Inland Port g n i p p Ma he t ACF
Jack Martone Urges Action NOW! Exclusive Interview with PortVision CEO Dean Rosenberg Alaska is a Petri Dish for Maritime Security
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Inland Port March/April 2011 • Volume III, Issue II
Mapping the ACF
AAPA’s Nagle Fights the Intermodal Good Fight Before Subcommittee
Virginia Port Authority’s Jerry Bridges Elected Next AAPA Chairman
Now is the Time
Alaska: A Petri Dish for Maritime Security
By Mark Goddard, USACE Mobile District - Tuscaloosa, AL, BWT/Coosa Alabama Project Management, Office Navigation Unit
Jack Martone urges the industry to act now to preserve its future.
By Dr. Oliver Hedgepeth, American Public University
Risk and reward
Are You Protected? Cargo and Blockage of Berth Coverage By C. Daniel Negron, of Thomas Miller (Americas)
Making the Marine Highway Safer
Exclusive interview with PortVision CEO Dean Rosenberg
22 Sennebogen Mourns Founder 26 Industry Notebook 28 Interview with Jennifer Stastny THE LAST WORD
Executive Director, Port of Victoria (TX)
Mapping the ACF By Mark Goddard Corps of Engineers Mobile District - Tuscaloosa, AL BWT/Coosa Alabama Project Management Office Navigation Unit Small sweep vessel track lines.
he Mobile District, Corps of Engineers, BWT/Alabama-Coosa Project Office (CESAM-OP-BA), located in Tuscaloosa, Alabama, was tasked by William W. Fuller, Chief of the Districtâ€™s Operations Division, with assisting its sister ACF Project in performing a hydrographic survey of the Apalachicola, Chattahoochee and Flint Rivers. As a result, the Tuscaloosa office performed a complete bank-to-bank hydrographic survey of the entire Apalachicola-Chattahoochee-Flint (ACF) River System from January through April 2010. The project was coordinated by Navigation Unit Chief Fred Horn and Technical Team leader Mark Goddard. The Tuscaloosa office utilized its in-house hydrographic survey capability to complete the 187-mile mapping project using two of their four multi-transducer sweep survey vessels. Data products from the effort were needed for analysis of existing waterway conditions and for use in the development of new water control manuals. The finished data products were also shared with other agencies and waterway interests. The survey was conducted using the 65-foot March/April 2011
The Apalachicola-Chattahoochee-Flint (ACF) River System
survey vessel, E.B. Wallace, commanded by Captain Stephen Patton and assistant Tim Spence. The vessel has 12 boommounted transducers providing a complete data coverage sweep of 70 feet. Also used, one at a time, was a fleet of 24-foot SeaArk survey vessels equipped with boom-mounted transducers. These were operated in rotation by surveyors David Files and Dustin Brandon. They had five boom-mounted transducers, providing
man, and offers unmatched flexibility in movement and efficiency of conducting hydrographic surveys. The small vessel can provide more flexible options in completing surveys over a small area or along the shallow edges over several miles of channel. The crew of the E.B. Wallace employed both conventional DGPS and real-time kinematic (RTK) positioning on the project. The RTK offered new technology
the Inter-coastal Waterway to the mouth of the ACF River System. Primary data collection efforts began in January 2010. The E.B. Wallace and small boats utilized HYPACK hydrographic software and Trimble DGPS/RTK positioning systems. The RTK system was chosen over the traditional method of installing a costly network of physical tide gages along the ACF. The vessels obtained their positioning using iNET, a vendor-supplied RTK service provided and leased from Earl Dudley and Associates (Birmingham, AL) for both horizontal and vertical positions. Dudley’s iNET reference station network provides internet-based network GPS RTK service across four Southeastern states: Georgia, Alabama, Tennessee, and Mississippi. Dudley’s iNET service provides network corrections that include data from both the US Navstar and Russian Glonass satellite systems. The E.B. Wallace and one small boat utilized this network for positional data using an Intuicom brand RTK bridge and cellular network service while on the ACF System and at substantial cost savings over traditional methods for gage installation using land based survey from monuments. Only a small number of calibration gages were needed to confirm the accuracy of the RTK positional output, as opposed to the 40 plus gages that would have been necessary, spaced every five miles under traditional methods.
The advantage of the small sweep vessel is one-man operation.
a complete data coverage sweep of 25 feet. In comparison to traditional hydrographic cross-sections taken at a spacing interval of 100 feet, multi-transducer sweep surveys provide complete bankto-bank coverage without gaps and offer a substantially better image of the river bottom. All of the Tuscaloosa vessels employ the latest DGPS/RTK positioning and software for hydrographic data collection. The E.B. Wallace, with a crew of two, is capable of providing up three to five miles of water’s edge to water’s edge surveying in a single day. The crew members stay on the vessel and can remain on site for continuous surveying capability. The small vessel is unique in that it is trailer-ready, can be operated by one6
to achieve both horizontal and vertical positioning for the vessel’s data collection.
ACF HYDROGRAPHIC MAPPING The project began with a field effort to provide set-up and installation of vertical, or pool elevation, calibration Typical color-filled contour mapping plot of the ACF Apalachicola River. gages on the various pools of the ACF with assistance from The ACF System’s current shoaling OP-GE (Corps Panama City Field Office) in conditions and water level fluctuations December 2009. required some advanced planning in timTo start the next phase of the projing for the data collection effort. The E.B. ect, the crew of the E.B. Wallace moved Wallace drafts 4.5 feet, and required a approximately 100 miles from its inland minimum of five to six Feet of water depth work area on the Black Warrior and Tomto safely navigate on the lower ACF below bigbee River System to Mobile, and then Jim Woodruff Lock and Dam, or the wild continued an additional 245 miles along www.inlandportmagazine.com
Surveyors David Files, Lance Holloway, and Josh Andrews with one of the three new small survey vessels.
and uncontrolled Apalachicola River from mile 0 to mile 106. The winter was determined to be the best period of water levels, providing conditions that were both suitable for draft of the vessel and were not excessive for the hydrographic data collection. Another consideration for water levels was completing all of the data collection efforts before water levels receded and shoaling obstructions prevented transit of the E.B. Wallace off of the system. The following ACF areas were surveyed in detail: the Apalachicola River - 107 miles; Flint River - 14 miles; Chattahoochee River to Andrews L&D (Woodruff March/April 2011
Pool) - 19 miles; Andrews L&D to Walter F. George L&D - 11 miles; and Walter F. George L&D to Head of Navigation - 36 miles. A grand total of 187 river miles were surveyed, from water’s edge to water’s edge during this one effort. Also, a small portion of the open lake areas were surveyed using a contract crew called out by Mobile District’s OP-J Spatial Data Branch. This multi-beam data was incorporated into the final finished map plots for a seamless product.
ACF CARTOGRAPHIC DATA AND MAP PROCESSING Data processing for final map production was completed by Tuscaloosa’s www.inlandportmagazine.com
in-house Cartographic Mapping and GIS team in June 2010. The team consisted of Mark Seitz, Cartographer, Jay Woodroof, GIS Geographer and Timothy Patton, Civil Engineer Technician. In-house data processing was performed to produce printed color-coded contour map booklets and digital copies of the data in .xyz format and Adobe .PDF format for the entire project area. The data has since been supplied to several organizations, including the Corps of Engineer’s ACF Project Manager, Bill Smallwood. He uses it in managing the navigation and hydropower mission of the ACF waterway. Andy Ashley, Chief of 7
Mobile District’s Water Management Section, used the data in the new ACF Water Control Manuals. Others using the data include Billy Houston, President of the Tri-Rivers Association - ACF; Derek Franklin, US Coast Guard - ACF, for use in maintaining Aids to Navigation on the ACF; and Southern Company, for analysis of river conditions.
THE TUSCALOOSA PROJECT OFFICE The BWT/Ala Coosa Project Management Office - Tuscaloosa Navigation Unit is one of the oldest field offices of the Mobile District. It provides support for maintenance dredging and associated surveying required for Operation & Maintenance of over 700 miles of authorized navigation channel of the Black Warrior-Tombigbee and Alabama-Coosa River Systems. The project area includes the area extending from the confluence of the Alabama and Tombigbee Rivers some 45 Miles North of Mobile up the Tombigbee and Warrior Rivers to near Birmingham, Alabama, and from the confluence of the Tombigbee River up the Alabama River to near Montgomery.
The survey vessel E.B. Wallace.
The current project authorization provides a 9 ft. x 200 ft. navigation channel with a total of nine locks and dams on both systems. Its responsibilities include providing accurate condition and detailed dredging surveys required in the decision making process of maintenance dredging activities to both field and district level command elements.
NORMAL MISSION ACTIVITIES
Northeast to the Nation Strategically located on the banks of the Monongahela River, adjacent to two railways and two highways, Three Rivers Marine & Rail Terminals is an intermodal transportation hub – and much more. Offering direct connections between river, road, and rail, Three Rivers also provides stand-alone and value-added bulk materials supply and service. Our combined capabilities give us the power to develop customized, seamless solutions that address diverse and complex customer needs – from warehousing and packaging to on-demand delivery of ice melt, landscaping, and other products. TRANSLOADING CONTRACT PACKAGING TRUCKING LANDSCAPE PRODUCTS
Annually, hydrographic surveys are conducted along the 400 miles of the Black Warrior - Tombigbee Rivers and 300 miles of the Alabama River to determine project conditions and to analyze dredging needs. On average, over 300 individual detailed surveys are made, with data being collected by one of the unit’s four surveys vessels. Mapping of the project’s traditional shoaling areas is done throughout the year, with data collection being made on individual survey areas averaging 3,500 feet in length and taking approximately two to three hours to complete. These surveys are used for detailed dredging analysis needs and are usually conducted in the April-September time frame, or after the spring floods have ended and during actual dredging operations. Additional mapping or historic mapping of the remaining long stretches of river, or bank-to-bank mapping, is performed using the E.B. Wallace and small boat systems during “non-dredging” months. These mapping efforts cover 5-mile to 10-mile stretches at a time, using longitudinal sweeps from waters-edge to water-edge to provide total mapping coverage of the entire 700 miles of rivers. IP
THREE RIVERS 3riversmarineandrail.com
marine & rail terminals
THE AUTHOR For more on the USACE Mobile District’s BWT/Coosa Alabama Project Management Office, contact Mark Goddard at Mark.firstname.lastname@example.org. March/April 2011
Hello, hello, hello... Is there anybody in there? AAPA’s Nagle Fights the Intermodal Good Fight Before Subcommittee The US House Committee on Transportation and Infrastructure’s Highways and Transit Subcommittee recently held a two-day hearing on Improving and Reforming the Nation’s Surface Transportation Programs. American Association of Port Authorities President and CEO Kurt Nagle recently estified on the importance of a national freight policy, port-related infrastructure, funding for intermodal freight connectors, investments in freight rail, development of marine highways, program reform and project delivery, and funding mechanisms.
rom the earliest days of our nation, there has been a clear and consistent federal role and national interest in developing and maintaining landside and waterside connections to America’s seaports. This vital transportation infrastructure literally connects American farmers, manufacturers and consumers to the world marketplace. Particularly in these challenging economic times, it is crucial that basic, core federal missions, that directly impact America’s economic vitality, jobs, and global competitiveness, be recognized and prioritized. Investments in America’s port infrastructure and intermodal connections – both land and waterside – are strongly in the federal interest and provide an opportunity to bolster the country’s economic and employment recovery and help sustain long term prosperity. More than a quarter of the US GDP is accounted for by international trade. From a jobs standpoint, America’s seaports support the employment of 13.3 million US workers, and seaport-related jobs account for $649 billion in annual personal income. For every $1 billion in exports shipped though seaports, 15,000 US jobs are created. Ports are doing their share by investing more than $2 billion annually in capital improvement projects on their terminals. Despite these substantial investments by ports, inadequate infrastructure connecting ports to landside transportation networks and water-side shipping lanes often creates bottlenecks in and around seaports resulting in congestion, productivity losses, and a global economic disadvantage for America. These congestion issues and productivity losses have the potential to stymie our ability to compete. The pending Free Trade Agreements with South Korea, Colombia and Panama provide a huge opportunity for increasing exports and improving the economy. However, when transportation costs rise due to inadequate infrastructure, our exports become less competitive. As this Committee considers and identifies core federal missions, we urge you to elevate freight mobility issues and intermodal connectivity to a high priority in this authorization bill. AAPA has detailed policy recommendations for reauthorization. I will highlight a few areas and request that our policy paper be included in the record.
National Freight Policy In this reauthorization, it is critical that Congress place an emphasis on alleviating freight congestion and provide a mechanism for planning future investments. AAPA urges the implementation of a national freight policy which coordinates with state freight transportation agencies to ensure that implementation and national freight connectivity and capacity goals are met. AAPA strongly recommends that a formula-driven state administered freight program complimented by a federal merit-based investment component to address projects and corridors of national and regional economic significance be included in reauthorization legislation. This merit-based concept was first introduced as part of SAFETEA-LU and was known as the “Projects of National and Regional Significance Program.” The program was entirely earmarked and was never implemented as intended. Port Authorities should be eligible to apply directly for project funds through the aforementioned federal and state freight programs.
Port-Related Infrastructure AAPA strongly recommends that a National Infrastructure Investments (NII) style program be authorized and that a minimum of 25 per-
cent of the available funding be dedicated to port-related infrastructure needs. AAPA supports the NII which has provided discretionary grants for port infrastructure projects. This type of program is the only direct and merit-based federal funding source for port-related infrastructure. Efficient seaports are truly in the federal interest and are critical to US export expansion, international commerce and the global competitiveness of the US economy. Port infrastructure projects, including those that improve landside connections to seaports, are prime candidates for programs like the NII. Federal investments in port-related infrastructure create jobs, spur US exports, enhance the environment, and improve American quality of life.
Funding for Intermodal Freight Connectors Funding for National Highway System intermodal freight connectors is vital to port efficiency and cargo mobility. The deficiencies of these roads and bridges that connect seaports to the Interstate System and main-line rail networks have not been adequately addressed in the traditional planning and funding processes of States and MPOs. Roads and rail converge in port areas, often at the same grade, causing congestion and delays as cars and trucks wait for freight trains to clear intersections. As a result, delayed idling vehicles exacerbate negative air quality impacts on the surrounding communities. Many of these roads are in disrepair, have inadequate turning radii, and are generally not fit for the volume of freight traffic they must endure. For these reasons, connector roads and highway access infrastructure around ports are often the weak link in the goods movement network and must be addressed through programs specifically directed at these issues. NHS freight connectors were determined to be in the worst condition of any roads on the National Highway System and yet are among the most important to our economy, national defense and global competitiveness. As you discuss how to reorganize the existing programs to meet vital infrastructure needs in the federal interest, AAPA strongly recommends that a more targeted way to maintain and improve capacity along these vital connections be included.
Investments in Freight Rail Investments in freight rail will make the system safer and more efficient, improve environmental sustainability and encourage competitive rail access to seaports. The federal surface transportation program should provide tax credit 10
incentives for main-line and short-line railroads to invest in port access. Legislation should also include a grant program with a cost-share (federal/railroad) for projects with both public and private benefits. In addition, the national freight program should define freight corridors of national significance that are eligible for rail investment. To execute these investments effectively, additional expertise on rail access issues within state departments of transportation and MPOs is imperative.
Development of Marine Highways The improvement and new development of marine highways will alleviate highway congestion and improve environmental sustainability. A number of steps will be required to effectively catalyze the development of a system of marine highways. Harbor Maintenance Tax exemptions for certain US port-to-port cargo must be enacted by Congress to eliminate a current federal “disincentive” to short sea shipping. Federal funding support for establishing short sea shipping services and incentives for shippers using “greener” modes of transportation would serve as public and private sector economic incentives to help jump-start marine highways. Establishing a new program similar to the ferry boat discretionary program and encouraging more utilization of current federal programs – such as the Congestion Mitigation and Air Quality (CMAQ) Improvement Program – to fund projects for short sea shipping services, would also have a catalyzing effect. Marine highway development could also benefit from a reassessment of federal shipbuilding programs with a focus on how they could support this development. An understanding and expertise at the state/MPO level on marine highway alternatives and benefits is necessary to executing programs and projects in this area.
Program Reform and Project Delivery With regard to program reform, AAPA supports a performance-based approach which consolidates the existing 108 surface transportation programs into 10 programs (one of which should focus on freight transportation) as recommended by the National Surface Transportation Policy and Revenue Study Commission and AASHTO. AAPA also supports establishment of a multi-modal freight office that reports to the Office of the Secretary at the United States Department of Transportation. AAPA supports improving project delivery by addressing environmental review inefficiencies and National Environmenwww.inlandportmagazine.com
tal Policy Act (NEPA) redundancies that cause project delays and cost overruns, including delegating NEPA responsibilities to appropriate state agencies.
Funding Mechanisms AAPA believes that a combination of funding mechanisms will be necessary to address freight mobility needs in the US These funding mechanisms should not disadvantage US exports nor hinder ports in their ability to remain competitive. Supported funding mechanisms include: • A share of revenue from customs duties devoted to funding freight mobility infrastructure improvements; • An increase in the gas tax and a future indexing mechanism as recommended by the National Surface Transportation Policy and Revenue Study Commission with a percentage of the new proceeds dedicated to funding freight mobility infrastructure improvements; • An increase in the diesel tax, and a future indexing mechanism with a majority of the new proceeds dedicated to freight mobility infrastructure improvements; • A portion of any carbon tax or climate change program revenues be made eligible for investments made by freight transportation to reduce its carbon footprint; • Public-Private Partnerships (PPP) where each sector pays in proportion to the benefits they derive from the capacity generated by the infrastructure. AAPA believes that if a freight trust fund is created under this surface transportation authorization, it should be fully spent on freight transportation and not used for deficit reduction. Appropriate projects that are freight-related should still be eligible to compete for other federal funding sources.
Conclusion Improving the freight transportation system, particularly port-related infrastructure, helps strengthen our nation’s international competitiveness and our ability to accommodate trade growth. As Congress looks to spend limited dollars on priorities that are in the federal interest and provide America with sizable returns, we believe that targeting investments toward the freight transportation system will pay dividends in short and long term economic prosperity. Founded in 1912, AAPA is an alliance of the leading public ports in the Western Hemisphere. This testimony reflects the views of our US members. More information is available at www.seaportsdeliverprosperity.org. IP March/April 2011
Virginia Port Authority’s Jerry Bridges Elected Next AAPA Chairman J erry A. Bridges was elected chairman of the board-elect of the American Association of Port Authorities during the Spring Conference meeting of the AAPA board of directors. Bridges is executive port director of the Virginia Port Authority (VPA). He will be formally installed as chairman of the board at this fall’s AAPA convention in Seattle. Bridges was appointed Executive Director of the Virginia Port Authority (VPA) by the Board of Commissioners on November 28, 2006 and officially took office on February 5, 2007. He is responsible for the broad programmatic areas of marketing, development, finance and promotion of Virginia’s marine terminal facilities located in the Hampton Roads harbor – Newport News Marine Terminal, Norfolk
International Terminals, and Portsmouth Marine Terminal, APMT Virginia, and the Virginia Inland Terminal located in Warren County, Virginia. Prior to his arrival at the VPA, Bridges served as Executive Director of the Port of Oakland since June 2004. He was responsible for the overall operations, management and financial performance of the Port of Oakland’s three lines of business at the Oakland International Airport, the Oakland Seaport and extensive commercial real estate holdings. From September 2001 until his appointment as Executive Director, Bridges served as the Port’s Director of Maritime. Prior, he served as the Area Vice President Northern California for Marine Terminals Corporation. He has also worked with Sea Land Services and
Roadway Express. Bridges currently serves on the Board of Directors of Virginia International Terminals, Incorporated (VIT), American Association of Port Authorities Executive Committee, Hampton Roads Partnership Board of Directors and Executive Committee, Greater Norfolk Corporation Executive Committee, Town Point Club Board of Governors, Virginia Arts Festival Board of Directors, Old Dominion University Executive Advisory Council, Norfolk Education Foundation Board of Directors, Norfolk Festevents Board of Directors, Marine Board of the National Research Council and the Sentara Healthcare Board of Directors. Bridges also served 20 years as an officer in the US Marine Corps in active and reserve status. He received his Bachelor of Science Degree in Social Sciences from the Appalachian State University in Boone, North Carolina. IP
Now is the Time By Jack Martone As we view the world we have a tendency toward the illusory belief that our present is a time of unusual changes and challenges, more so than what we remember or have recorded as the past. There are budget politics, a government in “dynamic regulatory mode,” technological changes, economic concerns, natural disasters, environmental crises, global violence, etc. Events seem right now to be happening fast and to be threatening change in unpredictable ways. It’s “illusory” because, of course, it’s a trick of perspective. 12
issues currently facing the domestic shipbuilding and ship repair industries. Matt confirmed my suspicion that right now is a crucial time with a lot at stake for the maritime industry in this country. Matt, along with Ian Bennitt, Director of Government Relations for SCA, identified a number of key issues which I will very briefly summarize below. I’ll also have suggestions, along with a couple of examples, as to how members of the industry can approach the current challenges and help to direct changes in positive ways. Most of these suggestions involve paying close attention to what goes on in Washington, DC. (The SCA is the only national trade association representing the U.S. shipbuilding and ship repair industries. It represents 44 different shipyard companies with over 120 shipyard facilities around the U.S., as well as 34 affiliated members. The SCA keeps very close account of what goes on in Washington.) First, let’s consider the current regulatory environment. Last year, following the Deepwater Horizon explosion and oil spill we saw a flood of new safety and environmental regulations issued on an emergency basis by the government’s regulatory agencies. The emergency procedures are no longer being used, but by no means have we seen the end of new post Deepwater Horizon regulations. Take just one of many federal regulatory agencies that impact the industry, the Occupational Safety and Health Administration (OSHA). President Obama’s agenda was reflected in his pick of Dr. David Michaels to lead the agency. The “new sheriff in town” wasted no time in making enforcement and increased regulatory activity his top priorities, while shifting resources from compliance assistance and partnership programs.
But there has been some good news
et’s reduce the scope and focus our view from the world in general to the US domestic maritime industry. From my perspective, it’s no illusion. Right now is a crucial time for the industry; challenges are coming fast and threatening change in unpredictable ways. To make sure that it isn’t just me, I recently spoke to Matt Paxton, President of the Shipbuilders Council of America (SCA) to get his take on some of the important March/April 2011
The first bit of good news is a Presidential Executive Order dated January 18, 2011, entitled “Improving Regulation and Regulatory Review”. The Order appears to be pro business in recognition of the fact that government regulations can be burdensome and onerous. In tough economic times, some of the worst rules need to be reevaluated. The Order requires “Retrospective Analyses of Existing Rules”, whereby each agency shall consider how best to promote retrospective analysis of rules that may be outmoded, ineffective, insufficient, or excessively burdensome, and to modify, streamline, expand or www.inlandportmagazine.com
repeal them. There have already been indirect results. Literally days after the Order was issued, OSHA pulled back rules in the areas of ergonomics and noise reduction to gain more stakeholder feedback. The Order also reaffirmed the principle that “… each agency… shall endeavor to provide the public with an opportunity to participate in the regulatory process” through the opportunity to comment on proposed new regulations during a period of at least 60 days. This is a suggestion of change that obviously should and fortunately can be encouraged through (your) engagement in the process. Second, we can see and hear the debate on the national budget. At this writing, we are still stuck in a ‘continuing resolution’ at least until April 8, held to last fiscal year’s spending levels until a new budget is passed. This is an issue of great importance to the shipbuilding and ship repair industries. The Navy has already begun canceling scheduled maintenance and modernization work; work which the industry had planned for based on the President’s projected budget. The maritime industry needs a 2011 budget, including the Defense Appropriations Bill. Third is the American Marine Highway initiative. It seems clear that commerce by waterway is cheaper and more environmentally friendly than overland commerce, whether by truck or rail. For example, one barge can carry the equivalent of 456 trucks while using more than 1/8th less oil. The country’s inland and coastal waterways provide extraordinary commercial transportation resources. In fact, according to a study by the University of Michigan, ships on the Great Lakes annually carry 163 million tons of cargo and are more efficient than rail or trucks. The Office of Marine Highways & Passenger Services in the U.S. Maritime Administration (MARAD) right now is identifying and seeking solutions to impediments hindering effective use of short sea transportation. It is inviting partnerships in the America’s Marine Highways Program. You can find details at www.marad.dot.gov. Fourth, there will soon be a large new U.S. industry developing in the form of offshore (coastal and Great Lakes) wind energy. From the highly specialized vessels needed to install the huge windmill turbines to the many hundreds of vessels needed to service, maintain, and supply the turbines, to the vessels needed to install and maintain the energy transmission grid, this technology represents the largest new market since the development of the 13
oil and natural gas fields. Dr. Lorry Wagner of the Lake Erie Energy Development Corporation (LEEDCo) recently announced the approval of a lease by the state of Ohio to develop the Great Lakes offshore wind market. Dr. Wagner welcomed, “…this project as a first step towards building a high-growth sector for Ohio” with the potential for creating thousands of new jobs. Fifth in our consideration of key issues is the political landscape. There are new members of Congress from inland river and Great Lakes states that presumably have to be educated on the issues facing the domestic maritime transportation industry, which of course includes shipbuilding and ship repair companies. For example, the 9th Congressional District of Indiana has a new representative, Todd Young. The Indiana 9th has 10,525 domestic maritime industry jobs, number one among all Congressional Districts on America’s inland waterway. This produces total gross economic output of over $2.357 billion annually. The State of Indiana is among the top domestic maritime states in the U.S. ranking 8th among all states for domestic maritime jobs with 18,434. Nationally, the domestic maritime industry accounts for 499,676 jobs, $29.1 billion in labor compensation, $100.3 billion in economic output, $45.9 billion in value added and $11.4 billion in taxes. There are more than 40,000 vessels in American’s domestic fleet, the large majority of which are barges engaged on the inland waterways. (These are figures cited by the SCA as part of a study prepared by PricewaterhouseCoopers for the Transportation Institute).
SOME Suggestions Identify your representatives in Washington. Communicate your concerns. Monitor the activities of the regulatory agencies and be prepared to participate in the regulatory process. Support the activities of national trade associations such as the Shipbuilders Council of America. Add government and regulatory activity to the list of things you worry about, or move it up the list. Be informed and active. IP
THE AUTHOR Jack Martone, former Branch Chief of Financial Management, Insurance and Assessment at the United States Department of Labor, joined AEU in 2006 as Senior Vice President. During Jack’s 27 years with the Department of Labor, he directed the licensing and regulation of insurance carriers and self insured employers under the Longshore and Harbor Workers Compensation Act. He also administered the Special Fund created by section 44 of the Longshore Act and billed and collected the annual industry assessment. Jack also serves on the Board of American Longshore Mutual Association. 14
A Petri Dish for Maritime Security By Dr. Oliver Hedgepeth American Public University
he US has 360 commercial ports, and many of them are laced with a network of rail connections, roads for truckers to use, airport cargo plane facilities, and pipelines. The complexity of evaluating an inland maritime port system for security – even a decade after 9/11 – is even more complex due to the hundreds of new rules and regulations, policies and laws, and aggressive access-control programs on both water and land. So, how do we go about studying whether or not a port expansion project will meet the security needs of the nation and the state, as well as the commerce that is derived from that port? We scientists will tell you to change one variable at a time and see what happens. That sounds easier than it really is. For instance, when I take a Google Earth satellite view of the coal terminal rail lines lacing the ground at the Norfolk Southern rail yard at the coal port facility in Norfolk, Va., how should I determine which track would be useful in security analysis? There are similar situations in the big cities that are linked to these 360 commercial ports and more than 3,200 cargo and passenger-handling facilities in the US. One other variable that is often overlooked comes from inland waters, and from agencies not directly or easily connected to national security interests. One such new variable can come from the National Marine Fisheries Service (NMFS), which proposes rules regarding
This petri dish effect for the Port Security Zone is simple – kind of. Alaska has this one port, and one railroad, one airport, and one road out of Alaska. They even have one pipeline in Alaska. So, when you want to test whether the Transportation Workers Identification Credential card is really controlling access to the port, it’s a lot easier to do by examining these variables one at a time. www.inlandportmagazine.com
in my opinion... the movement of anything on or in the waterways, and usually regarding endangered and threatened species. The NMFS, just one year ago, was embroiled with the likes of the Export Council of Alaska (ECA), the NMFS and a Federal Register publication emerging on the Designation of Critical Habitat for beluga whales in Cook Inlet, Alaska. It seems that the inland and port security issues are very complex as a system of networks and nodes for intermodal transfer points of cargo, which can be stymied not just from the land, but from whales and other sea creatures. Of all the ports and cargo and passengerhandling facilities, there is one of special interest: Alaska’s Port of Anchorage. Gen. Patrick K. Gamble, former senior executive of the Alaska Railroad, once called Alaska a petri dish for the study of transportation issues. This is because we can study the expansion of the Port of Anchorage, being overseen by former Alaska Governor Bill Sheffield, by isolating one variable at a time. This port expansion has cost about $265 million so far, and added about 70,000 new acres of land filled into the Cook Inlet. While the debate rages in Alaska politics over the development of this port, the study of how to continue really aggressive access-control points to curb public and private vehicles entering the port is easier than most. This petri dish effect for the Port Security Zone is simple – kind of. Alaska has this one port, and one rail road, one airport, one road out of Alaska. They even have one pipeline in Alaska. So, when you want to test whether the Transportation Workers Identification Credential card is really controlling access to the port, it’s a lot easier to do by examining these transportation variables one at a time. As we examine the volume of container changes coming to our deepwater ports in the Gulf of Mexico and the East Coast, remember to keep an eye focused way up north in Alaska. It will show how some seemingly simple security access can be evaluated and point out possible unknowns in our other port expansion projects. Alaska can become the petri dish for all US ports. IP
THE AUTHOR Oliver Hedgepeth, Ph.D., is program director of American Public University’s transportation and logistics management program. He can be reached at email@example.com. APU, winner of the Sloan Consortium’s Ralph E. Gomory Award for Quality Online Education and Sloan’s Effective Practices Award, offers 79 online degree programs through American Public University and American Military University. Visit www.apus.edu. 15
Risk and Reward
Are You Protected?
Cargo and Blockage of Berth Coverage M
By C. Daniel Negron Vice President, Thomas Miller (Americas) Inc.
arine terminals employ many types of heavy machinery to perform their operations. From mobile equipment to gantry cranes, or even conveyor systems that are structurally integrated into a building, these units can be as basic or as sophisticated as the operator’s needs dictate. The purchase of any equipment represents a significant financial investment, and that investment is typically protected through an equipment insurance policy. Often referred to as an inland marine policy, this insurance is designed to cover the physical damage to the unit, and by extension, any loss of income and related increased costs of working that arise from a covered loss while the unit is being repaired. The policy is designed to become effective when the equipment is deployed in the operation. But what happens before the time of deployment also merits consideration. In a recent case, a marine terminal ordered a rail-mounted gantry crane from a manufacturer in the Far East. The crane was transported fully assembled from to the operator’s facility on a specially built ship. When it arrived at the terminal, the crane was lowered onto the dockside rails, and the ship readied itself for departure. Unbeknownst to the ship’s crew, however, a section of the ship’s superstructure became entangled with the boom of the crane. As the ship moved away, the crane was lifted from its rails, was pulled over the apron of the pier, and was left partially hanging over the water. The crane suffered significant structural damage, and the pier was rendered inoperable while the damages were assessed and repairs were initiated. The case is significant, because cover for the crane had not yet attached to the operator’s equipment policy and was therefore not insured for physical damage. Likewise, the business interruption was not covered because business interruption insurance normally follows from an insured peril. Thus, in order for business interruption to apply to the case at hand, it must have resulted from an insured damage claim. This case illustrates the need for two sigwww.inlandportmagazine.com
nificant covers. The first is the cargo insurance. During any ocean voyage, any goods that are being transported can be insured on a direct damage basis for losses that occur during transit. Most cargo underwriters consider their cover to be terminated once the goods are delivered to their destination, irrespective of whether or not additional steps must be taken to render the goods fit for their intended purpose. However, a cargo underwriter can agree to extend the terms of his insurance to include the period after delivery and during the erection of the unit. Similarly, the operator can obtain a policy to cover the engineering risk while the unit undergoes its installation process. Perhaps most significantly, to ensure that the business interruption and increased costs of working are insured, the operator can purchase what is known as “Blockage of Berth” cover. This insurance provides a cover for the operator on the happening of any insured event, even if it does not involve damage to an insured piece of equipment. For example, a vessel that is docked at his facility may become disabled and might not be able to sail for a given period of time, thus resulting in a blockage of that berth. The blockage itself would be the event that triggers the business interruption, and the resulting loss of income and increased costs would be covered. In the aftermath of the crane incident, the operator has arranged for the manufacturer to repair the unit, and he has filed a suit against the steamship line to recover his losses and extra expenses. Fortunately, he has a reasonable expectation that these will be paid. But with the proper insurance in place, the added burden of a lawsuit can be avoided. IP
THE AUTHOR 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 him at daniel.negron@ thomasmiller.com. March/April 2011
Making the Marine Highway Safer An Exclusive Interview with PortVision CEO Dean Rosenberg In 2010, PortVision personnel and data were deployed to provide support during a number of key events and initiatives, including: • Enhancing visibility and reporting during the Deepwater Horizon Response; • Increasing efficiency and reducing costs for four refineries and over 100 stakeholders in an industry initiative along the Sabine-Neches waterway in Southeast Texas; • Protecting dock repair workers in Lake Charles, LA, through automated alerting when large vessel traffic threatened worker safety; • Empowering homeland security personnel with enhanced maritime domain awareness; and • Providing trade associations, port authorities and non-profit organizations with both real-time and historical vessel tracking and reporting tools in support of a number of policy-related initiatives. Dean Rosenberg, PortVision chief executive officer, recently received Professional Mariner magazine’s 2011 Plimsoll Innovation award. The honor is presented each year to individuals and organizations that embody the spirit of Samuel Plimsoll, the 19th century British Parliament member who strove to end the dangerous practice of overloading vessels. Mr. Rosenberg was kind enough to share his thoughts with IP on our industry, and his company’s place in it.
ortVision is an AIS-based business intelligence tool that goes beyond simply creating “points on a map.” The company’s service combines real-time visualization and historical information with powerful management tools to deliver a comprehensive view of vessel traffic in user-defined monitoring zones. The web-based service provides real-time visualization and historical reporting through a data warehouse that processes and analyzes over 40 million vessel movements each day. PortVision records all vessel arrivals and departures in covered service regions and can be configured to automatically alert users when events of interest occur. Historical playback and reporting features offer expanded opportunities to increase safety, security, efficiency, and market intelligence. PortVision subscribers include users from all major oil companies, large and small marine service companies, terminals, fleet owners, port authorities, and government agencies. Based in Houston, Texas, PortVision is a service of AIRSIS, a San Diego-based technology company. March/April 2011
Congratulations on your recent safety award. For those readers not familiar, can you give us a sort of bullet-point overview of the role your vessel-tracking software played during the tense moments of the Deepwater Horizon tragedy? We were contracted by BP to help provide greater visibility into what was occurring on the water during the Deepwater Horizon response, so that responders could better assess progress and more effectively allocate the more than 30,800 personnel, 5,050 vessels and dozens of aircraft that were engaged in various response operations. Our PortVision service uses vessel data transmitted by Automated Identification 17
System (AIS) to provide real-time vessel tracking as well as historical position reporting. Every commercial vessel that trades at a U.S. port and most international destinations has been required to transmit its ship identifier and location through standard AIS transponders since 2005. What we’ve done is built a receiver network on land and offshore to allow shore-side users to get benefits from the technology. These shore-side users, whether it’s a dispatcher, safety officer, scheduler, or a number of different types of users, are getting the benefit of not only the real-time vessel positions, like the bridge crew on the ship, but also the historical information. For the Deepwater Horizon incident, we provided AIS data to support the responders. The unified command for the incident was run out of Houma and then there were additional command centers 18
associated with the response. Most of our activity was with the Plaquemines Parish operating branch located in Venice. Many different types of government users had access to our system during the Deepwater Horizon spill response. There also were smaller commercial boats that were brought into the response, which were referred to as “vessels of opportunity” -- fishing boats and shrimp boats that were called in to assist in some of the clean-up activity. The challenge with a lot of those smaller boats is they don’t meet the standard to require AIS, since they were under the length requirement designated by the Coast Guard for mandatory AIS installation. In these cases, we deployed our PV-OnBoard batteryoperated satellite transmitters so that all vessels could be included in the integrated display, and the team could have a common operational picture of all vessels that were involved in the response. www.inlandportmagazine.com
Can you highlight some of your success stories at a few smaller inland facilities throughout the country? The Port of New Orleans uses PortVision to enhance visibility and help improve business processes associated with anchorage use. Along the Sabine-Neches waterway, over 200 users of all sizes collaboratively use PortVision to increase efficiency of that waterway. The PortVision initiative along the Sabine-Neches was launched by the four major refineries that operate along the waterway. They in turn have introduced PortVision to marine service providers, vessel operators, pilots, tugs, and government agencies who all have a stake in improving waterway efficiency. Another example is the Port of Morgan City (POMC), on the Atchafalya River at the junction of the Old River and the Red River in east-central Louisiana. The Port has been using our service to generate March/April 2011
historical performance data for validating its position in the U.S. Army Corps of Engineers (USACE) national port ranking. Despite handling more than 2 million tons of domestic cargo and materials through its waterways, annually, it had never been able to compile and submit all of the information that the USACE needed to consider it for inclusion as one of the top 100 ports listed on its Navigation Data Center (NDC) Waterborne Commerce Statistics Fact Card. Many vessels in its waterways carry undocumented tonnage, and most of that tonnage is moved through private facilities or not accompanied by manifests with the information the POMC needed about vessel type, name, origination/ destination, and commodity onboard. All of this information, though, was readily available in the PortVision database. PortVision enabled the POMC to create reports that were fully accepted by the USACE, which assigned the POMC a #98 ranking on its Top 100 list, significantly improving its ability to seek and win funding from the Office of Management & Budget for maintenance, dredging, and other projects. We also have quite a few inland terminals and barge operators who use PortVision to enhance efficiency of their dispatch and scheduling operations. There is always some time that elapses before technology trickles down from the huge, coastal port areas to the inland facilities. Can you address the inland port facilities, here, many of which are smaller with necessarily smaller budgets, and tell them how PortVision products can specifically benefit them? The PortVision service can be used to improve safety and efficiency and deliver valuable business intelligence in a wide variety of applications for the smaller port facility, as well as regional industry initiatives and other maritime industry groups and users. For instance, in addition to major initiatives like the Sabine initiative described above, PortVision has also has been used by trade associations, port authorities and non-profit organizations to provide both real-time and historical vessel tracking and reporting in support of policy-related initiatives. And in Lake Charles, LA, it has been used to protect dock repair workers through automated alerting when large vessel traffic threatened worker safety. PortVision can provide benefits to users ranging from the small inland port authority trying to optimize operational efficiency or March/April 2011
comply with environmental initiatives, to large multi-national vessel operator trying to track and validate millions of dollars annually in demurrage fees. And because the service is provided via the web, there is a very low cost of entry to begin benefitting from the data and business intelligence. The ease of adoption is one of the reasons why we have had our early success with inland river users. Your web-based products not only strive to eliminate accidents on the inland waterways, they also can help analyze and determine exactly what happened afterward, right? Can you cite an instance where this was useful in maybe “setting the record” straight after conventional thought maybe assumed an incident went one way, and it really happened another way? AIS vessel-tracking intelligence is increasingly used as evidence in cases involving groundings, commercial disputes, colli-
sions, allisions and other claims and for demurrage-related events. PortVision has been consulted on many occasions to help customers defend against damage claims in federal courts. In fact, we’re involved in
several legal cases every month in support of our clients. In the past, attorneys would request this data from the local Coast Guard office and vessels involved in the maritime incident, usually through discovery and FOIA requests, which required considerable time and effort for
information retrieval. Typically, the data was incomplete and not available until several weeks after the casualty and, in some cases, only after litigation ensued. With PortVision, this information is readily available for refuting damage claims that might otherwise have resulted in costly fines and litigation. There have been many examples where, for instance, a vessel operator was sued for collision-related damages, but was able to use PortVision to prove that the ship was nowhere near the incident at the time it occurred. For instance, one towing company used PortVision’s historical data feature to re-create an event where they were accused of damaging a boat at a dock. They recreated the event in PortVision and showed that a larger ship had vacated the dock, and then another company’s tow boat made a decision to come in between the berth and its tug boat. After providing the appropriate parties with the documents, the claim was dropped, without requiring any underwriters or attorneys, saving about $25,000 - $30,000 and any possible punitive damages. How can government agencies and law enforcement, both local and national, benefit from what your products can do? The PortVision service is frequently used as a tool for government agencies and law enforcement to acquire and analyze maritime domain awareness (MDA) intelligence. In May 2010, the Department of Defense Executive Agent for Maritime Domain Awareness (DoD EAMDA) announced that it would begin integrating a suite of capabilities to enable the sharing of non-classified information, including AIS data, in support of building partnership capacities and theater security cooperation. The EAMDA said these are critical elements to help ensure effective MDA and safeguard maritime security. The PortVision service can be used in these applications to enhance marine terminal security by enabling operators to define their own customized fleets of chartered vessels, workboats, tugs and barges that they wish to monitor, and to receive and share e-mail and text-message alerts about fleet movements. It also enables them to automatically timestamp and cap-
ture data about arrivals, departures and other vessel events, add their own documents and information about dock-side events for each vessel call, and quickly access historical data and animated playback for any selected vessels and events. These capabilities streamline security planning and threat investigations, and enable terminal operators to incorporate both real-time and historical vessel locations and movements into security monitoring and analysis. What are your general goals as a company for the near future? PortVision is in growth mode, having increased revenue last year by 48 percent. As we grow, we are committed to listening to our customers and enhancing our product, service coverage, and content to continually maximize the value that we can bring. We have a great community of over 1,000 users who interact with us on a regular basis. In fact, many of the applications and benefits I described above came from our customers. We will continue to innovate, but it will be our customers and partners who point us in the right direction.
Can you give our readers a specific peek at what’s on the horizon for PortVision, software or hardware-wise? Maybe a sneak-peak at a new product or two coming around the bend? We will continue to add PortVision features and functionality so the service can deliver tailored, enhanced capabilities for specific applications for our customer needs. One of our first such offerings was our TerminalSmart product, released last year, which gives terminal operators access to PortVision’s comprehensive real-time and historical AIS database with a dashboard that is configured and optimized to meet the specific needs of the complex marine terminal environment. Terminal management can use it to streamline vendor and resource management, handle all traffic scheduling, dispatch and management, perform integrated demurrage reporting and analysis, and accelerate and improve incident response – all from a single, comprehensive, web-based solution. For inland river and offshore fleet operators, we have developed a “tri-mode” solution that integrates satellite and cellu-
lar communications into our AIS network to provide significantly enhanced 2-way vessel tracking and communications at a 50% cost reduction from legacy satelliteonly providers. Imagine being able to have real-time vessel reporting when your fleet is near-port, with guaranteed reporting via satellite or cellular on a least-cost basis when underway. We have had some very exciting results from our initial customers who have integrated tri-mode communications into their dispatch and operations processes.
Tell us a bit about yourself. What do you like to do away from the office? I split much of my time between our Houston and San Diego offices, but when I am home I really enjoy getting out on the bike. My wife and I did the MS 150 ride from Houston to Austin with some of my PortVision customers (and friends!) last year, and I race bikes on a local team in San Diego when my schedule permits. Some of our best ideas for PortVision can be traced back to my “thinking time” out on a long ride! IP
Sennebogen Mourns Founder E
rich Sennebogen, Sr., the driving force behind Sennebogen Machinenfabrik since 1952, died March 21, 2011, at the age of 79 after losing a battle with cancer on. Starting in 1952 at the age of 21, with 13 employees, Mr. Sennebogen began building agricultural utility equipment and today, for the last ten years under the direction of his sons Erich and Walter, this global organization with over 1000 employees designs and builds hydraulic material handling equipment, rope excavators, cranes, carrier equipment and steel components. It has established manufacturing facilities in Germany and Hungary along with offices and warehousing operations in the United States, Russia, Singapore and Dubai. Sennebogen has been a leading name in the global material handling industry for nearly 60 years. Based in Stanley, North Carolina, within the greater Charlotte region, Sennebogen LLC offers a complete range of purpose-built machines to suit virtually any material handling application. In a press release from the Company’s head office in Straubing, Germany, he was remembered as an entrepreneur with a “no such thing as ‘can’t” attitude that now empowers their design and engineering teams as well as their distribution and service partners in over 70 countries. It is this attitude that has allowed Sennebogen to become the market leaders in every industry they serve by meeting the needs of their customers and working with them to solve their challenges. Always an inspiration to all who knew him, Mr. Sennebogen had recently received many honors including the Order of Merit of the Republic of Germany, First Class; the Bavarian Order of
Merit; the Gold Citizen’s Medal from his hometown of Straubing; Businessman of the Year – Balantonfured, Hungary; and the Lion’s Club Gold Medal of Merit. Constantino Lannes, President of Sennebogen LLC, located near Charlotte, North Carolina, in a message sent to a network of dealers and friends, “The passing of Mr. Erich Sennebogen Sr. saddens all of us that knew him, or just knew of him. Although he was not a man to waste his words, he always had a good word to provide the right amount of motivation for
those around him.” “He was an unbelievable man that started from nothing in 1952 and built up the Sennebogen Group of companies to what we are today.” Lannes continued, “I always was fascinated with his ideas and innovation. He understood and was able to combine men and machines in order to optimize results.” IP
New Wireless Grapple Scale B
ulk-handling operations from port facilities to quarries can now add in-motion weighing capabilities to their grapples, clam-shell buckets and lifting magnets with greater accuracy, reliability and simplicity than previous scales. Canada’s RMT Equipment’s new RMT-XW in-motion grapple scale system combines wireless data communication and control with a new load-sensing technology. Marc Lefebvre, North American Sales Manager for RMT Equipment, reports that the RMT-XW system improves the accuracy of load measurements to within 0 ± 3% of true weight, while reducing installation and setup time to as little as two hours. Lefebvre expects to see the new system welcomed in applications ranging from aggregates production to agricultural loading as well as log-handling and recycling operations. “The fact is, this scale requires no configuration time at all,” Lefebvre say. “Installation is as simple as replacing the attachment link with our weigh link, extend current hydraulic lines, then mounting the remote display in the cab. That’s it!” Along with simplifying installation, the wireless design also ensures higher reliability in severe-duty applications by eliminating extra electrical connections from the weighing link to the in-cab monitor. The RMT-XW grapple scale achieves its accuracy by using technology derived from strain gauges or load cells that engineers use in structural testing devices. The new scale is self-contained within a weigh link that replaces the yoke or link of the grapple attachment. A weigh chamber in the link integrates the high resolution load cell and motion controller, including a wireless antenna and battery pack. According to Lefebvre, the RMT-XW scale can help material handling and bulk hauling operations alike to load more efficiently, at less cost, and with greater safety. Material handlers and excavators equipped with the new scales will allow operators to continuously monitor loads as they unload and sort incoming material. Immediate, accurate weighing at the bucket also allows them to consistently load correct weights when they transfer material for mixing operations such as asphalt or fertilizer production. When loading trucks for deliveries, the grapple scale eliminates guesswork so drivers can take on maximum weights with their first pass in the loading area without having to re-weigh at the gate. 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 24
Stastny New Executive Director at Port of Victoria
he Victoria County Navigation District has announced Jennifer Stastny is the new Executive Director for the Port of Victoria. Stastny has been the Operations and Security Manager for the port for the past eleven years. Commissioners made the decision in late March during a strategic planning session. See our interview with her on p. 28 of this issue. “I’m honored and thrilled to be named the new Executive Director,” said Stastny. “The Port of Victoria is busy, and growing. We have 2000 acres of premier water and highway frontage for development. We have new industry with the construction of the new Caterpillar plant in Victoria, and the oil and gas industry is booming with the Eagle Ford Shale activity. It is a good time to be at the Port of Victoria.” Stastny is also a board member of Inland Rivers, Ports, and Terminals, and the Gulf and Intracoastal Waterways Basin Chair. A new container on barge service between the Port of Houston and the Port of Victoria is expected to begin by the fourth quarter of 2011. Caterpillar and other industrial clients are planning to use the waterway to decrease their transportation cost, and improve efficiencies and their carbon footprint. The Port of Victoria recently expanded its rail capabilities, and completed a new bulk liquid cargo dock that will give Victoria another competitive advantage when competing for industry. Stastny was part of the effort to expand the port. The Port of Victoria is an inland shallow draft port connected to the Gulf Intracoastal Waterway and world markets via the Victoria Barge Canal. It is located halfway between Houston and Corpus Christi, on the mid-Texas coast. Visit www.portofvictoria.com. IP
Industry Notebook Surging container volumes at the Port of New Orleans so far in 2011 resulted in a record month for the cranes used to move the 20- and 40-foot boxes from ship to shore. The port’s container gantry cranes, rented by terminal operators to load and unload containers, were used 927.2 hours in March – a 25 percent increase over the same month one year ago. For the first three months of 2011, usage was up more than 350 hours or 18 percent compared to 2010, which was a record year for the Napoleon Avenue Container Terminal. Crane usage is a strong calculator of total volume and a source of revenue for the Port. While the number of TEUs for March 2011 has not been calculated yet, TEU volumes totaled 81,987 for the first two months of the year, up 22.8 percent compared to one year ago. Last year, TEU volumes topped 427,518 – a record for the terminal. The Port set a record in September of 2010 with 43 container vessels arriving at Napoleon and broke that mark in January with 44. The Port has averaged more than 40 container vessels each month, or more than one per day, for the last six months. In March, the Port welcomed 43 container ships – 19 Mediterranean Shipping Company vessels, 11 Hapag-Lloyd vessels, five Maersk vessels, seven Seaboard Marine vessels and one CSAV vessel.
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According to vessel schedules, 44 container vessels were slated to work cargo at Napoleon in April. Work is ongoing to expand the terminal’s 594,000-TEU current capacity. Construction is underway on the $7.1 million Napoleon Ave. Stage “C” expansion, which will add acreage to the marshalling yard and create efficiencies in container handling. Two new container gantry cranes will be installed by September. South Korea-based Doosan Heavy Industries & Construction recently completed the construction of the cranes. They have a 65-longton lift capacity, 110-foot lift height, and a 167-foot outreach, making the cranes the largest in the Port’s history. The overall cost is $29.5 million. Kirby Corporation announced completion of the purchase of United Holdings LLC, a distributor and service provider of engine and transmission related products for the oil and gas services, power generation and transportation industries, and manufacturer of oilfield service equipment. The base purchase price was $270 million in cash, before post-closing adjustments. The purchase was financed using Kirby’s existing cash and revolving credit facility. United, headquartered in Oklahoma City, Oklahoma with 21 locations across 13 states, distributes and services equipment and parts for Allison Transmission, MTU Detroit Diesel Engines, Daimler Trucks NA, and other diesel and natural gas engines. United also manufactures oilfield service equipment, including hydraulic fracturing equipment. United’s principal customers are oilfield service companies, oil and gas operators and producers, compression service companies and transportation companies. In other news, Kirby signed an agreement to purchase the ship bunkering operations of Enterprise Marine Services LLC for approximately $53 million in cash. The asset purchase will consist of 21 inland and offshore tank barges and 15 inland towboats and offshore tugboats. Enterprise provides transportation and delivery services for ship bunkers (engine fuel) to cruise ships, container ships and freighters primarily in the Miami, Port Everglades and Cape Canaveral, Florida area, the three largest cruise ship ports in the United States, as well as Tampa, Florida, Mobile, Alabama and Houston, Texas. Kirby also entered into an agreement with K-Sea Transportation Partners, an operator of tank barges and tugboats participating in the coastwise transportation primarily of refined petroleum products in the United States, pursuant to which a subsidiary of Kirby will merge with K-Sea, with K-Sea surviving the merger as a wholly owned subsidiary of Kirby. The total value of the transaction is approximately $600 million (before post-closing adjustments and fees) and will consist of cash, Kirby common stock and the refinancing of K-Sea debt. K-Sea’s fleet, comprised of 58 tank barges with a capacity of 3.8 million barrels and 63 tugboats, operates along the East Coast, West Coast and Gulf Coast of the United States, as well as in Alaska and Hawaii. K-Sea’s tank barge fleet, 54 of which are doubled hulled, has an average age of approximately nine years and is one of the youngest fleets www.inlandportmagazine.com
in the coastwise trade. K-Sea’s customers include major oil companies and refiners, many of which are current Kirby customers for inland tank barge services. Headquartered in East Brunswick, New Jersey, K-Sea has major operating facilities in New York, Philadelphia, Norfolk, Seattle and Honolulu. Boatracs Inc., a leader in providing integrated communications and software solutions to the maritime industry, announced today it has completed the installation of BT Forms, an electronic forms product, on 14 vessels for United Barge Lines (UBL), the inland transportation division of United Maritime Group. The project entailed the conversion of UBL’s Master’s Daily Log into an electronic form that captains can complete with their on-board PC, providing an efficient and easy-to-use form that transmits data in a cost effective and timely manner. “Feedback from the captains has been excellent,” said Rocky Gunter, Director of Profitability & Financial Analysis for UBL. “We now have consistent and accurate vessel information and the ability to generate valuable shore-side reports for operational analytics. BT Forms is a big win for a maritime operation like ours – ease of use for our captains, streamlined operations for management and better customer service for our clients.” The Port of Indiana-Burns Harbor celebrated the opening of its 41st international shipping season with the arrival of the M/V Avonborg. Port and local officials boarded the vessel for a brief ceremony, presenting the ship’s captain, Capt. Gert J.K. Mol, with gifts including an Indiana state flag and a vintage Port of Indiana South Shore poster. The first ship signifies the start of the shipping season, the arrival of vital materials for local business and the start of another work season for longshoremen, crane operators, truckers and businesses that depend on the port. The Avonborg was the first ship through the St. Lambert lock in Québec, Canada, as the St. Lawrence Seaway opened its 53rd shipping season on March 22. The vessel carries 75 of the longest wind turbine blades in existence in North America on their journey from Esbjerg, Denmark to Payne, Ohio, where the turbines will be installed in Horizon Wind Energy’s Timber Road project. According to USACE reports, four barges that sank in March upstream of Dam 25 on the Mississippi River near Winfield, Mo., impacted river flows above the dam and impeding operation of one of the dam’s gates. The barges are creating approximately one foot of additional head differential at the dam and inducing additional flooding. The USACE was also concerned that significant scouring may be occurring both upstream and downstream of the dam as a result of the sunken barges, which could put the entire dam structure at risk of failure. The Corps of Engineers also used an additional guide boat at Lock and Dam 25 to assist tows bound downriver. While the barges are not in the navigation channel, their location has altered the current enough that a smaller “helper boat” has been brought in to assist March/April 2011
tows entering the lock chamber from the upstream side. The extra utility boat will help keep barges headed downriver pressed up against the lock wall. Without it, the currents could pull the barges toward the dam. The barges were being pushed downstream March 6 by the MV Julie White, part of American River Transportation Company’s towing fleet, when they impacted the river wall bullnose approaching Lock 25. The four barges loaded with gravel broke free and sank. There were no injuries. The U.S. Coast Guard is currently investigating the cause of the incident.
once registration has been completed – this can be achieved in a matter of minutes – the forwarder will have the ability to request cover for a specific move online. TT Club encourages those interested to apply for access to the system via their insurance broker. The great advantage from the forwarders perspective is that following completion of the registration process they obtain access to instant cargo insurance quotes, attachment of cover & document production. The system is also supported by an integrated accounts package and a worldwide claims service.
The first oceangoing vessel of the 2011 navigation season arrived in the Port of Duluth-Superior on Monday, April 11. The Cyprus-flagged Federal Leda sailed beneath the Duluth Aerial Lift Bridge at 7:10 a.m. and headed to CHS in Superior to begin loading durum wheat. Her arrival marked the first saltwater vessel (or “saltie”) into the Twin Ports this year to have transited the Great Lake St. Lawrence Seaway system (GLSLS) – the entire 2,342-mile inland waterway from the Atlantic Ocean. The Duluth Seaway Port Authority hosted a First Ship Ceremony on April 12, to welcome Captain R. Kapuscinski and his crew to the Port of Duluth-Superior.
A delegation of officials from Central Elgin, Ontario met in Cleveland with Cleveland-Cuyahoga County Port Authority officials and others about launching cross-lake ferry service. Officials from both sides agreed to craft a memorandum of understanding outlining their shared vision and next steps. If a ferry service results it would begin on a pilot basis, operating between Cleveland and Port Stanley with a focus on tourism and other passenger demand. “We were quite pleased with our discussions and impressed by Cleveland’s many tourist attractions,” said Central Elgin Mayor Bill Walters. “I believe this proposed ferry service would create a wonderful international gateway and cultivate new opportunities for travel and economic development.” Port Authority President and CEO Will Friedman reopened ferry discussions with Central Elgin officials last fall. The service had been contemplated for years, but did not materialize, in part because the Canadian government had not completed a long-awaited transfer of the waterfront property to local control. Initially the concept was to create a service primarily serving as a short cut for crossborder trucking. The focus is now on tourism, recreation and other passenger demand, with only limited truck traffic. That would allow for a smaller more fuel-efficient ferry that could accommodate passengers and cars as well as bicycles and tour buses. The concept fits with a broader vision for the uses of Port Stanley’s harbor. Ferry service could also result in increased tourism for other Ontario destinations including London, St. Thomas, Kitchener-Waterloo and Stratford – as well as other destinations in Northeast Ohio. “Friday’s meeting was a great start toward creating a possible new border crossing connecting downtown Cleveland and Ontario,” Friedman said. “We still have a good deal of work to do to make the service a reality. But we share the same goals and vision for the service – and see terrific opportunities for leisure and business travel by boat that we believe residents of Northeast Ohio and Ontario would embrace.” IP
Specialist freight transport and logistics insurer TT Club has launched an online service providing swift, extensive cargo cover for freight forwarders and logistics operators globally. After extensive trials of the system over the last twelve-months, TT Club has honed the process of application for, through to confirmed provision of, cargo cover specifically addressing the practical needs of the freight forwarder and logistics operator. The product, known as TT Club Forwarders, is one of few now available globally and will benefit from the insurance mutual’s extensive international underwriting and claims service. Graham Hooper, TT Club’s Senior Underwriter leading the initiative emphasised the importance of crafting the new online service to ensure secure cover for a group of freight companies trading under very particular market conditions. “Freight forwarders and other intermediaries must often react quickly to the demands of their customers. These involve moves of diverse commodities in differing volumes via varied modes across all geographies. The complex and unpredictable nature of these demands has in the past often made securing comprehensive insurance cover difficult,” explained Hooper. “In designing TT Club Forwarders we have been very much aware of the need to simplify the process of accepting a given risk in these circumstances.” TT Club Forwarders allows brokers to apply on behalf of their client for access to the system and
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The Last Word
Jennifer Stastny Executive Director, Port of Victoria (TX) How did you become involved in this industry? Pure luck – actually looking for a change at the right time and landing in the right place. I hit the ground running here at the Port of Victoria 11 years ago and have never looked back. Took me only a short amount of time to realize this is where I needed and wanted to be. I was just fortunate enough to have something I truly enjoy doing right in my own backyard. What was your favorite project or assignment you’ve been involved in during your career, and why? The overall development of the port; bringing it from the local party spot – area kids actually used to have keg parties on the dock – to a viable professional port facility has been an amazing journey. Prior to 1999, the Board of Commissioners for the Victoria County Navigation District were happy to mow the grass a couple times a year and generally “check the water level” in the turning basin. A change in the makeup of the Board brought a new vision and the establishment of the Port of Victoria, complete with a new Executive Director. Eleven years and a lot of hard work later, we are in excellent position to continue to grow and enhance transportation operations and availability to new and existing industry in South Texas. I am very proud of what we have accomplished as a team at the Port of Victoria. What was your least favorite? Probably dealing with the steep learning curve experienced by some to the new way of doing business post-September 11th. Some of the operators fell into step, knew what we were doing, and why, and became our partners in the process. Others became offended and took it personally. But, there were also some good laughs during that time – such as when the guy drove down from Houston with a tanker truck loaded with diesel and all he had on him for ID was a Sam’s card. By the time it was all said and done hours later, I had the company’s ops manager on his way down to drive the truck in the gate to refuel the boats and asking me if we had a dress code to go along with all the new regulations, as all he had on was a t-shirt and shorts – he wasn’t changing! What’s the last song that played on your CD or MP3 player? Cass Elliot’s “Dream a Little Dream.” Another great one gone too soon! What accomplishments – professional and personal – are you most proud of? Professionally, I am incredibly proud and
A Revealing Look at Industry Leaders
humbled by the level of confidence expressed by the Commissioners of the Victoria County Navigation District in appointing me Executive Director. I am also very proud of the relationships we have developed with our customers. I try to share with each one that we are their advocates in business. It’s all about partnerships. Unless they are successful, we are not successful. Personally, I have been married to my best friend for 27 years and we have raised three wonderful children – all without accidentally killing them or ourselves! I know there were days we had our doubts! If you could go back and tell your teenage self one thing, what would that be? Only one thing? Probably that though my teenage self won’t appreciate it, my parents were right! What do you want to be when you grow up? Who said I have to grow up? I began realizing a few years ago that nature plays a very cruel trick on us as we get older. The mind says we are still in our early 20s, but the body argues and throws an ugly temper tantrum all the way! Tell us something no one knows about you. I’m “outdoorsy.” Love to kayak, hike through the forests, etc. 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? Bang for the buck and overall importance of inland ports and waterways as the economic engines for multitudes of cities and communities throughout our country. Money invested in the US inland waterway system is an investment which realizes a rapid return and improves quality of life issues on so many levels. If you make the general public understand one thing about the inland ports and waterways industry, what would it be? So hard to pick just one, as I think the inland ports and the connecting waterways system is largely an unknown entity to 99% of the population in this country. When people think of ports, they think of Long Beach, Tampa, New York/New Jersey, etc., and generally the big cargo ships and cruise terminals. I wish our industry as a whole had the ability to run commercials along the lines of what you see UPS, FedEx, CSX, and the like, illustrating the importance of logistics and how they play a www.inlandportmagazine.com
part economically and environmentally. I don’t think any of us can go five minutes without coming into contact with something that didn’t have one of its components or ingredients moved on the inland waterway system at some point in its development. What’s your favorite? Movie: Best in Show Book: Whatever I happen to be reading at the time. I bought a Nook a few months ago and love the fact I can “go to the bookstore” in my jammies! TV Show: Maybe I could have a favorite show if I allowed myself the time to watch TV. I can’t sit still. Always think of something else I should be doing if I sit for longer than five minutes. Sport: I can get into basketball, depending upon who is playing, but admit to an addiction to following left turns on the weekend. Those who share my addiction will understand that last phrase. What piece of equipment has not been invented yet, but will revolutionize the inland port industry when it is? It’s not equipment, but a 36-hour day would be nice! If you could change one thing about yourself, what would it be? Maybe to be a bit taller. I’m only 5’2”, but in my mind I’m 6 feet tall! What was the first concert you ever attended? Lima (Ohio) Symphony Orchestra performance. I think I was about four or five years old at the time. Give us your thoughts on the current state of the inland port and waterway industry, where it has been, and where it is going. How can a publication like Inland Port Magazine help? I think the next decade will be a challenging one. In my opinion, American industry is reawakening to the possibilities afforded their companies through use of the inland waterways – both economically and operationally. The challenge is going to be educating the public and government officials to realize our nation’s aging infrastructure, much in need of maintenance and repair, is not limited to just the rail and road ways. Folks fight for lane space on the roadways with semi trucks and wait for trains at rail crossings, but a good number of people never laid eyes on a barge or towboat in their lifetime. Out of sight, out of mind. And maintaining navigable depths and efficient locks isn’t a day-to-day reality for them. If it isn’t readily visible, the justification for investment is an uphill battle. Inland Port Magazine can help by continuing to cover the hot button issues and help us tell our story the way you have in an eyecatching professional format. I became a fan when you first presented your plan to publish a glossy magazine solely focused on inland ports and waterways to the IRPT Board in 2009 and I continue to be a fan! Thanks for all you do and helping us tell our story. IP March/April 2011