Sail-In participants update Congress on benefits of strong, unified maritime industry

An estimated 155 American maritime industry representatives from throughout the country gathered in Washington, D.C. May 9 for the third annual Sail-In. They participated in more than 170 meetings with members of Congress and Congressional staff.

“The Sail-In is the one time of the year that nearly every segment of the maritime industry comes together to brief Congress on how we make the United States stronger and safer,” said James Henry, President of the Transportation Institute and Chairman of the American Maritime Partnership. “Working together as one, maritime personnel from the Great Lakes, inland rivers, deep seas and beyond help boost America’s national and homeland security while promoting much-needed job growth here at home.”

This group of maritime professionals gathered to update Congress a day after the release of a new study from the Navy League of the United States that says a unified domestic maritime industry plays a “unique and extraordinary” role in promoting U.S. economic, national and homeland security.

Limestone up, coal down on Great Lakes

Limestone shipments on the Great Lakes showed increases in April, while coal was down from volumes reported a year ago.

Shipments of limestone on the Great Lakes totaled 2.6 million tons in April, an increase of 21 percent compared to a year ago and 5.1 percent better than the month’s five-year average. The strongest gains came at U.S. ports. Loadings rose by almost 370,000 tons, or 21 percent. Shipments from Canadian quarries increased by nearly 80,000 tons, or 20.5 percent.

Year-to-date, the Lakes limestone trade stands at 2,753,400 tons, an increase of 26.5 percent compared to a year ago and 6.5 percent ahead of the five-year average for the January-April timeframe.

Shipments of coal on the Great Lakes totaled 2.2 million tons in April, a decrease of 3.8 percent compared to a year ago. However, when compared to its five-year average, the trade was down nearly 27 percent.

Loadings at Lake Superior ports increased by nearly 10 percent, but shipments from Chicago fell by a third. Lake Erie ports were off 12.3 percent, or 90,000 tons.

Year-to-date, the Lakes coal trade stands at 3.3 million tons, a decrease of 8.7 percent compared to a year ago. Loadings are 31 percent behind the five-year average for the January-April timeframe.

Open house, Migration Mania scheduled

The Cleveland-Cuyahoga County Port Authority and the Environmental Education Collaborative are hosting an open house to celebrate the opening of the Cleveland Lakefront Nature Preserve. The event includes Migration Mania, an opportunity for the community to experience the spring migration of birds at the preserve.

The event will be held from 7:30 a.m. to 2 p.m. Saturday, May 19 at the Cleveland Lakefront Nature Preserve, located directly behind the Ohio Department of Natural Resources (ODNR) office at 8701 Lakeshore Blvd. NE, Cleveland, just east of Dr. Martin Luther King Jr. Boulevard.

Visitors are invited to walk the 1.3-mile loop trail and attend the following activities:

• 7:30 a.m., 8:00 a.m., 8:30 a.m. and 9:00 a.m.
  Take a guided hike led by some of the region’s leading naturalists.
• 9:00 a.m., 10:00 a.m. and noon
  Enjoy an environmental education presentation on wildlife, geography, soils, butterflies, insects and plants at the nature preserve.
• 11:00 a.m. and 1:00 p.m.
  Learn more about the history and ecology of the site.

The preserve is an 88-acre wildlife haven on the Lake Erie shoreline, within view of Cleveland’s skyline. Audubon Ohio has designated the peninsula as an Important Bird Area. It is managed by the port authority, which opened it to the public on a daily basis in February.

Donjon Marine refloats carferry

Donjon Marine was awarded a job in late March to refloat the 277-foot ex-Staten Island, New York carferry Gov. Herbert H. Lehman.  The vessel sank in the Hudson River while in layup in Newburg, New York. After almost four weeks of patching and test-pumping the submerged hull, and with the use of Donjon’s 1,000-ton-capacity derrick barge Chesapeake 1000 to stabilize the vessel during refloating, the ferry was refloated and returned to its owners.

Kaptur sponsors tugboat naming ceremony

Congresswoman Marcy Kaptur, Representative of Northern Ohio’s Ninth Congressional District, was the sponsor and principal speaker at the naming ceremony for the tugboat Handy-Three at Great Lakes Shipyard May 2.

“She is here today because of her sponsorship and commitment to small shipyards,” said Ron Rasmus, President of The Great Lakes Group.

Kaptur has championed the passage and funding of the Assistance to Small Shipyards Grant Program, which makes grants for capital and related improvements for qualified small shipyard facilities to foster efficiency, competitive operations and quality ship construction and repair. Great Lakes Shipyard has been the recipient of such grants.

Ocean Industries announces construction of state-of-the-art tugboat

Ocean Industries Inc. announced the construction of a new 25-meter tug at its Isle-aux-Coudres facilities. This new construction, valued at $10.6 million, is made possible, in part, by the Industry Canada Structured Financing Facility program, which will provide 15 percent of the purchase cost.

Construction of the tug is beginning and delivery is scheduled for December. The tug, owned by Océan Remorquage Montreal Inc., will be used for harbor operations in the Port of Montreal, ship escort services, short- and long-distance towing, rescue operations and wreck removals. The 4000 BHP tug will have a reinforced hull for ice navigation, Z-drive type omni-directional propellers and a fire fighting system.

“Ocean is a growing company. We continuously invest in state-of-the-art equipment to meet our customers’ expectations. The expertise and skill of our employees allow us to build top-quality tugboats,” said Jacques Tanguay, First Vice President and General Manager. “This new 25-meter tug will also join Ocean’s fleet and will contribute in maintaining the flexibility of our operations along the St. Lawrence River.”

In addition, a new trailing suction hopper dredge is currently under construction at the Isle-aux-Coudres shipyard and will be completed in August.

Clipper sails into Duluth on maiden voyage

A newly christened oceangoing vessel, Clipper Gemini, sailed into the Port of Duluth-Superior May 5. The 393-foot Bahamian-flag vessel left Kobe, Japan February 23 and entered the St. Lawrence Seaway April 28.

Crews from Lake Superior Warehousing Co. discharged its breakbulk cargo of gas and steam turbine/generator components for a large electricity generation project (including six heavy-lift units) at the Clure Public Marine Terminal. From Duluth, the cargo will travel via specialized railcar and truck to the ENMAX Shepard Energy Centre in Calgary, Alberta, Canada.

“Delivery of this significant cargo has been painstakingly planned down to the last detail,” said Gianna Manes, ENMAX Corporation President and CEO. “Each of the natural-gas fired turbines weighs about 735,000 pounds and is equivalent to a four-story building in length. Once in place and operational, the 800 MW Shepard Energy Centre will be a pivotal facility to Alberta’s growing electricity needs.”

Cargo onboard the Clipper Gemini is one of nearly 20 shipments of heavy machinery and other energy-related equipment expected in the Twin Ports during 2012, the majority of which will include components for U.S. wind energy projects.

Bay Shipbuilding to hire 30

Bay Shipbuilding Co./Fincantieri in Sturgeon Bay, Wisconsin is adding 30 new full-time union employees and more will be needed later this summer, said General Manager Gene Caldwell. Bay Ship currently has about 500 union employees, not counting contract employees temporarily used for winter ship repairs or office personnel.

The 30 skilled-trade positions to be added include 10 pipefitters, eight electricians, six steelworkers or shipfitters, three outside machinists and three welders.

Adding full-time permanent workers is a first for Caldwell since he took the helm as General Manager in August 2010. The shipbuilding industry, including Bay Ship, suffered several layoffs since the economic downturn of 2008. Just last May, workers were receiving layoff notices as the winter fleet left Sturgeon Bay.

But Caldwell promised a return to actual shipbuilding at Bay Ship, aside from repairing vessels in Sturgeon Bay, when he began. That new course seems to be turning the company around. All previously laid-off workers eligible to return to work have been called back, he said.

“This is directly related to Tidewater new construction and our conversion work,” he said. “I’m optimistic this won’t be the only time we’ll be hiring permanent, full-time employees.”

Bay Shipbuilding secured a contract last year with Tidewater Marine, based in New Orleans, to build two platform supply vessels to be used in the Gulf of Mexico for the oil rig industry. More employees will be needed as construction progresses on those vessels.

The Tidewater contract came through at the same time Marinette Marine, Bay Shipbuilding’s sister company, also landed a large naval contract for 10 littoral combat ships. Both shipyards in Marinette and Sturgeon Bay and one in Green Bay are subsidiaries of Fincantieri Marine Group.

CWB applauds progress on agricultural trade with Morocco

The Canadian Wheat Board (CWB) welcomed an announcement by the Government of Canada of progress towards stronger agriculture trade ties between Canada and Morocco, an important buyer of high-quality durum wheat worth approximately $175 million to prairie farmers last year.

Agriculture Minister Gerry Ritz said efforts are proceeding to forge a free-trade agreement to ensure Canadian durum sales to Morocco are not at a competitive disadvantage. Ritz, who just completed a successful mission to Morocco, has invited Moroccan officials to Canada in June for the next round of negotiations. He also announced the signing of a Memorandum of Understanding to foster stronger ties between the two countries by enhancing the exchange of knowledge.

“I congratulate the minister for his ongoing efforts to ensure strong export markets for Canadian grain and other agricultural products,” said CWB President and CEO Ian White. “A free-trade agreement is crucial to ensuring that Canada’s dominant position in the Moroccan durum market is not eroded.”

Durum makes up more than 90 percent of the value of Canadian agricultural exports to Morocco. CWB exported almost 600,000 metric tons of durum to Morocco in the 2010-11 crop year, making Morocco its second-largest durum customer. Canadian farmers supply 80 percent of Morocco’s durum import needs.

However, that dominance may be threatened if other countries retain preferential wheat market access through their own trade deals. The United States is in the sixth year of a 10-year implementation period of its own free-trade agreement with Morocco, which provides an increasing tariff advantage for U.S. durum into this crucial market.

The Great Lakes Group schedules naming ceremony

The Great Lakes Group will host a vessel naming ceremony and luncheon for the tugboat Handy-Three. The event will be held 11 a.m. Wednesday, May 2 at 4500 Division Ave., Cleveland, Ohio.

Congresswoman Marcy Kaptur, Representative of Ohio’s 9th Congressional District, will be the principal speaker.

Phoenix Services opens slag processing facility at Burns Harbor

One of the fastest growing companies in the country is opening a state-of-the-art slag processing and distribution facility at the Port of Indiana-Burns Harbor. Phoenix Services recently signed a multi-year contract with ArcelorMittal to provide slag and processing services for the steel giant. Phoenix Services has opened a 13-acre distribution facility at the port and is installing processing equipment at various locations throughout the ArcelorMittal complex.

“We are in the process of installing the most technologically advanced slag processing plant in the world,” said Doug Lane, President of Phoenix Services. “We plan to produce the highest quality aggregates in the industry at production rates far exceeding other competitive operations.”

Phoenix will dig the ArcelorMittal blast furnace pits to recover scrap iron and slag and will process the slag into aggregate for use in local road construction projects. Slag can also be used in general construction, ice control, railroad ballast and improving water and soil quality. ArcelorMittal will reuse the recovered iron and Phoenix will distribute aggregates from the port by truck for local construction and by barge to manufacturing facilities around the country.

“Phoenix Services is a world-class company and we are proud to have them at the port,” said Ports of Indiana CEO Rich Cooper. “Phoenix is making major investments into state-of-the-art processing equipment here. The company’s overall growth in the last five years is most impressive.”

Transport Canada and Green Marine sign Memorandum of Cooperation

Transport Canada and Green Marine have signed a Memorandum of Cooperation to enhance environmental protection and performance in the marine shipping sector. The agreement was announced to members of the Canadian Marine Advisory Council at its annual meeting in Ottawa. The Memorandum of Cooperation designates Transport Canada as a “Green Marine supporter.”

“Transport Canada’s support will play a key role in expanding the program’s scope in terms of both content and industry participation,” said Raymond Johnston, Chair of Green Marine’s board of directors. “The Memorandum of Cooperation recognizes Green Marine as a unique opportunity to promote a culture of continuous environmental improvement on a voluntary basis among shipowners, port authorities, terminal operators, the St. Lawrence Seaway and shipyards.”

Under the Memorandum of Cooperation, Transport Canada will also participate as an observer on the Green Marine Environment Committees. This will involve monitoring developments and exchanging information to support the advancement of Green Marine’s goals.

Port plans ODOT maintenance facility

The Cleveland-Cuyahoga County Port Authority’s board of directors has agreed to enter into a partnership with the Ohio Department of Transportation (ODOT) to build a highway maintenance facility on a six-acre site in Euclid to house office, garage and storage facilities for highway repair and snow removal.

The port authority will finance and build the complex—estimated to cost $4 to $5 million—and sell the finished facility to ODOT. The new facility will position ODOT’s District 12 to provide improved snow removal and highway maintenance operations for highway drivers in Cuyahoga County’s eastern suburbs as early as next year.

“We are happy to be working with the port authority on this new Cuyahoga County maintenance garage in Euclid,” said District 12 Deputy Director Myron Pakush. “This new location will be more centrally located for our maintenance operations and provide enough space for a building large enough to store all our equipment indoors.”

“We are pleased to provide a cost-effective and timely facility solution to ODOT that will benefit highway users in our region,” said port authority CEO Will Friedman. “This project illustrates another way the Port of Cleveland can partner with public, private and nonprofit organizations that drive our economy and support job growth.”

The project is contingent on the completion of ongoing due diligence as well as approval from the State Controlling Board, which will consider the purchase agreement May 21.

Lake Express gives check to city, announces price rollback

In the last eight years of operation at the Port of Milwaukee, Lake Express, LLC has generated $1.15 million in revenue from rent, parking and passenger fees. A check in that amount was presented to the City of Milwaukee April 16.

The city leases the port terminal and dock to the Lake Express. In turn, the ferry provides round trips for more than 100,000 people between Milwaukee, Wisconsin and Muskegon, Michigan, boosting tourism by drawing travelers from throughout the country and the world.

“People go to our restaurants, go to our theater, go to the ballgame,” said Milwaukee Alderman Michael Murphy. “All those additional revenue dollars come to the City of Milwaukee, and we use that to offset our increase in taxes or decrease taxes.”

Lake Express also announced a rollback of 20 percent or more on all ticket prices for the 2012 season. Reservations for the 2012 sailing season of the Lake Express are now available online and by phone. Sailings begin May 4.

New leadership for ABS

ABS Vice President and current Chief Engineer Dr. Kirsi Tikka will transfer to London to assume the role of President and COO of the ABS Europe Division. Tikka, a native of Finland, takes over from John McDonald who is transferring to Houston, Texas as Vice President and Chief of Staff of the organization.

McDonald brings a broad range of operational and client service experience to his new role as Chief of Staff at the society’s global headquarters. He has been with ABS for more than 15 years and has held several leadership positions prior to his European tenure, including District Manager for the U.S. Central District and Assistant Chief Surveyor for Naval Programs.

“John McDonald brings direct operational knowledge and a strong client-oriented perspective to the challenge of constantly improving ABS service delivery,” said Wiernicki. “We are a global organization and it is important that we have wide-ranging experience in our senior management team. McDonald’s experience in Europe will be extremely important as he evaluates and recommends new approaches that will further accentuate the superiority of ABS services in the rapidly evolving and demanding marine and offshore classification sectors.”

The management changes will be effective May 1.

House addresses Great Lakes dredging crisis

The end of the Great Lakes dredging crisis took a step closer to reality last week when the U.S. House of Representatives passed H.R. 4348 and included a provision that could lead to substantially increased Great Lakes dredging funding. The amendment directs that all funding collected in the Harbor Maintenance Trust Fund be spent on dredging each year. 

“Passage of H.R. 4348 with the Boustany amendment represents further progress in requiring that the Harbor Maintenance Trust Fund monies all be spent on dredging each year,” said Eugene Caldwell, President of Great Lakes Maritime Task Force (GLMTF). “This is important progress as this legislation moves forward toward a House/Senate Conference Committee.”

“The dredging crisis has limited Great Lakes shipping’s ability to efficiently serve America’s industrial heartland,” said Don Cree, 1st Vice President of GLMTF and Great Lakes Special Assistant to the National President for American Maritime Officers. “Ships designed to carry more than 70,000 tons of iron ore or coal each trip have routinely left port with 10 percent or more of their hauling power unused. The lost carrying capacity has effectively decreased the capacity of the Great Lakes/Seaway system.”

“GLMTF has dedicated all its resources to the dredging crisis,” said James H.I. Weakley, 2nd Vice President of the coalition and President of Lake Carriers’ Association. “At times it seemed the battle was lost, but thanks to the dedicated efforts of our Great Lakes delegation in Washington, we continue to make progress on this critical issue.”

“Now we must focus our efforts on the House/Senate Conference Committee,” said John D. Baker, 3rd Vice President of GLMTF. “Senator Carl Levin (D-MI) and a bipartisan group of his colleagues have led this effort in the Senate. We are fortunate that our senators are equally dedicated to shipping on the Fourth Sea Coast.”

Baker, who is also President Emeritus of the International Longshoremen’s Association’s Great Lakes District Council, stressed that support for the dredging issue has been bipartisan and a sterling example of the region’s delegation coming together to achieve a common goal.

Port authority receives grant for infrastructure development

The Ohio Department of Development awarded the Toledo-Lucas County Port Authority $2.8 million for the further development of infrastructure on the Overland Industrial Park, located at the former Jeep Parkway property. The award comes from the state’s Job Ready Site Program.

In November 2011, the port authority submitted a grant application asking for approximately $3 million to address four areas of development: the creation of a road off of Central Avenue, the creation of a roundabout that would allow future access to the site from I-75, the installation of a rail line and additional site-related activities.

The port authority believes that the redevelopment of the site is critical to the future economic viability of the community. The site is ideally located with access to the interstate system, as well as rail assets. Moreover, the site provides tremendous visibility to its end-users as more than 25,000 people pass the site daily.

“Toledo has a rich manufacturing history and this site is a prime location for industrial and commercial development,” said Paul Toth, President and CEO of the Toledo-Lucas County Port Authority. “This project benefits from the support of several key officials both locally and nationally. We are very much appreciative of the state’s continued confidence in the port authority and its goal of redeveloping the site.”

Currently the port authority is working on a Request for Proposals seeking a public-private partner for vertical construction on the site. This request should be advertised no later than May 1.

Since the port authority acquired the site in 2010, it has received more than $6.14 million in grant funds from several sources, including the Housing and Urban Development-Economic Development Initiative, Clean Ohio Revitalization Fund and the City of Toledo’s Revolving Loan Fund.

Combined with this award, the port authority has received a total of $8.94 million for the redevelopment of the site.