advocating for this project.” Stakeholders like Dower and Weakley will continue to advocate for the lock since a decade of funding cycles remain ahead. However, combining the Michigan funds with the corps’ FY19 funds can cut construction time by a year and save taxpayers $30 million in overall construction costs. “the locks are the backbone of American steel industry, power generation, construction and essential for international trade with America’s heartland,” said Mark Pietrocarlo, LcA board chair. “this new lock provides resiliency and assurance that Great Lakes’ commercial maritime traffic will continue to support 237,000 jobs and drive $35 billion annually in economic activity.” Janenne Irene Pung . Construction will take place over the next 10 years and be funded through additional annual appropriations. GrEAt LAKES/SEAWAY rEVIEW October-December, 2018 13 T r A D E P A T T E r N S A Quick Look Canada’s red lines • Five American poison pills • Domestic • International • What happens next? • Questions, questions … The following analysis was prepared prior to the USMCA signing deadline by Tactix Government Relations and Public Affairs. For additional information, contact Alan Young at alan.young@tactix.ca. A new era of trade? Initial analysis of the United States-Mexico-Canada trade deal Canada, the United States and Mexico are moving on from, in the words of U.S. President Donald Trump, “the worst trade deal ever made,” the North American Free Trade Agreement (NAFTA), to “the single greatest achievement of all time.” It frayed relationships, jangled nerves and took much last minute ‘mixing of water with wine,’ but the United States-Mexico-Canada Agreement (USMCA) was finally agreed to, in principle, in the waning hours of September 30. With apologies to our Mexican friends, this commentary focuses a lens on how the United States’ so-called ‘poison pills’ and Canada’s ‘red-line’ negotiation conditions fared at the end of the day. We also explore the domestic and international political implications of the new continental trade pact for Prime Minister Trudeau’s government. deployed against a bigger, more powerful SOURCE: NICOGUARO / CC BY 3.0 George Foreman in their infamous “rumble in the Jungle” boxing match in 1974. canada’s chief negotiators, the Hon. chrystia Freeland and Steve Verheul, positioned themselves on the ropes in a defensive posture, absorbing punishing verbal body blows but counter punching with facts and firm resolve. they had ‘red lines’ not to be crossed. Canada’s red lines. Prime Minister trudeau gave his team of negotiators these red line marching orders: • Protect canada’s supply management system • Maintain NAFtA chapter 19 dispute resolution provisions • Preserve canada’s existing cultural industries exception • Avoid imposition of U.S. tariffs on canadian automotive exports While the ‘devil is in the details’ and the text of the agreement in principle remains to be turned into binding legal language, our initial conclusion is that canada was largely able to avoid crossing these red lines. that being said, canada’s dairy sector was opened up to U.S. imports of dairy products to some degree, continuing the trend observed in canada’s agreement with the European Union (cEtA) and in the comprehensive and Progressive Agreement for trans-Pacific Partnership (cPtPP), angering canadian dairy farmers and the dairy-farm rich provinces of Ontario and Quebec. Poison pills and red lines From the outset of the negotiations that canada did not want, unless it was to truly modernize NAFtA, federal officials knew they were engaging in an adversarial process, one quite contrary to their experience and to their philosophy of international trade. U.S. President trump had made it crystal clear that he favored and savored a zero-sum, “I win, you lose,” approach to trade negotiations. Accordingly, the canadian government implemented a game plan that focused on communicating with a broader American audience—senators, representatives, state governors and reliable media outlets— rather than dealing exclusively with United States trade representative (UStr) robert Lighthizer and the trump administration. canada’s purposeful approach was twofold: (a) to foster new and strengthen existing peer-to-peer relationships in the U.S.; and, (b) to counter misstatements and falsehoods about the trade relationship between canada and the United States with facts, often produced by American government sources. At the same time, the canadian government cultivated key relationships with a few members of President trump’s inner circle, most notably his daughter, Ivanka, and son-in-law, Jared Kushner. As the negotiations reached their eleventh hour, this intense relationshipbuilding demonstrated its value to the canadian negotiating team. the underlying purpose of canada’s approach to the negotiations was to protect canadian interests from substantial harm, as best as could be done under the circumstances. It was believed this outcome could be achieved by erecting a defensive shield against a highly aggressive, bullying adversary, one that included threats to cause “the ruination” of canada by imposing tariffs on automobiles. In effect, canada adopted a “rope-adope” defense, one that Muhammed Ali T r A D E P A T T E r N S Moreover, absolute protection against system preserved; up to 3.9 percent mar hensive and Progressive Agreement for the imposition of tariffs on canadian au ket access to canada’s dairy industry im trans-Pacific Partnership tomotive exports to the United States was plemented over 20 years It is fair to conclude that the United not achieved. In the event that President 4. Sunset clause: Agreement termi- States mixed water with its wine in order trump uses his authority to declare cana nates in five years; Final outcome: Formal to conclude bilateral negotiations with dian automotive imports a threat to na review every six years; termination in 16 canada. It is also fair to conclude that tional security, which the USMcA does years but parties can agree to extend for canada’s non-partisan, peer-to-peer relanot prevent, a side letter between the two additional 16 years after each review tionship building with U.S. legislators and countries provides that canadi- with Jared Kushner proved benan exports of 2.6 million passen- eficial as the midnight deadline ger vehicles and all light trucks approached on September 30. The underlying purpose of Canada’s would be excluded on an annual basis, as well as $32.4 billion in approach to the negotiations was Political implications auto parts. Domestic. All canadian Prime Five American poison pills. to protect Canadian interests from Ministers shoulder three funda- UStr representative Lighthizer, mental responsibilities: at the behest of President trump, substantial harm, as best as could • Maintain national unity laid out these five ‘poison pills’ • Strengthen the economy be done under the circumstances. at the outset of the negotiations: • Manage the relationship 1. Auto rules of origin: 50 with the United States percent U.S. content; 85 percent North 5. Government procurement: U.S. acthe yearlong-plus NAFtA re-negotia- American content. Final outcome: 75 per cesses canadian procurement on dollar tions tested Prime Minister trudeau in all cent North American content; 70 percent for-dollar basis; i.e. canada accesses 10 three of his critically important duties. North American aluminum and steel con- percent of U.S. market, U.S. accesses 100 Furthermore, selling the USMcA to canatent; new labor value component percent of canadian market. Final out dians in the months ahead will continue 2. binding dispute settlement: Elimicome: canada and U.S. retain access to to test the PM. these stakes will only innate chapter 19. Final Outcome: chapter each other’s procurement markets, includ tensify as the October 2019 national elec19 preserved ing at the sub-federal level, through cur tion looms ever closer. 3. Supply management: Eliminate canrent World trade Organization obliga the stark reality is that the Prime Minada’s supply management in dairy prod tions; canada and Mexico procurement ister had no political choice but to secure ucts. Final outcome: Supply management obligations to be governed by compre a new continental trade agreement. Not T r A D E P A T T E r N S doing so could have inflicted considerable U.S. relationship will be an ongoing does not approve of canada’s trade agreeharm on canada’s economic wellbeing, challenge for Prime Minister trudeau, ment, the USMcA could be cancelled. particularly if President trump followed given the current occupant of the White Limiting canada’s trade diversification through on his threat to impose tariffs on House. As the USMcA ratification pro- policy in this way was a big price for automotive exports from canada if an cess winds its way through the three sig canada to pay in order to seal the deal. agreement was not reached. If you will natory countries, we can expect official President trump may be declaring pardon the pun, this threat was truly the Ottawa to continue orchestrating its pro- victory, but the question must be asked: at ultimate trump card. gram of nurturing peer-to-peer relation- what cost? His administration’s approach With an agreement to the trilateral negotiain principle in hand tions from the outset and the need to sell it to was to “win” at the ex- While the ‘devil is in the details’ and the canadians across the pense of his two nextcountry, the trudeau text of the agreement in principle remains to door neighbors, includ government already fac- ing his country’s closest es challenges on the na- be turned into binding legal language, our ally, canada. tional unity front. On- It was not only ca- initial conclusion is that Canada was largely tario Premier Ford has nadians and Mexicans attacked the agreement’s able to avoid crossing these red lines. who took note of his provisions increasing bullying tactics and outaccess for American rageous rhetoric. the dairy products. Quebec Premier Legault ships with D.c. and state legislators, world was watching as these negotiations will follow suit, given the strength of the while simultaneously biting their collec unfolded. dairy lobby in his province. the federal tive tongues should the U.S. President It is fair to conclude that the United government has already signaled that it spew venomous ad hominem attacks in States has done considerable and addiwill resolve this federal-provincial head- the future. tional harm to its global reputation. there ache in the manner that Ottawa typically One important implication of the is no better proof than that offered by witsolves such matters; by bringing out its USMcA is that any future trade treaty nessing the European Union trade comcheckbook, this time for transitional fi that canada enters into with countries missioner spring to the defense of cananancial assistance to canadian dairy the United States considers to be “non- da’s Minister of Foreign Affairs in response farmers. market participants” (e.g. china) would to the President’s personal attack on her in International. Managing the canada- have to be vetted by the U.S. If the U.S. the days leading up to September 30. T r A D E P A T T E r N S What happens next? Now that the exhausting and high wire negotiations have concluded amongst canada, Mexico and the United States, the text of the USMcA must go through a legal scrubbing process. After any major treaty negotiation is concluded the final text of the agreement must be vetted by a group of lawyers of the parties to the trade treaty. this legal scrubbing procedure can result in minor changes to the treaty text. Moreover, the scrubbed English text of the USMcA must be translated into French and Spanish. However, scrubbing and translation by no means brings the USMcA to a conclusion. canada’s Parliament, Mexico’s Senate and the U.S. congress must pass legislation ratifying the USMcA before its provisions come into force. Specifically to canada, the ratification process looks like this: • An Order-in-council must be issued authorizing the PM and/or the Minister of Foreign Affairs to sign the USMcA on behalf of the Government of canada • Once the agreement is signed, the text is to be tabled in the House of commons for 21 sitting days of discussion. It bears noting, however, that this treaty tabling process can be set aside in cases where a treaty’s ratification is urgently required • A bill implementing the USMcA must be tabled in the House of commons; as is the case with all such bills, it must undergo three readings in both the House of commons and the Senate • Existing regulations must be reviewed and, if necessary, amended in order to be brought into conformity with the provisions of the USMcA. Even after all of these steps are concluded in canada, the USMcA cannot be fully applied unless and until the agreement is ratified by Mexico and the United States President Trump may be declaring victory, but the question must be asked: at what cost? Questions, questions … canada’s lengthy process to bring a trade treaty to life raises a significant question: Will the USMcA be ratified before canadians go to the polls to elect a new Parliament on October 21, 2019? the answer is that it probably could be if the government wants it to be (with the important caveat that the passage of any bill being considered by a Senate now dominated by Independent Senators cannot be guaranteed). Foregoing the 21-day sitting days of discussion by MPs, as noted above, would send the strongest possible signal that the government is intent on securing ratification before Parliament is prorogued in the summer of 2019 in advance of the October election. barring this step being taken, history suggests it will be considerably challenging for the USMcA to be ratified in canada before October 21, 2019. this raises another provocative question: Will the 2019 election be the second canadian election campaign in the past three decades dominated by heated political discourse over a free trade agreement involving canada and the United States? For a summary backgrounder of the USMcA as prepared by Global Affairs canada, go to: http://international.gc.ca/tradecommerce/ trade-agreements-accords-com merciaux/agr-acc/usmca-aeumc/summarysommaire. aspx?lang=eng. . E X E C U T I V E r O U N D T A b L E New port executives Region’s newest wave of leadership weighs in The year has brought an infusion of new port leadership in the Great Lakes/St. Lawrence Seaway system. It impacts leadership in five Great Lakes states and the Province of Ontario. This Executive Roundtable discussion shows where the port executives align and where they differ, with each other and with known leadership styles and attitudes in the system. Our discussion includes Kyle Burleson from Michigan, Vanta Coda from Indiana, Deb DeLuca from Minnesota, Steven Salmons from Ontario, Adam Schlicht from Wisconsin and William Scriber of New York. Let’s meet them and begin our discussion. Kyle Burleson was named Executive Director of the Detroit/Wayne county Port Authority in May 2018, after nearly a year as Interim Execu tive Director. Prior to joining the port authority, he acted as Legislative Director in the office of congresswoman candice Miller, where he han dled a legislative portfolio consisting of judi cial, energy and environmental issues. Vanta E. Coda II joined the Ports of Indiana as Presi dent & cEO in July 2018 with 25 years of experi ence in maritime and multimodal operations on the Great Lakes, Gulf of Mexico and Ohio river. Prior, he worked as Executive Director for the Duluth Seaway Port Authority. coda has been involved with maritime policy initiatives as President of the Minnesota Ports Association, board member for the American Asso ciation of Port Authorities, and member of both the American Great Lakes Ports Association and the U.S. Department of transportation Maritime transportation System National Advisory committee. Deb DeLuca was appointed Executive Director of the Duluth Seaway Port Authority effective Au gust 16, 2018, becoming the first woman to take the helm of the organization in its 60-plus year history. She is currently chair of the Harbor technical Advisory committee for the Dulu th-Superior Metropolitan Interstate council, and serves on the Executive committee of the Duluth Area chamber of commerce and represents the port on the Mayor’s Economic Development coalition. Steven Salmons was named President & cEO of the Windsor Port Authority in May 2018, bringing more than 25 years in senior executive and advisory leadership to the position. He previously served as General Manager, com munity Services for the city of Windsor, Senior Policy Advisor in various provincial govern ment departments and as Director of community and Develop ment Services for Lakeshore, Ontario. Adam Schlicht was appointed Municipal Port Director in May 2018 at Port Milwaukee, where he directs operations at the port and adminis ters Foreign trade Zone No. 41. Since 2010, he has held positions at the Saint Lawrence Sea way Development corporation, most recently leading the Great Lakes regional Initiative in cleveland, Ohio. William Scriber has been the Acting Executive Director of the Port of Oswego Authority since December 2017. He previously served as the port’s Manager of Port Logistics and Adminis trative Services for eight years. Prior to coming to the port, he served as commissioner of Elec tions at the Oswego county board of Elections and was elected President of the New York State Election com missioner Association. At the Center of It All! Port Windsor 3190 Sandwich Street Windsor, ON N9C 1A6 Canada 519.258.5741 portwindsor.com • Port Windsor is at the half-way point of the Great Lakes-St Lawrence Seaway • Windsor-Detroit is the largest trade point in North America • Direct access to all major highways and freeways in Ontario and Michigan • 5 hours or less to Toronto, Pittsburgh, Cincinnati, Indianapolis, Chicago • 125 million customers within 1 day’s drive of Port Windsor • On-site rail connections to all major lines and the CP rail tunnel to the US • Low cost and even lower Canadian dollar! Port Windsor…central to your needs! E X E C U T I V E r O U N D T A b L E New port executives Great Lakes/Seaway Review: Was it always your goal to lead a port? Burleson: Honestly, no. I started my career in Washington, D.c., working for a member of congress on the committee for transportation & Infrastructure, which is where I got my start working on maritime issues. Further, I grew up racing sailboats, and still do. As a result, I have a keen interest in the ships we saw while racing, but never thought I would be in the business of ports. Once I decided to move home to Michigan, I saw an opening at the Detroit/Wayne county Port Authority (DWcPA), and I knew one of the board members, so that was my “in,” so to speak. I’ve been here ever since. Coda: the simple answer is no. but I followed my passion into a career of transportation and logistics. this led me to port management through the typical twists of career changes, opportunities and the good luck of learning from people I greatly respected. I’ve been very fortunate in that I have never had a job I didn’t enjoy. DeLuca: No—my first work with a port or port authority was as a contractor for the Saint Paul Port Authority (river Port) in the early 2000s. I was impressed with the variety and quality of work they did, but I never dreamed I would be in a position to be the port authority director. In 2009, I conducted work for the Duluth Seaway Port Authority as a contractor. Again, I was fascinated by the breadth and importance of their work, but I did not imagine that I would one day fill what was then Adolph Ojard’s role. Salmons: Well, frankly, I never gave ports much thought in all honesty. And that’s a surprise to me given that I grew up just blocks from the Detroit river. Even as a student, I lived across the street from perhaps the original trade port on the Great Lakes dating back to the 1500s. It has been a transforming experience in just a few months for me to realize just how strategically vital ports are to the people and businesses of my community. Schlicht: My career goal has always been to make a difference through public service in communities I care about. My Great Lakes career started by accident—when the former Saint Lawrence Seaway Development corporation (SLSDc) chief of Staff Anita blackman convinced me to join the Seaway—but it has been a pleasure and a passion every day in the almost 10 years since. Joining Port Milwaukee as Director is the most extraordinary opportunity of my career to-date, allowing me to return to my hometown and serve the people and businesses of Milwaukee by promoting international trade and catalyzing multimodal solutions as the port Director. Scriber: For a number of years, I have been involved with logistics as it relates to air, sea and rail both through my military career and working for, at the time, one of the largest freight forwarders in the world. So leading a port has been a natural progression in my career. Great Lakes/Seaway Review: Please share an experience that has helped prepare you for the top spot at the port. Burleson: My work in Washington was a tremendous help with regard to working for a port authority. I worked on issues involving ballast water, infrastructure needs, labor issues and other matters that built a solid base of knowledge to begin working at a port. there’s no question I’ve learned a tremendous amount and the four-and-a-half years I’ve been with DWcPA has further assisted. Coda: I don’t believe there was any single experience. It’s the culmination of all my experiences—and the gentle guidance and encouragement I received from a very young age that through servant leadership, what I also consider steward leadership—one should always strive to make things better. Not only did the important adults in my life provide this guidance, but the boy Scouts instilled that in me. Leave things better than you found them. If I strive to do nothing but that, I will be proud of what I have left behind. DeLuca: So many experiences have helped in preparation. I would have to say working for the past four years as the Government and Environmental Affairs Director at the Duluth Seaway Port Authority with our excellent team, coupled with running my own business for 14 years and launching a non-profit organization (Minnesota brownfields) as one of four founding board members have collectively helped prepare me for this position. Salmons: Leadership is a blend of experiences, both life and professional, beginning with great mentors who encouraged me to consider the complexity of issues, recognize opportunities and to always act with integrity and kindness toward others. but it also includes an innate restlessness for the status quo and the ability to define a vision the will motivate others to follow—and succeed. In truth, preparation for the top spot of a port is no different than anywhere else. You can learn the technical issues of a port, but you can’t learn leadership on the job. Schlicht: the response to the St. Laurent cruise ship incident at Eisenhower Lock in 2015 was perhaps the most trying few days of my career. As the SLSDc’s then-Emergency coordinator, I witnessed firsthand the responsibility, stewardship and dedication of Great Lakes mariners, in both times of crisis and in day-to-day operations. the Seaway’s cumulative response was, quite simply, heroic. I was privileged to be in the presence of incomparable Great Lakes leaders during that trying time. Ever since, I have never forgotten the commitment and the public trust we are entrusted with: for our tenants, customers, citizens and stakeholders, in times of great trial and in those of great accomplishment. Scriber: I have had multiple experiences that required focusing on the completion of the mission or task. One such experience occurred while I was working for a freight forwarder and we were attempting to acquire a major corporate account. I was tasked with developing a delivery plan to the Middle East. My E X E C U T I V E r O U N D T A b L E Detroit company had not been successful up to that point in acquiring their business. After reviewing their prior interactions with the company, I clearly understood why they failed. My analysis was clear upon speaking with the actual people in the export department. I listened to them explain their method of operations which gave me the necessary knowledge to put together a plan that met their needs. So my take away from that experience is that listening to people and understanding the operation is crucial to being a successful leader. Great Lakes/Seaway Review: When assessing the port, what are your primary hurdles? Burleson: there is no question that infrastructure is our biggest hurdle. Improving our cargo terminal and making sure we are ready for the future of cargo in the Great Lakes is my No. 1 priority. Coda: In this role, I am responsible for multiple ports. And as we say, if you’ve seen one port, you’ve seen one port. All ports come with challenges. From a Great Lakes system perspective, we have some longterm challenges that I am compelled to see as opportunities. reaching deeply into the heart of the Midwest through our ports will continue to be essential, and in a 50-year horizon, will become increasingly necessary. We will need to encourage the increased utilization of ports and sustain, nurture and grow port businesses while we are simultaneously facing logistical and professional turnover. consider, too, that supply chains are hard to bend. What I have experienced within the last five years in the Great Lakes system is an even greater realization of how tough that bend is. but we can’t give up and we must work together to leverage any challenge into an opportunity for growth and development. DeLuca: For the Port of Duluth-Superior as a whole, the primary hurdles include maintaining port infrastructure, protecting the working waterfront, managing the cost of shipping on the Great Lakes/St. Lawrence Seaway system so that it stays competitive, educating the public about the importance of shipping to the regional economy and maintaining our strong community ties and social license. For the Duluth Seaway Port Authority, our primary hurdles are the same with the addition of a critical need of additional space for our maritime and intermodal operations. Salmons: Unlike many American ports that have access to municipal, state and E X E C U T I V E r O U N D T A b L E federal funding, canadian ports must compete as self-sustaining economic entities. canadian port authorities are also constricted by a federal act and their Letters Patent that prescribe their sphere of influence and permissible economic activities. A Port Modernization review currently underway in canada has opened up the opportunity to discuss alternative financing options, an expanded capacity for business ventures such as offsite logistics facilities, inter-modal hubs and other lines of trade-related business activities. this is essential to the future success of Port Windsor, and all canadian ports. Schlicht: the contemporary challenges we face at Port Milwaukee are similar to those experienced across the system. Port Milwaukee needs to continually grow its marketing profile within the North American and international maritime industry. New and existing tenants of Port Milwaukee, and their customers, must be situated for exponential business growth. Proactive and deliberate collaboration with federal regulators, including the U.S. Army corps of Engineers, U.S. customs and border Protection and the U.S. coast Guard is critical to ensure that the port’s operations are safe, secure and thriving. Protecting the environmental health of the Great Lakes while, at the same time, sustaining competitive transportation and supply chain solutions through commercial shipping on the Great Lakes is an imperative. Scriber: the primary hurdle is a lack of expansion space at the port and diversifying our revenue stream. As a port that is located in a city, over the years we have lost revenue generating space to development around us. Additionally, as a bulk port our commodities are limited and vary depending on seasonal fluctuations. Great Lakes/Seaway Review: What do you anticipate as the port’s greatest potential for growth? Burleson: I believe that economic growth, particularly as it pertains to manufacturing, is our biggest growth potential. Machines will need to be shipped, factories set up and steel will be needed to produce goods. Southeast Michigan has evolved but is still very much a manufacturing center, which will lead our growth. Coda: I have always believed you have to be who you are. Indiana is an agricultural and a steel manufacturing state. Our people are world-class and without peer in these critical areas. I believe our growth will come from who we are. I don’t see any ‘quit’ in our future. those areas will continue to be vital growth engines for our ports and for our economy. DeLuca: For the Port of Duluth-Superior as a whole: as a nonhazardous, natural resources bulk commodity port, our biggest opportunities for growth include: a) expanding the use of the system for short-sea shipping, which would also help reduce freight traffic on congested highways, and b) development of value-added natural resource-based products that would add to our port’s cargo mix. For the Duluth Seaway Port Authority: our biggest potential for growth, at this point in time, is continuing to expand our intermodal terminal and logistics park services. Salmons: construction of the c$5.7 billion Gordie Howe International bridge between Windsor and Detroit will cement this region as North America’s premier trade point between two G8 nations. Up to 12,000 trucks cross here each day. the new bridge location is ideally situated in the port lands, directly connected to the most heavily traveled highway in North America and serviced by a local railway. beyond a short-term bump in the import of construction materials over the next five years, the long-term offers a key opportunity to integrate both logistics and intermodal trade hubs into the opening of the new bridge. Schlicht: Opportunity lies in reinstating intermodal service at Port Milwaukee, retaining world-class tenants and identifying new tenants for the highest and best use of our facilities and reinforcing Milwaukee as a premier turnaround port for Great Lakes cruise vessels. Scriber: Growth potential is found in diversifying our product mix and looking to develop more tourist related revenue streams and looking to modernize and redesign our dock space for grain export. Great Lakes/Seaway Review: Please provide an estimate, in percentages, of how your port generates revenue: waterborne commerce, rail and truck transportation and various other enterprises, such as marinas, passenger cruising, airports and recreation. Burleson: Our port is entirely waterborne at the current time. We are currently in the introductory phases of planning for expansion to give the dock rail access. Other privately owned terminals may currently have rail access. Coda: that’s difficult to parse because nothing rests at a port. From a maritime perspective, over 60 percent of our waterborne commerce is destined or originated from our customers at the port—our port tenants. Our tenants are using the waterways to a great degree from a tonnage perspective. Since nothing comes to a port to stay, the fact that we also have robust rail and highway infrastructure is essential. From a revenue perspective, we may have 90 percent of our traffic that touches the multiple modes— and in some cases—all three (water, rail and highway). In other cases, we may derive some small revenue from each one. DeLuca: that data is not readily available. the Duluth Seaway Port Authority is not a landlord port, so we do not have direct access to these detailed ratios for the port as a whole. there are four class 1 railroads, an extensive highway system and an international airport that serve the twin Ports community. We don’t have revenue data for all of those components. Salmons: canadian ports are largely restricted to traditional water-side port activities. the bulk of our revenue comes from land leases, wharfage and cargo fees on non-owned lands. Windsor also operates a 98-slip public marina that runs break even. Schlicht: As primarily a landlord port, the port generated 63 percent of its revenue through recreational and commercial leases of its facility in 2017, including the world-famous Summerfest music grounds. thirty-seven percent of the port’s revenue is related to its cargo, including billable labor, docked vessel revenue, utilization of Foreign trade Zone No. 41 and other miscellaneous revenues. Burns Harbor E X E C U T I V E r O U N D T A b L E Duluth SOURCE: ROBERT WELTON Scriber: Water commerce—60 percent; rail transport—25 percent; truck transport— 10 percent; and marina commerce —5 percent. Great Lakes/Seaway Review: How important are intermodal connections at the port today and how important do you anticipate them to be 10 years from now? Burleson: Intermodal connections will only become more important in the future. currently, the port authority’s cargo dock lacks a rail connection, but it is something we are actively seeking. Coda: they are 100 percent important today and they’ll be 100 percent important in the future. A port is a node of transaction. DeLuca: the Duluth cN Intermodal terminal opened on the Duluth Seaway Port Authority’s clure Public Marine terminal in March 2017. We have outperformed expectations for all of our key performance indicators within the first year and a half of operations. At this point, the intermodal terminal provides road and rail service coupled with logistic park services. We see this development as foundational for Duluth Seaway Port Authority, further diversifying our revenue sources, as well as for regional economic development. For the first time in the region’s history, businesses in northern Minnesota and Wisconsin have direct access to ports on all three ocean coasts and, perhaps most importantly, to Asian markets. customers using the intermodal terminal have cited that they are saving up to a third on their freight cost

Maritime Editorial