Portside Magazine - Winter 2013

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

A Ports of Indiana Publication · Winter 2013

Indiana’s Ports

An inside look at North America’s premier inland port system

Inside this Issue:

• New leadership takes over the helm at Port of Indiana-Burns Harbor • Burns Harbor: NLMK Indiana sets steel production records • Jeffersonville: Port acquires two facilities for future development Winter 2013 · PORTSIDE MAGAZINE 130217-POI_Portside-cs4_FINAL APPROVED.indd 1-1

www.portsofindiana.com · Winter 2013 2/17/13 12:04 AM

Table of Contents From the CEO ....................................................................................................... 4 2012 Year in Review: ‘Tons’ of success 150 W. Market St., Ste. 100, Indianapolis, IN 46204 317-232-9200 | www.portsofindiana.com

NEWS & NOTES Commission approves purchase of buildings, infrastructure improvements .............…... 5 New leadership takes over the helm at Port of Indiana-Burns Harbor ............................ 5 Ports welcome new general counsel Peacock named vice president Staff celebrate milestones Feature STORY .................................................................................................. 6-8 Indiana’s Ports: An inside look at North America’s premier inland port system Port Reports P Burns Harbor: NLMK Indiana sets steel production records ……................................... 9 Mount Vernon: Port provides intermodal advantages .................................…............ 10 Jeffersonville: Port acquires two facilities for future development ……........................ 11

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.”

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

Winter 2013 · PORTSIDE MAGAZINE 130217-POI_Portside-cs4_FINAL APPROVED.indd 2-3

www.portsofindiana.com · Winter 2013

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2/17/13 12:04 AM

Table of Contents From the CEO ....................................................................................................... 4 2012 Year in Review: ‘Tons’ of success 150 W. Market St., Ste. 100, Indianapolis, IN 46204 317-232-9200 | www.portsofindiana.com

NEWS & NOTES Commission approves purchase of buildings, infrastructure improvements .............…... 5 New leadership takes over the helm at Port of Indiana-Burns Harbor ............................ 5 Ports welcome new general counsel Peacock named vice president Staff celebrate milestones Feature STORY .................................................................................................. 6-8 Indiana’s Ports: An inside look at North America’s premier inland port system Port Reports P Burns Harbor: NLMK Indiana sets steel production records ……................................... 9 Mount Vernon: Port provides intermodal advantages .................................…............ 10 Jeffersonville: Port acquires two facilities for future development ……........................ 11

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.”

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

Winter 2013 · PORTSIDE MAGAZINE 130217-POI_Portside-cs4_FINAL APPROVED.indd 2-3

www.portsofindiana.com · Winter 2013

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2/17/13 12:04 AM

FROM THE CEO

Rich Cooper

Chief Executive Officer, Ports of Indiana

Ports of Indiana – 2012 Highlights: • New Economic Impact Study shows Indiana’s ports contribute $6 billion to state economy each year and create 51,000 jobs; both were 18 percent increases from 2009.

• Received ninth international shipping award for increasing overseas shipments.

• Invested $3 million in infrastructure improvements at all three ports.

• Increased shipments of steel, soy products, minerals, cement and fertilizer.

• Celebrated the arrival of three new companies and expansions of several existing facilities.

• Added 112 acres of land at Mount Vernon and two new parcels at Jeffersonville to create new development sites.

• Handled the ocean shipment of the world’s largest crawler crane for BP. • Received four international awards from the American Association of Port Authorities for communications projects.

• Added five exceptional employees to our team – Rick Heimann, Burns Harbor port director; Sebastian Smelko, general counsel; Ed Hamilton, engineer; Nick Szymarek, Burns Harbor operations manager and Sarah Rubin, public affairs and project manager.

4

Winter Winter 2013 2013 ·· PORTSIDE PORTSIDE MAGAZINE MAGAZINE

130217-POI_Portside-cs4_FINAL APPROVED.indd 4-5

2012 Year in Review: ‘Tons’ of success Prior to joining the Ports of Indiana, I spent the first 30-plus years of my career in international agribusiness where hardly anything else matters other than “tons.” Tons were ‘King.’ No matter what kind of manager you were, how hard you worked, how well you did managing a capital budget or an operating budget, success was predominantly measured by the number of tons you processed, manufactured or sold.

However, there are those tons that are regarded more like a ‘commodity’ which have a lower value, and conversely, there are tons that have a value-added component which make them worth more. Those ‘value-added tons’ can significantly influence revenue even when you have fewer tons. The principle “not all tons are created equal” certainly applies when you’re producing, selling, handling or storing just about any product that someone else is willing to buy.

So, what does all of this have to do with the year we just finished at the Ports of Indiana? The simple answer is – ‘plenty.’ There have been very few times in my 40-year career when I have seen such a big shift from ‘commodity-type’ tons to higher-value tons. How many tons? In 2012, our three ports handled about one million tons less than they did in 2011 – a decrease of 14.3 percent… but who’s counting? You can bet your bottom dollar that we are, and so are our port business partners who depend on those tons to make their budgets and meet their owners’ expectations. Despite the significant tonnage drop, 2012 still proved to be a huge success at the Ports of Indiana (read on).

Where did all the tons go? You don’t have to read the newspaper daily or look too far to understand what happened in 2012 to those tons. As a result of a mild winter, escalating coal stockpiles and new found cheap sources of gas, coal shipments dropped by a little over a million tons. The road salt that we handle at our ports died the same death due to a very mild winter that resulted in 130,000 fewer tons.

To compound matters, we experienced the worst drought most of us can ever remember that impacted grain and soybean tonnage. The drought impacted corn yields and drove corn prices to $8/bushel, which caused a significant number of ethanol plants around the country to suspend production. The 110-million gallon ethanol plant at our port in Mount Vernon was one of those; we handled over 300,000 fewer tons of ethanol and DDGs in 2012 than we did the previous year.

We were fortunate, however, that these bulk material losses were partially offset by significant increases in our steel, fertilizer, cement and mineral businesses.

I think you can see that several external business factors greatly impaired our volumes in 2012. Through no fault of their own, those companies who handled all these tons in past years were on the receiving end of one of the worst hands ever dealt in port poker history. Remember what I said earlier, “not all tons are created equal?” We were very fortunate that has never been truer than in 2012. As a result, the Ports of Indiana was able to offset about 400,000 tons of volume losses with higher value materials like steel and project cargoes.

The lifeblood of any organization is new distribution and that was the single biggest factor that offset lost tonnage this past year. New companies at our ports like Ratner Steel, Phoenix Services and P.I.&I. Motor Express, coupled with several plant expansions, became new and welcomed contributors of tons and new revenues. As a result, 2012 was a record year in terms of business results for the Ports of Indiana.

As we put 2012 behind us and look forward to a new year, we owe an enormous amount of gratitude to our business partners who call the Ports of Indiana ‘home.’

Our success is synonymous with their success. We are also very grateful to our board and the local, state and federal officials who provide so much support in so many ways to the Ports of Indiana. These partnerships truly make the Ports of Indiana one of our state’s most dynamic economic engines.

NEWS & NOTES

Commission approves purchase of buildings, infrastructure improvements INDIANAPOLIS – The Ports of Indiana Commission approved the purchase of two Jeffersonville buildings and infrastructure improvements at Burns Harbor during its final meeting of 2012.

On Dec. 13, the commission conducted its year-end meeting and elected officers for 2013, with the leadership remaining unchanged: Chairman Ken Kaczmarek, Vice Chairman Greg Gibson, Secretary/ Treasurer Jay Potesta and Assistant Secretary Laurie Peckham.

In other business, the commission finalized the purchase of two facilities at the Port of Indiana-Jeffersonville from former tenants Vitran Express and Interstate Structures. The facilities and

accompanying acreage make both prime sites for future development within the port. The commission also updated key utility easements to accommodate future growth in Jeffersonville and Mount Vernon.

At the Port of Indiana-Burns Harbor, the commission approved new infrastructure contracts for repaving and restructuring of rail siding between Sheds #1 and #2, as well as the installation of fulldepth asphalt on Berth 16 and a roadway connecting the berth to the port’s 57-acre industrial site.

For more information and future meeting dates, please visit www.portsofindiana.com.

New leadership takes over the helm at Port of Indiana-Burns Harbor PORTAGE, Ind. – The Ports of Indiana has named Rick Heimann as the new port director for the Port of Indiana-Burns Harbor effective Jan. 16. Heimann recently served as a transportation manager for ArcelorMittal USA in East Chicago.

“We are pleased to have someone of Rick’s caliber lead our port,” said Rich Cooper, CEO of the Ports of Indiana. “His leadership Rick Heimann became port director at the and experience in supply chain Port of Indiana-Burns Harbor on Jan. 16. management, especially rail and water, will be invaluable to our team.”

In his role with the procurement and supply chain department at ArcelorMittal USA, Heimann was primarily focused on coordinating rail and water transportation for the world’s largest steel producer.

“The opportunity to lead the Port of Indiana-Burns Harbor is an exciting endeavor,” said Heimann. “The customer base, the synergies they provide and the logistical capabilities of the port, including access to rail, water and roads, provide anyone using the port with a strong competitive advantage. I look forward to meeting existing port customers to learn how we can help them further improve their business while identifying new opportunities that will insure the growth of one of the most significant ports on the Great Lakes.”

Prior to joining ArcelorMittal USA, Heimann served as transportation manager for AK Steel and the sales manager for a barge line, The Ohio River Co. He holds a bachelor’s degree in business administration from St. Joseph’s College and an MBA from Xavier University. Heimann and his wife Debbie live in Schererville, Ind. They have three grown children. He enjoys golf, hunting and cooking.

Ports welcome new general counsel

J. Sebastian Smelko has been named general counsel for the Ports of Indiana. Smelko previously served as the assistant general counsel and policy director for Governor Mitch Daniels.

“Sebastian’s experience in handling a wide range of legal issues will be extremely beneficial to our organization and the companies at our ports,” said CEO Rich Cooper. “Having reviewed many Sebastian Smelko port-related projects in his previous role allowed General Counsel him to step right in and make an immediate contribution to our team.”

Smelko holds a law degree from Valparaiso University and an undergraduate degree from Carnegie Mellon University. As part of the senior management team, he will oversee legal matters for all three locations and provide a valuable resource for companies looking to

develop and grow business at Indiana’s ports.

Smelko and his wife Heather live in Indianapolis with their two Maine Coon cats, Teddy and Dutch. Smelko enjoys college football, staying physically active and finding great places to eat with his wife.

Peacock named vice president

After serving 12 years as a senior manager with the Ports of Indiana, Jody Peacock has been promoted to the position of vice president.

In his new role, Peacock will continue to direct the organization’s corporate affairs, including communications, publications, legislative, IT, corporate customer relations, and public relations matters.

Jody Peacock He will also take on new responsibilities in Vice President marketing, business development and strategic planning for the state’s three ports on the Ohio River and Lake Michigan, as well as for the organization’s statewide financing and foreign-trade zone programs.

Staff celebrate milestones

Two employees recently achieved significant milestones in their employment with the Ports of Indiana.

Project Coordinator Rodney Gross marked 25 years at the Port of Indiana-Jeffersonville. A native of Salem, Ind., Gross joined the organization in 1988 but his connection with the port started well before it opened in 1985 – he previously worked Rodney Gross with the engineering firm that designed the roads Jeffersonville and railroads for the Jeffersonville port and served 25 years as an inspector on the construction of the Ohio River Metals Services facility.

Married 33 years to his wife Lin, he has a son, stepdaughter and three grandchildren. He enjoys the great outdoors and assisting his elderly neighbors with projects around the house.

Liz Folkerts, communications specialist, recently celebrated five years as part of the Indianapolis office. Folkerts is a graduate of Ball State University with a dual degree in journalism and public relations. She previously worked in the marketing department of the Conner Prairie Interactive History Park in Fishers, Ind. A self-proclaimed “foodie,” Folkerts enjoys cooking and baking. She and husband Adam also Liz Folkerts celebrated the birth of their first child in 2012 as Indianapolis Graham arrived in May. 5 years www.portsofindiana.com · Winter 2013

5

2/17/13 12:04 AM

FROM THE CEO

Rich Cooper

Chief Executive Officer, Ports of Indiana

Ports of Indiana – 2012 Highlights: • New Economic Impact Study shows Indiana’s ports contribute $6 billion to state economy each year and create 51,000 jobs; both were 18 percent increases from 2009.

• Received ninth international shipping award for increasing overseas shipments.

• Invested $3 million in infrastructure improvements at all three ports.

• Increased shipments of steel, soy products, minerals, cement and fertilizer.

• Celebrated the arrival of three new companies and expansions of several existing facilities.

• Added 112 acres of land at Mount Vernon and two new parcels at Jeffersonville to create new development sites.

• Handled the ocean shipment of the world’s largest crawler crane for BP. • Received four international awards from the American Association of Port Authorities for communications projects.

• Added five exceptional employees to our team – Rick Heimann, Burns Harbor port director; Sebastian Smelko, general counsel; Ed Hamilton, engineer; Nick Szymarek, Burns Harbor operations manager and Sarah Rubin, public affairs and project manager.

4

Winter Winter 2013 2013 ·· PORTSIDE PORTSIDE MAGAZINE MAGAZINE

130217-POI_Portside-cs4_FINAL APPROVED.indd 4-5

2012 Year in Review: ‘Tons’ of success Prior to joining the Ports of Indiana, I spent the first 30-plus years of my career in international agribusiness where hardly anything else matters other than “tons.” Tons were ‘King.’ No matter what kind of manager you were, how hard you worked, how well you did managing a capital budget or an operating budget, success was predominantly measured by the number of tons you processed, manufactured or sold.

However, there are those tons that are regarded more like a ‘commodity’ which have a lower value, and conversely, there are tons that have a value-added component which make them worth more. Those ‘value-added tons’ can significantly influence revenue even when you have fewer tons. The principle “not all tons are created equal” certainly applies when you’re producing, selling, handling or storing just about any product that someone else is willing to buy.

So, what does all of this have to do with the year we just finished at the Ports of Indiana? The simple answer is – ‘plenty.’ There have been very few times in my 40-year career when I have seen such a big shift from ‘commodity-type’ tons to higher-value tons. How many tons? In 2012, our three ports handled about one million tons less than they did in 2011 – a decrease of 14.3 percent… but who’s counting? You can bet your bottom dollar that we are, and so are our port business partners who depend on those tons to make their budgets and meet their owners’ expectations. Despite the significant tonnage drop, 2012 still proved to be a huge success at the Ports of Indiana (read on).

Where did all the tons go? You don’t have to read the newspaper daily or look too far to understand what happened in 2012 to those tons. As a result of a mild winter, escalating coal stockpiles and new found cheap sources of gas, coal shipments dropped by a little over a million tons. The road salt that we handle at our ports died the same death due to a very mild winter that resulted in 130,000 fewer tons.

To compound matters, we experienced the worst drought most of us can ever remember that impacted grain and soybean tonnage. The drought impacted corn yields and drove corn prices to $8/bushel, which caused a significant number of ethanol plants around the country to suspend production. The 110-million gallon ethanol plant at our port in Mount Vernon was one of those; we handled over 300,000 fewer tons of ethanol and DDGs in 2012 than we did the previous year.

We were fortunate, however, that these bulk material losses were partially offset by significant increases in our steel, fertilizer, cement and mineral businesses.

I think you can see that several external business factors greatly impaired our volumes in 2012. Through no fault of their own, those companies who handled all these tons in past years were on the receiving end of one of the worst hands ever dealt in port poker history. Remember what I said earlier, “not all tons are created equal?” We were very fortunate that has never been truer than in 2012. As a result, the Ports of Indiana was able to offset about 400,000 tons of volume losses with higher value materials like steel and project cargoes.

The lifeblood of any organization is new distribution and that was the single biggest factor that offset lost tonnage this past year. New companies at our ports like Ratner Steel, Phoenix Services and P.I.&I. Motor Express, coupled with several plant expansions, became new and welcomed contributors of tons and new revenues. As a result, 2012 was a record year in terms of business results for the Ports of Indiana.

As we put 2012 behind us and look forward to a new year, we owe an enormous amount of gratitude to our business partners who call the Ports of Indiana ‘home.’

Our success is synonymous with their success. We are also very grateful to our board and the local, state and federal officials who provide so much support in so many ways to the Ports of Indiana. These partnerships truly make the Ports of Indiana one of our state’s most dynamic economic engines.

NEWS & NOTES

Commission approves purchase of buildings, infrastructure improvements INDIANAPOLIS – The Ports of Indiana Commission approved the purchase of two Jeffersonville buildings and infrastructure improvements at Burns Harbor during its final meeting of 2012.

On Dec. 13, the commission conducted its year-end meeting and elected officers for 2013, with the leadership remaining unchanged: Chairman Ken Kaczmarek, Vice Chairman Greg Gibson, Secretary/ Treasurer Jay Potesta and Assistant Secretary Laurie Peckham.

In other business, the commission finalized the purchase of two facilities at the Port of Indiana-Jeffersonville from former tenants Vitran Express and Interstate Structures. The facilities and

accompanying acreage make both prime sites for future development within the port. The commission also updated key utility easements to accommodate future growth in Jeffersonville and Mount Vernon.

At the Port of Indiana-Burns Harbor, the commission approved new infrastructure contracts for repaving and restructuring of rail siding between Sheds #1 and #2, as well as the installation of fulldepth asphalt on Berth 16 and a roadway connecting the berth to the port’s 57-acre industrial site.

For more information and future meeting dates, please visit www.portsofindiana.com.

New leadership takes over the helm at Port of Indiana-Burns Harbor PORTAGE, Ind. – The Ports of Indiana has named Rick Heimann as the new port director for the Port of Indiana-Burns Harbor effective Jan. 16. Heimann recently served as a transportation manager for ArcelorMittal USA in East Chicago.

“We are pleased to have someone of Rick’s caliber lead our port,” said Rich Cooper, CEO of the Ports of Indiana. “His leadership Rick Heimann became port director at the and experience in supply chain Port of Indiana-Burns Harbor on Jan. 16. management, especially rail and water, will be invaluable to our team.”

In his role with the procurement and supply chain department at ArcelorMittal USA, Heimann was primarily focused on coordinating rail and water transportation for the world’s largest steel producer.

“The opportunity to lead the Port of Indiana-Burns Harbor is an exciting endeavor,” said Heimann. “The customer base, the synergies they provide and the logistical capabilities of the port, including access to rail, water and roads, provide anyone using the port with a strong competitive advantage. I look forward to meeting existing port customers to learn how we can help them further improve their business while identifying new opportunities that will insure the growth of one of the most significant ports on the Great Lakes.”

Prior to joining ArcelorMittal USA, Heimann served as transportation manager for AK Steel and the sales manager for a barge line, The Ohio River Co. He holds a bachelor’s degree in business administration from St. Joseph’s College and an MBA from Xavier University. Heimann and his wife Debbie live in Schererville, Ind. They have three grown children. He enjoys golf, hunting and cooking.

Ports welcome new general counsel

J. Sebastian Smelko has been named general counsel for the Ports of Indiana. Smelko previously served as the assistant general counsel and policy director for Governor Mitch Daniels.

“Sebastian’s experience in handling a wide range of legal issues will be extremely beneficial to our organization and the companies at our ports,” said CEO Rich Cooper. “Having reviewed many Sebastian Smelko port-related projects in his previous role allowed General Counsel him to step right in and make an immediate contribution to our team.”

Smelko holds a law degree from Valparaiso University and an undergraduate degree from Carnegie Mellon University. As part of the senior management team, he will oversee legal matters for all three locations and provide a valuable resource for companies looking to

develop and grow business at Indiana’s ports.

Smelko and his wife Heather live in Indianapolis with their two Maine Coon cats, Teddy and Dutch. Smelko enjoys college football, staying physically active and finding great places to eat with his wife.

Peacock named vice president

After serving 12 years as a senior manager with the Ports of Indiana, Jody Peacock has been promoted to the position of vice president.

In his new role, Peacock will continue to direct the organization’s corporate affairs, including communications, publications, legislative, IT, corporate customer relations, and public relations matters.

Jody Peacock He will also take on new responsibilities in Vice President marketing, business development and strategic planning for the state’s three ports on the Ohio River and Lake Michigan, as well as for the organization’s statewide financing and foreign-trade zone programs.

Staff celebrate milestones

Two employees recently achieved significant milestones in their employment with the Ports of Indiana.

Project Coordinator Rodney Gross marked 25 years at the Port of Indiana-Jeffersonville. A native of Salem, Ind., Gross joined the organization in 1988 but his connection with the port started well before it opened in 1985 – he previously worked Rodney Gross with the engineering firm that designed the roads Jeffersonville and railroads for the Jeffersonville port and served 25 years as an inspector on the construction of the Ohio River Metals Services facility.

Married 33 years to his wife Lin, he has a son, stepdaughter and three grandchildren. He enjoys the great outdoors and assisting his elderly neighbors with projects around the house.

Liz Folkerts, communications specialist, recently celebrated five years as part of the Indianapolis office. Folkerts is a graduate of Ball State University with a dual degree in journalism and public relations. She previously worked in the marketing department of the Conner Prairie Interactive History Park in Fishers, Ind. A self-proclaimed “foodie,” Folkerts enjoys cooking and baking. She and husband Adam also Liz Folkerts celebrated the birth of their first child in 2012 as Indianapolis Graham arrived in May. 5 years www.portsofindiana.com · Winter 2013

5

2/17/13 12:04 AM

Indiana’s Ports

Multimodal Connections Annualized cargo shipments for Indiana’s three port system • 15M tons by barge and ship • 10M tons by rail • 14M tons by truck

Michigan in 1970, followed by two on the Ohio River in 1976 and 1985.

Together they handle approximately 15 million tons of cargo shipments by barge and ship, 10 million tons by rail and 14 million by truck per year.

The state’s three-port system is comprised of 2,700 acres with

Location, Location, Location Burns Harbor

An inside look at North America’s premier inland port system Indiana has a truly unique port system. Being far removed from the oceans would generally be thought of as an obstacle for the shipping industry – but for Indiana, this is an advantage.

Approximately 57 percent of the state’s boundary is water with Lake Michigan to the north and the Ohio River to the south.

Indiana has three public ports located on the country’s two major inland waterways, which provide direct routes for maritime shipments to float right in and out of America’s Heartland.

Indiana proudly claims the moniker “Crossroads of America” because of its extensive highway system that allows businesses to reach 80 percent of the U.S. population within a one-day’s drive.

Combine this with one of the most extensive rail networks in the country, the largest steel producing region in North America, and thriving manufacturing and agriculture bases – then it becomes clearly evident how a port system could be so successful 600 miles from an ocean.

Indiana ranks 14th in the country for total waterborne shipments and 8th in domestic shipments moving to and from terminals throughout the state’s more than 400 miles of navigable waterways.

Indiana’s three public ports share another unique operational advantage because they are managed by a single statewide entity, which differs from many states where ports are managed through cities or counties that vigorously compete for business within the same state.

The Ports of Indiana is a self-funded, quasi-governmental enterprise that operates a statewide system of ports, foreign-trade zones and economic development programs under the authority of a seven-member bipartisan board of commissioners appointed by the governor. The commissioners serve staggered four-year terms and function much like a board of directors for a private-sector corporation.

The organization was created by the state legislature in 1961 as “a body both corporate and politic” with the directive to “construct, maintain, and operate... public ports with terminal facilities and traffic exchange points throughout Indiana for all forms of transportation...”

The organization’s powers are not limited to ports and may be exercised throughout the state for projects that “enhance, foster, aid, provide, or promote economic development, public-private 6

Winter 2013 · PORTSIDE MAGAZINE

130217-POI_Portside-cs4_FINAL APPROVED.indd 6-7

The Port of Indiana-Burns Harbor is a gateway to America’s Heartland for international shippers. Located in Portage, Ind., on the south shore of Lake Michigan, the port is 18 nautical miles from Chicago and handles international ships via the St. Lawrence Seaway connecting the Great Lakes to the Atlantic Ocean and barges via the Inland River System, which links to 38 states and the Gulf of Mexico.

The port consists of 600 acres with 85 acres available for development and 7,000 linear feet of dock space along Lake Michigan.

domestic and international shipments

partnerships, and other industrial, commercial, business, and transportation purposes.”

This unique structure has served Indiana well as the state’s three ports currently generate $6.4 billion in economic impact per year and over 50,000 total jobs, despite being one of the youngest port systems in the country. Indiana’s first port opened on Lake

Mount Vernon

The Port of Indiana-Mount Vernon is the eighth largest inland port in the country based on trip ton-miles and it moves more cargo by water and rail than any other port in Indiana. This Ohio River port handles three to five million tons of grain, coal, fertilizer, steel, minerals, cement and project cargo each year. Located near the median center of the U.S. population and only 153 miles from the

Midpoint of the U.S. population

Indiana ranks 14th nationally in maritime shipping

As the leading steel producing state in the U.S., Indiana’s concentration of integrated mills is located in the northwest corner of the state between East Chicago and Burns Harbor. The port is flanked by two major mills, ArcelorMittal and U.S. Steel, with three more within 20 miles and it is home to 19 steelandles ocean related tenants providing a wide range of complementary vessels via the t awrence eaway services, including processing, transportation, storage, pickling and more.

The Port of IndianaBurns Harbor provides a competitive advantage for shippers of steel, grain, dry/ liquid bulk fertilizers, project cargo, minerals and oversized equipment. The port is designated as a London Metal Exchange-approved facility and a Foreign-Trade Zone.

The location is the southernmost port on the Short Sea Shipping route with Canada and Duluth. Connections to Class I railroads, six interstates, the Great Lakes, the Inland Waterways and the Atlantic Ocean via the St. Lawrence Seaway provides port customers strategic access to domestic and international markets.

H S .L

Indiana’s three ports provide connections to Great Lakes and Ohio-Mississippi river system for

more than 500 acres available for future development. It serves the world’s most productive industrial and agricultural region through a combination of strategic location, multimodal connections and specialized facilities. Tenants benefit not only from the full services of the industrial parks but also from direct access to unparalleled multimodal transportation connection.

S

confluence of the Ohio and Mississippi rivers, this 1,000-acre port has 10 tenants and more than 500 acres of greenfield industrial sites available for development.

This multimodal port has year-round accessibility to the Gulf of Mexico through the Inland Waterway System and connections to five Class I railroads via Evansville Western Railway. Being located in the heart of the Ohio River basin allows for the efficient and costcompetitive transport of agricultural products, coal and components

Three port system with 2,700 acres

of the steel making process. The port is home to advanced-handling technology, including a 60-ton overhead crane, and has access to a 1,000-ton crane for heavy lift cargo. The port also has onsite storage facilities for general cargo and bulk commodities, and more than 50 trucking companies serve the Mount Vernon area. www.portsofindiana.com · Winter 2013

7

2/17/13 12:04 AM

Indiana’s Ports

Multimodal Connections Annualized cargo shipments for Indiana’s three port system • 15M tons by barge and ship • 10M tons by rail • 14M tons by truck

Michigan in 1970, followed by two on the Ohio River in 1976 and 1985.

Together they handle approximately 15 million tons of cargo shipments by barge and ship, 10 million tons by rail and 14 million by truck per year.

The state’s three-port system is comprised of 2,700 acres with

Location, Location, Location Burns Harbor

An inside look at North America’s premier inland port system Indiana has a truly unique port system. Being far removed from the oceans would generally be thought of as an obstacle for the shipping industry – but for Indiana, this is an advantage.

Approximately 57 percent of the state’s boundary is water with Lake Michigan to the north and the Ohio River to the south.

Indiana has three public ports located on the country’s two major inland waterways, which provide direct routes for maritime shipments to float right in and out of America’s Heartland.

Indiana proudly claims the moniker “Crossroads of America” because of its extensive highway system that allows businesses to reach 80 percent of the U.S. population within a one-day’s drive.

Combine this with one of the most extensive rail networks in the country, the largest steel producing region in North America, and thriving manufacturing and agriculture bases – then it becomes clearly evident how a port system could be so successful 600 miles from an ocean.

Indiana ranks 14th in the country for total waterborne shipments and 8th in domestic shipments moving to and from terminals throughout the state’s more than 400 miles of navigable waterways.

Indiana’s three public ports share another unique operational advantage because they are managed by a single statewide entity, which differs from many states where ports are managed through cities or counties that vigorously compete for business within the same state.

The Ports of Indiana is a self-funded, quasi-governmental enterprise that operates a statewide system of ports, foreign-trade zones and economic development programs under the authority of a seven-member bipartisan board of commissioners appointed by the governor. The commissioners serve staggered four-year terms and function much like a board of directors for a private-sector corporation.

The organization was created by the state legislature in 1961 as “a body both corporate and politic” with the directive to “construct, maintain, and operate... public ports with terminal facilities and traffic exchange points throughout Indiana for all forms of transportation...”

The organization’s powers are not limited to ports and may be exercised throughout the state for projects that “enhance, foster, aid, provide, or promote economic development, public-private 6

Winter 2013 · PORTSIDE MAGAZINE

130217-POI_Portside-cs4_FINAL APPROVED.indd 6-7

The Port of Indiana-Burns Harbor is a gateway to America’s Heartland for international shippers. Located in Portage, Ind., on the south shore of Lake Michigan, the port is 18 nautical miles from Chicago and handles international ships via the St. Lawrence Seaway connecting the Great Lakes to the Atlantic Ocean and barges via the Inland River System, which links to 38 states and the Gulf of Mexico.

The port consists of 600 acres with 85 acres available for development and 7,000 linear feet of dock space along Lake Michigan.

domestic and international shipments

partnerships, and other industrial, commercial, business, and transportation purposes.”

This unique structure has served Indiana well as the state’s three ports currently generate $6.4 billion in economic impact per year and over 50,000 total jobs, despite being one of the youngest port systems in the country. Indiana’s first port opened on Lake

Mount Vernon

The Port of Indiana-Mount Vernon is the eighth largest inland port in the country based on trip ton-miles and it moves more cargo by water and rail than any other port in Indiana. This Ohio River port handles three to five million tons of grain, coal, fertilizer, steel, minerals, cement and project cargo each year. Located near the median center of the U.S. population and only 153 miles from the

Midpoint of the U.S. population

Indiana ranks 14th nationally in maritime shipping

As the leading steel producing state in the U.S., Indiana’s concentration of integrated mills is located in the northwest corner of the state between East Chicago and Burns Harbor. The port is flanked by two major mills, ArcelorMittal and U.S. Steel, with three more within 20 miles and it is home to 19 steelandles ocean related tenants providing a wide range of complementary vessels via the t awrence eaway services, including processing, transportation, storage, pickling and more.

The Port of IndianaBurns Harbor provides a competitive advantage for shippers of steel, grain, dry/ liquid bulk fertilizers, project cargo, minerals and oversized equipment. The port is designated as a London Metal Exchange-approved facility and a Foreign-Trade Zone.

The location is the southernmost port on the Short Sea Shipping route with Canada and Duluth. Connections to Class I railroads, six interstates, the Great Lakes, the Inland Waterways and the Atlantic Ocean via the St. Lawrence Seaway provides port customers strategic access to domestic and international markets.

H S .L

Indiana’s three ports provide connections to Great Lakes and Ohio-Mississippi river system for

more than 500 acres available for future development. It serves the world’s most productive industrial and agricultural region through a combination of strategic location, multimodal connections and specialized facilities. Tenants benefit not only from the full services of the industrial parks but also from direct access to unparalleled multimodal transportation connection.

S

confluence of the Ohio and Mississippi rivers, this 1,000-acre port has 10 tenants and more than 500 acres of greenfield industrial sites available for development.

This multimodal port has year-round accessibility to the Gulf of Mexico through the Inland Waterway System and connections to five Class I railroads via Evansville Western Railway. Being located in the heart of the Ohio River basin allows for the efficient and costcompetitive transport of agricultural products, coal and components

Three port system with 2,700 acres

of the steel making process. The port is home to advanced-handling technology, including a 60-ton overhead crane, and has access to a 1,000-ton crane for heavy lift cargo. The port also has onsite storage facilities for general cargo and bulk commodities, and more than 50 trucking companies serve the Mount Vernon area. www.portsofindiana.com · Winter 2013

7

2/17/13 12:04 AM

Jeffersonville

The Port of Indiana-Jeffersonville is a gateway to the Midwest with 12-month access to the Gulf of Mexico through the Inland Waterway System. In addition to domestic barge service, the port offers international service to Europe, the Middle East, Asia and South America via the Ohio-Mississippi rivers’ connection to the Gulf of Mexico.

Located on the northern bank of the Ohio River, across from Louisville, Ky., the Port of Indiana-Jeffersonville provides competitive advantages to companies that move cargo by water,

Indiana’s Ports create $6.4 billion in annual economic impact and 50,000 jobs

PORT REPORT - BURNS HARBOR Red Hot NLMK Indiana broke previous production records by more than 116,000 metric tons of steel in 2012. The facility melts scrap steel into slabs used to produce steel coils (inset).

12-month access to Gulf of Mexico through Inland Waterway System rail and highway. The synergies found at the port allow for steel products to be handled by up to four port companies prior to leaving the port. The cost competitiveness of this supply chain connectivity can save steel companies as much as $10 per ton in logistics costs by being located at the port. With more than 13 steel-related companies onsite, the port provides a one-stop shop for steel customers.

Year-round access to rail, truck and barge provides the product mobility to overcome the seasonality of shipments.

The port has direct interstate connections to I-65, I-64 and I-71 via I-265 with 320 acres of prime industrial sites available and 3,200 feet of riverfront accessibility. CSX & LouisvilleIndiana railroads handle rail with onsite switching via MG Rail.

Port Development Tools Foreign-Trade Zone

The Ports of Indiana is also a statewide grantee of foreign-trade zones (FTZs), which can reduce, eliminate or postpone duties on items imported into a zone. Companies located in an FTZ can experience the following benefits: • conduct processing and assembly operations while deferring the payment of import duties until the product formally enters U.S. Customs Territory, or combine foreign and domestic components in order to qualify for lower duties; • avoid payment of duties on materials lost in manufacturing or inspect goods for quality, breakage, and loss before import duties are paid; • delay duties in order to exhibit or market goods prior to making payments, schedule customs entries around inventory turnover or sales cycles, or store goods while awaiting a favorable exchange rate.

FTZs are an important way to encourage participation by Indiana firms in the increasingly global economy. They help open new markets for firms ready to compete globally. Improving Indiana’s international competitiveness is critical to the economic future of the state.

For additional information about the Ports of Indiana, please visit www.portsofindiana.com.

8

Winter 2013 · PORTSIDE MAGAZINE

130217-POI_Portside-cs4_FINAL APPROVED.indd 8-9

Port Financing

The Ports of Indiana can offer development financing to companies looking to build or expand facilities anywhere in Indiana. This program has been extensively used at ports for years, and it is becoming widely used more recently for off-port projects.

Development financing involves the use of bonding authority to build or expand a facility on behalf of a private company. The company then repays the bond through a lease agreement. This allows the company to treat the cost as an operating expense rather than a capital investment, improving balance sheet ratios and conserving capital for other needs.

A “tie-breaking” economic incentive, development financing is used in consultation with state, local and economic development officials to solidify agreements with companies that might otherwise locate in another state or not pursue the project at all.

Development financing relieves the daunting proposition facing policy makers and economic development professionals of finding ways to boost economic growth without spending money or reducing revenues. The use of non-recourse bonds provides low risk and high return for the state since it assumes no financial risk for the debt. It functions similarly to conduit bonding tools and is consistent with the state’s debt issuance practices.

Finally, instead of requiring additional appropriations, development financing may actually provide some budget relief for Indiana. Ports of Indiana could collect fees associated with the issuance of the bond, reducing its need for future capital requests from the General Assembly for new transportation infrastructure. And most importantly, the new economic development will create increased revenues for the state of Indiana by expanding the tax base.

NLMK Indiana sets steel production records PORTAGE, Ind. – NLMK Indiana produced and North America, Novolipetsk Steel makes PORT REPORT more steel in 2012 than any other year in its a variety of steel products, including pig iron, 20-year history at the Port of Indiana-Burns slabs, hot-rolled, cold-rolled, galvanized and Column by Harbor. The facility produced 727,600 electrical steels. For more information, visit Nick Szymarek metric tons of slab, and over 710,000 metric Operations Manager www.us.nlmk.com. tons of hot-rolled coils, breaking the previous Contact Info: record by 19 percent or more than 116,000 (219) 787-6951 metric tons. The company cites increased nszymarek@portsofindiana.com efficiencies, new product development and a We recently upgraded two key security deeper market presence for the uptick. components at the port – the guardhouse The facility melts steel from scrap into at our entrance and lighting at strategic continuous cast steel slabs that are then processed into flat-rolled steel locations along the waterfront. coils. The primary markets for the coils are steel processors and pipe The new guardhouse opened in November. It measures 192 and tube manufacturers. square-feet – 64 square-feet larger than the old one – and complies As part of a multi-million dollar investment, NLMK is installing with the American Disability Act’s accessibility requirements. It a new dynamic water cooling system, a grinder to maintain the steelwas built by Par-Kut forming rolls at the hot strip mill and a ‘charge’ crane, capable of International, a Michigancarrying 118-metric-ton ladles of molten steel, used to move scrap based company that has to the furnace. The new equipment will help increase production, been making portable steel reliability, product quality and safety. buildings since 1954.

Steel-making can be a dangerous industry. According to Joe The security lighting Gazarkiewicz, director of human resources, labor relations and includes nine high-mast safety at NLMK, the company is even more proud of a recent lights – one 50-foot tall safety achievement than the production record. The facility reduced mast topped with six 1000injuries and accidents by two-thirds in 2012 over the previous year, watt lamps and eight 80- Construction of the new guardhouse was funded by a and achieved an OSHA recordable accident rate of 1.3, thanks to foot masts with nine 1000- federal security grant. an increased emphasis and union and management participation in watt lamps. The new lights safety procedures. replace five 400-watt streetlights. The increased brightness assists with The facility opened in 1992 as Beta Steel Corp. The name change security monitoring at the port and allows greater visibility and safety came in 2008 when steel producer Novolipetsk Steel acquired the during night work. On each mast, roughly half the lights are lit from company in a $350 million transaction. Based out of Lipetsk, Russia, dusk until dawn, but we have the ability to turn on the rest by switch, Novolipetsk Steel is one of the world’s largest steel producers with allowing us to minimize light pollution by only lighting the lamps as operations handling mining, steelmaking, rolling and finishing. Started needed. in 1931, it employs more than 70,000 worldwide, and its products The new security features were partially funded with FEMA are sold in 60 countries. With production locations in Russia, Europe grants from the U.S. Department of Homeland Security.

Port upgrades security

www.portsofindiana.com · Winter 2013

9

2/17/13 12:04 AM

Jeffersonville

The Port of Indiana-Jeffersonville is a gateway to the Midwest with 12-month access to the Gulf of Mexico through the Inland Waterway System. In addition to domestic barge service, the port offers international service to Europe, the Middle East, Asia and South America via the Ohio-Mississippi rivers’ connection to the Gulf of Mexico.

Located on the northern bank of the Ohio River, across from Louisville, Ky., the Port of Indiana-Jeffersonville provides competitive advantages to companies that move cargo by water,

Indiana’s Ports create $6.4 billion in annual economic impact and 50,000 jobs

PORT REPORT - BURNS HARBOR Red Hot NLMK Indiana broke previous production records by more than 116,000 metric tons of steel in 2012. The facility melts scrap steel into slabs used to produce steel coils (inset).

12-month access to Gulf of Mexico through Inland Waterway System rail and highway. The synergies found at the port allow for steel products to be handled by up to four port companies prior to leaving the port. The cost competitiveness of this supply chain connectivity can save steel companies as much as $10 per ton in logistics costs by being located at the port. With more than 13 steel-related companies onsite, the port provides a one-stop shop for steel customers.

Year-round access to rail, truck and barge provides the product mobility to overcome the seasonality of shipments.

The port has direct interstate connections to I-65, I-64 and I-71 via I-265 with 320 acres of prime industrial sites available and 3,200 feet of riverfront accessibility. CSX & LouisvilleIndiana railroads handle rail with onsite switching via MG Rail.

Port Development Tools Foreign-Trade Zone

The Ports of Indiana is also a statewide grantee of foreign-trade zones (FTZs), which can reduce, eliminate or postpone duties on items imported into a zone. Companies located in an FTZ can experience the following benefits: • conduct processing and assembly operations while deferring the payment of import duties until the product formally enters U.S. Customs Territory, or combine foreign and domestic components in order to qualify for lower duties; • avoid payment of duties on materials lost in manufacturing or inspect goods for quality, breakage, and loss before import duties are paid; • delay duties in order to exhibit or market goods prior to making payments, schedule customs entries around inventory turnover or sales cycles, or store goods while awaiting a favorable exchange rate.

FTZs are an important way to encourage participation by Indiana firms in the increasingly global economy. They help open new markets for firms ready to compete globally. Improving Indiana’s international competitiveness is critical to the economic future of the state.

For additional information about the Ports of Indiana, please visit www.portsofindiana.com.

8

Winter 2013 · PORTSIDE MAGAZINE

130217-POI_Portside-cs4_FINAL APPROVED.indd 8-9

Port Financing

The Ports of Indiana can offer development financing to companies looking to build or expand facilities anywhere in Indiana. This program has been extensively used at ports for years, and it is becoming widely used more recently for off-port projects.

Development financing involves the use of bonding authority to build or expand a facility on behalf of a private company. The company then repays the bond through a lease agreement. This allows the company to treat the cost as an operating expense rather than a capital investment, improving balance sheet ratios and conserving capital for other needs.

A “tie-breaking” economic incentive, development financing is used in consultation with state, local and economic development officials to solidify agreements with companies that might otherwise locate in another state or not pursue the project at all.

Development financing relieves the daunting proposition facing policy makers and economic development professionals of finding ways to boost economic growth without spending money or reducing revenues. The use of non-recourse bonds provides low risk and high return for the state since it assumes no financial risk for the debt. It functions similarly to conduit bonding tools and is consistent with the state’s debt issuance practices.

Finally, instead of requiring additional appropriations, development financing may actually provide some budget relief for Indiana. Ports of Indiana could collect fees associated with the issuance of the bond, reducing its need for future capital requests from the General Assembly for new transportation infrastructure. And most importantly, the new economic development will create increased revenues for the state of Indiana by expanding the tax base.

NLMK Indiana sets steel production records PORTAGE, Ind. – NLMK Indiana produced and North America, Novolipetsk Steel makes PORT REPORT more steel in 2012 than any other year in its a variety of steel products, including pig iron, 20-year history at the Port of Indiana-Burns slabs, hot-rolled, cold-rolled, galvanized and Column by Harbor. The facility produced 727,600 electrical steels. For more information, visit Nick Szymarek metric tons of slab, and over 710,000 metric Operations Manager www.us.nlmk.com. tons of hot-rolled coils, breaking the previous Contact Info: record by 19 percent or more than 116,000 (219) 787-6951 metric tons. The company cites increased nszymarek@portsofindiana.com efficiencies, new product development and a We recently upgraded two key security deeper market presence for the uptick. components at the port – the guardhouse The facility melts steel from scrap into at our entrance and lighting at strategic continuous cast steel slabs that are then processed into flat-rolled steel locations along the waterfront. coils. The primary markets for the coils are steel processors and pipe The new guardhouse opened in November. It measures 192 and tube manufacturers. square-feet – 64 square-feet larger than the old one – and complies As part of a multi-million dollar investment, NLMK is installing with the American Disability Act’s accessibility requirements. It a new dynamic water cooling system, a grinder to maintain the steelwas built by Par-Kut forming rolls at the hot strip mill and a ‘charge’ crane, capable of International, a Michigancarrying 118-metric-ton ladles of molten steel, used to move scrap based company that has to the furnace. The new equipment will help increase production, been making portable steel reliability, product quality and safety. buildings since 1954.

Steel-making can be a dangerous industry. According to Joe The security lighting Gazarkiewicz, director of human resources, labor relations and includes nine high-mast safety at NLMK, the company is even more proud of a recent lights – one 50-foot tall safety achievement than the production record. The facility reduced mast topped with six 1000injuries and accidents by two-thirds in 2012 over the previous year, watt lamps and eight 80- Construction of the new guardhouse was funded by a and achieved an OSHA recordable accident rate of 1.3, thanks to foot masts with nine 1000- federal security grant. an increased emphasis and union and management participation in watt lamps. The new lights safety procedures. replace five 400-watt streetlights. The increased brightness assists with The facility opened in 1992 as Beta Steel Corp. The name change security monitoring at the port and allows greater visibility and safety came in 2008 when steel producer Novolipetsk Steel acquired the during night work. On each mast, roughly half the lights are lit from company in a $350 million transaction. Based out of Lipetsk, Russia, dusk until dawn, but we have the ability to turn on the rest by switch, Novolipetsk Steel is one of the world’s largest steel producers with allowing us to minimize light pollution by only lighting the lamps as operations handling mining, steelmaking, rolling and finishing. Started needed. in 1931, it employs more than 70,000 worldwide, and its products The new security features were partially funded with FEMA are sold in 60 countries. With production locations in Russia, Europe grants from the U.S. Department of Homeland Security.

Port upgrades security

www.portsofindiana.com · Winter 2013

9

2/17/13 12:04 AM

PORT REPORT - MOUNT VERNON

PORT REPORT - JEFFERSONVILLE 3 Modes, No Waiting

Port provides companies with opportunity to ship and receive cargo by barge, rail or truck.

Room To Grow The Port of Indiana-Jeffersonville recently purchased two port facilities for future development. Port Building 1 includes a 10,500 square-foot warehouse, office space and 7.5 acres.

Mount Vernon port provides intermodal advantages MOUNT VERNON, Ind. – Barges: 1,800. multimodal options combine to save time and PORT REPORT Railcars: 20,000. Semi-Trailers: 82,500. The money, creating a ‘best-of-all-worlds’ scenario for moving cargo.

Port of Indiana-Mount Vernon handled Column by all of this traffic in 2012. This is genuine Phil Wilzbacher Port Director ‘intermodalism.’

Some people may limit their idea of Congratulations to CIMBAR Contact Info: intermodal to containers – the reusable, Performance Minerals on breaking its all-time (812) 833-2166 truck-sized steel shipping containers that annual tonnage record in 2012. CIMBAR pwilzbacher@portsofindiana.com are easily transferred from one mode to handled nearly three times more product than another – but the idea extends far beyond the previous year. the package. An intermodal shipment is

The company’s port facility processes one that travels by a combination of modes. Shippers of all types of talc imported from China, which is used in a variety of products, cargoes can tailor the modes to best fit transit time and economics. including powder, cosmetics, plastics and paint.

Waterborne shipping is the most economical and efficient way The business growth is the result of three key elements: the to move cargo. More cargo is moved with less fuel – a single barge facility increasing its inventory, the company investing in microcarries the same amount of cargo as 70 semi-trucks and a towboat grinders that opened up a new and growing market, and an increased moving 15 barges can haul the equivalent of 1,050 trucks. overall demand in the mineral industry.

The U.S. Inland River System spans 12,000 miles and connects 38 states, which gives port customers extensive maritime connections with multiple barge lines. The Ohio-Mississippi rivers also provide I’d like to congratulate Doug Debelak, global access for Indiana shippers as cargoes can be transloaded vice president of Consolidated Grain and Barge between river barges and ocean vessels at the Gulf of Mexico.

– Soybean Processing Division, on his recent

Rail is the next most efficient mode of transport. A 100-car train retirement. can move the same amount of cargo as 400 trucks. Evansville Western

Doug started with CGB more than 15 years Railway serves the port’s rail switching needs and offers interchanges ago, after nearly 25 years with Cargill. He oversaw with five Class I railroads.

CGB’s venture into the soybean processing Doug Debelak The final piece of the intermodal puzzle is trucking, which market from the ground up and, today, the port CGB provides the vital link between waterways and rail lines to businesses facility processes approximately 2,400 tons of beans daily. all over the country. The Port of Indiana-Mount Vernon is well Doug is moving to Sioux Falls, S.D., where he plans on positioned near I-64 and the I-69 corridor, just minutes from the spending time with his grandkids, golfing, volunteering with the midpoint of the U.S. population.

Ronald McDonald House and continuing his studies in theology and

Shipping by barge, rail or truck, each mode plays a crucial role in philosophy. the intermodal picture. The port’s connections to all three modes give

It’s been a privilege to work with Doug for many years. From all shippers a distinct logistical advantage and the ability to easily react to of us with the Ports of Indiana, we wish him good health and the best market fluctuations or changing conditions in different areas. These of luck on a well-earned retirement.

CIMBAR breaks records

Debelak retires from CGB

10 Winter 2013 · PORTSIDE MAGAZINE 130217-POI_Portside-cs4_FINAL APPROVED.indd 10-11

Port acquires two facilities for future development includes 2.4 acres of outside storage, and the JEFFERSONVILLE, Ind. – The Port of PORT REPORT five-acre site can accommodate a building Indiana-Jeffersonville is poised for growth as expansion of up to 80,000 square-feet. travel around the greater Louisville area will Column by soon be easier than ever. The ports recently Acreage available for development includes Scott Stewart Port Director purchased the former the Vitran Express 5 acres onsite and an adjacent 14-acre lot. and Interstate Structures facilities at the Both facilities include all the amenities Contact Info: Jeffersonville port. of the port. We have 3,200 feet of riverfront (812) 282-2096 The next five years will be a time of access and year-round ocean access via the sstewart@portsofindiana.com great transition and development for the Ohio and Mississippi rivers system. Trucks port, one that could rival the 1990s when we have direct interstate access with I-64, were the fastest growing port on the Inland I-65, I-71 via I-265.

Waterways. The East End Crossing, which includes a new bridge Louisville International Airport is only 14 miles away, connecting I-265 on either side of the Ohio River, is scheduled to and Clark County Airport is only eight. The port is home to 11 open in October of 2016. The bridge will be located only 1.5 miles miles of interior rail tracks and a 350-car rail sorting yard. Logistical northeast of the port and will increase truck accessibility, greatly advantages extend far beyond the benefits of waterborne shipping; we reducing travel time to Kentucky and beyond. The shorter travel time are truly a multi-modal hub. ultimately gives our port companies an additional benefit – lower The available facilities are also part of the port’s foreign-trade transportation costs. zone, FTZ #170. Companies located here can quickly activate Formerly owned by Vitran Express, Port Building 1 includes a FTZ status to take advantage of deferred and reduced duty fees on 10,500 square-foot warehouse, 3,000 square-foot office and 7.5 acres. international trade.

Previously used as a cross-docking facility, the warehouse also has the The new East End Ohio River Bridge gives the port an exciting potential to be converted to a manufacturing facility. opportunity for growth, but we must be prepared to take advantage of Port Building 2, the former Interstate Structures facility, includes it. In an area with a limited amount of space, these two facilities open 9,000 square-feet of office space, 18,000 square-feet of manufacturing the port up to new companies and cargoes, and will give two future space and a 2,490 square-foot production office. The manufacturing tenants the logistical advantage of a being located at a multimodal space includes three bridge cranes – one with 5-ton capacity and two port facility. Feel free to contact me if you would like to discuss these with 7.5-ton capacity – and two 2-ton jib cranes. The site currently or any of our available sites. www.portsofindiana.com · Winter 2013 11 2/18/13 8:40 AM

PORT REPORT - MOUNT VERNON

PORT REPORT - JEFFERSONVILLE 3 Modes, No Waiting

Port provides companies with opportunity to ship and receive cargo by barge, rail or truck.

Room To Grow The Port of Indiana-Jeffersonville recently purchased two port facilities for future development. Port Building 1 includes a 10,500 square-foot warehouse, office space and 7.5 acres.

Mount Vernon port provides intermodal advantages MOUNT VERNON, Ind. – Barges: 1,800. multimodal options combine to save time and PORT REPORT Railcars: 20,000. Semi-Trailers: 82,500. The money, creating a ‘best-of-all-worlds’ scenario for moving cargo.

Port of Indiana-Mount Vernon handled Column by all of this traffic in 2012. This is genuine Phil Wilzbacher Port Director ‘intermodalism.’

Some people may limit their idea of Congratulations to CIMBAR Contact Info: intermodal to containers – the reusable, Performance Minerals on breaking its all-time (812) 833-2166 truck-sized steel shipping containers that annual tonnage record in 2012. CIMBAR pwilzbacher@portsofindiana.com are easily transferred from one mode to handled nearly three times more product than another – but the idea extends far beyond the previous year. the package. An intermodal shipment is

The company’s port facility processes one that travels by a combination of modes. Shippers of all types of talc imported from China, which is used in a variety of products, cargoes can tailor the modes to best fit transit time and economics. including powder, cosmetics, plastics and paint.

Waterborne shipping is the most economical and efficient way The business growth is the result of three key elements: the to move cargo. More cargo is moved with less fuel – a single barge facility increasing its inventory, the company investing in microcarries the same amount of cargo as 70 semi-trucks and a towboat grinders that opened up a new and growing market, and an increased moving 15 barges can haul the equivalent of 1,050 trucks. overall demand in the mineral industry.

The U.S. Inland River System spans 12,000 miles and connects 38 states, which gives port customers extensive maritime connections with multiple barge lines. The Ohio-Mississippi rivers also provide I’d like to congratulate Doug Debelak, global access for Indiana shippers as cargoes can be transloaded vice president of Consolidated Grain and Barge between river barges and ocean vessels at the Gulf of Mexico.

– Soybean Processing Division, on his recent

Rail is the next most efficient mode of transport. A 100-car train retirement. can move the same amount of cargo as 400 trucks. Evansville Western

Doug started with CGB more than 15 years Railway serves the port’s rail switching needs and offers interchanges ago, after nearly 25 years with Cargill. He oversaw with five Class I railroads.

CGB’s venture into the soybean processing Doug Debelak The final piece of the intermodal puzzle is trucking, which market from the ground up and, today, the port CGB provides the vital link between waterways and rail lines to businesses facility processes approximately 2,400 tons of beans daily. all over the country. The Port of Indiana-Mount Vernon is well Doug is moving to Sioux Falls, S.D., where he plans on positioned near I-64 and the I-69 corridor, just minutes from the spending time with his grandkids, golfing, volunteering with the midpoint of the U.S. population.

Ronald McDonald House and continuing his studies in theology and

Shipping by barge, rail or truck, each mode plays a crucial role in philosophy. the intermodal picture. The port’s connections to all three modes give

It’s been a privilege to work with Doug for many years. From all shippers a distinct logistical advantage and the ability to easily react to of us with the Ports of Indiana, we wish him good health and the best market fluctuations or changing conditions in different areas. These of luck on a well-earned retirement.

CIMBAR breaks records

Debelak retires from CGB

10 Winter 2013 · PORTSIDE MAGAZINE 130217-POI_Portside-cs4_FINAL APPROVED.indd 10-11

Port acquires two facilities for future development includes 2.4 acres of outside storage, and the JEFFERSONVILLE, Ind. – The Port of PORT REPORT five-acre site can accommodate a building Indiana-Jeffersonville is poised for growth as expansion of up to 80,000 square-feet. travel around the greater Louisville area will Column by soon be easier than ever. The ports recently Acreage available for development includes Scott Stewart Port Director purchased the former the Vitran Express 5 acres onsite and an adjacent 14-acre lot. and Interstate Structures facilities at the Both facilities include all the amenities Contact Info: Jeffersonville port. of the port. We have 3,200 feet of riverfront (812) 282-2096 The next five years will be a time of access and year-round ocean access via the sstewart@portsofindiana.com great transition and development for the Ohio and Mississippi rivers system. Trucks port, one that could rival the 1990s when we have direct interstate access with I-64, were the fastest growing port on the Inland I-65, I-71 via I-265.

Waterways. The East End Crossing, which includes a new bridge Louisville International Airport is only 14 miles away, connecting I-265 on either side of the Ohio River, is scheduled to and Clark County Airport is only eight. The port is home to 11 open in October of 2016. The bridge will be located only 1.5 miles miles of interior rail tracks and a 350-car rail sorting yard. Logistical northeast of the port and will increase truck accessibility, greatly advantages extend far beyond the benefits of waterborne shipping; we reducing travel time to Kentucky and beyond. The shorter travel time are truly a multi-modal hub. ultimately gives our port companies an additional benefit – lower The available facilities are also part of the port’s foreign-trade transportation costs. zone, FTZ #170. Companies located here can quickly activate Formerly owned by Vitran Express, Port Building 1 includes a FTZ status to take advantage of deferred and reduced duty fees on 10,500 square-foot warehouse, 3,000 square-foot office and 7.5 acres. international trade.

Previously used as a cross-docking facility, the warehouse also has the The new East End Ohio River Bridge gives the port an exciting potential to be converted to a manufacturing facility. opportunity for growth, but we must be prepared to take advantage of Port Building 2, the former Interstate Structures facility, includes it. In an area with a limited amount of space, these two facilities open 9,000 square-feet of office space, 18,000 square-feet of manufacturing the port up to new companies and cargoes, and will give two future space and a 2,490 square-foot production office. The manufacturing tenants the logistical advantage of a being located at a multimodal space includes three bridge cranes – one with 5-ton capacity and two port facility. Feel free to contact me if you would like to discuss these with 7.5-ton capacity – and two 2-ton jib cranes. The site currently or any of our available sites. www.portsofindiana.com · Winter 2013 11 2/18/13 8:40 AM

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

A Ports of Indiana Publication · Winter 2013

Indiana’s Ports

An inside look at North America’s premier inland port system

Inside this Issue:

• New leadership takes over the helm at Port of Indiana-Burns Harbor • Burns Harbor: NLMK Indiana sets steel production records • Jeffersonville: Port acquires two facilities for future development Winter 2013 · PORTSIDE MAGAZINE 130217-POI_Portside-cs4_FINAL APPROVED.indd 1-1

www.portsofindiana.com · Winter 2013 2/17/13 12:04 AM