Inland Port 2011 Issue V
Job Creation is Our Business
Great Lakes Going Great Guns Port of Cleveland Interview Branding Tips from Americaâ€™s Central Port FEMA Levee Map Update
IP Editorial Board
Jennifer Carpenter American Waterways Operators Sr. Vice President-National Advocacy, AWO www.americanwaterways.com
INLAND PORT MAGAZINE 2011 Issue V Volume III
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Inland Port 2011 • Issue V • Volume III
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Port of Cleveland
Driving the Great Lakes Economy
IP interviews David Gutheil, VP of Maritime Logistics, and Brian Lynch, VP of Planning & Development
FEMA Levee Certification
By Garver’s Bill Ruck, PE, PS, CFM
Marketing your port in today’s world
How to Undertake the Massive Step of Rebranding Your Property IP Interviews America’s Central Port Executive Director, Dennis Wilmsmeyer
Kirby’s Matt Woodruff Named Chairman of Waterways Council
Historic Ft. Worth Hosts NWC Annual Meeting
By Keith Garrison, Executive Director of the Arkansas Waterways Commission
Incoming Chairman Sykes Sturdivant Shares his Vision for NWC
Circumventing Jones Act Establishes Dangerous Precedent
LaGrange Celebrates Ten Years; Touts Cargo Gains, Investment, New Services
Exclusive IP interview with the new Chairman
By Don W. Miller, Jr., President of TPG Marine Enterprises
21 Sennebogen Adds New Team Members 22 WCI Reacts to Obama Proposal for Infrastructure Funding
By Michael J. Toohey, President & CEO of Waterways Council
23 Industry Notebook
SPOTLIGHT: Port of Cleveland Driving the Great Lakes Economy
Exclusive Interview with:
David Gutheil Vice President of Maritime & Logistics
The Great Lakes maritime industry recently released the results of a year-long study of the economic impacts of the entire Great Lakes-St. Lawrence Seaway navigation system. The study found that maritime commerce supported 227,000 jobs; generated $14.1 billion in annual personal income, $33.5 billion in business revenue, and $6.4 billion in local purchases; and added $4.6 billion to federal, state/provincial, and local tax revenues.
Brian Lynch Vice President of Planning & Development 4
he study was commissioned by members of the marine shipping industry, in partnership with U.S. and Canadian government agencies. Martin Associates of Lancaster, Pennsylvania, a global leader in transportation economic analysis and strategic planning, was retained to conduct the study. North American farmers, steel producers, construction firms, food manufacturers, and power generators depend on the 164 million metric tons of essential raw materials and finished products that are moved annually on the system. “For the first time we have a definitive, detailed, peer-reviewed study documenting the enormous contribution which the maritime industry provides to the Great Lakes-St. Lawrence Seaway region,” said Collister Johnson, Jr., Administrator of the U.S. Saint Lawrence Seaway Development Corporation. “The jobs sustained by the maritime industry www.inlandportmagazine.com
include not only those located directly on the waterfront – longshoremen, terminal employees, vessel operators, pilots, and truckers – but also steelworkers, miners, grain farmers, and construction workers, many of whose jobs would disappear but for a vibrant, healthy maritime industry.” The study found that in Ohio maritime commerce supports more than 28,000 jobs, with an additional 88,000 related jobs at firms that use ports to ship and receive cargo. “Ohio ports are a critical gateway for cargoes transported via the Seaway between the international marketplace and the North American heartland, said Will Friedman, President and CEO of the Cleveland-Cuyahoga County Port Authority. “This study underscores the importance of maritime transport to our economy and the need for federal policies that properly sustain our marine highways.” John D. Porcari, the U.S. Transportation 2011 Issue V
Deputy Secretary, revealed the study numbers and fielded questions from the media. U.S. Transportation Secretary, Ray LaHood, expressed his support for the study results. “This report bears out what we’ve long known – that the Great LakesSt. Lawrence Seaway is crucial to the U.S. economy. Not only is marine transportation the single most fuel-efficient and cost-effective way to haul goods from one place to another, but it also supports hundreds of thousands of essential jobs and generates billions of dollars in economic activity.” The report provides the navigation community, transportation planners, government policy makers and the general public with a realistic assessment of the contributions made by the Great LakesSeaway system to the federal, state/provincial, and local economies. The region depends on ocean vessels, U.S. and Canadian lake carriers, and barges to deliver iron ore, coal, stone, salt, sugar, grain, steel, wind turbine components, and heavy machinery to keep bi-national businesses running. Steven A. Fisher, Executive Director of the American Great Lakes Ports Association, touted the value of the report to his members, “This report validates what the Association has long contended – that the Great Lakes-Seaway navigation system is vital to the continued prosperity of the region. A multitude of maritime jobs – on land and at sea – work together to help ensure that goods and services are enjoyed by a vast customer base.”
PORT OF CLEVELAND SUCCESS A good percentage of these encouraging numbers are due to the efforts of the ClevelandCuyahoga County Port Authority. IP went to David Gutheil, Vice President of Maritime & Logistics; and Brian Lynch, Vice President of Planning & Development, to get the latest on the Port of Cleveland success story. Tell us about some of your tenants, and what they bring to the Cleveland-Cuyahoga County Port Authority. Gutheil: Carmeuse Lime & Stone operates Cleveland Bulk Terminal, our facility that handles iron ore and limestone arriving from other Great Lakes ports. The iron ore travels upstream to the ArcelorMittal Cleveland steel complex, and the limestone is transported inland via the rail network serving the port. Federal Marine Terminals (FMT), a division of FedNav Group, operates our general cargo docks. FMT specializes in the handling of steel, project cargo, and other break-bulk cargo. Essroc, part of the Italcementi Group, handles cement cargo through the port. Kenmore Company specializes in construction management and site development. It receives periodic vessel deliveries of stone, which are stockpiled on the port and then moved via truck for delivery to construction sites around our region. How do you attract new tenants? What features do you emphasize to potential clients? Gutheil: In meetings with prospective tenants we 2011 Issue V
emphasize our strategic location as the first major U.S. city on the Great Lakes in relation to the St. Lawrence Seaway, and our partnership with the large vessel companies that currently call on the Port of Cleveland – Polsteam, Wagenborg, and FedNav. Each of these vessel lines brings cargo to and from our port, providing regular service between our region and European markets. We also have an experienced terminal operator in FMT, and an International Longshoremen’s Association labor force that capably and efficiently handles various types of cargoes. When courting new companies, do you ever encounter ones that just don’t get it? Don’t understand what the Highway H2O can offer them? If so, how do you combat that? Gutheil: I wouldn’t say that we encounter companies that “just don’t get it.” Many times, we simply try to provide them with a better understanding of our capabilities and the advantages of utilizing maritime transportation on the Great Lakes and the Seaway. We need to emphasize that in many cases, moving goods via vessel through the Seaway to or from our region can be more cost effective and efficient than truck and rail options. Tell us about your Dredge Task Force. What has this group been able to accomplish, and what do you expect in the future? Lynch: The Cleveland Harbor Dredge Task Force was established in early 2010 to identify and execute interim dredged material placement actions and investigate longer-term material placement measures. The Task Force is comprised of representatives from industry, the Port Authority, the U.S. Army Corps of Engineers, the Ohio Environmental Protection Agency, the Ohio Department of Natural Resources, the Ohio Department of Transportation, the City of Cleveland, and local Congressional offices. The monthly meetings also attract concerned citizens and interest groups. Key accomplishments by Task Force members include: • Educating stakeholders on the economic importance of dredging the navigation channel. • Producing a feasibility study that identified more than 20 beneficial use sites as an alternate to a costly Confined Disposal Facility (CDF). • Completing a pilot project to cap a 58-acre www.inlandportmagazine.com
brownfield with 300,000 cubic yards of dredged sediment for redevelopment of the site. • Educating stakeholders and the community about opportunities for treating sediment not as a waste product but as a bulk commodity that can be beneficially used in a variety ways, including road construction projects and brownfield remediation. • Release of a report by the U.S. Army Corps of Engineers’ Engineer Research and Development Center on the suitability of dredge material for beneficial use. You’re averaging 12.5 million cargo tons per year now, but only a small fraction of that is break bulk goods. Is increasing that percentage a specific goal? How will you go about that? Gutheil: Increasing our break-bulk cargo is a top
goal. We are reaching out to the logistics community in our region, meeting directly with shippers, freight forwarders, and other key decision makers to educate them about the capabilities at the Port of Cleveland. We are also working closely with the Seaway to identify vessel capacity on the Great Lakes that can be matched up with opportunities for cargoes that move from this region, but not necessarily move from the Port of Cleveland. Ports are targets, plan and simple. Have you featured any specific security upgrades in the past few years, either in manpower or equipment? Are there periodic “fire drill” activities to ensure constant alert? Gutheil: We are currently working on improvements to our security plan for our property, but cannot provide specific information about these upgrades. We work closely with U.S. Customs and Border Protection, the Coast Guard, and local law enforcement to ensure we follow all procedures and protocols required by the Department of Homeland Security. What does the Port of Cleveland offer that other inland port facilities don’t? 5
Gutheil: The Port of Cleveland is the first major port of call on the Great Lakes once a vessel moves through the St. Lawrence Seaway, and we are a gateway to a large manufacturing sector in Northeast Ohio. We sit within an eight hour drive of about 50% of the U.S. market, and we have direct access to I-71, I-90, I-77, and I-80. We also have access to both the Norfolk Southern and CSX railroads directly on the Port, and upon completion of a new rail construction project we will have a local shortline railroad operator that will provide locomotive power on our port 24/7. In addition, we have more than 300,000 square feet of warehouse space on port property, a heavy lift crane with 150-ton capacity, and three mobile harbor cranes with the flexibility to handle various cargoes.
How big a role do environmental concerns play in your current operations and future plans? Gutheil: When speaking with potential clients, we note the fuel savings that can accrue by using maritime transportation as an alternative to truck and rail transportation. Lynch: A key tenet of our new Strategic Action Plan is to incorporate sustainable practices across Port activities. This includes pursuing green business opportunities and infrastructure improvement projects, and integrating environmental sustainability into the Port’s organizational fabric. The Port was a founding member of Green Marine, a bi-national initiative along the St. Lawrence Seaway and the Great Lakes to strengthen maritime environmental performance through the voluntary adoption of best management practices. The Port also advocates on policy issues critical to jobs 2011 Issue V
and the health of the maritime sector and the Great Lakes/St. Lawrence Seaway System. Do you have any significant infrastructure upgrades going on now, or planned for the near future? Gutheil: As part of its capital plan, the Port has several infrastructure improvement initiatives planned or in development. For example, the Port moved forward this year with a major capital project to build a new rail track and road enhancements at our general cargo facilities. Lynch: We have also committed to managing a lakefront nature preserve, where nature transformed a former sediment disposal site into a wildlife haven. In addition, the Port aims to take on a new role as a steward of the Cuyahoga River’s ship channel. We have also proposed taking a leadership role on critical river initiatives, including sediment management and bulkhead repairs, to protect the integrity of the channel for commerce and recreation. Are the various types of new social media a part of your plans going forward? Why or why not? Gutheil: The Port plans to enhance our communications work in a variety of ways, from revamping our website to becoming more engaged with social media. We are currently on Facebook and Twitter and plan to use both forums more strategically to reach out on Port and broader maritime issues. Describe your overall economic impact on Northeast Ohio. Gutheil: Our Port is a Great Lakes gateway and provides a critical connection between Northeast Ohio and the global economy. Recent studies analyzing the economic benefits of cargo handled by public and private maritime facilities along the downtown Lake Erie shoreline and the navigational channel of the Cuyahoga River underscore the importance of the maritime sector in our region. The data, which include both Port facilities and private docks, show that nearly 18,000 jobs and $1.8 billion in economic activity are tied to cargo moving through Cleveland Harbor. In addition, with our newly adopted Strategic Action Plan, the port plans to play a stepped-up role to secure and grow maritime jobs and economic benefits, and play a critical stewardship role on the Cuyahoga River. IP www.inlandportmagazine.com
By Bill Ruck, PE, PS, CFM Garver
he FEMA Map Modernization Program is alive and well, but changes are being made which may not be known to many waterway users until 2012. Hurricane Katrina resulted in significant administrative changes in the National Flood Insurance Program. The most visible change is that all levees on Flood Insurance Rate Maps must now be certified by professional engineers in accordance with 44 CFR 65.10. Calculations for the new FIRMs are done as if the uncertified levees do not exist. Thus, the resulting FIRM has a greatly expanded flood plain, and those landowners with federally backed mortgages are required to obtain flood insurance. Arkansas is one of the first states to receive these revised FIRMs. A number of levee owners along the Arkansas River in Arkansas have attempted to become certified. This attempt to prove that an existing levee will withstand
FEMA Levee Certification
the 100-year flood includes topographic surveying, borings and geotechnical analysis, and a complete design check of all the physical facilities – including pump stations, flood walls, crossing culverts, gates, and other closure devices. Operations-and- maintenance manuals must be created or updated to ensure that manpower and materials are available and sufficient for flood events. All levee deficiencies must be corrected by the levee owner prior to acceptance by FEMA. Replacement of old culverts is complicated by their depth below the present day pool of the River and generations of infrastructure over them. Pipe lining systems or conventional trenching must be evaluated for cost effectiveness. Several levee districts in the Little Rock area face major pipe culvert replacements costing $100,000 to $200,000 each. Many levee districts are in the repair stage of the process at the time of this writing, while only a few have corrected all known defects leading to full certification. The above process has only two www.inlandportmagazine.com
results: the levee is either certified or, if not, it is removed from the FEMA map, thus affecting the purchase of flood insurance and land use. Some believe FEMA is developing a rating program which credits the apparent benefits of the levee without correcting every defect. No details have been released at the time of this writing, but we expect to see the new policy early in 2012. In addition, FEMA has produced its RiskMAP program which enhances the NFIP map-making process using public input on physical flood hazards and programmatic challenges. FEMA published and is distributing the attached process diagram in order to ensure complete public understanding. IP
The Author Garver’s Bill Ruck is a Senior Project Manager and Port, Rail & Development Leader. As Bill told IP: “My credentials include my PE, PS, Certified Floodplain Manager, Corps Levee Inspector, and 5.2 feet of White River water in my house!” 2011 Issue V
Marketing Your Port in Today’s World
How to Undertake the Massive Step of Rebranding Your Property Illinois’ Tri-City Regional Port District recently underwent a total identity transformation, being rechristened as America’s Central Port. Their Executive Director, Dennis Wilmsmeyer, tells us how they did it, and how you can do it, too.
When and why did you decide to rebrand the Tri-City Regional Port District? We had been looking at our overall marketing and branding for about a year and were able to roll out the new name in May of this year. The thought was to better identify where we are located in the country and to convey that to anyone who heard our name. We believe that “America’s Central Port” conveys that and focuses the reader on the middle of the country. We created a new logo at the same time. We wanted a very visible and clearly identifiable logo that would quickly convey what we do: intermodal transportation with barge, rail and truck. Nothing abstract. This is a very straightforward industry, and we didn’t want someone to have to ponder what our logo meant. Simply put: It’s transportation. Putting a new name and image on a company is no small task. Did it turn out to be a much larger undertaking than you first thought? Are you still walking around the offices thinking, “Augh! We forgot the coffee mugs and lapel pins!” The rebranding effort did take longer than originally envisioned, but we also didn’t want to rush through the process. A lot of thought and time were spent on getting it right, instead of on just getting it done. We have an incredible staff who devoted a lot of time, but in the end, made it all look so easy. You’re also very active with social media. How has your presence on Twitter and Facebook translated into increased business for the port? Is it really worth the time and effort it takes to stay on top of things like that? The speed in which our culture gets news seems to be increasing at an exponential rate. The younger generation continues to push the threshold for more news at a faster pace, for quicker technology and for staying in constant touch with one another via social media. While our preference has and probably always will be to do business face-to-face, we
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realize that social media sites are becoming more accepted in conducting business. We will continue to progress with social media, while still conducting business the good old fashioned way. What is the status of your recent Business Development Survey? How can that process help you in the future? We are always trying to improve ourselves and one of the best ways we have found to do that is to poll our customers and tenants. We know that if we can meet their needs and expectations, they become champions for us to help attract others to our property. Brag on your recent Award for Excellence in Economic Development. Give us a brief rundown of that project. The Excellence in Economic Development Award was presented to us by the
International Economic Development Council at their annual conference in September, which annually honors communities for their economic successes. The award was given for “A Military Base Conversion Success Story” in the category of Real Estate Redevelopment and Reuse for communities with populations of 25,000 to 200,000. We were very pleased to be recognized for this award, which highlights well over $300 million worth of public and private investment over the last nine years on the 850-acre former Army Base that we now operate. More important than the investment is the number of companies that have located here because of our strategic location. The award is a testament to the tireless efforts of our local communities and staff to make the conversion of this property from public to private, such a success. We greatly appreciate the honor. Are your facilities strong in all intermodal areas? Are you looking to strengthen one aspect or another? Our intermodal capabilities are very strong and will soon be enhanced further. Year in and year out, our operators transload more than three million tons of 10
dry and liquid bulk products, as well as general cargo. Barge, rail and truck are what they do on a daily basis. One area that we continue to try to improve on is the speed with which we handle rail cars. Our operators do a tremendous job but the track layout and infrastructure are inhibiting factors. We are addressing that with a new 9,000-foot rail loop that should be available for use this year. In addition, we soon will be breaking ground on our new South Harbor, that will tie in with the rail loop and very efficiently handle unit trains. What do your tenants bring to the table in making America’s Central Port a force in marine transportation? Our marine tenants are our operators. They handle all aspects of the unloading and switching of barges, to scheduling rail car moves and trucks in order to ensure the barge is unloaded on time. Their customers want efficient and cost-effective movement of their products, and they get that time and again
with our operators. They are here every day of the year and 24 hours a day to make sure that all expectations are met. We couldn’t ask for anyone better. Are you continually courting new tenants? How does that process work for you? Without our tenants, we do not exist. We keep that in focus at all times. Attracting new tenants is a full-time job, but we have found that the better job we do with retaining our current tenants, the more champions we have in our corner when a prospective tenant calls for references. Like most ports, we are public, but not supported by any tax revenues. We have to earn the respect of our tenants each and every day. We try to treat our long-term tenants the way we would a prospective new tenant, which is just the way we would want to be treated. When will the Levee Relief Wells be ready? Any other significant infrastructure projects going on right now? We are installing 10 new levee relief wells this fall. In addition to the rail loop
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and South Harbor projects previously mentioned, we are looking at nearly $1 million worth of improvements to our existing North Harbor this Winter. Our Master Plan, which we completed earlier this year, identified 22 new projects that we intend to construct totaling $58 million. What advice would you have for port entities out there considering a rebranding effort? Go for it. Our industry needs to be “freshened up”. The river industry is very traditional, very stodgy, and very tired. We can’t seem to get any traction at the federal level in terms of being on the same par as the other modes. Many environmentalists don’t understand how much better barge transportation is in terms of emissions reduction, safety or cost-effectiveness. We need new ideas, we need a stronger voice, and we need better marketing of our industry. If a Port re-branding effort can help to change the existing perceptions, then it is a worthwhile move. What about you personally? Are you planning on being more visible in various industry organizations, mirroring the port’s increased public visibility? My focus remains on my family and community by bringing the many projects we have planned to reality. With that said, I believe that staying up on industry issues is important. As a result, I currently am a board member of the National Waterways Conference (NWC) and Inland Rivers, Ports and Terminals (IRPT). I look forward to serving as IRPT’s president for a two-year term beginning at the annual conference in May 2012 in St. Louis. Come join us for a Cardinals game! IP For more, visit www.americascentralport.com.
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Kirby’s Matt Woodruff Named Chairman of Waterways Council
t its Annual Meeting on October 19 in Pittsburgh, the Board of Directors of Waterways Council, Inc. (WCI) elected new officers for 2011-2013. Kirby Corporation’s Director of Government Affairs, Matt Woodruff, was named Chairman. Other new officers include: • Vice Chairman, Steve Little, (President, Crounse Corporation); • General Counsel, Dan Mecklenborg, (Senior Vice President, HR & Chief Legal Officer, Ingram Barge Company);
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• Immediate Past Chairman, Rick Calhoun, (President, Cargo Carriers). All other officers were re-elected to their current positions. The following new members were elected to WCI’s Board of Directors: • Gary Anderson Vice President, Grain Marketing, CHS, Inc; • Bruce Hahn. Executive Vice President, Marquette Transportation; • Martin Hettel, Manager, Captive Services, AEP River Operations; and • Michael McLean, Senior Vice President, CONSOL Energy, Inc. “The Board of the Waterways Council is purposely diverse, with representation from across the waterways system and across the spectrum of waterways users, including shippers, carriers, ports, service providers, labor and agricultural interests,” said new Chairman Woodruff. “We are united in the view that maintaining a safe, efficient and reliable system of waterways is essential to our nation’s future. The sustained commitment of high level executives from our member organizations to serve as officers and directors of WCI is a testament to the importance of the Council’s work to these groups.” Waterways Council, Inc. is a leading national public policy organization advocating a modern and well-maintained national system of ports and inland waterways. The group is supported by waterways carriers, shippers, port authorities, shipping associations and waterways advocacy groups from all regions of the country. For more information, visit www. waterwayscouncil.org. IP 2011 Issue V
Historic Ft. Worth Hosts NWC Annual Meeting Exclusive Interview with New Chairman, Sykes Sturdivant By Keith E. Garrison Executive Director Arkansas Waterways Commission
Outgoing Chairman Fred Caver with NWC President Amy Larsen and incoming Chairman Sykes Sturdivant.
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he Hilton in downtown Fort Worth was the venue for the 2011 Annual Meeting of the National Waterways conference. The hotel has the distinction of being the last place President John F. Kennedy spent the night before his assassination the next day in Dallas. Historic photos of Kennedy’s visit to Fort Worth grace the walls of the hotel. Fort Worth seems not to acknowledge that there has been a severe economic recession. The prosperous city’s downtown sparkles and city planners showed off their plans to embrace the Trinity River which flows nearby, with visionary plans for expanded parks and facilities for boating and other uses. Fort Worth mayor Betsy Price welcomed the NWC and praised the organization for adopting a holistic view of water resources. The conference was hosted by the Tarrant County Regional Water District. Major General Bo Temple elaborated on the conference theme by stressing that changing conditions will challenge water resource stakeholders to adapt and find ways to work together. He praised the “tremendous partnership” which accomplished the response to, and recovery from, Hurricane Katrina and the 2011 spring flood of the Mississippi Valley. He cited tens of billions of dollars in flood damage averted because the Mississippi River and Tributaries flood response plan and infrastructure worked as designed. MG Temple presented outgoing NWC board chairman Fred Caver and President Amy Larson awards for their accomplishments in reviving the NWC following a series of misfortunes prior to the employ of Mrs.
Larson. The organization is now financially sound, with a growing, diverse membership. MG Temple said, “Together, we can sustain and improve” our national water resources and infrastructure. Sykes Sturdivant, the incoming chairman, praised Mrs. Larson for her work. He alo presented a commemorative dinner plate, custom-fired from Mississippi “mud,” to Caver, calling him a “hero” for his leadership in rescuing the NWC. This new effort to extend federal control to previously unaffected waters is especially relevant to the broadened, and more diverse membership base of the NWC as reflected by attendees at the Fort Worth conference. A similar battle was waged under President George HW Bush’s doctrine of “No Net Loss of Wetlands.” Regulatory overreach and conflicting rules from several federal agencies resulted in Draconian, nightmare scenarios for developers and landowners, including prairie farmers and western ranchers who suddenly found their lives and livelihoods confounded by, incredibly, the Rivers and Harbors Act of 1899 which provided federal regulation of dredge and fill materials! Suddenly, farm ditches became “waters of the United States” and mud on tractor tires was considered dredge material subject to federal regulation. One contractor served prison time for failure to secure a 404 permit. His crime: construction of an artificial wetland for duck habitat. Fort Worth, in drought-parched Texas, was the ideal venue in which to explore local and state water development challenges, many or all of which are affected by federal regulation. The state of Texas has its own water resource plan, developed over decades and established by the state legislature, which has produced a far-reaching vision and action plan. However, Texans feel their plan is unnecessarily constrained by federal EPA intervention which they regard as “one size fits all”, top-down governance which fails to acknowledge and accommodate conditions unique to Texas. Texas Water Development Board Chairman Edward Vaughn said the Texas population is expected double its present size by 2060, as water resources decline. Out of the gloom of growing federal regulation and declining funding, a theme emerged as articulated by NWC President Larson. Congress and the administration must understand that water resources projects are not “earmarks.” They are the result of prior Congressional approval, extensive study of economic benefit and environmental impact, vetted and peer-reviewed and their benefit to the nation must be demonstrated. They create jobs, both during their construction but also far into the future as the foundation and impetus for economic development. In short, water resource projects are investments, and as such should be considered apart from earmarks and the budget requests of individual Congressmen. IP 14
Incoming Chairman Sykes Sturdivant Shares His Vision for NWC Congratulations on being elected as the new National Waterways Conference chairman. How did that come about? I was fortunate to have the opportunity to serve as Vice Chairman for the last two years, while Fred Caver served as Chairman. During that time, NWC has transformed into a broad-based umbrella organization representing all water resources interests, and I am proud to have been part of the process. As a fundamental guiding principle, we believe that working together we can accomplish much more than we can separately as we promote sound, balanced policies and sufficient funding for a healthy and robust water resources infrastructure. I am honored to have the support of our membership and the opportunity to continue Fred’s good work as chairman and I look forward to working with our President, Amy Larson, and Carole Wright, NWC’s Director of Internal Operations – and the person who keeps us all straight. Having served on many boards and in my private business, I have learned that support and competence of my staff equals success. Amy Larson and Carole Wright put together some strong sessions. Were you and the rest of the NWC leadership pleased with how the annual conference went? Our annual meeting was a tremendous success, with record attendance and sponsorships, and I commend the entire planning team for their efforts. We had a terrific program covering the wide range of issues facing us: the growing regulatory and oversight roles being asserted by the Federal government and the resulting implications for all of us; the Mississippi River flooding and the importance of restoring the designed system back to where it was; the coming of the Panama Canal expansion and its impact on the economy; the inland waterways trust fund’s fiscal challenges and future direction; and a challenging climate in Washington, to say the least. Our meeting program, as well as the opportunity to meet with senior Corps leaders and industry partners, were equally important in demonstrating how valuable our annual meeting is to industry stakeholders, and I am looking forward to serving as host next year in Tunica, Mississippi. What are your thoughts on what outgoing chair Fred Caver was able to accomplish during his tenure? Fred Caver’s most distinguishing accomplishment was back in 2008 when he, as part of a search committee, hired Amy and Carole to run the National
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Waterways Conference. Under his tenure, we also restructured our membership, guided by the understanding that the real strength and sustainability of NWC is its broad-based, geographically diverse, grass roots membership. We have increased our membership, and with Fred’s leadership, we are the premier “go to” water resources organization in Washington. What initiatives are on your agenda as you and the rest of the new NWC officers take the helm? My agenda is to foster the relationships that Amy, Fred, and I have made over the years in Washington to tackle the many issues that face the water resources community. In an environment of partisanship in Washington where spending is being cut and no “earmarks” is the theme, we must focus on where the spending needs to be cut, certainly not on water infrastructure. We must continue our efforts to convince Congress and administration that the nation cannot survive without sound investments in water infrastructure. For example, the Mississippi River and Tributaries Project (MR&T) just saved this country $108 billion and why can we not invest $1 billion to restore the MR&T project back to where it was before the flood? In this time of fiscal austerity, we must get back to basics. Water projects are essential to the nation’s economic vitality, environmental health and competitive position within the global economy.
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Congressman Bennie Thompson confers with Sturdivant.
What are your thoughts on President Obama’s recent suggestion of a user fees for locks, as part of a user financing system on the inland waterways? What do you expect from the Congress on this issue? While I am pleased that the administration acknowledges the need for more investments in our inland waterways, the approach is not
workable. The Inland Waterways Users Board has proposed a comprehensive funding and project delivery plan which the National Waterways Conference supports. The plan would increase the user financed fuel tax by 6 to 9 cents per gallon of diesel fuel and would optimize taxpayer investment by completing projects on time and on budget.
While the industry has advocated for the tax increase, the pledge in Congress not to raise taxes is problematic. We stand ready to work with the administration, Congress, and the Users Board to craft a viable long-term funding mechanism for our nation’s inland waterways system. We must recapitalize our nation’s aging infrastructure in order to remain competitive in the global market.
works. In 2005, Hurricane Katrina hit our gulf coast and the Yazoo-Mississippi Delta Levee Board volunteered to mobilize there with all of our equipment and staff. That event was probably the hardest on our staff, as the heavy equipment
Let’s talk about the Yazoo-Mississippi Delta Levee District. Handling flooding is literally your business. Did things generally go according to plan during the flooding crises earlier this year? The great flood of 2011 was handled on the Yazoo-Mississippi Delta Levee (L-R) Senator Thad Cochran, Board’s 100 miles of levees from Memphis Yazoo-Mississippi-Delta Levee Board Chief Engineer Kelly south as well as could be expected. Our Greenwood, and Sturdivant. staff worked around the clock and did an excellent job. This was the biggest test of operators were having to deal with finding people not only our levee but all of the other levees on in ditches who had lost their lives in the hurricane. the mainline Mississippi River and they all held the flood waters back and saved this country $108 We shall never forget 2005 and 2011. billion in potential damages. How was your particular area, Tallahatchie County, affected? Of your almost 15 years of service with YMDLB, In Tallahatchie County, Mississippi, where I am was this year the worst? from, we were blessed with the Upper Yazoo This great flood of 2011 rivaled the great floods of Project (UYP). This project is why I have served 1927 and 1937. With no loss of life and billions of dollars in potential damages saved, we proved that on the Yazoo-Mississippi Delta Levee Board. This our system as designed by the Corps of Engineers project involves the dredging of the Coldwater,
Tallahatchie, and Yazoo River system. We have four reservoirs: Arkabutla, Sardis, Enid, and Grenada that have outlets that flow through the Coldwater, Tallahatchie, and Yazoo River System. The reservoirs could not function properly without the outlets being dredged. Fortunately for Tallahatchie County, the dredging had just been completed in 2010, so that the massive rainfall did not cause major damage. Unfortunately, Quitman County which is located above Tallahatchie County did flood in 2011 as the dredging had not reached Quitman County. This project is still ongoing and has the backing of the environmental community and government. Was your group able to identify any areas of response that you can improve upon in the future? Yes, the Mississippi Valley Flood Control Association and George Grugett had all of the engineers with the levee districts along the Mississippi River come together to identify any areas that will need additional work and repairs before the next flood event. The Yazoo-Mississippi Delta Levee District identified one place where the sand boils were particularly bad and corrective action will be to install relief wells in that location by the Corps of Engineers to equalize the pressure on both sides of the levee to decrease the risk of any levee failure. IP
2011 Issue V
Circumventing Jones Act Establishes Dangerous Precedent By Don W. Miller, Jr. President, TPG Marine Enterprises
read with disappointment James Broder’s article “Oil Reserves Sidestep US Vessels” in the August 23rd New York Times. As the US jobs situation continues to be mired in the doldrums, it is regrettable the Obama Administration has seen fit to ignore the possible use of domestic carriers by waiving the Jones Act and using foreign vessels in the transportation of 20 million barrels of US oil reserves shipped to east coast oil refineries from Texas and Louisiana in an effort to offset petroleum shortfalls related to the conflict in Libya. While the oil shipments were large (most of them 500,000 barrels or more), I do not believe there was not enough urgency to require they be shipped on 500,000-barrel capacity ocean-going tankers, bearing foreign flags. Had the orders been broken into 150,000 barrel shipments, domestic coastal barges could have been used and employed up to 30 American cargo vessels and 400 American sailors. Another ten million barrels have yet to be shipped. While it is unfortunate that the US doesn’t really export oil any longer and our remaining fleet of large capacity oil tankers works the west coast between California and Alaska, I believe we could have accomplished this project with existing US-flagged boats and barges. Had the Administration and the oil companies elected to honor the spirit of the Jones Act, it would have sent a great message to the rest of the nation regarding the importance of the American worker in tough financial times and under unusual labor conditions. Broder’s article is filled with quotes from congressman Peter King of New York and American Waterways Operators VP, Christopher Coakley, lamenting the missed opportunity for American jobs in a project designed to take fuel price pressure off the U.S. middle class. From my perspective, this event is symptomatic of a larger issue related to the protection of the American laborer. The 90-year old Jones Act requires purely domestic cargo to move on US-flagged ships excepting very unusual circumstances. In an effort to get the reserves to refineries quickly, Washington met the Jones Act waiver requirements necessary to employ foreign ships in the enterprise over the last seven weeks.
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Still, the spirit of the law should have driven conversations and strategies between Pennsylvania Avenue and the US waterways brain trust to get this done with domestic crews and carriers. We saved a little time and some money for the oil companies. We did not take care of our people. The decisions made were akin to shipping American jobs overseas. Literally. This alludes further to the apparent national invisibility of the US waterways in the scheme of critical transportation of raw materials and finished goods. People who live near the waterways get it. Grain, coal, liquid fuel, steel, and a host of other materials require the success of the US waterways for “green”, economical movement of goods from point A to point B. Washington’s plan to double exports by 2014 is dead in its tracks without the viability of the waterways and its healthy infrastructure and family wage jobs. And yet, the nation and our lawmakers have annually ignored the need to invest in the maintenance of the locks, dams, and
ship channels that are that infrastructure. Putting America back to work to repair and upgrade the waterways would help alleviate the unemployment burden in the country and would pay for itself in transportation efficiency and GDP growth. We cannot – we must not – bypass the Jones Act and its protection of the American worker and waterways security. We fail to invest in our transportation infrastructure at the peril of our international competitiveness. As a lifelong waterways advocate and as a citizen I call on all our lawmakers to do the right thing and make sure we keep our commercial waterways healthy and its workforce robust. Everyone in the country: every consumer, every voter benefits from our success. IP TPG Marine Enterprises operates several harbor services on the Ohio River and a stevedoring business near Chicago, as well as pioneering software development, and maritime consulting, marketing, and advocacy. www.tpgmarine.com
LaGrange Celebrates Ten Years; Touts Cargo Gains, Investment, New Services D
ouble-digit cargo gains, a new container service and more than $100 million invested in Port facilities highlighted Port President and CEO Gary LaGrange’s annual address, sponsored by the International Freight Forwarders and Customs Brokers Association of New Orleans. LaGrange, who marked ten years at the Port of New Orleans on September 1, also took time to reflect on the last decade. “Together, we’ve been through a lot,” he told the crowd at the New Orleans Hilton Riverside. “Whether it was 9-11, steel tariffs, Hurricane Katrina, oil spills or the recent high-water event, we’ve emerged as victors, stronger and more resilient than ever.” LaGrange cited total general cargo gains of 15 percent through the first six months of 2011, including a 19 percent gain in breakbulk cargo and a 15 percent gain in container volumes. According to terminal data, 241,000 TEUs (twenty-foot-equivalent-units) moved through the Napoleon Avenue Container Terminal during the first six months of 2011. The total is up 15 percent compared to one year ago and puts the Port on pace to shatter 2010’s record year of 427,000 TEUs. LaGrange cited a recent decision by CMA CGM, a French container shipping line, to return its Gulf Bridge Express service to the Port of New Orleans Oct. 1. The service gives the Port a new weekly direct call to Caribbean and Central and South American ports. “We are reaping the benefits of the investments we have made at the Napoleon Avenue Container Terminal,” LaGrange said. “There is room for continued expansion of the terminal and we intend to stay a few steps ahead of the market’s demand as the container trade grows in the Gulf of Mexico.” The Port invested $38 million last year alone into the terminal, including the purchase of two new container gantry cranes and the expansion of the terminal’s
marshalling yard. Imported steel, a mainstay for the Port, is also experiencing strong gains so far in 2011. “Steel tonnage is up nearly 21 percent compared to a year ago,” LaGrange said. “And all indications point to moderate gains continuing.” Other traditional cargoes are experiencing large gains, as well. Frozen poultry for export is up 58 percent, forest products are up 29 percent and imported coffee is up 19 percent so far in 2011. The gains coincide with an 18.3 percent uptick in ship calls. New Orleans Cruise Industry Returning to Pre-Katrina Days The cruise industry is robust at the Port of New Orleans. “We welcome the biggest and brightest ships in the industry, with three new ships set to sail from New Orleans,” LaGrange said. “With these new cruising options, we will have the ability to handle nearly 1 million passengers in 2012. That’s by far a new record for the Port, making New Orleans a top ten cruise port in the nation.” Nov. 5 marked the beginning of a whirlwind nine days for the Port of New Orleans, as the first of three new and larger cruise ships called the Crescent City home. The new additions doubled the Port’s cruise capacity, bringing the total number of homeported ships from two to four. The 2,052-passenger Carnival Elation will sail year-round four- and five-night cruises to Cozumel and Progresso, Mexico. The ship replaces the Carnival Ecstasy, which replaced the Carnival Triumph September 22. Royal Caribbean Cruise Line’s 3,114-passenger Voyager of the Seas will sail seasonal seven-day western Caribbean itineraries. The ship will be homeported in New Orleans during the winter cruise season from November to April. The 2,974-passenger Carnival Conquest will sail year-round seven-day www.inlandportmagazine.com
itineraries to both eastern and western Caribbean ports of call. With the arrival of the Conquest, Carnival will have two ships homeported in New Orleans for the first time since Hurricane Katrina. The three new ships join Norwegian Cruise Line’s 2,018-passenger Norwegian Spirit currently sailing seven-day western Caribbean cruises from New Orleans. In the fall of 2012, the Norwegian Spirit will be replaced by the newer and larger 2,348-passenger Norwegian Star. “This is truly the most exciting time ever for cruising in New Orleans,” said Port President and CEO Gary LaGrange. “We have worked hard to regain the trust of the cruise industry following the events of 2005. By our calculations, the Port of New Orleans is on track to handle nearly one million cruise passengers in 2012, cementing our place as a top 10 cruise port in the United States.” Carnival’s two cruise ships will homeport at the Erato Street Cruise Terminal and Parking Garage, which opened in the fall of 2006. Norwegian Cruise Line and Royal Caribbean will share the new Julia Street Cruise Terminal – which is currently nearing the end of a $17 million complete renovation. Royal Caribbean’s Voyager of the Seas is the largest cruise ship ever to homeport in New Orleans. Prior to the arrival of the new ships, the Carnival Triumph and Norwegian Spirit combined for a capacity of 4,776 passengers. With the additions, the combined passenger capacity of the four cruise ships is 10,158 passengers per voyage, a 112 percent increase. Economic impact studies determined the cruise industry contributes $226 million annually to the local and regional economy and supports 2,800 jobs. Inland Cruising Returns In addition to the popular cruise lines sailing regularly from New Orleans to the Caribbean, LaGrange pointed out inland cruising on the Mississippi River will return in 2012, as well. American Cruise Line will debut a new sternwheeler built for navigating the Mississippi River named the Queen of the Mississippi in June. Travel Dynamics International will begin sailing its 257-foot Yorktown coastal ship from New Orleans in November 2012. In April, the Great American Steam2011 Issue V
boat Company will return the American Queen to New Orleans and Blount Small Ship Adventures will begin sailing inland itineraries aboard the Grande Caribe in March. The surge of cruise activity is not coincidence. Port officials launched aggressive, multi-year public relations campaigns through travel professionals and cruise lines over the last five years to ensure the cruising public knew New Orleans’ tourism infrastructure is better than ever. And Port officials are not resting on their laurels. Plans are underway to further expand cruise capacity with a third cruise ship terminal at the Poland Avenue Wharf. Shipping Lines Add New Service to Napoleon Avenue Container Terminal CMA CGM and CSAV have announced the addition of New Orleans to the Gulf Bridge Express service, which links the Gulf Coast with the Caribbean and South and Central American ports. “The upgrading of this service allows CMA CGM to strengthen its coverage of the US Gulf and the Caribbean, where its network is already significant, broadening the scope of the service for its customers,” said CMA CGM Vice President Antilles Guyane. “The direct call to New Orleans provides new opportunities for CMA CGM imports as well as exports, through our dedicated hub of Kingston, Jamaica.” The company, based in Marseilles, France is the third largest shipping company in the world. The first Gulf Bridge Express vessel called on the Port’s Napoleon Avenue Container Terminal October 1. The service is jointly operated by CMA CGM and Compañía Sud Americana de Vapores, a Chilean shipping line with an extensive network of shipping services in Latin America and worldwide. CSAV has a vessel sharing agreement with CMA CGM to also provide ships that will be employed in the service. IP 2011 Issue V
National Waterways Foundation Making Waves
he National Waterways Foundation (NWF) has produced a new brochure, “Waterways: Vital to the Nation,” that captures the key findings of the January 2011 study by the University of Tennessee Center for Transportation Research. The study, “Toward a Full Accounting of the Beneficiaries of Navigable Waterways,” addresses the broad range of beneficiaries of America’s inland waterway pools and channels. Specifically: • Creation and sustainment of jobs for American workers: America’s inland waterways system provides thousands of family-wage jobs in related industries that help to move the 624 million tons of waterborne cargo transported on the waterways system annually. • Shipper savings: For the entire U.S. inland river system, the estimated national shipper savings was $7 billion, which is passed onto consumers who pay less for key commodities such as electricity. This is especially important in a down-economy. • Flood control: Dams and tributaries collect runoff and help maintain navigation pools. Recent flooding on the Ohio, Mississippi and Missouri Rivers demonstrate the value of this flood control system. • Recreational boating opportunities: In 2009,
more than 382,000 recreational vessels passed through navigation locks free of charge. • Hydropower generation: Supported by our inland waterways navigation system, the nation’s hydropower plants generate billions of green, sustainable kilowatt hours (KWH) annually. • Industrial and municipal water supply: In 2008, municipal and industrial users withdrew a total of 23.3 billion gallons of water daily from navigation pools on the Ohio River system alone, representing an estimated value of $953.5 million per year. • Waterfront economic development: Study findings on one Tennessee reservoir indicates that elevation increases in water levels yielded a direct increase in the value of waterfront property. Our waterways system supplies the nation with multiple benefits today and can for the future. But only proper investment and judicious care will allow those benefits to Keep America Moving! “The Foundation’s brochure, based on this important study, underscores the various beneficiaries of our waterways system, of which commercial users are just one part. Without continued investment in our waterways infrastructure, the waterways benefits may be lost and our economy negatively impacted in many ways,” said Mike Hennessey,
National Waterways Foundation Chairman. The mission of the National Waterways Foundation is to develop the intellectual and factual arguments for an efficient, well-funded and secure inland waterways system. NWF ELECTS NEW OFFICERS At its October meeting in Pittsburgh, the National Waterways Foundation (NWF) elected new officers. Michael W. Hennessey, Vice President, Sales and Marketing, Brownsville Marine Products, was elected Chairman. He succeeds Craig E. Philip, President and CEO, Ingram Barge Company, who remains on the Foundation as Immediate PastChairman. Michael Toohey, President and CEO, Waterways Council, Inc., was named Secretary. Joseph H. Pyne, Chairman and Chief Executive Officer, Kirby Corporation, was re-elected as Treasurer of the Foundation. “I look forward to working with our esteemed officers and trustees this year, as the Foundation considers undertaking a number of industry studies and activities that will better allow the waterways industry to tell its story,” said Hennessey. IP
2011 Issue V
Sennebogen Adds New Team Members S
ennebogen recently named Dan Worthey as Regional Sales Manager serving the US Northwest, and Alberto Abraham as Regional Sales Manager serving Latin America. Worthey will represent Sennebogen machines in the states of Oregon, Washington, Idaho, Montana, North Dakota, South Dakota, Wyoming, Nebraska and Utah. A long-time resident of Bellevue, WA, Worthey has served the same territory as Regional Manager for one of the construction industry’s leading heavy equipment brands. When the opportunity to join Sennebogen presented itself, Worthey already had personal connections with one of the firm’s distributors in the region, Modern Machinery. Al Abraham will provide support and application advice to customers and dealers ranging from Mexico to Argentina. A native of Buenos Aires, Abraham brings a wide range of equipment and engineering experience to his position, including his most recent term, based in Chicago, representing a major manufacturer of heavy-lift equipment. “When you look at these machines, you can see that they are made by a company that listens to customers,” says Abraham. “They make it simple, without making it overly technical.” IP
Constantino Lannes with newcomers Dan Worthey (left) and Al Abraham (above).
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 2011 Issue V
WCI Reacts to Obama Proposal For Infrastructure Funding By Michael J. Toohey President and CEO of Waterways Council
hile Waterways Council, Inc. (WCI) and its members applaud President Obama’s call for.higher levels to recapitalize our nation’s lock and dam infrastructure, the Obama plan for collecting the funding may be counter-productive to the nation’s economy and fails to include the necessary project delivery and other reforms that must be a part of a comprehensive investment strategy for our waterways. The Administration’s plan, which may be unworkable in its current form, includes a new fee for all operators and a second fee for those transiting locks in addition to the 20-cent-pergallon tax commercial operators currently pay. The proposed legislation would more than double the amount of taxes and fees on one beneficiary of our Nation’s waterways, commercial shippers. Currently, commercial users are the only contributors to the Inland Waterways Trust Fund. These new economic burdens will disrupt the fragile economic recovery by unfairly disadvantaging consumers who will surely pay more for their goods and electricity. The proposal also discourages use of our waterways, which provide the most energy-efficient, environmentally sound, traffic congestion-relieving, safest way to transport bulk commodities. This Administration initiative also discriminates against shippers and industries that locate along waterways served by locks and dams, de-leveling the competitive playing field. We urge Congress to not delegate to the Secretary of the Army the unfettered discretion to impose fees on one beneficiary in any amount at any time as one unelected official sees fit. Congress has never delegated the power to tax to the Executive Branch, and we urge our elected officials to continue this precedent. The waterways industry and its stakeholders continue to support all elements of the Inland Waterways Capital Development Plan, which calls for Corps of Engineers’ project costescalation reform, cost-sharing changes, project prioritization, and a user-financed fuel tax increase of 6-to-9-cents per gallon on the commercial sector’s current fuel tax. It also lays out a plan for the efficient completion of more than 20 navigation projects over 20 years by American workers in family-wage jobs rather than just six projects in the same timeframe under the current broken construction management model. It would also optimize taxpayer investment by completing projects on time and on budget. Modernizing our Nation’s waterways transportation system in a way that is fair and equitable to our farmers and shippers will result in the creation of American jobs, increased exports, and billions of dollars injected into the lagging U.S. economy. The President recognized in his American Jobs Act the importance of investment in inland waterways. WCI stands ready to work further with the Administration and Congress for a comprehensive capital investment strategy for our Nation’s inland waterways system.” The Capital Development Plan and list of more than 200 supporters can be found at www.waterwayscouncil.org. IP 22
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Industry Notebook Let us spread your message! Email your port, company, or group news to us at email@example.com The new railroad bridge on the Mobile River is open for business, and the marine transport industry could not be happier. The new bridge, coming at a $72 million price tag, is a vertical-lift bridge that allows river vessels 60 feet of clearance. The barges now have 300 feet to pass, eliminating the old headache of having to cross with broken-down loads in small increments. The new bridge, a team effort between CSX, Scott Bridge and the US Army Corps of Engineers, replaces the 14-mile bridge, which was built back in 1927. It allowed vessels just 135 feet on both sides. The old pivot bridge will be removed by December. Approximately 13,000 barges, carrying 19 million tons of cargo, passed under 14-mile bridge each year. This will make passage easier, and likely increase traffic. The ThyssenKrupp AG facility is expected to bring an additional three million tons per year, according to the waterway association. At a recent hearing of the U.S. House Transportation and Infrastructure Committee’s Water Resources and Environment Subcommittee, AAPA Chairman of the Board Jerry Bridges, who also serves as executive director of the Virginia Port Authority, testified on the economic importance of seaports. Subtitled “Is the United States Prepared for 21st Century Trade Realities?”, the hearing focused exclusively on the economic contributions of U.S. seaports and the need for adequate federal investments in both land and waterside infrastructure in and around those facilities. In addition to Mr. Bridges’ testimony reflecting the overall U.S. port industry, the chief executives of three other U.S. port authorities testified on behalf of their respective ports: Omar Benjamin, Port of Oakland; William Friedman, ClevelandCuyahoga County Port Authority; and Paul Anderson, Jacksonville Port Authority. Other witnesses included Jo Ellen Darcy, assistant secretary of the Army for Civil Works; Christopher Koch, president and CEO of the World Shipping Council; and Peter Peyton, president of the International Longshore and Warehouse Union Marine Clerks Association. In his remarks, Mr. Bridges emphasized that “while ports are planning for the future, the federal government has not kept pace with the industry or our international competitors.” Much of the discussion among subcommittee members focused on the need for full utilization of the Harbor Maintenance Tax (HMT) to maintain federal navigation channels. Members on both sides of the aisle discussed the need to remedy the HMT issue. Witnesses and subcommittee members also agreed on the need for a long-term surface transportation authorization bill to address landside infrastructure needs. Mr. Bridges emphasized AAPA’s strong support for advancing a reauthorization bill, including the need for a greater focus on freight 2011 Issue V
transportation, improved connections to seaports and the inclusion of a maritime title in the bill. The Ports of Indiana has named Scott Stewart as port director for the Port of Indiana-Jeffersonville. A native of nearby New Albany, Ind., Stewart spent 24 years in positions of increasing responsibility with the Procter & Gamble Company before retiring in 2008 and moving back to Indiana. Upon his return, he served as a senior policy director for Governor Mitch Daniels and most recently as Director of Strategy for the Indiana Department of Transportation on the Ohio River Bridges project. “We’re very excited to have someone of Scott’s caliber join our team,” said Rich Cooper, CEO for the Ports of Indiana. “Scott’s management and leadership roles with one of the world’s top corporations, coupled with his experiences in the transportation sector with the state of Indiana, will allow him to connect immediately with port customers and business prospects in our industry. He clearly understands the win-win outcomes of public-private partnerships which define our strategy for growing business and Indiana’s economy.” “This is a great opportunity for me to come back home and play a role in developing new business opportunities for our region and state,” Stewart said. “The Ports of Indiana is recognized as one of the premier inland port systems in the country. The multi-modal transportation assets at our port in Jeffersonville have us well positioned to attract new cargoes and industries to southern Indiana. I look forward to working with port customers and the local community to discuss how the port can grow and attract new investments to this region.” The Toledo-Lucas County Port Authority Board of Directors approved a resolution in preparation for a new cargo operator, BX Solutions, at Toledo Express Airport. The resolution authorizes BX Solutions to manage and maintain the cargo facility, manage the delivery of all services at, to and from the facility and market the facility for intermodal transportation services cooperatively with the Toledo-Lucas County Port Authority. BX Solutions is a locally owned and managed transportation and distribution company specializing in commercial and industrial freight. BX Solutions has made a significant commitment to create 500 new benefit eligible full and part-time positions at Toledo Express Airport within the first year. “This new opportunity accomplishes a major priority for the Toledo-Lucas County Port Authority by creating hundreds of much needed, quality jobs in our community,” says Paul Toth, President and CEO of the Toledo-Lucas County Port Authority. “Many parties have been diligently working on making this a reality and we are certainly pleased to welcome BX Solutions as the new cargo facilitator for Toledo Express – just a few short months after cargo operations ceased at the facility. The support www.inlandportmagazine.com
IP Calendar of Events Nov. 30 - Dec. 2 WorkBoat Show Morial Convention Center, New Orleans www.workboatshow.com December 1 IRPT Board of Directors Meeting New Orleans Board of Trade www.irpt.net December 2 IRPT Membership Breakfast Mothers Next Door, New Orleans www.irpt.net December 8-10 Mississippi Valley Flood Control Association Annual Meeting New Orleans, LA February 14-16, 2012 Waterways Council, Inc. Washington, DC www.waterwayscouncil.org March 4-8, 2012 Pacific Northwest Waterways Association Washington, DC www.pnwa.org March 26-28, 2012 NWC 2012 Legislative Summit Washington, DC 23
of the State of Ohio through grant funding has been critical to moving this project forward and we are appreciative of their confidence in us.” “BX Solutions is pleased and eager to carry on the rich history of cargo operations at Toledo Express,” said Christopher Marshall, President and CEO of BX Solutions. “This is the first of a multiple step process for restoring jobs to northwest Ohio.” “We have always believed that the combination of the experienced existing workforce and the logistical advantages of the Toledo region and Toledo Express provide a strong framework for cargo activities here,” said G. Opie Rollison, Chairman of the Toledo-Lucas County Port Authority Board of Directors. “The commitment of significant new cargo business here surely solidifies this belief.” The Port Authority Board of Directors also approved a resolution to amend a previously awarded State of Ohio Logistics and Distribution Stimulus Award that allows more general improvements to be made to the cargo facilities to diversify the types of activities that can ultimately be housed there. The State of Ohio is currently considering the amendment request. Kirby Corporation announced record net earnings attributable to Kirby for the third quarter ended September 30, 2011 of $52.7 million, or $.94 per share, compared with $30.7 million, or $.57 per share, for the 2010 third quarter. Consolidated revenues for the 2011 third quarter were a record $563.6 million compared with $281.3 million reported for the 2010 third quarter. Joe Pyne, Kirby’s Chairman and Chief Executive Officer, commented, “Our record third quarter results were a reflection of strong United States petrochemical production levels, stable refinery production levels, and a continued strong exportation market, all leading to high inland tank barge utilization levels and favorable term and spot contract pricing. K-Sea Transportation Partners LLC, our coastwise and local transportation company acquired on July 1, 2011, was accretive to our third quarter operating results, but, as anticipated, K-Sea’s operating results were offset by acquisition related expenditures, and higher interest expense and common shares outstanding associated with the acquisition.” The K-Sea acquisition is discussed in detail on page 4 of this press release. Mr. Pyne continued, “Our record third quarter results also reflected record earnings from United Holdings LLC, our land-based distributor and service provider of engine and transmission related products and manufacturer of oilfield service equipment acquired on April 15, 2011. United’s operating results reflected a continued strong market for the manufacturing of hydraulic fracturing equipment and the sale and service of transmissions and engines.” Kirby reported record net earnings attributable to Kirby for the 2011 first nine months of $126.9 million, or $2.33 per share, compared with $84.6 million, or $1.56 per share, for the first nine months of 2010. Consolidated revenues for the 2011 first nine months were a record $1.3 billion compared with $823.2 million for the first nine months of 2010. EdgeTech and affiliate ORE Offshore have recently added another 7,500 sq/ft of manufacturing and office space to their Massachusetts facility. The manufacturer of side scan sonars, sub-bottom profilers, bathymetry systems, acoustic releases, 24
USBL systems and other specialized underwater acoustic solutions, continues to grow in size and product offerings. The new space will be used to supplement the factory floor which already houses a wide array of manufacturing bays and test facilities including pressure chambers, acoustic test tanks and transducer clean room operations. Additionally, the company continues to grow its R&D and Special Systems operations in Boca Raton, FL. Just this year a new 40 foot research vessel was added to support the Florida operations. This is the second research vessel now owned and operated by the company. Both vessels are fully outfitted with the latest sonar equipment manufactured by both divisions for testing purposes. Mack Manufacturing is building on its range of single-line clamshell buckets to offer larger equipment for the higher capacity cranes appearing on some of today’s newer ships. “We have been receiving orders recently for ship mounted cranes rated up to as much as 30 and 35 tons,” says Matt Davidson, Vice President of Sales & Marketing at Mack. “25-yard buckets used to be the largest size we ever produced for these applications, but we’ll build them as big as our customers need.” Mack is a leading manufacturer of crane attachments for a full range of stevedoring applications. While smaller “touch & go” buckets were previously more common in use with the ship’s cranes, Mack has found that most ship builders and stevedoring firms have adopted their radio controlled, single-line buckets over recent years. One innovation that is gaining in popularity is Mack’s self-contained diesel-powered grapples and buckets with remote controls. This model allows our customers to handle materials with higher densities such as pig iron and HBI. “Our single-line buckets can be designed to meet the larger sized requirements than the old touch & go models,” says Davidson, “but they still offer the simplicity and versatility you want on a ship’s crane, compared to the electrically powered units used by port facilities.” Mack offers a full range of medium-duty buckets recommended for off-loading bulk materials up to 100 lbs./cu.ft., as well as light-duty buckets that offer weight-savings and lower costs for moving grains and similar materials weighing under 60 lbs./cu.ft. Mack radio-controlled models allow operators to actuate the bucket hydraulics from onboard the ship or from the dock, anywhere within a 500 ft. radius. The solenoid control valve on the bucket is powered by a basic 12 V marine battery. Standard models include a second valve which can be attached to a ¼” line as a backup to the radio control The Shipowners’ Club, a mutual P&I insurer specializing in small and specialist vessels, has appointed David Heaselden to the new post of Loss Prevention Director. The post, which is an appointment to the Shipowners’ Protection Limited Board, reflects the importance Shipowners’ Club accords to loss prevention advice provided to its Members. Charles Hume, Chief Executive commented, “David’s outstanding cross-branch leadership of loss prevention is recognized by his appointment; we will also be looking to his organizational skills to enhance our emphasis on loss prevention at Board level and strengthen the liaison in productive effort www.inlandportmagazine.com
between our branches in Singapore and London.” David joined the Shipowners’ Club in 2001 as Loss Prevention Manager with overall responsibility for loss prevention initiatives and the Ship Inspection Program. In 2003 he was appointed Chairman of the International Group’s Ships Technical Committee, where he supervised the technical aspect of the Committee’s input to the IG’s response to the OECD Policy Statement on Sub-standard Shipping in 2004; and the development of the Group’s initiatives on monitoring the quality of tonnage joining IG Clubs. In April 2009 David transferred to the Singapore branch as Principal Officer, assuming responsibility for the management of the office function as well as continuing to run the Loss Prevention team. Following his move to Singapore he has continued in the role of Chairman of the IGSTC. IP
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281-602-5400 ext.2 2011 Issue V