What Took Us So Long? America’s Inner Coast Summit Proves to be a Watershed Event
Securing the Supply Chain How Sonar Can Expand Your Port’s Business Alabama Ports Partner with Panama Canal
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INLAND PORT MAGAZINE Jennifer Carpenter American Waterways Operators Sr. Vice President-National Advocacy, AWO www.americanwaterways.com
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July/August 2010 Volume II, Number IV ISSN 2156-7611
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Inland Port July/August 2010 • Volume II, Issue IV
Securing the Supply Chain from End to End
Stark to Help Lead GICA into the Future
America’s Inner Coast Summit: A Watershed Event
Using Sonar to Expand Your Port’s Future Business
New Barge-Haul Systems Improve Unloading Efficiency
A new publication from TT Club and ICHCA’s International Security Panel aims to define the principles of security in the supply chain and guide operators on how to enhance value through security implementation Exclusive interview with Jim Stark, who was recently named Executive Director of the Gulf Intracoastal Canal Association Alan Dooley and George Stringham detail the inaugural edition of what will surely be a key annual gathering going forward
By Steve Campbell
Launching a New Port for Missouri
Jefferson County’s fledgling port authority is a good example of the hurdles small-to-medium-sized communities face in making port facilities a reality. In this exclusive interview, Port Authority Chairman Daniel L. Govero, PLS, tells us what they’ve accomplished thus far E-Crane is offering barge-haul equipment designed to increase the speed and economy of the overall unloading operation
20 Preparation is the Key to Your Port Surviving a Storm
C. Daniel Negron, of Thomas Miller (Americas), asks: Is your facility fully prepared for what Mother Nature can dish out?
22 Sennebogen Lifts Liberty Iron 24 Alabama Port Authority Partners with Panama Canal 28 Port of New Orleans to Streamline FTZ Approval 29 NGA Charts Without a Home, Waterway Safety Suffers 32 Interview with Mike McQuillan
By Anne Kinner, USCG Licensed Master, of Seabreeze Books and Charts
THE LAST WORD
Vice President, Hanson Professional Services, Inc.
On The Cover Maj. Gen. Michael J. Walsh, Commander, Mississippi Valley Division, at the inaugural America’s Inner Coast Summit in St. Louis, MO. (USACE photo by Alan Dooley)
What Took Us So Long? America’s Inner Coast Summit Proves to be a Watershed Event
Securing the Supply Chain How Sonar Can Expand Your Port’s Business Alabama Ports Partner with Panama Canal
Securing the Supply Chain from
Ports and cargo handling terminals – as key nodal points – are vulnerable links in the supply chain from the security point of view. However, all links in the supply chain are exposed to security issues. Commercial realities mean that effective integration of security regimes into business workflow is critical. A new publication, jointly researched and written by TT Club and ICHCA’s International Security Panel, aims to define the principles of security in the supply chain and to guide all operators in the supply chain on how to enhance value through effective security implementation. It not only promotes good practice, but also explains why security need not be seen as an unnecessary drain on resources and can actually provide a significant contribution to the bottom line. 4
ince 2001 a plethora of international maritime and supply chain security legislation, along with associated security initiatives, have been introduced to protect the world’s global supply chain. Terrorism has heightened the awareness of governments and industry to the vulnerability of the supply chain, accelerating the importance of supply chain security internationally. Government and industry initiatives are requiring businesses to take action to strengthen the security and resilience of their supply chains. Supply chains are varied and complex, involving numerous parties, which make them vulnerable to exploitation by criminals and terrorists. Protection against such exploitation can only be achieved by considering the supply chain as a whole, rather than at individual nodes in isolation. Supply chain security requires each stakeholder to be involved and engaged with their upstream and downstream partners to create a July/August 2010
End to End
panies who look at security from the perspective of a higher level of management and actively incorporate it into the entire scope of their business operations. It also profiles current supply chain security initiatives and technologies evaluated for each part of the supply chain. “Investment in supply chain security provides higher levels of security and therefore lowered risk,” says Yuvraj Narayan, CFO of DP World and TT Club board member. “This also leads to significant increase in business value through improved and streamlined operational capabilities, increased customer confidence, and reduced costs, thereby increasing profitability.” This new edition is the culmination of previous, more narrowly focused publications. In the early 1990s the TT Club published a booklet entitled Terminal Security, prepared by Andre Ya Deau, of the US security management consultancy International Security Services, and Peter Westley of the London based investigation company Signum Services. The aim of that document was to outline a number of general principles of good physical security practice, as well as to offer specific recommendations for terminal operators. In July 2004 the IMO’s International Ship and Port Facility Security (ISPS) Code came into force, introducing a need for common security standards at the ship/port interface and the concept of the secure maritime supply chain. The aim of this new booklet is to extend that concept to the entire end-to-end supply chain and inform the reader of contemporary supply chain security methodology, which should form part of good practice for operational management. This booklet takes into account contemporary terminal, or nodal, practice as well as supply chain initiatives and regulation. Similarly, while the original was more aimed at warehouses and terminals, this new loss prevention booklet seeks to encompass all operators in the supply chain. It was prepared in collaboration with the International Security Panel of the International Cargo Handling & Coordination Association (ICHCA), which publishes the text as Security Series SS1.
SECURING THE SUPPLY CHAIN FROM END TO END
chain of responsibility that extends from the point of origin to the final destination. The ISO 28000:2007 series of standards on supply chain security management systems was developed in response to demands from the international transportation industry for a common global standard that would be mutually acceptable and recognized, rather than being forced to adopt and comply with security measures that had no direct relevance to their business. When your business adopts an approach aligned with ISO 28000:2007 standards, you will observe that security becomes an integral part of your business, encompassing responsibility across all departments. This results in enhanced operations and safeguarding of employees and assets, and provides customers with the required confidence to associate with your business knowing that their cargo will be protected.
A NEW TOOL FOR SECURING YOUR SUPPLY CHAIN TT Club’s new publication, Supply Chain Security Management, Initiatives & Technologies, provides a cogent introduction to ISO28000:2007 standards and processes. It features a review of a methodology used to measure its benefits by comJuly/August 2010
In the years immediately following the events of September 11, 2001, the transportation industry created and implemented several port and supply chain security measures to prepare and protect the industry. These included the IMO’s ISPS Code, as well as the United States’ Container Security Initiative (CSI) and Customs Trade Partnership Against Terrorism (CTPAT) initiative.
EMERGENCY PREPAREDNESS, RESPONSE & RECOVERY SCENARIO: Separate plans had been developed for emergency situations relating to health & safety or environmental issues and responses to security situations. PROBLEM: Little consideration had been given to overall combined response from all departments for each situation and no consideration had been given to the ongoing requirements for securing the facility during and following an emergency. SOLUTION: Comprehensive and fully coordinated plans were developed which addressed the security of the operations during and following an incident of any kind.
The key is to get all staff in the habit of opening their eyes and ears, and to strictly adhere to safety protocols.
As the depth and complexity of supply chain security has become apparent, the focus of many security initiatives has broadened past terrorism. It is these initiatives that TT Clubâ€™s new booklet aims to introduce in a practical manner. Debate at this time is focused on securing supply chains from end to end. Research has shown that it typically takes 25 different parties and 30 different documents to get goods from one end of the supply chain to the other. With all these hands involved, the opportunities for tampering are plentiful. Against this background, the World Customs Organization introduced the twin pillars of the customs-to-customs network arrangements and customsto-business partnerships in the Safe 6
LACK OF Security awareness AMONG STAFF SCENARIO: Security training had been received by those personnel with security duties. PROBLEM: However, no security awareness training program was in place for all staff and visitors. This led to a lack of understanding by staff of the requirements for security and generated conflict between the security guards and operational staff. SOLUTION: Through a program of short training courses and posters, and a feedback system for security issues, the security awareness of the staff was greatly increased. This promoted cooperation with security personnel and, most importantly, provided the site with one of the best security resources available, the engagement of all staff to report security deficiencies or unusual circumstances. www.inlandportmagazine.com
Framework of Standards to Secure and Facilitate Global Trade. As S. Jayakumar, Singapore’s Deputy Prime Minister and Coordinating Minister for National Security and Minister for Law, says, “Supply chain security is only as strong as its weakest link.” The Safe Framework introduced the concept of the “Authorized Economic Operator,” which has since been enshrined in various countries’ legislation, including the EU. Authorized economic operators include manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses and distributors. This brings emphasis to the entire supply chain.
LOOKING BEYOND TERRORISM Supply chain security initiatives are not exclusively 21st century phenomena. The Business Alliance for Secure Commerce (BASC) began as an anti drug-smuggling program introduced between Mexico and the United States in 1996. Similarly, The Transported Asset Protection Association (TAPA) was founded in the 1990s to counter the threats to increasingly high-valued shipments of technology products. Furthermore, the current interest in
Corrective action after a security incident SCENARIO: An unannounced breach test was undertaken, resulting in the penetration of the perimeter by an individual. PROBLEM: The failure was initially assumed to have been a lack of attentiveness by the guard. However, by following a robust format for investigation into the root cause, it was found that there was a blind spot at the guard post. SOLUTION: Corrective action was undertaken to remove this failure in the security protocol. supply chain security initiatives is only partly due to the events of September 11, 2001.The reality is that globalization has resulted in companies’ supply chains becoming extended across continents as never before. The need for the effective management of risk has resulted in the extension of supply chain risk management to include issues of security. However, as global trade increases, the danger of weapons or a terrorist entering a country in a cargo container is a very real threat. The incident at the Port of Ashdod in March 2004, involving the apprehension of a terrorist operative hiding in a container en-route to Canada, highlights the fact that “the container is the Trojan
Horse of the 21st century,” as described by Robert Bonner, US Commissioner for Customs and Border Protection.
THE IMPORTANCE OF ISO 28000 A key focus of the TT Club booklet is ISO 28000, which fundamentally addresses the shift to supply chain security. One of the main purposes of ISO 28000 is to be a common value-adding, verifiable, internationally-recognized standard that bridges governmental and industry-driven supply chain initiatives. It currently stands alone in being able to fulfill the requirements for reciprocity between them. It is based on all currently prevalent and relevant global security initiatives, including the World
Customs Organization’s Safe Framework, CTPAT, and EU AEO. In addition, it represents a move away from mere compliance by applying a process approach and the “Plan-Do-Check-Act” methodology to address potential risks. ISO 28000 offers a systematic approach to security management that can both improve operational capabilities and increase confidence on the part of customers and regulators. All businesses that are reliant on It is critical that all staff be the supply chain encouraged to report any for business consecurity deficiencies or tinuity will benefit unusual circumstances. by adopting the sound management principles in ISO 28000. “The implementation by governments of a regulated agent system for maritime supply chain security, based upon the WCO Framework of Standards model, could have significant benefits for increasing safety and security while at the same time enhancing the facilitation of international trade,” says Chris Trelawny, IMO Senior Technical Officer. “Procedural security measures, consistent with the approach of ISO, would enhance the effectiveness of such an approach, while at the same time building confidence in the integrity of the system.” For more information on this valuable new resource for supply chain security, visit www.ttclub.com or www.ichca.com. IP
The importance of cctv SCENARIO: An appropriate closedcircuit television (CCTV) system was installed at a site with dedicated personnel assigned to monitor the images on a 24-hour basis. PROBLEM: While the personnel were dedicated to the work and suitable procedures had been put in place for the response to any incident or suspicious circumstances no specific site training had been given. This meant that the monitoring personnel had not been trained to understand ‘normal practices’ and therefore found it difficult to identify unusual circumstances. Little coordination was found between the monitoring staff and security guards. SOLUTION: A training package was designed and delivered to provide the CCTV monitoring staff with a full understanding of the operations of the site, active monitoring techniques and coordinated operations and drills with the security guards.
Stark to Help Lead GICA into the Future
As additional shipping reaches Gulf coast ports, we’ll need a reliable, economically viable transport system to further bring those cargoes closer to their ultimate destinations. Gulf Intracoastal Waterway stakeholders will certainly want to take full advantage of any opportunity to expand services associated with increased shipping. –Jim Stark
Jim Stark was recently named Executive Director of the Gulf Intracoastal Canal Association (GICA). GICA’s mission is to ensure the US Gulf Intracoastal Waterway is maintained, operated and improved to provide the safest and most efficient, economical, and environmentally-sound water transportation route in the nation.
he Gulf Intracoastal Canal Association was organized in 1905 to promote the idea of a single channel that would connect all major Gulf coast ports. This very idea materialized some 44 years later, with the formal completion of the Gulf Intracoastal Waterway in June 1949. A significant engineering achievement, the Waterway’s creation was made possible only by the cooperative efforts of communities, legislators and government agencies, working together toward a common goal. From its early days, the GICA educated these groups regarding the importance of the Waterway, and facilitated their collaboration. “I am honored to be named Executive Director of GICA. I will, along with its members, develop and carry out a strong vision for our organization’s future,” Stark said. Stark most recently consulted on the response and recovery operations associated with the Deepwater Horizon Spill in the Gulf of Mexico. He also served as the Federal Emergency Management Agency (FEMA) Assistant Administrator for Gulf Coast Recovery. In that capacity, he acted as the Senior Executive Service leader of a professional staff overseeing Hurricanes Katrina and Rita recovery operations in Texas, Louisiana, Mississippi, and Alabama. Prior to that Stark was a Gulf Region Operations/Logistics Coordinator for Titan Maritime LLC. He provided support and expertise to Titan personnel and other salvors to plan and execute coordinated salvage operations for thousands of grounded, sunk and stranded vessels throughout the affected coastal areas in the wake of Hurricane Katrina. Serving the US Coast Guard in a number of capacities throughout his career, Stark was Chief of Staff for the Eighth Coast Guard District in New Orleans from 2003 to 2005, acting as Principal Deputy and advisor to USCG District Commander; Chief of the Operations Division for the Seventh Coast Guard District in Miami, Florida, from 2001 to 2003; Commander of the Coast Guard Group in Mobile, Alabama, from 1998 to 2001; and a Coast Guard Officer in various afloat and shore locations from 1976 to 1998. Jim received a Master of Science degree in National Security Strategy from The National War College in Washington, DC; an MBA from The College of William and Mary in Williamsburg, VA; and a Bachelor of Science degree in Ocean Science from the United States Coast Guard Academy in New London, CT. “On behalf of GICA’s entire membership, we are delighted to welcome Jim Stark as our Executive Director,” said GICA Presidetn Ray Sick. “His vast and well-respected experience and credentials will provide the strong leadership we need as we continue to move the organization forward.” “Jim’s fine reputation precedes him and we look forward to a very bright future ahead with him at the GICA helm,” said GICA President-elect Cherrie Felder. As you can see, this was a popular appointment among Stark’s GICA colleagues. He shares his vision for the organization in this exclusive interview with Inland Port. www.inlandportmagazine.com
Congratulations on your new post. Can you outline your organization’s leadership for readers who might not be familiar with your group? The Gulf Intracoastal Canal Association (GICA) leadership is comprised of a 14-member Board of Directors which includes representation from members in each of the five Gulf Coast states. The officers of the board are executives from member companies and represent a wide range of industries which are interested in the continued safe, efficient and economic operation of the waterway. For example, they come from barge lines, supply companies, shippers, equipment and repair companies, ports and shipyards.
Gulf Intracoastal Canal Association
How will GICA’s leadership help you achieve these objectives? Our board members are all highly experienced and greatly involved in inland waterways issues. I think we share the same vision for ensuring we provide the best service possible to our membership, educating the public about the value of the waterway.
Board of directors & officers
Of course, there’s one topic on everyone’s mind at the moment, and that’s the BP spill and its tragic consequences. You have consulted on the project. What exactly did that entailed for you so far? I worked briefly as a consultant advising on some Louisiana coastal parish liaison issues. Then I helped BP and Coast Guard staffs develop hurricane plans, should the recovery operations be threatened by storms this season. We focused our efforts on ensuring plans were in place to effectively evacuate people and equipment from flood prone areas well ahead of any potential general population evacuation orders.
Ray Sick, Enterprise Marine
Cherrie Felder, Channel Shipyard Companies
Kelly Teichman, T&T Marine/Tug Josephine
How can your experience with FEMA hurricane recovery efforts translate to oil spill recovery efforts along the coast? I believe I was able to put some of the relationships I had developed with state and local recovery officials to good use. And, since at FEMA we were very concerned about evacuations and hurricane preparations, I believe I was able to translate some of that experience directly to helping the team I worked with last month.
Spencer Murphy, Canal Barge Company
Vice-President for Alabama
Steve Brewster, Eagle Marine Group
Vice-President for Florida
Linn Peterson, Enterprise Marine Services
Vice-President for Louisiana
Joe Cocchiara, Port of New Orleans
Vice-President for Mississippi
Roger Harris, Magnolia Marine Transport
Vice-President for Texas
Waymon Boyd, King Fisher Marine Service/Orion
Member at Large
Charlie Jenkins, Port of Houston Authority
Member at Large
Paul Mauer, Trinity Marine Products
Member at Large
Mario Munoz, American Commercial Lines
Matt Woodruff, Kirby Corporation
Executive Director Jim Stark
Now to more pleasant topics. What are your short-term goals for GICA? In the short term I want to learn as much as I can quickly so that I can be a credible and effective representative for GICA. In the next month I’ll be immersed in planning for our Annual Convention in New Orleans in August. Also, I need to quickly reestablish the Executive Director’s relationships with the Intracoastal Canal’s stakeholders. Some of these folks I know from past assignments and jobs, but I plan to reach out to the others as soon as practicable to understand their issues, points of view and concerns. I want to listen to our members’ ideas and translate those into improved membership service. I will also work to ensure that GICA and its membership continue to be well prepared as we enter the heart of hurricane season. I remember watching how well GICA members responded to past storm-related waterways closures and being impressed with the close working relationship the organization had with its Federal and state partners. I want to be sure that partnership continues and we can fulfill our commitment to keeping the canal and its tributaries safe, efficient and economical whatever Mother Nature should throw at us. What about long-term goals? Long term I plan to focus on our mission: to ensure the Gulf Intracoastal Waterway is maintained, operated and improved to provide the safest, most efficient, economical and environmentally sound water transportation route in the nation, serving petrochemical facilities, refineries, farms, mines, ports, commercial fisheries, recreation and more. I’ll work with the board and membership to identify threats the waterway may face as far ahead of time as possible. We’ll continue to press projects to resolve trouble spots on the waterway, such as Inner Harbor Navigation Canal, Galveston railroad bridge, and encroachment issues. We’ll continue to work with stakeholders to ensure funding for these and additional projects which arise. As mentioned earlier, we’ll be prepared for the challenges and opportu-
nities brought by the Panama Canal widening and any increased shipping to the Gulf Coast. Last, we’ll capitalize on the green aspects of barge transport and do more to make the Gulf Intracoastal Waterway an easy first choice when considering Gulf regional transport modes. Is GICA paying particular attention to the expected increase in future shipping traffic from the new and improved Panama Canal? Yes. As additional shipping reaches Gulf coast ports, we’ll need a reliable, economically viable transport system to further bring those cargoes closer to their ultimate destinations. Gulf Intracoastal Waterway stakeholders will certainly want to take full advantage of any opportunity to expand services associated with increased shipping.
How did your days in the USCG prepare you for the challenges you now face? I’ve lived on the Gulf coast for 13 years. Over eight of those were while I was in the Coast Guard; and much of that time I had the responsibility for ensuring the Gulf Intracoastal Waterway’s aids to navigation were on station and watching properly Beyond that direct participation, and my familiarization with Coast Guard policies and regulations affecting the waterway, I think the most value I got from my Coast Guard days is the exposure to the industry and its people. Has GICA’s membership evolved over the years? Is attracting new members important in the grand scheme of things? I think the association has evolved some over the years, as has its membership. However, the core of the membership has
always been and remains those people, entities and companies whose livelihood is directly impacted by the waterway. If we do our job of showing how important the waterway is to all manner of diverse interests and how GICA is serving those interests and providing value to its members, we will recruit new members and new types of members, as well as retain our existing members. Is there anything you’d like to add that we have not yet covered? I’m very pleased to return to work in the maritime environment and look forward to fulfilling the mission of GICA. Even in my first week at work, I could tell there’s a great community of inland and coastal waterways’ stakeholders, GICA members and government partners to work with. I’m excited to be a part of that. IP
A Watershed Event
America’s Inner Coast Summit
W By Alan Dooley and George Stringham
(Above) Maj. Gen. Michael J. Walsh, Commander, Mississippi Valley Division, addresses the attendees at the first America’s Inner Coast Summit, June 22-24, in St. Louis, MO. (USACE photo by Alan Dooley) 12
hen we speak of the coasts of the United States, we usually think of the Atlantic and Pacific coasts. We think of the large cities and major shipping centers, like New York, Charleston, Los Angeles and nearby Long Beach, San Francisco and Seattle. But if you take a different look at the nation, from high above, and stretch your imagination a little, you can also see east and west segments of the country – and another coast with a long, narrow coastal water body, with major cities and major shipping centers such as New Orleans, Baton Rouge, Memphis, Cincinnati and St. Louis. That long, narrow coastal water is the Mississippi River and its tributaries and distributaries. Today that “coast” serves a number of purposes. It supports a rich ecosystem. It is a waterborne interstate highway that safely and economically moves more than five hundred million tons of cargo annually. It is a source of July/August 2010
tatives from Monsanto Corporation, The Nature Conservancy, Gulf Engineers and Consultants, the National Great Rivers Research and Education Center, and the University of Florida’s Office of Conferences and Institutes rounded out the leadership roles. The goal of the summit was to develop high-level recommendations to be considered in developing sustainable Mississippi River valley projects and initiatives and to help further the exchange of information regarding progress and barriers/constraints on current projects, programs and activities.
A Broad Vision for Sustainability
water for sustenance, industries and agriculture. It supports recreation. And it is an object of love and reverence for those who live and work on it and along it.
Celebrating America’s Inner Coast Members of the US Army Corps of Engineers, several non-governmental organizations, federal agencies, states, tribal nations, private landowners, private industry, academia and community representatives converged on Union Station in St. Louis for in late June for America’s Inner Coast Summit (AICS). The gathering was co-facilitated by John Laub, of the Sand County Foundation, and Dr. David Vigh, of the USACE Mississippi Valley Division. The purpose was to discuss and help further a vision for this multiple-use inner coast. A Steering Team made up of represenJuly/August 2010
Unlike other summits or conferences where the focus is often narrowed to one particular aspect such as navigation, development or the environment, this gathering’s focus was on the combination of those aspects and how they can be intertwined for a total purpose: sustainability. “We were excited to have the opportunity to co-facilitate this landmark event with the US Army Corps of Engineers and encourage collaboration of the many partners at the summit to articulate a sustainable vision of the watershed based on sound ethics, science, partnerships and voluntary landowner actions,” said Brent M. Haglund, PhD, President of Sand County Foundation. Sand County Foundation Director Terry Mulcahy wove the setting for the conference in his opening remarks. Mulcahy is a professional engineer who lists a broad spectrum of contributions to public service, ranging from 11 years as Wisconsin’s Deputy Secretary and Secretary of Transportation to service as the ranking Army Reserve General Officer and senior engineer for the US forces in the Persian Gulf War. He introduced the Sand County Foundation’s nationwide and global purpose, and their commitment to future AICS events. As much attention and resources have been on the development of the nation’s East and West coast, little has been focused on the inner coast, the Mississippi River and its tributaries. Maj. Gen. Michael J. Walsh, Commander of the Mississippi Valley Division and President designee of the Mississippi River Commission, kicked off the opening session by suggesting that we are caught up in the culture of our past. Walsh also commented that he’s been told that the Mississippi River watershed is too big to have a vision. His response? “It’s a working vision, we can mature and change it as we need to.” The general talked of a 200-year vision for the entire watershed. He called not just www.inlandportmagazine.com
for accepting such a vision, which he said would be an intellectual exercise. He asked people, instead, to believe in one with their hearts and to commit to the hard work required to communicate and bring people along to agree on a path forward for the 3rd largest watershed in the world. Ivor Zavadsky, a Senior Water Resources Management Specialist from Europe’s Global Environmental Facility followed the general to the podium. Zavadsky provided insights into how governments of foreign nations through which the Danube River flows and Black Sea interests have come together to develop a regional approach to solving trans-boundary issues that parallel mid-America’s concerns for the Mississippi River and its tributaries. Policy Analyst Mark Gorman, of the Northeast-Midwest Institute. next told how our vision and beliefs can either stimulate or restrict our understanding and actions. Using an early Spanish map of America, he told how the Spanish were convinced – as their map showed – that the Gulf of California ran all the way to the northern Pacific Ocean and California was actually an island. Refusing to believe differently for more than three decades, when Spanish leaders directed their colleagues in California to penetrate into the unknown interior to the east, they also sent boats for them to cross from California to the mainland to the east! Gorman urged his audience to overcome today’s parallel limits to thinking, that stem from an environment overseen by more than 30 House and Senate committees and subcommittees, state boundaries and often divergent goals, to incorporate public and private concerns to form a system vision. John Anifson, of the National Park Service, next presented a history of the river and region, showing how public policy shifted as flood control and navigation projects were overlaid on its waters. A cultural resources and history program manager for the Mississippi National River and Recreation Area, Anifson began by describing the river as European settlers found it. “It was wider. It varied in many places from 16 inches to two feet in depth. Islands dotted its length and it was a rich ecosystem without navigation. He then wove a story of succeeding navigation works that culminated in today’s nine-foot channel depth and the locks and dams that support it from St. Louis northward. The last speaker on the summit’s first day was John Ehrmann, founder and senior partner of the Meridian Institute. Ehrmann described his work in the field of developing collaborative decision-making 13
Ivor Zavadsky, a Senior Water Resources Management Specialist from Europe’s Global Environmental Facility addressed the AICS. (USACE photo by Alan Dooley)
processes for more than two decades. He described methods for building and sustaining decision making and sustaining processes, calling for inclusiveness to best ensure success. Meridian Institute also interviewed 43 river partners across various user sectors on aspects of a watershed effort to help focus the first day afternoon work groups. The summit’s lunch speaker was National Corn Growers Association Marketing Vice President Fred Stemme. Stemme skillfully used statistics about agriculture’s impacts on the nation and its ability both to meet its own needs as well as feeding much of the world. Focusing on corn, methods of increasing crop yields while decreasing impacts on the environment, he told lunch listeners his organization’s vision for the future of this important sector of the nation’s economy. The afternoon was given over to breakout work groups to examine specific issues and to develop recommendations for future consideration and work in specific areas, such as communication and outreach, integrating such groups as Indian nations, state, community and private interests into the future processes and other specific areas for future exploration.
viewpoints from the two largest contributors to the Mississippi River, the Ohio and Missouri rivers watersheds. First up was ORSANCO Executive Director and Chief Engineer, Alan Vicory. Vicory told how his group, the Ohio River Valley Sanitation Commission, was formed to manage water resource uses and issues for the entire length of the Ohio River. Established in 1948, the organization exists under a charter that is ingrained in laws of the Ohio River’s states and two more nearby states. Vicory told how that document binds the states together, funds the organization’s modest budget and ensures that the various entities work together for the common benefit of the region. The last speaker to take the podium was Missouri River Association of States and Tribes Executive Director David Pope. Pope discussed the often divisive issues affecting the Missouri River valley, including the operation of its system of vast reservoirs that provide water supply, flood control, hydropower and recreation. A feature of the river watershed is the cyclical precipitation patterns, resulting in a historical panorama ranging from surpluses of water to lengthy dry spells such as the droughts and the dust bowl in the 1930s, which was at least partly attribut-
MG Terry Mulcahy emphasized the Sand County Foundation’s nationwide and global purpose, as well as their commitment to future AICS events. (USACE photo by Alan Dooley)
The Ohio and Missouri River Watersheds Thursday morning’s session began with 14
Members of the USACE, non-governmental organizations, federal agencies, states, tribal nations, large private landowners, industry, academia and community representatives converged on St. Louis for the AICS. (USACE photo by Alan Dooley)
able to poor farming practices. Breakout work groups closed the morning with presentations on their discussions, which included opportunities for questions and comments from the rest of the summit attendees.
A Foundation to Build Upon The summit ended with an air of excitement. Unlike many conferences, few participants departed early “to catch planes.” The summit primarily focused on the main stem Mississippi River, with brief examinations of its main tributaries. Based on comments from the attendJuly/August 2010
ees, future efforts will shift to the larger watershed – the third largest in the world – that drains 41 percent of the nation and includes more than 1,250,000 square miles. This first meeting was built on recent agreements between federal, state, nongovernmental and private organizations. The future of the watershed will be best defined by bringing groups with all of the various interests, goals and dreams for the watershed together to build economically and environmentally sustainable solutions to the challenges of this and future generations. The die has been cast for a long-term, www.inlandportmagazine.com
intergenerational watershed vision. IP Alan Dooley is a retired chief of public affairs for the USACE St. Louis District. Prior to that, he spent more than 30 years in the US Navy as a photographer, journalist, and public affairs officer. George Stringham is a current public affairs specialist with the St. Louis District. Previously, he performed public affairs with the Memphis District. Mr. Stringham is also a Lt. Cmdr. in the U.S. Navy Reserves. This article originally appeared in the US Army Engineer Division, Mississippi Valley’s newsletter, Open Channels. 15
Using Sonar to Expand Your Port’s Future Business W
By Steve Campbell
Given the aging state of many older ports, piers, docks, and wharfs, it’s vital these structures be assessed for any weaknesses or physical issues. Sonar enables these operations to be conducted in zero visibility in rivers, lakes, harbors, reservoirs, and offshore. –Brian Abbott
(Above) The City of Portland, Oregon used sonar to acoustically “see” and survey the underwater infrastructure of its mile-long harbor seawall along the Willamette River. Here, the sonar images (combined with above-water photography) highlight underwater features of the wall including outfalls, wall joints, damaged or weakened areas, and unknown debris or scour at the “mudline” of the river bottom just below the Burnside Bridge. Sonar images can be combined into composite images that can be analyzed to determine a planned schedule of underwater maintenance activity at ports and harbors and along river and lake fronts. Source: Brian Abbott, Nautilus Marine Group. 16
hile the global recession has temporarily dented the growth in international trade and shipping, there’s little doubt that continued expansion of global trade and increased business for ports is just over the horizon. In addition to increasing harbor traffic, the expansion of the Panama Canal holds the promise of more competition and more business for this expanded import/export traffic. It’s vital that ports ensure their infrastructure is ready to handled increased trade when it comes. But, out of sight, out of mind, as Brian Abbott of Nautilus Marine Group notes. “If you can’t see it, it’s easy to miss a problem that is developing or getting worse underwater. It’s not until something expensive happens that people pay attention.” Nautilus provides engineering support services in the unique underwater environments of coastal and inland waterways in support of marine activities, e.g., navigational charting, channel maintenance, construction management, pipeline routing, archaeology and structural condition assessment. “Given the aging state of many older piers, docks, wharfs, bridges and dams pre-dating World War II, it’s vital these structures be assessed for any weaknesses or physical issues,” said Abbott. “Sonar enables these operations to be conducted in zero visibility in rivers, lakes, harbors, reservoirs and offshore.” The first step in using sonar in any port maintenance program, says Abbott, is to generate a baseline of what is on the sea floor by scanning all the sections methodically and then forming a mosaic of the images. In addition, baseline images are acquired of all pilings, walls and port structures to establish a foundation of what is there. In the future, these July/August 2010
images can be compared easily to newer images and analyzed to determine what has changed. If there’s something new, such as the appearance of a suitcase or metal box or something attached to a support piling, a diver can go down for a closer look. “Every port needs a baseline archive of sonar images as part of their maintenance program and for legal liability purposes,” notes Abbott. “The Duluth incident (where in 2008 a docking ship struck a submerged object that pierced the hull and flooded the engine compartment) points out that ports need to know what’s down there and whether some infrastructure is about to fail, causing damages and costs that will be apportioned.” As an example, if the submerged object in Duluth was a container, a history of banked sonar images might be able to pinpoint exactly when the container was dropped and determine who is responsible. This is an important feature when the lawyers look to apportion costs. But, importantly, given our global economy, if a pier or port structure goes out of commission, this can affect the port’s bottom line as business is lost or companies lose confidence in a port’s reliability. All ports need to know what they have now in order to plan ahead for maintaining current facilities and building new port capacity. “With expanding global trade and the upcoming expansion of the Panama Canal affecting port business, it’s vital that port infrastructure be ready to handle increased work,” says Abbott. “Sonar is one tool that can make sure your infrastructure is solid and ready to handle increased work.” IP You can reach Steve Campbell, of Canada’s Campbell & Company Strategies, via email at email@example.com. For more on Kongsberg-Mesotech’s line of port-ready sonars, visit www.kongsberg-mesotech.com.
More sonar views of the harbor seawall along the Willamette River.
Launching a New Port for Missouri Jefferson County, Missouri, has begun the process of raising money for a Second Phase Port Feasibility Study. Their fledgling port authority’s story is a good example of the hurdles small-to-medium-sized communities face in making port facilities a reality. Jefferson County hopes to have working port facilities within the next five years. Here’s what they’ve accomplished thus far. An Interview with Daniel L. Govero, PLS, Jefferson County Port Authority Chairman
Aerial View of Jefferson County. The objective is to create a cluster of public and private port facilities, along with public-private partnership land development opportunities.
Fill us in on the origin of the Jefferson County Port Authority. The Jefferson County Port Authority was formed in 1976 by individuals recognizing that we have a tremendous amount of Mississippi River frontage not being utilized. The Port Authority has looked at numerous sites along the Mississippi River to use as a port. The problem has always been access to the river from a major road.
and put in a small port utilizing the Doe Run property. We needed their blessing to use their land. Bill Whitmer, the Herculaneum city administrator, contacted Doe Run on behalf of the Port Authority with the plan of using the road and their property. After several months of no response, I was invited to a meeting at Doe Run. They had already hired a consultant and were in the process of a Phase I Study for feasibility.
How did you come to be involved as chairman? I grew up in Festus and am very familiar with the area. I became involved with the Economic Development Corporation, and other organizations that promote the community. As owner of Govero Land Services, which provides surveying and engineering, I am always interested in the growth and development of the county. I was appointed to the Port Authority Board in April of 2004, and appointed Chairman in the Spring of 2008. Our goal is to bring a port to Jefferson County.
How did you raise money for your feasibility studies? With the Cities of Festus, Crystal City, Pevely, Herculaneum, Jefferson County, The Economic Development, and the Industrial Development Authority, we obtained the money to tag on to the Doe Run Study and expand it to include the Dow Chemical site, Crystal City, and La Roche site. Phase I was completed and was better than expected, showing the preliminary plan, and feasibility to create 8,000 jobs in 25 to 30 years. For a copy of our Phase I Study, visit us at www.jeffcountymo.org. We have now raised money for Phase II Study through Doe Run, public and private funding donations. The Phase II Study will include a master plan further detailing users and environmental concerns, and other permits. It will also include a transportation study for a South entrance from I-55.
What actions have been taken so far? We had completed a study for a recreational port in Kimmswick in Spring 2005. We are still seeking funding to build and develop this property, which is owned by the county. In September 2008, the city of Herculaneum was awarded a grant for a road to bypass the city to Doe Run. This was the access to the river we were looking for. I put together an aerial picture, with the proposed road superimposed on it. I also added how we could access the river www.inlandportmagazine.com
What is the Port Authority’s next goal for your port facility? We hope to have a master plan completed in early 2011, with the transportation plan completed by late next summer. IP July/August 2010
New Barge-Haul Systems Improve Unloading Efficiency E-Cranes are currently unloading barges at port facilities worldwide at up to 2000 tons per hour, often in mission-critical applications where the E-Crane is the only means of unloading. Now E-Crane is offering barge-haul equipment designed to increase the speed and economy of the overall unloading operation.
his is a brief outline of a “typical” barge-haul system for moving loaded coal or limestone barges. The design provides utility grade unloading equipment and can move one or two loaded 35 ft x 195 ft jumbo barges with a capacity of 1500 mtons. Available travel distance is 145m +/-. The vector-opposed barge-haul system consists of two opposed winches— one forward, one trailing (upstream/ downstream)—that work in tandem with a continuous 7/8″ diameter steel cable that includes two master links with a hitch rope for tying to the material barge. The barge can be secured against drifting away from the river cell or dock face by a continuous barge-breasting cable. This is the fastest and safest way to handle and offload a barge. The two winches are mounted to the dock-cell tops with high-strength epoxy grout and 20 anchors. Each winch has a rated capacity of 14,000 lb on a single layer (21,000 lb starting) at a variable rope speed of 0-30 feet per minute. Winch motors are 15 hp, 0-1800 rpm, 460v, 3-phase, 60 Hz, inverter duty, totally enclosed blower cooled with dust and water-tight motor-mounted disc brake, and 1024 ppr encoder for motor speed feedback. The barge-haul system can be operated from inside the E-Crane operator’s cab or from a remote location by ground personnel while an empty barge is substituted for a full barge. Local controls are mounted at each winch. The push button station inside the E-Crane cab is located for easy, convenient use; and a foot switch provides for hands-free barge hauling while the operator is simultaneously unloading the barges. The control system uses dual vector drives, commanded by a PLC, to electrically coordinate both winches for maximum control over the barges. The operator’s station allows for independent or tandem operation of the winches. In tandem mode, the forward winch pulls rope in while the trailing winch pays rope out under controlled back tension. Winch motor speed is continually monitored by the PLC to eliminate freewheeling or loss July/August 2010
of payout control. Acceleration and deceleration ramps with brake delays are programmed into the system to prevent shock loading of equipment. The system also includes a NEMA 4 vector electrical control enclosure with all appropriate auxiliary equipment for the barge-haul drive control system, transformer, distribution panel and other electrical equipment. Each E-Crane (equilibrium crane) and auxiliary equipment/systems are custom engineered for the customer’s specific application type, production goals and profit potentials. Thus the barge-haul system specifics may vary from application to application, depending also on peculiarities such as the river current speed, water level fluctuations, convoy sizes, space available for unloading equipment, and any harsh environmental conditions. If the infrastructure, environmental issues or other circumstances do not favor a permanent installation, the complete material and barge handling package can be mounted on a floating material handling platform. In this case, E-Crane employs an experienced naval architect and qualified barge builders to assure compliance with all regulations and to assure a high quality, cost efficient offloading solution. The floating material handling platform is the ideal solution where there is little or no existing infrastructure; when environmental issues prohibit the construction of a permanent infrastructure; or if the flexibility of a floating, moveable system is desired. E-Cranes excel and have unprecedented life in applications requiring heavy-duty production cycles and difficult working conditions. They are available in several models with outreach up to 150 ft (45m) and duty cycle capacity up to 50 tons. E-Crane’s unique parallelogram design features a hydraulic pivoting, mechanically linked counterweight that keeps the E-Crane in near-perfect balance at all times. This reduces horsepower consumption and power requirements up to 50%. E-Cranes are available on pedestal, rail, crawler or barge mounts. IP www.inlandportmagazine.com
(Above) 1500 B-Series E-Crane with barge-haul system and hopper engineered and constructed as a turnkey project. (Below) Two opposed winches (upstream/downstream) work in tandem to position one or two 1500m-ton capacity barges.
(Above & below) Control panel and foot pedals in E-Crane cab allow operator to control the barge-haul system while simultaneously unloading barges. A control panel is also mounted at each winch site.
Risk and Rewards
Preparation is the Key to Your Port Surviving a Storm By C. Daniel Negron
Vice President, Thomas Miller (Americas) Inc.
McDuffie barge terminals at Alabama’s Port of Mobile. Ports and terminals are particularly vulnerable to the effects of windstorms by virtue of their location.
his past June, Hurricane Alex became the first named storm of the 2010 hurricane season as it made landfall in northeastern Mexico. The storm, which at its height packed winds of 110 miles per hour, was reported to be the strongest Category 2 hurricane to occur in June since 1966. In its wake, Alex left tornadoes forming over southern Texas and significant flooding in Mexico caused by tidal surges and overflowed river banks. As cleanup and recovery efforts continue, Alex is a sober reminder of the human and financial toll that a significant windstorm event can bring. From 1980 to 2005, windstorms reportedly made up 42% of all recorded natural catastrophes. Although it is common to think of a windstorm as a summer hurricane that affects coastal areas, the term actually refers to storms that occur all around the country, and at all times of the year. Aside from hurricanes, some of the more common windstorms include tornadoes, microbursts and winter gales, all of which occur at inland locations. About 1,000 tornadoes strike the US each year. The funnel-shaped clouds that are the characteristic of these storms tend to occur mostly over a region of the US known as Tornado Alley. This region covers a vast area of approximately 13 mid-western states, from central Texas to North Dakota and from the Rocky Mountains to the Appalachians. Although tornadoes only touch ground over short distances, their violent wind speeds can cause severe damage. In May, an intense tornado touched down at the Seminole Municipal airport outside of Oklahoma City, reportedly ripping off hangar doors, tossing planes several feet, and causing several million dollars in damage to the terminal. Microbursts, unlike tornadoes, are intense downdrafts of air that spread out in all directions when they hit the ground. In July 2009, a cluster of thunderstorms settled over an area near the Griffin Spalding County Airport in Georgia, causing down-rushing air to hit the ground and spread outward rapidly. The resulting microburst tossed several aircraft around, severely damaging them, and caused significant damage to the terminal building. In the eastern US, gale storms known as nor’easters most often form in the winter when cold air from the north clashes with warm air masses that form over the ocean. This results in heavy snowfall and blizzard-like conditions. In March of 1993, a blizzard, commonly referred to as the March Superstorm of 1993, was one of the worst nor’easters in modern times. It caused billions of dollars in damages and resulted in at least 270 deaths.
HOW PORTS CAN PREPARE FOR STORMS Ports and terminals are particularly vulnerable to the effects of windstorms by virtue of their location. Aside from facing the quantifiable losses to property, equipment and income, these operators also face the unquantifiable losses of cargo volumes and customers that move to other facilities. These indirect losses can take many years to recover. For this reason, preparation in advance of an event is critical for a business’ survival. Although property damage gives us the most immediate and graphic evidence of a storm’s destructive power, port operators also face potential liability to others for damages arising from their failure to safeguard against foreseeable harm. As a general proposition, an operator must take reasonably prudent steps to prevent against potential harm or damage to property. In a recent case in 20
Miami, a terminal operator faced multiple claims from cargo owners when the vicinity around his terminal was subjected to severe rainstorms. The cargo owners alleged that the operatorâ€™s failure to take proper safeguards against the storm resulted in water damage to their goods. The PRimary considerations in any emergency situation are the safeguarding of human life and the preservation of infrastructure, equipment and the property of others. These concerns cannot wait until a storm is imminent. They must be addressed long before the event through the preparation of an emergency response plan.
FORMULATING AN EFFECTIVE PLAN An effective plan begins with the naming of an emergency coordinator and the establishment of an emergency response team. The team must establish the precautions to be taken when the threat of a storm becomes imminent, and it must set out the actions to be taken to recover and restart the operation once the storm has passed. An emergency plan is a collaborative effort. It must include business partners, port authorities, landowners, federal and local authorities, and other emergency responders. It must establish the role
that each party will play, and these roles must be reinforced through periodic practice drills. Industry guides are a valuable resource from which practical assistance can be obtained. One example is the manual entitled, Windstorm II Practical Risk Management Guidance for Marine & Inland Terminals, which was produced by TT Club in collaboration with the International Cargo Handling & Coordination Association (ICHCA), an international organization dedicated to the promotion of safety in international trade. This manual contains valuable checklists and other useful information that an operator can use in establishing and implementing effective emergency procedures.
ENSURE THAT YOUR PORT FACILITIES ARE PROPERLY INSURED Finally, the role of insurance cannot be understated. In 2005, windstorm losses are reported to have totaled $185 billion. In spite of this, less than 50% or $90 billion of those losses were actually insured. This left $95 billion in losses to be absorbed by property owners. Although property losses are a prime consideration, a properly structured insurance program will actually protect against both the liabilities and the property dam-
age that a terminal might encounter. Over the past several years, property rates have tended to increase in response to the increase in the incidence of catastrophic losses. As a consequence, there are fewer insurers offering broad cover in areas that are prone to catastrophic losses. The obvious example is coastal areas, where the threat of hurricanes is greater. Liability rates, on the other hand, have not been impacted in the same way, and this cover is relatively easy to find. As we enter another summer hurricane season, we are reminded that we are never in control of the events that nature puts before us. We are, however, in control of the way in which we respond to them. We can certainly hope for the best from nature, but we must undoubtedly prepare for the worst. IP C. Daniel Negron is an attorney with more than 20 years of experience in the transportation industry. He is Vice President of Thomas Miller & Co., the managers of TT Club Mutual Insurance Limited, a specialist insurer to ports, terminal and logistics operators. You can email him at firstname.lastname@example.org.
A Sennebogen 835 A special feeds an auto shredder.
Sennebogen Lifts Liberty Iron W
hile a growing number of recyclers are looking into the idea of switching from diesel to electric drive material handling machines, Marc Olgin has already jumped right in. Olgin is the third-generation part owner of Liberty Iron & Metal Holdings LLC, a family business with over 65 years in the recycling business. Along with the firm’s joint venture partner, Scholz AG of Essingen, Germany, Liberty Iron & Metal Holdings has commissioned new electric drive Sennebogen material handlers for three recycling yards since January 2009. “Electric is the way to go,” Olgin says. And he has no doubt that Sennebogen is the way to go electric. All three of Olgin’s new Sennebogen machines are pedestal mounted 835 A specials (2 C Series & 1 D Series models). Each one is assigned to feed an electrically powered shredder, typically working 55 hours plus per work week. Joe Plumadore, the Operations Manager for Liberty Iron, said, “We prefer to have the scrap handler dedicated to the shredder. As much as we like the mobility of the wheeled 835 M machines for general loading duties, we don’t want to see the shredder units driving off to some other part of the yard. As long as the shredder is ready to go, the Sennebogen will always be ready to feed it.” Olgin knows Sennebogen equipment well. Liberty Iron and it’s affiliated companies have been operating Sennebogen material handlers for nearly seven years and currently operate over 25 Sennebogens at its locations in North America. Along with the green machine material handlers, Olgin also operates one of Sennebogen’s unique Multihandler 305 machines to load scrap into ocean-going containers. The first electric drive machine was commissioned in January to serve an American Pulverizer 60X85 shredder in Chihuahua, Mexico (first machine of its type in Mexico), at its joint venture partners yard, Kalischatarra S. DE R.L. A month later, the second one arrived at Interstate Shredding LLC in Girard (Youngstown), Ohio, where it feeds a Metso Texas 22
Shredder 80X104 auto shredder. The third began operating at Liberty Iron & Metal Southwest LLC in September alongside another Metso Texas Shredder 80X104 shredder in Phoenix, Arizona. All are equipped with 1.25 to 1.50 yard 4-tine grapples on a 66 ft. boom/stick combination. Each stands on a 13’1” pedestal with a high-rise cab providing the operator with a total elevation over 22 feet. Each of these facilities, as well as all its other locations in North America, also operate wheeled Sennebogen machines for loading and sorting applications, bringing the total Sennebogen units to over 25 in North America. “We did look into using an umbilical tether for the electrical connection on a crawler mounted Sennebogen unit. The mobility of the tethered machine made it an interesting option, but we decided the stationary units were the best fit for our application.” Olgin and Plumadore both commented on the added safety features that Sennebogen has added in its D Series models. D Series machines are equipped the new maXCab, which allows safer entry and exit to the cab by way of a sliding door and adjacent catwalk. According to Plumadore, the maXCab climate control systems create ideal working conditions for the Phoenix and Mexico locations, keeping the operators comfortable, alert and productive.
Long-term Profitability “We saw Sennebogen electric drive machines at work in other facilities before we bought our own,” Olgin reports. “We could immediately see the potential savings: reduced maintenance cost, reduced machine wear, reduced parts… the reduced fuel costs are certainly a benefit, but we were sold on electric power by the maintenance savings alone.” Of the three Liberty Iron facilities, Phoenix pays the highest rates for electric power. Olgin expects that the machine will still save him a bundle compared to diesel power. “Depending on the current energy costs at any given time, the savings can be quite dramatic. We ran a comparison of the Sennebogen 835 with electric drive against the same machine with a standard diesel engine. Overall, the electric drive unit showed a saving of more than 70% of the energy and service costs.” “For our analysis, we set electrical power costs at 2 cents/kWh and diesel fuel at $2.00/gal. At those rates, the basic energy cost dropped from $13.00 per operating hour to about $1.92. Maintenance costs were also much less: under half of the service time during the first 2000 operating hours. Altogether, through 2000 hours, the electric drive saved nearly $30,000 per machine.” Joe Plumadore adds that the electric drive also offers an advantage in operator uptime. “The operators can get to work faster. They save time on their daily checks for the engine and undercarriage, and they don’t need any breaks to refuel.” With this investment, Marc Olgin feels his operations are in a good position for the coming rebound in the economy. “We see the business stabilizing right now. This equipment ensures that we will be ready to handle higher volumes competitively in the long term, with the highest uptime and the lowest possible operating cost.” IP July/August 2010
Alabama Port Authority Partners with Panama Canal
anama Canal Authority (ACP) Administrator/CEO Alberto Alemán Zubieta and Alabama State Port Authority (ASPA) Director/CEO James K. Lyons recently signed a Memorandum of Understanding (MOU) to jointly help foster commercial activity between the two entities. The MOU will increase cooperation, such as joint marketing and coordination on modernization and expansion projects, and help boost trade along the increasingly important “All-Water Route,” the route from Asia to the U.S. East and Gulf Coasts via the Panama Canal. This arrangement is renewable on a two-year basis. “This alliance is an example of the ACP’s strategy to forge partnerships with U.S. ports to promote the ‘All-Water Route,’ through the Panama Canal. These alliances will help improve services for our customers, generate commercial activity and foster economic development,” said Mr. Alemán Zubieta. “As the global economy recovers, we must continually pursue smart business partnerships. The exchange of ideas and information-sharing demonstrate our desire to execute solutions for the long-term growth needs of the shipping community and international trade.” As the Panama Canal undergoes its historic expansion, which will double the waterway’s capacity and allow more traffic and the passage of longer and wider ships, the ASPA embarked on port improvements 24
to capture the anticipated traffic growth. So far, ASPA has completed a $300 million (USD) container terminal in partnership with APM Terminals North America, a subsidiary of Maersk, and CMA CGM. Work began last year on a new turning basin in the lower harbor that will allow vessels, in excess of 900 feet in length, to access the Port’s deeper draft terminals. The Port is also constructing an intermodal rail facility to capitalize on the Port’s five Class I railroads and to expand the Port’s transportation reach into mid-west and southeast U.S. markets. “We view Far East trade through the expanded Canal as most significant for both our port and our state,” said Mr. Lyons. “The expansion will increase traffic, as well as accommodate larger vessels, currently serving Asian trade lanes.” Panamanian Ambassador to the United States Jaime Alemán also expressed his support for the agreement. “I’m extremely happy to see the MOU between the ACP and the Alabama State Port Authority,” said Ambassador Alemán. “I also hope that this will be the beginning of a long-lasting relationship not only between the Port and the ACP, but also among our business communities, both of which stand to gain a lot as a result of this agreement.” The MOU between the ACP and the ASPA may also include market studies www.inlandportmagazine.com
exchange and technological interchange of advanced capabilities and programs. The partnership launch reinforces the mutual commitment to excellence in service and to continued measureable benefits for both Panama and Alabama. The Alabama State Port Authority, headquartered in Mobile, Ala., owns and operates the State of Alabama’s deepwater port facilities. The Authority’s container, general cargo, bulk, and heavy lift terminals have immediate access to two interstate systems, five Class 1 railroads, four-day rail service to Mexico and nearly 15,000 miles of inland waterway connections. The Port of Mobile, which is ranked 9th largest port in the nation in terms of tonnage and 10th in terms of imports and total domestic trade, provides the area with 570 direct jobs and revenue of $10 billion for the local economy of Alabama. Learn more at www.asdd.com. The Panama Canal Authority is the autonomous agency of the Government of Panama in charge of managing, operating and maintaining the Panama Canal. The operation of the ACP is based on its organic law and the regulations approved by its Board of Directors. For more information, please refer to the ACP’s Web site: www.pancanal.com. You can also follow them on Twitter: twitter.com/thepanamacanal. IP July/August 2010
Port of Mobile Putting Barnhart Crane to Work B
arnhart Crane & Rigging and the Alabama State Port Authority officially named the Port of Mobile’s new 400-ton capacity heavy lift barge crane during a vessel dedication ceremony held this week. Leadership, partnership, place, and capability all influenced the crane’s name – Big Al. “Alabama was home to Barnhart’s first branch office when the company expanded beyond Tennessee, and our partnership with the Port Authority allows us to build upon the company’s success,” said Chris Teague, director of marketing. Since then, Barnhart’s president, Alan Barnhart, helped drive the company’s expansion in twelve states. “When it came right down to it, we wanted the crane’s name to reflect the high capacity of crane’s capabilities, emphasize our commitment to Alabama and honor Alan’s contributions to that growth,” said Teague. Moments later, Teague announced that Big Al was now at work in the Port of Mobile. Jimmy Lyons, director and chief executive officer for the Port Authority echoed praise for Barnhart’s commitments in Alabama and noted, “Big Al and Barnhart’s network of services can be counted upon to be here in the port when needed. Since the crane’s arrival in late May, Barnhart has already completed several lifts at our terminals and two local shipyards. This new and much needed capability will allow all of our port users to pursue efficient and cost effective specialty lift services.” Big Al will accommodate most vessels and is capable of discharging cargo up to 400 short tons from mid-ship to barge, shore, rail, truck, or specialized carrier. In addition to providing the floating crane, as one of the largest heavy lifting and heavy transportation companies in the United States, Barnhart will also be able to provide turnkey heavy-lift services from ship to site. Barnhart Crane & Rigging, established in 1969, is a leading national supplier of heavy lifting and transportation solutions, and operates its Memphis Heavy Lift Terminal featuring 1,250 Ton derrick crane. The company, with 23 locations across the United State also provides logistics, machinery moving and plant relocations. Barnhart’s Quality Management System is certified to the ISO 9001:2008 international standard and has been registered since 2000. The Alabama State Port Authority owns and operates the State of Alabama’s deepwater port facilities at the Port of Mobile, currently ranked ninth largest US seaport in total volume. The Authority’s container, general cargo and bulk facilities have immediate access to two interstate systems, five Class 1 railroads, and nearly 15,000 miles of inland waterway connections. IP July/August 2010
Northeast to the Nation Strategically located on the banks of the Monongahela River, adjacent to two railways and two highways, Three Rivers Marine & Rail Terminals is an intermodal transportation hub – and much more. Offering direct connections between river, road, and rail, Three Rivers also provides stand-alone and value-added bulk materials supply and service. Our combined capabilities give us the power to develop customized, seamless solutions that address diverse and complex customer needs – from warehousing and packaging to on-demand delivery of ice melt, landscaping, and other products. TRANSLOADING CONTRACT PACKAGING TRUCKING LANDSCAPE PRODUCTS ICE MELT
THREE RIVERS 3riversmarineandrail.com
marine & rail terminals
New Web-Based Service Platform for Marine Terminal Operators P
ortVision, a leading provider of business intelligence solutions for the maritime industry, today announced the world’s first web-based service platform that integrates vessel tracking, management and analysis in a single, convenient operational dashboard for marine terminal operators. The TerminalSmart solution gives terminal operators access to PortVision’s comprehensive database of both real-time and historical vessel movements based on AIS vessel-tracking data, and combines it with powerful management, analysis and reporting tools to enhance terminal operations. Unlike stand-alone AISbased tracking tools that simply display dots on a map to represent current vessel locations, TerminalSmart is a comprehensive real-time and historical vessel tracking, management and analysis platform. Based on PortVision’s proven maritime intelligence platform, TerminalSmart has been configured and optimized to meet the specific needs of marine terminal management. Terminal operators can use TerminalSmart to streamline vendor and resource management, handle all traffic scheduling, dispatch and management, perform integrated demurrage reporting and analysis, and accelerate and improve incident response – all from a single, comprehensive, web-based solution. “Marine terminal operators are under more pressure than ever before to improve efficiency, reduce costs, and enhance their visibility into every aspect of the increasingly complex terminal environment,” said Dean Rosenberg, chief executive officer with PortVision. “TerminalSmart not only delivers all necessary information about current and historical vessel locations and events, but also provides all of the tools to leverage that information for business intelligence and analysis, critical decision-making, and comprehensive, integrated operational reporting,” Rosenberg added. “Plus, TerminalSmart is the only maritime intelligence platform that gives terminal operators 26
access to PortVision’s comprehensive database of vessel information -- we currently process over 40 million vessel location reports every day and our data warehouse contains 10 billion arrival, departure, passing, and vessel movement records.” TerminalSmart enables operators to view real-time and historical information about the activities of every AIS-enabled vessel in PortVision’s covered service regions – including most major US ports and
regions and over 50 international ports. TerminalSmart users can define their own customized fleets of chartered vessels, workboats, tugs, and barges, they can receive and share e-mail and text-message alerts about fleet movements, and they can access historical data and animated playback for any selected vessels and events. This enables terminal operators to streamline vendor and resource management, and to incorporate vessel locations and movements into their current traffic scheduling dispatch and management practices. They can use TerminalSmart’s special command-and-control display to streamline tasks related to scheduling labor and other resources for just-in-time deployment based on current vessel locations, dock availability and in-transit traffic conditions. They also can define their own filters, views and fleets to further enhance efficiency and productivity. These and other capabilities also enable terminal operators to perform integrated www.inlandportmagazine.com
demurrage reporting and analysis within a single, integrated dashboard environment. TerminalSmart automatically timestamps and captures data about arrivals, departures and other vessel events, and allows users to add their own documents and information about dock-side events for each vessel call. TerminalSmart’s detailed information can be used to verify demurrage claims and produce the required documentation for supporting or disputing demurrage claims. Individual customers have documented over $1M in annual savings through the use of these features. Finally, TerminalSmart can also be used to manage all aspects of on-water incidents or events. Operators can view realtime vessel traffic in a single, convenient command-andcontrol display environment, gain access to every aspect of an actively managed incident in user-defined safety zones, and share real-time information and reporting with remote participants and other operation center to drive compliance and create incident reports. Based in Houston, PortVision provides enhanced levels of knowledge and transparency to maritime activities within ports, inland waterways, and oceans. The Webbased service provides real-time visualization and historical reporting through a data warehouse that processes and analyzes over 40 million vessel movements each day. PortVision records all vessel arrivals and departures in covered service regions and can be configured to automatically alert users when events of interest occur. Historical playback and reporting features offer expanded opportunities to increase safety, security, efficiency, and market intelligence. PortVision subscribers include users from all major oil companies, large and small marine service companies, terminals, fleet owners, port authorities, and government agencies. Based in Houston, Texas, PortVision is a service of Airsis, a San Diego-based technology company. IP July/August 2010
Colbert Joins IP Editorial Board O
ne of Inland Port Magazine’s strengths is our Editorial Advisory Board. We count on the best and brightest from all corners of our industry to help ensure we are covering the hotbutton topics affecting each segment. To that end, IP welcomes Debra A. Colbert to our board. Debra has served the maritime industry for nearly 20 years. She currently works for Waterways Council, Inc. (WCI), managing its communications and media relations program. Prior to that, she launched the communications activities of Waterways Work!, WCI’s predecessor organization. She also served as Director of Public Affairs for the American Waterways Operators (AWO), from 1992 to 1995. Debra also serves as President/CEO of Colbert Communications, a communications consulting firm that offers media relations, public relations, public affairs, marketing and advertising counsel to a variety of clients, primarily maritime and transportation. She has also worked in communications and public affairs for the Aerospace Industries Association, and the Telecommunications Industry Association in Washington, DC. Debra resides in Silver Spring, Maryland, with her husband, two sons, and two unruly dogs. We’re glad to have her aboard. IP
IP Bookshelf Managing the Waterway: Electronic Chart & Nautical Reference Library By Mark & Diana Doyle $39.95 from Seabreeze Books and Charts In 2005, NOAA and the US Army Corps of Engineers began distributing raster and vector charts for free. The 2010 edition of Managing the Waterway provides a tremendous library of official publications and charts for US waters, in a compact package. There are also tens of thousands of pages of nautical reference material available free on the Web. However, collecting and maintaining a complete nautical e-library is extremely time consuming. Whether you already own e-charting software and only need updated charts and reference materials, or you’re a newbie who wants free software and charts to test the e-charting waters, this two-DVD set is the answer. The US raster and vector charts are cataloged and organized into popular cruising geographies. Chart files are standard BSB (raster) and S-57 (vector) charts provided by NOAA and the US Army Corps and display in all computer-based navigation packages that support these formats. The Nautical Reference Library (updated annually) now includes over one gigabyte of government publications, reference texts, and nautical calculators in searchable Adobe Acrobat PDF or HTML web browser formats (Mac or PC). IP July/August 2010
Port of New Orleans to Streamline FTZ Approval T
he Port of New Orleans will have more flexibility to use its Foreign-Trade Zone (FTZ) to lure new cargo and businesses because it has successfully applied for a program that streamlines the process for approving FTZ sites. This is expected to help promote the flow of several commodities, such as copper, aluminum, zinc, steel and coffee, which are already stored in FTZ warehouses and distribution sites in metro New Orleans. The new FTZ program can also be used by economic development officials to help attract new distribution and manufacturing operations to metro New Orleans. The Foreign-Trade Zones Board, an independent agency housed within the Department of Commerce, has approved the Port’s FTZ for its new Alternative Site Framework program. The Alternative Site Framework allows existing companies and any new companies that locate within Orleans Parish, Jefferson Parish, and St. Bernard Parish to secure Foreign-Trade Zone status for warehousing and distribution operations within approximately 30 days from the time an application is accepted for filing. Without the Alternative Site Framework, increasing the size of an existing FTZ site or establishing a new one takes about 90 days. “New Orleans is a great place for warehousing and distributing cargo because of the Mississippi River and the superb transportation network that is rooted here,” said Gary P. LaGrange, President and CEO. “Private industry has benefited from our Foreign Trade Zone for over six decades. With the Alternative Site Framework, we can be more responsive to the needs of businesses as they seek to take advantage of these benefits.” The Port of New Orleans administers the second-oldest Foreign-Trade Zone in the United States. FTZ No. 2 was established July 16, 1946. It is now the first FTZ in Louisiana – and one of the first in the nation – to be approved for the Alternative Site Framework program. “As a company evaluates sites for expansion or relocation, one important factor that it should consider is how to manage its supply chain from the new location,” said Michael Hecht, President and CEO of Greater New Orleans Inc., a regional economic development organization. “A Foreign-Trade Zone is one tool that can help reduce logistics costs and improve a company’s bottom line.” The Port’s General Purpose FTZ is spread out on 63 sites throughout Orleans, Jefferson and St. Bernard Parishes. The New Orleans FTZ includes 824 acres of warehousing and distribution facilities. Additionally, there are six manufacturing FTZ subzones, including three refineries, 28
two shipyards and an oil drilling materials manufacturer. FTZ designation is often required in order for a Port or warehouse to handle cargo traded on an exchange, such as the copper and aluminum traded on the London Metal Exchange that is shipped to the Port of New Orleans. A Foreign-Trade Zone is a duty-free zone established by the Department of Commerce to spur business by eliminating or delaying duty collections. When cargo enters a Foreign-Trade Zone warehouse or manufacturing plant, it’s as though that cargo hasn’t entered the US and it is not subject to the duties that US Customs and Border Patrol would normally collect. The cargo can be warehoused or processed at the FTZ site and shipped to a foreign country or another FTZ site without ever incurring US duties. If the products are stored in a FTZ and later distributed to another location in the nation, they enter US commerce and are subject to duties at that time.
AAPA Hosts Annual Port Security Seminar
To better enable seaports and their maritime partners to manage today’s complex security issues, the American Association of Port Authorities (AAPA), in cooperation with the Port of New Orleans, held its annual Port Security Seminar in July at the Hilton New Orleans Riverside. Among the topics discussed were port policing and law enforcement challenges, crime scene management, issues surrounding the new Transportation Worker Identification Credential, federal port security policies and legislation, and emerwww.inlandportmagazine.com
gency preparedness. The program featured special sessions on disaster recovery and resiliency planning, including a presentation by US Coast Guard Rear Admiral Mary Landry—commander of the Eighth Coast Guard District headquartered in New Orleans—on the oil spill recovery efforts in the Gulf of Mexico. The seminar’s keynote speaker, Michael Balboni, principal of Navigator Global, formerly served as New York’s deputy secretary of public safety, with dayto-day responsibility for managing homeland security affairs, law enforcement and emergency preparedness and response, overseeing 63,000 employees and a budget of $5 billion. “Safe and secure seaport facilities are absolutely fundamental to protecting our citizens and national borders, and for moving the goods we all depend on every day,” said Kurt Nagle, AAPA’s president and CEO. “AAPA and its member ports collaborate with both government officials and private-sector security experts to maintain and enhance seaport security.” According to Gary LaGrange, the Port of New Orleans’ president, ensuring the integrity of the supply chain requires a concerted effort by ports, federal, state and local law enforcement agencies, and maritime industry stakeholders. “Protecting ports from both natural and man-made disasters is an increasingly complex issue. Conferences like this one help protect our ports by coordinating the efforts of all the parties who have a stake in keeping commerce flowing,” said LaGrange. IP July/August 2010
NGA Charts Without a Home, Waterway Safety Suffers By Ann Kinner, USCG Licensed Master, Vice President & General Manager of Seabreeze Books and Charts
he maritime community is in peril of losing access to a significant source of navigation information. By law (10 US Code 442 & 455) the National Geospatial-Intelligence Agency (NGA) is mandated to â€œimprove means of navigating vessels of the Navy and the merchant marine by providing, under the authority of the Secretary of Defense, accurate and inexpensive nautical charts, sailing directions, books on navigation, and manuals of instructions for the use of all vessels of the United States and of navigators generally.â€? The code further states that NGA is to offer these materials for sale to the public, which NGA has done recently through the distribution channels of the FAA. As of April 30, 2010, the FAA has discontinued distribution and sale of all NGA products. NGA has not yet found an alternative distribution agency. The actions which brought this about were taken with very little public input, either from chart agents or from representatives of the broader maritime community. Many of the people involved in the decisions have virtually no understanding of the maritime world, and the decisions made were not reviewed in the context of either economic or safety consequences. As a long-standing chart agent, and a professional mariner, I have a more-than-passing interest in these developments. Please consider the following points. Cost: NGA continues to update existing charts and to generate new charts for non-US waters. Taxpayers are footing the bill for this process, whether we have access to the charts or not. US charts are currently priced at $20.75 each for five-digit numbers and $12.75 each for the W-series of world planning charts. The only viable alternative is British Admiralty charts at a cost (in my area) of $46 to $48 each, regardless of scale. Coverage: The Admiralty catalog is sadly lacking in certain areas, particularly Central and North America. I deal daily with vessels operating between San Diego and the Panama Canal, as well as throughout the Caribbean. There are other areas across the Pacific which suffer from the same shortage of detail in the Admiralty catalog. It was suggested that mariners could secure charts from the various countries with coastal access. However, many countries do not have hydrographic agencies, and within those that do, the charts are often not readily available. It makes no sense that the mariner needs to enter the port in order to obtain charts of that port from the local agency. The hazard is in the approach. Regulatory: Many of the vessels I serve are inspected by the Coast Guard and required to carry specific documents, as well as paper charts for their areas of operation. This includes locallybased sport-fishing boats carrying passengers into Mexican waters and further south, as well as large commercial fishing vessels operating in the Western July/August 2010
Pacific, and numerous research vessels from institutions such as Woods Hole Oceanographic Institute, Scripps Institute of Oceanography, and even NOAA vessels. Forcing these vessels to shift to Admiralty charts will create a significant financial burden, as well as limiting the navigation information available to them in many of their operating areas. Safety: While many vessels now carry electronic navigation tools, and while GPS is more and more prevalent, all electronic systems are subject to failure. Failure can result not only from on-board events, but also from system-wide events. All of these systems rely on a satellite network that is itself subject to failure. If the satellites fail, or if signals are disrupted by outside forces, then on-board electronic navigation is no longer useful. Paper charts need no batteries. Paper charts require no special installation or operation. Paper charts have been the basis for safe navigation for centuries and will continue to be the ultimate back-up navigation tool regardless of the so-called advances in digital charting. Given the cost and complexity of most digital charting systems, and dedicated chart plotters, it is
a reasonable assumption that, particularly within the recreational boating fleet, most vessels do not have electronic charts and continue to rely on paper charts of one form or another. It is telling that I recently was asked to duplicate a 20-year library of paper charts which had been destroyed in a shipyard fire aboard a 280-foot commercial fishing vessel. The vessel has funds to purchase the most sophisticated electronics available, and still insisted on a complete inventory of paper charts and printed publications. It is also the case that every superyacht that travels the oceans has on board paper charts for any possible port of call. There are probably other issues with respect to loss of access to NGA charts, but I believe safety is key. The maritime community needs to be alerted to this loss of critical data. The maritime community needs to speak up to those government agencies that: (a) brought about this gross disservice, and (b) can reopen the distribution channels so that these mandated NGA charts and publications are once again readily available to all who need and want them. IP
Industry Notebook The Kentucky Soybean Board recently became a member organization of the Soy Transportation Coalition (STC). Kentucky is the ninth state soybean board to join the STC. The Kentucky Soybean Board decided to join the STC at their July 30th meeting. Gerry Hayden, a producer from Calhoun, KY, will be the organization’s representative to the STC board. The Kentucky Soybean Board’s membership will formally take effect on October 1, 2010, the start of the 2011 fiscal year. “I am looking forward to being the Kentucky Soybean Board’s representative to the Soy Transportation Coalition,” Hayden explains. “Kentucky producers depend on having a quality transportation system for our ultimate profitability. Our infrastructure – whether locks and dams, highways and bridges, or our rail network – is in significant need of modernization and investment. Farmers therefore need to be active in promoting a transportation system that continues to allow U.S. agriculture to be competitive in an increasingly global economy.” Dean Campbell, Chairman of the STC, says, “The board of directors of the Soy Transportation Coalition welcomes the Kentucky Soybean Board as a sponsoring organization. Farmers increasingly realize the health of our industry is strongly impacted by the transportation system that delivers what we grow to our eventual customers. Kentucky’s participation will enhance our influence as an organization. We look forward to working with Gerry in the months to come.” For more about the STC, visit soytransportation.org. In US Army Corps of Engineers news, Mississippi Valley Division Commander and Division Engineer Michael J. Walsh – who also graces this issue’s cover – was promoted to Major General. Walsh received his second star in a ceremony at Corps Headquarters, hosted by Lieutenant General Robert L. Van Antwerp, the Corps’ Commanding General and Chief of Engineers. Colonel Byron Jorns has joined the Office of the Assistant Secretary of the Army (Civil Works) as Executive Officer. He previously served as commander of the Mobile District. Colonel Steven Roemhildt assumed command as the 50th District Commander in the history of the Mobile District. Prior to this assignment, he served as Deputy Commander for the Transatlantic Division since July 2009. Colonel Thomas P. Smith transferred command of the Memphis District to Colonel Vernie Reichling. Colonel Smith’s next assignment is at Corps Headquarters, where he will be in charge of Operations. Colonel Reichling previously served at the Pentagon where he was the Army’s Division Chief for Leader Development in Operations, Civil Affairs, and Advanced Concepts. Col. Michael J. Teague assumed command of the Tulsa District from Colonel Anthony Funkhouser. Colonel Funkhouser will take command of a Corps of Engineers District in Afghanistan. Most recently, Col. Teague was the Third Army/U.S. Army Central Engineer responsible for all Army construction throughout the Middle East and Central Asian States. Louisiana Governor Bobby Jindal joined Transportation Consultants Inc. (TCI) Founder and CEO Jack Jensen, New Orleans Mayor Mitch Landrieu, Port of New Orleans President and CEO Gary LaGrange, and Entergy New Orleans President and CEO Charles Rice to announce TCI will use new pellet packaging equipment and increased rail capacity to expand its container traffic capabilities at the Port of New Orleans. TCI’s expansion is the second phase of a project that began in 2009, with the first phase representing a capital investment of approximately $10.4 million and the second phase representing a capital investment of $3.2 million. 30
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The first phase will retain 62 jobs and 45 owner-operated truck driver positions. The second phase will create 60 new, direct jobs at an average annual salary of nearly $48,000, plus benefits. Louisiana Economic Development estimates the second phase will also create 20 new, indirect jobs, and generate $3.6 million in new, state tax revenue and $1.6 million in new, local tax revenue over the next 10 years. “TCI’s expansion will improve the company’s ability to capture additional container traffic that would have otherwise gone to out-of-state ports and, at the same time, the expansion will strengthen the competitiveness of the Port of New Orleans,” said Gov. Jindal. “Most importantly, this announcement means that yet another Louisiana-based company is growing within our borders and we’re creating and retaining good jobs for our people so they can pursue their dreams right here at home. This increased investment is also proving that business leaders are taking advantage of our healthy business climate, and they are recognizing the growth opportunities available in New Orleans and in our state.” “This project is about investing in our port industry in New Orleans,” said Jensen. “The $13.6 million investment will keep TCI and its 120 jobs in New Orleans for a long time to come. Without the Port of New Orleans, the New Orleans Public Belt Railroad, Entergy, the Mayor and Gov. Jindal’s commitment to this project, we could not collectively increase international container traffic at the port.” “TCI’s relocation and expansion will bring new jobs, new tax revenue and a growing, diversifying business to New Orleans,” said Landrieu. “We are pleased to welcome companies like TCI to the city and will continue to aggressively pursue good-paying jobs for our residents.” To help secure the second phase of this project, LED committed $0.5 million from the Enterprise Zone Program and $0.4 million from the Economic Development Loan Opportunity Program. TCI will use the financial assistance to build a rail spur connected to the New Orleans Public Belt Railroad, which will enable the company to handle plastic pellet shipments from Louisiana’s chemical manufacturers that are currently being sent to the Port of Houston by rail. These shipments will now be packaged at TCI and shipped out of the Port of New Orleans, reducing the time it takes to get these shipments to market and increasing pellet container volumes. For the first phase, TCI used Gulf Opportunity Zone bonds and New Markets Tax Credit to begin construction on a container terminal and warehouse facility at the current site. “This investment gives the local transportation sector the tools to handle chemical products more efficiently,” said LaGrange. “It also allows Louisiana to maximize the economic impact of these home-grown products. Plastic pellets will continue to generate jobs and economic activity for the state, even as they move down the Mississippi River and are shipped to buyers around the world.” “We’re delighted to work with the port and LED to help ensure TCI’s expansion is successful,” said Rice. “This project is an excellent example of the growth opportunities available in the trade and logistics sector in New Orleans.” Transportation Consultants Inc. is a full-service logistics and warehousing services provider specializing in container yard services, intermodal transportation and international logistics consulting. The Tri-City Regional Port District in Illinois recently received a $6 million TIGER Grant, and also broke ground on its South Rail Loop. Grants for Transportation Investment Generating Economic Recovery Program (TIGER) are a part of the American Recovery and Reinvestment Act (ARRA). In September of 2009, the Tri-City www.inlandportmagazine.com
Regional Port District (TCRPD) applied to receive one of these grants in order to help fund construction of a major Intermodal Hub. This comprehensive project proposed construction of a new inland waterway barge harbor and connecting rail lines designated as the South Rail Loop. This grant will fund both the South Rail Loop and 10 required Levee Relief Wells, integral elements of the overall Intermodal Hub project. Approximately 9,600 track feet will be laid during the project. The Tri-City Regional Port District has been celebrating its 50th anniversary this year. Joe Schuler is closing out a successful year as Chairman of the Board, and handing that spot over to Dr. Charles King, Jr. “First, please let me say that it has been my complete honor working with you for the last year,” said Schuler. “I have had the opportunity to participate in many new developments for our area such as the opening of the $300 million Abengoa ethanol plant, a new US Army Reserve Center, and Arizon, Airgas and Riley concrete plant all calling River’s Edge home. I marvel at this amount of investment during a time during which our economy hit a low point, and am thankful for the many partners in the community that made these new developments a reality. I want to congratulate Dr. King on assuming my duties as Chairman of the Port. Chip is our longest-serving active member of the Board and I know that he is excited about and is definitely looking forward to his year as chairman. “I especially want to congratulate Executive Director Bob Wydra on his retirement. Bob has been at the Port since 1982 and was responsible for making the Port District the economic engine that it is. Without Bob’s expertise, guidance and vision, the Port District would be nowhere near where it is today. Replacing Bob as Executive Director is Dennis Wilmsmeyer. Dennis has been at the Port for over 11 years and is excited to be accepting his new role. “Finally, we welcome Tyrone Echols, mayor of Venice, back to the board. Tyrone previously served on the Board from 2002 to 2007. He is well aware of the Port’s operations and will bring his experience to our team as we continue our mission of economic development.” Columbus, Ohio based warehouse and distribution provider, Spartan Logistics, announced Steve Harmon will be assuming leadership of the company, as his father, Ed Harmon, steps down after 22 years of running the company. “My father founded Spartan in 1988, and has been an outstanding leader in the community, to our customers, and to our employees ever since. His vision and drive built Spartan into a top warehouse and distribution company in Ohio. I am honored to come in to this leadership position and continue serving our company, customers and employees. I will strive to continue providing quality service and valueadded contributions for our customers. This focus on helping our customers has elevated Spartan to where it is today as a leader in the Ohio warehouse and distribution industry, and I will maintain this caliber of excellence.” Gretchen Bonfert recently joined Hanson as the manager for Gulf Coast initiatives, establishing a presence in New Orleans for Hanson. She serves as a liaison for environmental and engineering consulting needs in the Gulf Coast region, working with federal, state and local agencies and organizations. She combines an understanding of the diverse communities working on the restoration of coastal Louisiana with a systemic perspective on the Mississippi River. Bonfert will bring critical value to Hanson’s Gulf Coast program and experience working on disaster recovery and hurricane protection. IP July/August 2010
Carmanah/Sabik Lanterns Support Spill Efforts in Gulf C
anada’s Carmanah Technologies, through its partnership with Sabik Oy, is providing Carmanah/Sabik solar LED marine lanterns for marking oil spill containment booms in the Gulf of Mexico. The lanterns are helping to keep marine traffic safe while containment and cleanup work continues in the area. Through the efforts of Carmanah’s authorized marine distributor in Texas, several hundred white and yellow Carmanah/Sabik Model 502 and M650 solar LED marine lanterns ( http://bit.ly/cuQ1Iv) have already been deployed to mark areas such as open bays and waterways where the presence of containment booms poses a risk to navigational safety. Carmanah is working with its Houstonbased manufacturing partner to fast-track production and delivery of several hundred additional lights in the coming days. Carmanah has a history of responding in times of crisis, most notably in the wake of Hurricane Katrina in 2005, when all production was diverted to supply self-contained, self-powered solar LED lighting solutions to keep road, air and marine traffic along the Gulf Coast moving safely while rebuilding efforts were underway. “Our customer had tried and abandoned a battery-powered marking light due to performance issues and ongoing maintenance requirements. They asked us to provide a maintenance-free, cost-effective alternative that could be trusted to perform reliably in a range of operating conditions,” said Carmanah distributor Jeff Sandel, Vice President of Laporte, Texas-based Channel Safety and Marine Supply. “Our years of working with Carmanah, and Carmanah’s reputation as a trusted supplier of aids-to-navigation lighting to the U.S. and Canadian Coast Guards, tell us that the Carmanah/Sabik solarpowered LED marine lanterns will deliver on all accounts.” “With all available resources in the Gulf focused on containment and cleanup, this is no time to worry about whether or not the lights are working, or to be expending valuable manpower to change bulbs or batteries,” said Carmanah CEO Ted Lattimore. “The combination of solar power and LED technology in our marine lanterns means they can be trusted to perform day after day, year after year, leaving our customers free to concentrate on the job at hand.” Carmanah/Sabik has also received an additional order for solar LED marine lanterns to mark intracoastal waterways as a result of the Gulf oil spill. The order, placed through American Fire & Safety, the Carmanah/Sabik authorized distributor in Louisiana, is for one thousand yellow Carmanah/Sabik M650 solar LED marine lanterns. The lights will be used to mark pilings along the Gulf Intracoastal Waterway from Texas to Florida and will help improve navigational safety in areas of increased inland waterway traffic. In addition to improving safety along the Gulf region’s inland waterways, Carmanah/ Sabik lanterns are also helping keep marine traffic safe along the Gulf Coast while oil spill containment and cleanup work continues there. Thousands of white and yellow Carmanah/Sabik Model 502 and M650 solar LED marine lanterns have been deployed to mark areas such as open bays and waterways where the presence of containment booms poses a risk to navigational safety. Featuring a simple on-board programmable interface, convenient USB connection, replaceable battery pack and intelligent deployment capability, the self-contained, selfpowered M650 solar LED marine lantern provides up to four nautical miles of visibility making it ideal for lighting ports, harbours and marinas; marking obstructions and nautical hazards; or illuminating aids to navigation in all types of environments. Recently awarded standing offers by the Canadian Coast Guard for 1.5 and 2 nautical mile applications, the Carmanah/Sabik M650 has been enthusiastically received by the marine aids-to-navigation market since the product’s mid-2009 launch. Incorporating an efficient optical design and a peak intensity of 44 candela the M650 solar LED marine lantern includes more than 256 flash patterns, and is available in all IALA marine aid-to-navigation light colours. With no bulbs to wear out and a replaceable/recyclable battery pack, the LED-equipped M650 can operate maintenance-free for up to five years. IP
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The Last Word
Mike McQuillan Vice President, Hanson Professional Services, Inc. How did you become involved in this industry? I have been involved in the maritime industry since sailing as a deck officer on tankers and general cargo ships over 35 years ago. I have always enjoyed the diversity the industry offers and in particular the terrific people that seem to be drawn to this type of work. I have been fortunate enough to be engaged in many varied parts of the maritime industry including; management of ocean and inland carrier operations, stevedoring and terminal management, refining process industry logistics and business development. Business Development exposed me to other industry dependent on transportation and weighted toward the marine side. My merger and acquisition responsibilities during this period exposed me to financial modeling and project finance, as well as change agent activity, be it startups, shutdowns, or turnarounds of related businesses. It was because of the broad exposure to many business challenges that I decided to get into consulting in the mid-90s. The diversity I enjoy continues daily and I never stop encountering special consulting requirements that draw on skills acquired over many years. During my consulting years I had two client engagements that evolved into two years of exclusive relationships. These opportunities with the Port of Shreveport-Bossier and Osprey Line LLC, a Kirby Inland Marine affiliate, developed from their need to make changes in ongoing business. These relationships were very fulfilling and professionally challenging. My recent entry into the Hanson Professional Services’ family actually developed from a threeyear relationship exchanging consulting services between us on many different projects, most notably the Alabama Freight Mobility Study. This project was very satisfying for me as it linked my expertise in container-on-barge with my container terminal management background. During these Hanson engagements I had the pleasure to meet many of their senior managers. At the start of this year Hanson offered me the opportunity to formally join the organization. At this stage of my career it affords a whole new level of professional challenges and internal resources to work with. The people and the demonstrated teamwork are the reason I’m here. What exciting things is Hanson working on? We are working on a strategy for growth for our ports and harbors practice to take advantage of our team strengths and strong marine business expertise. Some of this includes new multi-modal efforts, custom marine business solutions, and the targeting of increased coastal port work to complement our strong inland profile. We are having some significant success in all areas since implementing this strategy. Hanson was recently awarded MoDOT’s project the Missouri River Freight Corridor Assessment & Development Plan. The project is focused on freight development and improved reliability on this important transportation and economic development artery of the State of Missouri. We are also doing more custom work, including economic impact analysis, rolled into our traditional port activity.
A Revealing Look at Industry Leaders
What was the favorite project or assignment you’ve been involved in during your career, and why? The most satisfying and favorite project was the role I played in the creation of a one-of a-kind automated marine terminal for handling bag cargo moved into the famine relief markets worldwide. It was known as Omniport, Houston and involved new technology and an entirely new approach to logistics management. It took four years to develop, finance, build, and startup and I played a role in all of these elements. The greatest learning experience came from applying my graduate school skills to the project finance effort. I think I earned a PhD from the sweat and travel the effort took. No end to the banker’s question, “what’s a stevedore?” What was your least favorite? I worked in Houston for a New York-based ocean container carrier. The company declared bankruptcy, closing immediately. A New York clerk, an hour ahead of us, called to tell me they were told “don’t come back tomorrow.” After confirmation, I had to tell everyone working for me they didn’t have a job anymore. What’s the last song that played on your CD or MP3 player? Bob Seger’s “Main Street.” Being from Detroit, I know what he’s talking about. What accomplishments are you most proud of? Professionally is easy. I feel like I have been lucky to mentor many people that remain great friends and business colleagues today. Personally, my greatest accomplishment is, with my wife, guiding our children to be good citizens with integrity and respect for others. If you could go back and tell your teenage self one thing, what would that be? Don’t follow the crowd. Pause and think for yourself. Without naming names to protect the innocent (or guilty), what is the single most unbelievable thing you have seen happen on a project in your career? A Venezuela acquisition I was working gave me a new perspective on travel and political risk. While in Caracas I awoke at 4 am to explosions outside my hotel. Thinking it was a gas utility explosion and being awake I flipped on CNN to find out a coup was taking place. After being stuck for days with a colleague of mine locked down in the hotel, we finally got to an airport in chaos with many armed and nervous soldiers thinking anyone getting on a plane was a coup conspirator. We finally got a flight out, learning cash is king. What do you want to be when you grow up? A trombone player – just love brass sections in a group. Tell us something no one knows about you. I am very uncomfortable with crowds and do just fine in a remote campground in peace and solitude! www.inlandportmagazine.com
If you could make those in power at the local, state, and federal levels understand one thing about the inland port and waterways industry, what would it be? Investment in the entire inland system, not just a structure, is how the real benefits to the country should be measured. If you make the general public understand one thing about the inland ports and waterways industry, what would it be? The quality of life in this country would deteriorate significantly without the capability and transportation value received from the water industry. What are your favorite? Movie: On the Waterfront, with Marlon Brando – “I coulda been somebody” Book: Getting to Yes, by Roger Fisher & William Ury. It taught me a lot about people. TV Show: Amazing Race – nothing like seeing places you’ve been! Sport: Track & field – not so boring if you’ve participated. What piece of equipment has not been invented yet, but will revolutionize the inland port industry when it is? The wind-up, walking, talking maritime generalist; not aligned with anyone, but skilled at gaining political consensus. If you could change one thing about yourself, what would it be? Trade in my low-key cynical humor for one that is more outgoing. As health researchers tout, “laughing leads to longer life.” What was the first concert you ever attended? Chicago Transit Authority (later just Chicago). I was in the service and got free tickets to see them at Carnegie Hall in New York City – fantastic and the concert performances over several days went into an album. Give us your thoughts on an inland port waterway industry, where it has been, and where it is going. How can a publication like Inland Port Magazine help? The inland port industry is remarkable in how unremarkable the public perceives it. It has delivered significant value for generations and been a critical component to national economic growth utilizing our river system. However, the industry is losing ground when it comes to this valuable asset. The general pubic does not see themselves as stakeholders and therefore the value of the system is lost to them. Without a public voice the, inland waterways are vulnerable pawns in the budget game. I do feel encouraged by the broad consensus the industry recently reached over the issue of waterway infrastructure investment. Unfortunately we must rely on public stakeholders to help push our agenda through. Inland Port could play a role in educating the public, as well as the industry. With its print appeal, those not in the industry find it fascinating to review the photos and become somewhat exposed to a broad range of industry information. We should be sharing our copies to others not immersed in the inland port industry for the purpose of making them aware we exist. The stakeholder education will come later. IP July/August 2010
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July August issue of Inland Port Magazine