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Inland Port

November/December 2010

New Capital Program for the Alabama State Port Authority AAPA’s Kurt Nagle Weighs in on Port Investment Industry Wish Lists and New Year’s Resolutions


IP Editorial Board

Jennifer Carpenter American Waterways Operators Sr. Vice President-National Advocacy, AWO www.americanwaterways.com

INLAND PORT MAGAZINE November/December 2010 Volume II, Number VI ISSN 2156-7611

HJP

Published bimonthly by

Debra Colbert Waterways Council Communications Manager, Waterways Council www.waterwayscouncil.org

Hudson Jones Publications, LLC Houston, Texas • Tulsa, Oklahoma 281-602-5400 Editor Daron Jones djones@inlandportmagazine.com

Keith Garrison National Waterways Conference Executive Director, Arkansas Waterways Commission www.waterways.org www.waterways.dina.org

Michael Gerhardt Dredging Contractors of America Assistant Executive Director, DCA www.dredgingcontractors.org

Michael McQuillan Inland Rivers, Ports & Terminals Vice President, Hanson Professional Services www.irpt.net

Director of Advertising Jo Anne Hudson jhudson@inlandportmagazine.com

Entire contents ©2010, all rights reserved. Reproduction in whole or in part, without written permission of Hudson Jones Publications, LLC, is prohibited. The publisher accepts no responsibility for content of any advertisements solicited and/or printed herein, including any liability arising out of any claims for infringement of any intellectual property rights, patents, trademarks, trade dress and/or copyrights; nor any liability for the text, misrepresentations, false or misleading statements, illustrations, such being the sole responsibility of the advertisers. All advertisers agree to defend, indemnify and hold the publisher harmless from all claims or suits regarding any advertisements. Due to printing and ink variances, the publisher does not guarantee exact color matching. Opinions expressed by writers are not necessarily those of the publisher or staff. Readers’ views are solicited (djones@inlandportmagazine.com). Publisher reserves the right to publish, in whole or in part, any letters or correspondence received. Publisher assumes no responsibility for unsolicited material.

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Inland Port

November/December 2010 • Volume II, Issue VI

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Port-Related Infrastructure Investments Aid US Economy

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IRPT Weighs in on Federal Funding Program for Ports

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An Open Letter from NWC

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By Kurt J. Nagle, President & CEO, American Association of Port Authorities

Alabama State Port Authority Approves Capital Program Interview with Judith Adams

Dear Santa: AWO’s Holiday Wish List By Jennifer A. Carpenter

WCI’s New Year’s Resolution: Invest in Our Waterways By Debra Colbert

Risk and reward

Cargo Screening: Is the Container Next on the List? By C. Daniel Negron, of Thomas Miller (Americas)

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NWC President Amy Larson addresses the National Commission on Fiscal Responsibility and Reform

24 Milestone for Port of Duluth-Superior 25 Woodruff Testifies on Critical Role of Waterways in America 27 Tackling the Lower Mississippi’s Budgetary Shortfall 28 St. Lawrence Seaway Cargo Up 30 Industry Notebook 32 Interview with Cornel Martin THE LAST WORD

President and CEO, Waterways Council, Inc.

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On The Cover

In our exclusive interview, Judith Adams describes how new investments at the Alabama State Port Authority will spur growth in the region.


Port-Related Infrastructure Investments Aid US Economy For centuries, United States seaports and the waterways that connect them have served as a vital economic lifeline by bringing goods and services to people around the world. These waterways have literally delivered prosperity to our nation. As the primary gateway for overseas trade, seaports are a critical link for access to the global marketplace and enable America’s exports to compete on an international basis. By Kurt Nagle President & CEO American Association of Port Authorities

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nvestments in America’s port infrastructure and intermodal connections—both land and waterside—help the nation prosper and provide an opportunity to bolster the country’s slow economic and employment recovery. Compared with 2009, US waterborne exports in the first eight months of 2010 grew 24.6 percent in value and 17.4 percent in volume. Investments in port and connecting infrastructure help exporters of American products, such as farmers, while US manufacturers benefit from import and export transportation savings because they often rely on imported parts, components and bulk commodities. Today, 99.6 percent of US overseas trade moves

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November/December 2010


Offloading cargo at the Port of Benton. AAPA encourages the use of short sea shipping on America’s marine highways.

through seaports and international trade accounts for more than a quarter of America’s Gross Domestic Product (GDP). Approximately 15,000 jobs are created for every $1 billion in goods exported and seaport activities support more than 13 million jobs. What’s more, about $3.8 billion worth of goods move in and out of US seaports each day. Given their importance for moving people and freight, creating jobs and raising our standard of living, it’s often surprising that seaports and their connecting intermodal infrastructure are given November/December 2010

relatively scant attention when it comes to federal funding and transportation policy legislation.

AAPA RECOMMENDATIONS To help counter this imbalance in federal transportation priorities, AAPA recommends a number of steps that we believe would create and sustain jobs, assist in our economic recovery, answer President Obama’s call for doubling exports, and improve Americans’ quality of life, while ensuring that US port system remains competitive. www.inlandportmagazine.com

1. Encourage use of short sea shipping on America’s marine highways. To provide incentives for removing cargo from America’s most congested roadways and putting it on the water, AAPA advocates exempting the domestic US port-to-port portion of the federal Harbor Maintenance Tax (HMT). Doing so will make shipping domestic freight by water more affordable, promoting the more environmentally-friendly option of using short sea shipping while reducing congestion and increasing the capacity of some of 5


The Port of Memphis. AAPA believes that inland port investments aren’t only critical from efficiency, safety, and environmental standpoints. They will create US jobs for the maritime industry and help construction and engineering businesses, small and large, immediately.

the nation’s busiest roads. Although well developed in Europe, this type of shipping is only in the evolutionary stages in the US In recent years, transportation planners have been struggling to identify ways to move people and goods more efficiently. Because expansion of highway and rail infrastructure is expensive, difficult and time consuming, there’s a real concern that our nation’s transportation system is constraining economic growth. The federal HMT has long been an impediment to greater utilization of our nation’s inland and intracoastal waterways for domestic cargo movements. That’s because the 0.125% ad valorem tax, which is assessed on cargo value, must be paid by importers and domestic waterborne cargo shippers. However, no such freight tax is levied on those who use landside transportation systems. To further support development of America’s marine highways, AAPA also advocates: • Federal funding support for short sea shipping services. • Establishment of a new program, similar to the ferry boat discretionary program, and encouraging more utilization of current federal programs such as 6

the Congestion Mitigation and Air Quality Improvement Program. • Incentives for shippers that utilize America’s marine highways, such as a green tax credit. • Development of expertise at the state/ Metropolitan Planning Organization level on marine highway alternatives and benefits. • Reassessment of federal shipbuilding programs and exploring how they could support marine highway development. 2. Make full use of the federal HMT. The US Army Corps of Engineers is responsible for improving and maintaining the nation’s water access to ports. The money to maintain these channels is collected from cargo owners via the federal Harbor Maintenance Tax. Nevertheless, the federal government spends only about half of the tax collected for its intended purpose—deep-draft navigation maintenance. Since its inception in 1986, a $5.6 billion surplus has accumulated in the Harbor Maintenance Trust Fund while serious dredging needs have been neglected. Insufficient appropriations make it impossible to maintain most federal navigation channels at their authorized dimenwww.inlandportmagazine.com

sions. Projects to maintain these critical waterways would create jobs immediately and would provide transportation savings to benefit US businesses. With decreases in the cost of freight transportation, these sectors can enhance their global competitiveness and can create more jobs. AAPA has recommended that Congress take action to ensure 100% of the annual amount collected from the HMT is utilized to maintain federal navigation channels. Today, America’s federal navigation channels have their authorized depths and widths available less than 35 percent of the time, which means channels narrowed by eroding sediment may be restricted to one lane of travel, while unremoved sediments on channel bottoms may mean the ships that are moving cannot carry full loads of cargo due to insufficient channel depth. AAPA believes that these investments aren’t only critical from efficiency, safety and environmental standpoints. They will create US jobs for the maritime industry and help construction and engineering businesses, small and large, immediately. 3. Dedicate at least 25 percent of discretionary transportation capital project funds to port-related infrastructure. November/December 2010


The Port of Detroit. AAPA urges lawmakers to pass a new surface transportation reauthorization bill that prioritizes freight.

In the first two rounds of the American Reinvestment and Recovery Act’s multimodal discretionary grant program known as TIGER (Transportation Investments Generating Economic Recovery), seaports were under-represented compared to other transportation modes. Ports and their connecting infrastructure garnered only 8 percent of the available funds in the first round, but the percentage of funding for port-infrastructure— including money for America’s marine

November/December 2010

highways—more than doubled in the second round, which moved us closer to the 25 percent of overall TIGER grant funding we believe is appropriate. Since port infrastructure investments are one of the four eligible areas (along with highways/bridges, transit, and freight/passenger rail) for this discretionary capital funding program, and other modes have received significant federal funds through other programs, AAPA recommends that at least 25 percent of the

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funding be awarded to port-related infrastructure projects. To that end, we are urging Congress to provide additional TIGER funding in fiscal 2011 appropriations and we believe this type of program should be a permanent part of the overdue surface transportation reauthorization. 4. Pass a new surface transportation reauthorization bill that prioritizes freight.

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The Port of Memphis. It’s time for the administration to act. Republicans and Democrats need to work together to find more efficient ways to fund bridges, roads, rails and runways. This must be a bipartisan priority, and ports and seaport-related infrastructure, including marine highways, should be included in that modal list.

AAPA urges the House, Senate and Administration to work together on legislation in 2011 to craft a final surface transportation reauthorization bill that gives a higher priority to the efficient movement of freight and includes the marine highway provisions noted earlier. Current transportation programs do not address freight needs adequately. Changes are needed to decrease road congestion due to freight movement, which will result in decreases in fuel use, pollution and transportation costs. Surface transportation improvements in and around seaports will positively impact immediate and long-term prosperity, the environment and livability. Chief among the changes we recommend in the next bill is establishment of a national freight program, which is critical to developing a well-planned, world-class surface transportation system. Other countries throughout the world have robust government policies to address freight mobility. The US program must address large national freight movement improvement needs, as well as require that state highway programs address more local and regional intermodal freight mobility improvements, including those at and near seaports. Because port freight movement needs are multimodal, changes need to 8

be made in both transportation policy and funding to address the intermodal nature of freight movement. Solutions should include funding and tax incentives to improve road, rail and marine highway movement of freight. In order to coordinate oversight of the freight transportation system, we endorse establishing an Office of Intermodalism that reports directly to the transportation secretary.

It’s time to act Within the Administration and Congress, Republicans and Democrats need to work together to find more efficient ways to fund bridges, roads, rails and runways. We believe this must be a bipartisan priority, and ports and seaport-related infrastructure, including marine highways, should be included in that modal list. Now is the time to move forward to develop and implement policy and programs that will effectively and efficiently sustain and improve America’s critical gateways for global trade. By raising the priority of seaports and their connecting infrastructure in the program and policy areas I’ve noted above, America can achieve modern, navigable seaports that are safe and environmentally sustainable, while creating jobs for both today and the future. IP www.inlandportmagazine.com

THE AUTHOR Kurt J. Nagle is the President and Chief Executive Officer of the American Association of Port Authorities. He has over 30 years of experience in Washington, DC, related to seaports and international trade. Since 1995, Mr. Nagle has served as President and Chief Executive Officer for the American Association of Port Authorities (AAPA). Mr. Nagle began working at AAPA, the alliance of the leading public port authorities throughout the Western Hemisphere, in 1985. Prior to joining AAPA, Mr. Nagle was Director of International Trade for the National Coal Association and Assistant Secretary for the Coal Exporters Association. Previously, he worked in the Office of International Economic Research at the US Department of Commerce. Mr. Nagle serves on the Executive Committee of the Propeller Club of the United States and is a former commissioner of PIANC, the International Navigation Congress. Mr. Nagle holds a Master’s Degree in Economics from George Mason University. November/December 2010


IRPT Weighs in on Federal Funding Program for Ports

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he Inland Rivers, Ports & Terminals (IRPT) Board of Directors recently announced its position on federal funding for inland ports and terminals. The Board, led by Chairman Jerry Sailors (Coosa-Alabama River Improvement Association) and President Maurice Owen (Yellow Banks River Terminal), promotes federal funding for ports and terminals through a reauthorization of the federal transportation bill. The following is a summary of IRPT’s official position.

Funding of Ports in the Transportation Bill Re-Authorization 1. The US DOT provides federal funds through specific programs to support construction of roads, bridges, and airports. 2. The US Army Corps of Engineers uses federal funds through a specifically authorized program to construct, maintain and operate locks, dams and channels on our inland rivers, and to deepen and maintain deep draft harbors along the US coastline and Great Lakes. 3. The inland river system is a valuable national asset, providing marine highways for low-cost, environmentally efficient transportation. 4. Ports are the on-off ramps for freight moving on the inland waterway system. 5. Unlike the other components of the U.S. marine transportation system, there is no specific federal funding assistance program for shallow draft ports. November/December 2010

6. Ports are multi-modal centers of commerce and distribution which are vital to the economic health of our nation. Ports are surge bins in the flow of commerce between modes, and often include industrial parks and distribution centers which provide multi-modal transportation access to private sector tenants which in turn provide family wage jobs and pay taxes in port communities. 7. IRPT supports stronger programs for efficient freight transportation, job creation and economic development.

Specific Recommendations IRPT recommends that a specific funding assistance program for shallow draft ports be authorized in the next Transportation Bill re-authorization. The US DOT may administer individual grants directly or may delegate such administration to State Departments of Transportation, or other designated State entities such as appropriately chartered State Port Authorities, State Port Commissions or State Waterway(s) Commissions. Eligible grant recipients shall include public port authorities chartered under applicable state statutes, as well as other state and local government entities, and appropriate public/private partnerships. Eligible projects shall include capital costs for infrastructure such as docks, wharves, mooring structures, dredging, bank stabilization, buildings used for port www.inlandportmagazine.com

activities, storage facilities for goods and commodities, equipment and technology required for port operations, construction of utilities to sustain port operations, onsite and nearby offsite roads and railroads to facilitate the flow of commerce through the port, improvement of port industrial sites, master plans, strategic plans, market assessments, engineering, surveying, permitting, construction phase services and other professional services related to the above. New construction projects as well as major replacement or repair projects and related professional services are eligible. Routine operations, maintenance and repair activities are not eligible. Project funding for shallow draft ports shall be provided from highway fuel tax revenues, customs revenues or other general fund sources. Inland waterway transportation and coastwise short-sea shipping reduce highway congestion and reduce costs for highway and bridge repair and maintenance. Data published by the US DOT shows inland waterway transportation uses less fuel and generates less air pollution than rail or truck modes. Ports provide significant public benefits which do not accrue to those ports as revenue. A federal-state-local funding matching formula assistance program should be considered. IP For more information on Inland Rivers, Ports & Terminals, visit them online at www.irpt.net. 9


Alabama State Port Authority Approves Capital Program Judith Adams Describes How the New Investments Will Spur Job Growth and Transportation Efficiency

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he Alabama State Port Authority Board of Directors recently approved a portwide infrastructure investment program geared toward stimulating the economy and implementing efficient transportation solutions for one of the nation’s busiest seaports. The $360 million (US) Capital Program identifies key public investment needs at the Port of Mobile to attract new industry, create new jobs and increase Alabama and regional shipper competitiveness through efficient transportation and terminal solutions. “Back in 2000, the state docks identified a series of new infrastructure and seaport modernization programs that successfully leveraged an $100 million infusion of capital into $700 million worth of port improvements and attracted new manufacturers to our region,” said Jimmy Lyons, director and chief executive for the Alabama State Port Authority. “That funding over the past 10 years not only modernized or created new public port assets, but also was integral to attracting global players like APM Terminals, International Shipholding Corporation, Hyundai, ThyssenKrupp, SSAB, Berg Spiral Pipe, INEOS Phenol, and Aker Solutions. These companies in turn generated tens of thousands of construction jobs and an estimated 7500 permanent jobs in our region. Now, we need to look forward to the next ten years.” The program is a comprehensive seaport investment package to construct new interchange and intermodal rail yards, a new warehouse and cargo yard improvements to serve a burgeoning steel business, cargo terminal improvements that will accommodate growing regional exports and deepwater oil- and gas-field production service industries, and to secure deepwater land to accommodate future public seaport expansions.

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“The program’s estimated $360 million would be expended in phases over the next five years as needed to accommodate our growing business,” noted Lyons. The Capital Program was recommended by staff and was based on the Port Authority’s market assessments for growth with some projects generating 2,000 permanent new jobs within the port alone. The Port of Mobile is currently ranked

Capital Program that modernize and expand the market capability of the publicly owned deepwater seaport assets. Some of the critical components include the Intermodal Container Transfer Facility Phase I and II; Phase II of Mobile Container Terminal; a Distribution & Logistics Park; both Rehabilitation and new warehousing to address our expanding steel business; a railroad interchange improvement project, to name a few. All of these would extend the market reach and expand business.

More than 7,000 permanent jobs were created with the last capital infusion. How many jobs overall are you projecting this time around? The Alabama State Port Authority’s port-wide activities generate 66,617 direct and indirect jobs and $7.9 billion in economic impact on the reThyssenKrupp, along with other major gional economy. The cumulaplayers, generates tens of thousands of tive jobs and economic impact construction jobs and an estimated 7,500 stemming from a $356.5 permanent jobs in the region. million Capital Program has 9th largest US seaport in total volume. The been quantified by the well respective transportation and maritime economists Alabama State Port Authority owns and at Martin Associates. Martin concluded operates the State of Alabama’s deepwater that the Port Authority’s Capital Program port facilities at the Port of Mobile. The would generate $267 million in construcPort Authority’s statewide economic impact totals $7.9 billion and has a direct and tion expenditures, 6,353 construction jobs and generate an estimated $18.4 million in indirect jobs impact of nearly 67,000 jobs. tax revenue. Martin further concluded the The Port Authority’s container, general potential total annual economic impact of cargo, Ro/Ro, and bulk facilities have imthe proposed program would generate over mediate access to two interstate systems, 12,500 direct, indirect and induced jobs five Class 1 railroads, and nearly 15,000 with over $800 million in personal income miles of inland waterway connections. Inland Port Magazine turned to Judith and local consumption impacts. The state and local tax benefit from the program was Adams, Vice President of Marketing for projected to total $70.1 million. Some of the Alabama State Port Authority, to get the key projects have significant economic the inside story on the new Capital Proimpact numbers, as well. gram and what it will mean to the region. What specifically did the Board identify as “key public investment needs” for the port? There are several projects in the ASPA www.inlandportmagazine.com

How quickly will your region feel the economic effects of this measure? The region could feel immediate jobs and tax revenue impacts associated with November/December 2010


construction once one or more of the project components are launched. More permanent impacts are associated with the business stream itself. The ASPA Capital Program is a blueprint of potential capital projects over the next five years funding permitting. Can you outline what exactly will be tackled in each of the phases going forward over your five-year plan? Not really. Funding is key to all of these projects. The ICTF is certainly a priority so as to capitalize further on not only the marine terminal but the new turning basin constructed to handle post-Panamax vessels. You are currently ranked 9th in the US in total volume. Do you see a move up in

November/December 2010

the rankings as one of the results of this investment plan? Not at this time. In fact, we may in fact drop in ranking due to the global recession impacts. Many ports saw cargo declines which will certainly impact the next round of rankings. What is certain is that the Port of Mobile is one of the nation’s largest seaports, with a significant export lift to attract carriage, and has one of the best inland transportation networks (5 Class I railroads, two interstate systems, and 15,000+ miles of inland and Intracoastal waterway connections). Rankings are good to impress your audience, but any deepwater seaport, particularly the top 20, is critical to serving the nation’s trade needs. With Mobile’s new modern infrastructure serving both containerized, bulk and break-bulk cargoes, its strong manufac-

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turing base, and its flexibility to adapt to changing market conditions, we think we will remain a major US port. What are your thoughts on the new Marine Highway initiatives that have been rolled out over the past year? Hooray! The US needs to invest more in its capacity laden inland waterways. Freight congestion on highways and railways will only get worse. Moving freight off the roads and onto waterways not only reduces that congestion, but also increases fuel efficiency and air quality by moving more freight tons per mile thereby reducing emissions. IP For more on the Alabama State Port Authority, contact Judith Adams via email at jadams@asdd.com or visit asdd.com.

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Alabama’s Pinto Steel Terminal Handles First Shipment of Brazilian Steel Slab

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he Alabama State Port Authority’s Pinto Steel Terminal recently took its first shipment of Brazilian-made steel slab bound for the ThyssenKrupp Steel USA multi-billion dollar steel processing facility at Calvert, Ala. Just over 50,000 metric tons, or 2,216 individual slabs, were manufactured by ThyssenKrupp CSA Siderúrgica do Atlântico steel production mill located on Sepetiba Bay in the state of Rio de Janeiro, Brazil. ThyssenKrupp CSA will serve as the primary source of carbon steel slab for the ThyssenKrupp Steel USA state-of-the-art steel mill, and will deliver an estimated three million metric tons annually through the Port Authority’s Pinto Steel Terminal. 12

Jimmy Lyons, director and chief executive officer for the Port Authority, commented on the significance of the first shipment of Brazilian produced product. “The successful ramp-up of both the Brazilian and Alabama mills, along with the first delivery of Brazilian carbon slabs, demonstrates how well these new facilities are performing. The second shipment is already en route and Pinto Terminal is prepared to handle the volume,” said Lyons. The inbound slabs were discharged from the M/V Hermann S, a U-SEABULK operated vessel. Page & Jones, LLC served as the vessel’s agent. The Alabama State Port Authority, which owns and operates the new $110 million steel handling terminal, offloaded www.inlandportmagazine.com

the steel using three wide-span gantry cranes, each of which have a maximum lift capacity of 74 metric tons. Premier Bulk Stevedoring, LLC provided shipboard cargo handling services. “This is another important milestone for our project,” stated Scott Posey, director of communications for ThyssenKrupp Steel USA, LLC. “With the arrival of these slabs from our newly sister company in Brazil, we’re inaugurating the supply chain that will enable us to provide our customers with the highest quality products and fulfill our vision of becoming the premier steel producer in the NAFTA market. Our close and successful partnership with the Alabama State Port Authority has made this possible.” IP November/December 2010


Dear Santa...

AWO’s Holiday Wish List In the spirit of the season, Jennifer A. Carpenter, Sr. Vice President of National Advocacy for the American Waterways Operators (AWO), offers this holiday Wish List of results AWO would like to achieve for America’s tugboat, towboat, and barge industries in 2011. Of course, they’re not leaving it all up to Santa – they will be bringing all of AWO’s staff, member, and partner resources to bear in working to accomplish these priority goals for the New Year.

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ish #1: To tell the industry’s story in a compelling way to educate and impress upon key audiences the value of the industry to the nation. The barge industry provides family-wage jobs for Americans, carries American cargoes for export – something President Obama recently said we desperately need more of – and transports vital commodities safely and in an environmentally-friendly way. But for many Americans, the barge industry is largely invisible. AWO aims to remove the invisibility cloak from the industry by promoting its value to the nation’s economy, environment, national security, and quality of life. Wish #2: To ensure that AWO members lead the marine transportation industry in safety and environmental stewardship over the next decade. AWO has a longstanding history of safety leadership, as demonstrated by the award-winning AWO Responsible Carrier Program and the first-of-its-kind Coast Guard-AWO Safety Partnership. Drawing on input from government partners, industry customers, and other respected safety experts, a senior-level Task Force on the Future of AWO Safety Leadership is working now to develop a fresh vision of what it means for AWO to be a safety leader in 2011 and beyond. Wish #3: For the US Department of Homeland Security to publish the towing vessel inspection notice of proposed rulemaking. This historic regulation will help take the industry to the next level of safety and environmental protection. It has been stuck at DHS for over 18 months despite calls for its publication by key members of Congress and industry. On October 15, President Obama signed into law the Coast November/December 2010

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Guard Authorization Act of 2010 (P.L. 111281), which requires DHS to issue a notice of proposed rulemaking on towing vessel inspection no more than 90 days from the date of enactment, a step AWO strongly supports. Wish #4: For Congress and the Administration to adopt the Inland Waterways Capital Development Plan, which was developed by a public-private partnership to ensure adequate funding and efficient delivery of much-needed improvements to the nation’s inland waterways infrastructure of locks and dams. This infrastructure allows for the efficient transportation

of 800 million tons of cargo per year, including: • More than 60% of US export grain, helping American farmers compete with foreign producers; • Coal to power plants for electricity production; • Petroleum products and chemicals for essential industries; • Home heating oil to warm American homes; • Gasoline to keep our cars running; • Salt for our winter roads; • Wheat to feed Americans and the world.

Images courtesy of Kirby Corp.

Wish #5: To secure a uniform and practical national approach to the regulation of ballast water and other vessel discharges. Currently there exists a confusing patchwork of state standards that undermine interstate commerce and environmental protection. Historically, the Environmental Protection Agency (EPA) exempted discharges incidental to normal vessel operations, including ballast water, from the National Pollutant Discharge Elimination System (NPDES) permit program. A 2005 court decision eliminated that exception, and today, vessel discharges are regulated under the NPDES program, which was designed for fixed facilities and is an extremely poor fit for mobile assets like vessels. While AWO is working through the regulatory process and the courts to make compliance with the Vessel General Permit more practical for vessel owners, only Congress can solve the root problem by establishing a uniform national framework for the regulation of vessel discharges. Wish #6: To achieve a practical, science-based approach to crew endurance, work and rest issues. AWO has been focused on the issue of crew alertness 14

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November/December 2010


– in 2009. At the height of the Deepwater Horizon spill, that same quantity of oil was estimated to be escaping from the ocean floor every two minutes. Congress’s legislative response to the Deepwater Horizon should focus on reducing the risks of deepwater offshore drilling and not on maritime transportation.

since 1997, working in cooperation with the Coast Guard. The Coast Guard-AWO cooperation has focused on the Crew Endurance Management System (CEMS), a holistic approach to addressing job-related environmental, operational, physiological and psychological factors that may impact crew endurance. Recent NASA-funded research has shown that obtaining sleep in two periods – a longer “anchor” sleep and a substantial “nap sleep” period – is just as effective as an equivalent period of uninterrupted sleep. AWO has engaged Northwestern University’s Center for Sleep and Circadian Biology in a multi-year study aimed at developing strategies to build on CEMS and ensure that towing vessel crewmembers get 7-8 hours of healthy sleep each day. Wish #7: To build support for the Jones Act with Congressional and Administration policymakers and prevent erosion of the cabotage laws. The Jones Act requires that US domestic waterborne commerce be carried on US-flagged vessels that are owned by US citizens, built in US shipyards and crewed by US citizens. Similar statutes govern the domestic passenger, dredging, fishing and salvage industries. The Jones Act ensures jobs for American workers, and contributes to the economy while protecting the environment. In the wake of the Deepwater Horizon incident, unfounded criticism of the Jones Act as an impediment to oil spill cleanup led to November/December 2010

the introduction of legislation to waive or repeal the Jones Act. No less an authority than retired Coast Guard Admiral Thad Allen, the National Incident Commander for the Deepwater Horizon response, publicly affirmed in June that “we at no time in the course of this response have been inhibited by anything [having] to do with what we call [the] Jones Act or Jones Act waivers.” AWO and the Maritime Cabotage Task Force (MCTF) will be working hard in 2011 to educate new and returning Members of Congress on the value of the Jones Act to US jobs and the security of our homeland. Wish #8: To prevent harmful changes to the maritime liability and oil spill prevention and response regimes. In the wake of the Deepwater Horizon incident, Congress introduced more than 62 pieces of legislation and held three dozen hearings on issues related to the spill. Some of these laws would have impacts far beyond offshore drilling, threatening jobs and undermining American businesses in all segments of the domestic maritime industry, despite the existence of a comprehensive body of law and regulation that has helped to make the tugboat, towboat and barge industry the safest, most efficient and most environmentally friendly mode of freight transportation. Tank barge spills have plummeted by 99.6 percent in the last 20 years, reaching their lowest recorded level – 4,347 gallons www.inlandportmagazine.com

Wish #9: To eliminate the requirement for a second trip to the TWIC enrollment center and ensure that TWIC card readers are not required on towing vessels. AWO has worked hand in hand with maritime labor unions to make the Transportation Worker Identification Credential (TWIC) program more practicable for mariners. The 2010 Coast Guard Authorization Act requires a study of the feasibility of a secure TWICby-mail process and, if such a process is determined to be feasible, the development of a process that would eliminate the requirement for a second trip to an enrollment center to pick up a TWIC. AWO is also working through the Coast Guard regulatory process to ensure that forthcoming requirements for TWIC card readers do not require readers to be carried on small vessels where their use would have minimal security value. Wish #10: To ensure that navigation and vessel operations are regulated by the federal government and to prevent state attempts to usurp the authority of the US Coast Guard or other federal agencies. The US Constitution and longstanding federal law give the federal government the authority to regulate vessel design and operations and related issues like crew qualifications. The uniformity provided by federal regulation is essential for the safe and efficient flow of critical maritime commerce. AWO will strongly resist state efforts to regulate vessel operations and create a confusing and counterproductive patchwork of state-specific requirements. Jennifer Carpenter and American Waterways Operators hereby wishes all Inland Port Magazine readers happy holidays and best wishes for the New Year! IP 15


New Year’s Resolution

Invest in Our Waterways L

By Debra Colbert Director of Communications & Media Relations Waterways Council, Inc. waterwayscouncil.org

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osing that weight gained from the holidays, hitting the gym more regularly, getting finances in order. All good New Year’s resolutions we are familiar with around this time of year. But what if we decided to commit to one that actually paid us back? Our nation should consider investment in our waterways infrastructure for one of the best returns on investment going today. It may be preaching to the choir, but the facts about the value of our nation’s rivers system must be repeated in hopes that those in government will hear them, understand and appreciate the critical importance of our waterways and the lock and dam infrastructure that requires recapitalization and reinvestment. Our nation’s shippers – our farmers and others – rely on a modern, well-maintained system of locks and dams to facilitate the transport of America’s vital products such as grain, coal, petroleum products, iron and steel, feedstocks, and aggregate materials. Our nation’s inland waterways are envied by the world because this natural “water highway” running throughout our country provides key access for commerce. Modern lock and dam infrastructure means the United States can remain competitive in the world marketplace, better safeguard its environment, be more energy efficient, enjoy traffic congestion relief, and create and sustain well-paying jobs for Americans. At a recent US Army Corps of Engineers’ Ohio River Navigation System Annual Regional Stakeholders Meeting in Pittsburgh, several panels focused on the waterways system’s reliability and efficiency. Those from the Corps, stakeholders, economists, researchers and others assessed the navigation system, addressing known Operations & Maintenance problems that will result in a “Fix as Fails” to “Fail to Fix” approach unless efficient funding levels can be increased and maintained. There was also a focus on dams, with those from the Corps’ Lakes & Rivers Division noting that 50% of the highest-risk dam projects in the nation reside in this division. Unscheduled lock outages have increased by 200% over the last 10 years, according to officials at the meeting. The average life cycle of a lock dam is 50 years, but there are many on the system between 90 and 100 years old. Sobering information indeed. At the meeting, Michael B. White, who retired at the end of 2010 after 38 years in various positions within the Corps most recently as Director of Programs for the Great Lakes and Ohio River Division, said of the waterways, “I can’t think of any proposition that has made America greater.” He is right. Our growers, shippers, and those who enjoy the recreational benefits of the waterways appreciate this sentiment. Now it’s time for our government to realize the waterways system’s value to our country’s jobs, exports, traffic congestion relief, and environmental stewardship. Investing in our nation’s waterways transportation infrastructure now will keep America moving into the future. And that’s the way to go! IP

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November/December 2010


Norwegian Spirit Makes Home at Port of New Orleans

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orwegian Cruise Line’s 2,018-passenger Norwegian Spirit arrived at her new homeport of New Orleans in November. It is the first time Norwegian will homeport a ship year-round in New Orleans, with weekly seven-day Western Caribbean cruises. Norwegian has homeported cruise ships in New Orleans seasonally since 2003 and was the first line to return to New Orleans following Hurricane Katrina. IP

November/December 2010

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Risk and Reward

Cargo Screening:

Is the Container Next on the List? T

By C. Daniel Negron

Vice President, Thomas Miller (Americas) Inc.

The recent attempt by Al Qaeda to detonate two parcels onboard air cargo flights over America has once again thrown the question of the screening of cargo into sharp focus.

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he recent attempt by Al Qaeda to detonate two parcels onboard air cargo flights over America has once again thrown the question of the screening of cargo into sharp focus. On November 24, 2010, Representative Edward Markey introduced a bill which effectively says all cargo-only aircraft must be screened for deadly devices. Representative Markey originally introduced the 2007 law requiring 100% screening of all air cargo transported on domestic passenger planes and all international passenger planes entering the United States. But so far, there has been no general requirement for the screening of ocean freight carried in containers. The Container Security Initiative (CSI), launched in 2002 by the U.S. Bureau of Customs and Border Protection (CBP) was designed to increase security for container cargo shipped to the United States. As the CBP put it, the intent was to “extend [the] zone of security outward so that American borders are the last line of defense, not the first”. However, this initiative is by no means a blanket requirement for the automatic screening of all cargo containers.

INTERNATIONAL Outcry There is, however, the prospect of container screening becoming mandatory in the USA by 2012. This is one of the provisions of the US Homeland Security Bill passed in 2007, requiring all US-bound containers to be screened for nuclear devices at the port of shipment. This caused an outcry from the international shipping community. The then General Secretary of the European Shippers’ Council, Nicolette van der Jagt, said that “business will be paying the lion’s share of providing the equipment, but I suspect the biggest cost to shippers will be the cost of delays. One can only imagine the huge queues that will form when every container has to run through radiation and image scanners”. According to the World Shipping Council, this move would affect about $500 billion in annual American commerce; and a study by RAND Corp. in June 2006 found that 100% container scanning could slow each twenty-foot equivalent unit (TEU) by as much as 5.5 hours, depending on the scanning method used. In its publication, ‘Supply Chain Security’, the TT Club warns that ports which do not comply with this legislation may find themselves barred from shipping to the USA altogether, although the legislation does allow for a two-year period of grace before it is fully implemented. The TT Club adds that there is still considerable opposition in the world shipping community to the American legislation, and the EU is planning reciprocal action, requiring all Europe-

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November/December 2010


bound containers from the USA to be screened at the port of origin.

A Valuable Exercise Nevertheless, there is a view that container screening is a valuable exercise in itself, not only to detect possible weapons of mass destruction, but also to root out, through legislation, non-compliance among shippers of hazardous cargo. The TT Club cites a recent report by the National Cargo Bureau on the findings of a survey in which 25,000 containers were opened to check their contents against their cargo declarations. The survey showed that approximately 32% of those containers were found to be flouting the rules on hazardous cargoes to such an extent that the authorities halted their movement. In the view of the NCB, too many operators fail to pay enough attention to security issues. Worldwide, there are a considerable number of initiatives and legislation, voluntary and mandatory, which seek to improve supply chain security. There is no doubt that the events of September 11th 2001, and the vulnerability of the maritime supply chain to terrorist attacks, will eventually mean that governments will lean heavily on the ports and shipping industries to improve their act in terms of security. TT Club takes a realistic approach and encourages port and terminal operators to make a virtue of necessity: “Many ports have been forced to put in security measures for fear of check-ups by regulatory bodies, not because they actually wanted security to work”, explains TT Club’s Risk Management Director, Peregrine Storrs-Fox . “But if you look at security from a management, rather than an operational perspective, and integrate it with your management systems, then you can start to see how it can work for your and bring benefits. It’s a question of making security part of the way you manage your business, rather than ticking the boxes demanded by a regulator.”

implications. Delays and losses caused by security lapses can result in loss of business, damage to goodwill and the imposition of significant direct costs. But regardless of whether security measures are aimed at preventing loss or damage to goods, or the introduction of illegal contraband, or the execution of a criminal act, the fact remains that the industry will have a financial stake in its success in the long run. The TT Club regards regulations under cargo screening legislation as relating to export and import of cargo and will insure on this basis liabilities arising from breaches of the legislation under its fines and duty cover.

In today’s security-conscious environment, the transportation industry’s financial interests will best be served by collaborating, both within the business community as well as with its law-enforcement counterparts, to ensure that the flow of commerce moves safely as well as expeditiously. 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. Email: daniel.negron@thomasmiller.com

Cost Implications In the final analysis, port operators and shippers are naturally concerned at the cost implications for container screening for whatever purpose, and the effect that additional costs and delays may have on their business. Some have yet to be convinced that the time and energy spent on security initiatives can make good business sense. But breaches of a routine security standard can, in fact, have significant cost November/December 2010

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Castle Engineers Philadelphia Pier Rehab Project P

hiladelphia Mayor, Michael Nutter, along with City and State Officials, visited the construction site at Race Street Pier on Tuesday, November 9th, for a groundbreaking ceremony. Race Street Pier, formerly known as Pier 11, is presently being reconstructed into a one-acre public park for Philadelphia residents and tourists. Built circa 1900 at the foot of the Benjamin Franklin Bridge, Pier 11 was once used by national and international steamships carrying fruit, salt, and cargo. Tom Corcoran, President of the Delaware River Waterfront Corporation, says “the new Race Street Pier is an early action project of the Civic Vision which will set new standards of excellence in design and public input and will have far reaching impact beyond this new park.” W.J. Castle & Associates, P.C. began engineering and design work on the Race Street Pier rehabilitation in 2009. A veteran port, pier, and harbor engineering firm, this project was much different from previous Castle projects. “Typically, our rehabilitation projects are for the purpose of a structure regaining its original function. The Race Street Pier rehabilitation is unique in that the function of the structure will be changing completely,” said Castle’s Richard Parisi, P.E. In the first stage of the project, Castle performed an inspection of the entire 80’ x 540’ pier, both above and below the water’s surface. Some of the findings included deteriorated steel trusses, timber splitting among the piles, and spalling on the concrete decks which needed patching. After Castle’s rehabilitation design was submitted, Hydro-Marine Construction cleaned the debris from the pier and demolished the unused fender system. Once these were completed, Hydro then rehabilitated the steel support trusses, timber piles, pile caps, and concrete decks, followed by prep work for the upcoming landscaping. Civil engineers Langan Engineering & Environmental Services and landscape architects James Corner Field Operations were contracted by DRWC and the City of Philadelphia for park designs and planning. Castle helped with the pier structure modification in order to accommodate the park designs. This included designing the support in the deck for 12 tree boxes, reshaping of the decking and pier nose, and the support for the edges of the pier for the walkway pavers. For more on the project, visit www.wjcastlegroup.com. IP

New Grapples from Sennebogen S

ennebogen’s green line scrap handlers will now be offered with its new green line orange peel grapples for use in recycling yards and steel mills. Sennebogen grapples are available in 4-tine and 5-tine models and in sizes from 0.5 to 5 cubic yards. Manufactured to match Sennebogen’s renowned standard of robust strength and reliability, the new grapples feature a high performance design for extreme duty cycles under the most difficult applications. Cylinders are provided with heavy-duty protection while hoses are fitted with optimized routings and steel guards. According to John Van Ruitenbeek, Vice President Sales and Marketing at Sennebogen LLC, “These grapples are a logical step for us to simplify the purchasing process for customers who already appreciate the value of Sennebogen quality and service.” Sennebogen grapples are available exclusively through authorized Sennebogen distributors throughout United States, Canada and South and Central America. For more, visit www.sennebogen-na.com. IP

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Federal Recovery Act Dollars Pay for New Three-Port Partnership T

he Obama Administration’s continuing commitment to a more efficient and green US transportation system moved forward recently as Maritime Administrator David T. Matsuda joined other federal, state and local officials at the Port of Stockton to officially break ground on California’s new Green Trade Corridor. The $30 million Transportation Investment Generating Economic Recovery (TIGER) grant will help develop a viable waterborne shipping route between Oakland, Stockton and West Sacramento, which immediately creates a new transportation alternative to conventional freight and cargo movement in Northern California. “The Green Trade Corridor project will demonstrate the environmental benefits of freight transportation on America’s Marine Highways, not only for California but for all of America,” said US Transportation Secretary Ray LaHood. “It will also create good, solid transportation jobs for today and far into the future.” Currently, international trade, imports, and exports, are moved almost exclusively by truck or rail in California. The TIGER grant to the ports of Oakland, West Sacramento, and Stockton enables a partnership that will use barges to move cargo along the inland waterway system from Stockton and West Sacramento to Oakland for ultimate shipment to the Far East. Vessel operations are scheduled to begin in early 2012. “Not only will this project ultimately reduce air emissions from trucks on Interstate 580, it will also create new alternatives throughout Northern California to transport exports to the Far East,” said Administrator Matsuda. Federal grants will be used to purchase or upgrade port facilities and the equipment needed to make the marine highway system a reality, including: • the construction of a staging area at the Port of Stockton for cargoes dedicated to the new marine highway, and the purchase of two cranes and a barge to support the service; • the construction of a distribution center and the purchase of a crane in West Sacramento where freight, mostly agricultural products from California’s Central Valley, will be “re-packed,” into larger containers for transport on water; and • the installation of electrical supply at ship berths in the Port of Oakland, which will allow operators to shut down an ocean-going vessel’s diesel engines while in port, further reducing the air emissions in this “green trade corridor.” The TIGER program, part of the American Recovery and Reinvestment Act, is designed to promote innovative, multi-modal and multi-jurisdictional transportation projects that provide significant economic and environmental benefits to an entire metropolitan area, region or the nation. The America’s Marine Highway program is a new Congressionally-authorized initiative to move more cargo and passengers, when possible, on water routes to relieve landside congestion on the roadways and reduce emissions. Nationwide, 18 rivers and coastal routes have been identified to participate in the program. More information about the America’s Marine Highway program can be found at www.marad.dot.gov. IP

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November/December 2010


An Open Letter from NWC This letter to the National Commission on Fiscal Responsibility and Reform (Co-Chairmen Simpson and Bowles) is in response to the draft Co-Chairs’ Proposal issued on November 10, 2010, setting forth various recommendations designed to balance the budget and improve our nation’s long-term fiscal outlook. NWC appreciates the Commission’s service in laboring over painful choices to ensure our nation’s fiscal well-being, reduce deficits and debt.

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s a guiding principle, we believe that our nation must sustain investment in its natural resources, including its water resources, wherever the net economic, environmental and social benefits warrant. Given this, we also believe a comprehensive and rigorous consideration of economic justification would materially alter the recommendations to terminate lowpriority Army Corps of Engineers construction projects (draft proposal 13) and to require the inland waterways system to be entirely self-funded (draft proposal 34). Reliable, well-maintained water resources infrastructure is fundamental and critical to America’s economic and environmental wellbeing, and is essential to By Amy Larson, Esq. maintaining our nation’s competitive position President within the global econoNational Waterways Conference my. Our water resources infrastructure provides waterways.org life-saving flood control, abundant water supplies, shore protection, water-based recreation, environmental restoration, and hydropower production. Moreover, waterways transportation is the safest, most energyefficient and environmentally sound mode of transportation. Regrettably, there is an unfortunate perpetuation of the colorful but inaccurate account of the Army Corps’ water resources program as the locus of nothing but projects meeting pork-barrel criteria that are funded at the whim of powerful members of Congress and special interests. Today, nothing could be further from the truth. Congress and various Administrations have progressively implemented changes and reforms that make this program one of the most scrutinized of any capital investment programs in the government. The Water Resources Development Act (WRDA) of 1986 imposed significant increases in non-Federal cost-sharing and items of local cooperation, and WRDA 1996 increased these non-Federal cost-sharing burdens. Congress authorizes projects that meet a very rigorous test: non-Federal governments must be willing to put up substantial shares of project costs. In addition, recommendations for project authorizations from the Chief of November/December 2010

Engineers are based on extensive economic and environmental analysis, and since WRDA 2007, external peer review. Even with these significant hurdles, our nation has faced a growing backlog of authorized and unfunded projects. Over the last decade, the Administration has responded with rigorous budgetary criteria that projects must meet for the President to include them in his budget. All projects are prioritized and subjected to strict economic, environmental and safety criteria. Those projects with a benefit cost ratio of 2.5 or greater are given top priority for budgeting purposes. The simplistic notion that projects included in the Corps of Engineers construction budget are “low-priority” and are easily expendable defies the reality that these projects are the absolute best water resources projects from a $70 billion backlog. The prioritization process is grounded upon the economic and environmental benefits to the nation’s economy. By way of

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example, in the case of deep draft navigation, the modernization and maintenance of our ports are inextricably linked to our economic prosperity. More than 95% of US imports and exports moves through our nation’s harbors. Our people cannot afford the higher costs and diminished export competiveness we would experience by reducing investment and maintenance of our ports. Moreover, we will simply not achieve the President’s goal of doubling our exports in the next five years if our ports are not modernized and maintained to accommodate the modernization of the world’s merchant fleet. Nor would we welcome the negative employment impacts engendered by driving down the efficiency of our international transportation. Given the linkages of our ports and waterways, the inland waterways have a critical share in supporting our nation’s international trade. Today, the costs of transporting freight over inland waterways is two to three times less than other modes of transportation, translating into an annual savings of $7 billion for American businesses. Making our inland waterways system self-funding would ignore the external contributions of this system to our national well-being. Indeed, the US Department of Transportation recognizes that our waterways contribute to substantially reducing congestion on our highways and, because of relative energy efficiency among modes, to reducing emissions of both traditional air pollutants and green house gases. The reduction in congestion makes our highways safer and lower emissions mean a healthier people. In addition, transportation of certain goods is simply safer by inland waterways. Numerous other benefits accrue from a robust and healthy water infrastructure. We cannot afford to ignore these benefits when deciding how much to invest in their modernization and maintenance. Moreover, the proposal to impose on the towing industry 100% of the cost of construction and maintenance of the waterways ignores these other benefits and is manifestly unreasonable. The nation’s water storage and supply system is a critical component of our economic strength, public health and environmental sustainability. The Army Corps of Engineers’ flood damage reduction program saves lives and has prevented more than $700 billion in riverine and coastal damages – saving almost $6 in damages for each dollar spent. We cannot stop construction of flood 22

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November/December 2010


damage reduction projects in Southeast Louisiana, Sacramento, CA; Fargo, ND; Cedar Rapids, IA and scores of other communities without significant risk to the lives, homes and property of real American families. Managing water and water resources is often one of the larger costs facing local governments as they seek to provide flood protection to their citizens while also meeting water quality regulations, that if not met can result in additional costs. Federal investment in flood damage reduction projects creates an incentive for communities to take on those projects in addition to meeting their water quality requirements, thereby further improving public safety. Additionally, the Mississippi Rivers and Tributaries Project is one of the most successful public works projects in our history and the backbone of the economies and way of life of numerous states and millions of Americans. Hydropower facilities built and maintained by the Corps alone produce nearly a third of the nation’s total hydropower output: enough energy to serve about ten million households. Equally imperative is the continued investment in restoring and defending precious aquatic ecologies like the Florida Everglades, the Gulf Coast, the California Delta and other ecosystems that are significant to our environmental well-being even if these systems are not household names. We understand that the Commission is scheduled to meet on November 30th and December 1st, with a final vote on the proposal likely scheduled on the 1st. We urge you to consider the long-term benefits that investments in water resources infrastructure provide our people as well as the rigorous criteria imposed on the Corps’ budget. We believe that with a comprehensive understanding of the extensive economic and environmental cost-benefit analysis and budgetary criteria imposed on Corps projects, you will decline to adopt these recommendations. You may even want to recommend that other government programs be prioritized with the same rigor. Again, we appreciate the very difficult job the Commission faces in putting our nation on the path to better fiscal discipline. Thank you for your consideration. Sincerely, Amy W. Larson. Esq. President, NWC November/December 2010

OceanView Night-Vision Camera Installed on Fire Boat M

etalCraft Marine, a leading manufacturer of custom, high-speed aluminum fire, patrol and workboats for the North American market, has chosen the state-of-the-art Zeus night-vision camera manufactured by OceanView Technologies for its new 70-foot FireStorm fire boat. Representing the top of OceanView’s extensive night-vision camera line, the Zeus, features three cameras in one robust unit: thermal zoom, low-light zoom and color zoom. The Zeus also offers highly innovative fiber-optic image-stabilization and lock-on object tracking. Lock onto any object – aircraft, buoys, navigational hazards, a man overboard or a vessel in distress – and the Zeus will keep the object steady in the center of the picture. Mike Bader, CEO of OceanView Technologies, based in Boca Raton, Florida. “Given the exacting demands of a vessel like the amazing new FireStorm 70, the engineers at MetalCraft expected only the finest equipment on board. Our Zeus night-vision camera fit that need.” Based in Kingston, Ontario, with a US office in Clayton, NY, MetalCraft has been building high-speed custom aluminum patrol and work boats since 1987. The new FireStorm 70 runs at a top speed of 42 knots (46 mph) and can pump up to 14,000 gallons of water per minute. The Zeus builds on the features of OceanView’s other popular night-vision models, including the Apollo II, Triton, Atlas and Poseidon cameras. They all provide crisp images in any light or environmental conditions. IP

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Milestone for Port of Duluth-Superior A

milestone in project cargo movement was recently achieved at the Head of the Lakes as crews handled the heaviest Canadian Pacific (CP) direct, single-line rail move from the Port of Duluth-Superior to western Canada. Two, 300-ton dimensional transformers arrived at the Clure Public Marine Terminal in Duluth on Friday, Nov. 5. Both units were manufactured in Germany and shipped from Rotterdam aboard the BigLift freighter Tracer, along with multiple crates of accessories. Crews from Lake Superior Warehousing Co. discharged the high/wide/heavy cargo directly onto specialized railcars waiting dockside One of those specialized cars, a brand new 20-axle railcar managed by SRT, was just recently introduced into American service. A train comprised of this car and eight others (including a 16-axle railcar) left Duluth Tuesday and is making its way along a 1,200-mile CP clearance

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route northwest to Lethbridge, Alberta, where the transformers will be installed and eventually power the Montana Alberta Tie Line – the first international merchant transmission line in North America. “When fully operational next year, the 214-mile transmission line will interconnect the electricity markets of Alberta and Montana,” said Paul Kos, Director of Engineering for Montana Alberta Tie Ltd, “opening up a huge potential for development in renewable energy projects in both countries.” MATL is a wholly owned subsidiary of Tonbridge Power, Inc., headquartered in Toronto. “The Port of Duluth factored strategically in this single-line rail move,” said David Walker, Senior Manager, CP Logistics Solutions. Since 2005, CP has handled the majority of wind energy components inbound to southern Alberta for wind energy projects in that region. “It’s great to see all of these projects finally getting connected,” added Walker. “This transmission line will transform renewable energy into power for customers on both sides of the border. CP is equally excited to have brought the two heaviest transformers through the Port of Duluth, one of our premier transloading partners.” CP completed upgrades to bridge infrastructure in Minneapolis-St. Paul a couple of years ago in order to accommodate the movement of more oversized/dimensional cargo through Duluth. “When it comes to designing an end-to-end transportation solution,” noted Walker, “utilizing Duluth’s multimodal facility makes possible a single-line, cross-border rail haul that creates huge benefits for our customers.” “This is a CP-served facility, with on-dock rail and intermodal transloading capabilities – the farthest inland port on the Great Lakes St. Lawrence Seaway,” said Jonathan Lamb, Vice President and General Manager of Lake Superior Warehousing Co., terminal operator for the Duluth Seaway Port Authority’s Clure Public Marine Terminal. “Our location enables us to collaborate with key marine and railway companies involved in transportation logistics, not only for a transmission line project like this but also for renewable energy customers across the heartland.” Lamb touted the Port of Duluth’s proven track record in handling dimensional freight for a number of energy-related projects, including nearly a million freight tons of wind turbine components delivered to projects in several countries including the U.S. and Canada. “This move has proven to be a great example of the innovative collaborations being forged today,” added Walker, “shared efforts to provide solutions for the efficient, specialized transport of high/wide and heavy project cargo from its point of origin to an installation site halfway around the world.” IP

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November/December 2010


Woodruff Testifies on Critical Role of Waterways in America M

Kirby Corp.’s Matt Woodruff

November/December 2010

att Woodruff, a member of the Inland Waterways Users Board, the Waterways Council Board of Directors, and Director of Government Affairs for Kirby Corporation in Houston, Texas, recently testified before the Senate Committee on Environment & Public Works about the essential value of the waterways system to the nation’s economy, jobs and America’s continued competitiveness. He specifically addressed the Inland Waterways Capital Development Plan, a comprehensive, consensus-based package of recommendations formulated by an industry and US Army Corps of Engineers working group to improve the reliability of the US inland navigation system and its infrastructure over the next 20 years. Last April, the final report and recommendations of the Capital Development Plan were ratified unanimously by the Users Board and submitted to Congress. If adopted, this plan would better address the needs of the entire inland navigation system and provide more efficient funding for critically needed waterways infrastructure improvements that also benefit non-transportation users and the nation as a whole. The waterways system provides stable pools of water for industrial, municipal and agricultural use, creates recreational opportunities and enhances property values along waterfronts. Modern commercial lock and dam infrastructure is critical to US competitiveness in the world market, to environmental protection, to energy efficiency, to the sustainment of well-paying American jobs and to congestion relief. America’s inland waterways are a precious resource, and the envy of the world because of the natural “water highway” the waterways system provides for domestic and export commerce. Specifically, the Inland Waterways Capital Development Plan: · proposes a national prioritized list of navigation projects based on objective criteria such as economic benefit and project condition; · offers a path forward to more efficiently completing 25 navigation projects in six years rather than just six projects under the current broken business model, better utilizing tax-payer dollars and completing projects on time and on budget; · seeks standardization and design centers of expertise; · creates jobs and allows for increasing exports to market. “The inland waterway modernization challenge going forward is the need to create and implement an improved program for the future. We have an aging system that needs recapitalization. We have a project funding and delivery system that is too inefficient, resulting in much wasted time and money. While we now have invested the surplus in the Inland Waterways Trust Fund, that has resulted in too few finished projects. And all of this comes in the face of an unprecedented economic crisis that is severely stressing our waterway industry and the nation,” Woodruff testified. “What’s at stake if we turn our back on our waterways? If we’re prepared to turn off the lights in portions of America, stop feeding the world, cripple our manufacturing base and deprive consumers of essential goods and services, we can stop worrying about the waterways,” he continued. To date, the Capital Development Plan is supported by more than 200 industry stakeholders including national organizations, state, regional and local organizations, and companies. Among those which have endorsed the plan are the United States Chamber of Commerce, the National Association of Manufacturers, American Land Conservancy, National Corn Growers Association, National Grain & Feed Association, Steel Manufacturers Association, National Mining Association, National Council of Farm Cooperatives, and many others from diverse segments of the waterways transportation industry. The complete list of supporters can be found at www.waterwayscouncil.org. IP www.inlandportmagazine.com

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The Pic of the Valley

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he Tennessee and Cumberland River Valleys have been blessed with an abundance of

natural resources. The Tennessee River Valley Association recognizes the tremendous benefits and opportunities that our river systems provide for navigation, recreation and the environment. TRVA will occasionally highlights these valuable benefits through an email feature they call Pic of the Valley. To receive these beautiful testimonies to the grandeur of the Tennessee and Cumberland Valley Region, email Cline Jones, Executive Director of the Tennessee River Valley Association and Tennessee-Cumberland Waterways Council, at trvassoc@hiwaay.net, or visit www.trva-tcwc.org. This particular Pic of the Valley is of the legendary Delta Queen, now moored on the Tennessee River in Chattanooga, Tennessee at Coolidge Park Landing. The last fully operational, overnight passenger steamboat in the country, is the newest landmark Chattanooga hotel. This grand lady had logged over two million miles, carried over half a million passengers, and is the only boat to be inducted into the National Marine Hall of Fame while still in service. She has entertained presidents, foreign dignitaries, and a multitude of celebrities. In addition to being one of the most unique Chattanooga hotels, the Delta Queen features live music and romantic views overlooking the Tennessee River. Group tours are available, allowing visitors to learn first-hand about steam technology and the colorful history of a legendary paddleboat. IP

BARGES: The Greener Way to Go Inland barges produce less carbon dioxide while moving America’s important cargoes.

Inland barge transportation produces far fewer emissions of carbon dioxide for each ton of cargo moved. Transport by rail emits 39% more CO2, and by truck emits 371% more CO2 compared to barges, according to a recent study by the Texas Transportation Institute.

Waterways Council, Inc. 801 N. Quincy St., Suite 200 | Arlington, Virginia 22203 703-373-2261 | www.waterwayscouncil.org 26

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Tackling the Lower Mississippi’s Budgetary Shortfall T

he ports on the Lower Mississippi River have faced challenges with funding for operations and maintenance of the channel in the past. Industry has always been able to resolve these issues by working cooperatively with the Corps and Congress. We are confident that with the continued help of the leadership of the Corps, Congress and the Obama Administration, we can keep a waterway that supports 413 million tons of domestic and international cargo annually fully operational. While the maritime community is concerned about a potential shortfall in the operation and maintenance of one of the world’s greatest avenues of commerce, the situation has not yet led to significant navigation impacts. The president’s budget allocates $63 million (including $10 million in Corps Administrative costs) for the Lower Mississippi River operation and maintenance. Over the last several years, the annual expense to maintain the channel has been $104 million. During a meeting with Major General Michael J. Walsh, commander of the Mississippi Valley Division, the maritime community requested the Corps continue to maintain the channel at its authorized dimensions with the available funding while industry seeks support for additional Corps operation and maintenance funding. The navigation interests are concerned that if the channel dimensions are allowed to deteriorate in order to stretch the currently available funding over the length of the year, then it will cost more to re-establish channel dimensions than it would have to maintain them. Meanwhile, navigation interests are pursuing supplemental appropriations that would benefit shippers throughout the United States who use the Mississippi River to export their products or crops and import their raw materials.

is naturally deeper than 47 feet; however, there are several sections that require regular maintenance in order to maintain channel depth. A reduction in channel will limit the amount of cargo that can be safely loaded on ships. A reduction in channel width can increase transit times and make it more difficult to navigate the River safely.

international cargo annually is moved on the Lower Mississippi River. The New Orleans District of the US Customs and Border Protection Agency handles between $85 billion to $104 billion worth of foreign trade per year, and consistently ranks as the highest or second highest US Customs District. Louisiana ports exported about $13.4 billion worth of agricultural products in 2009, including grain that is harvested in the Midwest and shipped to Louisiana via barge so that it can be exported to world markets. 4,860 vessels called on Lower Mississippi port facilities in 2009. The Obama Administration has set a goal of doubling exports within the next five years. The users of the Lower Mississippi River agree that increasing exports is a productive way to improve the economy. In order to meet the goal, the US should be making smart investments in its export capacity, not restricting one of its most productive arteries of exports and trade.

Commerce on the River

Long-Term Solutions

The Port complex on the lower Mississippi River is of strategic national importance to the US economy and has a substantial impact on the world economy because a large portion of key commodities, such as grain, petroleum products, coal, chemicals, steel and other industrial raw materials are transported on the waterway. The fact that the river and its tributaries comprise more than 14,000 miles of navigable waterways makes it a natural distribution system that covers a wide stretch of the continental United States. Key inland markets that rely on the Mississippi and its tributaries to import raw materials and export their goods include Tulsa, St. Louis, Minneapolis, Chicago, Pittsburgh, Nashville, Knoxville and Memphis. There are five public port authorities located along 250 river miles in Louisiana. Additionally, several of world’s largest companies in agri-business, petroleum refining and chemical manufacturing operate private docks attached to processing plants or grain elevators located within this port complex. About 413 million tons of domestic and

While the immediate efforts are focused on obtaining the funding or flexibility needed to maintain the River for this fiscal year, the users of the Lower Mississippi River are also interested in pursuing reform of the Harbor Maintenance Trust Fund (HMTF), which should provide a dedicated source of funding to ensure that commerce flows freely from US ports. The HMTF is funded by a .125 percent tax on imports arriving in the US in order maintain federal waterways. In a typical fiscal year, only 50 percent to 60 percent of the funds generated by the import tax are spent on dredging and related harbor maintenance expenses. At this time, almost $6 billion of tax proceeds are available in the HMTF and are not being spent for their intended purpose. Despite the surplus funds generated, it’s not uncommon for large US ports to experience reductions in the authorized dimensions of the federal waterways they depend on. Congress should establish a firewall around the HMTF to ensure that funds collected for the purpose of maintaining federal waterways are actually used to maintain federal waterways. IP

sections of the river but is maintained to a width that allows for safe passage of twoway traffic. Most of the lower Mississippi

Port and waterway users along the Lower Mississippi River are working to resolve a potential shortfall in the US Army Corps of Engineers’ budget for maintaining a navigation channel that is crucial to the commerce of the nation.

Navigation Basics The Lower Mississippi River is currently maintained to a 45-foot channel depth and the channel is normally dredged to 51-foot depth to make allowances for the quick siltation of the River. The channel width varies in different November/December 2010

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St. Lawrence Seaway Cargo Up

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he St. Lawrence Seaway has reported a significant rise in iron ore, coal and grain shipments as it enters the final stretch of the shipping season. Total cargo shipments in November jumped by 28 percent to 4.8 million metric tons compared to the same period last year, with some sections of the Seaway seeing the highest number of ship transits for this time of the year in more than a decade. Year-to-date total cargo shipments for the period between March 31 and November 30 were 31.9 million metric tons, up 19 percent compared to 2009. The Seaway expects that figure will hit 35 million metric tons before the shipping season concludes at the end of the month. The Montreal-Lake Ontario section of the Seaway saw more than 407 ship transits in November — the highest number for that month in 12 years — as ships brought iron ore and other cargo into the Toronto/ Hamilton area and vessels transited through the system with US and Canadian grain destined for overseas markets. “The double digit tonnage increases we saw in November confirm that an economic rebound from a deep recession is underway,” said Rebecca McGill, Director of Trade Development for the Saint Lawrence Seaway Development Corporation. 28

“The North American steel industry is faring much better than last year with strong numbers reported for iron ore, coal, coke and limestone cargoes, while U.S. grain exports are having their best season in more than a decade.” In November, coal shipments were up 92 percent to 481,000 metric tons compared to the same month in 2009. Coke, which is used as a fuel in blast furnaces during the manufacture of steel, was up 28 percent to 130,000 metric tons. Iron ore shipments remained strong during the month, up 25 percent at 981,000 metric tons. Total grain shipments increased by 29 percent in November to 1.8 million metric tons compared to 2009. Year-to-date figures showed iron ore shipments up 49 percent to 8.9 million metric tons, while grain had increased by 9 percent to 7.8 million metric tons compared to 2009. McGill added, “The Great Lakes ports of Burns Harbor, Indiana and Duluth, Minnesota are regularly seeing ships loaded with wind components as the tonnage for this fast-growing renewable energy industry has more than quadrupled in the Great Lakes Seaway System for 2010 over the preceding year.” www.inlandportmagazine.com

“We’ve seen significant increases in coal, grain and steel movements during 2010,” said Peter Laman, port director for the Port of Indiana-Burns Harbor. “But our biggest increase is in project cargo shipments which are 10 times last year’s totals. This was driven by a few large tank and wind farm construction projects, including one that brought in 11 ships of windmill components. We also had our first exports of U.S. manufactured windmills, which were shipped to Nova Scotia.” The Port of Oswego received three large shipments of aluminum from Sept Iles in November alone. Jonathan Daniels, executive director of the Port said, “Those shipments accounted for nearly double the amount of aluminum we usually move through our port. We serve as a distribution center for four companies and the aluminum will be used by the food and beverage industry, and in the manufacture of automobiles and appliances – a positive economic indicator.” The Great Lakes-St. Lawrence Seaway is responsible for approximately 75,000 jobs in Canada and 150,000 in the US. It annually generates more than $4.3 billion in personal income, $3.4 billion in transportation-related revenue, and $1.3 billion in federal, state and local taxes. IP November/December 2010


GeoSwath Plus Compact Ideal for Small to Mid-Sized Port Surveys Truly Portable Shallow Water Swath Bathymetry for Small Boat Operations at Port and Harbor Facilities

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eoAcoustics, a leading manufacturer of sonar seabed survey equipment, released the GeoSwath Plus Compact for wide swath bathymetry earlier this year. Ideal for inspection and maintenance surveys for port authorities on a budget, the shallow water multibeam and side scan system is based on one of the most successful phase measuring bathymetric sonars on the market, the Geoswath Plus. GeoSwath Plus Compact offers efficient simultaneous swath bathymetry and side scan seabed mapping with accuracies that have been shown to exceed the SP-44 ed.5 Special Order IHO standards for hydrographic surveys. Available in three frequency versions, 125, 250 and 500 kHz, the system has depth performance of 200m, 100m and 50m respectively. The applied phase measuring bathymetric sonar technology provides data coverage of up to 12 times the water depth, giving unsurpassed survey efficiency in shallow water environments for hydrographic mapping, dredging, environmental and inspection surveys, as well as military applications like rapid environmental assessments and mine counter measures. The system’s splash protected deck unit is designed to be deployed on small vessels like dinghies and jet skis. The deck unit operates on 24 V power supply with only 40 W consumption and connects to the operator’s laptop computer. The wet-end consists of an integrated mounting for the newly designed dual transducer head and all ancillary sensors. It can be pre-calibrated, allowing for fast installation on the smallest boats of opportunity, ensuring the user spends time on the water, getting the survey done. GeoAcoustics is a wholly owned subsidiary of Kongsberg Maritime and GeoSwath Plus Compact completes the company’s portfolio of multibeam systems, ranging from the full ocean depth to this truly portable solution for small craft shallow water operations. IP

(Above) The Wet End: The compact unit for over-the-side mounting holds the dual head transducer together with the ancillary sensor. It can be pre-calibrated and weights as little as 17 kg. (Below) The Dry End: GeoSwath Plus Compact splash protected deck unit. The unit connects to the operator’s laptop or directly to monitor and keyboard. It operates on 24 V with 40 W consumption.

New Concrete Hammer Drill Affordable for Ports on a Budget C

S Unitec’s Model 2 2406 0010 Hydraulic Rotary Hammer Drill delivers 3,400 blows per minute for percussion drilling of concrete, rock and masonry. This tool uses SDS-Plus shank carbide tipped bits up to 1” diameter for cost-effective drilling of concrete anchor holes and thru-holes. Additional applications include piping and mechanical openings, as well as other construction and repair work. This versatile hammer drill can also be switched to a rotary mode for drilling of steel and wood. Ideal for use in marine utility and construction environments, this Hydraulic Rotary Hammer Drill is especially suitable for port and harbor maintenance, as well as municipalities and power transmission and distribution applications, as well as other industries where hydraulic power is the norm. Features of this hydraulic powered drill include a safety clutch that protects against overloads and jamming; an adjustable side handle with depth gauge; and sealed gears with permanent lubrication. It weighs only 15 lbs. CS Unitec supplies the drill with a water flushing attachment that suppresses concrete dust. The Hammer Drill works at 1450 PSI up to 2000 PSI operating pressure. The flow range is 5.8 to 13.2 gpm. The unit includes hydraulic hoses with 3/8” Flush-Face (FF) connectors for supply and return, an adjustable grip handle and a carrying case. IP November/December 2010

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Industry Notebook The US Department of Transportation’s Maritime Administration (MARAD) is providing $4 million to help prevent the spread of aquatic invasive species found in cargo ships plying the Great Lakes and America’s inland waterways. “This funding demonstrates the Obama Administration’s commitment to protecting the Great Lakes while supporting economic revitalization of the entire region,” said Secretary of Transportation Ray LaHood. The funding is part of the administration’s Great Lakes Restoration Initiative, the largest federal investment in the Great Lakes in 20 years. The initiative’s priorities for action—developed by a task force of 16 federal departments—are combating invasive species, cleaning up toxics, protecting wetlands from pollution, and restoring wetland and habitats. “As the largest freshwater system on Earth, the Great Lakes are a national treasure, and the foundation of a multi-billion dollar regional economy. Working together, we will protect this essential resource for the benefit of communities throughout the region, and the Nation as a whole,” said Maritime Administrator David T. Matsuda.

Let us spread your message! Email your company or organization news to djones@inlandportmagazine.com

Through a cooperative agreement with the Northeast Midwest Institute, MARAD is providing funding and technical expertise to help upgrade the Great Ships Initiative (GSI) ballast water treatment technology testing facility. The GSI facility, located in the Duluth-Superior Harbor of Lake Superior and the only one in North America, is being used to test promising water treatment technologies designed to remove unwelcome species “hitch-hiking” in ballast water tanks onboard cargo ships. The Maritime Administration also awarded a $834,000 contract to ABS Consulting of Houston, Texas, along with Great Lakes Maritime Research Institute and other partners, to conduct a year-long study reviewing investment options for the revitalization of the US-flagged Great Lakes fleet and related regional maritime infrastructure. More extensive and stringent environmental regulations slated for the Great Lakes region will likely require additional private and public investment to upgrade and/or refit vessels, ports and other infrastructure to ensure new standards are met. The study will also include an overview of existing market conditions, an inventory of the US-flagged Great Lakes vessels and regional port infrastructure, an examination of private/public sector financing options, and a benefit-cost analysis for each of the investment options. The Port of Lake Charles has launched a vessel cleaning project involving at least 1,000 new jobs will begin almost immediately at the port’s Industrial Canal facilities. The venture, undertaken by the port, in conjunction with British Petroleum (BP) and Dynamic Industries, Inc. (DII), will provide a state of the art facility for the final cleaning vessels employed as part of the massive response to last summer’s Deepwater Horizon oil spill. According to the port, it will have an immediate positive economic impact on the area, including hiring personnel and spending at local suppliers, service providers, restaurants, and hotels. The work entails final (Stage III) detailed cleaning of the vessel hulls, superstructures, decks, and confined spaces. The vessels will have undergone two levels of decontamination (Stage I and Stage II) prior to arrival at the Lake Charles facility. Each vessel must pass a Coast Guard inspection and received a certification as being properly clean before being allowed into the Lake Charles channel. An estimated six to eight million man-hours of work will be performed at Lake Charles before the project concludes. Operations at the site will take place 24 hours a day, seven days a week over the next three to six months. The port says the operation will adhere strictly to a waste management plan approved by the US Environmental Protection Agency and

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the Louisiana Department of Environmental Quality. Additionally, BP and DII are upgrading the sanitary facilities at the site, making it potentially “more attractive,” the port says, “for future possible projects.” The Port, in conjunction with BP, the United States Coast Guard, DII, and the Lake Charles Pilots, Inc. are working together to ensure that navigation of the channel will not be impaired. Similar large-scale, professional decontamination sites for final stage cleaning of response fleet ships are also being established at the ports of Pascagoula and Port Fourchon. The President of Colombia recently announced a plan to increase the permanent depth of the Magdalena River by nine feet in the sector of Puerto Salgar (Multipuerto). This will increase the depth to three times its current state, enabling oil transportation from Multipuerto in annual amounts that may reach 10 million tons in the mid-term. This depth increase will also enable transporting large amounts of coal, grains, fertilizers, and other container cargo by an amount of 5 million tons. All of this represents more than what is currently being transported through the three sea ports of the Colombian Caribbean (Cartagena, Barranquilla and Santa Marta). The passage of the Diesel Emissions Reduction Act (DERA) by the US Senate Environment and Public Works Committee (EPW) is being hailed as a major step in continuing “a vital clean air program that has benefited communities in every single state in the nation,” according to Allen Schaeffer, the Executive Director of the Diesel Technology Forum (DTF). DERA (S. 3973) is a five-year reauthorization of the highly-successful program created in 2005 to establish voluntary national and statelevel grant and loan programs to reduce diesel emissions by upgrading and modernizing older diesel engines and equipment. The bipartisan legislation was introduced on November 18th by US Senators George Voinovich (R-OH) and Tom Carper (D-DE) and cosponsored by several of their colleagues including EPW Chair Barbara Boxer (D-CA) and Ranking Member James Inhofe (R-OK). “Chairwoman Boxer and Ranking Member Inhofe are to be commended for their bipartisan work on DERA to help modernize older diesel engines and improve America’s air quality,” Schaeffer said. “DERA has helped clean up tens of thousands of diesel engines. It’s been incredibly cost-effective—EPA estimates that every federal dollar invested in DERA translates into at least 13 dollars in health benefits. This cost effectiveness is actually higher thanks to state and local matches that stretch the federal DERA dollars. November/December 2010


DERA funds also support new and existing jobs in clean diesel manufacturing, as well as local jobs in installing and maintaining the new diesel technologies. DERA is one of the few environmental issues to gain bipartisan support. “While it’s been difficult lately to find environmental issues that have near-universal bipartisan support among Democrats and Republicans, DERA has proven to be one program to do so,” Schaeffer said. “In addition, a unique and diverse coalition of more than 500 environmental, health, industry, labor and government organizations are actively working for DERA’s reauthorization. We are hopeful the full Senate and US House will continue this bipartisan effort and reauthorize DERA during the lame duck session.” Why is DERA important? DERA funds are used to clean up the nation’s older, dirty diesels, by retrofitting or replacing them with new technologies that significantly reduce the soot and emissions from an estimated 11 million of our oldest diesel trucks, buses, and equipment. Since 2005, the federal government has invested roughly a half-billion dollars through DERA to improve America’s air quality by upgrading and modernizing older diesel engines and equipment through engine replacements and retrofits that would include new pollution-cutting filters and catalysts. Diesel engines are the workhorses of our nation. They are reliable, efficient, and durable. That’s why diesel engines power most of the trucks that deliver our goods, the buses that take us to work and get our kids to school, the farm equipment that harvests our crops, and even the trains and ships that carry containers and other cargo to our cities. Our hospitals, airports and law enforcement rely on diesel generators for emergency power, as do local and regional power companies. Roughly a decade ago, EPA adopted the first of a series of diesel rules that have led to an unprecedented investment in cleaner diesel fuels and pollution control technologies. These rules have taken the sulfur out of diesel fuel, and have included pollution-cutting standards that are reducing emissions from new diesel engines by more than 90 percent. When all of today’s older diesels have been replaced by new models that meet these standards, at least 110,000 tons of particulate matter (or soot) and 2.6 million tons of smogforming nitrogen oxides will be eliminated from the nation’s air. To put it another way, replacing or retrofitting the nation’s older diesels with these newer, cleaner models will be the clean-air equivalent of taking 13 million of today’s trucks off the roads. The Shipowners’ Club has published its first half-yearly financial report and advised its members that no general increase will be imposed for the next policy year, 2011/12. Strong underwriting performance coupled with a small investment return result in a US$23.9M overall surplus, increasing free reserves to November/December 2010

US$159.2million. Shipowners’, the mutual P&I Club which specializes in providing liability insurance to smaller and more specialised vessels, has for the first time made public results of its half-year performance. At the same time the Club has also confirmed that no general increase will be applied to Members’ premiums at the 20th February 2011 renewal. Commenting on the recent Board decision, Charles Hume, CEO stated, “We have applied general increases during recent renewals but in view of our encouraging first half results and the challenging operating environment still being experienced by many of our Members, we are pleased to announce now that no general premium increase will be applied for the 2011 policy year. That said, underwriters will be looking closely at the claims record and premiums paid by each Member and also assessing closely the risks associated with every vessel type. It is through this sort of prudent underwriting that the financial stability of the Club will be maintained.” The results in question are indeed encouraging with the unaudited figures for the sixmonth period showing gross earned income of US$ 96.3M, which represents a 14% increase in debited income over the same period last year. In keeping with the experience of other P&I insurers, Shipowners reports a reduction in the number and value of claims despite the total number of vessels entered with the Club being reasonably constant at around 28,000 since 2007. With claims reduced and income increasing, the six-month underwriting performance is predictably strong. In this regard, Shipowners reports an anticipated technical account surplus of US$21.1M, producing a combined ratio of 75.4%. The Shipowners’ Club is a mutual marine liability insurer, providing Protection & Indemnity insurance to small vessels since 1855. The Club currently covers over 28,000 vessels from 6,322 Members worldwide and is a member of the International Group of P&I Clubs. The Club has regional offices located in Luxembourg, London, Singapore and Vancouver. IP

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31


The Last Word

Cornel Martin President and CEO, Waterways Council, Inc. How did you become involved in this industry? I grew up on Bayou Lafourche, South Louisiana, in an area where the inland towing industry is very important in supporting the oil and gas industry. My dad owned small passenger vessels that carried oilfield workers and towing vessels that pushed barges supporting that important part of the South Louisiana economy. Upon graduating from Nicholls State University in South Louisiana, I was offered an opportunity to come to Washington to work for our local congressman, Billy Tauzin, as his Legislative Assistant for Maritime Affairs. I handled all matters relating to the Coast Guard, the Corps of Engineers, and the maritime industries. Over the last nearly 29 years, I’ve always worked on behalf of, or in one of, our maritime industries. What exciting things is Waterways Council currently working on? Our number one priority at this time is seeking the adoption and implementation of the Inland Waterways Capital Development Plan. This plan was created after more than 18 months of effort by industry and Corps of Engineers experts. It is designed to resolve shortfalls in the Inland Waterways Trust Fund, improve the Corps’ process for managing and delivering projects, and set priorities for waterways infrastructure improvements across the entire system. This plan can set the course for investment in our inland waterways infrastructure for the next 20 years. Brag on your family a bit. My wife of 28 years, Cindy, is an RN and currently manages the outpatient surgery unit in an urgent care facility in downtown Los Angeles. My daughter, Samantha Elizabeth, studied theatre at The Catholic University of America and the film and television industry at the New York School for Film and Television. She currently works for a very successful producer in Hollywood and is currently working on several big projects that are sure to be big hits in the next year. She is also helping to produce a major charity gala at this year’s Kentucky Derby. My oldest son, Cornel James, Jr., is a pilot. He completed his training and earned his multi-engine commercial license at Delta Connection Academy in Sanford, FL. He flies for a business owned by my brother and sister in South Louisiana. My next son, Graham Patrick, is an actor. He has been working professionally since he was 11 years old. Currently, he has a role as a recurring guest star, Eldridge McKelroy, Jake’s friend, on the CBS

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A Revealing Look at Industry Leaders

hit comedy, Two-and-A-Half Men. He first appeared at the end of season seven earlier in 2010, and his character has continued with regular appearances in season eight in the fall of 2010 and into 2011. My youngest son, Duncan Alexander, is a Sophmore at Notre Dame High School in Sherman Oaks, CA. He is a defensive lineman on the football team, plays tuba in the band, studies Kung Fu at a local Shaolin Temple, and is an active Boy Scout. What was your favorite project or assignment you’ve been involved in during your career, and why? Prior to this year’s effort on the Inland Waterways Capital Development Plan, which is critical to the future of all who depend on our inland waterways, it would have to be my work for American Classic Voyages, which was the parent company of The Delta Queen Steamboat Company. While there, I worked on efforts to successfully secure a 10-year extension of the Congressional exemption that allowed the Steamboat Delta Queen to continue operating until November 2008, and The Project America legislation which allowed the reflagging of a large cruise ship into the US Fleet and construction of two other large cruise ships to be added to the US fleet. One of those vessels still operates in Hawaii today. What was your least favorite? I really can’t think of a project that I didn’t enjoy over the last nearly 29 years, but the one I am most disappointed in was my inability to secure investors to acquire and keep the vessels of the Delta Queen Steamboat Company operating after the bankruptcy immediately following the tragedy of 9-11-2001. The loss of those steamboats was a loss of part of our heritage. What’s the last song that played on your CD or MP3 player? I’m more of a talk radio person. I know, “boring!” It drives my wife and kids nuts. I do love all kinds of music, but if I had to pick, probably something by Frank Sinatra or Harry Connick, Jr. What accomplishments are you most proud of? I was actually very proud to be selected as CEO of Waterways Council, Inc. After having been away from Washington for several years, I was honored to be asked to come back to DC to represent our industry at this critical time. If you could go back and tell your teenage self one thing, what would that be? Don’t ever let geography limit your goals and desires. I guess I’ve successfully taught my kids that, which is why we’ve lived in New Orleans, New www.inlandportmagazine.com

York, and now Los Angeles in support of our kids’ goals and desires. 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? Impossible to protect the innocent, so I’ll pass on this one. What do you want to be when you grow up? Captain of my own boat (yacht) touring America by water. Tell us something no one knows about you. I can’t think of anything that no one knows about me. 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? There are many beneficiaries of our inland waterways, including recreational boaters, utilities and manufacturers who use water in their manufacturing process; municipal water supplies, farmers and others who rely on low cost waterways transportation; and those who benefit from flood control, hydropower, and the steady reliable pools of water created by our locks and dams. We must invest in our inland waterways infrastructure to continue to enjoy these benefits. If you make the general public understand one thing about the inland ports and waterways industry, what would it be? We must invest in our ports and inland waterways because they are good for our environment, help our farmers and many other exporters to be more competitive in world markets, create and support good American jobs, and are critical to the future economic well-being of our country. Our inland waterways “Keep America Moving!” What’s your favorite? Movie: Animal House Book: The Bible TV Show: Two-and-A-Half-Men, of course! Sport: New Orleans Saints and LSU football What piece of equipment has not been invented yet, but will revolutionize the inland port industry when it is? A lock that doesn’t fail. If you could change one thing about yourself, what would it be? I’d be younger. What was the first concert you ever attended? Sonny and Cher at the Illinois State Fair in the late 60s or early 70s. Give us your thoughts on the current state of the inland port waterway industry, where it has been, and where it is going. How can a publication like Inland Port Magazine help? We are in desperate need of investment in our inland waterways infrastructure in new construction, major rehabilitation, and operations and maintenance. We must dredge our ports and waterways to there authorized depths and expand those needed to support expanded exports. We have a great story to tell about the value and importance of our ports and waterways and their contribution to America. Inland Port Magazine can help by telling our story over and over again until our leaders in government and our citizens finally get it. IP November/December 2010


November / December Inland Port Magazine  

November / December Issue

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