Inland Port inlandportmagazine.com @inlandportmag
2012 Issue V
Mike Steenhoek
Exclusive Interview on His New Appointment to the Supply Chain Advisory Committee
Port of Green Bay Port of New Orleans AWO Seattle Meeting
IP Editorial Board
Jennifer Carpenter American Waterways Operators Sr. Vice President-National Advocacy, AWO www.americanwaterways.com
INLAND PORT MAGAZINE 2012 Issue V • Volume V ISSN 2156-7611
www.inlandportmagazine.com @inlandportmag Published bimonthly by
Debra Colbert Waterways Council Senior Vice President, Communications Waterways Council www.waterwayscouncil.org
HJP Hudson Jones Publications, LLC Houston, Texas • Tulsa, Oklahoma 281-602-5400 Editor Daron Jones djones@inlandportmagazine.com
Michael Gerhardt Dredging Contractors of America Assistant Executive Director, DCA www.dredgingcontractors.org
Amy Larsen National Waterways Conference President www.waterway.org
Michael McQuillan Inland Rivers, Ports & Terminals Vice President, Hanson Professional Services www.irpt.net
Director of Advertising Jo Anne Hudson jhudson@inlandportmagazine.com
Entire contents ©2012, all rights reserved. Reproduction in whole or in part, without written permission of Hudson Jones Publications, LLC, is prohibited. The publisher accepts no responsibility for content of any advertisements solicited and/or printed herein, including any liability arising out of any claims for infringement of any intellectual property rights, patents, trademarks, trade dress and/or copyrights; nor any liability for the text, misrepresentations, false or misleading statements, illustrations, such being the sole responsibility of the advertisers. All advertisers agree to defend, indemnify and hold the publisher harmless from all claims or suits regarding any advertisements. Due to printing and ink variances, the publisher does not guarantee exact color matching. Opinions expressed by writers are not necessarily those of the publisher or staff. Readers’ views are solicited (djones@inlandportmagazine.com). Publisher reserves the right to publish, in whole or in part, any letters or correspondence received. Publisher assumes no responsibility for unsolicited material.
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Inland Port 2012• Issue V
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Wisconsin’s port of green bay
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Liebherr Delivers LHM 550 to Maine Port Authority
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AWO Members Meet in Seattle, Urge Congress to Pass Maritime Measures This Year
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Steenhoek Named to Commerce Department’s Supply Chain Advisory Committee
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On the Cutting Edge
Exclusive interview with Dean Haen, Director of Port & Solid Waste
Exclusive interview with Joachim Dobler, Head of Marketing
Exclusive interview with Soy Transportation Coalition’s Mike Steenhoek
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CSL’s Trillium Class Baie St. Paul Sets Sail for the Great Lakes
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LaGrange Address Highlights Record TEUs, $100M Investment
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Industry Notebook
22 Follow Inland Port Magazine on
@inlandportmag
Exclusive Interview with Dean Haen Director of Port & Solid Waste Brown County, WI
Wisconsin’s Port of Green Bay 4
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2012 Issue V
Talk about some of the terminal operators and what they bring to the Port of Green Bay. The Port of Green Bay has 14-terminal operators that are located along three miles of the Fox River. From cement, salt and limestone, to petroleum products and pig iron, terminal operators bring in raw materials that are developed into products or used for services we all benefit from. Our terminal operators are a large supporter of jobs, are active members of the community, contribute to the success of our area economy and have a commitment to keeping our waterways clean. The great thing about the Port of Green Bay is its rich history. The Port itself dates back to the early 1800s when waterway commerce focused on fur trading and peltry. One of the oldest terminal operators along the Port is Georgia-Pacific. It opened its Day Street mill in 1901 and is the birthplace of Quilted Northern, one of the few 100 year old brands in the United States. Today, GeorgiaPacific has four facilities in Green Bay. The newest addition to the Port was opened in 2011 by the petroleum operations division of U.S. Venture. U.S. Venture is known in the industry for its bulk storage terminals and wholesale and branded distribution of petroleum products to the transportation industry. U.S. Venture has been a major factor for the increase in the Port’s overall tonnage over the past two years. Other terminal operators include Great Lakes Calcium, an industry leader in calcium carbonate products for more than 60 years; C. Reiss Coal which has been an operator since 1904; and LaFarge North America, a major supplier of construction materials in the U.S. and Canada. Overall, the terminal operators on the Port are a reflection of the people in Green Bay and Northeast Wisconsin: hard-working, innovative, resourceful and committed.
on the Cutting Edge 2012 Issue V
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What does the Port currently offer that would be an attraction to new businesses? Our goal is to increase our visibility to new markets. Over the past few years, the Port has seen some positive changes which have been reflected in increased tonnage numbers. Because of this, the Port is in a strong position to showcase the viable business solutions we can provide to companies in Wisconsin and beyond. As a part of our strategic plan, our goal is to showcase the benefits of using the Port of 5
Green Bay and waterborne transportation. One benefit is that the Port provides businesses access to world and domestic markets using the lowest cost and most sustainable method of transportation available. In addition, Brown County operates a Foreign Trade Zone, which provides Wisconsin companies a competitive edge concerning duties on imported and exported materials in dealing with businesses that operate overseas. Waterborne transportation is also a better way to connect to regional markets and America’s Heartland. Waterborne vessels can connect with an extensive network of highways and railroads resulting in increased efficiency in the delivery of raw goods to their intended destination. Not only does the Port provide these strong benefits, but we are ready to grow through new land and building lease opportunities. Companies can grow their business by either working with an existing Port facility or developing a new property. Describe the overall economic impact of the Port on Northeast Wisconsin. To start with, I need to mention the impact that all of Wisconsin’s ports have to the state. Wisconsin’s 15 commercial ports move approximately 40 million tons of freight valued at more than $8 billion each year and support 8,800 jobs. The economic contribution from Wisconsin’s ports to the state is $1.4 billion. The Port of Green Bay has a significant economic impact to Northeast Wisconsin. In 2010, the Port’s economic contribution was $83 million, supported more than 820 jobs and moved 1.7 million metric tons of cargo. In 2011, tonnage numbers increased by 25 percent; with terminal operators moving more than 2.1 million metric tons. These are pre-recession numbers which is a good sign the economy is improving, if only slowly. One achievement we are quite proud of is when the Port was awarded the prestigious Robert J. Lewis Pacesetter Award in 2011 for its increase in international tonnage. The Port had the highest international tonnage increase of all U.S. Great Lakes ports for the year, which was a tremendous accomplishment and is another positive sign for economic improvement. The award was given by the St. Lawrence Seaway Develop Corporation, an agency of the U.S. Department of Transportation. The Port has been discussing the possibility of an intermodal container facility. What would a container facility mean for the Port of Green Bay? Yes, that is a big priority for the Port. Having a container facility would open up the Port as a viable transportation option to countless new markets. We are fortunate that our County Executive sees the benefits of this and has formed an economic development committee through our Chamber of Commerce to investigate a possible rail intermodal facility near the Port that could grow into a port intermodal facility. We are just at the start of this path, but it would definitely be another feather in our cap in terms of attracting new business to the area. Ports know that dredging is an issue, not only with how much to dredge, but where to store materials once they are removed. Talk about what the Port of Green Bay is doing to help ease storage issues. Like most other U.S. ports, the Port of Green Bay continually faces issues when it comes to securing funding for the appropriate amount of dredging needed to navigate our harbor. That coupled with low water levels, and you can see how the ability of ships to carry cargo at capacity is impacted. Part of our issue is not only funding, but where clean 6
dredged material can be stored. One of the solutions that we have been working on since the 1990s with several partners including the USACE, EPA and Wisconsin Fish and Wildlife Service is the restoration of the Cat Island chain. The Cat Islands are a string of barrier islands and areas of shallow water located in the southern area
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2012 Issue V
Port of Green Bay
of the bay of Green Bay. Record high lake levels in the mid-1970s to 1980s and general erosion has resulted in the disappearance of the islands. But through this partnership and a $1.5 million grant from the EPA, construction has begun to protect and restore the islands. 2012 Issue V
Once construction of a wave barrier is complete, the Port will begin to rebuild the islands using clean dredged material taken from the Green Bay shipping channel to allow ships to enter the Port. We are anticipating that it will take 2.3 million metric tons of material to restore www.inlandportmagazine.com
the 1,225 acres of shallow water and wetland habitat and provide a storage solution for the next 30-50 years. In addition, the reconstruction of the islands will provide critical habitat for birds, fish and mammals. The Cat Island project demonstrates 7
Port of Green Bay
how dredging material can be re-used for the benefit of the environment and keep our port economically viable at the same time. How important is it for the Port to connect with the community? What are some of the efforts you are putting forth to make that connection? As I said before, the Port is a part of our area’s history. In fact, access to the waterways is a large part of why Green Bay is where it is today. In the past, the waterways brought in business, jobs and helped build communities and we continue on that same path today. Connecting with the community is a huge piece of that. When people who live here understand that the impact of bringing in raw materials goes further than a ship’s destination, you start to see an investment from the community. The Port of Green Bay and its terminal operators are committed to making a connection with our community. We have seen great success in using a mix of traditional media like newspaper, magazines and television, engaging in Twitter and other social media platforms and finding unique ways to interact with the community. Some of these include sponsoring free city concerts that take place along the river, working with our local museum on an exhibit about Port’s history, holding a contest 8
where community members can guess when the first ship of the season will come into port, developing a free school curriculum that focuses on shipping, commerce and the environment, and speaking to area civic, service and business organizations on the accomplishments and goals of the Port. In the end, our goals are to improve our community, contribute to the economic success of the area, work with our local government and other area businesses to grow and develop new jobs and keep the Greater Green Bay area moving forward. Engaging with our community will help us continue to do just that. IP
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2012 Issue V
2012 Issue V
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Liebherr Delivers LHM 550 to Maine Port Authority
Exclusive Interview with Joachim Dobler Head of Marketing Liebherr-Werk Nenzing GmbH AUSTRIA
LHM 550 Searsport, Maine
The Maine Port Authority just acquired a LHM 550, to go along with its LHM 320, which has been in action for them for more than a decade. Did that customer have any special needs or require any modifications for their new crane? If the need occurs to work in the backyard, the LHM 550 has to pass over a trestle bridge, this was extremely important for the customer and required the crane to have the lowest possible wheel loading. The new LHM 550 has a total weight of approx. 470 tons. Now, to comply with the very stringent load restrictions of the bridge, the crane has 24 individual wheel sets in order to minimize the maximum load per tire and not to jeopardize the structural stability of the trestle bridge. 10
Is customizing a crane for a particular port’s needs a common thing for Liebherr? What is the most unusual modification you have had to make to a crane? Liebherr Mobile Harbor Cranes are designed according a modular principle which allows for a large degree of customizing according customer specific requirements. The most important parameters, like number of wheel sets, winch configuration, cab height, boom length or motorization can be adapted to suit the customer’s needs. Have there been any strange or unusual tasks for one of your cranes? A Liebherr Mobile Harbor Crane is a multipurpose crane. Actually, it’s the mulwww.inlandportmagazine.com
tipurpose crane, especially designed to cope with several cargo-handling requirements. With a quick change of the lifting attachment, a Liebherr Mobile Harbor Crane turns from a container crane into a bulk-handling machine or a heavy-lift specialist. As a manufacturer, have you seen any change in what ports need cranes and heavy equipment to do over time, perhaps as cargoes have changed or evolved? In general, especially container vessels are getting larger and larger, and project cargo is becoming heavier. Cranes have to follow this development, especially in terms of maximum outreach and maximum capacity. The biggest Liebherr 2012 Issue V
Aerial views of the nw Liebherr Service Center, under construction in Miami, Florida.
Mobile Harbor Crane available today has a maximum outreach of 58m and a maximum capacity of 208 tons. What is the average lifespan of a crane like the LHM 550? This is depending very much on the application and on the operating hours per year. There are several LHMs currently in operation with over 50.000 operating hours , whereas the first of these crane was put into operation in 1989. Heavy Machines handles sales for the Lower Mississippi, while American 2012 Issue V
State Equipment handles the Upper Mississippi. Can you describe your relationship with these outlets? The Liebherr Mobile Harbor Crane Department handles sales directly from the headquarters in Nenzing with support from the local sales and service branch in Miami, Florida. Can you describe how Liebherr’s US distribution for the Mobile Harbor Crane product line is organized? The Liebherr Mobile Harbor Crane Department handles sales for this product line from our headquarters www.inlandportmagazine.com
in Nenzing, Austria. US customers can also contact Brian Spain in the Miami sales and service facility. How does your manufacturing process work? Do you have basic crane structures already built, and then adjust or modify as need be after a sale? Or is the crane built only after it is sold? Over the past five years Liebherr is selling on average over 80 units , our manufacturing process is based on a production plan, which ensures the shortest possible delivery times. This means first come, first serve. IP 11
AWO Members Meet in Seattle, Urge Congress to Pass Maritime Measures This Year D
uring its Fall Convention held October 10-12 in Seattle, AWO members were briefed on the status of congressional advocacy and outreach activities on some of the industry’s top priority issues, including 1) establishing a uniform national standard for ballast water and other vessel discharges, 2) eliminating the two-trip requirement for TWIC card application and renewal, and 3) building strong and consistent Congressional support for the Jones Act. With Congress returning to Washington after the November election to finish its legislative business, AWO’s members called upon Congress to take action this year to ensure action on these priorities before year’s end. Before it adjourned on September 22, the Senate passed H.R. 2838, the Coast Guard Authorization Act, a bill that sets federal spending for the agency for 2012 and 2013. The House passed a Coast Guard authorization measure earlier this year, and passage of the Senate bill ensures a conference between the chambers to address differences in the legislation. Congressional staff members from the House and the Senate are currently negotiating language to be included in a compromise bill for Congress to take up when it returns after the election. One of the items under active discussion is a vessel discharge reform title. The House-passed Coast Guard bill contained such a title and S. 3332, a bipartisan bill introduced by Sen. Mark Begich (D-AK) with 12 cosponsors, indicates strong Senate interest in establishing a uniform national framework for the regulation of vessel discharges as well. AWO is strongly backing the inclusion of a vessel discharge reform title that will end the current regulatory nightmare in which two federal agencies and multiple states regulate ballast water and other vessel discharges under a patchwork of overlapping and sometimes contradictory federal and state authorities. A consistent, effective national regulatory regime based on sound science is urgently needed. Another issue poised for consideration during HouseSenate negotiations on the Coast Guard authorization bill is legislation that would provide relief from the current TSA requirement that mariners make two trips to a TWIC enrollment center to apply for and activate their TWIC cards. AWO members have consistently advocated for legislative relief, and were very pleased when H.R. 3173, a bill introduced by Rep. Steve Scalise (R-LA) with 42 bipartisan co-sponsors, passed the House by voice vote in June. Companion legislation, S. 1966, introduced by Sens. Kelly Ayotte (R-NH) and Mark Begich, is pending in the Senate. This legislation is urgently needed to provide relief to the nation’s two million transportation workers, some of whom must to travel hundreds of miles to the nearest TWIC enrollment center to first to enroll for, and then to pick up and activate, their card. AWO is also hopeful that the House-Senate Coast Guard bill conference will provide the opportunity for Congress to once again speak authoritatively on its bipartisan support for the Jones Act by including provisions that would tighten and clearly define the circumstances under which Jones Act waivers could be granted. This discussion takes on greater urgency as the Administration has failed to indicate how it would change the approach it followed during last year’s drawdown of the Strategic Petroleum Reserve, which resulted in an unprecedented number (more than 40) of Jones Act waivers while available U.S. vessels and mariners sat idle. In June, AWO President & CEO Tom Allegretti had the opportunity to testify before the House Subcommittee on Coast Guard and Maritime Transportation on behalf of AWO and the American Maritime Partnership. Mr. Allegretti questioned the Administration’s rationale for granting the Jones Act waivers when American-owned, American-flagged and American-crewed vessels stood ready to assist with the transport of SPR oil, criticism echoed by Subcommittee Republicans and Democrats alike. AWO members strongly support legislation to help ensure that the Administration upholds the Jones Act as the law of the land and does not repeat the mistake of outsourcing U.S. jobs to foreign-flag vessels. In spite of the current partisan atmosphere on Capitol Hill, AWO members have worked very hard to ensure that these items are among those that Congress will consider when it returns to Washington after the November election. The message from the Fall Convention in Seattle, Washington, to the halls of Congress in Washington, D.C. was clear: Congress needs to pass measures to significantly help the nation’s domestic maritime industry so it can continue to provide quality jobs across the country and safely and efficiently move the nearly one billion tons of cargo that are transported up and down our rivers and along our coasts while it has the opportunity this year. IP 12
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2012 Issue V
Steenhoek Named to Commerce Department’s Supply Chain Advisory Committee
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Mike Steekhoek at the Panama Canal. 2012 Issue V
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he U.S. Department of Commerce recently appointed Soy Transportation Coalition executive director Mike Steenhoek to its newly-established Advisory Committee on Supply Chain Competitiveness. The committee, comprised of 40 senior-level private sector representatives of multiple industries and supply chain experts appointed by the Secretary of Commerce, will advise the Secretary, the U.S. Department of Transportation and other U.S. agencies on supply chain issues that affect the international competitiveness of U.S. businesses. Acting Secretary Blank attended the first Committee meeting at U.S. Department of Commerce headquarters on October 19. “In order to be competitive in today’s global economy, American manufacturers need to be able to move products and goods securely, quickly, and efficiently within our borders and beyond,” said Acting U.S. Commerce Secretary Rebecca Blank. “The Advisory Committee on Supply Chain Competitiveness will provide crucial input on issues related to national freight infrastructure and policies so that we can best support millions of U.S. businesses export goods, compete domestically and globally, and support American jobs.” The Advisory Committee on Supply Chain Competitiveness will act as a liaison between industry and government, and is an important step toward ensuring regular contact with the supply chain industries, including manufacturers, distributors and exporters. The Committee’s advice will also be useful in the development of a national freight policy and in executing the President’s National Export Initiative, which aims to double U.S. exports by the end of 2014. “I appreciate Acting Secretary Blank’s recognition of the impor13
tance of transportation to the competitiveness of the American economy,” explains Steenhoek. “In particular, I appreciate the department’s insistence that agriculture has a seat at the table. I look forward to participating in this important initiative and highlighting the transportation challenges facing the soybean industry.” Established in 2007, the Soy Transportation Coalition is comprised of eleven state soybean boards, the American Soybean Association, and the United Soybean Board. The goal of the organization is to position the soybean industry to benefit from a transportation system that delivers cost effective, reliable, and competitive service. Mike was kind enough to give IP a minute of his valuable time to update us on his new role and the Soy Transportation Coalition. Congratulations on your new appointment. How did this come about? Did they approach you, or was it a case of you having to throw your hat in the ring? I was notified by the Department of Commerce about the establishment of the advisory committee. I, in turn, expressed an interest in and willingness to serve. It’s
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my understanding that the nominations far exceeded available positions on the committee. I was therefore pleased to have been selected. Have you worked with this committee previously in your role a Executive Director of the Soy Transportation Coalition? The committee is a new initiative of the U.S. Department of Commerce. The inaugural meeting occurred in Washington, DC, on October 19. What do you hope to accomplish now that you’re on the other side of the ropes, so to speak? Do you come in with a set agenda? First and foremost, for this to be a worthwhile investment of time and energy, the committee must ultimately provide recommendations that are specific, achievable, and measurable. All too often advisory committees do nothing more than simply restate widely acknowledged problems or offer ambiguous solutions. Since the committee exists to advise the federal government, we need to be able to offer specific commentary on two fundamental questions: 1.) What is the government currently doing related to transportation that it should not be doing? and 2.) What is the government not doing related to transportation that is should be doing? I routinely explain how agriculture has arguably the most diverse and elongated supply chain of any industry in existence. We are heavily vested in rural roads, highways and bridges, railroads, inland waterways, and ports. Any set of recommendations produced by the committee must address each of these modes. What is your opinion of the National Export Initiative? The National Export Initiative is a laudable goal. It correctly identifies the role of exports in helping bring the United States out of its current economic malaise. However, if our elected officials do not produce specific decisions that result in tangible investment in our transportation infrastructure, the National Export Initiative will simply be an intention, not an outcome. Put simply, a country that successfully exports is a function of producing what others need and want at an acceptable cost. In agriculture and other industries, we have proven our ability to produce and manufacture desirable goods. An efficient transportation system is essential to being 2012 Issue V
able to deliver those products in a costcompetitive manner. On the soy side of things, how was 2012 for the Soy Transportation Coalition? The Soy Transportation Coalition continues to grow. Farmers increasingly recognize how transportation is very relevant to their ultimate profitability. We continue to see a greater commitment to our efforts as well as opportunities to collaborate with other industries that share our concern with the condition of our infrastructure. Does your group have any big plans for 2013? We have some interesting initiatives underway regarding rural infrastructure, including bridges, as well as freight rail. We are particularly excited about our research regarding the inland waterway system. There is a significant amount of fatigue and
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frustration among farmers and others in agriculture about the status of our lock and dam inventory. We therefore want to join others in injecting some fresh
thinking into this topic. When we discuss the challenges facing the inland waterway system, I do not want it to be groundhog day. I do not want our discussions in the future to be carbon copies of our present discus-
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sions. There has been a persistent lack of progress on this issue of significant importance to agriculture, and the overall economy. We will be working with other stakeholders to hopefully move us beyond the current impasse. Is there anything we haven’t addressed that you’d like to touch on? In trying to convey the importance of transportation, including the inland waterways, to our economic competitiveness, I routinely argue that the United States is currently a spending nation, not an investing nation. If we truly want to reemerge as a dynamic, innovative economy, we need to be willing to invest in ourselves, rather than spend scarce resources to fulfill immediate needs and wants. Transportation is one of the unique investment opportunities that will provide dividends not only today, but in the years to come. IP
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CSL’s Trillium Class Baie St. Paul Sets Sail for the Great Lakes
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he Baie St. Paul, the first of four new Canada Steamship Lines (CSL) Trillium-class, self-unloading Lakers – and the most technologically advanced ship to enter the Great Lakes/ St. Lawrence Seaway bulk shipping market – recently made her maiden voyage from Chengxi shipyard in Jiangyin, China, to Montreal, Quebec. “Every first voyage of a new ship is an exciting event, but with the Baie St. Paul, the occasion is truly historic as CSL prepares to welcome the most modern vessel in the Great Lakes,” remarked Louis Martel, President of Canada Steamship Lines. “We are very proud of this achievement and are grateful to the design and newbuild teams for the hard work and dedication they have devoted to this challenging project and continue to apply to every new Trillium Class vessel.” Commanded by Captain Mike Despotovich and Chief Engineer Dominique Tanguay, the Baie St. Paul used a weather technology service to plan her route across the Pacific Ocean, expected to take 50 to 60 days. The gravity-fed, self-unloading Laker was fitted with temporary reinforcing structures that were to be removed upon arrival in the Port of Montreal. As part of CSL’s ambitious fleet renewal program, the Baie St. Paul will set the course for three additional new Trillium Class self-unloading vessels and two new bulk carriers to be introduced into the company’s Great Lakes fleet in 2012-2013. “The Baie St. Paul and her sister vessels represent the beginning of a new era for CSL and for bulk shipping in the Great Lakes,” said Louis Martel, President of Canada Steamship Lines. “Employing leading edge technological innovation, the Trillium Class ships will set new standards in operational and energy efficiency, reliability, and environmental protection. For customers, this positions the company to continue to meet their evolving needs.” IP
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2012 Issue V
Post-Panamax Vessel Arrives at APM Terminals Mobile
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USPS Honors Inland Waterways Sector
The US Postal Service recently dedicated a series of Forever Stamps entitled “Earthscapes.” One of the stamps features Kirby Corp.’s Apollo and Enterprise Marine Services’s Taurus commercial tow boats positioning themselves against liquid tank barges in the Old River Barge Fleeting area near the Houston Ship Channel. IP
he Alabama State Port Authority recently hosted the largest ship in the seaport’s history when called at its APM Terminals Mobile facility today. The Post-Panamax, 8,400 TEU capacity container ship MSC Texas serves Mediterranean Shipping’s weekly direct call service to Mobile to and from the North European ports of Antwerp, Felixstowe, Bremerhaven and Le Havre. In addition to the European service (SATL), shippers out of Mobile can take advantage of the vessel rotation calling Freeport, which provides multiple global port destinations. The MSC Texas is a 101,898 DWT container ship measuring 1,096 feet in length overall, with a beam of 141 feet. Norton Lilly International served as the vessel’s agent. APM Terminals served as the terminal operator. Jimmy Lyons, director and chief executive for the Port Authority, noted a steady increase in Post-Panamax vessels at the port due in part to infrastructure investments at the Port of Mobile. “We’ve increased our ability to handle and turn these vessels thanks to a 45-foot channel and a turning basin capable of turning ships upwards of 1,200 feet in length. Other contributing factors that attract the larger vessels at APM Terminals Mobile are efficient operations, increasing cargo base and cost effective shipping options in our region,” said Lyons. IP
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Waterways Council, Inc. 801 N. Quincy St., Suite 200 | Arlington, Virginia 22203 703-373-2261 | www.waterwayscouncil.org 2012 Issue V
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Great Lakes Shipyard Performs Emergency Repairs
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he United States Coast Guard Cutter Mobile Bay, of Sturgeon Bay, Wisconsin, recently departed Great Lakes Shipyard, Cleveland, Ohio after completion of drydocking and repairs to the bow thruster on it 120-foot Aids to Navigation Barge. The barge was hauled out using the Shipyard’s 770-ton Marine Travelift. The shipyard immediately removed the bow thruster and disassembled it in the shop for repairs. Upon completion, the unit was reinstalled and tested, and the tug and barge departed just three days later. The USCGC Mobile Bay is one of the nine cutters in the Coast Guard’s fleet of “Bay Class” icebreaking tugs. In addition to ice breaking and buoy tending, its other services include Maritime Law Enforcement, Search and Rescue, Environmental Pollution Response, and Homeland Security. IP
US Fab to Build State-of-the-Art Split Hull Dump Barge
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S Fab, a Vigor Industrial company, won the contract to build American Construction’s newest vessel, a 242’ x 54’, 4,050 cubic yard, split hull dump barge. The barge was designed by Glosten Associates of Seattle, WA and features an advanced sealing mechanism to safeguard environmentally sensitive areas from potential leakage. “There are a limited number of split hull dump barges on the West Coast and American Construction is a leader in both cutting edge equipment and quality services,” said Bryan Nichols, Sales Representative, Vigor Industrial. “We are very proud to add them as a customer and are looking forward to a long-term relationship.” Construction of the barge will take place in Vigor’s Swan Island shipyard in Portland, Oregon. The yard is outfitted with an expansive 800-foot buildway, 600-ton gantry crane and 150,000 feet of covered fabrication bays, ideally suited for new builds. Construction is on a tight schedule, with delivery set for June 30, 2013. “US Fab has a solid reputation for on time, on budget deliveries,” said Steven Brannon, President, American Construction. “We’re confident they will hit our deadlines and deliver a quality vessel to augment our fleet and ensure the safety of our operators.” American Construction is a premier west coast dredging and marine construction company headquartered in Tacoma, Washington. The firm’s history in the Puget Sound dates back to 1903. IP 18
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2012 Issue V
LaGrange Address Highlights Record TEUs, $100M Investment T
to 640,000 twenty-foot-equivalent units per year. A week later, Port officials joined Lt. Gov. Jay Dardenne to dedicate the Port’s new $20.1 million Julia Street Cruise Terminal, which more than doubled the Port’s cruise capacity. In July, Gov. Jindal again joined Port officials to dedicate the $40.3 million Riverfront Cold Storage Facility at the Henry Clay Ave. Wharf. The 140,000 square-foot facility is now the largest blast-freeze operation in the Northern Hemisphere. “That project is one of the most rewarding in my 36 years as a port director,” LaGrange said. “This state-of-the-art facility will generate $126 million in The Port of New Orleans’ Napoleon Container Terminal. annual spending and add 125 direct jobs.” In addition to investments in new projects, as of the end of the 2012 fiscal year, the Board had completed $94 million worth of repairs to facilities damaged by the storms of 2005. “And I cannot leave out our customers and tenants, whose investments in equipment and facilities portwide is sure to top the $100 million mark,” LaGrange said. A few of those projects include Folgers’ $70 million investment to consolidate its operations from two other states in New Orleans; development and business investments,” LaGrange construction of 300,000 square feet of warehousing space for London Metal Exchange cargo and told the more than 200 stakeholders gathered at Transportation Consultants Inc. expansion at the the Marriott Convention Center. “The Port of New Gov. Nicholls Street Wharf to provide value-added Orleans is a major contributor to providing those services for chemical exporters. conditions and our business leaders understand All of these investments, both public and our future is tied to international trade.” private, increase opportunities for shippers within To plan that future, LaGrange applauded state the Port and add to tonnage figures. LaGrange Sen. Conrad Appel for his efforts establishing the touted those cargo gains, as well. Louisiana Office of International Commerce, a In 2011, the Port handled a record 476,413 23-member board housed within the Louisiana TEUs. Through the first six months of 2012, the Economic Development Office, created during the 2012 Regular Session of the Louisiana Legislature. Port handled 241,707 TEUs – outpacing last year’s figures for the same time period. So far in 2012, The Board’s goal is to formulate a single vision for total general cargo is up 8.5 percent; buoyed by a Louisiana’s trade community. 23 percent increase in break-bulk cargo. Double “This effort is the culmination of years of digit gains were realized in imported steel and work, which will bring Louisiana ports, economic aluminum and natural rubber imports are up more development officials and trade-based businesses than 8 percent. together to provide a focus for the entire “Chemical products for export also saw a 6 international trade community,” LaGrange said. percent gain so far in 2012, coming off a record Those efforts will build upon recent year in 2011,” LaGrange said. “Those figures investments made by the Board of Commissioners combined with a more than 3 percent increase in of the Port. In May, Gov. Bobby Jindal cut the ship calls and your port is healthy and robust.” ribbon on a $36.4 million investment in the New container services were also added in Napoleon Avenue Container Terminal, which added 2012, as CMA CGM and CSAV shipping lines two new gantry cranes and 4.5 acres of container added the Port to its Gulf Bridge Express to the marshalling yard – bringing the terminal’s capacity he Port of New Orleans set records for container traffic and cruise passengers in 2012 – all while completing more than $100 million in new infrastructure projects port-wide. Port President and CEO Gary LaGrange touted those achievements during the recent 26th Annual State of the Port Address, hosted by the International Freight Forwarders and Customs Brokers Association of New Orleans. “During the last few years we have seen a major economic resurgence, as our City provides the right conditions to encourage economic
2012 Issue V
www.inlandportmagazine.com
Caribbean and Central and South American ports. ZIM Line returned service to New Orleans and recently Hamburg Sud announced a new service from New Orleans. “Combined with previously existing carriers Hapag-Lloyd, Mediterranean Shipping Company, Seaboard Marine, Maesrk and Libra – the shipping opportunities from our container terminal are the best around,” LaGrange said. Port officials are not resting on recent successes. Work will begin in 2013 on the Napoleon Avenue Intermodal Terminal to improve rail service and efficiency and capitalize on the six Class One railroads that service the Port. The project will be mostly funded by a $16.7 million TIGER grant the U.S. Department of Transportation awarded the Port. It will transform a 12-acre site into a modern, freight rail terminal and create additional container storage area. “I want to thank Louisiana’s entire Congressional delegation for supporting this vital project, as well as Mayor Mitch Landrieu,” LaGrange said. “All of their support was critical to being awarded the highly competitive grant.” LaGrange highlighted a record year for the cruise industry, as well. In 2012, the Port welcomed two year-round Carnival Cruise Line ships – the Carnival Conquest sailing year-round seven-day itineraries and the Carnival Elation sailing four- and five-day itineraries. In addition, the Port welcomed Royal Caribbean’s 3,114-passenger Voyager of the Seas, the largest cruise ship to ever call on the Port, and Norwegian Cruise Line’s 2,018-passenger Norwegian Spirit. Both are replaced this year with newer and larger vessels, Royal Caribbean’s Navigator of the Seas and the Norwegian Star. “2011 was a record year for the cruise industry in New Orleans and in 2012 we plan to break the 1-million-passenger mark,” LaGrange said. “New Orleans is a favorite home-port for the cruise industry and one of the fastest-growing cruise ports in the nation.” According to Cruise Lines International Association, cruise line spending in Louisiana topped $280 million in 2011 – up 35 percent compared to the year before. To build upon cruise gains, the Port plans to begin construction on a third cruise ship terminal at its Poland Avenue Wharf, just downriver from the historic French Quarter, in 2013. “All of these efforts are with eyes focused on building toward future success,” LaGrange said. “We will continue to develop our container capacity; continue to build on our strengths as a break-bulk and heavy-lift hub for this nation; continue to see value-added services and warehousing investments along our Inner Harbor; and continue to attract visitors from throughout the nation who enjoy cruising from New Orleans.” IP 19
Industry Notebook Let us spread your message! Email your port, company, or group news to us at djones@inlandportmagazine.com PortVision is experiencing growing U.S. demand for its TerminalSmart platform, which integrates dock management, scheduling, reporting and analytics with the PortVision Automatic Identification System (AIS)-based vessel tracking services. The company told attendees at its TerminalSmart User Summit here that it is now deploying the platform at more than 15 additional marine terminals operated by four large customers. “We are pleased to announce that four new customers – each of whom is among the industry’s top oil companies – have licensed our TerminalSmart platform and dock management system during the past quarter and are now deploying it at more than 15 new marine terminal locations across the U.S. in the coming year,” said Dean Rosenberg, PortVision chief executive officer. “These new orders represent more than $2.5 million in contract value for our rapidly growing enterprise software business. They also reinforce the increasing importance that the world’s largest oil companies place on optimizing marine operations in the petrochemical supply chain using this new category of enterprise-class terminal management software.” The PortVision AIS-based vessel-tracking service is widely adopted by petrochemical refineries, third-party midstream facilities and other marine terminal organizations as a powerful tool for enhancing visibility and improving business management, analytics, reporting, and operational safety and efficiency. In 2009, the company expanded its focus to include a broader offering of enterprise-class tools for marine professionals in oil and gas industry logistics, supply chain management and fleet operations. The company’s TerminalSmart platform and Dock Management System are designed to help marine terminal operators to more effectively meet a broad range of specific challenges including chartering, scheduling, vetting, logistics, loss control and demurrage
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management, as well as front-line dock operations and overall dock management. Lifting Gear Hire Corporation (LGH) is expanding in the Southeast Region of the United States. In the last two years, LGH has opened a new warehouse in the Southeast and added two new Rental Representatives. Last August, Rental Representative Jon Trucksis was hired to help service North and South Carolina. In July, LGH opened a new warehouse in Charlotte, North Carolina. Recently, LGH added Rental Representative Billy Duncan to service the state of Georgia. This is the first warehouse for LGH in North Carolina and these are the first representatives for LGH in these states. The addition of representation in these states, allows LGH to better serve our customers. “With multiple locations throughout the United States, LGH can provide quality equipment in a timely manner,” said LGH President Tony Fiscelli. “The reliability of our equipment allows customers to be more productive by having the right tool for the job.” Founded in 1990, Lifting Gear Hire Corporation (LGH) is the United States’ largest single organization devoted exclusively to the provision of lifting and moving equipment for rent and sale. LGH provides hoisting, pulling, jacking, rigging, material handling and safety equipment available for immediate and safe use. For the period March 22 to September 30, 2012, St. Lawrence Seaway year-to-date total cargo shipments were 25.1 million metric tons, virtually flat over the same period in 2011. “Cargo tonnage on the Seaway System remained relatively steady for the month of September,” said Rebecca Spruill, Director, Trade Development for the Saint Lawrence Seaway Development Corporation. “These tonnage numbers reflect historical trading patterns for the month of September, with the noteworthy increase in shipments of windmill components. We anticipate the next couple of months to reflect slight increases in cargo tonnage for general cargo, U.S. and Canadian grain, iron ore, and coal.” U.S. ports took advantage of diversification and expansion plans to bolster September shipments. The Port of Cleveland launched its expanded on-dock rail system in September, providing improved ship-to-rail and rail-to-ship access. The new Cleveland Harbor Belt Railroad handled three generators – weighing a total of 240 tons – that came through the Seaway from Port of Brake in Germany, and were destined for a power plant in southern Ohio. “The movement of this cargo demonstrates our ability to better serve Seaway users and underscores our intent to aggressively market the new rail capabilities we now have at the Port,” said David Gutheil, vice president for maritime and logistics. “We are optimistic about our cargo volumes for the rest of the year and we are looking to add more projects into our pipeline before the current season ends.” The Port of Indiana-Burns Harbor has handled significant increases in the shipments of steel, coke, fertilizer, grain and minerals through the first nine months of 2012. Overall YTD shipments remained fairly steady, down slightly from a year ago but still higher than every other year since 2006. www.inlandportmagazine.com
“Through the first three quarters of 2012, we have seen a nearly 25 percent increase in steel shipments driven by increased demand in the manufacturing sector,” said Rich Cooper, CEO for the Ports of Indiana. “Having direct access to international shipments through the St. Lawrence Seaway and the inland river system is a major competitive advantage for port companies. Three new steel-related businesses have already opened facilities at our port in 2012 and we expect to see additional increases in shipments as those operations come online.” Though U.S. grain exports have been down along the Seaway for several months, early September saw a flurry of activity in the Port of Duluth-Superior, spurred by the arrival of four ocean-going ships within the space of little more than a week. The ships headed to the CHS terminal in Superior where they loaded a total of 71,100 metric tons of spring wheat, durum wheat and canola bound for Italy, Germany/Belgium and Mexico, respectively. Iron ore shipments through the Seaway were down 17 percent in September to one million metric tons versus the same time last year. Year-to-date figures for iron ore were up 22 percent to 7.7 million metric tons. Coal shipments for power generation and steel production totaled 588,000 metric tons in September – an increase of 33 percent from September 2011. Year-to-date coal shipments rose to 3.3 million metric tons – a 31 percent hike over 2011. Cement shipments had a 22 percent increase in September 2012 over last year as construction work continued throughout the Great Lakes states. Year-todate shipments posted a 22 percent hike to 1.2 million metric tons. The Seamen’s Church Institute (SCI) has completed construction of an environment tailored for one-on-one mariner skill appraisal. SCI’s new Houston simulator, manufactured by Transas, provides a dedicated tool for assessments, corrective action implementation and company human resource evaluations. The new simulator suite contains a single full-mission bridge pilothouse, classroom and debriefing area, all designed to work independently from SCI’s existing four-bridge Kongsberg simulator. The smaller footprint of the new simulator allows SCI to offer individualized instruction at a lower cost. SCI estimates to complete physical construction of the simulator in time for its Maritime Training Benefit Luncheon on Wednesday, October 24, 2012, at the Institute’s Center for Maritime Education in Houston, TX, with full operation of the new simulator by early 2013. SCI offers its new simulator for companies wishing to supplement on board training. “This is not a substitute for real-life experience,” says SCI’s Center for Maritime Education Director Captain Stephen Polk. Instead, he explains that maritime transportation companies will employ the unique encounters available in the simulator to round out a mariner’s experience and assist in identifying candidates for hiring and promotion decisions. The Institute’s tool allows a Designated Examiner or Port Captain to evaluate performance in various scenarios. The environment of the simulator replicates many conditions on the water that limit training and evaluation in the real world. Many of the areas in which companies need to assess mariners include high-risk and seasonal conditions. SCI’s newly constructed specialized space for mariner assessment provides the ability to sign-off Towing Officer Assessment Record (TOAR) items, regulations stemming from new Subchapter M towing vessel regulations and the Tanker Management and Self Assessment (TMSA) guidelines. When the simulator goes into operation, maritime transportation companies will choose from a catalog of simulations matching standardized exams and requirements. IP 2012 Issue V