Inland Port 2014 No 5 by Daron Jones

Inland Port inlandportmagazine.com @inlandportmag

2014 Issue 5

Reaffirming the

Jones Act

Industry Legislative Update IRPT Conference Preview Tom Allegretti of AWO and AMP

Inland Port

2014 Issue 5 • Volume VI ISSN 2156-7611

www.inlandportmagazine.com @inlandportmag Published bimonthly by

HJP

Hudson Jones Publications, LLC Houston, Texas • Tulsa, Oklahoma 281-602-5400 EDITOR Daron Jones djones@inlandportmagazine.com DIRECTOR OF ADVERTISING Jo Anne Hudson jhudson@inlandportmagazine.com Entire contents ©2014, all rights reserved. Reproduction in whole or in part, without written permission of Hudson Jones Publications, LLC, is prohibited. The publisher accepts no responsibility for content of any advertisements solicited and/or printed herein, including any liability arising out of any claims for infringement of any intellectual property rights, patents, trademarks, trade dress and/or copyrights; nor any liability for the text, misrepresentations, false or misleading statements, illustrations, such being the sole responsibility of the advertisers. All advertisers agree to defend, indemnify and hold the publisher harmless from all claims or suits regarding any advertisements. Due to printing and ink variances, the publisher does not guarantee exact color matching. Opinions expressed by writers are not necessarily those of the publisher or staff. Readers’ views are solicited (djones@inlandportmagazine.com). Publisher reserves the right to publish, in whole or in part, any letters or correspondence received. Publisher assumes no responsibility for unsolicited material.

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IRPT Set for Super Show in Shreveport

Colombia Continues Improvements to River and Key Ports

Hailing America’s Maritime Surge and Questioning Jones Act Critics

Industry Reaction to Cromnibus Passage

Industry News and Notes

Soy Transportation Coalition Elects Officers for 2015

Maritime Case Law Update

ClearSpan Adds Options to HD Building Line

Aberdeen Lock and Dam Renamed to Honor Don Waldon, Former Tenn-Tom Administrator

Inland Port 2014 • Issue 5

Exclusive interview with Executive Director Aimee Andres

By Julian Palacio, Latin American Association of Ports and Terminals

By Tom Allegretti, American Waterways Operators’ President & CEO, and Chairman of the American Maritime Partnership

Statements from AAPA, WCI, and PNWA

By Paul J. Loftus, Huddleston Bolen, LLP, and Katherine E. Beyer, University of Kentucky College of Law

20 Terex Launches New Telematics System Cover Photo by Alan Dooley

IRPT Set for Super Show in Shreveport

here are big plans in store for Inland Rivers, Ports & Terminals’ (IRPT) annual conference. The 2015 show will take place April 27-30 at Sam’s Town Resort in Shreveport, La., with a stellar lineup of speakers and events. IP spoke to Aimee Andres, the executive director of this influential industry organization, about the group’s plans for the show, as well as the rest of 2015 and beyond. Tell us about the big show coming up. What can attendees expect at this year’s IRPT Conference as far as speakers and events? The 2015 annual conference will focus on Economic Development. We will be covering commodities, site selection, multi-modal partnerships and much more.

Exclusive Interview with Aimee Andres Executive Director Inland Rivers, Ports & Terminals

How did you come to choose Shreveport for this year’s site? What cities are in the pipeline for coming years? The 2015 conference in Shreveport is to kick off the two-year term of our new president, Hugh McConnell. He is the operations director for the Port of Caddo-Bossier, which is located in Shreveport. The Caddo-Bossier Port will soon be home to Benteler Steel/ Tube’s first North American manufacturing facility, which underwent a rigorous site selection process. This year’s conference will contain a panel of the nation’s best site selectors, as the selection process is a crucial aspect in our industry. My goal through the expertise of the panel is for our attendees to walk away from the conference better armed with tools to attract new business to their region and their port.

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2014 Issue 5

Tell us about what is new with IRPT. Were there big changes to your board and officers this year? Sadly, IRPT’s Board of Directors recently suffered the loss of Eugene Bishop, IRPT board member of the Southeast Rivers Basin. Mr. Bishop passed away on October 17, 2014. In addition, we miss Bruce Windham, also a board member of the Southeast Rivers Basin, as he is recovering from a stroke. The IRPT board of directors and officers are extremely energetic and very motivated to help our industry move forward. This is evident through their constant engagement. Over half of the board members have already hosted basin meetings. Quarterly meetings have been so well-attended that proxies have not been needed, and many, if not all, serve on other regional or national boards. What initiatives did you spend the most time and effort on in 2014? 2014 was a very busy year for IRPT and our members. We created the Missouri River Revitalization Committee, which met every six weeks with industry and government to increase shipping on the Missouri River through cooperation. With cooperation between the US Army Corps of Engineers, the US Coast Guard and enthusiastic industry leaders generating new business, the committee has been a success and we are hopeful the tonnage numbers will reflect that. IRPT’s newly-formed Regulatory Affairs Committee has been a success for our members. This committee was created to consider, evaluate, comment on, and participate in agency rulemaking and matters concerning the inland waterways. To date, the committee has evaluated the LNG market and provided an opinion to congress, as well as entered into discussions with the IL EPA to develop best practices for the storage of salt. IRPT continues to educate our industry users on the importance of accurate tonnage reporting through our basin meetings, newsletters and webinars. While the Corps evaluates the limited resources for operation and maintenance of critical infrastructure, it is imperative the metric system used for determining projects is unified. On September 17th, IRPT signed a memorandum of understanding with Mississippi River Transportation, Distribution and Logistics (MRTDL), a consortium of nine community colleges along the Mississippi River from the headwaters to the gulf. We are working together to identify new or redesigned programs and curriculum to recruit, educate, train, and certify the river industry workforce. IRPT has shown our continued commitment to promote containerized shipping on the Mississippi River. We have been working with Maritime Administration, 2014 Issue 5

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Mississippi Rivers Cities and Towns Initiative and major retailers to make this a reality. How did the November elections impact what IRPT is trying to accomplish going forward? Is the industry on firm groud as far as legislation and federal backing goes, or do we still have a long way to go? IRPT is encouraged by the passage of the WRRDA bill, but we understand there is still a lot of work to be done with implementation and appropriations. With the November elections behind us, we as an industry must continue to encourage our new or returning Congressional delegates on the importance of the waterways: 1) as a crucial aspect of the nation’s freight system, and 2) as an economic driver to the nation and the communities along the rivers. Passing the WRRDA bill was only one of the multiple steps to be taken. Our river professionals need strong collaboration to advocate for legislation, educate the general public, promote the waterways and encourage cooperation. Overcoming challenges won’t be easy and it will take strong collaboration at every level to achieve success. IRPT has made huge steps over the past year to serve as the voice and a resource to our members and we are dedicated to keep that momentum going. IP

The 2015 conference in Shreveport will mark the start of Hugh McConnell’s two-year term as IRPT’s president. McConnell is the operations director for the Port of Caddo-Bossier, located in Shreveport.

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2014 Issue 5

Colombia Continues Improvements to River and Key Ports By Julian Palacio Executive Director Latin American Association of Ports and Terminals

s he started his second term, Colombian President Juan Manuel Santos expressed optimism his country’s place in the global shipping economy was secured. A $1.35 billion contract was recently awarded to Brazilian Odebrecht to channel a 160-mile stretch of river in the center of the country (Puerto Salgar-Barrancabermeja) to its mouth in the Caribbean Sea, the Port of Barranquilla. The contract also calls for maintenance of the navigable channel for ten years. As the country prepares to celebtrate the bicentennial of its indepenedence in 2019, it is ensured that the river will be the most important artery of transportation. The basin has 115,000 square miles, 35 million inhabitants and about $200 billion of GDP, representing 25% of Colombia’s national territory, 80% of the population, and 85% of the GDP. The former head of river engineering of the United States Army Corps of Engineers USACE (district of St. Louis, Missouri), Rob Davinroy, through the company CD Engineers, participated in the technical studies that served as the basis for the bidding process. International companies now involved in the reinvigoration of Colombia’s port system include Naviera Central, a subsidiary of Seacor Holdings of United States; Impala, a subsidiary of the Swiss mineral trader Trafigura; and SSA Marine, also of the United States, with its subsidiary Barranquilla Container Terminal. According to a market research prepared in 2012 by Rotterdam Maritime Group, the Port of Barranquilla could increase foreign trade cargo movement 2.5 times in the next ten years, from 8 to 20 million tons. It will handle mainly coal, crude oil, grain and containers. At the other end, Puerto Salgar, in the center of the country and only 90 miles away from the capital Bogota, was the focus of a positive feasibility study prepared 2014 Issue 5

by the consultancy company TEC Inc., donated by the Trade and Development Agency of the United States USTDA. The importance of Puerto Salgar, the port of the country’s capital city of Bogota, is such that the Colombian government is improving connectivity by adjacent highways, with several tunnels and viaducts to minimize the effects of the mountainous geography of the country. This is an attempt to convert this river port into the most important in the country due to its proximity to the main centers of production. IP

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Hailing America’s Maritime Surge

By Tom Allegretti, American Waterways Operators’ President & CEO, and Chairman of the American Maritime Partnership

ast year, I declared the Jones Act both a commercial and a public policy success. This year, I am going to double down on that assessment. As Chairman of the American Maritime Partnership (AMP), the largest coalition ever established on behalf of America’s maritime industry, we represent a broad spectrum of interests. These interests are tied together by our support for the Jones Act as the foundation of a vital and vibrant domestic maritime sector. AMP represents the companies and workers that are spearheading America’s domestic maritime renaissance. The industry’s greatest accomplishment over the past year has been its response to America’s domestic energy boom, which has sparked remarkable growth in the U.S. shipbuilding and water transportation sectors. As the shale oil revolution has transformed the domestic energy market, it has also led to a significant increase in the transportation of crude oil on U.S. waterways. The rapid increase in the domestic supply of oil has been accompanied by exponential growth in the waterborne movement of these products. The domestic maritime industry, with the Jones Act as its statutory foundation, is investing heav8

ily to meet the transportation demands of this new energy economy. As a result, we are witnessing a new era of domestic vessel construction. Twenty- six fuel efficient, state-of-the-art tankers and ATBs are being built in U.S. shipyards, which will add approximately 7.6 million barrels of new capacity to the domestic fleet. These are 100% American vessels that are environmentally friendly and feature advanced safety systems. This surge is saving and creating American jobs, at a time when military ship construction is on the decline. We are also seeing record investment and construction of inland tank barges. Last year was an all-time high in new barge construction, with 336 inland tank barges delivered for a combined capacity expansion of 8.2 million barrels. Adding that to the blue water numbers on the last slide, we’re talking nearly 16 million barrels of inland and oceangoing tank vessel capacity. What undergirds this multi-billion dollar private sector investment? The Jones Act, which provides the certainty American companies need to commit the capital that make this construction, and the jobs that go with it, a reality. The domestic maritime sector has always been a jobs creator, and that is inlandportmagazine.com • @inlandportmag

true now more than ever. But, domestic maritime offers more than just jobs – it offers career opportunity. In the tugboat, towboat and barge industry, for example, a young person can finish high school, start out as a deckhand and rise through the ranks, earning a six-figure income as a captain or pilot in less than a decade. Jobs like that are good for American families and good for the American economy. Nationwide, domestic maritime contributes $100 billion to the nation’s economy and supports nearly 500,000 jobs. State and local economies depend on the domestic maritime sector. This is just a sampling of the countless good news stories that show the tremendously positive impact domestic maritime has on states across the nation. These are 100% American jobs that can never be outsourced... these are Jones Act jobs. As the industry grows, so does our need for skilled workers. This is why AMP has launched an initiative called “Military2Maritime.” This summer, we hosted two job fairs, one in Houston and the other Jacksonville, to reach out to American veterans and share information on the great family-wage jobs and career opportunities in our industry – opportunities for which their past experience makes them very 2014 Issue 5

And Questioning Jones Act Critics

2014 Issue 5

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attractive candidates. We look forward to more such events to reach vets in other parts of the country. The next one will likely be in Norfolk/Hampton Roads. The domestic maritime fleet, with the Jones Act as its foundational law, brings our nation countless economic benefits, but the industry is also critical to U.S. national and homeland security. American mariners are the eyes and ears of our inland waterways and our coastlines, protecting homeland security from coast to coast. American companies and American mariners provide this security force-multiplier without taking a dollar of taxpayer money and are always ready to provide assistance during a security threat or natural disaster. Given the value American maritime brings to our country, it’s not surprising that the Jones Act has consistently enjoyed strong bipartisan support from Congress, from the Administration, and from our nation’s military leaders. Secretary of Transportation Anthony Foxx made the position of the current Administration loud and clear when he stated that his boss President Obama “is on the record supporting the Jones Act, and so am I.” Mary Landrieu, Chair of the Senate Energy Committee; Congressman Steve Scalise, House Majority Whip; Bill Shuster, Chairman of the House Transportation and Infrastructure Committee; the bipartisan leaders of the House Transportation Subcommittee on Coast Guard and Maritime Transportation; elected officials who recognize the importance of domestic maritime to their states and districts as well as to the nation: they all support the Jones Act, and for good reason. With all of this support, you might wonder who would criticize such a fundamental plank of U.S. economic and national security. It seems as though there is always someone out of the mainstream, sometimes way out of the mainstream. The current complainer is Charles Drevna, president of the American Fuel and Petrochemical Manufacturers. Drevna repeatedly has called for changes to the Jones Act. We are fortunate that his call for changes to the Jones Act has gotten zero traction on Capitol Hill. There are a number of reasons why Members of Congress are finding Drevna’s proposals so unappealing. First, his primary argument is what we sometimes call the “big myth.” Drevna likes to compare the cost of foreign vessel rates to American vessel rates, arguing that it would be cheaper to replace American Jones Act vessels with foreign vessels. He has even argued that it would be cheaper to move cargo in domestic 10

Tom Allegretti, American Waterways Operators’ President & CEO, and Chairman of the American Maritime Partnership

commerce if we replaced American mariners with foreign mariners. Well, that’s an unconventional idea! We’ll replace all the American workers with foreign workers, pay them third world wages, and see if we can’t reduce the cost of domestic shipping! And when we are done with shipping, perhaps we can do the same with Drevna’s refineries. Then eventually we can replace all American workers with cheaper foreign workers. This is not a serious proposal, and comparing domestic shipping rates to foreign shipping rates is comparing apples to oranges. American companies are subject to different, more expensive and extensive laws than foreign shipping companies – wage and hour laws, immigration laws, and tax laws, just to name a few. Once you start adding in the cost of complying with U.S. laws, then suddenly the cost differential between U.S. and foreign shipping starts to disappear. Think taxation. Foreign ships pay very little or no taxes, whereas U.S. shipping companies have effective tax rates as high as 38 percent. That alone is a huge difference in cost structures. The Jones Act applies U.S. laws to U.S. operations. The Jones Act vessels Drevna refers to operate 100% in U.S. domestic commerce. I challenge him to name any industry in America where a foreign company can operate 100% in American domestic commerce without complying with American laws. Of course, there is none. It’s not clear why Drevna thinks the American maritime industry, alone among domestic industries, should be outsourced to foreign interests and foreign workers that would not be subject to U.S. laws. Here’s a chart that outlines the cost of a gallon of gasoline at the pump. Here’s the inlandportmagazine.com • @inlandportmag

2014 Issue 5

cost of an average gallon of gas – $3.61. Here’s the average cost to move it by Jones Act vessel – 1 cent or less per gallon. And here’s the cost to refine it – 40 cents a gallon. We certainly don’t begrudge the refiners that 40 cents cost share. Yet, Drevna is complaining about this small penny for marine transportation when his refining share of the cost is so much greater. I submit to you that Drevna wants to change the Jones Act for only one reason – so refiners can make even larger profits. Refiners are doing extremely well financially due to the new discoveries of oil that have fueled the energy renaissance. The Energy Information Agency reports that the abundance of cheap feedstocks in the U.S. allows American refiners to earn profits that are substantially higher than at other refineries around the world. They can use low cost U.S. raw materials yet sell petroleum products at world prices. We couldn’t be happier for them. That’s America at its best. But, it does make it all the more perplexing that Drevna would propose changes that would undermine America’s national, homeland and economic security just to make his already highly profitable companies a fraction more profitable. It does not seem to matter to Drevna that the changes he proposes would undermine American national, economic, and homeland security. Fortunately, it does matter to policymakers in Washington. • It might bother the Defense Department and Navy, for example, that national security and our defense industrial base would be undermined. • It might bother the hundreds of thousands of Americans whose jobs would be outsourced. • And many national leaders will never sanction the damage to America’s homeland security that would result from Drevna’s changes to the Jones Act. I reviewed the AFPM annual report recently. I was struck by a couple of things. First, several of its Board-level companies are the oil majors. These are companies that are engaged on a regular basis in the Jones Act trades, either as carriers or charterers. They are our partners, on a daily basis, in providing safe and reliable domestic marine transportation. I find it very hard to believe that they too think the country is better off handing our domestic maritime industry over to foreign interests. Second, I also notice lots of references 2014 Issue 5

to the importance of American industry and good paying American jobs and American security throughout the report, making it even odder that Drevna is so

willing to propose changes that would undermine the very same basis of another American industry, especially given the high level of investment this industry is making in building new vessels to move petroleum products. It just doesn’t make any sense. Throughout the past year, at a time when it sometimes seems like one negative news story after another, it’s nice to have some good news to reflect on – the

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news of America’s domestic maritime renaissance and the high-quality jobs it provides for American citizens. Recently, Vice President Joe Biden paid a visit to the Port of Virginia to celebrate American job growth and the domestic maritime renaissance of which I’ve spoken. The Vice President celebrated the hundreds of thousands of American workers supported by the port and reiterated what makes these jobs so valuable: “these are jobs with which you can raise a family.” And, domestic maritime jobs are Jones Act jobs. I’ll end as I began, by doubling down on my assessment that the Jones Act is a commercial and public policy success. It is good for America and good for Americans. IP Printed by permission from a presentation by Tom Allegretti, American Waterways Operators’ President & CEO, and Chairman of the American Maritime Partnership, at the TradeWinds Jones Act Forum on October 8, 2014. Contact him at tallegretti@vesselalliance.com.

Industry Reaction to Cromnibus Passage American Association of Port Authorities

In reviewing the proposed $1.01 trillion Consolidated and Further Continuing Appropriations Act of 2015 hammered out in Congress, the American Association of Port Authorities (AAPA) noted that there are significant increases for the U.S. Army Corps of Engineers’ Harbor Maintenance Tax (HMT) operations and maintenance (O&M) activities and construction budgets, and for the Environmental Protection Agency’s Diesel Emissions Reduction Act (DERA) grants program. While the Department of Transportation’s TIGER (Transportation Infrastructure Generating Economic Recovery) grants program will drop to $500 million compared with fiscal 2014’s $600 million mark, funding is still significantly higher than the House-proposed mark of $100 million. AAPA, representing more than 80 U.S. public port authorities, and its members have worked hard with its coalition partners and Congressional members this year for the increase in EPA’s DERA grants funding from $20 million to $30 million, and for the 10 percent increase in funding for the Corps’ HMT O&M activities. Earlier this year, AAPA initiated its “Hit the HMT Target!” campaign aimed at incrementally increasing HMT funding, as outlined in the 2014 WRRDA (Water Resources Reform and Development Act) legislation, until the amount collected each year equals the amount appropriated. The campaign urges the Administration and Congress to meet WRRDA’s annual HMT funding targets for harbor dredging and expanded uses at donor, energy transfer, underserved and Great Lakes ports, as well as for emerging harbors. The funding bill agreement also provides a 24 percent increase in the Corps’ fiscal 2015 coastal navigation construction budget over fiscal 2014 (an increase from $155 million to $192 million) in recognition of the need to modernize and expand America’s deep-draft navigation channels. With regard to the Corps’ HMT O&M budget, AAPA recognizes WRRDA’s June 2014 enactment came in the midst of the ongoing appropriations process, “but we’re pleased that Congress plans to significantly increase funding above the $915 million requested by the Administration,” said AAPA President and CEO Kurt Nagle. He further noted that, in the appropriations bill agreement, Congress will provide $1.1 billion in funding in fiscal 2015, representing a 10 percent increase over the landmark $1 billion appropriated last year. AAPA estimates that about $20 million should go for expanded uses at donor ports this year, as authorized under WRRDA. “The association is looking ahead to President Obama’s fiscal 2016 budget request and for Congress to hit the HMT target that was established in WRRDA, which would provide 69 percent of the $1.9 billion estimated to be collected in 2015 HMT revenues,” Nagle said. “The funding provided to port-related infrastructure programs in this ‘Cromnibus’ is recognition that lawmakers appreciate that seaports, the connections with them and the trade flowing through them, are vital to creating and sustaining jobs, economic growth and enhancing U.S. international competitiveness.” All federal agencies and departments will receive an appropriation through the end of the fiscal year except the Department of Homeland Security, which manages the Port Security Grants (PSG) program. The DHS received a short-term continuing resolution through Feb. 27 due to the disagreement between Congress and the president over his new immigration initiative. Although AAPA believes the PSG program will continue to be funded at $100 million for fiscal 2015, the final amount will remain uncertain until after DHS’ continuing resolution expires. “As Congress and the Administration grapple with the multiple goals of reducing the nation’s deficit while growing jobs and the economy, federal investments in ports and connecting infrastructure will continue to be an essential, effective utilization of limited resources paying dividends through increased trade, jobs and over $200 billion in tax revenues,” said Nagle. 12

Waterways Council, Inc.

The Consolidated and Further Continuing Appropriations Act of 2015 provides strong funding for the U.S. Army Corps of Engineers’ Civil Works mission for inland navigation. Emerging details from the Energy and Water Development and Related Agencies Appropriations Act of 2015, are as follows. The U.S. Army Corps of Engineers has fared well, with overall strong Civil Works program funding of $5.454 billion, which is $921.5 million above the Administration’s request. The Construction account funding of $1.639.5 billion is an increase of $514.5 million above the Administration’s proposal, including $112 million in additional funding for Inland Waterways Trust Fund (IWTF) projects, to be allocated by the Secretary of the Army. Operations & Maintenance (O&M) is funded at $2.908.5 billion, $308.5 million above the Administration’s request and $47.5 million above FY14 funding, including at least $42 million in additional funds for inland navigation. The Olmsted project is funded at $160 million at the 85% Federal funds and 15% IWTF funding cost-share change enacted in WRRDA. The Lower Mon project near Pittsburgh is funded at at least $9 million. No less than $1.1 billion is provided from the Harbor Maintenance Trust Fund, a $100 million increase, for the benefit of the nation’s ports and channels. In accordance with WRRDA 2014, there are specific funds set aside for inland ports and small ports for maintenance. No funding is provided for construction of hydrologic separation measures related to Asian carp. “WCI is grateful for the work of the Appropriations committees to deliver a full year of funding for the Corps of Engineers’ critically important Civil Works mission,” said Mike Toohey, President and CEO of Waterways Council, Inc. “We are especially grateful for the increased investment in inland waterways that was contemplated with the passage of WRRDA 2014 legislation.”

Pacific Northwest Waterways Association

The Cromnibus bill includes funding for eleven of the twelve unfinished Appropriations bills through September 30, 2015, as well as a CR for the Department of Homeland Security through February. In the $1 trillion spending package, the Corps is funded at $5.5 billion. A breakdown of the three Corps accounts pertaining to PNWA supported projects are as follows: • General Investigations (GI): $122 million • Construction General (CG): $1.639 billion • Operations & Maintenance (O&M): $2.908 billion It should be noted that the O&M funding includes $1.1 billion from the Harbor Maintenance Trust Fund, a significant increase over the $915 million included in the President’s FY2015 budget request. While this does not hit the HMT target set in the Water, Resources, Reform and Development Act of 2014 (WRRDA), it is a much appreciated increase of funds to be spent on maintenance of our nation’s deep draft and coastal harbors. The majority of the PNWA supported projects are funded at the levels proposed in the President’s budget. We are very pleased that Congress continues to recognize the lack of funding dedicated to Corps projects, and included “additional funding” for projects nationwide. All categories of interest to PNWA members fared well in the bill. Other important provisions were also included in the Congressional funding agreement. These include: • TIGER Grants. $500 million is included for an FY2015 TIGER Grant Program. This is a $100 million cut from FY2014 funding levels. • DERA Grants. The FY2015 Administration budget zeroed out the program, however, H.R.83 includes a 50% increase to FY2014 funding levels. • Principles & Guidelines (P&Gs). These guide Corps planning activity, and PNWA has worked with the National Waterways Conference to support continued use of the 1983 version of the P&Gs until the document is updated. IP

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2014 Issue 5

Defense Bill Reaffirms Congressional Support For Jones Act

he United States Congress recently enacted the strongest statement of support for the Jones Act and the American domestic maritime industry since the Merchant Marine Act of 1936. The measure was included as part of the National Defense Authorization Act (H.R. 3979), which noted that the national security benefits of the domestic maritime industry and the Jones act are “unquestioned.” The bill states that the Jones Act and the American domestic maritime industry are vital to “the national security and economic vitality of the United States and the efficient operation of the United States transportation system.” The legislation has been approved by the U.S. House of Representatives and the Senate and is expected to be signed into law by the President. “Congress has reaffirmed its support for the American domestic maritime industry, the Jones Act, and the critical role both play in the national security and economic vitality of our nation,” said American Maritime Partnership Chairman Tom Allegretti. “It is hard to imagine a more emphatic and unambiguous statement of support for the Jones Act than this legislation. The fact that it originated from both the House and Senate Armed Services Committees is only further evidence of the national security benefits of the Act and the American domestic maritime industry. In fact, this is the strongest Congressional statement of support for the Jones Act since the Merchant Marine Act of 1936.” The Congressional statement of support for the Jones Act as part of the National Defense Authorization Act specifically states: The national security benefits of the domestic maritime industry are unquestioned as the Department of Defense depends on United States domestic trades’ fleet of container ships, roll-on/roll-off ships, and product tankers to carry military cargoes; The Department of Defense benefits from a robust commercial shipyard and ship repair industry and current growth in that sector is particularly important as Federal budget cuts may reduce the number of new constructed military vessels; and The domestic fleet is essential to national security and was a primary source of mariners needed to crew United States Government-owned sealift vessels activated from reserve status during Operations Enduring Freedom and Iraqi Freedom in the period 2002 through 2010. House Majority Whip Steve Scalise (R-LA) and Coast Guard and Maritime Transportation Subcommittee Chairman Duncan Hunter (R-CA) recently noted the Jones Act contributions to America’s national security, saying “without the Jones Act, vessels and crews from foreign nations could move freely on U.S. waters, creating a more porous border, increasing possible security threats and introducing vessels and mariners who do not adhere to U.S. standards into the bloodstream of our nation.” According to a report from the Lexington Institute, “Without the Jones Act, the Department of Homeland Security would be confronted by the difficult and very costly task of monitoring, regulating, and overseeing all foreign-controlled, foreign-crewed vessels in internal U.S. waters.” IP 2014 Issue 5

Chicago Dry Dock’s Acquired by TPG Mt. Vernon Marine

ndiana-based TPG Mt. Vernon Marine, LLC purchased Chicago Dry Dock, a Chicago area shipyard founded in 1979. Chicago Dry Dock operates on the Calumet River and is the only facility of its kind to offer unencumbered access to both the Great Lakes (via Lake Michigan) and the Inland River System (via the Calumet/Des Plaines/Illinois Rivers). Founded as Kern Barge Cleaning and Repair, CDD purchased its first dry dock in 1995 and was renamed and incorporated as Chicago Dry Dock in 1996. Operating from seven secured acres less than three river miles from Lake Michigan, it has 1200 feet of sheeted wall and two floating dry docks that can accommodate repairs to vessels 262 feet long, 54 feet wide and up to 1500 tons. “We’ve worked successfully with a number of Illinois waterways and Great Lakes groups in the past,” said TPG President, Don W. Miller, Jr. “We have every confidence we can build an expanded maritime repair business on the solid reputations of Chicago Dry Dock and TPG.” IP

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Arkansas Waterways Commission Honors Hall of Fame Inductees

Port of Cleveland Earns No.1Ranking in Annual Logistics Survey

he Arkansas Waterways Commission recently honored three outstanding individuals in the waterways community for their induction into the Arkansas River Historical Society Hall of Fame. The Hall of Fame inductees were James Paul Latture, Sr. of Fort Smith; William A. (Tony) Thomas of Clinton, Miss.; and Steve Taylor, of Eucha, Oklahoma. Induction into the Hall of Fame is a tribute to those who have contributed outstanding and noteworthy service to the development of the Arkansas River, its basin, and the McClellan-Kerr Arkansas River Navigation System (MKARNS). “Mr. Paul Latture, Jr., one of our commissioners, is the son of Mr. Latture, Sr.,” says Gene Higginbotham, Executive Director of the Arkansas Waterways Commission. “Mr. Latture, Sr. was instrumental in the development of business in Fort Smith and the MKARNS. We appreciate the Arkansas River Historical Society giving Mr. Latture, Sr. this honor posthumously. He and the other inductees helped to make the MKARNS an economic engine for our state and are worthy of the honor.” The awards dinner was held in September in Fort Smith, in conjunction with the Arkansas Oklahoma Port Operators Association (AOPOA) and MKARNS Waterway Workshop. IP

The Port of Cleveland provides the best customer satisfaction and performance excellence among Great Lakes ports and scored the highest among all ports in the nation, according to the annual “Quest for Quality Awards” given by Logistics Management magazine. For more than three decades, “Quest for Quality” has been regarded in the transportation and logistics industry as the most credible measure of customer satisfaction and performance excellence. Its scores come from port customers, “the buyers of logistics and transportation services who put these ports to work around the clock and around the globe,” said Michael Levans, Group Editorial Director of Peerless Media, LLC. “And when you consider the challenging environment in which our nation’s transportation services providers have been operating over the past 12 months,” said Levans, “our editorial staff agrees that the Port of Cleveland’s success at securing a Quest for Quality Award in 2014 is nothing less than a tremendous achievement.” The “Quest for Quality” evaluates ports in five categories: 1) ease of doing business; 2) value; 3) ocean carrier network; 4) intermodal network; and 5) equipment and operations. Port of Cleveland CEO Will Friedman said, “We added more than a mile of rail track to enhance the interface with the two Class I railroads that serve our Port, Norfolk Southern and CSX, and we launched our own liner service to Europe through an unprecedented charter agreement with Amsterdam-based carrier Spliethoff Group. We have not accepted status quo in our Port and it’s very gratifying that customers and logistics practitioners recognize our efforts to better serve them through innovation.” IP

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2014 Issue 5

Soy Transportation Coalition Elects Officers for 2015 T

he Soy Transportation Coalition (STC) elected its officers at the organization’s December annual meeting in St. Louis. Scott Gauslow of Colfax, North Dakota, was elected Chairman of the STC. Gauslow grows soybeans and corn on his farm with his wife, Jessica, and their two children. He has been a board member of the Soy Transportation Coalition since the organization’s inception in 2007 and served as the STC Vice Chairman in 2013-2014. Gauslow also currently serves as Chairman of the North Dakota Soybean Council. “This past year, farmers have experienced the consequences of poor transportation service,” says Gauslow. “Many states, like North Dakota, that are primarily dependent upon rail service to move commodities to market suffered this past year due to our transportation system not being able to meet the needs of a growing agricultural industry. We witnessed how farmers ultimately are the ones who bear most of the burden from these challenges. I look forward to serving as chairman of the Soy Transportation Coalition – an organization that has positioned itself as an innovative and pragmatic voice for improving the transportation system for soybean farmers throughout the country.” Gerry Hayden of Calhoun, Kentucky, was elected Vice Chairman. The STC Secretary-Treasurer over the past two years, Gerry and his wife, Judy, raise cattle and grow soybeans, corn, wheat, and hay. Gerry and Judy have two children and two grandchildren. A past chairman of the Kentucky Soybean Association, Hayden currently serves on the board of directors of the American Soybean Association. Hayden states, “The soybeans grown in Kentucky and throughout the country are more likely to be consumed outside the country than within it. Because our customers are located in such distant locations, it continues to be critical that organizations like the Soy Transportation Coalition exist to promote a cost effective and reliable system of rural roads and bridges, highways and interstates, railroad infrastructure, inland waterways, and ports. If we fail to have a quality transportation system, farmer profitability will suffer.” Mike Bellar of Howard, Kansas, was elected Secretary-Treasurer. Mike and his wife, Peggy, have five kids and raise soybeans, corn, wheat, and swine. Mike is also a director on the Kansas Soybean Commission. “I am looking forward to serving as SecretaryTreasurer of the Soy Transportation Coalition,” says Bellar. “I believe seeking to improve the transportation system for the soybean industry is one of the best ways to work on behalf of my fellow producers. We have many challenges, but I look forward to 2014 Issue 5

moving the needle in a positive direction.” Concluding his service on the STC board is Pat Knouff, a soybean and corn farmer from Minster, Ohio. Knouff served as Chairman of the Soy Transportation Coalition from 2013-2014 and was a member of the board of directors since 2008. “One of the reasons the Soy Transportation Coalition has distinguished itself as an effective organization in a short period of time is due to having thoughtful and quality leaders like Pat Knouff,” explains Mike Steenhoek, executive director of the Soy Transportation Coalition. “We will miss Pat and the other directors who have concluded their service with the organization. Fortunately the current board of directors continues to be comprised of the type of farmer leaders that have been part of the recipe for success thus far and will be into the future. I look forward to working with Chairman Gauslow, Vice Chairman Hayden, and Secretary-Treasurer Bellar as we continue to promote a transportation system that benefits U.S. agriculture.” IP

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Maritime Case Law Update

By Paul J. Loftus, Huddleston Bolen, LLP, and Katherine E. Beyer, University of Kentucky College of Law WRONGFUL DEATH – JONES ACT/ GENERAL MARITIME LAW – PUNITIVE DAMAGES McBride v. Estis Well Service, LLC, 768 F.3d 382 (5th Cir. 2014). (Sept. 25, 2014). Injured seaman and estate of deceased seaman sued for damages under the Jones Act, as well as under the general maritime law, including claims for punitive damages. The full U.S. Court of Appeals for the Fifth Circuit, hearing the appeal en banc, reversed its original three-judge panel by holding that only “pecuniary” or compensatory damages were available to claimants under the Jones Act and all actions for wrongful death of a seamen. \The Court relied upon the 1990 U.S. Supreme Court’s case of Miles v. Apex Marine Corp., which noted the unaltered incorporation of the Federal Employer’s Liability Act (FELA) into the Jones Act by Congress, as authority for denying punitive damages claims, as punitive damages cannot be recovered under the FELA. The Court also noted the Miles decision also precludes punitive damage claims for wrongful death for unseaworthiness under the general maritime law, as it established a “uniform rule” for all wrongful death actions by seamen. The Fifth Circuit specifically declined to extend the Supreme Court’s 2009 Townsend decision to cover the wrongful death of a seamen under general maritime law, although several lower courts have done so since 2009. LHWCA DAMAGES Price v. Atl. Ro-Ro Carriers, 2014 U.S. Dist. LEXIS 131429 (D. Md. Sept. 18, 2014). Longshoreman injured when a forklift fell through an open hatch and struck him while aboard a vessel. Longshoreman claimed damages under general maritime law and the LHWCA for lost earnings and pain and suffering. The Court found that Maryland’s state-law cap on pain and suffering damages of $695,000.00 did not apply to Plaintiff’s maritime negligence claim under § 905(b) of the LHWCA. The Court found Maryland’s cap on non16

economic damages materially prejudiced maritime law’s treatment of non-economic damages, and thereby interfered with the uniform application of maritime law in the United States. MARINE INSURANCE – GOOD FAITH – CHOICE OF LAW Marine Ins. Co. v. Cron, 2014 U.S. Dist. LEXIS 127779 (S.D. Tex. Sept. 12, 2014). The federal court voided an insurance policy based on a vessel owner’s material misrepresentation of the actual purchase price of yacht ($65,000), versus the “market value” after extensive repairs ($305,000). After a grounding and subsequent insurance claim, the vessel burned to a total loss at dry dock under suspicious circumstances. Using established choice of law rules in maritime law, the Court concluded that the law of New York, rather than Texas, applied to the insurance dispute as New York law was specified in the insurance contract. The Court applied New York law’s requirement of “utmost good faith,” finding that the state-law requirement of utmost good faith is also required by maritime law. The Court also concluded that even if Texas law were applied, which provides an exception for unintentional misstatements, the result would be the same because Texas insurance law and federal maritime law share the common concern that an insured should profit not from material misrepresentations to the underwriter. JONES ACT – RIGHT TO JURY TRIAL – LIABILITY LIMITS In re Ingram Barge Co., 2014 U.S. Dist. LEXIS 136934 (C.D. Ill. Sept. 29, 2014). Following the injury of a barge worker from a snapped mooring line, his employer filed a Limitation of Liability action in federal court. In his Answer to the Limitation Act filing by his employer, the employee asserted counterclaims for negligence under the Jones Act and general maritime law, demanding a jury trial on inlandportmagazine.com • @inlandportmag

those claims. The Court considered the strong tradition of trying suits in Admiralty without juries in relation to the Seventh Amendment right to a jury trial and the statutory requirements of the Jones Act. Because the employer had initiated the litigation concerning the facts and circumstances of the worker’s injury (by initiating the Limitation Action), the employee was required to assert his liability claims in response to the Limitation Action, which ordinarily would be decided without a jury. However, the Court recognized that the Jones Act permits the employee to bring an action at law (as opposed to in Admiralty), with a right to a jury trial, which would have also entitled the employee to have any unseaworthiness claim heard by the same jury. Therefore, the Court concluded the filing of a Limitation Action by an employer before an employee asserts a legal or maritime claim cannot strip an employee of a right to a jury trial they would otherwise have had. The Court concluded it could decide the Limitation Action itself, during the trial of the other claims to a jury based on the same facts and evidence. OIL SPILL LIABILITY – CLEAN WATER ACT In re Oil Spill, 2014 U.S. Dist. LEXIS 123245 (E.D. La. Sept. 4, 2014). Concluding the first trial phase of the multi-district litigation resulting from the Deepwater Horizon fire, explosion, and oil spill, Judge Barbier of the U.S. District Court/E.D. Louisiana determined the spill was a result of gross negligence and willful misconduct on the part of the operator (BP), which subjected it to maximum penalties under the Clean Water Act. The Court found under general maritime that BP was reckless, and that certain Transocean and Halliburton were negligent in jointly causing the well blowout, explosion and spill, apportioning fault at 67%, 30% and 3% respectively. After finding certain Transocean entities to be an “operator” of an “Outer Continental Shelf facility” under the Oil Pollution Act, the Court also found those entities were liable to the government for oil removal costs. 2014 Issue 5

CHEMICAL SAFETY BOARD JURISDICTION – CLEAN AIR ACT United States v. Transocean Deepwater Drilling, Inc., 767 F.3d 485 (5th Cir. 2014). (Sept. 18, 2014). In another action arising from the Deepwater Horizon disaster, the Fifth Circuit determined that the Chemical Safety and Hazard Investigation Board (CSB) had authority under the Clean Air Act to investigate the spill because the drilling rig was a stationary source even though it was a vessel connected to a fixed point. The Court found the Clean Air Act did not preclude the CSB from investigating marine spills, and that the CBS is only precluded from investigating spills the National Transportation Safety Board is authorized to investigate, which must be related to transportation, and because the rig was stationary, the CSB had authority to investigate. MARITIME LAW – JURISDICTION Denehy v. Mass. Port Auth., 2014 U.S. Dist. LEXIS 124627 (D. Mass. Sept. 5, 2014).

activity. The court found that the helicopter was providing a ferry function traditionally performed by waterborne vessels and therefore it was sufficiently connected to maritime activities to support admiralty jurisdiction.

Plaintiff, a commercial clam digger, brought suit for damages under general maritime law relating to a jet fuel spill at the Boston Logan Airport. The Court found that it is the activity of the wrongdoer, not the injured party, that gives rise to admiralty jurisdiction. Defendant Port Authority conducts its business refueling planes on land, though the planes will fly over the harbor. The Court dismissed the claims because that activity does not have a substantial relationship to maritime law and cannot give rise to maritime law claims.

DREDGING – ONE CALL STATUTE Plains Pipeline, LP v. Great Lakes Dredge & Dock Co., 2014 U.S. Dist. LEXIS 123982 (E.D. La. Sept. 5, 2014). Dredging barge lowered its ladder with the cutter head in order to anchor its position and stop the dredge, which caused damage to Plaintiff’s underwater pipeline. Plaintiff claimed that Defendant violated the One-Call statute that requires that anyone excavating or demolishing an underground facility obtain the location of the facility 48 hours in advance of the activity to prevent damage. As a matter of first impression, the court found that anchoring activity was not covered by the One-Call statute, and that it would be unreasonable for a vessel to place such a call and wait up to 48 hours before attempting to anchor the vessel. IP

Clark v. PHI, Inc., 2014 U.S. Dist. LEXIS 96569 (E.D. La. July 16, 2014). Plaintiff brought suit under general maritime law against Defendants after he was injured in a serious helicopter crash. Plaintiff was a passenger on board the helicopter that was transporting him and others between sea platforms. The court held that admiralty jurisdiction was proper in this case because the accident occurred over navigable waters and because the helicopter’s activity was sufficiently connected to traditional maritime

BARGES

The Greener Way to Go Inland barges produce less carbon dioxide while moving America’s important cargoes. Inland barge transportation has the lowest carbon footprint of the other major modes. Moving identical amounts of cargo by rail generates 30% more carbon dioxide than by barge, and 1,000% more emissions by trucks than by barge.

499 S. Capitol Street, SW, #401, Washington, DC 20003 202-765-2166 www.waterwayscouncil.org 2014 Issue 5

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In Praise of Alan Dooley

Inland Port inadvertently failed to credit author and photographer Alan Dooley, who was responsible for last issue’s cover feature on the Kaskaskia River Port District in Southwest Illinois. We apologize to Dooley for our error, and thank him for the great work he has done for our magazine and other media outlets. In addition to his media work, Alan has a photography business. If you’d like to see more of his work, visit his web site at www.proimagingmidamerica.com. He is an accomplished writer, and can help you tell your inland waterways story. He is familiar with that segment of our economy, having served over eight years as the public affairs chief at the Corps of Engineers St. Louis

District. This issue’s cover is a Dooley photo from the annual Lower Kaskaskia Stakeholders’ summer barge cruise, which gives folks a close-up view of river commerce. This shot shows the lock’s miter gates opening as the group exited down through the Kaskaskia Lock, heading toward the Mississippi River. That lock is being renamed for Congressman Jerry Costello, who retired at the end of his last term in 2012. “He was always in the mix to keep the lock operating and championed inland navigation everywhere,” said Dooley. Inland Port salutes Alan Dooley in appreciation of his

ClearSpan Adds Options to HD Building Line

learSpan Fabric Structures, the industry leader in tension fabric structures, has added three different length options to its HD Building solutions. The HD Buildings are available in both gable- and round-style designs and can be mounted as a freestanding structure or affixed to other foundations, such as ponywalls or containers. HD Buildings are made from triplegalvanized structural steel tubing for the frame and a 12.5 oz., highdensity polyethylene (HDPE) ripstop fabric cover. Since there are no internal support posts, the building allows for maximum usable space. The fabric cover is available in several colors, and its permeable properties make it extremely energy efficient. The polyethylene material allows the transmission of abundant natural light, significantly cutting costs that would

otherwise be needed for supplemental lighting. What’s more, the pre-fabricated design of 20’ on center truss rafter spacing yields an expedited production time, so customers can receive their building quickly. “We added the three lengths of 160, 180 and 200’ simply due to customer demand,” stated ClearSpan’s Senior Vice President, Matt Niaura. “Having these new profiles in our system will allow for a faster overall process from order to installation.” The HD buildings start at 25’ wide and cost as little as $7.49 dollars per square foot. End panels and accessories are also available, but are sold separately. “We’re always trying to provide the best product, while still keeping costs down,” ClearSpan President and C.E.O., Barry Goldsher, said. Visit www.clearspan.com. IP

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2014 Issue 5

Aberdeen Lock and Dam Renamed to Honor Don Waldon, Former Tenn-Tom Administrator

he U.S. Congress recently recognized Don Waldon – a former Administrator of the TennesseeTombigbee Waterway Development Authority, and a long-time proponent of the waterway – by renaming one of its locks and dams in his honor. The legislation was sponsored by Congressman Robert Aderholt of Alabama and Senator Roger Wicker (MS), with support from Senators Thad Cochran (MS) and Jeff Sessions (AL), it was included in the Water Resources Reform and Development Act of 2014 that was signed by the President. The law states: “It is the sense of Congress that, at an appropriate time in accordance with the rules of the Senate and the House of Representatives, to recognize the contributions of Donald G. Waldon, whose selfless determination and tireless work, while serving as administrator of the Tennessee-Tombigbee Waterway for 21 years, contributed greatly to the realization and success of the Tennessee-Tombigbee Waterway Development Compact, that the lock and dam located at mile 357.5 on the Tennessee-Tombigbee Waterway should be known and designated as the Donald G. Waldon Lock and Dam.” The designated lock and dam is the Aberdeen Lock and Dam, one of 10 locks on the waterway. The lake formed by these structures will continue to be called Aberdeen Lake. “I congratulate my good friend, Don Waldon, on this achievement and commend his many years of service and dedication to the Tennessee-Tombigbee Waterway,” Senator Roger Wicker said. “This is an honor befitting a longtime public servant who has contributed so much to communities throughout the South. “Don Waldon dedicated his career to the efficient and effective operation of the Tenn-Tom, and we’re all better off for those efforts. The inland waterway is an economic asset for Mississippi that continues to foster economic opportunities throughout the region,” said Senator Thad Cochran. Waldon served as Administrator of the waterway’s development authority from 1984 until he retired in 2005. He joined the four-state agency in 1975, the first four years on loan from the federal government and later as its deputy administrator. Waldon was Deputy Assistant Secretary for the U.S. Department of the Interior during the NixonFord administration and earlier was a Principal Budget Examiner in the Office of Management and Budget of the Executive Office of the President. He began his career as a Civil Engineer with the U.S. Army Corps of Engineers in Mobile, Alabama, focusing on water resources development. “Having spent many years of my career involved with the Tenn-Tom there is not a more personal honor I could receive than to have my name associated with this great 2014 Issue 5

project that is so important to the economic well-being of this region and the nation,” said Waldon. “When I joined the Tenn-Tom, construction was less than one-half completed and I witnessed the engineering, legal, and political challenges to complete the waterway, at that time the largest and most complex water resources project ever built by the Corps of Engineers. I later had the privilege of leading the four-state compact’s efforts to promote and develop Tenn-Tom’s economic, trade, recreation, and tourism potential. During those decades, I can name many individuals who helped the waterway realize the success it has achieved. They certainly deserve as much or more than me this kind of recognition by the Congress for their important contributions,” he said. The designation of the Donald G. Waldon Lock and Dam will serve to continually remind Tenn Tom’s users and beneficiaries of Waldon’s legacy as a champion of the nation’s inland waterways and his lasting contributions throughout his career. IP

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Terex Launches New Telematics System

erex introduces a new telematics system for all Terex Fuchs E-Series material handlers. The satellite reporting system ties directly into the material handler’s dedicated CAN Bus system, and its 32-bit processor quickly delivers critical machine operating data, such as operating hours, fuel level and consumption, handler location, service events, and maintenance notifications, to designated personnel. By providing critical operating data, this new telematics system helps operations to increase machine operating efficiency and control costs. The new Terex Fuchs Telematics system can be installed at the factory or in the field and can be easily retrofitted to any existing Terex Fuchs E-Series material handler, if desired. System information and reporting is customizable for individuals or groups of individuals, so only data pertinent to that individual/group will be

displayed. For companies with machines at multiple locations, groups of machines at a particular site can be segmented into different views to quickly access specific machine information. The system’s geofence feature offers machine theft protection by allowing the administrator to set handler operating boundaries. “This powerful tool can improve machine efficiency, productivity and uptime for operations, and the level of data tracked and reported can help different functional managers in a variety ways,” says Steve Brezinski, heavy equipment product manager, material handlers for Terex Construction. “For instance, by quickly responding to service indicators or maintenance interval alerts, service managers can help increase machine uptime and schedule work. Operations and business managers can use machine hours and utilization data as well as fuel consumption reporting for fleet management to optimize placement and deployment of assets and control operating costs.” STRONG PRESENCE IN S. AFRICA Two Terex rail-mounted gantry cranes (RMGs) are now in operation at Durban Container Terminal, run by Transnet Port Terminals (TPT), a subsidiary of stateowned Transnet SOC Limited. The new Terex RMGs are each equipped with a rotating trolley and have a span of 22.5 m, a lifting height of 11m and a lifting capacity of 41 t under spreader. Powered by the terminal’s electricity supply, they serve the rail terminal on pier 2 where they are replacing two 25-year-old cranes. By sup-

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plying these new cranes, TPS continues to expand its ongoing business relationship with TPT. In the past few years alone, Terex Port Solutions supplied 50 Terex straddle carriers and 12 Terex heavy-duty forklifts were supplied to the terminals in Durban, Richards Bay, Saldanha Bay and Cape Town. TPS also recently commissioned the CommTrac bulk terminal operating system at the Port of Saldanha Bay in partnership with the Terex DBIS division. With the two new cranes, TPT is going to increase both productivity and availability at the rail terminal. CEO Karl Socikwa notes: “The Terex RMG cranes will considerably boost our performance, creating a long-term competitive advantage for us and enable Durban Container Terminal to meet the demands of Transnet Freight Rail and all our valued customers”. The TPT order with Terex Port Solutions is also setting an example in terms of order volume. Socikwa continues: “This is one of the largest single orders that we have ever placed with a supplier with manufacturing facilities in South Africa.” The order also includes a training course, conducted by the local TPS team, for crane operators and service technicians at the rail terminal.

The Terex Material Handling crane factory in Boksburg boasts extensive expertise in manufacturing large cranes. Having local expertise was a key factor in the award of the contract. As Colin Clegg, Business Development Manager Africa at TPS, explains: “As usual in South Africa, the public invitation to tender required a high proportion of local manufacturing. With the possibilities at the Terex factory in Boksburg, where we predominantly manufacture overhead travelling, portal and process cranes for the Terex Material Handling business group, TPS was able to meet this central criterion in every respect.” IP 2014 Issue 5