Inland Port 2015 • Issue 2
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Benjamin Brock Astec CEO Introduces Astec Bulk Handling Solutions
TPG Acquires Chicago Dry Dock Successful Test for Container-on-Barge New Cranes Extending Port Capabilities
Astec Bulk Handling Solutions – A Complete Resource for Your Material Handling Needs Newly launched Astec Bulk Handling Solutions draws on existing expertise, proven engineering designs and manufacturing footprints from Astec companies around the world to deliver what our customers are asking for: a single source for customized bulk handling solutions. From stacking and reclaiming to rail wagon and ship loading & unloading, Astec Bulk Handling Solutions delivers innovative products to ensure the optimum results for your application.
See us at the following events‌
Astec Bulk Handling Solutions 86470 Franklin Boulevard Eugene, OR 97405, USA Tel: 800-314-4656 Email: info@AstecBulk.com www.AstecBulk.com
Inland Port
2015 Issue 2 • Volume VII ISSN 2156-7611
www.inlandportmagazine.com @inlandportmag Published bimonthly by
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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 ©2015, 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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Astec Aiming to Impact Bulk Handling Sector
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TPG Acquires Chicago Dry Dock
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Maritime Case Law Update
Inland Port 2015 • Issue 2
Exclusive interview with Benjamin G. Brock, CEO of Astec Industries, who introduces Astec Bulk Handling Solutions
Exclusive interview with TPG CEO Daniel B. Altman and President Don W. Miller, Jr., who outline the company’s new addition
By Paul J. Loftus, Dinsmore & Shohl, LLP, and Katherine E. Beyer, University of Kentucky College of Law
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Liebherr LHM 800 Helping Ports Handle Larger Vessels
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Linden Comansa Crane Stars in Container-on-Barge Test by Ingram Barge, Paducah Riverport & America’s Central Port
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20 Harbor Pilots Handle Dangerous But Necessary Job Article courtesy of PortVision
22 PNWA’s Mission to Washington a Success 24 Industry News & Notes
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Astec Aiming to Impact Bulk Handling Sector
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As a major supplier of material handling equipment, Astec Industries has launched a new initiative to serve the sea ports and inland river terminals sector: Astec Bulk Handling Solutions. In this exclusive interview, Benjamin G. Brock, Chief Executive Officer of Astec Industries, brings us the details.
2015 Issue 2
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You’ve recently announced the launch of Astec Bulk Handling Solutions. What are the key drivers behind this decision? The Astec Industries family of companies has a proven global record in a range of bulk handling applications. Our markets traditionally include the coal, mining and quarry industries, stockyard management, power stations, cement kilns and steel mills. Astec companies, such as KPI-JCI and Telsmith, have been providing material handling solutions to clients around the world for more than 100 years. Our acquisition of Telestack Limited in April 2014 allowed us to enter the sea ports and inland terminals market. Telestack specializes in this market. It designs, manufactures, and installs mobile bulk handling solutions. With this acquisition, we have been able to diversify and expand our existing equipment portfolio to include mobile shiploaders and unloaders, mobile truck unloaders, mobile reclaim hoppers and rail loading and unloading solutions. The Astec Bulk Handling Solutions initiate gives us an opportunity to offer a comprehensive choice of equipment to match the specific requirements of our clients in the ports and terminals sector. The ports and terminals sector has not been the primary focus of Astec’s material handling applications. Why focus now on expanding into this industry? The World Trade Organization forecasts 5.3% growth in world merchandise trade for 2015. We also expect expansion in iron ore, coal and other major bulks. This will drive the growth in seaborne trade and associated bulk handling services. The creation of Astec Bulk Handling Solutions will allow us to respond to the market’s growing needs for 6
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quartered at the JCI facility in Eugene, Oregon. The equipment will be supplied from Astec’s facilities in the US, Canada and around the world. Our experience shows that projects in the sea ports and inland river terminals sector necessitate highly integrated solutions based on the customer’s location, infrastructure and the commodities handled. Astec Bulk Handling Solutions can deliver customer specific applications by leveraging product offerings from within the Astec group. Our sales and engineering specialists will work jointly with each customer in all aspects of the application design. This will be the key to the way Astec Bulk Handling Solutions delivers optimal and highly innovative results for each customer. Astec’s proven engineering designs, which were developed for our customers from around the world, will reduce the risk of designing customized solutions. Again, because of the global reach of Astec, Astec Bulk Handling Solutions can service customers wherever they are located. What sets apart your technological solutions from others on the market? The key driver of our success will be the mobility and flexibility of our products in
commodity handling. We believe we are uniquely positioned to present a credible and unique alternative to established players in the ports and terminals industry. What key advantages does Astec Bulk Handling Solutions have over its competitors in the ports and terminals sector? A key advantage Astec Bulk Handling Solutions has is our ability to deliver end-to-end applications following the logistics chain from pit to port. Established companies in the ports and terminals sector are primarily material handling solutions providers. Astec Bulk Handling Solutions can build complete, tailor-made material handling systems by choosing from among the best products within the Astec family. Another advantage is “one stop shopping”. Since all equipment sold through this channel will be branded “Astec Bulk Handling Solutions,” our customers will experience the convenience and expediency of working with only one point of contact. This “one stop shopping” experience is something our Astec clients will seek out and appreciate. You mentioned you had decided to consolidate your resources under one brand. Where will your equipment come from? Astec Bulk Handling Solutions will be head2015 Issue 2
We Handle It With years of experience in distribution planning, the Three Rivers team does far more than load, off-load, and transfer. We develop customized logistics solutions, recommending a combination of services to maximize efficiencies and control costs. With the use of our barge loading facilities, barge off-loading systems, on-site rail car handling and a fleet of trucks standing ready, Three Rivers will be the strategic partner you need to help determine your best options and to deliver beyond your expectations. TRANSLOADING CONTRACT PACKAGING TRUCKING LANDSCAPE PRODUCTS ICE MELT
THREE RIVERS 3riversmarineandrail.com
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marine & rail terminals
TM
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commodities operations. Astec Bulk Handling Solutions’ range will offer a highly mobile and flexible solution to guarantee faster turnaround times when loading and unloading vessels in the ports - from barge and coasters up to baby capsize ships. Our stacking, reclaiming and rail solutions in the stockyard will ensure efficient handling and enhanced productivity. KPI-JCI and Telsmith will be part of the offering for stacking, reclaiming and the link conveyors that will be part of the stockyard management solutions for the ports. We’re also looking to minimize freight costs and downtime for our clients. The modular nature of our equipment with quick and easy assembly sections will reduce onsite construction time. With a growing trend towards more sustainable technologies, how will Astec Bulk Handling Solutions answer the industry’s call for more eco-friendly solutions? With the pressure that the material handling industry is facing due to global warming and climate change, many clients now seek “green technological solutions.” They request that any equipment be fully enclosed to encapsulate the dust generated by the movement of commodities. We extensively research each application to ensure full dust control and containment measures are implemented into our conveyors and transfer points, thereby minimizing the environmental impact. What is your go to market strategy in ports and terminals? Our initial approach will be to sell directly to the marketplace through a dedicated sales engineering specialist based out of Eugene, Oregon. We are also working on a 8
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strategy of utilizing highly qualified agents and dealers in strategic locations. What regions will you be focusing on for your initial sales activities? The initial focus of Astec Bulk Handling Solutions will be on North America. However, with multiple Astec locations around the world, we are ideally positioned for expansion into global markets within the ports and terminals sector. Bulk terminals typically have high rates of equipment utilization, so any downtime will have a significant impact on their productivity. By leveraging our global manufacturing footprint, we’ll be able to ensure that projects outside North America are fully supported with extensive technical and aftermarket services. IP
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One of the two Sennebogen 870s at Mt. Vernon Barge.
TPG Acquires Chicago Dry Dock
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ndiana-based TPG Mt. Vernon Marine recently purchased Chicago Dry Dock (CDD), a shipyard founded in 1979. CDD operates on the Calumet River and offers unencumbered access to the Great Lakes, via Lake Michigan, and the Inland River System, via the Calumet/Des Plaines/ Illinois Rivers. Operating from seven acres less than three river miles from Lake Michigan, CDD has 1,200 feet of sheeted wall and two floating dry docks that can accommodate repairs to vessels 262 feet long, 54 feet wide and up to 1,500 tons, including tug boats, tow boats, commercial tour and passenger vessels, pleasure boats and barges of all types. The facility also provides comprehensive barge and boat cleaning and topside repairs for vessels in Chicago and Northwest Indiana. TPG Mt. Vernon Marine, owned by TPG Marine Enterprises, operates several growing harbor services on the lower Ohio River along with dry dock repair services. In this exclusive interview, TPG CEO Daniel B. Altman and President Don W. Miller, Jr. outline the company’s plans for CDD.
These Mt. Vernon Barge Service harbor boats represent the company’s core business. 10
How long has this acquisition been in the works? Will Chicago Dry Dock be retaining its name and branding, or be folded into TPG’s branding image? Daniel B. Altman: The Chicago Dry Dock acquisition closed on December 9, 2014. CDD came on the market in June 2014 and we moved fast to get it under contract. The new name is TPG Chicago Dry Dock, LLC. Why did you feel CDD would be a good addition for your company? Were you already familiar with its staff and leadership? Don W. Miller, Jr.: CDD is strategically located on the Calumet River with easy access to Lake Michigan. Our company has several other repair facilities; one with two dry docks. The addition of CDD, with its two dry docks and very skilled workforce, was an easy decision for us. The former owner, Haven Kern, built a solid company. Haven is very well regarded in the industry and our top management knows him well. Now, with help from Haven, who is staying on, Haven’s right hand man, Mike Hogan, who is our GM for CDD and also highly regarded, and us, we can take the operations to another level. The property has 7 acres on the Calumet River, so it lends itself to many avenues for expansion. Does the CDD facility have any special equipment that makes it unique, or gives it any special capability in handling vessels? Don W. Miller, Jr.: CDD has two full sized dry docks that makes it unique in its area; you
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2015 Issue 2
Purpose-built
from the ground up Material handlers from SENNEBOGEN – 44,000 lbs. to 750,000 lbs. Simple design… Lift more. Move faster. Save fuel. Run longer. www.sennebogen-na.com Tel: +1-704-347-4910
(Top left) Chicago Dry Dock facility (Above) Military vessel at CDD. (Left) Sandblasted finished product at CDD.
have bridges to deal with before you get to Lemont, Ill., where similar repair facilities exist. We are looking at bringing in a larger dry dock to accommodate more Great Lakes vessels and a mobile vessel hoist that will allow us to place vessels on the ground to work on. What about your other facilities? Is there anything new, in terms of equipment or capabilities, that has enhanced your ability to serve the market? Daniel B. Altman: Our bread and butter is harbor services which is the shifting, fleeting, repair and cleaning of barges. We use our proprietary software called HMS (for harbor management software) that tracts all barge movements and generates invoices; our pilots have iPads to indicate any barge related activity for which they are involved. HMS is the best software for harbor services in the industry.” What new trends, in either equipment or service capabilities, do you see on the horizon for dry dock services? Anything cutting edge coming down the line? Don W. Miller, Jr.: We think, if the price can be justified and you have enough land on the water, which we do, a mobile vessel hoist (e.g., a MarineTravel Lift) can add tremendous capacity and provide quick on and off repair services for customers. Looking at the industry in a big picture sense from your unique perspective, what is TPG’s take on the legislative battles of 2014, and on what lies ahead in 2015 and beyond? Daniel B. Altman: Upgrading locks and dams and other waterway infrastructure is always a funding priority. We help move many tons of Illinois Basin coal, so we are concerned about any impact the government has on curbing the demand for this coal. Robert Murray, head of Murray Energy, has it right when he points out that coal cannot go away so the government should be more accommodating. Subchapter M, which is the Coast Guard’s new vessel regulatory rules, is expected to require many vessel upgrades when it takes effect, much of which will have to be done by repair facilities such as ours. Don W. Miller, Jr.: We have expanded our vessel surveying business known as TPG Hargiss Marine Services to do barge drafting for areas around CDD and all our other facility locations on the Ohio and Green Rivers. We believe the need for this independent verification service is high and there is a market niche we can fill with reliable service backed by TPG’s reputation. Other than that, we thank you for the opportunity to announce our acquisition of CDD. IP
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TPG’s newest dry dock at Mt. Vernon Barge.
2015 Issue 2
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Maritime Case Law Update
By Paul J. Loftus, Dinsmore & Shohl, LLP, and Katherine E. Beyer, University of Kentucky College of Law JONES ACT – BORROWED SERVANT RULE Johnson v. PPI Technology Services, L.P., 2015 U.S. App. LEXIS 5181 (5th Cir. March 31, 2015) Contract drilling superintendent injured by gunmen on a Nigerian oil rig sued various corporate entities, including PPI Technology Services, L.P., under the Jones Act and general maritime law, claiming PPI Technology Services was his employer. Injured worker, through his own wholly owned consulting company, entered an agreement with a PPI Tech subsidiary, as an independent contractor to work as a drilling superintendent for the rig’s owner. For PPI to be considered the worker’s employer as a “borrowed servant” (since he was contractually employed by another entity), the worker must show PPI had the power to control and direct the worker (servant) in the performance of his work. The Court held that because PPI was not engaged in the oil and gas drilling business, but rather the business of recruiting and administering employees working in the industry, the worker was not a borrowed servant of PPI. Also, under the worker’s own agreement, he had also acknowledged he was engaged in the work of the rig owner, though he was not a direct employee of the owner, and therefore, the Court upheld the dismissal of the claims against the management company, PPI. JONES ACT – LOSS OF CONSORTIUM – NONPECUNIARY DAMAGES Butler v. Ingram Barge Company, 2015 U.S. Dist. LEXIS 42372 (W.D.Ky. April 1, 2015) Jones Act claimant’s spouse asserted a claim for loss or society or 14
consortium in conjunction with her husband’s claim for personal injury against his maritime employer. Despite several recent rulings by the District Court in Western Kentucky that nonpecuniary or non-monetary damages like loss of consortium are unavailable under the Jones Act, the Plaintiff argued her claim was viable because the U.S. Supreme Court in Townsend had permitted nonpecuniary damages in conjunction with maintenance and cure claims. The Court noted Townsend specifically reiterated that nonpecuniary damages were not in fact permitted in Jones Act or general maritime actions, and granted summary judgment to the barge company on the spouse’s loss of consortium claim. JURISDICTION – JURY TRIAL – ADMIRALTY & PERSONAL CLAIMS Tarasewicz v. Royal Caribbean Cruises, LTD., 2015 U.S. Dist. LEXIS 45928 (S.D.FL. April 8, 2015) Plaintiffs asserted various claims against Royal Caribbean “at law and in admiralty” and availed themselves of procedural tools available only in admiralty actions. After denial of its motions to dismiss for lack of admiralty jurisdiction and for a more definite statement, the cruise line moved inlandportmagazine.com • @inlandportmag
to strike Plaintiffs’ jury demand, arguing Plaintiffs’ were not entitled to a jury trial because they elected to sue in admiralty, not under the general subject matter jurisdiction of the court. Following 11th Circuit precedent, the Court found that federal rules covering the assertion of admiralty jurisdiction apply to “claims” not “cases,” and that Plaintiffs are entitled to bring in rem actions under admiralty law (against a vessel), while asserting at the same time other claims (personam) which provide the right to a jury trial. LIMITATION OF LIABILITY ACT In re: Complaint of Creative Yacht Management Inc., d/b/a SailTime Chicago, 2015 U.S. Dist. LEXIS 45699 (N.D.Ill. April 8, 2015) Claimants sought dismissal of yacht manager’s Limitation of Liability Act action in response to death and personal injury claims. After determining that yacht manager SailTime was not the owner of the vessel, the Court considered SailTime’s argument that it was an owner pro hac vice of the vessel. SailTime claimed that its managerial and operational control of the vessel entitled it to limitation of liability under the Act as an owner pro hac vice if not the actual owner. The Court concluded owner that though SailTime was hired by the owner for certain maintenance and operational duties, ultimate authority for the vessel remained with the owner. Further, the Court noted SailTime’s contract with the owner specifically disclaimed any role beyond assistance and advisement duties. As a result, the Court dismissed the yacht manager’s Limitation of Liability Action. IP Author contact: paul.loftus@dinsmore.com. 2015 Issue 2
Liebherr LHM 800 Helping Ports Handle Larger Vessels
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ontecon S.A. opts for the first LHM 800 in container handling configuration. This mighty machine comes with massive dimensions for the highly efficient handling of large container vessels. Montecon’s LHM 800 will start operation in 2016. As ever larger vessels are ordered and deployed on main routes, ships originally used for these lanes displace vessel on secondary routes. As a result, ports around the world have to handle bigger vessels and need to amend their equipment and infrastructure to maintain competitiveness. Based in Uruguay, Montecon S.A. is directly affected by the global cascade effect and proactively responds to changing requirements. The new Liebherr mobile harbor crane, the LHM 800 model, is the latest investment of the Uruguayan company. Juan Olascoaga, General Manager at Montecon, is looking forward to the crane. “We are proud of being the first terminal worldwide which is going to operate the world’s largest mobile harbour crane in container handling configuration. No mobile harbor crane ever before provided an eye level of more than 40m, which truly eases and speeds up the handling of large container vessels. This forwardlooking investment underlines our pioneering role in South America. Our customers will directly benefit from the outstanding capabilities of this new versatile cargo handling solution,” Olascoaga said. The LHM 800 is the most advanced mobile solution for the handling of large container vessels. In container handling configuration the eye level is above 40m and the fulcrum point is above 36m, which naturally eases the handling of vessels. Thanks to its mighty outreach of 64m, the LHM 800 is able to efficiently service container vessels which are as wide as 22 container rows. The LHM 800 continues the range’s tradition of high working speeds by hoisting and lowering containers with 120 meters per minute. This allows for up to 45 boxes per hour. In order to shorten demurrage, Montecon services one vessel with up to five LHMs. The more mobile harbor cranes are working on the same ship, the more important is the mobility of these cargo handling solutions. Like the complete Liebherr mobile harbour crane range, the LHM 800 relies on the highly successful X-shaped undercarriage. The cruciform supporting system is unrivalled in terms of stability and operational safety. Moreover, the rubber-tired undercarriage with its unique steering system provides unlimited mobility. IP 2015 Issue 2
The LHM 800 can service up to 22 rows across.
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Linden Comansa Crane Stars in Container-on-Barge Test by Ingram Barge, Paducah Riverport & America’s Central Port
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he Paducah-McCracken County Riverport Authority, America’s Central Port, and Ingram Barge recently tested the viability of container-onbarge intermodal river transportation, utilizing a Linden Comansa flat-top crane — the largest in North America. The Paducah Riverport Authority owns the 200-ton, Linden Comansa, with a lift capacity of 53 tons up to 100 feet from the tower, and a boom that stretches 250 feet. Ingram Barge Company owns and operates 140 towboats and nearly 5,000 barges on U.S. inland waterways. “We are excited about assisting Ingram Barge Company in this test move,” said Ken Canter, Executive Director, Paducah-McCracken County Riverport Authority. “Our companies have a long history of working together.” The Linden Comansa crane loaded empty intermodal containers, obtained from Pac-Van, Inc., onto an Ingram barge using a container handling attachment generously donated by Greenfield Products, located in Union City, TN. An Ingram towboat transported the barge with the containers to the port of St. Louis and then back to Paducah for unloading. The trial run confirmed the logistics of moving the intermodal containers via barge. “We certainly appreciate the support of Pac-Van, Greenfield Products, the Paducah Riverport Authority and especially the work of Ken Canter,” said Chuck Arnold, Vice President, Business and Strategic Development, Ingram Barge Company. “The Riverport Authority made this trial run possible by providing the use of the Comansa crane, and Ken provided valuable guidance on conducting this test.” Ingram Barge Company delivered the test container on barge April 9th, 2015 to America’s Central Port’s new South Harbor dock. The barge, loaded with 54 20-foot empty containers, was 2015 Issue 2
transported from Paducah, Kentucky on the Ohio River to Granite City, Illinois, just across from St. Louis on the Mississippi River. The trip, which typically
for nearly 40 years. It was capable of loading or unloading one barge at a time. But the new Linden Comansa crane can load or unload two barges at a time, at
takes 2-3 days, was extended by Ingram Barge for training purposes. The barge was welcomed by Mayor Slay of St. Louis, Missouri; Mayor Tom Thompson of Grafton, Illinois; member of America’s Central Port’s Board of Commissioners; Col. Anthony Mitchell of the St. Louis District Army Corps of Engineers; Dan Mecklenborg of Ingram Barge and Aimee Andres of Inland Rivers, Ports and Terminals. The Riverport’s decision to install the new, multi-million dollar Linden Comansa crane last year was a combination of an increase in shipments and traffic on the inland waterways in recent years, and the highly anticipated completion of the expansion of the Panama Canal, which is sure to create bigger shipments, more cargo, and a demand for faster turnarounds. The Riverport has applied for Foreign Trade Zone designation, which could yield economic opportunities for the entire Paducah area.
a faster rate and with a greater load capacity. Currently, the Paducah Riverport Authority moves about 875,000 tons of cargo a
year, equating to the loading and unloading of about 400 barges. High capacity tower cranes, like the Linden Comansa 30LC1450 in Paducah, are helping busy ports deal with today’s vessel traffic and be ready for the larger vessels of tomorrow. “Our Linden 8000 was erected in 1977 and served us well over a considerable length of time,” says Canter. “The 20-ton lifting capacity simply wasn’t enough for where we anticipate our port to go in the future. With our new Linden Comansa 30LC1450, we have greater market capabilities for the containeron-barge movements to the Ohio Valley. “It’s also pretty impressive to have the largest flat-top tower crane in North America ready to serve traffic to our port.” IP
PADUCAH’S LINDEN COMANSA CRANE Prior to the new crane, the Paducah Riverport had used a 20-ton capacity Linden crane inlandportmagazine.com • @inlandportmag
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Harbor Pilots Handle Dangerous But Necessary Job
The piloting profession requires training in using advanced navigation technology in addition to traditional printed charts, compasses and radar. Pilots use high-integrity electronic positioning systems, electronic nautical charts and related display systems, automatic identification systems, vessel traffic services, and marine radar fitted with automatic radar plotting aids. Data from these sources can be digitally integrated in a bridge’s system, and a pilot must be adept at using a variety of these dashboards.
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or centuries, pilots have steered ships into and out of ports in difficult waters, through traffic, rocks, reefs and narrow channels. The work of a pilot has its roots in ancient Greece (pedon= steering oar), when local fishermen were employed by trading vessels to guide them into port safely. It is said that the riskiest part of an ocean voyage is when a ship nears the congested port area. Expert ship handlers with extensive local waterway knowledge, the danger in a pilot’s job begins as his tender nears the ship he will bring to berth. Boarding a massive ship in rolling open seas takes determination and nerve. Once alongside, the pilot must climb a ladder up perhaps three stories, to enter the ship. Timing his jump onto the moving ladder while both the ship and boat are also moving is impressive -- and dangerous. Adverse weather situations can multiply this danger. As reported by NPR, since 2006, four American harbor pilots have been killed on the job. Pilots may transfer to ships from helicopters, too, where they are lowered down on a tether. This can be tricky in good weather but in rough weather it is dangerous. Once at the bridge, the pilot supports the master of the vessel, utilizing modern VTS and navigational technology in addition to his personal knowledge of the local geography, climate, tides, current charts and harbor traffic patterns. As well, pilots must remain aware of temporary harbor situations, such as a military ship requiring a safety perimeter. By law, the ship’s master remains officially in command
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with ultimate responsibility for the safety of the vessel and the pilot is an advisor. As ships slow to maintain safety in harbor areas, maneuverability suffers. The pilot must deal with this as well as making sure to remain aware of other ships in the restricted harbor area and avoiding natural and man-made obstacles. He must also be familiar with the various ships that need his help; tankers, bulk-cargo ships, container ships, and cruise ships all make use of pilots. For the largest ships, a second pilot might come aboard to handle global positioning technology while the first pilot takes control of the navigation. In the USA, oversight of pilot activity is typically monitored at the state level by an appointed Pilot Commission. In recent years, there has been growing controversy in some regions, with industry stakeholders growing more vocal about increasing tariffs for pilot services. Much of the root cause of this sentiment appears to stem from the fact that most pilot organizations operate as regulated monopolies without competition, and industry perception is that pilot compensation is in excess of other maritime and land-based roles that also require highly trained personnel in dangerous working conditions. The American Pilots’ Association summarizes requirements for the two types of pilot licenses -- state and federal: Each state pilot holds two pilot licenses. One issued by the state and one issued by the federal government (Coast Guard). The federal license is set as a minimum standard. State licenses require more experience and training. Some states call for prior oceangoing officer experience; some do not. Many states rely on hands-on-training while others require that training is supplemented with classroom and simulation instruction. Years of training and testing may be asked for as well as continuing education in new technology and new vessel types. Although state requirements vary, generally pilotage is regulated by the 24 coastal states for both foreign-flagged and US-flagged vessels. This originated with a law passed in 1789 giving states the right 2015 Issue 2
to regulate pilotage in their waters. In the Great Lakes, pilots of international trade ships are regulated by the Coast Guard because Canada fronts the lakes. The piloting profession requires training in using advanced navigation technology in addition to traditional printed charts, compasses and radar. Pilots are conversant in using high-integrity electronic positioning systems, electronic nautical charts (ENC) and related display systems, Automatic Identification System (AIS), Vessel Traffic Services (VTS), and marine radar fitted with Automatic Radar Plotting Aid (ARPA). Data from all of these sources can be digitally integrated in a bridge’s system, and a pilot must be adaptable in using a variety of these dashboards. A dangerous, highly trained, and technological job, marine and harbor pilots guide thousands of ships around the world to safe harbor every day. IP Article courtesy of PortVision. For more information on AIS services, visit portvision.com or email info@PortVision.com.
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PNWA’s Mission to Washington a Success M
ore than 70 members of the Pacific Northwest Waterways Association (PNWA) gathered in Washington, DC for the organization’s recent 2015 Mission to Washington DC. Members heard from key federal and industry partners about topics relating to navigation, energy, trade and transportation both in the Pacific Northwest and beyond. They also spent two days on the hill, meeting with members of the northwest congressional delegation and their staff. This year’s Taste the Northwest reception was attended by nearly 400 partners and guests. PNWA is grateful to its sponsors for all of their support, including: Bell Buoy Crab Co., Columbia River Pilots, Columbia River Steamship Operators’ Association, Dungeness Crab Commission, Jesse’s Ilwaco Fish Co., Kiewit, Millennium Bulk Terminals, PNGC Power, Pomeroy Grain
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Growers, Port of Bandon, Port of Benton, Port of Chinook, Port of Cascade Locks, Port of Clarkston, Port of Everett, Port of Grays Harbor, Port of Hood River, Port of Ilwaco, Port of Kalama, Port of Lewiston, Port of Longview, Port of Newport, Port of Pasco, Port of Portland, Port of Ridgefield, Port of Seattle, Port of Siuslaw, Port of Skagit, Port of St. Helens, Port of Tacoma, Port of Umatilla, Port of Vancouver, Port of Walla Walla, Port of Whitman County, Schwabe Williamson & Wyatt, Shaver Transportation, Tidewater Barge Lines, and WA State Potato Commission. PNWA ANNOUNCES 5 NEW MEMBERS PNWA recently announced that the Apollo Mechanical Contractors, Global Partners LP, Port of Bellingham, OBEC Consulting Engineers, and The Scoular Company have joined the organization. Apollo Mechanical Contractors is a Kennewick, Washington based business
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that officially began operations in 1981. With over thirty-three years of experience in mechanical system design, fabrication, installation, and business management, Apollo now has offices in Kennewick, Spokane, Seattle, Portland, Denver, and Missoula with a combined total of over 900 employees. Today, Apollo is a leader in the construction of laboratories, mission critical facilities, hi-tech manufacturing facilities, government facilities, health care, K-12, and higher education, and food processing as a full services mechanical contractor. The Apollo team provides pre-construction, construction, and design assist services for residential, commercial, institutional, and industrial clients. Their array of services includes complete HVAC contracting and design, industrial piping/plumbing, Direct Digital Controls, Building Information Management sheet metal fabrication, facility
2015 Issue 2
maintenance, energy conservation consulting, and environmental remediation services. Global Partners LP is a publicly traded master limited partnership. This midstream logistics and marketing company owns, controls or has access to one of the largest terminal networks of petroleum products and renewable fuels in the Northeast. Global also is one of the largest distributors of gasoline, distillates, residual oil and renewable fuels to wholesalers, retailers and commercial customers in New England and New York. The partnership is a leader in the transportation of crude oil and other products by rail across its “virtual pipeline” from the mid-continental U.S. and Canada to the East and West Coasts for distribution to refiners and others. Global has expanded its operations to the Pacific Northwest with the acquisition of a bio-refinery and crude oil transload facility near Clatskanie, Oregon. Global is No. 146 in the Fortune 500 list of America’s largest corporations. The Port of Bellingham is a Washington-based special purpose municipal corporation with a mission to fulfill the essential transportation and economic development needs of the region. The port is custodian to approximately 1,600 acres of land and 1,183,800 square feet of buildings, including Blaine and Squalicum Marinas, Bellingham International Airport, Bellingham Cruise Terminal, Bellingham Shipping Terminal, Fairhaven Transportation Center, Fairhaven Marine Industrial Park, Sumas Industrial Park, the Airport Industrial Park, and the Bellingham Waterfront Acquisition Site. Midway between the major cities of Seattle, and Vancouver B.C., the Port of Bellingham is strategically located with major Northwest markets within 100 miles. Port infrastructure and land supports Whatcom County’s marine trades industry which includes more than 100 businesses employing over 2,300 people with a combined annual revenue of more than $550 million. Three federal navigation channels are essential to working waterfront activities which provide a supply of year-round, family-wage jobs and have a ripple effect throughout the local and regional economy. OBEC has been proudly serving the Pacific Northwest since 1966, providing a full range of civil and structural engineering services. They are positioned to provide a team of in-house specialists to support every stage of a waterfront project, from project management, survey, inspection and condition assessment, permitting, design and engineering through construction management. OBEC also specializes in bridge and transportation projects. Current clients include Weyerhaeuser, Vigor Industrial, Lafarge, Oregon Department of Transportation, City of Longview, Roseburg Forest Products, and Teevin Bros Land & Timber. The Scoular Company is an employee-owned grain company headquartered in Omaha, Nebraska. Scoular has more than 800 employees located throughout the entire US grain regions. They recently opened a barge loading facility in Burbank, Wa. to complement their Southern Idaho operations. IP 2015 Issue 2
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.
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Industry News & Notes
The US Department of Transportation recently announced the Notice of Funding Availability for the FY2015 Transportation Investment Generating Economic Recovery (TIGER) grant program. $500 million is available for surface transportation projects, and will be awarded on a competitive basis of regional and national significance. Changes to TIGER’s FY2015 program include the requirement for a pre-application prior to submitting a final version. The deadline for pre-applications is May 4th and final applications are due by June 5th. Proposals should aim to fill a vital need in a transportation system and provide measurable improvements in economic development, safety, quality of life, and environmental sustainability. Urban proposals are required to be between $10 and $200 million while the minimum threshold for rural proposals is $1 million. For more information, please access the DOT website directly. The Department of Homeland Security and FEMA recently announced the availability of $100 million for the FY2015 Port Security Grant Program (PSGP). This program directly supports maritime transportation infrastructure security activities and is intended for upgrades to protect critical infrastructure against potential terrorist acts. FY2015 PSGP funds are intended to improve port maritime security risk manage-
ment, enhance maritime domain awareness, support maritime security training, and maintain or reestablish maritime security protocols that support port recovery and resiliency capabilities. The PSGP application deadline is May 19th and the anticipated award date is no later than September 30, 2015. Applicants should be aware they will need to submit an initial grant application at grants.gov at least 10 days before the final application due date. Information on the grant application process can be found here. More information on the PSGP grant, including detailed submission instructions, can be found on the FEMA website.
Power Climber has launched PowerMod, a versatile, flexible, and cost-effective modular knockdown suspended platform that provides safe, secure and stable access for a variety of projects performed at height. With a 2,000-lb load capacity and a variety of possible configurations, PowerMod fits into hard-to-reach working spaces for various construction, maintenance, restoration, painting and inspection applications. Built-in toeboards, adjustable guardrails, one step self-locking pins, and light weight make the PowerMod easy to transport and assemble. Crowley Maritime Corp.’s Houston-based subsidiary, Titan Salvage, and Italian engineering partner Micoperi were recently honored with the International Salvage Union (ISU) Meritorious Service Award during the organization’s Associate Members’ Day Conference in London. The award was presented by in recognition of Titans’s outstanding service to the salvage industry during the successful execution of the largest single maritime wreck removal project ever to be undertaken, the Costa Concordia. The first ship of the 2015 shipping season, the Michigan - Great Lakes, arrived at the Port of Green Bay from Cheboygan, Michigan on Friday, April 3 at 5:30 p.m. It was exporting
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gasoline from the U.S. Oil terminal. “The arrival of the first ship is 15 days earlier than last year,” said Dean Haen, director of Port & Resource Recovery. “The S.S. Alpena also came in over the weekend, which shows that materials are in demand and that it’s going to be another busy shipping season.” The Port of Green Bay expects more than 200 vessels in port during the 2015 shipping season. The public is encouraged to view the ships from the Fox River Trail, the Green Bay Metropolitan Boat Launch or from the Port’s web cam on portofgreenbay.com. The Great Lakes Shipyard has been awarded a new construction contract by the United States Army Corps of Engineers Rock Island District for two 38-foot work barges. The barges will be used by USACE Rock Island District as a working platform to perform maintenance and inspections of Lock and Dam 11 and 14 on the Upper Mississippi River. The dimensions of the barges will be 38-feet long by 14-feet wide by 3-feet deep. The stern of the vessels will include a transom for mounting an outboard motor to power the vessels. Great Lakes Shipyard fabricated and delivered work barges of the same design for USACE Rock Island District Lock and Dam 16 and 18 in 2010. The U.S. and Canadian Seaway Corporations marked the opening of the Seaway’s 57th navigation season on April 2, 2015, with the transit of the newly-built CWB Marquis through the St. Lambert Lock. The vessel is the first of two Equinox-class lakers ordered by Winnipeg-based grain marketer CWB that are being purpose-built for trade in the Great Lakes Seaway System. In 2014, over 12 million tons of grain moved through the Seaway, the highest volume recorded since the beginning of the 21st century. “The Great Lakes St. Lawrence Seaway System provides global access to the heartland of North America, where opportunities abound,” said U.S. Saint Lawrence Seaway Development Corporation (SLSDC) Administrator Betty Sutton. “Through a new Regional Outreach Initiative, we are working to expand our reach and role across the Great Lakes region, North America’s ‘Opportunity Belt.’ Helping our cities, states, and provinces in the “Great Lakes region realize further economic growth and productivity via our binational waterway is the overarching point. Additionally, the significant financial investments we are making in infrastructure and new technologies through our Asset Renewal Program are enabling the entire Great Lakes Seaway System to realize increased safety and efficiencies.” IP 2015 Issue 2