Gibson: Our business is based on establishing long-term relationships with customers, and stability in our leadership is vital to growing business. Indiana’s port system has a very unique business model that requires an understanding of transportation modes, as well as industrial development and commodity markets for steel, agriculture and industrial cargoes, just to name a few. Having commissioners with this kind of experience makes our board even more efficient and resourceful. Marvin, you are indeed the elder statesman of your board. How have the board, and indeed the ports themselves, changed in your 19 years? Ferguson: It seems I’ve had a lifetime of good memories and friends on this commission, and to see the long list of companies that have come to our ports over that time gives me a great sense of pride and accomplishment for my years with the Ports of Indiana. A major change is that the current commission and staff are much more knowledgeable of the industry now than in the past. This is reflected in a higher level of efficiency in operations, administration and governance. We’ve gone through some difficult times, but I now look forward to every meeting because the commission today has excellent leadership and our CEO and staff are outstanding. You’re starting your second term, Greg. Which of your previous business experiences most closely and effectively translate into what you do with the board? Gibson: I’ve had the opportunity to work on a wide range of business ventures in my career, many of which involved business acquisitions and real estate development. In addition to vice chair, I also serve as the lead commissioner for reviewing land leases and agreements at the Ports of Indiana. We have a dual responsibility at the ports to serve as a public steward of state assets and to aggressively market our ports’ facilities and services to generate economic development in our state. There are certainly a unique set of challenges that come with managing port infrastructure on the Ohio River and Lake Michigan, but our organization has an excellent track record in business attraction. As a matter of fact, every dollar the state invested into our three ports has generated more than $15 in additional investments. Tell us a bit about each of you away from the office. Ferguson: I’ve been retired since selling Ferguson Steel, a company I founded in 1972, and in addition to being a Ports of Indiana Commissioner, I also serve on the board of directors of Monarch Beverage and have since 1999. My wife and best friend, Bronwen, and I enjoy travel, but our main interest is our grandchildren, who are the center of our universe. Gibson: I try to spend most of my free time with my kids. They are seven and four years old and I am really having a blast with them. One of my favorite projects that I’ve worked on with my family was the development of the LaVern Gibson Championship Cross County Course in Terre Haute, Ind. It is a world-class facility that annually hosts the NCAA Division I and Indiana State High School crosscountry championships. I ran cross-country at Rose Hulman Institute of Technology in Terre Haute, and to be able to give something like this back to the 2011 Issue IV
The Port of Indiana-Burns Harbor moved 14-times more project cargo in 2010 than the previous year.
community is very important to our family. Can you both talk a little about the role of your board and how the commissioners work with port management? Ferguson: The relationship between a board and a management team is the foundation for an organization’s success. Our success has been built on trust, good communication and having clearly defined roles for both our board and our management team. The board understands that our role is to provide direction, develop policies and approve strategies. We have put a lot of effort into attracting and retaining high-quality business professionals to handle the day-to-day business at our three ports, and we want to do everything we can to support them so they can carry out the mission of the Ports of Indiana. Ferguson: Each commissioner provides governance based on his or her own unique or general business knowledge and the financial and operational information provided by the CEO and the staff. This communication is outstanding today and makes the job of being a useful commissioner a pleasure. Rich, what are the most important elements of leadership at the Ports of Indiana from your perspective? Cooper: There is just no substitute for experience and wisdom, and we are blessed with that on this commission. The group of commissioners that Governor Daniels has assembled is equivalent to some of the finest boards of directors you’ll find anywhere. It is extremely beneficial for our organization to have a board of directors with a wide range of experiences that closely relate to our business. All of these individuals have executive experience and a number of them are business owners and have great insight into what it takes to make our ports successful. You had more than an 8% increase in tonnage in 2010. What are the main factors you attribute that success to? Cooper: We have a couple of key things going for www.inlandportmagazine.com
us. We have excellent business partners at all three of our ports whose operations provide diversity in our cargo mix. When one industry sector is suffering there always seems to be someone else picking up the pace. We partner with some of the very best stevedores in the maritime industry, companies like Federal Marine Terminals, Consolidated Terminals & Logistics and Kinder Morgan, and they are out there aggressively pursuing new opportunities. We had major increases this past year in grain, fertilizer and steel cargoes, but the biggest growth factor was project cargo, which was 14-times more than the previous year. Much of that can be attributed to a record 15 shipments of wind cargoes at our Lake Michigan port, including our first exports of U.S.-made turbines being moved from Iowa to New Brunswick. We also handed our first barge shipments of ethanol and DDGs at the Port of IndianaMount Vernon, which resulted from the opening of two ethanol plants in the area. Our ports also continue to handle large volumes of coal, limestone, salt as well as liquid bulk shipments. Let’s talk infrastructure. You opened your largest facility last year. What is new on that front for you folks? Cooper: Yes, Aventine Renewable Energy just opened Indiana’s largest ethanol plant at our Mount Vernon port. This is the single largest investment for a company at any of our ports, and it’s interesting to note that the cost of this one facility was more than the cost to build all three of Indiana’s ports. Our port system is a self-funded enterprise and receives no state funding, tax dollars, or subsidies for our dayto-day operations and maintenance, so it’s vital that we continue to develop new business opportunities in order to support ongoing infrastructure investments and future growth. Tell us about some of the companies who call the Ports of Indiana ‘home’. Cooper: We have some world-class companies at our three ports, ranging from steel mills and ethanol plants to international agribusinesses and high-tech 5