Portside Magazine - Summer 2008 by Ports of Indiana

A Ports of Indiana Publication

Port of Indiana-Mount Vernon

Table of Contents From the CEO:

More than a name: ......................................................................... 4 2008 legislation officially changes organization’s name to “Ports of Indiana”

Eagle Steel expands Jeffersonville facility . .................................. 5 150 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, CEO (317) 232-9200; rcooper@portsofindiana.com Brian Nutter, Port Director - Jeffersonville (812) 283-9662; bnutter@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 Tony Walker, Controller (317) 232-6227; twalker@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

Ports of Indiana wins top international award for website .......... 6 Tanco invests $2.4 million in expansions at two Indiana ports .... 7 PORT REPORTS Mount Vernon: Jeffersonville: Burns Harbor:

Port shipments start strong in 2008 ....................... 8 Finishing a good year, starting a great one............... 9 9.25 million tons cross port’s docks, roads and rails in 2007 ........................................... 10

News & Notes................................................................................ 11 Port home to new DNR boat Ludington retires after 33 years at the port Port of Indiana-Burns Harbor celebrates 39th international shipping season

Foreign Trade: FTZ expert visits Port of Indiana-Burns Harbor........................... 12 Enviro•Focus : Jeffersonville port recycling dredge material as soil additive.......13 Ports of Indiana Directory............................................................ 14

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www.portsofindiana.com · Summer 2008 3

FROM THE CEO

More than a name

2008 legislation ofﬁcially changes organization’s name to “Ports of Indiana” It’s official! On July 1, the organization previously known as the “Indiana Port Commission” became the “Ports of Indiana.” While “Ports of Indiana” has been the marketing identity of the organization for years, legislation making it our legal name was initiated earlier this year. Sponsored by State Rep. Steve Stemler (a former port commissioner) of Jeffersonville, the bill sailed through both houses and was signed by Gov. Mitch Daniels this spring. This name change is very important to our organization for many reasons. First, the name “Ports of Indiana” identifies us as one organization operating multiple ports. Second, it is much more consistent with industry standards where our counterparts are the Port of Los Angeles, Port of Seattle, Port of New York/New Jersey, Port of New Orleans, etc.

Rich Cooper

Chief Executive Oﬃcer, Ports of Indiana

When our organization was first created in 1961, there were not any ports in Indiana. There was only a commission made up of five members. Nine years later we opened our first port on Lake Michigan, then six years later we christened our first Ohio River port in Mount Vernon and, in 1985, our third port became a reality in Jeffersonville. Now Indiana has a thriving system of three ports totaling 2,300 acres and shipping nearly $2 billion of cargo per year. For years, we have marketed ourselves as the “Ports of Indiana” – website, brochures, promotional items – but there have always been inconsistencies since the legislative statute referred to the organization as the “Indiana Port Commission.” This change fixes that. Now all materials coming from this organization will only use the name “Ports of Indiana.” This name change will not affect how we operate. We are still governed by a board – the Ports of Indiana commission. But the term “commission” refers only to our board and not the entire organization as was previously the case in our legislative statute. This should also eliminate the frequent cases of mistaken identity we get from people thinking we are the “Indiana Pork Commission,” “Indiana Court Commission” or “Indiana Park Commission.” Beyond clearing up confusion and inconsistencies, this change highlights an important focus for our organization. By statute, we are created as “a body both corporate and politic,” which makes us unusual in that we are created by government to act like a business. And that is exactly what we do. We operate as a business – not a regulatory agency of government. As long as the word “commission” was in our organization’s name, people incorrectly assumed that we were a policing body that regulates activities at ports. That is not the case. We operate much like our entrepreneurial business partners located at our ports. We self-fund our own operations and do not rely on tax dollars. Special thanks go to Rep. Stemler, the legislature, our board and Gov. Daniels for helping us make this important transition. We’ve accomplished so much in these last few years but, quite frankly, we’ve just scratched the surface on the growth potential for the Ports of Indiana. From this point forward, we would like to request that our customers and all stakeholders refer to our organization as the Ports of Indiana. Individually, each port has a specific name based on its location. Those are: • Port of Indiana-Burns Harbor • Port of Indiana-Mount Vernon • Port of Indiana-Jeﬀersonville We believe the “official name change” will provide our family of port businesses more national and global visibility than ever before. Should you have any questions or comments, please don’t hesitate to contact me or any member of our management team. As always, we value your input and thank you for your assistance.

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Eagle Steel expands Jeffersonville facility

Chuck Moore Eagle Steel Eagle Steel, a long-time tenant of the Port of Indiana-Jeﬀersonville, recently completed a $3 million expansion of its facility.

JEFFERSONVILLE, Ind. – Eagle Steel Products put the finishing touches on a $3 million expansion at the Port of Indiana-Jeffersonville this May. The expansion added 90,000 square feet to its riverfront facility which now encompasses a total of 270,000 square feet. The company’s growth will create 25 new jobs by 2009. Chuck Moore, president of Eagle Steel, said business is growing and the expansion provides Eagle Steel more room to work with fellow port tenant Steel Dynamics on pre-painted steel products. Steel Dynamics completed a $40 million expansion at the port in 2007. “Eagle Steel was the first steel company to locate at the port,” said Brian Nutter, port director at the Port of Indiana-Jeffersonville. “We are excited to see the company grow. By expanding their businesses, Eagle Steel and Steel Dynamics have added to the long list of complementary services this port provides. It is truly a one-stop shop for steel customers.” According to Moore, most of his customers receive significant benefits from Eagle Steel’s river access at the port. “Bringing the product in by the river saves customers $5 to $20 a ton,” he said. Founded in 1982 and located at the port since 1988, Eagle Steel

processes and fabricates steel for the automotive, appliance, construction and industrial markets. Specializing in cutting and packaging of coiled steel, the company brings in large rolls of raw steel from around the world, including Pennsylvania and northern Indiana, and transforms them into customer-defined shapes and sizes. As a result of the expansion, Eagle Steel is looking to hire material handlers and supervisors in 2008, adding to its current staff of more than 80 employees. The Indiana Economic Development Corp. offered Eagle Steel up to $150,000 in performance-based tax credits and $35,000 in training grants based on plans for job creation. The city of Jeffersonville also provided a property tax abatement. At the 2008 Southern Indiana Business Awards, Eagle Steel was awarded the Greenebaum, Doll & McDonald Economic Impact Award by One Southern Indiana. The award honors a company who had a positive impact on the local economy with business growth and job creation. According to Matt Hall, vice president of economic development at One Southern Indiana, Eagle’s expansion was a big part of earning the award. “Eagle has a strong presence at the steel campus in Jeffersonville,” Hall said. “We’re thrilled they chose Indiana as their home.”

www.portsofindiana.com · Summer 2008 5

Ports of Indiana wins top international award for website ALEXANDRIA, Va. – The American Association of Port Authorities (AAPA) has announced that the Ports of Indiana was one of only 10 port authorities in the Western Hemisphere to win top awards in its annual communications competition. The Ports of Indiana received the only Award of Excellence given for a website. AAPA, the leading trade association representing 160 public ports in the Western Hemisphere, will present awards to 22 ports for exemplary public relations at 2008 Annual Convention in Anchorage, Alaska, in September. Other top award winners were the Port of Los Angeles and Port of Long Beach (three each), Georgia Ports Authority, Port of Portland, Port Canaveral, Port of Stockton, Port of Vancouver, Port of Virginia and Port of Charleston. “This is a great honor for our organization,” said Rich Cooper, chief executive officer for the Ports of Indiana. “We are very proud to have the Ports of Indiana recognized among the largest ports in North America. Our website is the foundation of our communications with the world. It’s one of the most important tools we have to attract

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business to our ports and our state. This award and the positive feedback we get from customers really validate our efforts to market our ports and the companies located here.” The AAPA’s Communication Awards program has recognized achievements in port authority communications for 42 years. This year, there were 156 entries from ports around the Western Hemisphere submitted in 13 categories. Of the 68 total awards, there were 16 given for Excellence, 33 for Merit and 19 for Honorable Mentions. Entries were judged by a panel of communications professionals from the Washington, D.C., area. This is the third Award of Excellence for the Ports of Indiana in its 47-year history. Its other winning entries were for advertising in 2006 and an overall communications campaign in 2003. Since 2002, the Ports of Indiana has won an AAPA communications award every year and eight total. The organization had previously received two awards in the 1990s. Visit the Ports of Indiana website at www.portsofindiana.com.

In addition to the two white fertilizer tanks, Tanco Clark Maritime built a pipeline and truck loading tracks at its Port of Indiana-Jeﬀersonville facility.

Tanco invests $2.4 million in expansions at two Indiana ports Two Tanco businesses expanded operations at Ports of Indiana facilities on the Great Lakes and Ohio River in 2007. Tanco Terminals Inc. at the Port of Indiana-Burns Harbor and Tanco Clark Maritime at the Port of Indiana-Jeffersonville each added two tanks to the ports’ landscapes. The bulk liquid storage businesses, both aﬃliates of Wolf Lake Terminals in Hammond, Ind., built the tanks for specific customers. “Both of these customers are long term,” said Kip Middendorf, business manager of all affiliated companies and part owner of Tanco Clark Maritime. “This is good for both Tanco and the ports.” At the Port of Indiana-Burns Harbor, Tanco Terminals built two new tanks for Seneca Petroleum, an existing customer. Based in Crestwood, Ill., Seneca Petroleum is a family-owned business that manufactures and distributes liquid asphalt products. Tanco Terminals invested $800,000 to build the two tanks, which hold approximately 630,000 and 40,000 gallons each. “The new tanks allow a greater asphalt blending ability,” said Ken Long, operator of Tanco Terminals and part owner of Tanco Clark Maritime. “This results in more asphalt blends.”

In addition to two liquid fertilizer tanks that hold more than two million gallons combined, Tanco Clark Maritime built a pipeline and automated truck loading tracks, which allow trucks to load 24 hours a day. The cost for the project was $1.6 million. For both Tanco facilities, the new tanks became operational during 2007, making 2008 the first full year or operation. The expansions created a new full-time job as well as seasonal part-time help at each location. “Tanco Terminals is off to a great start in 2008 with liquid bulk tonnage volumes at the port well ahead of 2007,” said Peter Laman, port director at the Port of Indiana-Burns Harbor. Built in 1978, Tanco Terminals was the fifth business to locate at the Port of Indiana-Burns Harbor. When looking to expand in the Louisville area, Tanco chose a familiar partner. “Our good experience at the Port of Indiana-Burns Harbor led us into entering a lease at the Port of Indiana-Jeffersonville,” Middendorf said. “We have a great partnership with the Ports of Indiana. We enjoy a significant competitive advantage by operating at the ports.”

These new blends help Seneca meet changing state and federal road requirements and keep it competitive with other asphalt companies in the region. Long said the barge access is very important for Seneca’s operation. Since the new tanks were built, Seneca has expanded its shipping area served by the Burns Harbor location to include Michigan, Indiana, Illinois and Wisconsin. At Tanco Clark Maritime, the tanks were built for new customer Transammonia. Transammonia, one of the world’s largest private fertilizer merchandising and trading company with offices around the world, was only selling its products through distributors in southern Indiana and Kentucky. Since working with Tanco Clark Maritime, it now sells direct to the customers.

Tanco Terminals invested $800,000 to build two tanks at the Port of Indiana-Burns Harbor.

www.portsofindiana.com · Summer 2008 7

PORT REPORT Phil Wilzbacher Port Director

Port of Indiana-Mount Vernon has as many as 300 construction workers onsite each day as Aventine Renewable Energy continues construction of the state’s largest ethanol plant. Visit www.aventinerei.com to see updated aerial photos of the project.

PORT OF INDIANA – MOUNT VERNON

Port shipments start strong in 2008 Port shipments started strong this year and show no signs of letting up. Through six months, 2008 tonnage is running well ahead of last year. Increases in general cargoes, grain products, cement and coal contributed to a 27 percent increase in tonnage through June. In fact, every single month has improved upon the 2007 figures, as well as the month-by-month averages for the last five years.

Question: What do coal, corn, wheat, soybeans, soybean meal, soybean oil, potash, urea, dry fertilizer, liquid fertilizer, petroleum coke, cement, talc, barite, steel coils and roofing shingles have in common?

To summarize 2007, it’s fair to say it was a year that changed the face of the port. In September 2006, Aventine Renewable Energy officially announced the selection of Port of Indiana-Mount Vernon as the site for construction of a new ethanol plant. During July 2007, Aventine broke ground on what is to be Indiana’s largest ethanol plant. The scope of the project is impressive with up to 300 construction trade workers on site for a given day. For a view of the construction progress, log onto Aventine’s website: www.aventinerei.com and click on the “Mt. Vernon Construction Site” tab. Every few weeks an updated aerial photo is posted. Contact Phil Wilzbacher at (812) 833-2166; pwilzbacher@portsoﬁndiana.com

Answer: The Port of Indiana-Mount Vernon. The list represents the products and commodities handled by the industries at the port during last year – totaling 3.2 million tons. Following 2006, a year the marked the highest tonnage level to move through the port since 1998, business forecasts provided by port companies indicated that 2007 would have its challenges across the mix of cargoes. Although the 2007 tonnage did not hit the 2006 mark, shipments were right in line with the port’s five year average. Looking back at 2007 As one of the 2007 highlights, I would like to point out a repeat strong performance on the part of one of our port companies. Cemex, who receives inbound cement by barge and distributes it inland by truck, hit a record level of cement tonnage in 2006 and did it again in 2007– surpassing 2006’s tonnage by a significant margin. In addition to the increase in cement tonnage, there was also an increase in the tonnage of fertilizer handled by Agrium and TPG-Mount Vernon Marine.

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Workers unload a barge on Pier 3 at the Port of Indiana-Mount Vernon.

PORT REPORT Brian Nutter Port Director

PORT OF INDIANA – JEFFERSONVILLE

Right: Revel Barton works on rail signals at the Port of Indiana-Jeﬀersonville.

Finishing a good year, starting a great one Last year was not a record setter but it was nonetheless a very respectable and productive year at the Port of Indiana-Jeffersonville. We moved over 1.4 million tons of cargo across the docks along with rail movements of more than 17,700 cars. We saw expansions at several businesses including Eagle Steel, FedEx, Steel Dynamics and MG Rail. We welcomed Namasco Steel to the port in November when it purchased the Scan Steel operation on Maritime Road. The port also participated with the Mississippi Valley Freight Coalition in developing a logistics training program for public sector employees. The basis of the program was to give elected officials and government decision makers an understanding of freight transportation and its impact on the economy, environment and energy. The Jeffersonville port is featured in a 15-minute video that is a part of the training course. If interested, you can view the segment or the entire program at the following website: http://wistrans.org/ cfire/Research/CFIRE/CFIRE01-02/online%20course.html

Kenzie Cosner CTLC

Bob Parker Namasco

Robert Wooldridge TMSi

New faces

There are a few new faces around the port. I would like to introduce Kenzie Cosner, terminal manager at CTLC; Bob Parker, general manager at Namasco; and Robert Wooldridge, operations manager at TMSi. I am continually impressed with the caliber of professionals we have leading our port companies. On behalf of the port, we hope you enjoy Jeffersonville as much as we do.

A big thanks

Whenever I bring potential customers on a tour through the port they always remark at the campus-like atmosphere and the orderly appearance. We appreciate how each business takes pride in its own property, but I also have to pay credit to Revel Barton who is the port’s single-handed maintenance department. Revel will tell you his job description is pretty simple, “If it’s broken I fix it, if it grows I mow it.” In addition to cutting grass along the roadways, Revel also makes sure the signals at rail crossings are in order, maintains all of our equipment and, regardless of the time of day or night, he keeps the roads salted and plowed during winter storms. When you see him out on the tractor this summer give him a wave. I know he’ll appreciate it. The Port of Indiana-Jeﬀersonville has handled more than 98,000 tons of steel in 2008.

Contact Brian Nutter at (812) 282-2096; bnutter@portsoﬁndiana.com

www.portsofindiana.com · Summer 2008 9

PORT REPORT Peter Laman Port Director

PORT OF INDIANA – BURNS HARBOR

9.25 million tons cross port’s docks, roads and rails in 2007 I’d like to start my first column by thanking everyone for the warm welcome I’ve received since I arrived here in December. It’s been an exciting few months as I’ve learned my way around the port and re-accustomed myself to the weather changes of northern Indiana. No matter how long you’ve been here, the shear volume of cargo moving through this port never ceases to amaze. Last year, the Port of Indiana-Burns Harbor handled 9.25 million tons of cargo by ship, barge, rail and truck. This included more than 290,000 trucks and 10,000 rail cars from the Norfolk Southern and Indiana Harbor Belt railroads. This resulted in more than 7.6 million tons of land-based cargo shipments in and out of the port. On the maritime side, 98 ships called on the port in 2007. Our port businesses remained strong and comparable to five-year averages despite falling off from the previous two record-setting years. Waterborne shipping across the country faced significant challenges in 2007 because of the weak U.S. dollar against the strength of the euro. Limestone and fertilizer shipments kept pace with previous years due to respective high demands for limestone in the smoke stack scrubbing process and fertilizer demand for the anticipated record corn planting this season. Total tonnage across the docks in 2007 was 1.6 million tons. Steel, grain, fertilizer, salt, coke, limestone, dry bulk and liquid bulk comprised the main cargoes.

John Hirt Paul Abernethy Matt Smolek Feralloy Feralloy CTLC for account management and new business development in the Upper Midwest. Matt is renting office space in our port administration building, which now gives CGB a presence at all three of our ports – CGB is the first company to do this. Congratulations go out to John Hirt and Paul Abernethy of Feralloy on their recent promotions. John is the new vice president and general manager of the company’s Midwest division. Paul has replaced John as general manager of the Indiana Pickling & Processing and Feralloy Processing Co. facilities, as well as continuing to be responsible for Feralloy’s Oregon partners. Contact Peter Laman at (219)787-5101; plaman@portsoﬁndiana.com

Around the port

In 2007, we welcomed the newest business to call the Port of IndianaBurns Harbor home. Metro International is a trade services company that is an industry leader in warehousing, distribution and logistics services. Metro operates a 640,000-square-foot warehouse located just off of George Nelson Drive at the north end of the port. The warehouse is designated as a foreign-trade zone and currently stores aluminum ingots. I would like to officially welcome Metro International to our port community. I’d also like to introduce a new face on the port. Matt Smolek is a sales manager for Consolidated Terminals and Logistics Co. (CTLC), a division of CGB Enterprises Inc. A Purdue graduate, he is responsible 10 · Summer 2008 PORTSIDE MAGAZINE

More than 144,000 tons of steel has moved through the Port of Indiana-Burns Harbor in 2008.

news & notes

CEO of Ports of Indiana. “She was an integral part of this port’s growth and a fixture of loyalty and dedication in this organization.” Ludington enjoyed watching the port grow over the years with more facilities, tenants and cargo. The port was dedicated in July of 1970 and Ludington started in March of 1975. At that point there were a few tenants. Today the port handles as much as $2 billion per year in shipments and is home to nearly 30 companies. “What I will miss most are the people I worked with every day,” she said. “They became a second family to me. There are a lot of wonderful people from our ports and tenants who have passed through my life in the 33 years I was with the port.” Ludington has moved to Illinois and plans to fill her retirement days spending more time with family and friends and traveling to see relatives out of state. “We will miss Sally and her cheerful personality she brought to work all those years,” said Peter Laman, port director at Burns Harbor. “We wish her the best in her well-earned retirement.”

Due to the central location, the Department of Natural Resources new enforcement boat docks at the Port of Indiana-Burns Harbor.

Port home to new DNR boat In a partnership between the Port of Indiana-Burns Harbor and the Law Enforcement Division of the Department of Natural Resources Michigan City office, a new enforcement boat has been permanently assigned to the port. “This is a combined effort to make everyone safer both in the water and on the docks,” said Warren Fasone, security manager for the Ports of Indiana. The boat was purchased by DNR through a federal port security grant. The District 10 DNR office, which monitors seven counties in northwest Indiana, and the three Ohio River DNR law enforcement divisions received a combined $1.2 million grant. The funds were split evenly between the four districts with each receiving an identical boat and security equipment, including a side-scan sonar and thermal imaging equipment. According to Lt. Jerry Sheperd, District 10 commander, the Port of Indiana-Burns Harbor was selected due to its central location on the lakefront. This will allow quick responses from DNR and the visibility of the boat at the port can also deter illegal activities.

Port of Indiana-Burns Harbor celebrates 39th international shipping season On April 18, the Marine Vessel Isa brought more than just steel coils to the Port of Indiana-Burns Harbor... The ship also brought an opening to the port’s 39th international shipping season. “The arrival of the first ocean-going vessel of the year is always a significant event for the port,” said Peter Laman, port director at Port of Indiana-Burns Harbor. “We are open year-round for barge and lake traffic but this signals the start of another international shipping season at the port. It brings much-needed goods from global markets to local companies and it means jobs for the longshoremen, truckers and many others involved in logistics associated with the shipping industry in our community.” The Great Lakes/St. Lawrence Seaway, also known as “Highway H20,” brings ships from around the world into the nation’s heartland from April to December. The Isa, built in Japan in 1999, brought 8,610 metric tons of steel coils that were loaded in Ijmuiden, Holland. This added to the more than $1.7 billion in steel shipments the port has handled in the last four years.

“This new addition will greatly enhance the ability to monitor the harbor waters for illegal activity,” Fasone said. “By being berthed in our port, this boat gives DNR the capability to respond to everything from fishing and recreational boaters entering restricted areas to more extreme illegal activities such as possible drug trafficking or terrorism.”

Ludington retires after 33 years at the port Sally Ludington, senior administrative assistant at the Port of Indiana-Burns Harbor, said goodbye to the Ports of Indiana this year after 33 years of service. During her tenure, she saw the facility develop from nothing but sand to a thriving Great Lakes port. “We thank Sally for her years of dedicated service at the Port of Indiana-Burns Harbor,” said Rich Cooper,

The Marine Vessel Isa brought 8,610 metric tons of steel coils to the Port of Indiana-Burns Harbor on April 18 signaling the start of the port’s 39th international shipping season.

www.portsofindiana.com · Summer 2008 11

David Haniford General Counsel

Jody Peacock Director of Corporate Aﬀairs Attorney Scott Taylor of Miller & Co. from Kansas City talks about the opportunities available for foreign-trade zones at the Port of Indiana-Burns Harbor.

Foreign Trade: FTZ expert visits Port of Indiana-Burns Harbor Foreign-trade zone consultant Scott Taylor gave business and community leaders the ABCs of FTZs during a special presentation at the Port of Indiana-Burns Harbor in April. Taylor’s presentation was hosted by the Ports of Indiana for a “Coffee & Commerce” session that allowed port customers and community leaders to learn more about the opportunities available for FTZ users. The Ports of Indiana is a statewide grantee of FTZs and all three of its port facilities are designated as FTZs.

duties because products inside a zone are not recognized as being in the United States. FTZs have greater benefit for some industries than others. Taylor listed some of the main industry users of FTZs as motor vehicles, oil refining, pharmaceuticals, electronics and consumer goods. Taylor worked through many examples showing the financial savings of FTZs and explained how any company can use formulas to determine its own potential benefits.

Taylor, an attorney with Miller & Co. in Kansas City, has 10 years of professional experience with FTZs. Miller & Co. is a well-recognized leader in international trade, customs and FTZ law. With clients in 47 states and Puerto Rico, as well as major trading centers around the world, the firm works with everyone from large multinational enterprises to corporations, partnerships, associations, governmental entities and individuals.

While the application process for activating an FTZ often looks daunting with plenty of paperwork, Taylor broke it down into a simple list of required materials and discussed common issues that arise. Taylor also did an extensive question-and-answer session with the audience and spoke one-on-one with many attendees.

While the audience was mostly northwest Indiana officials, the FTZ session did draw port and business leaders from Indiana’s Ohio River ports in Jeffersonville and Mount Vernon. Taylor presented a general overview to the group of FTZ opportunities and limitations. He also went over the process of determining the beneﬁt of an FTZ for a company and the application process.

Based on the positive response from this session, the Ports of Indiana is planning to host additional “Coffee & Commerce” discussions in the future at all three ports. If you are interested in learning more about FTZs or another topic related to the port industry, please contact us.

As a brief historic overview, Taylor explained how FTZs were created in 1934 as part of President Franklin Roosevelt’s “New Deal” legislation, allowing the U.S. to compete with foreign manufacturers. Managed by the U.S. Foreign-Trade Zone Board, FTZs are not a U.S. Customs Service program. The companies that take advantage of FTZs can see significant savings in customs 12 · Summer 2008 PORTSIDE MAGAZINE

Taylor’s presentation is available online at www.portsofindiana.com.

Ports of Indiana Foreign-Trade Zone Contacts: Jody Peacock, Director of Corporate Affairs (317) 233-6225; jpeacock@portsofindiana.com David Haniford, General Counsel (317) 232-9204; dhaniford@portsofindiana.com

Enviro•Focus

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

Jeffersonville port recycling dredge material as soil additive You’ve heard of “ashes to ashes, dust to dust” – well how about “mud to dirt?” The Port of Indiana-Jeffersonville is working with Koetter & Smith Inc. of Borden, Ind., to remove dredge material from the Ohio River and ultimately reuse it as an additive in soil products.

If this special waste meets specific criteria, like the port’s dredge material, it is classified for beneficial reuse. One of the key requirements is to have someone who has a need for that specific material.

The material, which first emerges from the river in a chocolate milklike consistency, is pumped out from in front of the port’s docks to maintain adequate depth for barge traffic. The dredge material – full of silt and fine clays washed off the upstream river banks – ﬂows through a system of pipes onto a nearby containment area. As sediment settles, the remaining water is siphoned back into the river. Once it reaches the appropriate texture, Koetter & Smith will remove the dredge material. The drying process takes roughly two to three years.

Brian Nutter, port director at Jeffersonville, found this partnership with Koetter & Smith at an agricultural forum he was serving on along with a representative from the company. “It’s a win-win for everyone,” Nutter said. “It takes a material we have no use for and puts it back into a good environmental use.”

Koetter & Smith will screen and mix the dredge material with compost and wood waste to create an enriched soil additive. The material has been sample tested and found to be free of contaminates. “This can be used for several different things,” said Matt Smith of Koetter & Smith. Options include a soil sold to construction companies to grow grass seed and bagged soil sold at stores. Were it not for this project, the material would need to be trucked to a landfill at a significant cost. Environmental regulation designates dredge material disposed of in this manner as “special waste,” which carries an extra fee and must be placed in a secure landfill.

Koetter & Smith screens dredge material previously removed from the river bottom at the Port of Indiana-Jeﬀersonville. Once mixed with wood chips and sawdust, the material will be sold as premium topsoil mix.

5146 Maritime Road, Jeffersonville, IN 47130

Founded in 2004, a joint venture by the Kasle family involved in Steel Processing in Michigan and Automatic Feed a family owned business based in Napoleon Ohio, and the fabricators of integrated coil feed systems. Kasle Metal Processing, LLC is located on 14.5 acres in the Port of Indiana – Jeffersonville; just north of Louisville, Kentucky. We produce first operation blanks for the Ford Super Duty, Ford Explorer, GM Malibu and other fine vehicles. We are proud to be a part of the success of our community and that of our customers.

www.portsofindiana.com · Summer 2008 13

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 PORT OF INDIANA BURNS HARBOR 6625 S. Boundary Drive Portage, IN 46368 219-787-8638