Portside: Port of Indiana-Mount Vernon Special Edition by Ports of Indiana

A Ports of Indiana Publication - 2015 Issue 1

PORT OF INDIANA-MOUNT VERNON

TOP 10 PORT Southwest Indiana is home to 7th largest inland port in U.S.

TOP 10

U.S. INLAND

PORTS

1. Huntington, WV 2. PITTSBURGH, PA 3. ST. LOUIS, Mo 4. Memphis, tn 5. Cincinnati, oh 6. louisville, KY 7. MOUNT VERNON, IN 8. St. Paul, MN 9. GREENVILLE, MS 10. Tulsa, ok

www.portsofindiana.com 路 Winter 2013

PORTSIDE – 2015 Issue 1

TABLE OF CONTENTS

FAST FACTS ABOUT INDIANA

COVER STORY:

TOP 10 PORT..................................................... 4

57%

SPOTLIGHT: Port of Indiana-Mount Vernon

WATER

OF STATE’S BORDER IS

Southwest Indiana is home to 7th largest inland port in the U.S.

• Port Map........................................................................... 6 • Community Profile......................................................... 7 • Meet the Port Companies............................................ 8 Featuring: CGB - Soybean Division, Crop Production Services, Mount Vernon Transfer Terminal, TPG/Mount Vernon Barge Service

• Valero Opens! - Port welcomes 10th largest U.S. company............10 • Shipping Maps..............................................................11

PORT REPORTS: • Burns Harbor: “New cargo record”.......................................12 • Jeffersonville: “Steel campus expands”.................................13

CONNECTS TO TWO “MARINE HIGHWAYS” THAT CARRY

33 MILLION TRUCKLOADS OF CARGO PER YEAR

RANKS

6TH

IN DOMESTIC WATERBORNE SHIPPING

Great Lakes/ St. Lawrence Seaway Inland Waterways System (Ohio-Mississsipi Rivers)

RANKS

TH 13 IN TOTAL WATERBORNE SHIPPING

From the Board Room: “Finalizing $42M in capital improvements”.....14 Ports of Indiana Directory.................................................15

MEET THE TEAM: PORT OF INDIANA-MOUNT VERNON Phil Wilzbacher, Port Director

Role: Leads business development efforts and directs day-to-day operations for the port. Joined: January 2002 Background: A native of Southwest Indiana, Phil has over 25 years experience in the short-line railroad and grain industries, including roles with the Indiana Rail Road Co., Indiana Southern Railroad, Cargill Inc. and The Pillsbury Company.

Randy Kennedy, Operations Manager

Role: Manages all maintenance activities and day-to-day operations of port facilities. Joined: July 2004 Background: Spent 10 years in Colombia, South America as an operations superintendent with Drummond Coal Ltd. exporting coal. Previously worked in operations for a mine sampling company and Vectren Energy.

Kasia Kaffenberger, Administrative Assistant

Role: Provides accounting and administrative support for port operations. Joined: August 2013 Background: Previously worked as a machine operator at Infinity Molding & Assembly and in the legal and classified ad department at the Mount Vernon Democrat.

Bruce Willis, Maintenance Leadman

Role: Performs grounds, building and infrastructure maintenance for port facilities. Joined: February 1982 Background: First started working at the port part-time as a high school junior in 1979 and has spent over 30 years providing maintenance services for both the Mount Vernon and Jeffersonville Ohio River ports. Ports of Indiana 150 W. Market St., Ste. 100 Indianapolis, Ind. 46204 317-232-9200

Port of Indiana-Mount Vernon 2751 Bluff Road Mount Vernon, Ind. 47620 812-838-4382

Port of Indiana-Burns Harbor 6625 S. Boundary Drive Portage, Ind. 46368 219-787-8636

Port of Indiana-Jeffersonville 1402 Port Road Jeffersonville, Ind. 47130 812-283-9662

www.portsofindiana.com

PORT OF INDIANA-MOUNT VERNON

Southwest Indiana port ranks in America’s top 10

Mount Vernon is home to seventh largest inland port in the U.S.

ay “Indiana” and the first thing that pops into many people’s minds is the Indianapolis 500, the largest single-day sporting event in the world. Others recall Indiana is a leader in agriculture, one of the top five states in the production of both corn and soybeans. Still others think of the state as the “Crossroads of America,” because more highways intersect in Indiana than any other state. Most people, however, would be surprised to learn that Indiana is also home to the seventh largest inland port in the country. The U.S. Army Corps of Engineers ranks Mount Vernon alongside big-city river ports such as Memphis, Louisville and St. Louis. While Mount Vernon is the only city with a top 10 inland

port and a population less than 30,000, its port serves an expansive geographic region including the entire Evansville metropolitan area, which ranks as the state’s third largest city. “Mount Vernon has an impressive combination of industry ranging from agriculture to advanced manufacturing with access to the river, rail and interstates,” said Port Director Phil Wilzbacher. “This area is ideally positioned near the confluence of the Ohio and Mississippi rivers as well as some of the richest farmland and

TOP 10

U.S. INLAND

PORTS

PORT OF INDIANA-MOUNT VERNON - BY THE NUMBERS • • • • • •

1,200 acres with 8,000 feet of riverfront 153 miles from the confluence of Ohio and Mississippi rivers 600 acres of industrial sites, including a 504-acre mega site 65 miles from median center of U.S. population 2,500 barges, 25,000 railcars,130,000 trucks in 2014 Foreign-Trade Zone #177

Connection to Future NAFTA Corridor • Closest major port to new NAFTA Superhighway (I-69) • 25 miles from intersection of Ohio River and future Canada/Mexico trade route • Governor’s panel recommended construction of Port Freeway Connector to NAFTA Corridor

PORTSIDE – 2015 Issue 1

MOUNT VERNON

coal reserves in the world. We have world-class companies in this region that can utilize our portâ&#x20AC;&#x2122;s multimodal connections to gain a competitive advantage and reach global markets.â&#x20AC;? The area has a strong industrial base that includes 13 port companies and service providers (listed on page 6) as well as neighboring industries such as Alcoa, Berry Plastics, BristolMyers Squibb, SABIC Innovative Plastics, Babcock & Wilcox, CountryMark, GAF, ADM Milling, Mead Johnson, Millennium Steel and Toyota Motor Manufacturing.

Global Access The Port of Indiana-Mount Vernon is designed to provide efficient transloading of cargo between water, rail and road. Its location on the Ohio River connects the Midwest to the world with year-round access to the Gulf of Mexico and Great Lakes through the Inland Waterways System. Barges shipped to and from Mount Vernon can be transloaded with ocean vessels in the Gulf of Mexico for global shipments. Port companies ship cargo to and from 20 countries and 44 states.

Multimodal Connections The port offers short-line rail service provided by Evansville Western Railway with potential connections to five Class I railroads.

Interstate access is available with Indiana 62 and 69 providing access to I-64 and I-69, the future NAFTA corridor. The port is a regional hub for multimodal shipments and in 2014 handled nearly 5 million tons of cargo via 2,500 barges, 25,000 rail cars and 130,000 trucks. Major cargoes included corn, soybeans, soybean meal, soybean oil, wheat, milo, coal, cement, ethanol, dried distillers grains, fertilizer, talc, limestone, coke, magnetite, salt, steel and heavy-lift cargo.

Room to Grow This regional logistics powerhouse has room to grow. The port has more than 600 acres of greenfield industrial sites available for development. The largest parcel is a 504-acre site a short distance from the riverfront. Barge fleeting for up to 500 barges through Mount Vernon Barge Service is available adjacent to the port. The port also has storage for 200 rail cars on six miles of interior rail track, which connects all business and industrial sites to the waterfront infrastructure. In addition, the Port of Indiana-Mount Vernon is designated a Foreign-Trade Zone (FTZ #177) and can offer significant costsavings to businesses that import goods by delaying or reducing duty payments on certain products. For more information about the Port of Indiana-Mount Vernon, visit www.portsofindiana.com.

Multimodal Advantages RIVER: 12-month access to 20+ states and ocean vessels in Gulf of Mexico RAIL: Evansville Western interchanges with 5 Class I railroads ROAD: Indiana 62 and 69 provide access to I-64 and I-69

www.portsofindiana.com

PORT OF INDIANA-MOUNT VERNON Evansville Western Railway

Roadway Railway

D 62

TE R STA

LOW

TH E. 4

ERN

Mead Johnson Nutrition/Kenco

ST.

66 acres

Valero Renewable Fuels Company

City of Mount Vernon

504 acres

FF R

Agrium US

2 acres

10 acres

Cimbar Performance Minerals

cr 4a

res

4 acres

acr 3 es

Pier 3

4 acres

Pier 2

Ohio River

PORT RD 570

Tri-County Agronomics

CGB Crop Port Office Production 3a cre Services s

CTLC

25 acres

CGB

Overhead Crane

(Mile Marker 828)

Mount Vernon Transfer Terminal LAMONT RD

CTLC Bulk Terminal

9 acres

PORT RD 570

4 ac

1 ac

PORT RD

TPG Mount Vernon Marine/ Mount Vernon Barge Service

PORT RD

BLU

CEMEX/ Kosmos Cement

Soybean & Grain Terminals Liquid Fertilizer Terminal

ac 4 res

Cement Terminal

Coal Terminal

Service Providers

Products/Services

Phone

Consolidated Terminals and Logistics (CTLC)

Stevedoring, Logisitics

812-833-3208

ctlconline.com

Website

Evansville Western Railway

Class III Railroad

866-812-3897

evwr.com

Shortline railroad operating 124 miles of track between Okawville, IL and Evansville, IN with interchanges to 5 Class I railroads

TPG Mount Vernon Marine/ Mount Vernon Barge Service

Towing, Barge, Repair, Stevedoring

812-838-4889

mvbarge.com

Towing, fleeting, barge cleaning, barge repair and dry dock services – including out-of-harbor barge pumping and shingling as well as bulk stevedoring

Agrium U.S.

Fertilizer

812-838-9779

agrium.com

Consolidated Grain and Barge (CGB) – Merchandising Division

Grain

812-838-6651

cgb.com

Grain terminal, sourcing grain and oilseeds for export and domestic market

Consolidated Grain and Barge (CGB) – Soybean Processing Division

Soybean Meal, Oil, Hulls

812-838-6651

cgb.com

Soybean processing, including production of meal, oil and hulls for animal feed and cooking products

Crop Production Services

Fertilizer

812-838-4533

cpsagu.com

Liquid and dry bulk fertilizer distribution to Southwest Indiana, Southern Illinois and Western Kentucky

Tri-County Agronomics

Fertilizer

812-838-1755

liquidnpk.com

Supplying liquid fertilizer, seed and micronutrients

Valero Renewable Fuels Co.

Ethanol

812-833-3900

valero.com

Production of ethanol for gasoline blending and of dried distillers grains (DDGs) for use in animal feed

CEMEX/Kosmos Cement

Cement

812-838-3465

cemex.com

Barge-to-truck bulk distribution terminal for cement

Cimbar Performance Minerals

Minerals

812-838-5236

cimbar.com

Minerals processor specializing in barium sulfate, sodium bentonite, calcium bentonite and magnesium hydroxide

Mount Vernon Transfer Terminal

Coal

812-250-7909

arlp.com

Mead Johnson Nutrition/ Kenco Logistics Services

Consumer Products

812-833-3412

kencogroup.com

Economic Development Coalition of Southwest Indiana

Regional Economic Development

812-423-2020

southwestindiana.org

Indiana Economic Development Corp.

Statewide Economic Development

317-232-8800

iedc.in.gov

State's lead economic development agency

Posey County Economic Development Partnership

County Economic Development

812-838-6500

pcedp.com

Not-for-profit economic development organization focused on business retention, expansion and attraction

Description

General cargo stevedoring, rail-to-barge bulk terminal and logistics services

Agricultural Products Fertilizer distribution terminal for potash, DAP, urea, ESN, UAN; accessible by truck, rail or barge

Processing, Distribution, Storage

Coal transloading from rail or truck to barge and ground storage Distribution center for Mead Johnson Nutrition products

Development Partners

PORTSIDE – 2015 Issue 1

Representing Gibson, Posey, Vanderburgh and Warrick Counties in business development

Community Profile

INDIANA

6,570,902

MOUNT VERNON, INDIANA

EVANSVILLE METRO

301,545

POSEY COUNTY

25,486

City of Mount Vernon

MOUNT VERNON

6,588

• Southwest Indiana in Posey County along the Ohio River • Evansville, IN-KY Metropolitan Area • Posey County seat; Elevation 400 ft.; Central Time Zone • 65 miles southwest of median center of U.S. population near Petersburg, Ind. • 44 miles southwest of Toyota Motor Manufacturing in Princeton, Ind.

POPULATION 2013 ESTIMATE HOMEOWNERSHIP RATE (2009-2013) POSEY COUNTY

MOUNT VERNON

76.0%

70.4%

MEDIAN HOUSEHOLD INCOME (2009-2013) POSEY COUNTY

MOUNT VERNON

$58,750

Mount Vernon History

$46,909

LABOR FORCE (EMPLOYED, 2013)

• Originally named McFadin’s Bluff • 1816: name changed to Mount Vernon to honor George Washington • 1816: downtown public square designed • Birthplace of Indiana’s 21st governor, Alvin P. Hovey • Deep roots in Ohio River activities • Long history in agriculture, grain milling, oil refining, river transportation

POSEY COUNTY

EVANSVILLE METRO

55,141

588,500

HIGH SCHOOL GRADUATE (25 yrs +)(2009-2013) POSEY COUNTY

MOUNT VERNON

92.1%

88.5%

BACHELOR'S DEGREE (25 yrs +)(2009-2013) MOUNT VERNON

POSEY COUNTY

20.5%

20.1%

MEAN TRAVEL TIME TO WORK (MINUTES) MOUNT VERNON

17.5

INDIANA: A Top State for Business

POSEY COUNTY

23.2

INDIANA

Did you know Indiana is... • One of the most business-friendly states in America • Ranked 1st in the Midwest and 6th in the nation in Chief Executive magazine’s annual “Best & Worst States” survey (May 2014) • Ranked 1st in the Midwest and 7th in the nation as the best place to do business in the Pollina Corporate Top 10 Pro-Business States study (July 2014) • Ranked 1st in the Midwest and 8th nationally in the Tax Foundation’s 2015 Business Tax Climate Index (Oct. 2014) • One of only 11 states to earn the top bond rating from all three major credit rating agencies (S&P, Fitch, Moody’s)

Sources: US Census Bureau State & County Quick Facts and stats.indiana.edu

23.2

MOUNT VERNON

POSEY COUNTY, INDIANA People & Income (By Residence)

Job Types in Posey County

Unemployment Rate

Manufacturing Avg. wage

33.9% $39,285

Retail Trade Avg. wage

8.7% $30,058

Poverty Rate

9.5%

Personal Income Industry

6.5%

$42,745

(By Place of Work)

Covered Employment* Avg. annual wage per job

8,539 $50,140

Transportation & Warehousing 8.1% Avg. wage $45,343 Accommodations & Food Serv. 5.8% Avg. wage $13,287

*Employees who fall under coverage of state and federal unemployment insurance programs.

Mount Vernon port helps FFA grow

LOCAL ECONOMIC IMPACT What does the Port of Indiana-Mount Vernon mean to the state economy?

6,892

TOTAL JOBS

$770 MILLION TOTAL VALUE

$246 MILLION BUSINESS

OF ECONOMIC IMPACT

SERVICE REVENUE

$30 MILLION TOTAL STATE &

$47 MILLION LOCAL

$317 MILLION TOTAL

LOCAL TAXES

PURCHASES

PERSONAL INCOME

Source: 2011 Ports of Indiana Economic Impact Study prepared by Martin Associates - May 2012

Mount Vernon FFA - Pictured L to R: Andrea Seifert, Rebecca Miller, Ryan Ritzert, Sean Ritzert, Ed Schenk and Advisor David Reese

or over 30 years, the Port of Indiana-Mount Vernon has provided the Mount Vernon High School Agriculture program and FFA chapter with a five-acre plot on Bluff Road as an educational tool for students to test crops and learn about farming. The students work in committees on various aspects of farming operations, including lease agreements, tilling, planting, seed selection and harvesting. For information about FFA visit www.ffa.org. www.portsofindiana.com

MEET THE PORT COMPANIES Consolidated Grain and Barge - Soybean Processing Division 2801 Bluff Road, Mount Vernon, Ind. 47620 - 812-833-3214 - www.cgb.com • • • • •

Opened: 1997 Leadership: Steve O’Nan, Vice President, Soybean Processing; Doug VanMeter, Facility Manager Products/Services: Processing soybeans into soy oil, meal and hulls Description: The facility operates 24/7 processing soybeans and loading soybean meal, oil and hulls. The facility also buys non-GMO soybeans which it processes as well. The plant provides a competitive soybean market for area farmers while supplying the demands of agribusiness in a variety of areas. Customers include feed mills, poultry producers, hog farmers and other businesses in both domestic and international markets. The plant also is a major supplier of soybean oil to customers for food and industrial uses. Location Advantages: Allows for multiple logistics options that include both inbound and outbound barge, rail and truck transportation as well as outbound container shipping options.

Steve O’Nan Vice President, Soybean Processing

Crop Production Services 2900 Bluff Road, Mount Vernon, Ind. 47620 - 812-838-4533 - www.cpsagu.com • • • • • •

Opened: 2011 Leadership: Jeff Rhein, Facility Manager; Steve Warren, Division Manager Products/Services: Fertilizer storage and distribution Key features: Barge and rail unloading capabilities in addition to liquid and dry fertilizer storage. Description: Provides custom dry and liquid fertilizer blending and bulk agricultural fertilizer distribution to CPS retail outlets. CPS is a premier agricultural retail supplier, conducting business in 48 states and bringing together innovative products and knowledge from over 1,250 retail outlets on three continents. Location Advantages: Access to Ohio River and railroads.

Jeff Rhein Facility Manager

PORTSIDE – 2015 Issue 1

MEET THE PORT COMPANIES Mount Vernon Transfer Terminal 3300 Bluff Road, Mount Vernon, Ind. 47620 - 812-250-7909 - www.arlp.com • Opened: 1983 • Leadership: Taylor Kanipe, General Manager of Operations; Heath Lovell, Vice President of Operations • Products/Services: Coal transloading from rail/truck to barge • Description: Throughput capacity is eight million tons per year. An oval-shaped loop track allows receiving and unloading 105-car trains. Available ground storage can be expanded as needed. State-of-the-art terminal has capacity to load coal directly to barges from railcars, trucks or ground storage at up to 4,000 tons per hour. • Location Advantages: With close proximity to the Illinois, Indiana and Kentucky coal fields, the Ohio River location provides excellent inland waterway service to the North, South, Midwest and Gulf of Mexico markets. Local short-line railroad can provide direct connections to five Class I railroads.

In addition, the

Taylor Kanipe General Manager of Operations

TPG Mount Vernon Marine / Mount Vernon Barge Service Bluff Road, P.O. Box 607, Mount Vernon, Ind. 47620 - 812-838-4889 - www.mvbarge.com • • • • •

Opened: 1962 (Mount Vernon Barge Service was acquired by TPG Marine Enterprises in 2007) Leadership: Wayne McDonald, Chief Operating Officer; Eric Wolfe, General Manager Products/Services: Harbor Services/Stevedoring for bulk cargoes Description: Barge shifting and fleeting available via six harbor boats and support vessels with 500 barge fleeting capacity. Bulk stevedoring services utilizing two Sennebogen 870 Green Line crawler cranes. Two full-size dry docks for boat and barge repairs including fiberglass and metal topside restoration and barge shingling. Environmentally-friendly and fully electric barge cleaning and washing facility. Corporate command center is located at the port (Ohio River Mile 828). Harbor Management System software utilized to monitor 24-hour fleeting for 500+ hopper barges and 60 liquid/petroleum barges. Location Advantages: Port partnerships and synergies create many business opportunities throughout the region.

Wayne McDonald Chief Operating Officer

www.portsofindiana.com Port of Indiana-Mount Vernon Special Edition

• Mount Vernon is Valero’s 11th ethanol plant • Valero’s U.S. facilities can produce more than 1.3 billion gallons of ethanol per year

Valero Opens! Port welcomes 10th largest U.S. company

The opening of Valero Renewable Fuels’ ethanol facility at the Port of Indiana-Mount Vernon drew dignitaries including Indiana Lt. Governor Sue Ellspermann, Valero Vice President Martin Parrish, Indiana Director of Agriculture Ted McKinney and Ports of Indiana CEO Rich Cooper.

Valero opens first ethanol river terminal at Mount Vernon port MOUNT VERNON, Ind. – Valero Renewable Fuels Co. has opened its first ethanol plant on the inland river system at the Port of Indiana-Mount Vernon. Valero purchased the 110-million gallon ethanol plant from Aventine Renewable Energy in March 2014 and celebrated the opening in August. The company is a subsidiary of Valero Energy Corp., the 10th largest Fortune 500 Company in the U.S. The Mount Vernon plant’s logistical advantages include ready access to corn suppliers as well as strong rail, truck and barge transportation and were instrumental in Valero’s decision to purchase the plant. “This facility will provide Valero with a tremendous strategic advantage in the production and distribution of ethanol,” said Ports of Indiana CEO Rich Cooper. “When you combine the resources and expertise of a world-class company like Valero with one of the world’s richest grain producing regions and the port’s multimodal capabilities, there’s a strong likelihood this plant will once again be one of the largest ethanol producers east of the Mississippi River.” 10 PORTSIDE – 2015 Issue 1

Martin Parrish, Valero’s vice president-alternative energy and development, said the company is looking forward to ramping up ethanol production at the facility. “We intend to invest in the Mount Vernon plant to make it competitive with other top-tier ethanol facilities, and we will use the technical expertise we have gained at our other plants to look at ways to improve Mount Vernon’s reliability, production rate and product yields.” Valero subsidiaries employ approximately 10,000 people and 65 employees currently work at the Mount Vernon plant. “This ethanol plant is a very important facility for the port and our region of the Midwest,” said Phil Wilzbacher, port director for the Port of Indiana-Mount Vernon. “Valero’s investment into the facility has a positive impact for farmers, agribusiness, industrial service providers, truck, rail and barge operators, as well as many other area businesses. Being its first plant located on our U.S. Inland River System, Valero now has the ability to turn a ‘logistics triple play’ with access to barge, rail and truck markets. We’re pleased to welcome Valero to the already impressive list of companies at our port and the region.”

SHIPPING MAPS: PORT OF INDIANA-MOUNT VERNON

Where in the world does the port ship cargo?

The Port of Indiana-Mount Vernon provides multimodal connections for companies across the nation and around the globe. No matter where the shipment is going, the port provides customers with access to the Ohio River, Gulf of Mexico and 12,000 miles of inland waterways, as well as five Class I railroads and major highways. GERMANY RUSSIA UNITED KINGDOM

CANADA

ITALY

UNITED STATES DOMINICAN REPUBLIC MEXICO

JAMAICA

SOUTH KOREA

INDIA PAKISTAN

BRAZIL

JAPAN

CHINA

MOROCCO

LAOS

PHILIPPINES

INDONESIA

CHILE

20 COUNTRIES • Port companies ship cargo to/from 20 countries. • River barges are transloaded with ocean vessels in the Gulf of Mexico for international shipments.

44 STATES* • Port companies ship cargo to/from 44 states. • The Ohio-Mississippi river system provides 12-month barge service to 20+ states, Lake Michigan and the Gulf of Mexico. • 2014 Port Traffic: - 2,500 barges - 25,000 railcars - 130,000 trucks

MOUNT VERNON

*Currently shipping to all states except Alaska, Hawaii, Montana, Nevada, Rhode Island, South Dakota

www.portsofindiana.com Port of Indiana-Mount Vernon Special Edition

11 5

PORT REPORT: BURNS HARBOR

PORT OF INDIANA-BURNS HARBOR • Located in Portage, Ind., on the south shore of Lake Michigan, 18 nautical miles from Chicago • 600 acres with 85 acres available for development • Handles international ships via the St. Lawrence Seaway and river barges via the Inland Waterways System • Serves largest steel-producing region in North America • Home to 30 companies, including 15 steel facilities • Year-round barge access to 20+ states and Gulf of Mexico • Major cargoes: steel, grain, chemicals, fertilizers, limestone, coal, coke, salt and heavy-lift cargo • Foreign-Trade Zone #152

In 2014 the port handled 29 beer tanks with 20,000-gallon capacity.

Ocean vessel traffic increased 35 percent in 2014 while river barges were up 25 percent.

2014 shipments are highest in port’s 44-year history The Port of Indiana-Burns Harbor handled more shipments in 2014 than any year since the port opened in 1970. Total tonnage was up nearly 30 percent over 2013 driven by strong shipments of steel, grain and salt. “Steel going into the manufacturing sector was a key driver for the increase in port shipments,” said Port Director Rick Heimann. “In 2013, the port handled its highest steel volume since 2006 and 2014’s steel tonnage more than doubled the previous year’s total. This growth can be attributed to an extremely productive workforce, world-class port companies and top-notch multimodel connections to the steel capital of North America.” The port also had a 35-percent increase in ocean vessels over 2013 and nearly a 25-percent increase in river barges moving through the Illinois/Mississippi river system. “The port handled over 500 barges in 2014 for the first time in several years,” said Heimann. “River barges provide a vital link to over 20 states, 12,000 miles of rivers and ocean vessels in the Gulf of Mexico that allow the port to have year-round access to world markets when the St. Lawrence Seaway is closed for the winter.” The port continues to serve as a preferred inland hub for large dimensional specialty cargoes, including beer tanks, wind turbines and fuel processing equipment. In 2014, 29 beer fermentation tanks, each with over 20,000-gallon capacity, were shipped from Germany to Lagunitas Brewing Co. in Chicago—one of the largest craft breweries in the U.S. The port also received an 885,000-pound project cargo shipment via barge that contained a fuel processing unit being transported from Oklahoma to Ohio. The entire unit was off-loaded at the port’s specialized Ro-Ro dock, which is used to roll-on and roll-off specially-designed trailers that are too large or cumbersome for cranes. 12 PORTSIDE – 2015 Issue 1

Two port companies announced major expansions in 2014 as NLMK Rick Heimann invested $8 million to expand its steel Port Director mini-mill operation and Carmeuse Lime Contact Info: & Stone pumped $11 million into its (219) 787-5101 limestone processing facility. rheimann@portsofindiana.com This port’s strategic location at the intersection of two of the world’s busiest waterways and all of the nation’s Class I rail lines provides significant competitive advantages for multimodal companies to grow their business.

The Port of Indiana-Burns Harbor handled more than 500 barges in 2014, moving cargo between Lake Michigan and the Inland Waterways System.

Construction on the East End Crossing Bridge over the Ohio River is underway just east of the Port of Indiana-Jeffersonville.

PORT REPORT: JEFFERSONVILLE

Port of Indiana-Jeffersonville • Located across the Ohio River from Louisville, Ky. • Home to 28 business and service providers • 13 steel-related companies on “Steel Campus” offer synergies for auto and appliance industries • Year-round barge access to 20+ states and the Gulf of Mexico • 1,057 acres of land, 340 acres available • Major cargoes: corn, fertilizer, salt, wire rod, soybeans, steel, liquid asphalt, pig iron, heavy-lift cargo • Foreign-Trade Zone #170

New bridge and steel investments spur record growth Major investments in Southeast Indiana helped create a record year for the Port of Indiana-Jeffersonville and a bright outlook for future growth. For the first time in the port’s 29-year history, annual shipments exceeded 2 million tons in 2014, a 48-percent increase over the previous year. The growth resulted from increases in grain, steel and mineral cargoes as well as Ohio River bridge construction and several port business expansions.

The Port of Indiana-Jeffersonville set a shipping record in 2014 exceeding two million tons for the first time.

Widely known for its steel focus serving automotive and appliance Scott Stewart industries giants such as Ford, GE and Port Director Carrier, the port’s “Steel Campus” was Contact Info: further strengthened by some major (812) 283-9662 investments in 2014. Five steel companies sstewart@portsofindiana.com invested more than $50 million into their facilities, including expansions by long-term port companies, Voss Clark, Steel Dynamics and Metals USA. Mill Steel of Grand Rapids, Mich., opened a new facility at the port in June while Delaco Steel of Dearborn, Mich. and Louisville’s Steel Technologies began a new joint-venture operation known as Delaco Kasle Processing Indiana. “This is a transformational time for this port,” said Port Director Scott Stewart. “With the new east end bridge opening in late 2016 just a mile away, the Port of Indiana-Jeffersonville will significantly improve its access to new markets in the Louisville region, extending towards Cincinnati, Lexington and Nashville.” The Louisville-Southern Indiana Ohio River Bridges Project, which also includes a downtown Louisville bridge, is one of the nation’s largest infrastructure projects. When complete, the $2.6 billion project will provide a metropolitan loop on I-265 and connections to three interstates as well as the port’s multimodal facilities. Steel girders for the downtown bridge arrive at the port by truck and are being shipped by barge to the construction site six miles downstream. The new bridges will be key drivers for future economic development at the port. With inbound cargo arriving from as far away as China and outbound cargo shipments to Japan, the Port of Indiana-Jeffersonville is a major multimodal hub serving the north central Kentucky and southeast Indiana region.

www.portsofindiana.com

From the Board Room The Ports of Indiana Commission is a seven member, bipartisan board of directors for the Ports of Indiana which is appointed by the governor and meets six times per year to approve major projects.

Ken Kaczmarek Chairman

Greg Gibson Vice Chairman

Marvin Ferguson

Ramon Arredondo

David Fagan

Phil McCauley

Christine Keck

Jay Potesta Secretary/Treasurer

Commission finalizes $42M capital program for 2009-2014 The Ports of Indiana Commission approved more than $5 million in infrastructure investments for Indiana’s three ports in 2014, culminating a six-year capital improvement program that invested $42.6 million in Indiana’s three ports. “The Ports of Indiana Rich Cooper maintains some of the most CEO, Ports of Indiana modern facilities on the Great Lakes and inland river system,” said Ports of Indiana CEO Rich Cooper. “We truly operate like a business with no financial reliance on local communities or state tax dollars, and 100 percent of port revenue is reinvested into infrastructure to make sure Indiana’s port customers have the multimodal connections they need to grow business.” The Ports of Indiana has invested an average of $7.1 million per year at its three ports since 2009. Major projects included dockwall reconstruction and a new road at Burns Harbor, land acquisition and mooring structure rehabilitation at Mount Vernon, as well as rail expansion and property acquisitions at Jeffersonville. In 2014, capital projects at the Port of Indiana-Mount Vernon included replacement of rail track, two rail culverts and a concrete pad on Pier 3, as well as the addition of security equipment, which was partially funded by FEMA’s port security grant program. The Port of Indiana-Jeffersonville also completed multiple rail rehabilitation projects in 2014. Projects at the Port of Indiana-Burns Harbor in 2014 included replacement of a sanitary sewer and rail track as well as improvements to Berth 15 and the port’s fire main system. The mission of the Ports of Indiana is to develop and maintain a world-class port system that operates as an agile, strategically-driven, self-funded enterprise dedicated to growing Indiana’s economy. Additional capital projects will be reviewed and awarded at future Ports of Indiana Commission meetings. For information, visit www.portsofindiana.com.

PORTS OF INDIANA CAPITAL IMPROVEMENTS $ 15 Million

$ 10 Million

$ 5 Million

$2009

2010

2011

2012

2013

2014

Construction workers install a new concrete pad on Pier 3 at the Port of Indiana-Mount Vernon in 2014.

2015 Commission Meeting Schedule

2014 Mount Vernon Projects:

February 26 - Indianapolis April 23 - Mount Vernon June 18 - Jeffersonville August 20 - Burns Harbor October 22 - Indianapolis December 17 - Indianapolis

Major capital projects at the Port of Indiana-Mount Vernon in 2014:

Schedule is subject to change Meeting notices are posted at www.portsofindiana.com 14 PORTSIDE – 2015 Issue 1

• Rail Track Replacement - Contract awarded to Ameritrack Rail, a division of Railserve Inc. of Frankfort, Ind. • Pier 3 Concrete Replacement - Contract awarded to Gohmann Asphalt & Construction Co. of Clarksville, Ind. • Rail Culvert Replacement - Contract awarded to Deig Brothers, Lumber & Construction Co. Inc. of Evansville, Ind.

Ports of Indiana-Central Office 150 W. Market St., Ste 100 Indianapolis, IN 46204 (317) 232-9200 | fax (317) 232-0137 info@portsofindiana.com www.portsofindiana.com