2012 navigation season preparing to open

The opening of the 2012 navigation season is scheduled to take place on the following dates and times:

• Montreal/Lake Ontario: 8 a.m. Thursday, March 22 (D.S.T.)
• Welland Canal: 8 a.m. Thursday, March 22 (D.S.T.)
• The U.S. Soo Locks: Sunday, March 25

Vessel transits will be subject to weather and ice conditions. Restrictions may apply in some areas until lighted navigation aids have been installed.

Steel production in Great Lakes states rises 8,000 tons

Raw steel production in the country’s Great Lakes region was 654,000 tons in the week that ended February 4, according to estimates from the American Iron and Steel Institute. Production was up 8,000 tons from 646,000 tons the prior week.

Raw steel from Indiana and the Chicago area represents the majority of production in the Great Lakes. Production in the Southern District was estimated at 661,000 tons during the period that ended February 4, down from 665,000 tons produced a week earlier.

An estimated 9.5 million tons of steel has been produced so far in 2012 at domestic steel mills, compared to about 8.9 million tons made at the same time last year.

ABS recognized for 150 years of service

ABS celebrated its 150th anniversary January 31 and was recognized by Members of Congress for the classification society’s proud history and unwavering commitment to the American and international maritime community.

“I ask my colleagues to join with me in congratulating ABS on its 150th anniversary and in recognizing ABS’ significant service to the American marine and offshore industries and our sea services,” stated Congressman Frank LoBiondo (R-NJ), Chairman of the Subcommittee on Coast Guard and Maritime Transportation, in remarks entered into the Congressional Record. “As the classification society of the United States, ABS continues to serve today as a vanguard to mariners, public safety and our natural environment.”

The society, which began as a small American organization, was founded during the days of the clipper ship era is today one of the world’s foremost maritime classification societies.

“From the time of its formation, promoting safety has been and remains the core mission of ABS,” said Robert D. Somerville, ABS Chairman. “We are mindful of our past, of our traditions, but we are always planning for our future success with the same enterprising spirit that has been a fundamental part of ABS for 150 years. In doing so, we will continue to look to you, our partners in industry and government, to help us identify new challenges so that we in turn can help you successfully meet those challenges.”

EPA gives S.S. Badger approval to apply for individual permit

The U.S. Environmental Protection Agency (EPA) has granted Lake Michigan Carferry Service (LMC), the owner of the S.S. Badger, permission to apply for an individual permit. LMC recently received the news in a call from Michigan Senator Debbie Stabenow.

The Badger, a historic carferry that runs between Michigan and Wisconsin, is currently operating under a series of guidelines established by the EPA under a Vessel General Permit, which expires in December. If approved, the individual permit would allow the Badger, which is believed to be the last coal-fired vessel in regular commercial service in the U.S., to continue operating.

To date, LMC has spent hundreds of thousands of dollars on researching a solution and believes there is great promise with natural gas.

“We are currently working with the Great Lakes Maritime Research Institute to explore the option of converting the carferry to run on clean-burning natural gas,” said Lynda Matson, Vice President of Customer Service and Marketing. “Many feel that natural gas is the fuel of the future for the marine industry.”

LMC has already started preparing for the permit application and plans to meet with the EPA to discuss details soon.

U.S.-flag lakers’ cargo up 14 percent in January

U.S.-flag Great Lakes freighters carried 3.9 million tons of dry-bulk cargo in January, an increase of 14 percent compared to a year ago, and 41 percent better than the month’s five-year average.

Iron ore cargoes for the steel industry increased 21 percent compared to a year ago and outperformed their five-year average by 58 percent.

Coal loadings slumped by 53 percent compared to 2011, but fell slightly less—45 percent—compared to the trade’s five-year average.

Only one limestone cargo moved in January, which is typical. Since much of the limestone shipped on the Lakes is rinsed before loading, shipments largely cease when temperatures slip below freezing.

Cliffs Natural Resources plans to dissolve its joint venture with Kobe Steel

The Michigan Iron Nuggets Joint Venture was launched in 2007 to explore the viability of constructing a commercial operation to produce a pig iron substitute using Kobe Steel’s patented nugget technology and Cliffs’ iron ore. The partners planned to market the nuggets as feedstock to the electric arc furnace and foundry markets. The plant was designed and permitted for construction adjacent to Cliffs’ operations in the Upper Peninsula.

Japan-based Kobe Steel had developed technology for producing a nugget that is about 96 percent iron. In a recent announcement of the plant folding, Cliffs said it had conducted feasibility studies on pursuing a commercial venture but ultimately decided to refocus on its core taconite business.

“We are disappointed that we are not able to move forward with the iron nugget facility, but remain very appreciative of the efforts made by federal, state, county and township officials who worked with Cliffs over several years on this project,” said Joseph Carrabba, Chairman, President and CEO.

Cliffs, Kobe and Steel Dynamics were among the original partners in Mesabi Nugget, an alliance that dissolved in 2007 amid the complexities of a multi-party arrangement. In a separate venture, Kobe and Steel Dynamics went on to develop the $300 million Mesabi Nugget mill in Hoyt Lakes, with a capacity of 500,000 metric tons.

The company had fewer than 10 employees working exclusively on the joint venture and plans to reassign nearly all to other positions. Cliffs does not anticipate any material financial impacts as a result of the decision.

Training and Research Centre offers oil spill training and exercises

With the PISCES II oil spill software operational at the Great Lakes International Marine Training and Research Centre in Owen Sound, Ontario, new training is being offered. The state-of-the-art simulation equipment is an addition to the TRANSAS bridge simulation equipment already in service and represents a leap forward in oil spill training and exercises. Oil, fuel and almost any other type of spill can be modeled and trained through this software.

“This new equipment and software uses very realistic current and other meteorological information so that companies and their teams can participate in highly accurate exercises and test plans to a level not previously possible,” said Capt. Peter Buell, Director. “Features include the same high level of charted accuracy as the TRANSAS bridge system. Real-time reactions are used and exercises can be time-lapsed to move from event to event quickly, but with realistic results and consequences to decisions made.”

Management training also has the same high level of realism. The six-day course covers all elements needed to manage a spill event and culminates in a full-day exercise putting into practice what has been learned.

American Steamship Company charters new articulated tug barge

American Steamship Company (ASC), a subsidiary of GATX Corporation (NYSE:GMT), is chartering a newly-constructed articulated tug barge (ATB).

David W. Foster, President of ASC, said, “We are very pleased to add this new ATB, designed to transport drybulk commodities, to our fleet and look forward to commencing its operation on the Great Lakes during the upcoming sailing season. This U.S.-flagged 10,700 horsepower tug and 740 foot self-unloading barge with a cargo capacity of 34,000 tons, constructed by Donjon Shipbuilding and Repair, LLC of Erie, Pennsylvania, will allow ASC to more efficiently serve our customers.”

U.S. Seaway asset renewal tour highlights economic contributions

The Saint Lawrence Seaway Development Corporation (SLSDC) provided local North Country elected officials a first-hand look at the Seaway’s infrastructure renewal projects underway in Massena, New York. The Seaway’s asset rehabilitation and modernization effort, called the Asset Renewal Program (ARP), is having a significant positive impact on the Upstate New York economy. Nearly 70 percent of the ARP funds used during the program’s first three years (2009-2011), totaling nearly $35 million, were awarded within the Upstate New York region.

“In addition to these contracts, the ARP is producing approximately $2.5 million in additional economic benefits to the region each year,” said SLSDC Administrator Collister Johnson, Jr., who led the tour. “These benefits are realized in local permanent and temporary jobs, and local spending on supplies, equipment, lodging and meals.”

This winter there are 10 firms under contract with the SLSDC working on various ARP projects at the two U.S. locks and other SLSDC facilities. Each day, approximately 70 contractor personnel are working hand-in-hand with the SLSDC workforce on ARP-related projects in Massena. This represents the largest number of contractors working at the U.S. Seaway locks since their construction in the late 1950s. In total, the ARP is a 10-year, 58-project, $180 million Seaway infrastructure renewal program, the first major effort of its kind in the history of the Seaway.

A rare glimpse of the Snell Lock while it was dewatered allowed the tour group to see the crews at work in and around the lock. The ARP focuses on rehabilitating lock infrastructure, conducting maintenance dredging, investing in new technologies, purchasing capital equipment and refurbishing aging facilities. Prior to the start of the ARP, only $47 million in capital expenditures had been cumulatively invested in the U.S. Seaway locks since they opened in 1959.

More information on the Seaway’s asset renewal program can be found at www.greatlakes-seaway.com/en/management/slsdc/asset.

Cleveland-Cuyahoga County Port Authority opens nature preserve

During a ceremony of community and Cleveland-Cuyahoga County Port Authority officials, the Cleveland Lakefront Nature Preserve officially opened, February 6. The unique 88-acre urban wildlife habitat is located on the Lake Erie shoreline. The former sediment disposal site has been transformed into a habitat for a variety of birds, butterflies, animals, trees, shrubs and grasses. Audubon Ohio has designated the peninsula as an Important Bird Area.

The Port Authority manages the preserve, which is intended for walking, observing nature, research and education. Visitors are welcome to tour the preserve’s 1.3 mile loop trail during daylight hours. Admission is free.

Neptune Terminals first West Coast terminal to join Green Marine

Neptune Terminals, one of the largest multi-product bulk terminals in North America, is the first West Coast terminal to join the Green Marine Environmental program.

The Green Marine Environmental Program is an action plan that addresses eight major environmental issues identified by the marine industry. The program encourages participants to go beyond regulatory compliance and implement a process of continuous environmental improvement that will lead to excellence and leadership.

“We have a first class environmental system and we are committed to ongoing improvement of all our systems for water, air, noise, light. Our environmental management system provides for rigorous audits, which not only ensures compliance, but also allow us to achieve best in class performance,” said Neptune Terminals President and CEO Jim Belsheim.

Neptune Terminals’ commitment to responsible environmental management, including minimizing the impact of its operations on the community, makes the terminal a West Coast leader. Although carbon footprint levels are modest in comparison, Neptune Terminals has taken an aggressive approach to footprint reduction, through a series of significant investments, such as the new environmental locomotives.

“Neptune Terminals is clearly a leader in sustainability. We are impressed with its achievements and how well it fits with Green Marine’s philosophy of continuous improvement. Our environmental program will certainly benefit from Neptune’s expertise,” said Green Marine Executive Director, David Bolduc.

Some of Neptune Terminals preventative measures include sophisticated computer controlled weather stations and water suppression systems to ensure dust remains on the site, advanced water collection and treatment systems, and the latest technology to reduce noise and light impacts on the community.

“Green Marine’s evaluation and reporting system will allow Neptune to benchmark its environmental performance. It is also an excellent way to demonstrate its commitment to sustainability,” Bolduc added.

Located in Port Metro Vancouver, Neptune Terminals has the capacity to handle over 17 million metric tons of both dry and liquid bulk as a result of a series of recent strategic investments and handles over five percent of Canada’s offshore export goods.

Neptune Terminals joins a growing number of West Coast ports and shipping companies already participating in Green Marine including Prince Rupert Port Authority, Seaspan Marine Corporation, Island Tug & Barge, SMIT and Greater Victoria Harbour Authority.

Port of Indiana-Burns Harbor handles first January vessel in five years

The Port of Indiana-Burns Harbor welcomed a rare January lake vessel to its docks January 23.

The 700-foot James Kuber is exporting approximately 16,000 tons of local corn from port company Cargill to an ethanol plant in Sarnia, Ontario.

“This is the first lake vessel that we’ve had call on the port in January since 2006,” said Peter Laman, Port Director at the Port of Indiana-Burns Harbor. “The mild weather has kept ice from forming on the Lakes, which generally limits shipping this time of year. The international shipping season officially closed last month, but the port is open year-round. Businesses can still ship and receive cargo on river barges or Lake vessels, as long as the weather and ice allow them to get through.”

The James Kuber was built in 1953 as a steamship but, in 2008, it was converted into a self-unloading articulated tug/barge (ATB). The conversion removed nearly 70 feet of the ship’s length, including the engine room and living area, and added a V-shaped notch at the back of the vessel where a tugboat locks into place.

Change of attitude revives hopes for cross-lake ferry service

The Queen Mary it won’t be, but passenger service may finally cross Lake Erie from Cleveland to Canada, possibly by 2013.

Authorities on both sides of the border are again talking about ferry service that would dock somewhere near Cleveland Browns Stadium and go back and forth to Port Stanley, Ontario. The idea for a ferry dates back many years.

Initially, the service would probably be a two-year trial. And it would be started in the wake of the failure of a similar project that connected Rochester, New York with Toronto.

Canadian and local authorities have selected a U.S.-based vessel management company to develop a plan to haul people, cars and a limited number of trucks across the lake. Officials want to focus the service on tourism.

“That’s a change we’ve made primarily because Port Stanley told us right off the bat they don’t want a lot of trucks,” said Cleveland-Cuyahoga Port Authority President William Friedman. “They see their future as more tourism, less industrial type of activities.”

The vessel management company, HMS Global Maritime of New Albany, Indiana is studying the types of boats that can go between the ports and analyzing the viability of the venture.

St. Lawrence Seaway welcomes new board member

The St. Lawrence Seaway Management Corporation (SLSMC) is pleased to announce the appointment of James (Jim) Wilson to its Board for a three-year term, beginning January 27, 2012 as the representative for the steel and iron ore industries.

Wilson currently serves as General Manager, Raw Materials, for ArcelorMittal Dofasco Inc. and has more than 40 years experience within the iron ore and steel industries, spanning roles in research, production and purchasing. A graduate of McMaster University, his career encompasses a diverse range of progressively more senior assignments. He has served as a Director and President of Wabush Resources Inc. and as a Director for both the Arnaud Railway and the Wabush Lake Railway. Wilson is also a past Director of Quebec Cartier Mines, which became ArcelorMittal Mines Canada.

Terence Bowles, President and CEO of the SLSMC, welcomed the appointment. “The iron ore and steel industries are vital to the Seaway’s sustainability, and collectively account for a third of our total cargo volume,” he said. “Mr. Wilson’s experience within these industries will prove to be invaluable as he lends insight to the SLSMC’s Board. The next three years will be pivotal to the SLSMC’s continued development as a vital transportation artery and Jim Wilson is a welcome addition to our Board.”

Exodus strikes contract with Caterpillar

Exodus Machines has formed a global alliance with Caterpillar Inc. to manufacture and supply material handling machines for sale exclusively through the Caterpillar distribution network.

“This is an exciting opportunity for Exodus, our employees and the entire Duluth/Superior community,” CEO Kevin Boreen said in a press release. “We cannot think of a better company to partner with. Their global distribution and product support systems, through well capitalized independent Cat dealers, are unmatched.”

By partnering with the Fortune 100 company, Exodus could add up to 300 jobs over the next six to eight years, not including spin-off jobs. This comes just days after Kestrel Aircraft announced a plan to bring 600 jobs to Superior with an airplane manufacturing plant.

“Its’ a great deal for the community,” Boreen said. “All of the Is are dotted and the Ts are crossed, all we need to do now as a community is embrace it.”

To meet manufacturing goals set forth in the alliance agreement, Exodus will expand operations in Superior, where the company currently manufactures material handling machines. Boreen said that the company will expand the physical space 50,000 to 60,000 square feet to accommodate the new projects.

Exodus will continue to manufacture its own brand of equipment during the next year before transitioning to manufacturing Caterpillar-brand machines.

The Superior plant currently employs 55 engineers, technicians and support staff.