Portside Magazine - Winter 2011

A Ports of Indiana Publication · Winter 2011

Port operations manager buys old shrimp boat in Mississippi and pilots it home to Indiana

Brian Sieg tells the story of a 1,000-mile journey up the inland waterways on his boat “Jezebelle”

2010 Year in Review: Ports of Indiana ships most cargo since 2006

In 2010, barge traffic at the Port of Indiana-Jeffersonville increased 29 percent over the previous year.

TABLE OF CONTENTS FROM THE CEO New York rule threatens Great Lakes shipping .............................................................. 4 2010 YEAR IN REVIEW Ports of Indiana ships most cargo since 2006 .................................................................... 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

COVER STORY “Our Amazing Journey” ............................................................................................. 6 Port operations manager buys old shrimp boat in Mississippi and pilots it home to Indiana

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

Ferguson, Gibson reappointed to ports commission......................................................... 14 Commission approves budget, elects officers Port employees mark milestones Norfolk Southern to provide rail-switching at Burns Harbor ........................................ 15 PORT REPORTS Burns Harbor: Port shipments increase 43 percent in 2010 ................................. 16 Mount Vernon: Looking back at a year of growth ....................................................... 17 Jeffersonville: Port handles 27 percent increase in 2010 shipments ........................ 18 ENVIRO-FOCUS South Shore Clean Cities helps port secure hybrid vehicle ............................................. 19

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

SUBSCRIBE TO PORTSIDE! Sign up now and receive your free copy of Portside Magazine. Contact Liz Folkerts, (317) 232-9205; lfolkerts@portsofindiana.com

ADVERTISER INDEX Consolidated Grain and Barge .... Back Cover Jemison Marine ..............................................9 Mount Vernon Transfer Terminal ............... 15 One Southern Indiana.......Inside Front Cover PC Home Centers ..................................... 19 RiverWorks Discovery ................................ 11

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

www.portsofindiana.com · Winter 2011 3

FROM THE CEO

New York rule threatens Great Lakes shipping

Rich Cooper Chief Executive Officer, Ports of Indiana

New ballast water regulations proposed by the state of New York threaten to shut down international shipping on the Great Lakes.

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Last year was very successful for the Ports of Indiana. Overall shipments grew by eight percent and tonnage at our Lake Michigan port increased by 43 percent. We are poised to continue this growth, but a new rule imposed by the state of New York threatens to shut down international shipping on the Great Lakes.

New York’s Department of Environmental Conservation (NYDEC) adopted new ballast water regulations that require technology which does not yet exist. By 2013, standards will go into effect requiring ships’ ballast water to be cleaner than drinking water. In February, the NYDEC granted 18-month extensions for when the rules take effect because… “There is a shortage in supply of the technology necessary to meet the limits set forth in the certificate.” While these extensions allow shipping to continue in 2012, this still presents an unreachable goal for Aug. 1, 2013.

The issue is this… ships take on ocean or lake water to maintain balance when they are not fully loaded with cargo. As cargo is loaded, the water is released. If not properly managed, this ballast water can carry non-native species into new environments. The Great Lakes have the most stringent ballast regulations in the world, and many efforts are underway to develop new technologies that will improve treatment systems – but this is not happening quickly enough for some.

Under the original NYDEC rules, ships entering the Great Lakes through the St. Lawrence Seaway would be required to have ballast water treatment systems installed by 2012 that met discharge standards 100 times more stringent than standards issued by the International Maritime Organization (IMO) and 1,000 times more stringent than IMO standards by 2013. These regulations apply to ships that merely transit New York waters – including those that do not engage in ballast water discharge. Because the St. Lawrence Seaway runs through New York’s waters, Seaway commerce is subject to the state’s rules.

There are numerous problems with these regulations, which, if they remain in effect, would shut down the St. Lawrence Seaway and negatively impact the commercial operations of all of U.S. and Canadian ports on the Great Lakes which lie west of New York, including Indiana’s own Burns Harbor.

Experts have confirmed that there is no technology available to achieve the water quality standards dictated by the NYDEC. After an extensive review, the state of Wisconsin recently came to the same conclusions and eliminated regulations that were the same as New York’s.

Ship owners are currently negotiating with their customers for future contracts.

It’s difficult, if not impossible, for them to negotiate these contracts given the kind of uncertainty surrounding the NYDEC regulations. This has already affected future shipments and will continue to have a negative impact on the economic recovery of Great Lakes industry as long as the regulations are in place.

Waterborne shipping along Indiana’s Lake Michigan shoreline generates $14 billion for our state each year. All of this is now threatened. It is hard to believe that one state can shut down the flow of commerce to seven other states and Canada, but that is exactly the case here. The New York regulations must be changed or we all lose.

The Port of Indiana-Burns Harbor shipped 43 percent more cargo in 2010 than the previous year.

2010 YEAR IN REVIEW

Ports of Indiana ships most cargo since 2006 Growth continues at Indiana’s three ports with 8 percent increase in 2010 shipments The Ports of Indiana handled more than 7.7 million tons of cargo at its three ports in 2010 – an increase of eight percent over the previous year. New cargoes and agricultural-related shipments helped propel the state port system to its largest annual tonnage since 2006. The Ports of Indiana experienced business growth on several fronts in 2010, including the purchase of new land, investing $12.5 million in new infrastructure, expansions at five port companies, opening of the ports’ largest facility and extension of foreign-trade zone services to more than 20 counties.

“The Ports of Indiana enjoyed one of the best years on record in 2010,” said Rich Cooper, CEO of the Ports of Indiana. “Despite recent economic troubles, this is the third consecutive year that overall shipments have increased, and this was our second largest total in 12 years. What’s even more exciting is that many of last year’s developments were designed to seed future growth. A very high standard has been set for 2011 and we have to capitalize on the momentum we’ve built.”

In 2010, there were significant increases in shipments of grain, fertilizer and steel, but the biggest impact came from the arrival of new cargoes: ethanol, distiller’s dried grain (DDGs) and “heavy lift” cargoes, which included building-size storage tanks, transformers and ship engines as well as a windmill project that required 11 shiploads of components. Worldwide demand for local grain drove up agricultural shipments for both outbound grain (13 percent) and inbound fertilizer (22 percent), while steel shipments gained momentum from a recovering U.S. manufacturing sector to increase 12 percent compared to 2009.

The Port of Indiana-Burns Harbor shipped 14-times more heavy lift cargo in 2010 than the previous year, which resulted in a 43-percent increase in overall shipments and a total tonnage of 1.8 million. On the Ohio River, the Port of Indiana-Jeffersonville handled 1.7 million tons of cargo, an increase of 27 percent over the previous year and the fourth largest annual total in port history. The Port of Indiana-Mount Vernon recorded its second highest cargo volume since 1996, with more than 4.2 million tons in 2010.

Mount Vernon tonnage got a late boost from the opening of the largest facility ever built at Indiana’s three ports as Aventine Renewable Energy completed construction on a 110-million gallon ethanol plant in December. The 112-acre facility is expected to process 40 million bushels of corn from local farmers in 2011, nearly three-times the port’s corn volume in previous years. With the recent opening of two area ethanol plants – Aventine and nearby Abengoa Bioenergy – Consolidated Grain and Barge expanded its port operations by opening a unique rail-to-barge terminal that began transloading ethanol and distiller’s dried grain midway through 2010. To keep up with this growth, the port expanded its

own boundary with the purchase of 110 acres on its eastern border, bringing the total size of the port to 965 acres with 300 acres available for future development.

In Jeffersonville, four port companies made significant expansions to facilities during 2010. Consolidated Grain and Barge upgraded a barge-loading conveyor, Idemitsu Lubricants America Corp. added petroleum storage, Steel Dynamics began constructing a new distribution facility, and Voss/Clark Industries started working on additional space for new processing equipment.

“Our primary goal is to create a sustainable competitive advantage for our port companies and the state of Indiana,” Cooper said. “It’s very gratifying to see so many of our customers choosing to expand their operations at our ports. These companies have made a long-term commitment investing at our ports and we want to do our part in helping them maximize their ROI.” In 2010, the Ports of Indiana expanded a new foreign-trade zone (FTZ) program to more than 20 counties surrounding the ports. FTZs are special distinctions granted by the U.S. Department of Commerce to help U.S. companies compete in global markets by reducing, postponing or eliminating duties on certain foreign products brought into a pre-approved zone. The Ports of Indiana became the first FTZ grantee in the nation to receive multiple “Alternative Site Framework” designations, which will reduce the time, paperwork and cost for local companies to apply for FTZs. A study released in 2010 showed that Indiana’s ports contribute $5.4 billion to the state economy each year, along with $233 million in tax revenue and 43,000 jobs. This study – conducted by Martin Associates and peer reviewed by economics professors from Indiana University, Purdue University and the University of Notre Dame – showed the annual contribution of Indiana’s ports was more than triple the economic impact The Port of Indiana-Mount Vernon moved measured in 1999. more than 4.2 million tons in 2010. www.portsofindiana.com · Winter 2011 5

Port operations manager buys old shrimp boat in Mississippi and pilots it home to Indiana

Brian Sieg tells the story of a 1,000-mile journey up the inland waterways on his boat “Jezebelle”

I

have always been fascinated with boats, as most of my family and friends know. At age 18, I built my first boat – a 19-foot, jet-drive ski boat powered by a 400 Chevy engine.

I worked at a shipyard for eight years building and operating towboats on the Ohio River before starting my current position with the Ports of Indiana in 1989.

It has always been my dream to retire and spend a few months a year sailing and visiting places I might otherwise not get to see. My wife Mary and I are both river rats. We grew up on the shores of the Ohio River and we’ve always shared a deep love of the water and its beautiful shorelines.

We started considering converting a shrimp boat into a long range live-aboard a few years ago. I had already started refurbishing a 36-foot fiberglass cruiser and soon discovered the boat just wasn’t large enough for what we wanted to use it for. Mary and I both enjoy scuba diving and we’d love to take trips around Florida and the Caribbean someday.

In December of 2009, Mary and I spent 11 days traveling around the Gulf Coast from Texas to Florida looking at boats and, in the first week of January 2010, we purchased our shrimp boat in Biloxi, Miss. In mid-January, my son Will and I spent a few days in Biloxi preparing the boat for a 45-mile trip to a shipyard in Bayou La Batre, Ala., where we had planned to have work done. For the next five months I traveled to Bayou La Batre about every other 6 · Winter 2011 PORTSIDE MAGAZINE

weekend, working and checking on the boat. While at the shipyard, the shrimping gear was removed, the hull checked, sandblasted and repainted, fuel tanks cleaned, we had a swim deck added, and the potable water tanks were sandblasted and repainted.

Some of the characteristics of a shrimp boat that helped us decide • 11 days to make it a live-aboard included: a steel hull designed for stability in • 1,000 miles rough seas, large fuel tanks with over • 18 locks a 10,000-mile range, large potable • $2,300 in fuel water tanks, potential for a large amount of living space, a large back deck for storage, a superstructure that would allow us to possibly make the boat into a motorsailer at some point and, lastly, the price.

Several people told me we should hire a pilot to bring the boat back to Indiana. They said, “You and Mary can’t handle it by yourselves.” Well, my response was, “If we can’t handle it then we need to sell it!” So, in the spring of 2010, Mary and I prepared to set out on an 11-day, 1,000 mile journey up the Inland Waterways System – and the adventure began…

BRIAN & MARY SIEG’S

JOURNEY

MAY 28, 2010: NEW ALBANY, IND. 7 a.m., we started out across the Gulf for Mobile. The boat’s making better time than I expected, nearly 8 knots at 1,100 rpm. (I was expecting 7 knots.) It was interesting while we were in the Gulf, on the Intracoastal Waterway, seeing towboats and barges so far off shore.

We have found one problem, well, actually two. The first is the propeller shaft stuffing box is leaking badly, and the second, we discovered we left two weeks’ worth of lunch meats and hamburgers in the freezer back home.

First the stuffing box. I had asked the shipyard to install new packing because during the trip from Biloxi in January I wasn’t getting enough water dripping from it to keep the stuffing box from MAY 29: JEMISON MARINE, BAYOU LA BATRE, ALA. overheating. They put fresh packing in but not enough. I tightened We drove all night and we it as much as I could but water got to the shipyard at 7 a.m. still poured in. Fortunately the local time. The guys are already bilge pump was able to keep working on the boat, jackup with it. Thank goodness hammering 10 inches of concrete the shipyard had left the old packing on the boat, so when out from around the rudder tube. we stopped for the night, I put It’s common when they build the old packing back in and shrimp boats to use concrete, stopped the leak. but it can be corrosive and this Now for the food. My leak was where the concrete was parents had brought us down poured against and around the to pick up the boat and were rudder tube. Once the concrete still in Alabama antiquing. I was removed, we could see the called them and we decided leak. We decided on a fix – split a they would pick up more food new piece of pipe and sandwich and meet us in downtown it around the old rudder tube.

Mobile. We were only about While the guys worked two hours from Mobile so the on the rudder tube, Mary timing worked out great. started cleaning and getting the When we got to Mobile provisions on board and I started there were no public dock plumbing the new sanitary tank facilities to be found, only and installing the potable water those owned by private pump, plus checking out the companies. Fortunately there • Shrimp boat built in the late 1970s, formerly named “Master John” engines. was a nice dock in front of the When my son Will and I • 85-feet long, 22-feet wide, 8-foot draft, 48-feet tall from waterline Mobile convention center and I picked the boat up in Biloxi in asked Dad to meet us there. We • Gross weight: 121 tons; Cruising Speed: 8 knots (9.25 mph) January and dropped it off at pulled the boat into the dock • A true “passagemaker” – capable of making an ocean passage the shipyard, we had the boat nice and easy and tied her off • Same boat-maker as vessels on Discovery Channel’s “Deadliest Catch” all cleaned up. But now, after with a crowd of people looking sand blasting the hull and two on and a little help from • Storage for 6,000 gallons of potable water and a truckload of cargo water tanks for painting, there’s someone working there. Dad • Fuel capacity for 18,000 gallons, over 18,000-mile range a quarter-inch of sand dust over is already parked in front of everything, inside and out. the convention center 500-feet away with our supplies and I Around 3 p.m., the shipyard puts the boat back in the water and we all crossed our fingers. Fixed, was getting ready to get off the boat when a security guard shows up.

Although there are no signs that say “No Docking,” the guard no more leak! Mary and I cleaned and worked until dark then tells us we can’t dock there. I apologized and explained to him why checked into a hotel. we had stopped and he agreed to let us stay there long enough to grab MAY 30: JEMISON MARINE, BAYOU LA BATRE the bags and go. I was getting ready to get off the boat again when Daybreak, Mary and I are back at the yard. I had more work another man with six police officers show up. He’s the convention to do plumbing than planned. When the yard removed the old center manager and he told us we had to leave immediately. He said waste tank, some of the supply lines were damaged and I accidently a client had reserved the dock for later that night and we had to broke one as well. Now I’ve got to find some parts and the nearest leave. Again, I apologized and explained that our intentions were to hardware store that’s open is 20 miles away. The plan was to leave the just grab the groceries and leave – it wouldn’t take 10 minutes but yard around noon today but by 10 a.m. it was already clear the boat he again told us no, we had to leave now, the space was reserved. I wouldn’t be ready before 3 p.m., and that wouldn’t give us enough asked him if there were any places close by where we could dock daylight to cross the Gulf of Mexico to Mobile, Ala. So, one more and he and a few of the police officers pointed to the right and said night in Bayou La Batre. After all the noise from partiers at the hotel we could dock just behind a Carnival Cruise ship only a couple of last night, we decide the boat was clean enough to stay the night on. blocks down river from the convention center.

We left there the whole episode taking longer than the time we DAY 1: MAY 31, GULF OF MEXICO TO THE BLACK WARRIOR RIVER It was very quiet docked at the shipyard last night, and at would have needed had I been able to just leap off the boat and get It’s after work on Friday and Mary and I are getting the van loaded to leave for Bayou La Batre when the phone rings; it’s the shipyard. When they put the boat back in the water today they found a leak in the rudder tube and they don’t know if they can fix it in time for us to leave Sunday morning. Because it’s a holiday weekend, it might be next week.

Mary and I have to decide if we want to take a chance and drive 10 hours or put the trip off one more week. We are already one week behind schedule. We decide to take a chance they can fix it Saturday and we leave. Besides, the van is already loaded anyway.

MEET “JEZEBELLE”

www.portsofindiana.com · Winter 2011 7

The Mobile, Ala., shipping channel

e helm

Brian Sieg at th

Seagulls follow “Jezebelle” through the Gulf of Mexico

11th Stop: Marine Builders 10th Stop: West Louisville 9th Stop: Tell City 8th Stop: Mt. Vernon 7th Stop: Paducah

6th Stop: New Johnsonville

Mary Sieg standing watch in a lock 5th Stop: Pickwick Lake

4th Stop: Armory

3rd Stop: Gaineville

ill stands The Siegs’ son W assembly r le on the propel

2nd Stop: Lavaca

1st Stop: Carlton

START

Putting “Jezeb el the water on M le” into ay 29

8 · Winter 2011 PORTSIDE MAGAZINE

the supplies – and we tied up behind the very large cruise ship with passengers watching from deck. A police cruiser was parked there and the officer got out, walked over and told us we couldn’t dock there and had to leave. Dad had already moved the van closer and we could actually see it from where we were docked, but the police officer said no, this wasn’t a public dock and we had to leave immediately. What happened to southern hospitality?

If you counted all the time we spent looking for someplace to dock, add the time spent maneuvering the boat to dock her, and maneuvering again to leave, we had wasted an hour in Mobile. Fortunately, while all this was going on, my Dad spoke to someone who was watching and he told him there was a public dock 20 miles up river. So off we went to find this dock.

We headed north out of the Mobile ship channel onto the Black Warrior River and two and a half hours later we were at the dock and could see my parents already parked there waiting. The boat is drafting 7 to 8 foot of water and I knew there was no way we would be able to get close enough to the dock for us to get the groceries. A man with his son in a small fishing boat pulled up to the dock ready to take their boat out of the water and Dad asked him if they would mind bringing the items out to us, and he said no problem. He and Dad loaded up his fishing boat – Mom and Dad had gone a little ‘overboard’ and bought way more than we needed – and he brought the things over to us and helped unload them. I tried to give him $20 for his trouble but he wouldn’t take it. There it was: southern hospitality. So after all that, we had about four hours of daylight remaining and we headed up river.

The plan is to only run during daylight, about 6 a.m. to 9 p.m.

Around 8 p.m., we passed an abandoned barge dock, a perfect place to tie up a deep draft boat but it’s our first day on the trip and we decided to pass it up to get more miles behind us after all the delays with the groceries. Big mistake. At 9 p.m., the sun was going down and we started seriously looking for anywhere to tie up for the night.

By 10 p.m., it was pitch black and without a search light or radar, and no anchor to drop and secure the boat close to shore, we were running blind. I pointed the bow to shore, we crossed our fingers, and luckily, the boat found deep water and a tree hanging out over the river we could tie to for the night. This is a 10-day trip, not sure how many days like this first one we can take.

DAY 2: JUNE 1, BLACK WARRIOR RIVER Mary told me, if I’m going to write about our trip, I have to use the boat’s name “Jezebelle” - although she said “Jeze” is okay too because ‘she’ doesn’t like being referred to as “the boat.” The name is a long story in itself, but essentially it evolved from a pirate comedy, our dog, a southern belle and a biblical queen that got a bad rap for being a fiery, determined woman who lived life on her own terms.

Very fitting.

Our first night on the river was hot. I wasn’t planning to run the gen-set generator on our trip because it burns nearly as much fuel as the main engine, but if we’re going to get any sleep at night, we are going to have to run the gen-set to have air conditioning.

Mary ran the boat for about eight hours today while I cleaned sand and other junk off the deck, trying to make the old girl look a little better for our first lockage. Mary really picked up piloting quick!

Today we also had the first lock of the trip. We have a total of 18 to go through and I had really been dreading this part of the trip. In the past, I’ve locked towboats with 600 feet of fuel barges in front and not thought anything about it. The towboats were twin engine with flanking rudders. Jeze is a single screw boat with only one rudder and she doesn’t like to back her stern around.

I got to find out how she’s going to handle locking for the first time. It wasn’t smooth. We got in the lock and tied off pretty quickly. Mary did a great job securing the boat, but when we untied and started out, that’s when the trouble happened. I didn’t get Jeze’s stern backed around far enough so when I came ahead to pull out of the lock, I dragged the fenders down the rough concrete wall. I was moving too fast as well. The stern fender couldn’t take anymore, and its rope snapped. The fender disappeared behind the boat. We couldn’t see it floating in the lock and I was too embarrassed to ask the lock master if we could look for it, so we left without it. Great, 17 more locks and only three remaining fenders. I’ve got to do better than this or I’ll be stopping along the shore looking for some old tires to use as fenders.

“Jezebelle” enters the John Rankin Lock & Dam on the Tombigbee Waterway in Mississippi.

After the trouble last night, we started looking a little earlier for a spot to tie up. We found a tree hanging over the river in deep water which worked well.

After we tied up, sometime around 8:45 p.m., I walked back to the swim deck to check on things. Amazingly, there was the fender I had lost at the lock laying on the swim deck, undamaged and as if someone had set it there. We again had four fenders. I bet the lock master had a good laugh.

DAY 3: JUNE 2, BLACK WARRIOR RIVER AND TENNESSEE-TOMBIGBEE WATERWAY

WHAT IS A LOCK?

A lock serves as an elevator for moving boats between different elevations by raising and lowering the water level inside of a closed chamber.

It’s a very nice calm morning as we departed on schedule. Mary steered most of the day while I tinkered around on the boat. I see a pattern emerging here…

We went through two locks today and both went very well.

Mary’s a great deck hand. I recalled what “Busy,” a shrimp boat captain at the shipyard, had told me about using a bowline to back the stern around and it worked perfect. Locking is now a piece of cake.

Really, the only excitement today was when it was time to tie up for the night. Couldn’t get in close enough to shore to catch a line on a tree from the boat, so I had to swim about 30 feet to shore with a rope to tie Jeze off to a tree. After the heat of the day, the water felt good.

www.portsofindiana.com · Winter 2011 9

A drydock ship repair facility in the Mobile shipping channel.

A foggy morning on the Ohio River

DAY 44: JUNE 33, TENNESSEE TENNESSEE-TOMBIGBEE TOMBIGBEE WATERWAY At 6:30, the morning started out clear. By 7:30, we were in moderate to heavy fog but at least I was able to see the banks on both sides. Monitoring the radio and using the GPS, we were able to continue up the river. It took two hours (16 miles) for the fog to lift.

We went through three locks today. The second was the slowest yet – around 45 minutes. We called ahead and the lock master had the chamber open when we got there. We went right in and tied off. We waited and waited; it seemed like it took forever to close the gates and start filling the chamber. I got the binoculars out and watched the lock master. This guy did not appear to like his job. It was like watching someone move in slow motion.

We tied up for the night in the mouth of a large creek that flows into the Tennessee-Tombigbee Waterway just six miles below the next lock. For dinner, we grilled steaks over hickory wood in a small camping grill we had brought with us. It’s finally starting to feel like a vacation a little more every day.

DAY 5: JUNE 4, TENNESSEE-TOMBIGBEE WATERWAY

Last night was the best spot yet, and the best sleep I have had for a week.

The day is starting out great, rainy but not bad. Made coffee, had breakfast and at 6:30 a.m. we’re off, 7 a.m. in the lock chamber, and by 7:30 we’re out heading for the second lock. We have a total of six locks to go through today.

Something happened today for the first time. The trip became fun. For the last few days, I was beginning to wonder why I was doing this, and then it all came back. We’ll see how long that feeling lasts.

Mary and her dog “Capt. Jezebel Jack” are spending more time on the deck now that the weather’s cooling down a little. It’s funny; Jack must have felt much the same way Mary and I did. The first few days, he looked at me like “what the hell are you doing,” now he looks like he’s enjoying himself – as much as a dog can – as he looks out the wheel house door and barks at people on shore, passing boats and critters.

The Black Warrior River and Tennessee-Tombigbee Waterway were much deeper than I was expecting. The Black Warrior River averaged around 30-feet deep and the Tombigbee around 25-feet deep. Both were also wider than I had anticipated and very curvy.

It was interesting seeing where the U.S. Army 10 · Winter 2011 PORTSIDE MAGAZINE

Corp of Engineers curved the Tombigbee through the hills, much like interstate highways are cut through the side of hills.

We entered Pickwick Lake where it connects to the Tennessee River around 7:30 p.m. We’re just seven miles above the next lock and the water is deep here so we decide to find a place for the night.

That’s now the most challenging thing about the trip, finding a place to stop for the night.

As we were slowly going along the banks looking for a good spot, a big yacht came by and asked if we needed some help, and I asked him if he knew of a place we could tie up for the night. It turned out he was the owner of the nearby ‘Grand Harbor Marina,’ and he told us we could tie off next to his fuel dock for the night.

When we got to the marina, it looked like the Hilton Inn with many large expensive yachts and people relaxing on decks. Mary and I looked at each other and said that’s not a place for our old rusty workboat. We thanked him for the offer and told him we were afraid Jeze’s noisy gen-set would be too much for everyone else to listen to all night.

So we moved out into the Tennessee River, found an island, and nosed up to the shore. I was about to go for another swim because we were still 20 feet from shore when some folks in a pontoon boat pulled up to talk and volunteered to take our line to shore for us. It took them a little while (we thought they had probably had a bit too much to drink that day), but they were able to get the rope around a tree and return it to me. I offered them $20 for their help but they also refused it and said to “pass it on” if we saw someone who needed a little help sometime.

DAY 6: JUNE 5, TENNESSEE RIVER We were at Pickwick Locks and Dam this morning waiting for an Ingram Barge Co. towboat to pull his tow from the lock chamber when what appeared to be a father and small son in a fishing boat came trolling from behind the lock’s approach wall, right into the path of the Ingram tow. The father wasn’t paying any attention because he was too busy messing with a fishing pole when the towboat captain blew his horn and managed to bring his 20 loaded barges to a stop. Did the father start the boat’s motor to get out of the way? No. His small son finally used the electric trolling motor instead of the outboard motor to slowly move the boat out of the way while everyone around, including the lock master, waited for them to pick another fishing spot. All the while the father just stood there seemingly oblivious to everything and still messing with his fishing pole.

Mary thinks I’m silly and she’s probably right, but this morning I hung the shrimp nets up for that authentic shrimp boat look. Then Mary does some laundry and hangs two lines of clothes out to dry

on the back deck. Wow, now we really look like hillbillies on water.

It’s Saturday afternoon and the Tennessee River is full of pleasure crafts, and many want to get in close to take a look at a shrimp boat. Closer than I like – especially those pulling kids on floats behind them and the jet skiers. These people just don’t stop and think what could happen if their boat suddenly stopped or someone fell overboard or off the tube in front of a big boat. Even by powering the engine down, engaging reverse and powering the engine back to full speed, it might take Jeze a full minute to stop.

Slamming on the brakes is not an option.

We have had a lot of lock masters and towboat captains that want to know why a shrimp boat is going north. Most asked if we were getting away from the BP oil spill. Today, people are coming out of their homes and campers along the riverbank to watch us go by. It feels very strange. Jeze has had her picture taken by a lot of boaters and picnickers on shore. One guy even stopped his car on a highway bridge to get out in traffic and take a picture.

The Tennessee River is wide and shallow along the bank. It took an hour to find a place to tie up for the night. We ended up in an old harbor near New Johnsonville, Tenn., on an abandoned barge dock.

There was also an abandoned factory of some kind hanging out over the water. It was all kind of spooky, like some horror movie set, but it’s now dark and I’m not moving. Sorry Mary.

DAY 7: JUNE 6, TENNESSEE RIVER AND LAKE CUMBERLAND Well, we survived the night at the abandoned factory. I can’t believe I didn’t get a picture. I was too busy when we landed last night and it was too dark this morning when we left.

This morning was the first time I almost went aground. The river around New Johnsonville is wide like a large lake and the channel curves all over the place. In low light I missed a buoy and all at once there’s only two feet of water under the keel. Thank goodness Jeze can come to a full stop fast. I back the stern out into deep water again and we’re on our way. That was too close; I should have really been paying closer attention.

DID YOU KNOW THE U.S. WATERWAYS...

• • • •

serve 38 states with 25,000 miles of navigable rivers? handle 600 million tons of cargo each year? allow one tugboat to haul 1,050 truckloads of cargo? move $4 billion of cargo to and from Indiana annually?

We’re now on the Kentucky Lake and the wind is howling straight out of the north, down the more than 40-mile-long lake and building remarkable waves; some swells reaching over three feet in height. Only saw a couple of small pleasure crafts out trying to navigate the waves and they were getting a beating. The waves are about the same size we encountered crossing the Gulf. The biggest problem for me is that the gentle rocking is about to put me to sleep.

I can’t get Mary to steer because she’s already napping after her shift.

Unbelievable! It took us five hours to lock down at Kentucky Lock and Dam this afternoon. Not because of traffic; there was only one boat ahead of us. They never told us why we had to wait but I think they were having trouble with the lock. We nearly lost half a day, or 40 miles travel. We were going to stay the night in Paducah, Ky., but it’s so late in the day now, I don’t know if we can make it before dark.

Well, we barely made it to Paducah before dark at around 9:30 p.m. We made good time below the locks, going nearly 9 knots at 1,100 rpm. There were hundreds of industry-owned docks around Paducah but no place we could tie off, so I had to swim a line to shore again. The two things I miss not having on this trip most are a working anchor and a dingy to take to shore.

DAY 8: JUNE 7, OHIO RIVER Well, it happened first thing this morning… I ran the bow up on a sandbar and I was paying attention this time. We were leaving Paducah, going out onto the Ohio River. My river chart showed we

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RiverworksDiscovery.org www.portsofindiana.com · Winter 2011 11

U.S. WATERWAYS FACTS:

• The U.S. Army Corps of Engineers maintains over 190 river locks.

• More than 50% of the locks are over 50 years old.

• Federal funding for lock modernization is vital to U.S. economy.

were in the channel and in deep water, but apparently the recent he only filled the lock from one side. flooding on the Tennessee River enlarged a sandbar. Fortunately, the At 9 p.m., we made it to the Port of Indiana-Mount Vernon. I bow backed off with no trouble as I wasn’t moving very fast when had to run the engine a little harder than we have been, 1,200 rpm, it happened. About the time I finished so we could make it to the port before backing off the sandbar, a harbor boat dark. When I checked the fuel tanks I moving barges down river radios and could tell we sucked down twice as much tells me to be careful and watch out for fuel as the previous day’s running at that sandbar. Thanks!

1,000 rpm. What a difference. Anyway, We entered the John T. Myers Locks Phil let us tie up at the port’s general and Dam early this morning. We went cargo dock for the night. The best spot right in and tied off, better than any lock we have had on the trip and I didn’t have so far. I’m drinking my morning coffee to go swimming. waiting for the lock master to fill the It got even better. Phil and his staff chamber when all at once the stern whips left a car for us to use. I was able to go around hard to port and the bow bangs into town and pick up a few supplies into the concrete lock wall, bending the and, best of all, I picked up a pepperoni anchor stay. pizza from Domino’s. After eight days What just happened?!! We tied off and nine nights on the boat, that pizza the same as the 14 locks before. Then I was like Christmas morning as a kid. noticed this lock was only filling up from Well, almost. A big thanks to Phil, the right side of the chamber, the side Randy, Bruce and Sally at the port. we’re tied to. All the other locks filled DAY 9: JUNE 8, OHIO RIVER from both sides. So with only a bowline Another slow day on the Ohio River, tied, the water rushing in the chamber we’re only making 6 knots (7 mph) shoved the stern over hard, sending the against a strong current and dodging bow into the wall. I don’t really care all debris.

We locked through Newburgh that much about the bent anchor stay, I Locks and Dam this afternoon, straight was planning to replace it anyway, but it in and out in less than a half hour. was embarrassing because I had just told Because of the fi ve-hour lock delay at the the lock master we were all secure and Kentucky Lock and our slow pace against when it hit, a heavy steel door that was the Ohio River current, we’re not going to open and unsecure swung closed and hit be home until June 10.

Since Mary needs Mary hard in the back. Fortunately, it to be back at work that day, we’ve made didn’t hurt her. arrangements today for a crew change What a morning this has been… near the town of Leavenworth, Ind. plus my electronic navigation software Our son, Will, is going to trade places “Jezebelle” served as a shrimp boat for Capt. Pete doesn’t include any Ohio River charts with Mary for the remaining 68 miles. past the John T. Myers Locks and Dam, Dawson of Pensacola, Fla., and his family from 1978 The good news today is the Tell City so I now have to rely only on my paper to 2005. Named “Master John” after their late son, the Port Authority is letting us tie to their charts. We’re not making very good boat was their pride and joy, and they took great care mooring cell for the evening. time today either, only around 6 knots of it. But in the late 1990s, competition from imported because of a 2-knot-plus current.

DAY 10: JUNE 9, OHIO RIVER shrimp began to cut prices for Florida shrimpers, and Well, I’m really embarrassed now. I like thousands of others, the Dawsons had to give up We had a strong wind last night and just spoke with Phil Wilzbacher, the port thunderstorms that kept Jeze rocking their boat. director of the Port of Indiana-Mount most of the night, but the mooring was After that, the boat deteriorated quickly and was on good. We locked through the Cannelton Vernon. Phil informed me that it wasn’t the John T. Myers Locks and Dam we the verge of sinking when we found it. I spoke with Locks and Dam at 7 this morning with went through early this morning; it was the Dawsons and they were thrilled to hear that Mary no troubles. Seventeen locks down and the Smithland Locks and Dam. Wow, I and I had saved their boat and were restoring it. They only one lock remaining: McAlpine in had written the wrong name down on shared their story of “Master John” and, even in poor Louisville. the trip itinerary. I wonder what the lock health, made a trip to the Alabama shipyard just before When Mary and I were planning this master must have thought when I was we left to see the boat one last time. – Brian Sieg trip, we thought the days would be very hailing the wrong lock. Maybe that’s why long and kind of boring. But it was the

“MASTER JOHN”

12 · Winter 2011 PORTSIDE MAGAZINE

A tugboat moves coal barges down the Ohio River.

opposite; the days flew by, almost too fast.

I also thought steering for nearly 15 hours a day was going to be a killer. But it wasn’t bad at all. With Mary and I taking turns at the helm, and Jeze holding her course with very few course corrections needed, it worked out well.

We went days without cell phone service while we were on the Black Warrior River and Tennessee-Tombigbee Waterway. The wireless network card we brought for internet and email access only had service about 10 percent of the time, which was very frustrating.

Both improved once we reached Tennessee and Kentucky.

According to boat lore, each and every vessel is recorded by name in a great logbook on the bottom of the sea by Poseidon himself. So when you change the name of a vessel as we did, you have to ask Poseidon to remove the old name from the log and add the new name. But first you have to remove everything from the vessel with the old name, which we did.

Then you take a piece of the vessel, write the old name on it, and chuck it overboard, which we did – we had picked up a piece at Jemison’s Marine before we left. Then you make your request to Poseidon for the name change, and for him to watch over and protect the new vessel “Jezebelle.” Lastly you seal the deal with a bottle of rum poured overboard for Poseidon, which we just happened to bring along. Silly, right? Well, laugh if you want but we have had a safe trip so far.

Our crew change went well today. I now have a fresh deckhand and a dingy. It’s kind of strange, when we tied up for the night, I’m only 15 miles from home and 34 miles from the dock where the boat will be kept, but I’ll still have to spend one more night out... all because of one lock delay. Bummer.

DAY 11: JUNE 10, OHIO RIVER Heavy fog this morning. We made it about four miles up river when heavy fog rolled in and we were forced to head to shore and tie up; 45 minutes later we were back under way. The current is still running strong and there’s a lot of debris in the river to dodge. We just made the last lock, McAlpine Locks and Dam, and all went well – no surprises. Just six miles to go now.

We’re cruising in front of downtown Louisville on our final leg of the trip and my cell phone rings. It’s Theresa Dooley, a close friend. In a somber voice she says, “Brian, it’s Theresa.” I don’t know why but the first thing that came to my mind was concern that something had happened to her husband, Jim, or their son, Dawson. She asked if I was in my boat passing downtown Louisville and I said, “Yes, why?” She was at work in one of the tall downtown buildings watching us pass by. Very funny; what’s the chance she would be looking out her office window at the same time we were going by? Especially since I didn’t tell the Dooleys when we would be passing Louisville.

Well, at 1 p.m. on Day 11, we arrived at Marine Builders in Utica, Ind., and docked. Just like that, the 1,000-mile trip was over.

Dad was waiting to pick us up and, without fanfare, I went home and crashed.

Jezebelle is currently at Marine Builders where we’ll finish refurbishing her. I used to work there building towboats before I joined the port. As we traveled the waterways, I was amazed by just how many of these Marine Builders towboats I saw on the water and had to wonder if I had a hand in building some of them. I hope to have Jezebelle refitted in about three years. We plan on starting off slow, maybe with some scuba-diving trips around Florida and the Keys, then branch out to the Bahamas and especially the eastern Caribbean islands. We’d love to be able to share the boat with our sons, Brandon and Will, when they each have families of their own.

Since I have piloted tugboats and worked at a port for over 20 years, this trip never sounded like a crazy idea to me – and Mary never said otherwise. But it was an amazing adventure. It was a little like retracing the riverboat journeys of the old steamboats or Mark Twain, when he piloted boats up and down the river. There’s something truly inviting in our inland waterways as they flow lazily while acting as a natural stress reliever. After 28 years of marriage, Mary said she had never seen me so happy as the days we spent coming up the river, despite all the uncertainty that lay ahead of us.

Most people just don’t believe I brought a shrimp boat back to Indiana. I don’t know if anyone’s ever done it before. Looking back, the trip is like a blur. There are several locks I just don’t even remember going through. We only plan to do this trip once more when I take Jezebelle back to the Gulf.

I never meant for the voyage to be some kind of quest or a lifealtering journey. It was just something I needed to do to get the boat back home so I could work on it. I couldn’t afford to have someone else do the renovation down in the Gulf. I could never travel down there often enough to finish it in a reasonable amount of time – and trucking a 100-ton, 85-foot long, 22-foot wide boat on just about any highway is out of the question. The river was the only option.

But when you think about it, that’s exactly what our river system does every day. It creates opportunities for businesses to make connections that would not otherwise be available. Cargoes can often be shipped from Indiana to the Gulf of Mexico cheaper than they can be trucked a few hundred miles. Our rivers may be hidden treasures to some, but they create opportunities like no other transportation system in the world.

I am very thankful for the many opportunities our rivers have created for me throughout my life. This trip may have just been a step toward our final dream of sailing away into a tropical sunset, but like in life, there are some amazing journeys along the way.

www.portsofindiana.com · Winter 2011 13

Ferguson, Gibson reappointed to ports commission INDIANAPOLIS – Gov. Mitch Daniels recently reappointed two key leaders for the Ports of Indiana commission, as Marvin Ferguson and Greg Gibson were each called to serve another term.

Marvin Ferguson Greg Gibson Ferguson is the longestserving member on the board, now in his 19th year with the Ports of Indiana. In the organization’s 50-year history, only three out of 37 total commissioners have served longer. Gibson is starting his second term on the bipartisan commission, which is made up of seven members serving staggered four-year terms. The board establishes policy for the Ports of Indiana and approves all major projects, annual budgets and strategic objectives for the organization.

“Our commission includes some of Indiana’s finest business minds,” said Ports of Indiana CEO Rich Cooper. “The governor did our ports another huge favor by reappointing these two men. Both Marvin and Greg bring a wealth of business experience to our board and are huge contributors to our organization.”

A true “self-made man,” Ferguson founded the Ferguson Steel Co. in 1972 and went on to frame some of Indianapolis’ and Cincinnati’s tallest buildings. After building a successful steel business from the ground up and spending decades leading the ports, Ferguson has taken on honorary roles as the commission’s “historian” and “steel advisor.” Steel is a primary cargo at Indiana’s ports.

“Marvin has been a catalyst in redefining our commission’s sense of purpose,” Cooper said. “His leadership has been extraordinary and there’s no question we would not be where we are today without him. There is just no substitute for experience and wisdom, and Marvin Ferguson has provided both to our organization for many years.”

During his time on the commission, Ferguson served as chairman and vice-chairman, and he also played an important part in selecting the board’s current leadership. Ferguson was able to nominate his successors – current Chairman Ken Kaczmarek and Vice Chairman Gibson – when he stepped down from those positions in 2006 and 2010.

“The present commission is by far the best group I’ve ever served with,” Ferguson said. “It seems I’ve had a lifetime of good memories and friends on this commission, and I have a great sense of pride and accomplishment for my time with the Ports of Indiana. Both Ken and Greg have done outstanding jobs in the governance and guidance

Commission approves budget, elects officers The Ports of Indiana commission took the following action at its December meeting in Indianapolis: • Approved the organizational budget for 2011 with the following capital projects: Sewer, rail and road construction at Port of Indiana-Burns Harbor; Rail improvements and new signage at Port of Indiana-Jeffersonville; Rail improvements, cell replacement and pier resurfacing at Port of Indiana-Mount Vernon; • Elected officers with Chairman Ken Kaczmarek, Vice Chairman Greg Gibson, Secretary/Treasurer Jay Potesta and Assistant Secretary Laurie Peckham remaining in place for another year; • Approved a track-use agreement for Norfolk Southern to provide rail switching services at the Burns Harbor port; and, • Awarded an additional $98,000 to Walsh & Kelly for further work and materials on a previous contract to improve the west access road at the Port of Indiana-Burns Harbor. of the commission and I’m honored to have nominated them.”

Gibson was an engineering graduate from Rose-Hulman Institute of Techonology in Terre Haute and is well known as one of the most successful business people in Indiana. He’s developed a strong track record of entrepreneurial success in a variety of business ventures throughout the United States, including commercial real estate development, trucking, excavation, coal, solid waste landfill development and waste industry advisory services. His background in real estate has made Gibson a natural fit as the commission’s lead advisor on land development and lease issues.

“Greg is a unique manager who analyzes things like an engineer while applying business skills and years of experience gained from a variety of industry sectors,” Cooper said. “We routinely rely on his high-level business experiences, especially in real estate, and his interpersonal skills are endearing to anyone who works with him.

He’s one of those special people who makes everyone else around him better.”

Gibson and his family have long been recognized for giving back to the community in many ways. An accomplished cross-country athlete in college, Gibson and his family developed the LaVern Gibson Championship Cross County Course in Terre Haute which annually hosts the NCAA Div. I and Indiana State High School cross-country championships.

Port employees mark milestones Six employees recently celebrated significant anniversaries with the Ports of Indiana. In the maintenance departments, Revel Barton Rich Dominguez Chet Turner Jody Peacock Cathy Wait David Haniford Revel Barton and Rich Dominguez both Jeffersonville Burns Harbor Burns Harbor Indianapolis Indianapolis Indianapolis reached the 15-year mark, while Chet Turner 15 years 15 years 10 years 10 years 10 years 5 years completed his 10th year with the organization.

These three provide assistance with the general maintenance and and human resources issues for the organization. David Haniford also upkeep of the port grounds, rail and roadways, which has included recently logged his fifth year as general counsel, overseeing legal and the foreign-trade zones issues. A primary goal of the Ports of Indiana many hours of snow removal to keep the ports open this winter.

In the central office, Jody Peacock and Cathy Wait are both strategic plan is to attract and retain high caliber leadership and celebrating 10 years on the job. Peacock manages communications, professional staff in an empowered work environment that promotes business development and strategic planning while Wait handles billing longevity and continuity throughout the organization.

14 · Winter 2011 PORTSIDE MAGAZINE

Norfolk Southern began providing dedicated rail-switching services at the Port of Indiana-Burns Harbor in February.

Norfolk Southern to provide rail-switching at Burns Harbor Landmark agreement designed to improve service, increase business for Indiana port customers PORTAGE, Ind. – For the first time since the Port of IndianaBurns Harbor opened in 1970, the Lake Michigan port will have an onsite, dedicated rail-switching service. Norfolk Southern was selected to provide switching services for customers of Indiana’s oldest port beginning in February.

“We’re excited to partner with Norfolk Southern,” said Rich Cooper, CEO for the Ports of Indiana. “This partnership creates several opportunities for our customers to grow business, including implementing unit trains where appropriate, improving switching services inside the port, and working closely with other carriers when opportunities present themselves. Having a world-class Class I carrier with a major rail yard, equipment and crews located immediately adjacent to our port will create significant advantages for our customers.”

In 2010, the Ports of Indiana submitted a request for proposals for a dedicated rail switching provider. After an extensive review of some very good proposals from around the country, the Ports of Indiana selected Norfolk Southern to take over all switching duties

within the port.

“We’ve been providing rail service at the Port of Indiana for years, and this was a great opportunity for us to expand our business to meet the needs of port customers,” said Steve Evans, Norfolk Southern’s assistant vice president for ports and international business. “This agreement not only improves daily rail service to our port customers, but it will also increase operational efficiencies at both Norfolk Southern and the Indiana Harbor Belt Railroad, making it be a win-win for all parties involved.”

The new arrangement still provides direct connectivity to the Indiana Harbor Belt and other rail carriers.

“Our current rail users provided significant feedback on how we could further improve service at the port,” said Peter Laman, port director for the Port of Indiana-Burns Harbor. “After reviewing a number of high quality proposals, we believed Norfolk Southern could provide immediate solutions to a number of those issues and they made it clear to us they were interested in helping us identify opportunities that could add new rail volume at the port.”

www.portsofindiana.com · Winter 2011 15

New shipments of wind turbines in 2010 helped increase the amount of project cargo moving through the Port of Indiana-Burns Harbor by 14 times the previous year’s total.

PORT REPORT Peter Laman Port Director

PORT OF INDIANA – BURNS HARBOR

Port shipments increase 43 percent in 2010 PORTAGE, Ind. – In 2010, the Port of Indiana-Burns Harbor shipped half a million tons more than the previous year. This is the second largest annual cargo increase at the port since 1994. The 43-percent jump in shipments was the result of significant increases in coal, steel, grain and project cargo movements. Both ship and barge traffic increased by about 50 percent over the prior year.

A large part of the 2010 increase was due to new project cargoes, which were 14 times greater than 2009’s shipments. These oversized ‘heavy lift’ items are too large for traditional shipping methods and included building-sized storage tanks, a 388-ton electrical transformer and a single shipment of wind turbine components so large that it required 11 ships. The port also handled its first export shipment of wind turbines in 2010, further establishing this facility as the premier port for handling specialized cargo shipments to and from the Midwest.

It’s in the bag!

When it comes to grain storage, Cargill thinks outside the bin.

A tenant of the Port of Indiana-Burns Harbor since the early 1980s, Cargill used an innovative technology this year to store grain in giant plastic Cargill uses innovative bags to store bags that are longer than a grain at the Port of Indiana-Burns football field.

Harbor.

In August and September, Cargill loaded about 32,000 tons of grain into the long white bags at the port. Each one can hold roughly 1,000 tons and

16 · Winter 2011 PORTSIDE MAGAZINE

Northwest Indiana was blanketed with as much as 25 inches of snow during an early-February blizzard. The port’s maintenance crew spent long hours removing snow, plowing roads and digging out railroad switches.

are filled to a range of 200 to 500 feet in length with a 10- or 12foot diameter. The grain – mostly wheat – will be retrieved in early spring. While Cargill has used grain bags quite extensively in South America, this innovative storage method is relatively new to our region.

A tractor-driven bagging machine fills the giant tubes, which store grain for up to eight months. The bags are made of a speciallydesigned, heavy-mill polyethylene plastic, which prevents moisture and pest contamination and helps preserve the grain quality.

The bags seal completely and grain can be accessed as needed. A bagging operation of this size does require a lot of space, so Cargill leased an additional 8.5 acres of port land in 2010. This allowed the company to significantly increase its storage capacity at the port while dedicating its grain bins to the corn and soybean harvests.

The facility also recently upgraded its scales and added a large capacity truck dump for unloading grain, which has significantly increased speed and efficiency of its grain handling operations.

Contact Peter Laman at (219) 787-5101; plaman@portsofindiana.com

In 2010, the Port of IndianaMount Vernon moved 4.2 million tons of cargo.

PORT REPORT Phil Wilzbacher Port Director

PORT OF INDIANA – MOUNT VERNON

Looking back at a year of growth MOUNT VERNON, Ind. – Typically we measure port growth in tonnage, but in 2010, the Port of Indiana-Mount Vernon grew in multiple ways. Last year, the port made some significant additions in total acreage, types of cargoes, number of facilities and economic impact. This was the result of many developments, including the effects of new ethanol production rippling through the area and the continued growth of our port companies. Overall shipments remained strong in 2010, and one port company even recorded the largest annual tonnage in its history.

In order to keep pace with recent growth, the port purchased 110 acres of property in 2010, increasing the port’s size to 965 acres with 300 acres ready for development. The port also handled 4.2 million tons of cargo, the second highest volume since 1996.

There were significant increases in the shipment of minerals, fertilizer, salt and grain products.

Cemex/Kosmos Cement reported its largest annual tonnage in 10 years at the port with a 20 percent increase over 2009’s totals.

In fact, 2010 represents the company’s fourth consecutive year of increased shipments as a result of aggressive marketing focused on new road construction.

In December, Aventine Renewable Energy completed construction on its new facility and started producing ethanol.

This 100-acre facility represents the single largest investment made by any company in the history of our port and has the capacity to produce 110 million gallons of ethanol per year. Aventine will strengthen the corn market for farmers in our region by using 40 million bushels of corn annually.

With ethanol production starting at two plants in the Mount Vernon area – Aventine and Abengoa Bioenergy – Consolidated Terminals and Logistics Co. decided to construct a new bulk loading facility at the port in 2010. The new barge terminal is one of a kind on the U.S inland river system, with the capability to transload ethanol directly to barge from railcars and pipeline.

The new terminal opened in August and also handles distiller’s

dried grains, a by-product of the ethanol-making process used in livestock feed.

As the port grows, so does its economic impact. According to a 2010 study by Martin Associates, the Port of Indiana-Mount Vernon contributes $751 million to our region’s economy each year, including more than $29 million in tax revenue and nearly 7,000 jobs. This is more than triple the economic contribution reported in a 1999 study and 15 times the amount from a 1993 analysis. With the port poised for additional growth in 2011, we are confident this trend will continue.

Contact Phil Wilzbacher at (812) 833-2166; pwilzbacher@portsofindiana.com

Consolidated Terminals and Logistics Co. recently opened a new barge terminal to handle products produced by two Mount Vernon ethanol plants – Aventine Renewable Energy and Abengoa Bioenergy.

www.portsofindiana.com · Winter 2011 17

The Port of Indiana-Jeffersonville handled more than 1.7 million tons of cargo in 2010.

PORT REPORT Matt Smolek Port Director

PORT OF INDIANA – JEFFERSONVILLE

Port handles 27-percent increase in 2010 shipments

JEFFERSONVILLE, Ind. – More than 1.7 million tons of cargo moved through the Port of Indiana-Jeffersonville in 2010, a 27-percent increase over the previous year. This was the most cargo shipped through the port since 2006 and the fourth largest total since it opened in 1985.

Shipments of all major cargoes surpassed the previous year’s totals, led by a 22-percent increase in grain tonnage. Grain accounted for more than half of the port’s cargo in 2010, finishing 43 percent above the 2008 grain shipments. This was a common theme throughout the country as overseas demand spurred exports of U.S. grain as well as the local farmers’ need for additional fertilizer imports, which increased 38 percent at the port in 2010.

As our region continues to fight off lingering effects of an economic recession, the outlook around the port brightened significantly in 2010 as many companies saw ‘soft’ improvements.

I’m proud to say four companies expanded their facilities during the year. Consolidated Grain and Barge upgraded its barge loadout conveyor to increase efficiency. Idemitsu Lubricants America Corp. built additional petroleum storage to keep up with increased demand. Both Steel Dynamics Inc. and Voss/Clark Industries are currently expanding their facilities in preparation for growth.

The economic downturn hit the port’s steel processors hard.

Each of these businesses – 12 of our 27 companies – saw significant improvements in 2010 and the port handled 26 percent more steel than the previous year. “Cautiously optimistic” is the catch-phrase around the port as we begin 2011.

Two port facilities join forces Metals USA has purchased Ohio River Metal Services (ORMS), which operated the former Eagle Steel Products facility on the port’s easternmost dock.

Metals USA, a port company since 1997, will continue to process and distribute carbon steel, stainless steel, aluminum and other metals under its current name. Eagle Steel was one of the port’s first 18 · Winter 2011 PORTSIDE MAGAZINE

Metals USA (right) recently acquired the former Eagle Steel facility (above).

tenants in 1988 and the first steel company to locate at the port.

The former Eagle Steel facility, now under the ORMS name, is a flat-rolled metal service center that provides high-quality processing and warehousing services to a broad range of customers. Former Eagle Steel President Charles Moore will continue to manage the 320,000-square-foot ORMS facility, which is served by barge, rail and truck.

According to Lourenco Goncalves, chairman, president and CEO of Metals USA, the new facility will complement the company’s existing business at the port and further expand the products and services provided to flat-rolled steel and non-ferrous metal customers in the area.

Contact Matt Smolek at (812) 283-9662; msmolek@portsofindiana.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 South Shore Clean Cities helps port secure hybrid vehicle PORTAGE, Ind. – A new ultra-low emission Ford Escape hybrid is coming to the Port of Indiana-Burns Harbor thanks to a local partnership. The port partnered with South Shore Clean Cities and the Northwestern Indiana Regional Planning Commission to secure a Congestion Mitigation and Air Quality Improvement (CMAQ) grant from the Federal Highway Administration and the Federal Transit Administration.

The grant fully covered the cost of a 2011 Ford Escape Hybrid purchased from Lake Shore Motors in Burns Harbor, Ind. A full hybrid, the vehicle includes both a gasoline engine and electric battery. The battery selfcharges, storing electricity generated when the brakes are engaged. The EPA classifies this model as an ultralow emissions vehicle.

According to Carl Lisek, executive director of South Shore Clean Cities, this grant was in the works for two years. South Shore Clean Cities, a local, not-for-profit branch of the U.S. Department of Energy’s national Clean Cities Program, submitted the application on the port’s behalf. The organization has also partnered with companies located at the port to assist in finding funds for other ‘green’ projects.

The national Clean Cities program was created in 1993 as a government-industry partnership through the U.S. Department of Energy and currently has 87 coalitions covering 78 percent of the nation’s population. Since its founding, the organization has

reduced petroleum use in the U.S. by 3 billion gallons.

Created in 1991, the CMAQ program funds transportationrelated projects that reduce emissions, such as public transportation, alternative fuels, bicycle facilities and improved traffic flow. The grants are awarded to areas classified as either nonattainment or maintenance areas, typically located in congested urban settings.

Northwest Indiana is one of the U.S. Environmental Protection Agency’s (EPA) nonattainment areas, named so because they have not met all of the EPA’s National Ambient Air Quality Standards. In 2010, the area reached ozone standards and the other nonattainment classification – particulate matter – is currently under review.

“The Port of Indiana has been working aggressively with South Shore Clean Cities, the Indiana Clean Diesel Coalition and its port customers to reduce air emissions,” Lisek said. “There are many other programs out there that could benefit port companies and the environment, and we hope to continue partnering with these companies, the port, U.S. EPA, the State of Indiana and the Northwestern Indiana Regional Planning Commission to reduce emissions and find more ways to make this port ‘green.’”

For more information about South Shore Clean Cities, visit www.southshorecleancities.org.

www.portsofindiana.com · Winter 2011 19

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

PRSRT STD US POSTAGE PD MUNCIE, IN PERMIT 860