Inland Port Magazine 2014 no 2

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2014 Issue 2

Maintaining Your Port Beneath the Surface Dredging with Environmental Awareness Industry Organization Updates Opportunity Knocks for River Industry

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Inland Port

2014 Issue 2 • Volume VI ISSN 2156-7611

www.inlandportmagazine.com @inlandportmag Published bimonthly by

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Hudson Jones Publications, LLC Houston, Texas • Tulsa, Oklahoma 281-602-5400 EDITOR Daron Jones djones@inlandportmagazine.com DIRECTOR OF ADVERTISING Jo Anne Hudson jhudson@inlandportmagazine.com Entire contents ©2014, all rights reserved.

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Investigating the Structural Capacity of a Dockwall

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Port of Cleveland Adopts USACE Dredge Disposal Proposal

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Dredging Deeper with Environmental Awareness

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Industry Organization News & Notes

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Opportunity Knocks for River Industry

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Cruise Passenger Increase for Port of New Orleans

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Port of Monroe Sets Tonnage Record, Poised for More Growth

Inland Port 2014 • Issue 2

Subsurface Port Maintenance Case Study from Collins Engineers

By Taylor Engineering’s Robert Wagner, PE; Lori Brownell, PE; John Adams, PE; and Florida Inland Navigation’s Mark Crosley

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From IRPT and AWO

Guest Column by Joseph P. Linck, Jr., NAFTA Marine Highway Co.

By Aimee Andres, IRPT Administrative Coordinator

22 Liebherr LHM 420 at Work Down Under 24 St. Lawrence Seaway Opens 56th Season

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Investigating the Structural Capacity of a Dockwall

How much load can be placed on top of a 50-foot-high cellular sheet pile dockwall? What effect, if any, does corrosion play in the overall capacity of the structure? What if there are significant defects present below water? These were a few questions asked by America’s Central Port when considering major capital improvements to their facility.

Enter Collins Engineers, Inc. 4

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ollins Engineers is a recognized leader in underwater inspection throughout the United States and beyond. The firm provides in-house engineer-divers, the necessary equipment to conduct underwater inspections in the field, and the technical expertise to accurately determine structural capacity and remaining useful lifespan.

Structure Background

America’s Central Port’s North Harbor Dockwall is located along the Chain of Rocks Canal near Granite City, Illinois, and was constructed in the 1950s.

It is approximately 960 feet long and constructed of thirty-nine steel sheet pile cells measuring 48 feet in diameter. Lateral loads are routinely imparted on the structure by barges moored alongside the dockwall during loading operations. Significant vertical gravity loads act on top of the cells from cranes, heavy construction vehicles, and even trains. Collins’ evaluation was the structure’s first underwater inspection.

Inspection Elements

The inspection phase of the project consisted of three parts: underwater acoustic imaging, a hands-on diving inspection, and ultrasonic steel thickness measurement. As with any inspection project, safety was a critical aspect throughout the project. Collins and the Port worked together to ensure the barges mooring along the dockwall were not disrupted, and that the barge operators were aware of the presence of divers. Marine radios were used to communicate when and where the divers entered and exited the water as well as their location throughout the inspection. Due to the diligent communication, the investigation was completed safely and efficiently.

Underwater Acoustic Imaging

By Nicholas R. Triandafilou, S.E., P.E.

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High resolution underwater acoustic scanning equipment was used to determine the configuration of the channel bottom and the steel sheet pile cells. The boat-mounted system was used to perform several scans at each cell ensuring complete coverage of the submerged surfaces. The acoustic images were recorded on a computer and reviewed while at the inspection site, and were later compiled into complete images of the dockwall. These images allowed

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the Port to see what the divers saw and felt below water. They also provide documentation of the conditions for reference during future repairs or inspections. Finally, the scans provided a means of accurately measuring any structural defects located below the waterline.

Surface-Supplied Air Diving Inspection

For the underwater investigation, Collins provided a four-person team consisting of a licensed structural engineer-diver, two engineer-divers, and a technician-diver working from a 20-foot boat. Using surfacesupplied air diving equipment, the engineerdivers conducted an underwater visual and tactile examination of the entire surface of the dockwall, from the waterline to the channel bottom. Particular attention was paid to noted areas of excessive deterioration or apparent distress. Photographs were taken to document typical conditions as well as any significant deterioration.

Observations of the channel bottom adjacent to the cells were also made. The team noted the type of channel bottom material, the presence and location of scour holes, and the presence of debris.

Ultrasonic Steel Thickness Measurements

Due to the structure’s age and the location of the dockwall within a heavily industrial area, America’s Central Port was concerned about corrosion of the steel sheet piles, particularly in the vicinity of the splash zone.

Using an underwater ultrasonic thickness gauge (D-meter), Collins’ divers were able to measure the remaining thickness of the steel sheeting at regular intervals along the dockwall.

Inspection Results

Upon completion of the inspection, Collins prepared a report that included the inspection results, acoustic imaging, photographs, steel thickness measurements, and repair recommendations. Overall, the cells were in satisfactory condition below water with no defects of structural significance observed. The steel sheeting was typically

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vertical and extended into the channel bottom, with interlocks fully engaged. Minor impact damage was observed in random locations along with localized areas of tearing

amount of sheet pile thickness loss due to corrosion was not structurally significant since other failure modes governed the live load capacity of the dockwall. As a result, no loading restrictions or changes in curEngineer-diver performing ultrasonic rent operations on top of the dockwall thickness measurements. were recommended.

The failure mode directly affected by the corrosion of the steel sheeting is bursting pressure within a cell. As the cross-sectional area of a sheet pile web diminishes, the cell’s capacity to resist ring tensile stresses also reduces.

The structural analysis indicated that this failure mode does not govern the allowable surcharge load on top of the cells until the amount of sheeting section loss at the critical section (channel bottom) reaches 28 percent throughout the entire cell. At the time of the inspection, the average amount of section loss in the sheeting at the channel bottom was approximately 19 percent, with no cells exhibiting around the mooring hardware. Recommendations includgreater than 24 percent section loss. The analysis also ed repairing the localized tears in the sheeting, limiting the indicated that after the section loss exceeds the 28 percent loading on the mooring hardware, monitoring the corrothreshold, further corrosion causes the live load surcharge sion of the sheeting, and considering the installation of a capacity to rapidly decrease. Because the 28 percent secfendering system to protect the wall from barge impact. tion loss threshold was being approached in several locations, Collins recommended that the sheeting be inspected Post-Inspection Analysis underwater within the next sixty months to determine if How significant was the corrosion of the sheeting? Were there is any active corrosion advancement. immediate repairs required? Should restrictions be placed on the loads on top of the wall?

Conclusion Following the underwater investigation, Collins perThis project formed a structural analysis to determine whether any resulted in the repairs or loading restrictions were warranted. First, the determination original design capacity was found based on nominal of the accurate sheeting thickness. After that, Collins determined the loading capaccurrent capacity based on sheeting thickness losses reity and remain- Typical Acoustic Image of the Dockwall. sulting from corrosion measured during the underwater inspection. Based on the loss of thickness from the time of ing useful life of America’s Central Port’s North Harbor Dockwall. The construction, a useful remaining was calculated.

Port was proactive in making the decision to determine The structural analysis was completed in accordance the condition and capacity of its dockwall. The inspection with the USACE: Design of Sheet Pile Cellular Structures, likely resulted in cost-savings by avoiding unnecessary EM 1110-2-2503. Because the structural capacity of a loading restrictions on top of the wall and identifying lowcellular bulkhead system is dependent upon the interaccost maintenance repairs before they turned into major tion between the steel sheeting and the surrounding soil, ( i.e., expensive) repairs. Says William Stahlman III, P.E., a geotechnical investigation was required to complete the Port Engineer for America’s Central Port, “I talk about the analysis. Collins specified the number and location of the survey and analysis [Collins] completed for us quite often. soil borings which were then taken by another consultant.

It has been a valuable report to us here.” IP The structural analysis indicated that the current 8

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2014 Issue 2

Port of Cleveland Adopts USACE Dredge Disposal Proposal T he Port of Cleveland approved a resolution at its March Board of Directors meeting directing the Port’s management to work with U.S. Army Corps of Engineers to ensure the timely start and completion of dredging necessary for the 2014 shipping season utilizing existing confined facilities for disposal of the material.

In its resolution, the Port Board noted that, to avoid significant detrimental impact to the economic vitality of the region, dredging the Cuyahoga River and Cleveland Harbor must start without delay.

The Board also asked that the decision process of the Army Corps of Engineers with regard to the placement of dredged material in the open waters of Lake Erie be deliberate and transparent and provide for adequate time for careful consideration of all pertinent data and views, including State regulatory agency findings and local plans.

“It’s extremely important to our local economy that dredging begins as soon as possible on the Cuyahoga River and Cleveland Harbor so we can keep shipping channels open. More than 10 million tons of cargo pass through these vital marine highways each year,” said Marc Krantz, Chairman of the Port Board of Directors. “We know there is adequate capacity in the existing confined disposal sites to accommodate the placement of sediment scheduled to be dredged in 2014. We are respectfully urging the Army Corps to avoid completely unnecessary interruptions to commerce by starting Spring dredging as soon as possible.”

The Port of Cleveland is a key to Northeast Ohio’s global competitiveness by providing the quickest route between North American’s Heartland and North-

2014 Issue 2

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ern Europe. An economic engine for Northeast Ohio, the Port brings 13-million tons of cargo through the Cleveland Harbor and with it $1.8 billion in annual economic activity and nearly 18,000 jobs. As a Green Port on a Great Lake, the Port of Cleveland plays a key role in the environmental restoration and revitalization of Lake Erie and the Cuyahoga River.

The Board of Directors also reviewed the Port’s 2013 unaudited financial results, which confirmed the Port had one of its best years on record. Financial performance significantly exceeded its budget projections with a 6.4 percent increase in operating revenues and a 4.9 percent decrease in operating expenses.

The increase in revenues was attributed to improved performance in both the maritime and development finance lines of business. The total tonnage shipped through the Port in 2013 exceeded the budget projection by more than 20% and development finance revenue was 82% above budget targets.

Will Friedman, Port of Cleveland CEO, said the Port saw its best operating performance in a decade, resulting in a $3 million improvement in the Port’s net assets.

“Our positive financial position lays the foundation for our major initiatives during the next few years. With the startup of the Cleveland-Europe Express in April, we expect up to 400,000 additional tons of cargo through our Port, representing roughly 10-15% of Ohio’s European trade, translating directly to an expected increase of $50 million in economic activity and hundreds of new jobs. We will continue to focus on our environmental commitments, too, to make sure the Cuyahoga River and Cleveland Harbor areas attract people and businesses to downtown Cleveland.”

EXPRESS OCEAN FREIGHT SERVICE UNDERWAY With the departure of the vessel “Fortunagracht” out of Antwerp, Belgium over the weekend, the Cleveland-Europe Express service between the Cleveland Harbor and Europe via the Saint Lawrence Seaway has officially launched.

The Cleveland-Europe Express is the only regular, scheduled international container and non-containerized cargo service on the Great Lakes. The Port of Cleveland and Dutch company The Spliethoff Group entered into an agreement in November 2013 to begin the service. It is the fastest and greenest route between Europe and North America’s heartland, allowing regional companies to ship their goods up to four days faster than using water, rail, and truck routes via the U.S. East Coast ports.

Will Friedman, president & CEO of the Port of Cleveland, said the market is responding very favorably and in line with expectations. “This is a significant first step in establishing the first scheduled ocean cargo service in decades between Europe and the Great Lakes via the Saint Lawrence Seaway. We look forward to seeing the service grow. We know there’s a market for it.”

The vessel will arrive in Cleveland carrying European exports, such as wind energy parts, machinery and smaller cargo in containers. The Cleveland-Europe Express will continue to make one round trip a month, leaving with cargo from Europe at the beginning of each month and arriving in Cleveland mid-month to unload that cargo, and then collecting exports to carry back to Europe. As demand rises, the Port will add a second ship, allowing for a vessel in port every two weeks. IP 10

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2014 Issue 2

Dredging Case Studies

Dredging Deeper with Environmental Awareness Permitting Challenges on the Intracoastal Waterway, Dania Cutoff Canal, and the New River THE AUTHORS

Robert J. Wagner, P. E.

Senior Dredging Engineer, Taylor Engineering jwagner@taylorengineering.com

Lori S. Brownell, P.E.

Director, Taylor Engineering lbrownell@taylorengineering.com

John F. Adams, P.E.

Senior Advisor, Taylor Engineering jadams@taylorengineering.com

Mark Crosley

Executive Director, Florida Inland Navigation District, mcrosley@aicw.org

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ncreased environmental awareness and accompanying regulation has made securing dredging permits and dredging projects increasingly difficult and expensive, especially in Florida’s high-growth urbanized southeastern corridor. Since 2005, the Florida Inland Navigation District (FIND) — local sponsor for the federally authorized Intracoastal Waterway (ICWW) and a portion of the Okeechobee Waterway (OWW) — has embarked on a plan to deepen portions of the ICWW, Dania Cutoff Canal (DCC), and the New River in Broward County (Figure 1). Combined, the three dredging areas span roughly 11.6 miles of channel and include removal of approximately 864,000 cubic yards (CY) of limestone, sand, and finegrained sediments.

Major permitting challenges have stemmed from (1) adjusting for significant navigation restrictions due to natural channels and existing infrastructure; (2) avoiding submerged aquatic vegetation impacts, specifically Halophila johnsonii Eiseman (Johnson’s seagrass); and (3) securing a temporary dredged material management area (DMMA) for dewatering and offloading dredged sediments. Although the feasibility investigation and permitting process for these projects began at roughly the same time, only the DCC project has received all permits and completed construction activities in April 2013.

The remaining two projects, ICWW and New River, remain in either the permitting or the feasibility phase.

PROJECT DEFINITION AND STATUS The ensuing section details the project definition, major permitting challenges, and status of each of the three projects. For the ICWW and DCC projects — the two projects that have moved beyond the feasibility phase — a discussion of the collected geotechnical, sediment chemistry, and environmental findings follow.

Intracoastal Waterway. The 2.8-mile project begins at the 17th Causeway Bridge over the ICWW just north of the Port Everglades Northport Garage and Convention Center northward to a point about 4,000 ft north of the Las Olas Boulevard (State Road 842) Bridge. Current project depths within the channel equal approximately -10 ft mean low water (MLW). The proposed deepening project calls

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for a dredging depth of -17 ft MLW or a project depth of -15 ft MLW with 2-ft of allowable overdredge. At its greatest width, the channel will maintain an authorized main channel bottom width of 125 ft and up to nearly 75 ft of authorized wideners over the existing federally maintained ICWW channel (Figure 2).

Geotechnical borings indicate that the predominant sediment characteristics comprise weathered limestone material with a majority of the penetration resistances (N-values) falling below 20. The geotechnical report indicated higher penetration resistances (above 50) within limited portions of the canal and that the dredging contractor should anticipate layers of hard, more competent rock in certain areas of the project. The sediment chemistry analysis (performed on a portion of the collected geotechnical borings) yielded a few contaminants of concern (i.e., dibenzo(a,h)anthracene, Total PCB’s, arsenic, copper, and mercury) above the residential and below the commercial threshold for final placement.

The original 2008 submerged natural resources survey identified 1.83 acres of environmental resources within the project dredge template. Due to FIND’s commitment to minimize (in this case, complete avoidance) environmental resource impacts, the FIND reduced the channel bottom width to less than 75 ft in some areas and reduced the average bottom width of the channel to 110 ft (Figure 3). The dredge template — which provides for a 2:1 side slope, requires a minimum 10-ft buffer from identified seagrasses, and results in the removal of approximately 283,000 cy — reflects a compromise

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Figure 1. Broward County deepening project overview

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between navigational requirements and existing natural resources.

To date, the FIND has received an Environmental Resource Permit (ERP) to deepen the ICWW from the Florida Department of Environmental Protection (FDEP) and the U.S. Army Corps of Engineers (USACE). Due to the abundance of seagrass present outside the dredging template and sediment contaminant concerns outlined above, currently both the FDEP and USACE permits have restrictions on the overall handling the dredged material. Regulatory requirements include use of an environmental clamshell bucket, deposition into a fully-lined barge with containment rails to hold the material and prevent return water from entering surface waters, and the dewatered material offloaded to a commercial-zoned site. Furthermore, the water quality from the DMMA discharge must be tested and analyzed in duplicate of the contaminant parameters identified.

The FIND is also consulting with Broward County Environmental Protection and Growth Management Department over contingency mitigation issues. The FIND anticipates receiving its remaining permit from Broward County by early to mid-2014 and moving forward with construction activities later in the year. Lastly, FIND is also still working on securing the temporary placement site for dewatering the dredged material.

Dania Cutoff Canal. The 0.89-mile DCC dredging area begins at the southwestern end of Port Everglades and extends westward approximately 0.9 mile to the canal’s intersection with US Highway 1. The proposed channel width varies from 140 ft near Port Everglades to 56 ft near the US Highway 1 Bridge. The channel has a dredging depth of -17 ft MLW (project depth of -15 ft MLW and 2 ft of allowable overdredge) until approximately Station 45+00. The channel width then ascends at a 1 vertical to 20 horizontal slope to meet existing grade at approximately Station 47+00 -2.44 m (-8 ft) MLW to avoid erosion and scour issues at the base of the US Highway 1 bridge piers.

Similar to the ICWW project, geotechnical borings for the DCC project indicate that the predominant sediment characteristics comprise weathered limestone material with most penetration resistances (N-values) falling below and highest penetration resistance recorded at 17. Though penetration resistances were recorded significantly lower than the ICWW project borings, the geotechnical consultant cautioned that the project template could contain layers of hard, more competent rock.

The sediment chemistry analysis (performed on a portion of the collected geotechnical borings) yielded a few contaminants of concern (i.e., Fluoranthene, Benzo[a]pyrene, arsenic, and copper) above the residential and below the commercial threshold for final placement.

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Figure 2. ICWW dredging template and natural resources mapping

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The original 2008 submerged natural resources survey did not identify any environmental resources within the project dredge template. Given this, the final dredge template provides for a 2:1 side slope, requires a minimum 10- and 25-ft buffer from identified mangroves and waterfront structures, and results in removal of approximately 121,000 cy.

To date, the FIND has received all regulatory permits for the project and successfully completed project construction activities (Figure 4) between July 2012 and April 2013. Under permit constraints (i.e., environmental clamshell bucket, return water limitations, and commercial placement of dewatered material) similar to those for the ICWW project, the Contractor removed approximately 91,000 CY (of the 121,000 CY identified) of material from the DCC. Temporary material placement and dewatering occurred in a 6-acre DMMA on the Port Everglades property located at the eastern project end (Figure 5). Final disposal of material occurred within local commercialzoned construction projects. Primary construction-related challenges — marine traffic control, in-channel sediment removal, and turbidity — required detailed coordination with all stakeholders and the dredging contractor to resolve an appropriate solution.

New River. The New River dredging area begins at the confluence of New River and the ICWW. The dredging area extends approximately 7.9 mi past Tarpon Bend (the convergence of the New River and Tarpon River) upstream along the South Fork of the New River to the junction of the New River and the DCC near the Florida Power and Light (FP&L) power plant. The proposed project incorporates a 1.3-mi long section of federally authorized channel in the New River. The

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Figure 3. ICWW typical dredging template cross section

Figure 4. DCC Aerial Overview of Project Area (Broward County, October 2012)

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design template for the present authorized federal channel, which connects the project to the ICWW, provides a 100-ft wide (bottom width) channel with a depth of 8 ft at MLLW. The recommended dredge template — -14 ft MLW depth, 100-ft wide channel bottom where possible, and channel wideners as needed for safe navigation — translates into approximately 480,000 cy of required dredging.

Currently this portion (dredging area) of the Broward County Deepening project remains in the feasibility stage, awaiting discussions on permitting feasibility and project funding.

Figure 5. DMMA Aerial Overview (LMAC, July 2012)

SUMMARY Developing an overall project strategy that includes specific resolution of each technical issue and development of public support is key.

While the current permitting climate has made securing dredging permits increasingly difficult and expensive, the FIND has found success through close cooperation between all of the team members. These team members include the FIND administration and the FIND Board of Commissioners, the regulatory agencies, and the engineer.

Permitting and construction-related constraints range from dealing with large quantities of varying material types (limestone, sand, and fine-grained sediments) to significant infrastructure obstacles, including several bridges on the New River and DCC and the Henry E. Kinney Tunnel along US Highway 1.

The FIND developed a record of support from the boating public and the marine industry for the channel-deepening project.

These efforts provided regulatory agency staff with written evidence that positive agency recommendations would receive public support. Although demonstration of public understanding and support does not alter the permitting requirements, it increases the project’s visibility. Increased visibility allows the reviewer to see the project in a larger context that includes but goes beyond regulatory limits.

To date, the FIND, as the managing partner of the Broward County Deepening Project, has provided most of the project funding. Broward County and the City of Dania Beach are each funding partners. In addition, Port Everglades has provided the property for the DMMA for the DCC project.

The FIND estimates that the DCC portion of the project alone will increase marine economic output by adding 24 – 38 new jobs and $3.6 – $9.2 million per year into the local economies. To date, one boatyard has purchased and installed the largest vessel lift in Florida, another had a record repair season, and a commercial shipper deepened its main bulkhead to acquire a new ship. The FIND strongly believes these economic benefits justify the DCC construction cost of roughly $7.1 million. IP 2014 Issue 2

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IRPT Activity Update

By Aimee Andres

RPT is currently involved in many different initiatives this year. We have been very busy promoting our inland river ports, terminals and intermodal centers, educating our policy makers on the importance of sustaining our waterways for navigation and marketing our inland waterway system to encourage viable solutions for freight transportation.

IRPT has introduced the Missouri River Basin Revitalization project, which encourages cooperation with associated marine, economic development and trade organizations. Our first meeting was held on March 11th in Kansas City, MO. Thank you to everyone who participated in the successful discussion and especially thank you to the Port Authority of Kansas City for hosting our joint stakeholder meeting. It is an exciting time for the Missouri River as we move forward with stakeholders and policy makers to explore how to meet the needs of the transportation system.

IRPT held the first meeting of the dredging focus group in Caruthersville, MO on March 19th. Special thank you to Pemiscot County Port Authority for arranging the meeting space and offering a tour of the port. Participating in this working group were IRPT port members from

Mississippi, Tennessee, Missouri, Kentucky and Louisiana. In addition, we had participation by dredging contractors, Army Corps of Engineers and both US and State Departments of Transportation. I am very thankful that all parties are willing to work together to combat the many issues that exist today regarding the dredging of the navigation channel as well as the harbors that serve the channel. We would like to schedule the next meeting for mid-May. IRPT Port Members interested in hosting the next meeting is encouraged to contact IRPT offices to discuss further.

IRPT took both of these topics to Washington the last week of March. We continue to educate our Congressional leaders on the benefits of the waterway system and the importance of sustaining the infrastructure that supports it. Congressional visits included delegates from Iowa, Nebraska, Missouri and Tennessee. We will follow up on those discussions in early May when we head back to Washington, but still encourage their involvement until then.

IRPT has held basin meetings, bringing together members from Pennsylvania, Ohio, Kentucky, West Virgina, Iowa, Nebraska, Indiana, Missouri and Illinois. We look forward to meetings in the Lower Mississippi, Arkansas-Red, Gulf and Southeast River basins. Visit www.irpt.net. IP

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AWO Urges Action on Infrastructure and Vessel Discharges Legislation

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s part of the American Waterways Operators’ (AWO) annual Barge-In, U.S. vessel owners, operators and mariners fanned out all over Capitol Hill, visiting nearly 150 Congressional offices to talk about the industry’s top advocacy priorities and the industry’s important role as economic generators, safety leaders and environmental stewards.

The group’s advocacy priorities this year include: ensuring final passage of needed water resources development legislation; garnering support for a uniform national federal framework for the regulation of ballast water and other vessel discharges; preservation of the Jones Act as the foundation of the vital and vibrant domestic maritime industry; and pressing for balanced, sciencebased solutions that maintain the essential flow of waterborne commerce while thwarting the spread of invasive species.

“This year’s Barge-In is our largest event to date, and I believe this is due to the urgent issues that are facing our industry and our country,” said Tom Allegretti, AWO President & CEO. He noted that AWO members are urging the House and Senate to wrap up WRDA, pointing to the necessity of a modern, well-maintained lock and dam infrastructure upon which safe and efficient waterborne commerce, as well as U.S. competitiveness, heavily depends.

Mr. Allegretti also called attention to the solid bipartisan Senate support of S. 2094, a bill that would provide a uniform national framework regulating ballast water and other vessel discharges. “With over one-quarter of the Senate behind this bill, as well as a diverse coalition of 63 stakeholder organizations, we hope that Senate will act quickly to end a regulatory patchwork that is confusing and costly for vessel owners and mariners, delays investments in environmentally protective ballast water treatment technologies, and forces federal and state agencies to expend time and taxpayer money on duplicative efforts,” he said.

Regarding invasive species, particularly Asian Carp and calls for physical separation of Lake Michigan from the Mississippi River, Mr. Allegretti called attention to the need to work with all stakeholders to find science-based, practical, and cost-effective pathways to protecting the Great Lakes and the Mississippi River system without adversely affecting waterborne commerce.

In addition to discussing specific priorities with their elected officials, Mr. Allegretti said that AWO members continue to raise the profile of the tugboat, towboat and barge industry as well as that of the domestic maritime fleet, which is supported by the Jones Act, a longstanding law requiring that U.S. domestic waterborne commerce be carried on U.S.-flagged vessels built in U.S. shipyards and owned and crewed by American citizens.

2014 Issue 2

Opportunity Knocks

By Joseph P. Linck, Jr. The NAFTA Marine Highway Co. naftamarine@aol.com

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he new USDOT Secretary Anthony Foxx recently ruled that volatile crude oils and natural gas liquids, called NGLs, must be sampled, and transported in higher quality, heavier, safer rail cars. Hearings are on going now in Washington about this subject, and even double hulls are being proposed, a safety standard that both the deep sea and inland waterway industry went to years ago. These pending federal actions have left the oil industry in uncertainty. One thing, however, is clear. The new penalty for rail shippers who ignore the order may be fined as much as $175,000 a day for each violation. Individuals may also be subject to fines and up to 10 years in prison This action could sideline up to 82,000 older rail tank cars that don`t make the grade. North Dakota and Canadian oil fields have no navigable rivers, and as such, are dependant on rail to ship their crude to refiners in coastal Texas, Louisiana, and the East or West Coast. This will impact all wet gas shale and crude oil plays, as North America does not have enough of those specialized rail cars.

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A river tank barge can be built comparatively quickly and carries as much as 30,000 barrels of liquid product, and are far safer than rail. The waiting list for backlogged rail tank car manufactures is said to be three years. A barge also outlasts a rail car, so its cost per barrel is cheaper.

It can be used as a portable storage tank in a pinch, and moved into a new area, with no new environmental permits necessary.

Why spend millions building giant petroleum tanks in a landlocked oil field, when versatile, movable, high capacity tank barges can serve the same purpose?

An immediate solution for North Dakota and Canadian shippers is to rail their crude and NGLs to river ports such as Kansas City, St. Louis, Minneapolis, or Catoosa, Oklahoma.

Then transload these liquids into safe, economical, high capacity river barges. For the West coast, the port of Lewiston, Idaho, the head of navigation for the Colombia river, is a viable alternative. That way they can return their rail cars to North Dakota an Canada quickly, stretch-

Guest Column ing the performance of their existing fleet, that do meet the stronger safety standards.

With Canadian and North Dakota crude shippers paying the railroads $10 to $12 a barrel ($70 to $100 a ton), to the Gulf Coast, there is plenty of money to go around. That is before the cost of rail car leases, demurrage bills, and ever higher cargo insurance is added. With North Dakota’s production alone near 1 million barrels a day now, that’s in excess of $12M a day laying on the freight table.

Presently there are 12 new high-volume rail loading terminals in North Dakota’s Bakken, and more are planned. Yet no new long haul main line rail has been built recently anywhere in the USA. There is a limit to how many barrels can be pumped into this existing rail pipeline. Grain farmers and even Amtrac’s passenger train service has been disrupted due to increased rail traffic, with loud complaints. It is absurd to sideline passenger trains for freight traffic.

Accidents have happened, and are increasing in frequency.

With liquids production projected to increase dramatically in the next few years, it is time to review the main line’s abilities to handle these ever increasing volumes. Water transport offers the ready, and unlimited, take-away solution.

It would also help this rail car shortage if Pittsburgh area shippers would switch from rail to barge, free-

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ing up many rail cars for use in landlocked shale gas and crude oil fields, where they are needed. The rich wet shale gas fields around Pittsburgh are spider-webbed with navigable rivers. Switching to barges would free up thousands of rail cars for use where they are needed, in landlocked shale gas and crude oil plays in North Dakota, Canada, and elsewhere.

With Mexico’s new energy reform, and the near privatization of their energy sector, large increases in natural gas condensates and crude oil is expected from their side of the Texas Eagle Ford, near the Port of Brownsville. These Mexican liquids will be moved to Louisiana via Gulf Intracoastal Canal barges from Brownsville, which is how they are already moving today. Three new tank farms are already under construction on Brownsville’s ship channel.

However, these liquids may not all go to Louisiana. Overseas buyers are starting to take it away via ships in Brownsville’s deepwater. Unlike in the USA, it’s legal to export Mexican natural gas condensate and crude oil to high paying markets in Europe, Asia, etc.

Better prices for crude, and a closely located river and seaport, will probably make Mexico’s Eagle Ford the most profitable wet shale gas play. See my article in IP from two years ago, “The Next Big Shale Play,” at issuu.com/inlandport/docs/ inland_port_2012_no.4. IP

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Cruise Passenger Increase for Port of New Orleans T

he Port of New Orleans’ largest home-port cruise ship to date, the 3,646-passenger Carnival Dream recently began sailing seven-day, year-round eastern and western Caribbean itineraries from the Port of New Orleans’ Erato Street Cruise Terminal, replacing the 3,006-passenger Carnival Sunshine, which will be repositioned to Port Canaveral, Fla. This followed more than $2 million in renovations, expansions and upgrades recently completed at the Erato Street Cruise Terminal.

The 130,000-ton Carnival Dream is from the cruise line’s newest and largest class of ships and offers an array of onboard facilities and features and represents a 22 percent increase in passenger capacity for Carnival’s seven-day cruise program from New Orleans. The 2,052-passenger Carnival Elation will continue to sail year-round fourand five-day itineraries to Progreso and Cozumel, Mexico. Carnival is the only cruise line to operate two, year-round cruise ships from the Port of New Orleans and will carry more than 400,000 guests annually from the Crescent City.

“The Port’s investment to expand and upgrade amenities in the Erato Street Cruise Terminal underscores Carnival’s confidence in the strength of the New Orleans cruise market,” said Gary LaGrange, Port President and CEO. “These upgrades will make an already first-class cruising experience even better.”

Overall, for the third consecutive year, record numbers of cruise passengers set sail from the Port of New Orleans. Port cruise terminals

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handled 987,860 embarkations and disembarkations in 2013, up more than 1 percent compared to 2012, which saw a 32 percent gain over 2011.

“The positive trend for cruising from New Orleans continues,” said LaGrange. “And with newer and larger ships sailing from New Orleans in 2014, the industry’s economic impact and the passengers’ cruise experience will be bigger and better.”

Along with setting a new passenger record, the New Orleans cruising experience was also recognized by a top cruise trade publication – Porthole Cruise Magazine – which named New Orleans “Friendliest Homeport” in its 2014 Editor-In-Chief Awards.

“Cruisers departing from New Orleans are greeted not only with an amazing culture, exciting music scene, and phenomenal cuisine, but also by welcoming and friendly locals,” said Bill Panoff, Publisher and Editor-in-Chief of Porthole Cruise Magazine. “I always encourage cruisers who are spending time in New Orleans before or after their cruise to let the locals lead the way.”

Last year, the Port of New Orleans commissioned a study to determine passenger and crew spending in the New Orleans region. Business Research and Economic Advisors found more than 80 percent of cruise passengers are from out of state and 60 percent of them spend an average of two nights in New Orleans either before or after their cruise. In addition, those passengers and shipboard crew spent $78.4 million in New Orleans, with lodging ($27.5 million) and food and beverage ($8.3 million) encompassing about half of the overall spending. CLIA ranks New Orleans the sixth largest cruise port in the United States – up from ninth in 2011. IP

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2014 Issue 2

Port of Monroe Sets Tonnage Record, Poised for More Growth

T

he 2013 shipping season was a recordsetter for the Port of Monroe. Nearly 2.2 million metric tons of cargo were handled by the port, marking the beginning of a period of revival. Over the course of the last 18 months, the Port of Monroe has seen exponential growth under the direction of new port director, Paul C. LaMarre, who has worked tirelessly to re-establish Monroe’s identity as a highly active seaport within the Great LakesSt. Lawrence Seaway System.

“In 2013, we had 97 vessel calls: 81 to DTE Energy’s Monroe Power Plant carrying bulk, three carrying project cargo (two of which were Seaway tonnage), and 13 liquid asphalt cargoes to Michigan Paving & Materials,” said LaMarre. “Additionally, we have established ourselves as a leading industry advocate in

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multiple legislative forums and are placing the sustainability of our industry as a whole before all other interests.”

The Port sees the 2014 shipping season continuing the momentum set last year. “We anticipate significant tonnage increases as we develop multiple new outbound cargoes with DTE Energy – the most significant of which will be synthetic gypsum produced by the Monroe Power Plant’s new scrubbing units,” continued LaMarre.

The ability to receive materials and equipment by vessel is critical for the continued operation of tenant Monroe Power Plant. The plant requires approximately 8.5 million tons of coal per year, and one-third of that volume is delivered by ship. “Over the last 10 years, we have relied on vessels to deliver most of

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the modular components to be used in the construction of emissions control systems that are making the Monroe Power Plant one of the cleanest operating coal plants in the country,” explained Andrew S. Dobrzanski, manager of fuel supply for the Plant. “These components are too large to transport by rail or truck, so being able to receive them by ship has been key to our ability to minimize cost and schedule impacts on these major installations.”

Onsite developments at the Port include a 23-acre general cargo facility which will have 3,000 feet of waterfront and double-track rail on dock. This will be known as the Port’s “Riverfront Dock.” The port will also be installing a rail spur into tenant Ventower Industries, which is now operating at full capacity. These two rail projects represent roughly $2 million

2014 Issue 2

in port/rail improvements to be constructed in 2014. The Port is working closely with Canadian National and Norfolk Southern railroads to develop new cargo opportunities.

Dredging of harbors around the Great Lakes has been a hot button issue for the maritime industry. Funding is provided by the Harbor Maintenance Tax which is a user fee collected by the federal government to ensure the adequate maintenance and operations of waterway infrastructure by the U.S. Army Corps of Engineers. LaMarre sits on the National Freight Advisory Committee which was established to advise the Secretary of Transportation on ways to improve national freight transportation policies and programs. LaMarre

2014 Issue 2

advocates for the Great Lakes shipping industry on issues such as dredging.

On Tuesday, March 4, the U.S. Army Corps of Engineers released their FY14 budget. It included an additional $25 million for Great Lakes harbors. The Port of Monroe is slotted to receive an additional $510,000 toward maintenance dredging of their waterway. LaMarre was pleased with that news: “This allocation is proof positive that our industry lobbying efforts have been successful. In addition, we will also be conducting comprehensive maintenance dredging along our turning basin dock for the first time in over 20 years.”

“Having our waterway dredged to its proper depth will ensure we meet our tonnage

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goals for 2014, as well as ensuring we help keep the economy moving in Michigan.”

The Great Lakes-St. Lawrence Seaway maritime industry supports 227,000 jobs in the U.S. and Canada, and annually generates $14.1 billion in salary and wages, $33.5 billion in business revenue, and $4.6 billion in federal, state/provincial and local taxes. North American farmers, steel producers, construction firms, food manufacturers, and power generators depend on the 164 million metric tons of essential raw materials and finished products that are moved annually on the system. This vital trade corridor saves companies $3.6 billion per year in transportation costs compared to the next least-costly land-based alternative. IP

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Liebherr Delivering Around the Globe

Australian-based Northern Stevedoring Services (NSS) ordered a Liebherr LHM 420 mobile harbor crane to operate in the Port of Townsville, Queensland. This is the third LHM crane for NSS, which has been operating an LHM 550 and an LHM 1300.

The Latin America region continues to invest in advanced port equipment. In total, Liebherr Maritime Cranes has recently received orders for seven additional mobile harbou\r cranes (LHM), type LHM 550, LHM 600 and LBS 600. This follows a remarkable success achieved in 2013 in the same region, receiving 12 orders in only 12 months for the strongest mobile harbour crane model available, the LHM 600. Capable of servicing vessels up to 19 container rows wide, the LHM 600 provides a maximum outreach of 58m and a maximum lifting capacity of 208 tonnes.

Based in Chile, Compania Portuaria Mejillones S. A. opted for their second Liebherr mobile harbor crane. The LHM 600 is based on a special design. An elongated tower extension ensures that the position of the tower cabin is higher than 37 metres. Besides better sight into the ship for the crane driver, one striking benefit is a higher fulcrum point which eases the handling of bigger vessels. All advantages come without any influence on safety or operational parameters like lifting capacity and travelling speed.

Another LHM 600 will soon add capacity in port of Arica, Chile.

Terminal Puerto Arica S.A. preferred this model due to its worldwide proven high capability.

In Brazil, Chibatão Navegação e Comércio LTDA decided to enforce their port with LBS 600s.

In Peru, Callao S.A. will receive two LHM 550s this year, which will significantly increase container and bulk handling throughout the port.

The port has already two LHM 550s in operation since 2012. Each of these LHM 550s is equipped with Liebherr’s hybrid power booster Pactronic. IP

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2014 Issue 2

BARGES: The Greener Way to Go Inland barges produce less carbon dioxide while moving America’s important cargoes.

Inland barge transportation has the lowest carbon footprint of the other major modes. Moving identical amounts of cargo by rail generates 30% more carbon dioxide than by barge, and 1,000% more emissions by trucks than by barge. Learn more at www.nationalwaterwaysfoundation.org.

Waterways Council, Inc.

801 N. Quincy St., Suite 200 | Arlington, Virginia 22203 703-224-8007 | www.waterwayscouncil.org 2014 Issue 2

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St. Lawrence Seaway Opens 56th Season T

he St. Lawrence Seaway Management Corporation (SLSMC) marked the opening of the Seaway’s 56th navigation season with the transit of Algoma Central Corporation’s newly built ship, the Algoma Equinox, through Lock 3 of the Welland Canal. The vessel is the first of eight Equinox-class ships that are being purpose-built for trade in the St. Lawrence Seaway.

“Algoma Central Corporation’s fleet renewal is a leading example of the unprecedented level of investment that is happening throughout our navigation system,” said Terence Bowles, President and CEO of the SLSMC. “The Seaway alone is spending almost $500 million on modernizing its infrastructure — the biggest transformation in five decades.”

“The Algoma Equinox carries more cargo, sails faster, consumes significantly less fuel and is the first Great Lakes vessel to be equipped with a scrubbing system that virtually eliminates sulphur oxide from its emissions. These advancements will benefit communities throughout the region and also ensure that our customers —North American industries and farmers — remain competitive on the global stage,” said Algoma Central Corporation’s President and CEO Greg Wight.

In concert with various domestic and ocean carriers investing $1 billion in new vessels, the SLSMC is investing $395 million between 2014 and 2018 to revitalize its locks and structures. Likewise, the U.S. Saint Lawrence Seaway Development Corporation is mounting a $92 million effort over a comparable timeframe.

Saint Lawrence Seaway Development Corporation Administrator 24

Betty Sutton said, “The significant investments in Seaway infrastructure are positioning the Great Lakes St. Lawrence Seaway System for future growth. Our asset renewal program will do more than just rebuild the lock infrastructure; the introduction of new technologies will make the waterway even safer, more efficient, and more reliable. These investments signal a long term public commitment to shipping on the Great Lakes / Seaway System.”

In addition to its asset renewal program, the SLSMC is also moving ahead with the installation of Hands Free Mooring at all of its high lift locks. This investment over the next five years will enable vessels to be secured in a lock by means of vacuum pads, instead of by the traditional wire or rope mooring lines. Hands Free Mooring is a core element of the SLSMC’s modernization program, which promises to lower operating costs, increase safety, and provide greater ease of access into the Seaway for Seaway-sized vessels within the world’s merchant fleet.

In terms of the outlook for cargo volume on the St. Lawrence Seaway in 2014, the SLSMC’s Bowles noted that he continues to be upbeat.

“Tonnage within the St. Lawrence Seaway is forecast to exceed a total of 38 million tonnes this year. The U.S. and European economies are improving, and this trend gives us reason to be optimistic,” said Bowles.

“We also expect to play a significant role in exporting Canada’s bumper grain crop to overseas markets.”

Over 227,000 jobs and $35 billion in economic activity are supported by the movement of goods within the Great Lakes / Seaway System. IP

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2014 Issue 2