Portside Magazine - Spring 2010 by Ports of Indiana

www.portsofindiana.com

A Ports of Indiana Publication · Spring 2010

FROM LOADING DOCKS TO LOADED BASES Jeffersonville port supplies infield dirt for region’s ball fields

iNSiDe tHiS iSSUe: In Memoriam: Mount Vernon’s Art Bayer, pg. 5 Port of Indiana-Burns Harbor opens 40th international shipping season, pg. 10 Last operational WWII LST ship refuels at Mount Vernon port, pg. 11

Tie-in to business resources.

“1SI helped tie us into the tax credits, tax abatement programs and workforce training grants we needed to expand our business at the Port of Indiana-Jeffersonville.” Chuck Moore, President, Eagle Steel Products, Inc.

on completion of $3 million expansion at the company’s 270,000 square foot riverfront facility in Jeffersonville.

Want some help in taking your business to the next level?

Contact Kathleen Crowley at kathleenc@1si.org or call 812-945-0266

www.1si.org

The Port of Indiana-Mount Vernon is the eighth largest inland port in the country based on trip ton-miles. In 2009, it handled 4.58 million tons of grain, coal, fertilizer, steel, minerals, cement and project cargo.

tABLe oF coNteNtS FROM THE CEO Indiana’s lakeshore businesses depend on Chicago locks............................................ 4 150 W. Market St., Ste. 100, Indianapolis, IN 46204 (317) 232-9200 / fx (317) 232-0137 / info@portsofindiana.com www.portsofindiana.com www.indianalogistics.com PORTS OF INDIANA CONTACT INFORMATION

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

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NEWS & NOTES ........................................................................................................ 5 In Memoriam: Mount Vernon’s Art Bayer Ports of Indiana welcomes new controller FEATURE STORY From loading docks to loaded bases ........................................................................ 6 FROM THE BOARD ROOM Commission approves business expansions at February meeting.............................. 8 ENVIRO•FOCUS ............................................................................................................. 9 Report shows no unmanaged ballast water released in Lakes during ‘09 EPA announces five-year, $457 million Great Lakes Restoration Initiative PORT REPORTS Burns Harbor: Port opens 40th international shipping season .............................. 10 Mount Vernon: Last operational WWII LST ship refuels at Mount Vernon port ............. 11 Jeffersonville: Port improvements keep commerce flowing smoothly ..................... 12 FOREIGN TRADE ZONES Ports’ newest foreign-trade zone customer sees dramatic growth ..................... 13 PORTS OF INDIANA DIRECTORY .............................................................................. 14

www.portsofindiana.com · Spring 2010 3

FROM THE CEO

Indiana’s lakeshore businesses depend on Chicago locks

Rich Cooper

Chief Executive Officer, Ports of Indiana

The Port of Indiana-Burns Harbor ships more than 700,000 tons of cargo through the Chicago locks each year.

4 · Spring 2010 PORTSIDE MAGAZINE

The Chicago locks are vital to the Port of Indiana-Burns Harbor. Roughly one-third of the port’s shipments transit those locks which connect Lake Michigan to the Mississippi River system. They provide a critical link to the Gulf of Mexico where cargoes can be transloaded between river barges and ocean-going vessels for shipment to and from anywhere in the world. Since the St. Lawrence Seaway closes every winter, this river connection is the only waterway with year-round access to the port. On average, the Port of Indiana-Burns Harbor ships more than 400 barges and 700,000 tons of cargo through the locks every year. These shipments create more than 3,000 total jobs and $350 million in business revenues. This figure does not include major northwest Indiana companies that use the locks, such as BP, ArcelorMittal and U.S. Steel. The combined tonnage of all cargo shipments along Indiana’s lakeshore ranks that region among the 25 biggest ports in the country – 50 percent bigger than Chicago. Some people are calling for the closing of the Chicago locks in a hasty reaction to a threat of Asian carp getting into the Great Lakes. No carp – dead or alive – have been found north of the electric barriers in Romeoville, Ill., despite a recent six-week hunt for the fish. These locks are the only connection for shipping between the Great Lakes and the inland river system. A study released recently by the Illinois Chamber of Commerce found that closing the locks would result in a $4.7 billion hit to the region’s economy over the course of 20 years. This extends far beyond the shipping industry, with the potential for flooding, additional costs for highway maintenance and even impacts on the region’s recreational businesses. Without access to the Mississippi River, even companies that do not ship by barge would suffer. The slightest change in logistics costs often determine whether Indiana grain is shipped around the world or down the road. Having multiple transportation modes provides companies with options to secure the most favorable prices, and having options makes all the difference when there are supply-chain disruptions. Barge shipments are one of the most efficient modes of transportation when you consider that one tugboat with a 15-barge tow can haul the same amount of cargo as 1,050 trucks or 240 railcars. If the average annual barge shipments moving through the Port of Indiana-Burns Harbor were switched to trucks, it would add more than 28,000 semitrucks to one of the most highly congested highway systems in the country. Shipping by barge is also the most environmentally-friendly mode of moving goods, requiring less fuel and releasing fewer ozone emissions. It is also less expensive and safer than other modes of transportation. Closing the locks is not a viable solution. It would have a negative impact on our economy, environment and public safety. We must avoid knee-jerk reactions to the hysteria. Our focus must be on a comprehensive approach that provides long-term solutions to the problem at hand without creating a whole new series of complications.

NeWS & NoteS

In Memoriam: Mount Vernon’s Art Bayer MOUNT VERNON, Ind. – Art “Junior” Bayer, named the “Maritime Person of the friend of the inland waterways and founder of port Year” by the International Propeller company Mount Vernon Barge Service, passed Club in 2009. Last year he also away on March 3 at age 84. received the Distinguished Hoosier “The inland waterways lost one of their Award from the state of Indiana and biggest advocates and the Port of Indiana-Mount the city of Mount Vernon declared Vernon lost one of our best friends and strongest Dec. 16 as Arthur “Junior” Bayer Art Bayer keeps rollin’ on the river supporters,” said Rich Cooper, CEO of Ports of Day. Indiana. “He had a passion like none other for the “About a month before he Ohio River and dedicated his life to advancing passed away, I had the opportunity the inland waterways. His contribution is to have dinner with Art,” said Phil immeasurable.” Wilzbacher, port director of the Port Bayer always had a fascination with the river of Indiana-Mount Vernon. “Even and his career on the water began when he was though he and his family sold Mount just 16. In 1962, he and his wife Marty started INSIDE THIS ISSUE: Vernon Barge Service a couple of billion dollar year, pg. 4 Mount Vernon Barge Service, which he owned and Another years ago, Art’s commitment to the New faces join Ports of Indiana team, pg. 5 Foreign Trade: Easy as FTZ, pg. 16 operated for 45 years until selling to TPG Mount inland river industry and his desire to Vernon Marine in 2007. Bayer lobbied for the help the port grow never diminished. state’s second port to be located in his hometown That evening, Art offered his time of Mount Vernon and his company became the Art Bayer was a fixture at the Port of Indianaand assistance on any project where Mount Vernon since 1977. port’s first service tenant in 1977. he could be of some help. He will be Bayer was a World War II veteran who fought missed.” in the Battle of the Bulge in Gen. George Patton’s Third Army, 5th Division, 11th Infantry Regiment and earned a Purple Heart. He was on the board of many organizations, including maritime groups INDIANAPOLIS – From air to water, Laurie such as the National Waterways Conference, Inland River Ports Peckham knows her way around a port’s and Terminals, Paducah Propeller Club and the Water Resource finances. Peckham joined the Ports of Indiana Congress. A charter member of the Evansville Propeller Club, he was as controller in March just off a stint as interim controller at the Indianapolis International Airport. “I am very excited to be joining the Ports of Indiana and look forward to making a contribution towards optimizing Indiana’s Laurie Peckham unique maritime port system,” Peckham said. Prior to her airport responsibilities, Peckham was the chief financial officer at U.S. Medical Management Services in Indianapolis. She is a CPA and holds a master’s degree in accounting from the University of Colorado-Denver and a bachelor’s degree in accounting from Avila University in Kansas City, Mo. A Missouri native, Peckham lived in Denver for 17 years prior to coming to Indiana. She and her husband Greg enjoy cooking and adventure travel – she once toured the Galapagos Islands for 10 days on a 104-foot motorized sailboat. “We are pleased to welcome Laurie,” said Rich Cooper, CEO of Ports of Indiana. “Her energy, education and professional experiences have allowed her to hit the ground running. We are looking forward to the contribution that we know she will make to Wreaths adorn Mount Vernon Barge tugboats named after Art Bayer and our accounting group and our management team.” his late wife Marty during Bayer’s funeral procession past the Ohio River. www.portsofindiana.com

A Ports of Indiana Publication · Spring 2007

Ol’ Man River

Ports of Indiana welcomes new controller

www.portsofindiana.com · Spring 2010 5

Diamond Pro ships its vitrified clay infield conditioner to customers through the Port of Indiana-Jeffersonville. Made up of shale and clay, the conditioner is fired in a rotary kiln at over 2,000 degrees Fahrenheit, making it porous and absorbent to maintain proper moisture levels on ball fields. (Ballplayer photo at right courtesy of the Indianapolis Indians and Bill Gentry. Cover photo courtesy of the Indianapolis Indians.)

FROM LOADING DOCKS Jeffersonville port supplies infield dirt for region’s ball fields JEFFERSONVILLE, Ind. – What does the Port of Indiana-Jeffersonville have in common with the Cincinnati Reds, Indianapolis Indians and Fort Wayne TinCaps? Cheering fans? The crack of the bat on a cool Midwest night? Hot dogs and Crackerjacks? Not exactly ... But the port does handle and store Diamond Pro® infield conditioner for delivery to numerous fields around the Midwest. “We use Diamond Pro simply because, in my opinion, it’s the best product line,” said Joey Stevenson, head groundskeeper for the Indianapolis Indians, a Triple-A affiliate of the Pittsburgh Pirates. “The quality control is excellent, the products work, the color is nice and doesn’t stick to uniforms and uniformity is excellent.” Diamond Pro is a subsidiary of Dallas-based Texas Industries Inc. (TXI), a leading supplier of cement, aggregate and consumer product building materials. TXI began using expanded shale and clay as an infield conditioner on a Houston-area high school baseball field in the late 1980s. By the mid-1990s, TXI launched Diamond Pro, which now includes a full line of infield conditioners, mound and home plate clay products, marking dust and other products used to maintain athletic fields – primarily baseball and softball. The product moving through the port is Diamond Pro’s Red Infield Conditioner, also known as a vitrified clay infield conditioner. Made from an expanded shale and clay, vitrified clay infield conditioners are heated in a rotary kiln at over 2,000 degrees Fahrenheit. This creates a durable, porous product that helps retain moisture on the field during hot summer days. 6 · Spring 2010 PORTSIDE MAGAZINE

Port company Consolidated Terminals and Logistics Co. (CTLC), a division of Consolidated Grain and Barge, handles the Diamond Pro cargo. The clay comes into the port by rail from Colorado and goes out by truck to regional baseball and softball fields in Indiana, Kentucky, Ohio and Michigan. According to Kenzie Cosner, CTLC terminal & logistic manager, the product was distributed from the company’s Aurora, Ind., terminal, but Diamond Pro moved from barge transport to rail. The Aurora facility does not handle railcars, so the cargo moved 100 miles down the river to the company’s terminal at the Port of Indiana-Jeffersonville, which has barge, rail and truck access. CTLC has the capacity to store 2,000 tons of the product and Cosner said they moved out roughly that amount over the course of a year. “This location is a good one for Diamond Pro because Indiana is the ‘Crossroads of America,’” said Matt Smolek, port director at the Port of Indiana-Jeffersonville. “There are also plenty of ball fields here in the Midwest, and from the port we can get this product wherever it needs to go by truck, rail or water.” Brad Garrison, who is responsible for sports fields and horticulture sales and logistics for Diamond Pro, says shipments from the port are generally in quantities of 10, 15 or, the most popular, 24 tons. Spring is the busy season with shipments moving daily. The raw clay and shale for Red Infield Conditioner is mined at the production plant site in Boulder, Colo. TXI also produces the product at plants in Texas and California. When a bulk order

is placed with a distributor, delivery is organized from the nearest plant or regional stockpile, such as the facility at the Port of Indiana-Jeffersonville. Diamond Pro has numerous distributors throughout the country ranging from companies that move other products like chemicals and fertilizers to those that perform athletic field construction or renovation work. “The Midwest has been a great area for Diamond Pro for many years.” said Garrison. “The ability to store Red Infield Conditioner at regional stockpile sites enables us to effectively and economically serve our customers in the region.” Most fans’ experience with ball field groundskeeping is limited to what they see right before each game – the crew dragging and watering the field, changing a few bases and pulling the tarp if rain starts to fall. According to Stevenson, Victory Field, home of the Indianapolis Indians, takes roughly 24 man-hours of prep each day to keep it in top condition. His responsibilities include overseeing the turf and dirt surfaces, dugouts, wallpads and outside irrigation.

TO LOADED BASES

“We try each day to make fans feel like everything is brand new each game they come to,” Stevenson said. “Similar to umpires, if our name is mentioned it’s usually not a good thing.” Mitch McClary, director of field maintenance and head groundskeeper at Fort Wayne’s Parkview Field, says the grounds crew can work 80 to 100 hour weeks during the baseball season. Parkview Field, home of the Fort Wayne TinCaps – a Class A affiliate of the San Diego Padres – hosts more than 70 TinCaps games as well as 25 to 30 high school and college games over the course of the season. The ballpark’s schedule also features concerts, fireworks shows and community events, such as marathon finishes, scout campout sleepovers and Easter egg hunts, and the field has to stay in top condition throughout. “Diamond Pro’s products not only make my job easier, but they allow me to put my efforts into other variables on the field because

Left: Parkview Field, home of the Fort Wayne TinCaps, is the site of the 2010 Midwest League All-Star Game and Home Run Derby. The TinCaps won the Midwest League Championship in 2009. (Photo courtesy of the Fort Wayne TinCaps.) Above: The grounds crew waters the infield at Victory Field, home of the Indianapolis Indians. According to Head Groundskeeper Joey Stevenson, the Indians use a combination of Diamond Pro’s vitrified clay infield conditioner and another of the company’s clay products to manage and retain moisture in the field. (Photo courtesy of the Indianapolis Indians.)

I know everything they provide will work beyond my expectations,” said McClary. “It takes a big load off my plate knowing their products are the best in the industry.” More information about Diamond Pro or TXI can be found at www.diamondpro.com or www.txi.com. www.portsofindiana.com · Spring 2010 7

Ken Kaczmarek

Greg Gibson

Marvin Ferguson

Ramon Arredondo

David Fagan

H.C. “Bud” Farmer

Phil McCauley

Jay Potesta

Commission approves business expansions at February meeting INDIANAPOLIS – The Ports of Indiana commission approved new business expansions for each of the three ports’ foreign-trade zones (FTZs) and for dock operations at the Port of Indiana-Mount Vernon during its February meeting. The commission approved proposals to file applications to the U.S. Foreign-Trade Zones board under a new Alternative Site Framework (ASF) program that would essentially expand the Ports of Indiana territory to a 21-county area, and allow companies within the area to streamline the FTZ application process – reducing the time it takes to activate an FTZ from one year to 30 days. The commission also approved an agreement for Consolidated Grain and Barge (CGB) to lease approximately three acres of land to build and operate a bulk cargo rail-to-barge loading facility at the Port of Indiana-Mount Vernon. CGB operated a similar facility on the same site from 1992 to 1997, but the company plans to enlarge the existing receiving pit, re-install conveying equipment and provide a work barge and other equipment to resume operations at the site. The Ports of Indiana annual audit was approved at the meeting. Crowe Horwath performed the audit, which it has done since 1993.

Consolidated Grain and Barge is constructing a bulk cargo loading facility at the Mount Vernon port on three acres leased from the Ports of Indiana.

Main Terminal & General Office… 4600 East 15th Avenue · Gary, Indiana 46403

219-938-7020 · 800-426-1827 · Fax: 219-938-6866

Lakes and Rivers Transfer, experts within the entire spectrum of bulk cargo handling. Lakes and Rivers Transfer, a division of Jack Gray Transport, Inc.

115 Steel Dr., Portage, IN 46368 219-787-9280 Fax: 219-787-8511 Located at The Port of Indiana · Burns International Harbor 8 · Spring 2010 PORTSIDE MAGAZINE

www.jackgray.com

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.

Enviro•Focus Report shows no unmanaged ballast water released in Lakes during ‘09 One-hundred percent of ocean vessels bound for the Great Lakes and St. Lawrence Seaway in 2009 received a ballast tank exam according to the annual report released by the Great Lakes Seaway Ballast Water Working Group (BWWG). Ballast water is essential for stabilizing cargo ships. Ships take on water in ballast tanks when carrying a light load to maintain balance. As cargo is loaded, the ballast water is released. Transporting ballast water from one part of the world to another can According to a report by the Great sometimes introduce tiny non- Lakes Seaway Ballast Water Working native organisms that stowaway Group, 100 percent of ships bound for the Great Lakes in 2009 received in ballast tanks, if not properly a ballast water tank exam. regulated. The goal of the BWWG is to minimize the introduction of invasive species to the Great Lakes by way of ballast water. The bi-national group develops and coordinates enforcement and compliance efforts. Formed in 2006, the BWWG is made up of representatives from the Canadian St. Lawrence Seaway Management Corp., Transport Canada –

Marine Safety, U.S. Coast Guard and U.S. Saint Lawrence Seaway Development Corp. “The seaway’s ballast water regulations require the inspection of the tanks of every international vessel entering the seaway, with successful results now documented,” said Collister “Terry” Johnson, Jr., administrator of the U.S. Saint Lawrence Seaway Development Corp. “Since 2006, there have been no new reported establishments of aquatic invasive species into the seaway system.” According to the 2009 report, all 295 vessels bound for the Great Lakes via the St. Lawrence Seaway were sampled. The 100 percent inspection rate was up from 99 percent in 2008 and 74 percent in 2007. Out of 5,576 tanks capable of carrying ballast water, 97.9 percent were in compliance with ballast water management regulations. Vessels that were not in compliance had two options: retain the ballast water or exchange the ballast in an approved zone. These red-flagged ships were all later found to be in compliance – meaning no unmanaged ballast water was released into the Great Lakes in 2009. Vessels on the St. Lawrence Seaway must adhere to ballast water regulations from both the U.S. and Canada. Measures to ensure compliance include increased inspections, civil penalties and documentation requirements. There are also regulations for ships with “no ballast onboard” (NOBOBs) that require those vessels to do a complete ballast water exchange before entering the Great Lakes. “This is further confirmation of just how serious the shipping industry is about addressing this issue,” said Ports of Indiana CEO Rich Cooper. “Our industry stakeholders take great responsibility for maintaining and preserving the environmental integrity of our lakes.”

EPA announces five-year, $457 million Great Lakes Restoration Initiative The U.S. Environmental Protection Agency (EPA) announced in February a $475 million action plan to restore and protect the Great Lakes. “We have an historic opportunity to restore and protect these waters,” EPA Administrator Lisa P. Jackson said in a release. “This action plan outlines our strategy to protect the environmental, human health and economic interests of the millions of people who rely on the Great Lakes. We’re committed to creating a new standard of care that will leave the Great Lakes better for the next generation.” The five-year plan, spanning 2010 to 2014, outlines five priority areas: • Cleanup and protection of polluted areas • Fighting invasive species • Protection of watersheds and reduction of polluted runoﬀ • Restoration of wetlands • Carrying out accountability measures, learning initiatives, outreach and strategic partnerships President Barack Obama proposed $475 million for the Great Lakes in February of 2009. It was the nation’s largest investment in the Great Lakes in two decades. The EPA held public meetings in the Great Lakes states with stakeholders and agencies to get feedback on the focus areas and a task force made up of representatives from 16 federal agencies developed the EPA’s action plan.

“The Great Lakes ports commend both the Obama administration and Congress for funding the Great Lakes Restoration Initiative,” said Steven Fisher, executive director of the American Great Lakes Ports Association. “Among other things, the restoration initiative will provide critical resources to help advance the development of ballast water treatment technology. Such technology is key to protecting the Great Lakes aquatic ecosystem while maintaining the viability of Great Lakes maritime commerce.” More information on the Great Lakes Restoration Initiative action plan can be found at www.greatlakesrestoration.us. The EPA’s $475 million Great Lakes Restoration Initiative focuses on several protection and rehabilitation programs including fighting invasive species, cleanup of polluted areas and reduction of polluted runoff.

www.portsofindiana.com · Spring 2010 9

Then

Now

PORT REPORT Peter Laman Port Director The port, shown at the far left in 1970, has grown considerably in the last 40 years, and is now home to 29 port companies.

PORT OF INDIANA – BURNS HARBOR

Port opens 40th international shipping season PORTAGE, Ind. – The Port of Indiana-Burns Harbor opened its 40th shipping season April 8 with the arrival of the first international vessel – the “Iryda.” For 40 years, this Great Lakes port has provided an international connection for local businesses to reach world markets. The first ship signifies the start of the shipping season, the arrival of vital materials for local business and the start of another work season for longshoremen, crane operators, truckers and businesses that depend on the port.

Flagged for the Republic of Cyprus, the Iryda is manned by a crew from Poland and Capt. Andrzej Kazmierski. The ship visited the port twice during the 2009 season, in April and October. Since 1970, the Port of Indiana-Burns Harbor has grown from a single tenant to the 29 companies that call the port home today. The port now handles more ocean-going cargo than any other U.S. Great Lakes port and 15 percent of U.S. steel trade with Europe. These past 40 years have been a time of dynamic growth for the Ports of Indiana, and as the first of Indiana’s three ports, Burns Harbor is a shining example that our state is not landlocked. Indiana is just one of a few interior states that has direct connections to two global trade corridors via the Gulf of Mexico and Atlantic Ocean, and those corridors play a vital role in our state’s economy.

Walsh and Kelly receives national recognition

Port company Walsh & Kelly Inc. was awarded the Diamond Achievement and Diamond Quality commendations by the National Asphalt Pavement Assoc. for its asphalt processing facility at the port, as well as the company’s four other Indiana locations in Griffith, Lowell, South Bend and Valparaiso. The Diamond Achievement is given to facilities exhibiting good corporate citizenship and community relations by way of appearance, operations, safety and more. The quality The Port of Indiana-Burns Harbor opened its 40th international shipping commendation is focused on the quality of pavement season on April 8 with the arrival of the ship Iryda. produced and environmental practices. While the company has only been a port tenant since The Iryda was built in 1999 in Chiba, Japan, located on Tokyo 2007, Walsh & Kelly has been around for over 60 years. It specializes Bay. It brought roughly 9,000 tons of steel coils to the port from in asphalt paving, excavation, sidewalks, curbs and pavement. For Ijmuiden, Holland. The ship made a stop in Cleveland on its way more information on the company, visit www.walshkelly.com. to Burns Harbor, continued on to Milwaukee and was reloaded in Duluth, Minn., before heading back across the Atlantic Ocean. Contact Peter Laman at (219) 787-5101; plaman@portsofindiana.com 10 · Spring 2010 PORTSIDE MAGAZINE

The LST-325, the last of the functional World War II “Landing Ship, Tanks” class, docks at the Port of Indiana-Mount Vernon in April.

PORT REPORT Phil Wilzbacher Port Director

PORT OF INDIANA – MOUNT VERNON

Last operational WWII LST ship refuels at Mount Vernon port MOUNT VERNON, Ind. – The last operational World War II tank-landing ship, the “USS LST-325,” refueled at the Port of Indiana-Mount Vernon on April 20 during a weekend visit to the city’s riverfront. This “LST” – which stands for “Landing Ship, Tanks” – is one of only two such ships preserved in the U.S. and the only one capable of sailing on its own. It was added to the National Register of Historic Places in 2009. The ship is one of 1,051 made during World War II to carry large amounts of battle-ready vehicles, cargo and troops. LSTs were unique because they could land and unload on shores with no docks. The LST-325 was built at the Philadelphia Navy Yard and first launched in 1942. During the war, the ship made 44 trips across the English Channel and was part of the backup force on D-Day, unloading troops and vehicles at Omaha Beach in Normandy, France, on June 7, 1944. The LST-325 was taken out of service after World War II, but was recommissioned in 1951. For 10 years it was used by Military Sea Transport Service in arctic operations for building radar outposts along the coasts of Canada and Greenland. The ship was transferred to Greece in 1964, where it served in the Greek Navy until 1999. The Greek Navy had plans to scrap the LST-325 when USS Ship Memorial Inc. acquired it in 2000 and sailed it 6,500 miles back to the U.S. After LST-325 was restored and configured to how it was during the war, it found a homeport in Evansville, Ind., the city that produced 167 LSTs during World War II – more than any other inland shipyard. The LST-325 Memorial, which features a $3 million dock facility, opened in 2005. The ship is open for tours at the memorial site and makes trips to other cities, including Pittsburgh this August. It was an honor to have the LST-325 dock at the port. To think this ship took part in one of the most revered occasions in our nation’s wartime history, the D-Day invasion – the chronicle of this vessel from the time of her launch in 1942 is incredible.

Port Director Phil Wilzbacher (right) chats with LST-325 crew while the World War II ship refuels at the Port of Indiana-Mount Vernon.

Port welcomes school tours

On March 12, students from Yankeetown School in Newburgh, Ind., visited the port. The fourth graders were part of teachers Teresa Kramer and Chad McAtee’s classes studying Indiana history. After watching a short cartoon about the Ports of Indiana, the group took a bus tour around the port and got a close-up look at our dock operations. Here’s a sampling of what these enterprising young minds took away from their port visit: “I saw a big barge that had fertilizer in it and those trains that had coal in it. I had a good time! We never get to see that stuff every day.” – Katy “My favorite part was when we got to see the water and crane. Maybe, you should do that more often, because you did wonderful explaining everything.” – Brianna “Is working there very hard? I was just wondering because if I don’t become an NBA player I might want to work there.” – Tyler Port tours are available to schools. They are especially popular for fourth grade classes studying Indiana history. If you are interested in setting one up, please contact Sally Denning at the port office. Contact Phil Wilzbacher at (812) 838-4382; pwilzbacher@portsofindiana.com

www.portsofindiana.com · Spring 2010 11

Paving of the dock near Eagle Steel is part of $400,000 in improvements planned for the Port of IndianaJeffersonville in 2010.

PORT REPORT Matt Smolek Port Director

PORT OF INDIANA – JEFFERSONVILLE

Port improvements keep commerce flowing smoothly JEFFERSONVILLE, Ind. – The mission of the Ports of Indiana is to develop and maintain a world-class port system that grows our state’s economy. We realize that being “world-class” takes continual improvement and hence – continual investment. This year, we plan on spending roughly $400,000 on projects that will improve the safety, efficiency and appearance of the Port of Indiana-Jeffersonville. This August, we will install a new railroad crossing at the intersection of Port Road and Utica Pike. The Ports of Indiana is partnering with the Indiana Department of Transportation on this project which will improve the safety of the intersection and comply with state mandates. There will be a minor detour during construction, but we plan on working with our port companies to keep the disturbance to a minimum. This April, we paved a section of the dock located near Eagle Steel that connects Loop Road along the outer edge of the port. This is the first time this site has been paved. More than 20 years ago, the area was covered in “chip and seal,” a mix of asphalt and gravel, to prevent erosion. The surface was only meant to be a temporary hold but held up far beyond expectations, only recently requiring an update. On our roadways, we are in the process of making sign upgrades, improving the lighting at stops and adding new signage in different areas. These upgrades may be small, but they will have a positive impact on the appearance and safety around the port. We will also be cleaning ditches on port property over the summer months – removing silt and vegetation – to improve storm water drainage. The port administration building is also receiving some updates with the addition of a metal roof, new conference room and three offices. Two of the new offices are available for rent, and port companies are welcome to rent the conference room for meetings on a daily basis. Please contact the port office if you are interested.

12 · Spring 2010 PORTSIDE MAGAZINE

Duke Energy energized a new 138 KV transmission line through the Port of Indiana-Jeffersonville in March.

Duke Energy invests in port’s infrastructure

We are not the only one investing in the port’s future. On March 16, Duke Energy, electricity provider at the port, energized a new 138 KV transmission line to connect the Port of IndianaJeffersonville and the Charlestown substation. Duke Energy began the $10 million transmission project in April of 2008 to improve electrical reliability in the port and surrounding area. The project has been in Duke Energy’s growth plans for many years. The new transmission line also runs through the nearby River Ridge Commerce Center. Duke hopes this new line will facilitate industrial expansion in the port and the commerce center for many years to come. Contact Matt Smolek at (812) 283-9662; msmolek@portsofindiana.com

Katoen Natie, a third-party logistics provider, offers clients a variety of services, including warehousing, packaging and distribution. (Photo courtesy of Katoen Natie.)

David Haniford General Counsel

Jody Peacock Director of Corporate Aﬀairs

Ports’ newest foreign-trade zone customer sees dramatic growth GARY, Ind. – When Katoen Natie joined Foreign-Trade Zone #152, the company was looking to grow its business. But to outgrow its existing facility within one year was certainly a surprise. In February 2009, Katoen Natie (KTN) became the newest addition to the Ports of Indiana’s three foreign-trade zones (FTZs). The Gary facility is part of FTZ #152, which is based out of the Port of Indiana-Burns Harbor. KTN has six locations in the nation and three are located in an FTZ. “Since we acquired the FTZ in Gary, we have seen a huge increase in our workload and a huge increase in our inventory totals,” said Ben Swank, president of specialty chemicals for KTN. “So much so we had to secure an overflow warehouse. It is definitely a good thing.” The 750,000-square-foot warehouse, opened in 2000, does a variety of logistics duties – including bulk handling, transloading, packaging and storage – for metals, plastics and chemicals. Katoen Natie was established in 1855 at the Port of Antwerp, handling goods on the dock. Cargos handled included coffee, cocoa, wool, and most of all, cotton, which gave the company its name – Katoen means “cotton” in Dutch. Today the company employs 9,300 people Katoen Natie employs 9,300 people in 24 countries. in 24 countries. (Photo courtesy of Katoen Natie.) The third-party logistics provider offers a variety of services, including warehousing, packaging, distribution, quality-control and value-added services for industries as broad as retail, automotive and specialty chemicals. “Our goal for all of our facilities is always to fully maximize our

assets,” Swank said. “To do new things, to bring more value to our customers, to optimize our costs. FTZs help us do that.” The additional warehouse space allowed KTN to double the monthly average of materials stored – now usually around 175,000 tons. According to Brandon Huynh, vice president of sales for KTN, the growth was fueled by an abrupt turnaround in domestic demand for some of its products. When domestic demand was low it caused stateside production to decrease. As the economy started to turn the corner, demand spiked suddenly and domestic producers could not keep up, which drove substantial increases in KTN’s business. Huynh expects KTN’s 2010 growth to be about five percent. “We are a global company and can spread the word much faster to help promote the FTZ,” Huynh said. “We have the whole world we can deal with, not just state and local business.” FTZs are areas considered outside of U.S. Customs and Border Patrol territory. This allows companies within the zones to Foreign-Trade Zone #152 reduce or delay the payment Port of Indiana-Burns Harbor of customs duties on foreign 6625 S. Boundary Drive products brought in, making Portage, IN 46368 locations in the U.S. cost(219) 787-8636 competitive with overseas facilities. The Ports of Indiana Foreign-Trade Zone #170 is a statewide grantee of FTZs Port of Indiana-Jeffersonville and operates zones at each of its 5100 Port Road three ports. Jeffersonville, IN 47130 (812) 283-9662

Foreign-Trade Zone #177

Port of Indiana-Mount Vernon 2751 Bluff Road Mount Vernon, IN 47620 (812) 838-4382

Contact Jody Peacock at (317) 233-6225; jpeacock@portsoﬁndiana.com Contact David Haniford at (317) 232-9204; dhaniford@portsoﬁndiana.com

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150 W. Market St., Suite 100, Indianapolis, IN 46204 (317) 232-9200 / fx (317) 232-0137 / info@portsofindiana.com www.portsofindiana.com www.indianalogistics.com PORT OF INDIANA BURNS HARBOR 6625 S. Boundary Drive Portage, IN 46368 219-787-8636 ADS Logistics Roll & Hold Division 725 George Nelson Drive Portage, IN 46368 219-787-5015 Transportation, warehousing, inventory management Aqua-Land Communications Inc. 60 Stagecoach Road Portage, IN 46368 219-762-1541 Communications provider ArcelorMittal Burns Harbor 250 W. U.S. Highway 12 Burns Harbor, IN 46304 219-787-2120 Steel mill Behr Iron & Steel 6735 Waterway Drive Portage, IN 46368 219-787-1020 Scrap bailing operation Beta Steel Corp. 6500 S. Boundary Drive Portage, IN 46368 219-787-8200 Hot-rolled steel processing 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