Portside Magazine - Summer 2012

A Ports of Indiana Publication · Summer 2012

Bridge to a brighter future New Ohio River bridges to spur growth in Southern Indiana/Greater Louisville economy

Inside this Issue:

Port handles world’s largest crawler crane, pg. 11 www.portsofindiana.com · Summer 2012

Summer 2012 路 PORTSIDE MAGAZINE

TABLE OF CONTENTS FROM THE CEO ....................................................................................................... 4 Drought creates hardships for both farmers and shippers 150 W. Market St., Ste. 100, Indianapolis, IN 46204 317-232-9200 | www.portsofindiana.com

FROM THE BOARD ROOM ....................................................................................... 5 Commission approves leases and infrastructure improvements Governor appoints new commissioner to Ports of Indiana NEWS & NOTES 10th annual Indiana Logistics Summit set for Oct. 17 ….........................................….. 6 Port earns four international awards for communications ……..................................... 6 Ports of Indiana joins Hwy H2O on Great Lakes trade mission to Antwerp ……................ 7 Fednav Group is key partner for Ports of Indiana ….................................................….. 7 Burns Harbor port welcomes new engineer, operations manager ........................... 7

Ports of Indiana Mission Statement “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.”

FEATURE STORY ..................................................................................................... 8 Bridge to a brighter future: New Ohio River bridges to spur growth in Southern Indiana/Greater Louisville economy ENVIROFOCUS ..................................................................................................... 10 Guest column: Debate over Chicago locks and Asian carp is missing the boat DNR releases 70,000 brown trout at Port of Indiana-Burns Harbor PORT REPORTS Burns Harbor: Port handles world’s largest crawler crane ……................................... 11 Mount Vernon: Mount Vernon Barge Service celebrates 50 years ……........................ 12 Jeffersonville: Metals USA expands operations through port synergies ……................ 13 Ports of Indiana Directory ……................................................................................. 14

For advertising or subscription information, contact Liz Folkerts, (317) 232-9205; lfolkerts@portsofindiana.com

www.portsofindiana.com · Summer 2012

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FROM THE CEO

Drought creates hardships for both farmers and shippers

Rich Cooper

Chief Executive Officer, Ports of Indiana

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Summer Summer 2012 2012 ·· PORTSIDE PORTSIDE MAGAZINE MAGAZINE

If you were asked who is affected most by this summer’s drought, chances are you would say ‘our farmers.’ Over the last few months, the drought has dominated the news and we are reminded daily of the impact this will have on food prices, feed for livestock and even energy costs. According to the U.S. Department of Agriculture, almost 80 percent of the nation’s agricultural land is experiencing drought. In early August, the U.S. Drought Monitor listed 99.6 percent of Indiana under drought conditions, with 24 percent classified as “exceptional drought,” the most severe category. It will be awhile before we fully realize the full impact of this extreme weather on this year’s harvest.

The agricultural and waterborne shipping industries are brothers-in-arms when it comes to the effects of rainfall extremes. The drought can be as devastating to the inland waterways as it is to tens of thousands of planted acres. The rivers beg for a drink of water much like our corn fields. Water levels on our navigable rivers have dropped considerably this summer, slowing the movement of the nearly $70 billion in cargo that is shipped via the 12,000-mile system each year. For every inch lost in draft, a barge loses 17 tons of cargo capacity. Less capacity forces shippers to use more barges to load the same amount of cargo. Anytime a load is lightened, the cost per ton increases for the shipper. In some areas near Cairo, Ill., where the Mississippi and Ohio rivers come together, the allowable draft has dropped more than three feet. Lower water levels also increase the chances for grounding a vessel.

Groundings have already caused multiple closures and delays this summer on the Mississippi River.

Vessels with a draft of nine feet or more are at risk of grounding on the Ohio/ Mississippi river system, and by early fall, conditions will likely be worse. The crew at Mount Vernon Barge Service recently had to lighten 60 barges in a five day period because the river level dropped so quickly after the barges had been loaded.

The company is also concerned about work lost due to a greatly diminished grain harvest.

Our friends at American Commercial Lines say that while barge traffic continues to move, operating efficiency is down. The company joined the rest of the inland barge industry in voluntarily loading lighter and reducing tow sizes to ensure safe navigation in the low water conditions. These efforts have helped ensure that commerce continues to flow, but not without increasing operating costs and transit times.

There is not much we can do to prevent natural disasters like the drought from impacting shipping on our waterways, but there are other immanent threats to the waterways that we can do something about. The lock infrastructure on the inland rivers is long overdue for renovation. There are more than 200 locks on the U.S. inland waterways system and more than half of them are over 50 years old, well exceeding their design life. Many are too small or frequently out of service for repairs. The total cost of replacement is high but the cost not to replace them is almost unthinkable if we are serious about preserving America’s inland waterway system. This infrastructure deserves adequate funding from Congress to insure the most cost effective and environmentally friendly way to move grain and other bulk commodities remains viable.

It’s unfortunate that it often takes disasters to fully realize the importance of two hard-working, unsung heroes of our nation’s economy – the inland river system and our farmers who feed America and the rest of the world. It’s still unclear just how much the recent rains will start to replenish our rivers and help what appears to be a disastrous crop year, but one thing is for certain – you won’t have to be a farmer or work in the waterways industry to feel the pain of the ‘Drought of 2012’ – you’ll get to experience it firsthand on your future trips to the grocery store.

Commission approves leases and infrastructure improvements The Ports of Indiana commission awarded over $2 million in security and infrastructure improvements and finalized leases for three companies at the Port of Indiana-Burns Harbor during its public meetings in April and June.

The commission ratified a 30-year lease with Ratner Steel Supply Co. for 4.5 acres at the Burns Harbor port. The steel sheet and plate producer is investing over $14 million to build and equip a 102,000 square-foot steel service facility, which is slated to open in early 2013.

The commission approved a lease of 3 acres with PI&I Motor Express, a trucking business that hauls steel products for port company NLMK Indiana Corp. The commission also consolidated leases with long-time Burns Harbor port tenant, Frick Services, combining sites for a dry bulk warehouse, a liquid storage tank and a bulk storage area into a new 20-year lease.

Recent infrastructure and security improvements approved by the commission included the following contracts: • $1,136,788 to Midwestern Electric of East Chicago, Ind., for a new security guardhouse and nine security lights at the Port of Indiana-Burns Harbor. This project will be partially funded by FEMA grants.

• $462,769 to J.H. Rudolph & Co. of Evansville, Ind., for paving approximately 6,600 feet of roadway at the Port of Indiana-Mount Vernon.

• $326,840 to G4S Technology of Omaha, Neb., for a wireless video surveillance system at the Mount Vernon port. This project will also be funded by a FEMA grant.

• $36,500 to John A. Doyle & Assoc. of Michigan City, Ind., for a new sewer main at the Burns Harbor port.

• $31,389 to Track Services of Bartonville, Ill., for rail maintenance at the Port of Indiana-Mount Vernon.

• $29,500 to Hasse Construction Co. of Munster, Ind., for replacement of roughly 42 feet of dockwall at the Burns Harbor port.

The commission also approved the purchase of 116 acres at the Port of Indiana-Mount Vernon, which brings the port’s total size to 1,081 acres and creates a single industrial site that is nearly 500 acres – the largest available at any of the state’s three ports.

In other business, the commission approved two utility easements in Jeffersonville – one for the city to expand the sanitary sewer system at the port and another for AT&T to install new fiber optic lines.

Governor appoints new commissioner to Ports of Indiana INDIANAPOLIS – Gov. Mitch Daniels has appointed Christine H. Keck to serve on the Ports of Indiana commission as of July 1. Keck is the director of government relations for Newburgh, Ind., based Energy Systems Group (ESG), a wholly owned subsidiary of Vectren Corp.

Prior to assuming her role in government relations, she was the director Christine H. Keck of strategy and business development for ESG’s Utility Services Group, leading strategic initiatives in partnering with utilities and federal government agencies to diversify and grow their renewable energy and energy efficiency portfolios.

“It is an honor to join the Ports of Indiana commission,” Keck said. “The three ports are valuable assets to the state’s economy and I look forward to doing my part to build on the success the ports have already experienced.”

Prior to joining ESG in 2008, Keck served as a senior vice president for Old National Bank in Evansville, Ind. She began

her career with Old National in 1996, as part of the bank’s management training program, and worked in a variety of capacities in the commercial and corporate lending groups.

“I am pleased to welcome Christine to the Ports of Indiana commission,” said Ports of Indiana CEO Rich Cooper. “Her business skills and professional experiences will allow her to be an excellent contributor to our board and the organization.”

Keck attended McGill University in Montreal, Canada, and graduated from Indiana University.

Keck has served in numerous business and community leadership roles, including a member of the University of Evansville Schroeder School of Business Dean’s Advisory Board and director of the Richard G. Lugar Excellence in Public Service Series Board, Chamber of Commerce of Southwest Indiana Board, St. Mary’s Hospital Foundation Board and YMCA Board.

She is also a trustee for the Indiana Landmarks Foundation Board and a commissioner for the Vanderburgh County Central Dispatch Board, as well as a past commissioner for the Indiana Judicial Nominating and Qualifications Commission and the City of Evansville Historic Preservation Commission.

www.portsofindiana.com · Summer 2012

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NEWS & NOTES

10th annual Indiana Logistics Summit set for Oct. 17 INDIANAPOLIS - Top national experts in transportation, distribution and logistics will descend upon the Indiana Convention Center on Oct. 17 for the 2012 Indiana Logistics Summit. The 10th annual conference will feature presentations by industry experts, extensive networking opportunities and booth displays.

Co-hosted by Purdue University, Conexus Indiana and Ports of Indiana, the summit brings together representatives from all modes of transportation, government, economic development and academia to discuss issues affecting the industry and how to grow business through logistics.

Indiana is known as the “Crossroads of America” and it ranks among the top 10 states in more than 40 logistics categories, including No. 1 in intersecting interstates. The state’s central location, business-friendly environment and extensive transportation infrastructure have made Indiana a leader in the world of logistics. As a result, more than a billion tons of freight travel through the state each year and Indiana has become one of the best places to grow businesses that rely on the movement of goods.

Attendees at the Indiana Logistics Summit will hear industry experts talk about major logistics issues and opportunities for future growth. Other topics will include industry updates from road, rail, water and air experts; status reports for major transportation projects around Indiana; best practice examples from industry leaders; current event issues from around the

Jim Vena, senior vice-president, southern region for CN Railway, speaks at the 2011 Indiana Logistics Summit. The 2012 Summit will be held on Oct. 17 in Indianapolis.

U.S.; and Indiana’s latest rankings in key logistics areas.

Registration open Registration for the Summit includes admission to all presentations, continental breakfast, keynote luncheon, networking receptions, exhibition area and an Oct. 16 evening reception.

An “Early Bird” registration fee of $150 is available until Sept. 1. Visit www.indianalogistics.com for more information.

Various levels of sponsorships which include registrations and exhibit space are also available. For more information about sponsorship opportunities, contact Gloria Novotney at (317) 840-7847 or gnovotney@portsofindiana.com.

Ports of Indiana earns four international awards for communications The American Association of Port Authorities (AAPA), a trade association representing leading port authorities throughout the Western Hemisphere, recently announced that the Ports of Indiana will receive four Communications Awards at the 101st annual AAPA Convention this fall in Mobile, Ala. This was the highest number of awards the Ports of Indiana has ever received in the annual competition and trailed only the ports of Long Beach and Los Angeles in total awards. The top honor that the Ports of Indiana received was an Award of Excellence for the quarterly magazine, “Portside,” that you are reading today.

Additional honors included Awards of Merit for the website portsofindiana.com and the “2011 Indiana Logistics Directory,” as well as special recognition for a brochure titled “Connecting the World to America’s Heartland.”

“We would be honored to receive one award but to earn four in one year is quite an accomplishment,” said Rich Cooper, CEO for the Ports of Indiana. “Communicating the significance of Indiana’s three ports is often challenging since we are not a coastal state; not everyone understands our geography allows us to reach the 6

Summer 2012 · PORTSIDE MAGAZINE

Atlantic Ocean via the St. Lawrence Seaway and the Gulf of Mexico via the inland river system. But, make no mistake, Indiana has one of the premier inland port systems in North America and it is gratifying to see our efforts recognized alongside the biggest ports in the country.”

AAPA selected 22 ports for exemplary communications projects from 101 submissions.

The association utilized 29 public relations professionals from the Washington, D.C. area to judge entries ranging from advertisements and periodicals to videos and websites. Only 15 submissions from 10 ports received an Award of Excellence and 19 submissions from 12 ports scored an Award of Merit.

The Port of Long Beach will receive the Dan Maynard Communications Award for Overall Excellence, which is bestowed on the port earning the most award points in AAPA’s communications competition.

Founded in 1912, AAPA today represents 160 of the leading port authorities in the United States, Canada, Latin America and the Caribbean and more than 300 sustaining and associate members, firms and individuals with an interest in ports. For more information visit, www.aapa-ports.org.

NEWS & NOTES

Ports of Indiana joins Hwy H O on Great Lakes Trade Mission 2

Jody Peacock, Director of Corporate Affairs for Ports of Indiana, was one of 16 Great Lakes transportation stakeholders that joined Hwy H2O for a trade mission and the Breakbulk Europe tradeshow in Antwerp, Belgium, during May. Hwy H2O is an alliance of transportation stakeholders in the Great Lakes/Seaway System region that works to develop business and deliver greater awareness about the System locally and internationally. Working with its members and partners, Hwy H2O leverages its collective knowledge about the System to offer innovative services and incentive programs to ensure the System remains a competitive gateway into the future.

During the trip, the delegation operated an informational booth at the Breakbulk Expo and participated in several trade development activities, which included: meeting with senior executives for Fednav, including Commercial Manager and Director Etienne De Vel; touring the Port of Ghent by boat and meeting with commercial managers for the port and Stukwerkers Havenbedrijf Facilities; touring the Fednav Coils Terminal at the Port of Antwerp; and hosting presentations by the European biomass association “AEBIOM” (European Affairs Manager Edita Vagonyte), the European association for coal and lignite “EURACOAL” (Secretary General Brian Ricketts), the U.S. Wheat Associates Inc. (Regional Director Goris van Lit) and Spliethoff, Netherlands’ largest shipowner (Operations America Dept., Peter Herkemij).

The delegation also held a special meeting with Seaports of Niedersachsen, an association of nine German ports, and hosted a rooftop reception for Great Lakes/St. Lawrence Seaway business contacts at Horta Café in downtown Antwerp.

With more than 4,000 attendees, Breakbulk Europe is the largest and most important gathering in Europe for companies involved in the shipping of heavy-lift, project cargo and traditional breakbulk cargoes. It provides the opportunity for shippers to meet and develop relationships with the leading specialized carriers, forwarders, ports, terminals and packers who have the expertise and resources to handle oversized cargoes with unique handling requirements. Exhibitors include the world’s major carriers, forwarders and ports that handle specialized heavy-lift, project and breakbulk cargoes.

The Ports of Indiana will also be sending representatives and hosting an exhibit booth at the Breakbulk Americas Transportation Conference in Houston, Texas, Oct. 8-11.

Fednav Group is key partner for Ports of Indiana

Jody Peacock, on behalf of the Ports of Indiana, had the opportunity to meet with representatives from Fednav Group during the Hwy H2O trade mission to Antwerp, Belgium. Fednav has been a leader in the international shipping business for over 65 years and is Canada’s largest ocean-going, drybulk shipowning and chartering group with offices worldwide. The Group is also engaged in servicing vessels and handling cargo through its various terminals and agencies, which include: Fednav Limited, Fednav International Ltd., FALLine, Federal Marine Terminals (FMT), Fednav Direct, Canarctic and Enfotec.

FMT operates 10 port terminals in North America, including the general cargo facilities at the Port of Indiana-Burns Harbor. Roughly half of the ocean vessels entering the Great Lakes are Fednav vessels and about a third of those ships call on Burns Harbor.

[Pictured from left to right are: 1) Jean Van Steenberghe, Fednav Europe; 2) Wojtek Hryckowian, Chartering Manager, Fednav International; 3) Etienne De Vel, Commercial Manager, Fednav Belgium; 4) Jody Peacock, Ports of Indiana; 5) Koen Ruts (hidden), Assistant Line Manager, Fednav Belgium; 6) Dennis Pfeffer, Line Manager, FALLine; 7) Candice Clark, International Accounts Manager, Fednav Direct; 8) Gerrit De Win, Documentation Manager, Fednav Belgium; 9) Tom Foubert (back), Vessel Operations Manager, Fednav Belgium; 10) Anja Van Dam (front), Commercial Assistant, Fednav Belgium; 11) Matt McPhail, Sales and Marketing Manager, Federal Marine Terminals; 12) John Michielssen, Cargo Operations Manager, Fednav Belgium.]

Burns Harbor port welcomes new engineer, operations manager PORTAGE, Ind. – The Ports of Indiana welcomes two new key managers to the Port of Indiana-Burns Harbor – Engineer Ed Hamilton and Operations Manager Nikolas Szymarek.

Hamilton, who joined the organization in April, is a graduate of Purdue University and previously worked as a civil engineer for Mackie Consultants, where he focused on design and permitting of commercial, institutional and industrial construction. He and his wife Esther have a one-year-old son and are expecting their second child in September.

He enjoys traveling, attending sporting events, Ed Hamilton do-it-yourself projects and genealogy research.

Szymarek started his position in June. He received his associate’s degree from Holy Cross College, his bachelor’s from the University of Indianapolis and his MBA from Butler University.

He previously worked at Nexeo Solutions, a distributor of chemical and plastic products, in Willow Springs, Ill. A native of northern Indiana, he enjoys spending time with his family, golfing and biking.

“Both Ed and Nick have already become great assets for our team,” said Ports of Indiana CEO Rich Cooper. “They both bring great experience and energy to their roles. Nick will play a key role managing the operations of one of the premier ports on Lake Michigan and Ed will be working with all three of our ports on a wide range of engineering projects.

Nikolas Szymarek Engineering Director John Hughes has already passed the baton on several large projects to Ed and the results have been quite gratifying. We expect to see great things from both Ed and Nick.” www.portsofindiana.com · Summer 2012

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Bridge to a brighter future

New Ohio River bridges to spur growth in Southern Indiana/Greater Louisville economy In 1997, Louisville, Ky., was on the short list for a new HarleyDavidson motorcycle plant that would bring more than 800 highpaying manufacturing jobs to the region. Ultimately, though, Harley chose Kansas City over Louisville.

The reason? Louisville could not find a suitable 100-acre site for the plant. While economic development officials scrambled to assemble an acceptable parcel of land, Kansas City had multiple sites ready to go.

Ironically, just north of Louisville across the Ohio River sat a 6,000acre site in Southern Indiana that easily could have accommodated Harley. Furthermore, the site was just a stone’s throw from one of the finest inland ports in the country – the Port of Indiana-Jeffersonville.

But back then the site – now known as the River Ridge Commerce Center – wasn’t ready for development and had limited road access.

Fast forward to early 2012, when online retail giant Amazon was looking for a place to build a mammoth 1 million-square-foot fulfillment center that would employ more than 1,000 workers.

This time River Ridge was ready – and that’s where Amazon decided to build.

Soon River Ridge will be even more attractive to business as construction is set to begin on a new Ohio River bridge that will give the commercial park easy access to three interstate highways, as well as a direct link to the multi-modal facilities at the Jeffersonville port. In fact, the imminent start of construction on the bridge was one of the key factors Amazon cited in its location decision.

The Ohio River Bridges Project consists of the East End Crossing and Downtown Crossing. Indiana is procuring the East End Crossing and Kentucky is procuring the Downtown Crossing.

The new bridge, one third of the East End Crossing, is part of a massive $2.6 billion project to construct two new bridges across the Ohio River in the Louisville region. The East End Crossing will connect with I-265 on both sides of the river and complete the loop around the Louisville metropolitan area, connecting Utica, Ind., with Prospect, Ky. A few miles downriver, the second bridge, part of what’s being called the Downtown Crossing, will carry traffic north on Interstate 65. It will run parallel to the existing Kennedy Bridge, which currently handles all I-65 traffic. Once the new downtown bridge opens, the Kennedy will carry only southbound traffic.

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Summer 2012 · PORTSIDE MAGAZINE

The Ohio River Bridges Project consists of the Downtown Crossing (sections 1, 2, and 3) and the East End Crossing (sections 4, 5 and 6). The estimated cost for each crossing is $1.3 billion.

Indiana is overseeing construction and financing of the East End Crossing, while Kentucky is responsible for the Downtown Crossing.

“This is the most important transportation infrastructure project in the region since the interstate highway system was completed in the late 1960s,” said Jeffersonville Economic Development Director Rob Waiz. “Amazon is just the start. These bridges will open up Southern Indiana to economic opportunities and bring thousands of new jobs to the region.”

Ted Smith, director of Louisville’s Department of Economic Growth and Innovation, agreed: “The Ohio River Bridges Project has the potential to transform the region, solidifying our national leadership in logistics and distribution.”

Economic development officials say the Ohio River Bridges Project will boost the local economy much like the expansion of Louisville International Airport did in the 1980s. That expansion led United Parcel Service to locate its worldwide air cargo hub in Louisville, which in turn has attracted more than 100 new logistics operations over the past few decades, creating an estimated 55,600 jobs and $2 billion in annual payroll. UPS alone employs more than 20,000 workers in Louisville.

An economic impact study showed that the bridges project will result in more than 2,300 new jobs during construction and an estimated permanent 18,000 new jobs after completion, adding $27.3 billion in personal income and $78 billion in economic output to the regional economy over the next 30 years.

The study, prepared by the Boston-based Economic Development Research Group, said the region will also benefit by improved interstate access to nearby markets like Indianapolis, Lexington, Ky., and Columbus and Cincinnati, Ohio.

River Ridge Commerce Center will be a major beneficiary, said Executive Director Jerry Acy. “Over the years, we’ve missed numerous projects because of transportation issues,” he said. “With the new bridges, River Ridge will be poised for tremendous growth.”

Acy’s team estimates that the Ohio River Bridges Project will lead to the development of an additional 2 million square feet of new space per year.

“On a regional basis, the reality is there are no huge tracts of land available in close proximity to downtown Louisville,” he said.

“It’s just a given that we will get a lot more looks from a lot more businesses.”

Acy said River Ridge has been in discussions with industries interested in locating at the site, including food production, fabricated metals, machinery manufacturing, automotive suppliers and delivery and warehouse-based businesses.

That’s good news for the Port of Indiana-Jeffersonville, said Port Director Scott Stewart.

“Interstate access plays a critical role in port development,” he said. “Our port companies depend on efficient connections to truck, rail and barge transportation, and the East End Crossing creates significant competitive advantages for all by step-changing the area’s highway access, opening up new markets for local business.”

While the port handles approximately 800 barges, 15,000

railcars and 220,000 trucks per year for 30 onsite companies, it has plenty of capacity for more. The port has more than 300 acres available for development, but the largest contiguous parcels are only 140 acres and 65 acres, which could be a limiting factor in trying to attract major industrial projects to the region. However, the port’s close proximity to River Ridge’s 6,000-acre industrial park creates a natural partnership that will be strengthened by the East End Crossing running between them.

Currently, there are 15 steel-related companies at the Port of Indiana-Jeffersonville that provide a range of complimentary services for Honda, Ford, General Electric and other similar businesses. These port companies benefit from connections to barge and rail transportation, as well as heavy-haul, no-weight-limit roads throughout the port that help them create additional synergies with their steel campus neighbors.

“This port has become a one-stop shop for steel customers,” Stewart said. “The new bridge will create opportunities for attracting more companies that will utilize River Ridge’s land and the port’s river access. Strengthening connections between the two facilities can create opportunities for future development that neither facility could attract alone, especially in the automotive and appliance industries.”

When I-265 was first connected to the port in the early 90s, the port had only four tenants. Ten years later the port was home to 26 companies, employing nearly 1,500 people.

Today, the Port of Indiana-Jeffersonville generates $1.3 billion in economic activity per year and supports more than 12,000 direct and indirect jobs.

“Transportation access is a cornerstone of economic growth,” Stewart said. “When these bridges open to traffic, the Southern Indiana/Louisville regional economy will skyrocket.

For more information on the Ohio River Bridges Project visit www.kyinbridges.com

www.portsofindiana.com · Summer 2012

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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.

Debate over Chicago locks and Asian carp is missing the boat Many officials have been calling for an immediate closure of the Chicago Area Waterways System (CAWS) in response to the threat of Asian carp entering the Great Lakes. While no one wants to see invasive species in our GUEST COLUMN lakes, closing the CAWS would not only cut off crucial barge shipments but it would also have significant environmental impacts that have gone somewhat unnoticed in this rush to do something. Any discussion about closing the CAWS and redirecting that flow into Lake Michigan should include extensive attention to environmental protection and remediation requirements beyond aquatic Kay Nelson nuisance species, but that’s where current Northwest Indiana Forum political debates have missed the boat.

Findings of Asian carp Enviornmental DNA (eDNA) near the lake continue to cause concern. Recent passage of the Federal Highway/College Student Loans bill included language requiring the U.S. Army Corps of Engineers to fast track the Great Lakes Mississippi River Interbasin Study (GLMRIS), which is exploring options for controlling the movement of more than 30 aquatic nuisance species between the two basins. What’s not making headlines is environmental concern about the discharge of Chicago’s treated wastewater and combined sewer overflows into Lake Michigan as well as the potential sediment migration.

The City of Chicago and surrounding communities rely on three major wastewater treatment plants to process an average of 1.2 billion gallons of municipal wastewater per day that is discharged into the CAWS. An estimated 400 combined sewer overflow discharge pipes empty stormwater that is combined with sanitary waste into the CAWS during rainfall events. A significant unknown is the environmental quality of the historical sediment throughout the CAWS. Whereas Congress is directing the Corps to fast track their report in an effort to move towards closure of the CAWS and reversal of the waterway flow, little or no discussion is being held on the timeline needed to address these issues.

The Great Lakes Initiative (GLI) requires that any new major discharge to the Great Lakes meet stringent standards. There is an additional requirement for new or modified discharges to prepare and submit a detailed Antidegradation Application to justify adding pollutants into a water body. There is an extensive public participation process, and the Antidegradation Application must be reviewed by U.S. EPA and approved by the state environmental agency prior to the National Pollutant Loading Discharge Elimination System (NPDES) permit issuance.

Per federal law, no construction to install technologies on Chicago’s wastewater treatment plants can begin until permits are issued. Issuance of air, water or solid waste environmental permits require public meetings, hearings and comment periods prior to issuance. In keeping with the conditions of the GLI, it is possible that an extensive review, testing and assessment of the environmental conditions created during the historical use of the CAWS would be required.

In short, closing the CAWS is not a quick fix solution that can be rushed.

Meanwhile, the Corps of Engineers identified approximately 30 potential pathways for Asian carp to migrate from inland waterways into the Great Lakes tributaries. A physical barrier was recently installed at one location in Eagle Marsh near Fort Wayne, Ind. The only other potential pathway that has a protection system in place is the CAWS, which has electric fish barriers in the water. Tracking of fish with radio transmitters has shown that electric barriers are effective – 4 million detections and not one barrier breach, according to the Corps.

As waterways throughout this country have served our needs, we have not always been aware of the need to protect those waterways as it relates to the quality of the sediment. It is imperative that we look at the bigger picture on the Asian carp issue and consider all the potential impacts of changes to the CAWS, as well as other potential pathways, in order to fully protect the Great Lakes.

Kay Nelson is the Director of Environmental Affairs for the Northwest Indiana Forum and serves on the Asian Carp Policy & Technical Workgroup.

DNR releases 70,000 brown trout at Port of Indiana-Burns Harbor natural resources departments of Indiana and Illinois to increase fishing PORTAGE, Ind. – The Indiana Department of Natural Resources opportunities on Lake Michigan. released 70,000 young brown trout into Lake Michigan in April at the “We began stocking brown trout Port of Indiana-Burns Harbor. with Illinois’ cooperation in 2002 at According to Brian Breidert, the request of our angling community fisheries research biologist with the after a review of our Lake Michigan Indiana Department of Natural program,” Breidert said. “This stocking Resources, the 3.5-inch fingerlings at the port will be the third time we have a better chance to avoid predators have released there.” in the protected area within the port Previous port stockings were before they move out into the lake.

“Brown trout are a species that Brown trout fingerlings are pumped into harbor from fish carrier truck at in 2008 and 2009. Other stocking locations in the past 11 years have been utilizes the near-shore forage and can the Port of Indiana-Burns Harbor.

Michigan City (four times), Whiting tolerate warmer water temperatures,” (three), and Buffington Harbor near Gary (once).

Breidert said.

The fish will grow to a harvestable size of 14 to 20 inches in The brown trout were brought from the Jake Wolf Hatchery approximately two to three years, Breidert said. in Topeka, Ill., as part of an ongoing cooperative effort between the 10 Summer 2012 · PORTSIDE MAGAZINE

PORT REPORT - BURNS HARBOR World’s Largest The world’s largest conventional crawler crane, the LR 13000, was unloaded in 190 pieces at the Port of Indiana-Burns Harbor in July.

The LR 13000, shown lifting three cranes at the Liebherr-Werk Ehingen GmbH facility in Germany. (Photo provided by Liebherr Cranes Inc.)

Port handles world’s largest crawler crane PORTAGE, Ind. - We see a lot of big a process that is expected to take six weeks.

PORT REPORT cargoes come through the Port of IndianaMammoet, an international specialist in Burns Harbor. However, when something is heavy-lifting and transportation, is setting up Column by the “world’s largest,” it seems to get a little the equipment at the refinery site.

Anthony Kuk extra attention. This July, the port handled Through the years, the port has become Port Director the world’s largest conventional crawler a major hub for dimensional and mega crane. The crane arrived on the ocean vessel project cargo shipments. Our facilities and Contact Info: (219) 787-5101 “Elandsgracht” in 190 pieces, taking a week location allow companies to ship cargoes by akuk@portsofindiana.com to unload. This LR 13000 model crane is the water directly into the Midwest, which can first of its kind and was built by Liebherrsignificantly reduce the transportation costs Werk Ehingen GmbH in Ehingen, Germany. and permitting requirements for moving It is being transported from the port to large loads over the highway. Because of the Whiting, Ind., by truck for use in the expansion of the BP Whiting experience of our labor force and FMT this port has developed an Refinery. enviable track record for handling large cargoes and established a When fully assembled, the crane weighs 1.65 million pounds, world-wide reputation as a port-of-choice for specialty shipments. has a lifting capacity of 3,000 tons and stands 473 feet tall with its This crane was not the first piece of equipment for the BP boom fully extended. Crawler cranes have continuous tracks, like modernization project to cross the port’s docks. Construction on the army tanks, allowing them to move while lifting heavy equipment. project started in May 2008, and in that time we’ve handled many This convenient feature adds significant weight, making them pipes, tubes and structures, including building-sized tanks which were difficult to transport. some of the biggest single pieces of project cargo in the port’s history.

The LR 13000 was shipped from Westdorpe, Netherlands, BP estimates that more than 8,000 contractors have been working on the MV Elandsgracht through agent World Shipping. Federal on their facility this summer, which is more than the population Marine Terminals (FMT), our terminal operator, unloaded the of Whiting. When the project is complete in 2013, they will have crane components over a period of eight days with workers from installed 380 miles of pipe, 1,200 pieces of major equipment, 600 the International Longshoremen’s Association and the International shop-fabricated modules and 50,000 tons of steel.

Union of Operating Engineers. The port will be used as a staging area for the crane parts, which will be trucked to Whiting as needed, For more information on Liebherr Cranes, visit www.liebherr.us. www.portsofindiana.com · Summer 2012 11

PORT REPORT - MOUNT VERNON 50 years Mount Vernon Barge Service celebrates its 50th anniversary in 2012. Here one of the company’s 11 tow boats assists the World War II tank-landing ship “USS LST-325.”

Mount Vernon Barge Service recently added a new Sennebogen 870 crane at the Port of Indiana-Mount Vernon. The company provides stevedoring services for dry bulk cargo such as grain, coal and fertilizer.

Mount Vernon Barge Service celebrates 50 years MOUNT VERNON, Ind. – When the from 38 employees to over 130.

PORT REPORT late Art “Junior” Bayer founded Mount Today, Mount Vernon Barge has secure Vernon Barge Service in 1962, he didn’t fleeting for up to 450 barges at the port. The Column by even have a boat. At first, he partnered with company also provides stevedoring services Randy Kennedy brothers Jim and George Nesbitt to start the for dry bulk cargo, using three 100-ton cranes Operations Manager operation, but a short time later, they parted to load and unload cargoes such as grain, Contact Info: ways. Art ended up re-mortgaging his house coal and fertilizer. The company also recently (812) 833-2168 to buy out their share of the company. acquired a new Sennebogen 870 crane which rkennedy@portsofindiana.com “I had a half interest in nothing and will increase cargo-handling opportunities they had a quarter interest,” he used to joke. and efficiencies at the Port of Indiana-Mount Despite the humble start, Mount Vernon.

Vernon Barge celebrated its 50th anniversary earlier this year and For more information on Mount Vernon Barge Service, visit Mount Vernon Mayor John Tucker proclaimed the date “Mount www.mvbarge.com.

Vernon Barge Day.” Art played a huge role in bringing the port to his hometown and Mount Vernon Barge became our first service tenant when it moved here in 1977. The company celebrates its 50th anniversary just two years after he passed away. I know Art would be very proud of the Crop Production Services (CPS) promoted Jeff company he started and what it has contributed to the Mount Rhein to the position of terminal manager in Vernon area.

March. Jeff will oversee daily operations of the port This year also marks five years the company has been under the facility, which receives dry and liquid fertilizers by leadership of TPG Enterprises. TPG President Don Miller and Art barge and rail for distribution to southwestern became friends before the business exchanged hands in 2007. Art Indiana, southern Illinois and western Kentucky. continued to keep an office at the facility and served as a consultant Jeff lives in New Haven, Ill., with his wife Teresa after handing over the reins. and has two grown sons, Cody and Jeremy. Prior Jeff Rhein In the last five years, the company has continued to expand, to joining CPS in 2011, he was an owner-operator Crop Production Services growing from one location to four, from four tow boats to 11, and of his own trucking company.

CPS names new facility manager

12 Summer 2012 · PORTSIDE MAGAZINE

PORT REPORT - JEFFERSONVILLE Strategic connections Metals USA’s Ohio River Metals Services facility at the Port of Indiana-Jeffersonville produces steel coils. The company has two steel facilities at the port.

Chuck Moore Metals USA

Metals USA expands operations through port synergies original equipment manufacturers in several JEFFERSONVILLE, Ind. – With two PORT REPORT end markets. facilities located at the Port of IndianaThis geographically diverse network Jeffersonville, Metals USA is well aware of Column by allows Metals USA to work closely with its the competitive advantages that come with Scott Stewart customers to facilitate efficient and costoperating steel processing centers at a port that Port Director effective inventory management. Having a doubles as a steel campus. Looking to further Contact Info: wide range of value-added metal processing build on the port’s transportation advantages (812) 283-9662 services allows Metals USA to meet customer and industrial synergies, the long-time port sstewart@portsofindiana.com needs with intermediate processing already company purchased Eagle Steel’s port facility complete. Its products are used in various “Ohio River Metals Services” in December industries, including land and marine 2010. But that’s hardly the extent of this transportation, energy, aerospace, defense, electrical and appliance company’s recent growth.

Metals USA Holdings Corp. is one of the largest metal service manufacturing, fabrication, furniture, commercial construction and center businesses in North America and a leading provider of value- machinery.

Metals USA operates in three groups: added metal processing of carbon steel, stainless steel, aluminum, red • The Plates and Shapes Group processes and sells steel plates metals and manufactured metal components. Since early 2010, Metals USA has acquired four businesses with 14 steel processing facilities from and structural beams, bars, angles and tubes through 19 full-line metal service centers located primarily in the South and East.

Texas to Connecticut.

• The Flat Rolled and Non-Ferrous Group processes and sells Chuck Moore is the president of Ohio River Metal Services and general manager for both Metals USA operations in the Port of flat rolled carbon and stainless steel, aluminum, brass and copper in Jeffersonville-Indiana. Moore says it’s no mistake that the company’s a number of alloy grades and sizes through 28 metal service centers national network of service center facilities is located close to our located primarily in the Midwest and South.

• The Building Products Group manufactures and sells roofing and suppliers and customers in key geographic end markets. Between the two port facilities, their supply chain can ship both coils and cut-lengths patio products for distributors and contractors engaged in residential remodeling. of traditional flat-rolled steel products.

Bolstered by two strategically connected operations at the port, The company’s other recent acquisitions included: • J. Rubin & Co. (June 2010), a metal service center with four the future looks particularly promising for Metals USA’s network of facilities in the upper Midwest producing carbon steel bars, carbon plate businesses. Since its early days, the port has been the epicenter of the automotive and appliance industries because of the confluence of the and laser-cut flat-rolled products; • The Richardson Trident Company (March 2011), a metal service Ohio River and three major interstates. The construction of a new East center with eight facilities, primarily in Texas and Oklahoma, that End Bridge, beginning in 2013, will bring greater opportunities for process aluminum, stainless steel, and nickel for the oil and gas industry. Metals USA and other companies on the port’s steel campus to provide • Gregor Technologies (March 2012), located in Torrington, faster and more cost-effective service to the region’s major manufacturers, Connecticut, which provides custom-crafted parts and assemblies to including the likes of Ford Motor Co. and General Electric.

www.portsofindiana.com · Summer 2012 13

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

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 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 Phoenix Services 1190 E. Loop Road Portage, IN 46368 219.787.0010 Aggregate producer/steel

Port of Indiana Jeffersonville

2751 Bluff Road Mount Vernon, IN 46720 812-838-4382

6625 S. Boundary Drive Portage, IN 46368 219-787-8636

inventory management

Listed below are companies with facilities and services at Indiana’s three ports Port of Indiana Mount Vernon

Port of Indiana Burns Harbor

ADS Logistics Roll & Hold Division 725 George Nelson Drive Portage, IN 46368 219-787-5015 Transportation, warehousing,

DIRECTORY

mill services

P.I. & I. Motor Express 1005 Sun Drive Portage, IN 46368 219-850-1274 Flat bed trucking Precision Strip Inc. 6720 Waterway Drive Portage, Indiana 46368 219-787-1602 Steel coil processing Ratner Steel Supply 2500 W. Co. Road B Roseville, MN 55113 651-631-8515 Steel producer 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

14 Summer 2012 · PORTSIDE MAGAZINE

5100 Port Road Jeffersonville, IN 47130 812-283-9662

Agrium U.S. Inc. 2501 Bluff Road Mount Vernon, IN 47620 812-838-9779 Fertilizer distribution

Airgas Specialty Products 5142 Port Road Jeffersonville, IN 47130 812-283-6932 Chemical mfg. and distribution

Legacy Supply Chain Services 1251 Port Road Jeffersonville, IN 47130 812-280-5850 Distribution and warehousing

Aventine Renewable Energy 7201 Port Road Mount Vernon, IN 47620 812-838-9840 Ethanol production

Arctic Minerals 5140 Maritime Road Jeffersonville, IN 46130 812-283-6616 Mineral processing and distribution

Metals USA 702 Port Road Jeffersonville, IN 47130 812-288-8906 Metals processing, distribution

CEMEX/Kosmos Cement 3301 Port East-West Road 570 Mount Vernon, IN 47620 812-838-3465 Cement distribution

Chemtrusion Inc. 1403 Port Road Jeffersonville, IN 47130 812-280-2910 Plastic resin processing

MG Rail 5130 Port Road Jeffersonville, IN 47130 812-218-1137 Rail services

CIMBAR Performance Minerals 2700 Bluff Road Mount Vernon, IN 47620 812-838-5236 Minerals processing

Consolidated Grain & Barge Co. 5130 Port Road Jeffersonville, IN 47130 812-283-9500 Grain terminal, bulk stevedore,

Mytex Polymers Inc. 1403 Port Road Jeffersonville, IN 47130 812-280-2900 Plastic resin distribution

Consolidated Grain & Barge Co. Merchandising Division 2801 Bluff Road Mount Vernon, IN 47620 812-833-3214 Grain terminal Consolidated Grain & Barge Co. Soybean Processing Division P.O. Box 547 Mount Vernon, IN 47620 812-833-3214 Soybean processing plant Consolidated Terminals & Logistics Co. P.O. Box 547 Mount Vernon, IN 47620 812-833-3208 General cargo stevedoring,

rail-tobarge bulk terminal and logistics

Crop Production Services 2900 Bluff Road Mount Vernon, IN 47620 812-838-4533 Fertilizer storage Evansville Western Railway 724 W. 3rd St. Mount Vernon, IN 47620 866-812-3897 Full-service railroad Mead Johnson Nutrition/Kenco Logistic Services 3101 Highway 62 East Mount Vernon, IN 47620 812-833-3416 Distribution and warehousing Mount Vernon Transfer Terminal 3300 Bluff Road Mount Vernon, IN 47620 812-838-5532 Coal transloading to barge TPG Mount Vernon Marine Mount Vernon Barge Service P.O. Box 607 Mount Vernon, IN 47620 812-838-4889 Towing, fleeting, barge cleaning/ repair, stevedoring Tri-County Agronomics 1711 Bluff Road Mount Vernon, IN 47620 812-838-1755 Liquid fertilizer, pesticide and herbicide distribution

logistical services

Consolidated Terminals & Logistics Co. 5143 Port Road Jeffersonville, IN 47130 812-283-9500 General cargo stevedoring

Nova Tube Indiana 1195 Port Road Jeffersonville, IN 47130 812-285-9796 Steel tube manufacturing and

logistics

Crominet 5147 Loop Road Jeffersonville, IN 47130 812-284-4448 Stainless steel scrap processing Cylicron Engineered Cylinders 5171 Maritime Road Jeffersonville, IN 47130 812-283-4600 Industrial cylinder mfg.

FedEx Ground 5153 Maritime Road Jeffersonville, IN 47130 812-218-0781 Parcel distribution logistics Green Lines Transportation Inc. 702 Port Road Jeffersonville, IN 47130 812-258-3515 Transportation, common carrier Idemitsu Lubricants America Corp.

701 Port Road Jeffersonville, IN 47130 812-284-3300 Lubrication for auto industry Jeffersonville River Terminal 5130 Port Road Jeffersonville, IN 47130 812-282-0471 Steel galvanizing Kasle Metal Processing 5146 Maritime Road Jeffersonville, IN 47130 812-280-8800 Metal Processing Kinder Morgan 5146 Loop Road Jeffersonville, IN 47130 812-282-4938 Warehousing, stevedoring, logistics

Kloeckner Metals 5150 Maritime Road Jeffersonville, IN 47130 812-284-4141 Steel warehousing and distribution

Ohio River Metal Services/Eagle Steel Products 5150 Loop Road Jeffersonville, IN 47130 812-282-4770 Steel processing and distributor OmniSource – A division of Steel Dynamics Inc. 5134 Loop Road Jeffersonville, IN 47130 812-280-2268 Scrap metal processing Revere Plastic Systems 5171 Maritime Road Jeffersonville, IN 47130 419.603.2483 Plastic injection molding Roll Forming Corp. Indiana 1205 N. Access Road Jeffersonville, IN 47130 812-284-0650 Roll-forming of steel components, structural tubes Steel Dynamics Inc. 5134 Loop Road Jeffersonville, IN 47130 812-218-1490 Steel coils galvanizing Tanco Clark Maritime 5144 Utica Pike Jeffersonville, IN 47130 812-280-7300 Liquid storage, handling Valmont Industries Inc. 1117 Brown Forman Road Jeffersonville, IN 47130 812-284-5241 Steel galvanizing Voss/Clark Industries 701 Loop Road Jeffersonville, IN 47130 812-283-7700 Steel processing and distributor

3 PORTS - 2 WATERWAYS - 1 SYSTEM

Connecting the World to America’s Heartland

Burns Harbor Jeffersonville Mount Vernon

www.portsofindiana.com

www.portsofindiana.com · Summer 2012 15

PORTS OF INDIANA 150 W. Market St., Ste. 100 Indianapolis, IN 46204

Summer 2012 路 PORTSIDE MAGAZINE