Portside Magazine - Fall/Winter 2011 by Ports of Indiana

A Ports of Indiana Publication 路 Fall/Winter 2011

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The Port of Indiana-Burns Harbor handled several large pieces of project cargo for a BP project in Whiting, Ind., including this structure that was transloaded from ship to barge at the port.

Table of Contents From the CEO ...................................................................................................4 Building for the next 50 years

150 W. Market St., Ste. 100, Indianapolis, IN 46204 317-232-9200 / fx 317-232-0137 / info@portsofindiana.com www.portsofindiana.com www.indianalogistics.com Ports of Indiana Contact Information

Rich Cooper, Chief Executive Officer (317) 232-9200; rcooper@portsofindiana.com Scott Stewart, Port Director - Jeffersonville (812) 283-9662; sstewart@portsofindiana.com Phil Wilzbacher, Port Director - Mount Vernon (812) 833-2166; pwilzbacher@portsofindiana.com Peter Laman, Port Director - Burns Harbor (219) 787-5101; plaman@portsofindiana.com Jody Peacock, Director of Corporate Affairs (317) 233-6225; jpeacock@portsofindiana.com David Haniford, General Counsel (317) 232-9204; dhaniford@portsofindiana.com Laurie Peckham, Controller (317) 233-6227; lpeckham@portsofindiana.com Liz Folkerts, Communications Specialist (317) 232-9205; lfolkerts@portsofindiana.com John Hughes, Engineering Director (219) 787-8045; jhughes@portsofindiana.com Warren Fasone, Security Manager (219) 787-5056; wfasone@portsofindiana.com

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News and notes .....................................................................................................5 In Memoriam: Sally Ludington Signs of the times: New road signs show the way to Indiana’s ports Port employees celebrate anniversaries Cover STORY ...................................................................................................6 Ports of Indiana celebrates 50 years Enviro-Focus ...........................................................................................................9 Kenco Logistics named top “green” supply chain company Port Reports Burns Harbor: ArcelorMittal ships steel to Macedonia ............................................... 11 Mount Vernon: Mount Vernon Barge christens three vessels ..................................... 12 Jeffersonville: Stewart takes helm at Jeffersonville port ............................................. 13 From the board room ......................................................................................... 14 Commission approves $1.7 million in port improvements Foreign trade zones.. .............................................................................................14 Ports of Indiana expands FTZ area: 85 Indiana countries now part of new program Ports of Indiana Directory . .................................................................................15 Advertiser index Consolidated Grain and Barge.....Back Cover Kinder Morgan..................Inside Front Cover Mount Vernon Transfer Terminal..................9 McKeil Marine...........................................10

For information on advertising in Portside, contact Liz Folkerts at (317) 232-9205 lfolkerts@portsofindiana.com

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FROM THE CEO

Rich Cooper

Chief Executive Officer, Ports of Indiana Port of Indiana-Mount Vernon

Port of Indiana-Burns Harbor

Port of Indiana-Jeffersonville

Building for the next 50 years Fifty years ago Indiana didn’t have ports. The formation of a port authority in 1961 set the stage for one of the most unique port systems in North America. Today, Indiana has three ports that generate 43,000 jobs and $5.4 billion in annual economic impact. But it will take careful planning and a strategic focus to continue this success for another 50 years. To put things into a historical perspective, men were being launched into space just weeks after Indiana created our port authority, and in the summer of 1969, more ‘ships’ had visited the moon than Indiana’s first port. But building a port system during modern times certainly has its advantages. The infrastructure of our ports was built for today’s technology and with a clear vision for the future. Critical success factors for developing our ports were carefully considered, such as: selecting locations near key markets but outside major congestion; having two direct waterway connections to the Gulf of Mexico and the Atlantic Ocean; establishing direct access to road, rail, river and lake transport; and, developing modern facilities with room to grow a diverse mix of businesses. Because of these features, Indiana now ranks 14th among all states in waterborne shipping, despite being over 600 miles from an ocean. The mission of the Ports of Indiana is to develop and maintain a world-class port system that operates as an agile, strategically-driven, self-funded enterprise dedicated to growing Indiana’s economy. Our primary strategic objectives differ slightly from traditional economic development organizations. When our ports first opened, land was abundant and the possibilities seemed endless. Today, we have large tracts of land available at all three ports, but there is only so much room to grow. Each port has significantly expanded its original footprint in recent years, but future expansions will be difficult. We have limited maritime resources in Indiana and we must carefully qualify each project to clearly understand our customers’ needs and how those needs will influence their dependency on the ports’ multi-modal transportation assets. We’ve come to understand that our ports are most appealing to companies that need multiple transportation options for their inbound raw materials and outbound finished products. In most cases, the port becomes increasingly attractive because of business synergies within the port community or within the regions where the ports are located. In every case, it’s hard to beat our three port locations because they are in the most business-friendly environment in the United States – right here in Indiana. Our experience tells us that attracting major industrial tenants provides a great opportunity to create numerous spinoff businesses. There are a very limited number of large industrial sites available at ports around the nation, and having mega sites with multi-modal connections significantly increases Indiana’s chances to land some of the largest manufacturing projects in the country. But once the land is gone, so is the opportunity. Other key strategies we use in growing the ports are developing key alliances with customers and neighboring facilities, pursuing a diverse mix of cargoes, and exploring emerging industries, such as alternative fuels and wind energy. Recent developments in ethanol and wind generation have had huge impacts on our ports and the local economies, and while you’re reading this article, we are looking for that next emerging opportunity. Indiana’s ports have been and will continue to be a vital part of Indiana’s economy. They have abundant capacity for growth, but we must approach future development with a keen eye on matching our limited land resources with the best opportunities that need our premier transportation assets to grow their business and Indiana’s economy. With this kind of focus, we can ensure Indiana has the premier inland port system in North America for the next 50 years.

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NEWS & NOTES

In Memoriam The

Indiana Department of Transportation installed new road signs directing traffic to the Ohio River ports, including this one for the Port of Indiana-Jeffersonville.

Signs of the times

New road signs show the way to Indiana’s ports

More than 20 new road signs were recently installed in Jeffersonville and Mount Vernon pointing the way to Indiana’s two Ohio River ports. The Indiana Department of Transportation (INDOT) installed “Port of Indiana” signs this spring at strategic locations on nearby interstates and highways to direct traffic to the ports. Most of the new signs replaced versions that listed the facilities’ previous names, “Clark Maritime Ctr” and “Southwind Maritime Ctr.” The names were changed several years ago to provide more visibility for the ports’ services and customers, and to eliminate confusion often created by people thinking the term “maritime center” was referring to some sort of marina or museum or a boat service center. While nearly eight million tons of cargo was shipped across the docks at Indiana’s three ports in 2011, another 10 million tons was transported to and from the ports on 500,000 trucks. “Trucks are vital components of port operations and having easy access roads with good signage are very important to our port customers,” said Rich Cooper, CEO for the Ports of Indiana. “We are extremely grateful to Gov. Mitch Daniels and INDOT Commissioner Mike Cline for their support and dedication to providing Indiana with a superior transportation system that promotes safety, mobility and economic growth.” “Port of Indiana” signs have been in place around the state’s Lake Michigan port for many years. All three of the state’s ports are referred to as “Port of Indiana,” with their full official titles also including the corresponding city – “Port of Indiana-Jeffersonville,” “Port of Indiana-Mount Vernon” and “Port of Indiana-Burns Harbor.” As soon as the new signs went up, Jeffersonville Twitter users took notice with several tweets discussing when the Clark Maritime Center became the Port of Indiana. There were 16 signs changed along I-65 and I-265 leading into Port Road and the Port of Indiana-Jeffersonville. Near Mount Vernon, there were four signs changed along Highway 62 as well as new signs installed at each end of the William Keck Bypass and along I-64 near the Highway 69 exit. In addition to the truck traffic, thousands of workers and outside customers drive through the ports every day. There are more than 8,000 direct jobs created by the three ports, and a total of 43,000 direct and indirect jobs related to port operations. The total economic impact of Indiana’s three ports is $5.4 billion per year.

Ports of Indiana lost a dear member of its family in October. Retired employee Sally Ludington passed away on October 16. Ludington was one of the first employees at the Port of Indiana-Burns Harbor when she started on March 3, 1975. She retired in 2008 after 33 years of service. After retirement, Ludington moved to Romeoville, Sally Ludington Ill., to spend more time with family. “Sally was one of those very special people who made you feel good every time you walked through the front door at the port,” said Rich Cooper, CEO of the Ports of Indiana. “Those of us who were part of Sally’s port family are deeply saddened at the news. Her family and friends are in our thoughts and prayers at this very difficult time.”

Port employees celebrate anniversaries Four Ports of Indiana employees marked

significant milestones with the organization in 2011. Director of Engineering John Hughes, the John Hughes longest-serving staff member at the Ports of Indiana, Burns Harbor 35 years celebrated 35 years. Hughes joined the ports in 1976 as an engineer and took the position of director of engineering in 1982. Hughes is based out of the Port of Indiana-Burns Harbor. He and his wife Diane have been married for nearly 40 years and have two grown sons. Also based out of Burns Harbor, Warren Fasone, manager of security, marked 15 years with the ports. A Warren Fasone Harbor retired Chicago police officer, Fasone oversees security, Burns 15 years safety, environmental and Department of Homeland Security issues for all three ports. Fasone has been married to his wife Debora for 27 years and they have four children, all currently in college. Ports of Indiana CEO Rich Cooper is celebrating his 10th year with the organization. Cooper first joined the ports as the chief operating officer in 2001 and was named CEO in 2005. Cooper is an instrument- Rich Cooper rated pilot who enjoys spending his spare time in an Indianapolis 10 years airplane, on a motorcycle or attending sporting events. Wendy Moore, accounts payable coordinator, celebrated five years with the ports. Moore is based out of the Indianapolis office. She has two teenage daughters and is an avid NASCAR and Indianapolis Colts fan. A primary goal of the Ports of Indiana strategic plan is to attract and retain high caliber leadership and Wendy Moore professional staff in an empowered work environment Indianapolis 5 years that promotes longevity and continuity throughout the organization. www.portsofindiana.com · Fall/Winter 2011 5

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Ports of Indiana celebrates 50 years

he year 2011 marks a significant milestone in Indiana history as the Ports of Indiana celebrates its 50th anniversary. But Indiana’s maritime history stretches back even farther than its statehood. From a brief stop by Lewis and Clark on their way to explore the Louisiana Purchase in 1803, to the extension of the state line into Lake Michigan in 1816, and the 1850s development of the Wabash and Erie Canal, waterways have helped shape the state of Indiana in many ways. With 400 miles of navigable waterways along its borders, Indiana was well positioned to capitalize on the development of major shipping routes through Lake Michigan and the Ohio River. Even in the early 1900s, there was significant interest in developing a public port in Indiana, but when the St. Lawrence Seaway opened the Great Lakes to international ships in 1959, Indiana was still the only state on Lake Michigan without a public port.

The front page 1960 of the Oct. 14, 1960 edition of the Vidette-

Messenger newspaper announced the Army Engineers approval of a deepwater port at Burns Ditch. (Photo credit: The Vidette-Messenger/Northwest Indiana Times.)

Ports of Indiana Timeline 1787 The Northwest Ordinance calls for the eventual organization of the

Northwest Territories

into separate states and allows for free travel on the navigable waterways.

1926 To develop suitable land for housing and industry, Randall W. Burns heads the effort to build a drainage ditch that

Lake Michigan. Upon completion, Burns Ditch in Porter County drains a total of 400 square miles of enters

marshland from the area.

1816 Before Indiana becomes a state, Congress moves the northern boundary

10 miles north into Lake Michigan, opening the option for a future port.

1939 The Indiana Board of Public Harbors and Terminals is established

1961 (March 2) Gov. Matthew Welsh and the Indiana General Assembly approve legislation establishing

1957 The Indiana General Assembly appropriates $2 million for land acquisition at the Burns Ditch area in Porter County.

to negotiate with the

1959 Linking the Great Lakes to global markets, the newly completed St. Lawrence Seaway begins

government regarding

operation with more

land acquisition and

than

construction of a public

the

port.

15 major ports on Great Lakes.

the Indiana

Port Commission (now Ports of Indiana), which replaces the Indiana Board of Public Harbors and Terminals. known as the

(April 10) Commissioners are sworn in at the first meeting of the Indiana Port Commission held at the Spa Restaurant in Porter County. (May 18) The Burns Ditch area in Porter County is formally selected as the site for Indiana’s first public port. 1962 Bethlehem Steel opens a plant on Lake Michigan, next to what would become the Port of Indiana-Burns Harbor.

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State leaders determined an organization with greater authority than the existing Indiana Board of Public Harbors and Terminals was needed to develop the state’s first port. So, in 1961, the Indiana General Assembly and Gov. Matthew E. Welsh passed legislation that created a state port authority known today as the “Ports of Indiana.” Originally made up of five governor-appointed members and known as the “Indiana Port Commission,” the bipartisan commission set out to establish the state’s first port. It took nine long years to construct the Port of Indiana-Burns Harbor, which opened in 1970. Soon after that, the organization set its sights on the Ohio River and opened the state’s first river port in Mount Vernon in 1976. And after the state’s third port opened in Jeffersonville in 1985, the organization became known as the “Ports of Indiana.” “Indiana has three world-class ports that serve as economic engines for our state,” said Rich Cooper, CEO for the Ports of Indiana. “Even though our organization has been around for 50 years, we’re relatively young compared to many ports that were 1966 The formal groundbreaking ceremony for Indiana’s first public port brings approximately 650 people from industry, labor and government to the Burns Harbor facility.

established when the first ships arrived in this country. But Indiana has taken a strategic approach to developing a modern, selfsustaining port system that has unparalleled connections to multiple modes of land and water-based transportation. Our ports connect to the world via barges, lake ships, ocean vessels, railroads and trucks. In the last 50 years, Indiana has developed some of the best inland port facilities in North America.” Today, the Ports of Indiana system ships more than $1.5 billion worth of goods by water every year and manages 2,600 acres of maritime commerce parks along Lake Michigan and the Ohio River. These ports allow Indiana companies to ship unusually large volumes of cargo by water, the cheapest, safest and most environmentally friendly mode of transportation. One Great Lakes ship can carry the same amount of cargo as 3,000 trucks, while a single tugboat can haul the equivalent of 1,000 truckloads of cargo on the inland rivers. Some steel companies estimate that they save about $10 per ton on shipping costs by being located at one of Indiana’s ports. By tapping into the competitive advantage of waterborne shipping, the state of Indiana has generated significant economic growth in the past 50 years. More Crews construct a dolphin than 43,000 people now work in at the Port of Indiana- jobs related to business activities at Mount Vernon in 1974. (Photo credit: the Ports of Indiana, and the three Ports of Indiana files.)

1974

The SS Lehigh was 1969 the first ship to use the Port of Indiana-Burns Harbor,

bringing ore to Bethlehem Steel in September of 1969. (Photo credit: Dave Mergl, Hobart, Ind.)

1969 Through the work of representatives from Vanderburgh and Posey counties, legislation was passed to allow for the establishment of a port bordering the

Ohio River.

1970 Hoosiers celebrate the official dedication of the

Port of Indiana-Burns Harbor. Tours of the facilities are given by

boat while a lucky few

1971 The Indiana General Assembly votes to provide an initial $1 million grant for the

Ohio River port project Mount Vernon.

get to view the port from the

1978

Supports for the Port of Indiana-Mount Vernon’s large dual-lift overhead crane are put in place in 1978. (Photo credit: Ports of Indiana files.) 1982 A groundbreaking ceremony is held in

1973 The Indiana General Assembly appropriates $1.75 million for initial land acquisitions for a

Jeffersonville port.

credit: Indiana State Archives)

West Germany – in 1985. (Photo credit: Ports of Indiana files.)

Jeffersonville for Indiana’s third port.

Goodyear Blimp.

Construction continues on the 1968 east harbor dockwall of the Port of Indiana-Burns Harbor circa 1968. (Photo

The Port of Indiana-Jeffer1985 sonville moved its first shipment – 100-ton automobile presses from

1973 The formal groundbreaking ceremony at Mount Vernon celebrates Indiana's first Ohio River port, located in an area with high, flat, floodresistant land.

1984 A corporate is established

1986 After opening its third port, the Indiana Port Commission begins to

in downtown

market itself as the

headquarters for

Indiana’s ports Indianapolis.

Ports of Indiana.

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ports contribute over $5.4 billion to the state economy each year. Over the past 50 years, the Ports of Indiana has evolved into a very unique enterprise. Where else can you find a statewide port authority that operates a system of ports connected to two different coastal ranges and multiple maritime shipping modes? Indiana receives barges via the U.S. inland rivers system that connects to 38 states. On Lake Michigan, Indiana also receives lake vessels moving between the U.S. and Canada, as well as ocean ships that travel the world. By growing this unique network of maritime shipping modes at the “Crossroads of America” – the very heart of the nation’s vast highway and rail networks – the Ports of Indiana is able to provide extensive transportation options and advantages for customers. The Ports of Indiana was originally established to develop maritime shipping facilities on Indiana’s waterways, but as the world economy and the flow of trade have evolved, the statutory authority of the organization has been expanded to help grow business and facilitate trade in Indiana. The Ports of Indiana also serves as a statewide grantee for Foreign-Trade Zones (FTZs), which allow users to become more competitive in world markets by reducing, The Port of Indiana1994 Jeffersonville, pictured in 1994, was one of the fastest-growing

river ports throughout the 1990s. (Photo credit: Ports of Indiana files.)

eliminating or postponing U.S. duties on certain types of imported products kept inside the zone. The Ports of Indiana became the first grantee in the country to have multiple FTZs authorized under the U.S. Department of Commerce’s new Alternative Site Framework designation. This new program allows companies to obtain an FTZ with less cost and paperwork, shortening the process from what used to take up to a year to as little as 30 days. Like many other ports around the country, the Ports of Indiana has developed significant economic development abilities that go beyond its current ports and focus on building for the future. The Ports of Indiana has been given authority to develop additional ports or traffic exchange points anywhere in the state, as well as provide development financing for companies building or expanding in Indiana. These abilities coupled with a long-term strategic vision, allow the Ports of Indiana to provide the state with a self-sustaining economic catalyst that is focused on generating jobs today and making sure Indiana’s companies have access to world markets for the next 50 years. “I imagine our forefathers would be proud to see the organization as it exists today,” Cooper said. “The early visionaries fought for decades to establish a port system at the ‘Crossroads of America,’ and to see how much Indiana’s maritime commerce has grown over the past 50 years is a testament to their hard work and perseverance. Our primary goal is to create a sustainable competitive advantage for our port companies and the state of Indiana. We are able to do this in a variety of ways, but our core focus is on making sure that we can provide this state and its businesses with a worldclass port system that will keep our economy moving for many years to come.”

1994 The opening of I-265 provides direct interstate access to the Port of Indiana-Jeffersonville.

2008 The Indiana General Assembly and Gov. Mitch Daniels pass legislation officially changing the name of the Indiana

Port Commission to Ports of Indiana.

2011 The Ports of Indiana expands Indiana’s Foreign-Trade Zones program, so that more than 90 percent of the state is covered by the new FTZ designation. Indiana’s three ports generate $5.4 billion in annual economic activity

1997

as well as

The Port of Indiana-Jeffersonville, pictured in 1997, established itself as a hub for the steel industry with more than a dozen companies offering complementary steel services. (Photo credit: Ports of Indiana files.)

2003 Gov. Frank O'Bannon and Indiana General Assembly pass new

economic development

shipment in its history

statewide development

to construct an

financing and to develop

million expansion of its

intermodal facilities

anywhere in the state.

total jobs.

2010 The Port of Indiana-Burns Harbor

project, enabling

Ports of Indiana to offer

create more than

2004 The Ports of Indiana finances its first off-port

legislation allowing

Berry

Plastics Corporation $11

Evansville headquarters

and manufacturing facility.

$223 million in

state and local taxes and

43,000

handles the largest project cargo

– 134 complete 11 ships.

wind turbine units carried by

In Mount Vernon, Aventine Renewable Energy opens the largest single facility at any of the three ports – a 112-acre ethanol plant capable of producing 110 million gallons of the fuel annually.

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Enviro•Focus Environmental issues are very important to the Ports of Indiana. As a port authority, the Ports of Indiana has the dual responsibility of protecting and enhancing our environment while building infrastructure that facilitates economic development.

Kenco Logistics named top “green” supply chain company Inbound Logistics magazine recently named Kenco Logistic Services as one of the 2011 “Top Green Supply Chain Partners.” The magazine published its “G75” list in June, featuring 75 ‘green’ supply chain companies that have demonstrated a strong commitment to sustainability in their daily operations. Kenco was named to the list due to recent environmental projects including the hiring of a full-time sustainability leader, the use of web-based tracking of carbon and water-use footprints, the development of a sustainability best practices tutorial and an upcoming corporate sustainability assessment and facility audit. The company has also been upgrading its fleet with all-electric auxiliary power units to reduce idle time and fuel consumption. “We are greatly honored to be recognized by one of the leading logistics trade publications,” said Deni Albrecht, Kenco’s leader of sustainability. “This recognition exemplifies our dedication to sustainabillity and our environment.” Kenco operates the Mead Johnson Nutrition facility at the Port of Indiana-Mount Vernon. The 600,000 square-foot distribution center at the port was built in 1999 and employs 225 people. Founded in 1950 in Chattanooga, Tenn., Kenco is now one of the nation’s largest family-owned privately-held 3PLs. The company

has over 200 clients and manages 100 facilities with more than 25-million square feet of distribution space in 30 states and Canada. “Supply chain sustainability has always been top of mind for Inbound Logistics readers,” said Felecia Stratton, editor of Inbound Logistics. “The companies selected as this year’s 75 Green Supply Chain Partners, including Kenco Logistic Services, are truly ‘walking the walk’ when it comes to supply chain sustainability. These 75 visionaries have a long-standing history of driving efficiencies in their customers’ operations and an internal commitment to be as lean and green as possible. Inbound Logistics is proud to honor Kenco among them.” Inbound Logistics is a leading trade magazine for business logistics and supply chain managers. For more information, visit www.kencogroup.com or www.inboundlogistics.com.

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PORT REPORT - BURNS HARBOR Export Steel ArcelorMittal shipped 19,000 tons of steel coils to the Republic of Macedonia from the Port of Indiana-Burns Harbor in September.

ArcelorMittal ships steel to Macedonia PORTAGE, Ind. – This September, the Year-to-date steel shipments through PORT REPORT Port of Indiana-Burns Harbor exported the port are up 23 percent over last year, Indiana-made steel to the Republic of with 2011 on target for having the highest Column by Macedonia, the first substantial steel export steel shipments since 2007. Through Peter Laman from the port since 2008. The shipment October, the port handled 11 percent more Port Director – made up of more than 19,000 tons of cargo than the same period last year. hot-rolled steel coils – was produced at Northwest Indiana is the richest steelContact Info: ArcelorMittal’s Burns Harbor facility. The producing region in the world and being (219) 787-5101 steel landed Thessaloniki, Greece, where plaman@portsofindiana.com able to access world markets through our it was transported to ArcelorMittal’s steel port is vital for ArcelorMittal and many finishing facility in Skopje, Macedonia’s other companies. Whether it’s bringing in capital city. raw materials or shipping out finished products, steel companies Upon hearing of the shipment, Congressman Pete Visclosky can reduce their logistics costs substantially by shipping through offered this statement: “It’s very exciting to see a large order of steel the port. We have an experienced and aggressive terminal operator produced at ArcelorMittal being shipped out of the Port of Indiana- in Federal Marine Terminals, an extremely efficient workforce, and Burns Harbor. The port is a vital asset to the region, and continuing many port companies that provide steel-related services, which is to invest in and support it will only serve our communities’ best why this facility handles more steel than any other Great Lakes port. interests. Whether we are importing or exporting, jobs are being created and maintained – for our longshoremen, for our steelworkers. Port welcomes new employee I am hopeful that this large export is just the beginning of a long You may have noticed a new face helping out parttrend for our local steel companies, and proof that American steel time around the port in 2011. We are now remains competitive worldwide.” pleased to announce Gary Gloyd joined the Federal Marine Terminals, the port’s general cargo stevedore, port as a full-time maintenance technician in loaded the steel onto the Pacific Huron. The vessel, built especially September. Raised in Portage, Gary is a graduate for carrying cargo between Europe and the Great Lakes, made its of Portage High School, and he previously fourth voyage into the Great Lakes. worked for Culligan Water in Kouts, Ind., as a Ramana Venkat, managing director of ArcelorMittal driver and maintenance tech. He and his wife International, said the shipment was the company’s “most significant Dawn live in Valparaiso and have a 21-year-old export from the U.S. in three years.” He also added, “Opportunities daughter, Kacey. Gary will play an important Gary Gloyd to export steel from ArcelorMittal USA facilities can be very role in helping to maintain the port and we’re attractive when market conditions allow. Export projects always glad to have him officially onboard. bring excitement to the teams involved and demonstrate the global competitiveness of our Northwest Indiana steel facilities.” Contact Peter Laman at (219) 787-5101; plaman@portsofindiana.com

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PORT REPORT - MOUNT VERNON Making A Splash Brandi Ann Freeman christens a Mount Vernon Barge Service tugboat named in her honor at the Port of Indiana-Mount Vernon. (Photo credit: TPG Marine Enterprises)

Mount Vernon Barge christens three vessels MOUNT VERNON, Ind. – Marla Diane. Mount Vernon Barge Service was PORT REPORT Sidney Rene. Brandi Ann. Three women founded in 1962 and became a part of TPG with enough power to move barges arrived Marine Enterprises in 2007. In addition Column by at the Port of Indiana-Mount Vernon. to the Mount Vernon and Green River Phil Wilzbacher Mount Vernon Barge Service christened operations, TPG also operates a third barge Port Director three new vessels at the port in September – service in Jeffersonville, Ind., which opened a 24-foot pushboat, the MV Marla Diane; in late 2010. The company offers harbor Contact Info: an aluminum, high-speed response vessel, (812) 833-2166 service, fleeting, stevedoring and barge pwilzbacher@portsofindiana.com the Sidney Rene, and a 50-foot fleet boat, cleaning and repair. the MV Brandi Ann. For more information, visit www. The Brandi Ann is named for Brandi mvbarge.com. Ann Freeman, the oldest daughter of Don Miller, president of TPG Marine Enterprises, the parent company to Mount Vernon Barge. The vessel joins the company’s fleet of eight towboats. Serodino A new face around the port Inc. of Chattanooga, Tenn., built the boat. The 1,200-horsepower It’s my pleasure to welcome a new towboat is powered by twin Cummins engines. employee at the Port of Indiana-Mount Vernon. The Marla Diane is named after Marla Diane Abraham, TPG’s Valerie Howell joined our organization as office administrator for the past eight years. The 24-foot vessel will the port’s administrative assistant in October. be used as a repair boat for Green River Barge Service, the newest A Mount Vernon native and graduate of expansion of TPG that opened in 2011. The boat was built by Indiana University, Valerie previously worked Madison Boat & Barge in Madison, Ind., and is equipped with a at Deaconess Health Systems in Evansville 150-horsepower John Deere engine. The vessel will operate where as an administrative assistant for the billing the Ohio and Green Rivers meet, upstream of Evansville, Ind. department. She and her husband Ryan have a The Sidney Rene is a 34-foot fleet repair boat named after seven-year-old son Isaac, and in her free time, Valerie Howell Miller’s youngest daughter. The aluminum boat was built by Valerie enjoys spending time with her family, Scully’s Boat Works in Morgan City, La. It is equipped with two camping and riding all-terrain vehicles and 250-horsepower outboard motors and carries a cutting torch, motorcycles. Please join me in giving a warm welding equipment, pumps and supplies for performing barge welcome to Valerie. repairs along the Ohio River between Evansville and Uniontown, Ky. TPG invested more than $2 million into the three vessels in Contact Phil Wilzbacher at (812) 838-4382; pwilzbacher@ response to growth of its barge-switching business on the Ohio River. portsofindiana.com 12 · Fall/Winter 2011 PORTSIDE MAGAZINE 111219-POI_Portside-cs4.indd 12

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PORT REPORT - JEFFERSONVILLE New Recycling Business Stainless steel scrap processor Crominet Corp. moved to the Port of Indiana-Jeffersonville in August.

Stewart takes helm at Jeffersonville port Stewart is a graduate of Indiana JEFFERSONVILLE, Ind. - The Ports PORT REPORT University Southeast with a degree in of Indiana has named Scott Stewart as Business Economics & Public Policy. He port director for the Port of IndianaPorts of Indiana is married to Christi, and has two sons, Jeffersonville. A native of nearby New welcomes new port Ben of London, England, and Brian of Albany, Ind., Stewart spent 24 years in director Scott Stewart New York City. His step-son Dustin positions of increasing responsibility with resides in Cincinnati, Ohio, and stepthe Procter & Gamble Company before Contact Info: daughter Hana resides in Louisville, Ky. retiring in 2008 and moving back to (812) 283-9662 sstewart@portsofindiana.com Indiana. He joins the port after serving as Director of Strategy for the Indiana Department of Transportation on the Ohio River Bridges project. Port welcomes two new companies “We’re very excited to have someone of Scott’s caliber join Two new companies recently joined the Port of Indianaour team,” said Rich Cooper, CEO for the Ports of Indiana. Jeffersonville. Cronimet Corp., a leading stainless steel scrap “Scott’s management and leadership roles with one of the processor, and Arctic Minerals, a top manufacturer and supplier of world’s top corporations, coupled with his experiences in the industrial minerals, opened locations at the port earlier this year. transportation sector with the state of Indiana, will allow him to Arctic Minerals opened a distribution center at the port in connect immediately with port customers and business prospects April, handling industrial minerals used in paints and coatings for a in our industry. He clearly understands the win-win outcomes wide variety of industries. The company plans to install equipment of public-private partnerships which define our strategy for that will allow it to begin processing minerals by the end of the growing business and Indiana’s economy.” year. During his career with Procter & Gamble, Stewart held Crominet opened a 100,000 square-foot warehouse and leadership positions at company headquarters in Cincinnati, processing facility near Kinder Morgan at the port on Aug. 1. Ohio, and internationally in Geneva, Switzerland, and Brussels, Crominet processes steel scrap which is used as raw materials Belgium. He served as an associate director where he developed by steel mills in the region. The company is headquartered in strategies and partnerships to increase sales and market share for Aliquippa, Pa., with other locations in Illinois, California, Ohio, P&G and five of its billion-dollar brands. Alabama, Texas, New Jersey and Florida. “This is a great opportunity for me to come back home Both companies utilize the port’s logistics connections, and play a role in developing new business opportunities for shipping by rail, truck and water. While both companies utilize our region and state,” Stewart said. “The Ports of Indiana is barge shipping to bring raw materials, Crominet also plans to ship recognized as one of the premier inland port systems in the steel out by barge. country. The multi-modal transportation assets at our port in “Being located on the river gives us a logistical advantage and Jeffersonville have us well positioned to attract new cargoes and allows us to save resources on transportation costs,” said Davin industries to southern Indiana. I look forward to working with Blumenstock, general manager of Crominet’s port location. port customers and the local community to discuss how the port For more information, visit www.arcticminerals.net or can grow and attract new investments to this region.” www.cronimetusa.com. www.portsofindiana.com · Fall/Winter 2011 13 111219-POI_Portside-cs4.indd 13

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Commission approves $1.7 million in port improvements The Ports of Indiana Commission approved more than $1.7 million in port improvements at meetings held this summer and fall. Projects included: • 0$1,098,821 to Tranco Industrial Services Inc. of Burns 0 Harbor, Ind., for rebuilding rail track and two major 0 crossings at the Port of Indiana-Burns Harbor; • $172,560 to Thatcher Foundation Inc. of Gary, Ind., for bulkhead tie-rod repairs at the Burns Harbor port; • $62,153 to Walsh & Kelly of Griffith, Ind., revising a previously awarded contract for installation of 550 feet of rail track also at Burns Harbor; and, • $408,740 to Midwest Mole Inc., of Indianapolis, for installation of a new culvert at the Port of Indiana-Mount Vernon. The commission approved a contract with MG Rail for the company to continue to serve as the shortline railroad for the Port of Indiana-Jeffersonville. MG Rail has provided switching services for the port’s rail customers since 2003. The new agreement continues through 2016 with an option to extend an additional three years. The commission approved two agreements transferring a 7.75acre parcel of land at the Port of Indiana-Mount Vernon from Agrium U.S. Inc. to a new lease with the company’s subsidiary, Crop Production Services. The land houses storage facilities for dry and liquid fertilizer. Crop Production Services, Agrium’s retail division, is the port’s 12th company. The commission also agreed to two-year leases with Pathway Farms and B&R Simpson Farms at the Mount Vernon port to farm undeveloped land. The commission amended a lease with O-N Minerals at the Burns Harbor port, allowing year-round use of 2.86 acres. This land was previously classified for seasonal use. O-N Minerals joined the port in 1991 and operates a limestone grinding facility.

The Port of Indiana-Jeffersonville’s shortline railroad, MG Rail, will continue to offer switching services at the port through at least 2016.

Ports of Indiana expands FTZ area 85 Indiana counties now part of new program

Indiana stands alone when it comes to foreign-trade development. More than 90 percent of Indiana’s 92 counties are now part of a Foreign-Trade Zone (FTZ) service area. No one else is even close. It’s an impressive statistic, but what does this mean for your business? FTZs are restricted access areas that, while on U.S. soil, are considered outside of U.S. commerce. This allows companies within an FTZ to delay or reduce the amount paid in customs duties. The program, started in 1934, allows U.S. companies to be more costcompetitive with those located in other countries. Previously, one impediment to the FTZ program was the application process. It required detailed paperwork and significant application fees. Start to finish, the process would average one full year before an FTZ was activated and could cost thousands of dollars. In 2009, the U.S. Foreign-Trade Zones Board established a new FTZ designation called Alternative Site Framework (ASF) which simplified the application process by creating pre-approved “service areas.” Companies in these service areas can join an FTZ in as little as 30 days, saving plenty of time and money.

Column by

David Haniford

Contact Info: (317) 232-9204 dhaniford@portsofindiana.com

The Ports of Indiana serves as a statewide grantee of FTZs and was the first organization in the nation to have three zones given the ASF designation. Indiana’s other three FTZ grantees also applied for the ASF designation. According to Scott Taylor of Miller & Co., a Kansas City, Mo., law firm specializing in import, export and foreigntrade zone law, while other states have multiple FTZs participating in the ASF program covering many counties, no other state is close to Indiana as far as percentage of counties included. If you think your company could benefit from delayed or reduced customs duties, we have a worksheet to help estimate savings at www. portsofindiana.com/ftzworksheet. If your business is located in one of the handful of Indiana counties not participating in the ASF program, you are not out of luck. The traditional subzone application process is still available, or more likely, with a project in-hand, the county would elect to join an ASF service area. Contact David Haniford at (317) 232-9204; dhaniford@ portsofindiana.com

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150 W. Market St., Suite 100, Indianapolis, IN 46204 (317) 232-9200 / fx (317) 232-0137 / info@portsofindiana.com www.portsofindiana.com

Port of Indiana Burns Harbor

6625 S. Boundary Drive Portage, IN 46368 219-787-8636 ADS Logistics Roll & Hold Division 725 George Nelson Drive Portage, IN 46368 219-787-5015 Transportation, warehousing, inventory management

Aqua-Land Communications Inc. 60 Stagecoach Road Portage, IN 46368 219-762-1541 Communications provider ArcelorMittal Burns Harbor 250 W. U.S. Highway 12 Burns Harbor, IN 46304 219-787-2120 Steel mill Calumite Co. 900 George Nelson Drive Portage, IN 46368 219-787-5045 Calumite processing Cargill Inc. 6640 Ship Drive Portage, IN 46368 219-787-9461 Grain handling and ag products Carmeuse Lime and Stone 165 Steel Road Portage, IN 46368 219-787-9190 Limestone processing Central Coil Processing 501 George Nelson Drive Portage, IN 46368 219-787-5000 Steel processing Federal Marine Terminals Inc. 415 Salmon Drive Portage, IN 46368 219-787-1017 Stevedoring Feralloy Midwest Portage 6755 Waterway Drive Portage, IN 46368 219-787-9698 Steel processing Feralloy Processing Co. 600 George Nelson Drive Portage, IN 46368 219-787-8773 Steel processing Frick Services 800 Sun Drive Portage, IN 46368 219-787-9475 Dry/liquid bulk storage/distribution Great Lakes Towing Co. 1800 Terminal Tower, 50 Public Sq. Cleveland, OH 44113 216-621-4854 Tugboat, towing, barge services HealtheACCESS Clinic 6615 S. Boundary Drive Portage, IN 46368 219-787-8662 Occupational healthcare facility Indiana Pickling & Processing 6650 Nautical Drive Portage, IN 46368 219-787-8889 Steel pickling

International Longshoremen’s Assoc. Local 1969 6031 Melton Road U.S. Highway 20 Portage, IN 46368 219-764-9715 Maritime union Lakes and Rivers Transfer 4600 E. 15th Ave. Gary, IN 46403 219-787-9280 Bulk stevedoring, trucking Leeco Steel 1000 E. Boundary Road Portage, IN 46368 800-621-4366 Steel plate service center Levy Co. 900 George Nelson Drive Portage, IN 46368 219-787-8666 Aggregate processing Metro International Trade Services LLC 345 Salmon Drive Portage, IN 46368 219-787-8690 Metals distribution and storage Mid-Continent Coal & Coke Co. 915 W. 175th St. Homewood, IL 60430 708-798-1110 Coal, coke and petroleum coke processor NLMK Indiana 6500 S. Boundary Drive Portage, IN 46368 219-787-8200 Hot-rolled steel processing Precision Strip Inc. 6720 Waterway Drive Portage, Indiana 46368 219-787-1602 Steel coil processing SMS Mill Services 6735 Waterway Drive Portage, IN 46368 219-787-1020 Scrap bailing operation Steel Warehouse Portage 6780 Waterway Drive Portage, IN 46368 219-787-8887 Steel service center Tanco Terminals Inc. 400 E. Boundary Drive Portage, Indiana 46368 219-787-8159 Liquid storage, handling Tube City IMS Division by NLMK Indiana 6500 S. Boundary Drive Portage, Indiana 46368 219-787-0004 Transportation United States Steel Corp. U.S. Highway 12 Portage, IN 46368 219-762-3131 Steel mill Walsh & Kelly 24358 State Road 23 South Bend, IN 46614 574-288-4811 Asphalt processing