Inland Port 2011 Issue IV
Ports of Indiana
Stability Equals Growth
Shore-Side Power Pedestals Pier Repair by WJ Castle Interview with WCI President Mike Toohey
IP Editorial Board
Jennifer Carpenter American Waterways Operators Sr. Vice President-National Advocacy, AWO www.americanwaterways.com
INLAND PORT MAGAZINE 2011 Issue IV Volume III, Number IV ISSN 2156-7611
HJP
Published bimonthly by
Debra Colbert Waterways Council Communications Manager, Waterways Council www.waterwayscouncil.org
Hudson Jones Publications, LLC Houston, Texas • Tulsa, Oklahoma 281-602-5400 Editor Daron Jones djones@inlandportmagazine.com
Keith Garrison National Waterways Conference Executive Director, Arkansas Waterways Commission www.waterways.org www.waterways.dina.org
Michael Gerhardt Dredging Contractors of America Assistant Executive Director, DCA www.dredgingcontractors.org
Michael McQuillan Inland Rivers, Ports & Terminals Vice President, Hanson Professional Services www.irpt.net
Director of Advertising Jo Anne Hudson jhudson@inlandportmagazine.com
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Inland Port 2011 • Volume III, Issue IV
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Stability Equals Growth for Ports of Indiana
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Shore-Side Power Pedestals: A Better Way to Power Docked Vessels?
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WJ Castle Saves Pier
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IP interviews Commissioners Marvin Ferguson and Greg Gibson, along with port CEO Rich Cooper
IP interviews SourceOne’s Jules Nohra
Castle repairs a pier structure on the Delaware River
RISK & REWARD
When Bodily Injuries HURT
By C. Daniel Negron, Thomas Miller Americas
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America’s Ports and Waterways: A Solid Return on Investment
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TWIC: Is it Worth the Trip?
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Reintroducing America’s Central Port
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Change, Change, Change
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By Waterways Council Chairman Rick Calhoun
By American Waterways Operators’ Jennifer A. Carpenter
Illinois’ Tri-City Regional Port District gets a new look
An exclusive interview with WCI’s New President and CEO, Mike Toohey
23 Expansion for Toledo-Lucas 25 New Orleans Welcomes PIANC USA & Smart Rivers Conference 27
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Industry Notebook
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Ports of Indiana
Stability Equals Growth for The Ports of Indiana showed healthy growth in 2010. Among its achievements was shipping the most cargo since 2006. With this continued growth at Indiana’s three ports – an 8% increase in 2010 shipments – comes continued stability, with the reappointment of key port leaders. In this exclusive interview, IP hears from the heart of the Ports of Indiana leadership team.
Commissioner Marvin Ferguson
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Commissioner Greg Gibson
he Ports of Indiana handled more than 7.7 million tons of cargo at its three ports in 2010 – an increase of eight percent over the previous year. New cargoes and agricultural-related shipments helped propel the state port system to its largest annual tonnage since 2006. The ports experienced business growth on several fronts in 2010, including the purchase of new land, investing $12.5 million in new infrastructure, expansions at five port companies, opening of the ports’ largest facility and extension of foreign-trade zone services to more than 20 counties. “The Ports of Indiana enjoyed one of the best years on record in 2010,” said Rich Cooper, CEO of the Ports of Indiana. “Despite recent economic troubles, this is the third consecutive year that overall shipments have increased, and this was our second largest total in 12 years. What’s even more exciting is that many of last year’s developments were designed to seed future growth. A very high standard has been set for 2011 and we have to capitalize on the momentum.” In 2010, there were significant increases in shipments of grain, fertilizer and steel, but the biggest impact came from the arrival of new cargoes: ethanol, distiller’s dried grain (DDGs) and “heavy lift” cargoes, which included building-size storage tanks, transformers and ship engines as well as a windmill project that required 11 shiploads of components. Worldwide demand for local grain drove up agricultural shipments for both outbound grain (13 percent) and inbound fertilizer (22 percent), while steel shipments gained momentum from a recovering U.S. manufacturing sector to increase 12 percent compared to 2009. Gov. Mitch Daniels recently reappointed two key leaders for the Ports of Indiana commission, as Marvin Ferguson and Greg Gibson were each called to serve another term. “Our commission includes some of Indiana’s finest business minds,” said Cooper. “The governor did our ports another huge favor by reappointing these two men. Both Marvin and Greg bring a wealth of business experience to our board and are huge contributors to our organization.” 4
CEO Rich Cooper
Ferguson is the longest-serving member on the board, now in his 19th year with the Ports of Indiana. In the organization’s 50-year history, only three out of 37 total commissioners have served longer. Gibson is starting his second term on the bipartisan commission, which is made up of seven members serving staggered four-year terms. The board establishes policy for the Ports of Indiana and approves all major projects, annual budgets and strategic objectives for the organization. Ferguson founded the Ferguson Steel Co. in 1972 and went on to frame some of Indianapolis’ and Cincinnati’s tallest buildings. Gibson is well known as one of the most successful business people in Indiana with a strong track record of entrepreneurial success in a variety of business ventures throughout the United States, including commercial real estate development, trucking, excavation, coal, solid waste landfill development and waste industry advisory services. Ferguson, Gibson, and Cooper were kind enough to share their thoughts on where the Ports of Indiana stand, and where they’re headed. •••••••••••••••••••• Congratulations on your reappointments to the Ports of Indiana Commission. How important is continuity of personnel to running a successful board of commissioners in the inland sector? Ferguson: One of the major assets of continuity of personnel is having the wisdom of experience to prevent redundancies and past-mistakes in commission and staff discussions and actions. Balancing this is the new and original thought that comes from new commissioners appointed in a staggered rotation by the governor. It takes both experience and inspired new thought to make an efficient commission.
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Gibson: Our business is based on establishing long-term relationships with customers, and stability in our leadership is vital to growing business. Indiana’s port system has a very unique business model that requires an understanding of transportation modes, as well as industrial development and commodity markets for steel, agriculture and industrial cargoes, just to name a few. Having commissioners with this kind of experience makes our board even more efficient and resourceful. Marvin, you are indeed the elder statesman of your board. How have the board, and indeed the ports themselves, changed in your 19 years? Ferguson: It seems I’ve had a lifetime of good memories and friends on this commission, and to see the long list of companies that have come to our ports over that time gives me a great sense of pride and accomplishment for my years with the Ports of Indiana. A major change is that the current commission and staff are much more knowledgeable of the industry now than in the past. This is reflected in a higher level of efficiency in operations, administration and governance. We’ve gone through some difficult times, but I now look forward to every meeting because the commission today has excellent leadership and our CEO and staff are outstanding. You’re starting your second term, Greg. Which of your previous business experiences most closely and effectively translate into what you do with the board? Gibson: I’ve had the opportunity to work on a wide range of business ventures in my career, many of which involved business acquisitions and real estate development. In addition to vice chair, I also serve as the lead commissioner for reviewing land leases and agreements at the Ports of Indiana. We have a dual responsibility at the ports to serve as a public steward of state assets and to aggressively market our ports’ facilities and services to generate economic development in our state. There are certainly a unique set of challenges that come with managing port infrastructure on the Ohio River and Lake Michigan, but our organization has an excellent track record in business attraction. As a matter of fact, every dollar the state invested into our three ports has generated more than $15 in additional investments. Tell us a bit about each of you away from the office. Ferguson: I’ve been retired since selling Ferguson Steel, a company I founded in 1972, and in addition to being a Ports of Indiana Commissioner, I also serve on the board of directors of Monarch Beverage and have since 1999. My wife and best friend, Bronwen, and I enjoy travel, but our main interest is our grandchildren, who are the center of our universe. Gibson: I try to spend most of my free time with my kids. They are seven and four years old and I am really having a blast with them. One of my favorite projects that I’ve worked on with my family was the development of the LaVern Gibson Championship Cross County Course in Terre Haute, Ind. It is a world-class facility that annually hosts the NCAA Division I and Indiana State High School crosscountry championships. I ran cross-country at Rose Hulman Institute of Technology in Terre Haute, and to be able to give something like this back to the 2011 Issue IV
The Port of Indiana-Burns Harbor moved 14-times more project cargo in 2010 than the previous year.
community is very important to our family. Can you both talk a little about the role of your board and how the commissioners work with port management? Ferguson: The relationship between a board and a management team is the foundation for an organization’s success. Our success has been built on trust, good communication and having clearly defined roles for both our board and our management team. The board understands that our role is to provide direction, develop policies and approve strategies. We have put a lot of effort into attracting and retaining high-quality business professionals to handle the day-to-day business at our three ports, and we want to do everything we can to support them so they can carry out the mission of the Ports of Indiana. Ferguson: Each commissioner provides governance based on his or her own unique or general business knowledge and the financial and operational information provided by the CEO and the staff. This communication is outstanding today and makes the job of being a useful commissioner a pleasure. Rich, what are the most important elements of leadership at the Ports of Indiana from your perspective? Cooper: There is just no substitute for experience and wisdom, and we are blessed with that on this commission. The group of commissioners that Governor Daniels has assembled is equivalent to some of the finest boards of directors you’ll find anywhere. It is extremely beneficial for our organization to have a board of directors with a wide range of experiences that closely relate to our business. All of these individuals have executive experience and a number of them are business owners and have great insight into what it takes to make our ports successful. You had more than an 8% increase in tonnage in 2010. What are the main factors you attribute that success to? Cooper: We have a couple of key things going for www.inlandportmagazine.com
us. We have excellent business partners at all three of our ports whose operations provide diversity in our cargo mix. When one industry sector is suffering there always seems to be someone else picking up the pace. We partner with some of the very best stevedores in the maritime industry, companies like Federal Marine Terminals, Consolidated Terminals & Logistics and Kinder Morgan, and they are out there aggressively pursuing new opportunities. We had major increases this past year in grain, fertilizer and steel cargoes, but the biggest growth factor was project cargo, which was 14-times more than the previous year. Much of that can be attributed to a record 15 shipments of wind cargoes at our Lake Michigan port, including our first exports of U.S.-made turbines being moved from Iowa to New Brunswick. We also handed our first barge shipments of ethanol and DDGs at the Port of IndianaMount Vernon, which resulted from the opening of two ethanol plants in the area. Our ports also continue to handle large volumes of coal, limestone, salt as well as liquid bulk shipments. Let’s talk infrastructure. You opened your largest facility last year. What is new on that front for you folks? Cooper: Yes, Aventine Renewable Energy just opened Indiana’s largest ethanol plant at our Mount Vernon port. This is the single largest investment for a company at any of our ports, and it’s interesting to note that the cost of this one facility was more than the cost to build all three of Indiana’s ports. Our port system is a self-funded enterprise and receives no state funding, tax dollars, or subsidies for our dayto-day operations and maintenance, so it’s vital that we continue to develop new business opportunities in order to support ongoing infrastructure investments and future growth. Tell us about some of the companies who call the Ports of Indiana ‘home’. Cooper: We have some world-class companies at our three ports, ranging from steel mills and ethanol plants to international agribusinesses and high-tech 5
The Port of Indiana-Jeffersonville handled 1.7 million tons of cargo last year, the fourth largest total in the port’s 25-year history.
metal processors. There are more than 60 companies that have chosen to call the Ports of Indiana home, and a few companies that have locations at more than one of our ports. The economic impact of Indiana’s three ports is $5.4 billion per year, and that includes more than 43,000 jobs. We look at our port customers as partners, and we want to do whatever we can to help them grow their business. Even with your stellar tenant roster, are you always courting potential new tenants? How does that process work? Cooper: A key component of our success is building synergies with the companies at our ports. By locating here, not only do companies save on transportation costs but it’s highly likely their next-door neighbors at the port could be one of their customers or suppliers. Our ports in Burns Harbor and Jeffersonville are both steel campuses that have more than 20 companies providing complimentary steel services, including slitting, pickling, galvanizing, stamping, forming and even recycling. We also have built on various synergies with agriculture businesses handling grain, fertilizer, ethanol, soy products, DDGs and other related cargoes. These types of synergies create additional value for our port companies because it provides economies of scale, and let’s face it – it’s a lot cheaper to move cargoes across the street than across the country. And, when we attract companies that do business with our current customers, then it’s a win-win situation for everyone. Our steel customers tell us that they save roughly $10 per ton in logistics costs by being located at our ports. The logistics advantages created by being able to move cargo by ship, barge, rail and truck is the competitive advantage that sets us apart. When you factor in the best business climate in America is right here in Indiana, you begin to see why so many businesses have come to Indiana’s ports. We’re constantly working hard to make sure 6
companies understand the value that an inland port system located at the “crossroads of America” can mean to their business. How important are your growing Foreign-Trade Zone (FTZ) services to your success. Will you continue to expand these to more counties in the future? Cooper: As the statewide grantee of Foreign-Trade Zones, we want to do everything we can to make sure Indiana companies have the opportunity to use these unique tools for competing in global markets. The Ports of Indiana was the first grantee in the country to have multiple sites approved for the new Alternative Site Framework designation, which makes it easier, cheaper and faster for companies to obtain zones. This is a major initiative for our state, and we expect that at least 85 of Indiana’s 92 counties will be part of the program by the end of this year. How do you approach business development? Cooper: Our primary focus is twofold: the first is to grow our business through our existing customer base; the second is to develop new business opportunities, and many times that occurs because of synergies that may already exist at one of our ports. We spend an extraordinary amount of time trying to understand how our customers and prospects conduct their business and determine how we can best meet their needs. To earn new business, we need to demonstrate our ability to add value to our current business partners. A major component of our value proposition is creating a port environment that provides our tenants and users with a sustainable competitive advantage. Our current customers are some of our best sales people and anytime we bring a new prospect to our port, they get a chance to meet the people who already reside there. Our tenants are more than willing to talk about the “port advantage.” IP www.inlandportmagazine.com
INDIANA’S CONGRESSIONAL DELEGATION PROVIDES VOICE OF REASON AMIDST ASIAN CARP HYSTERIA By Rich Cooper, Ports of Indiana CEO, and Rob Carter, Director for the Indiana Department of Natural Resources
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fter all the public debate about Asian carp, it’s very gratifying to see Indiana’s Congressional Delegation take a leadership role and inject a voice of reason into this issue. Every single member of our state’s Congressional Delegation, and a few from Illinois, have joined together to sponsor legislation requiring the federal government to conduct a comprehensive analysis before closing a major waterway that could cost our economy billions of dollars and quite possibly flood homes in Northwest Indiana. Recently some policymakers in Washington, D.C., have called for the closure of the Chicago Area Waterway System (CAWS) in order to stop Asian carp from migrating into the Great Lakes. This knee-jerk reaction would have a tremendous negative impact by severing the only maritime shipping connection between Lake Michigan and the Gulf of Mexico. An economic impact study released in 2010 found that waterborne shipping along Indiana’s lakeshore generates more than 100,000 jobs and contributes $14 billion per year to the regional economy - and that’s just Indiana’s portion. We commend members of the U.S. Senate and U.S. House representing the Hoosier 2011 Issue IV
state for introducing two identical bills (S. 1197 and H.R. 2432) that would require the U.S. Army Corps of Engineers to work with federal, state and local agencies and stakeholders to prepare a comprehensive economic impact statement prior to any major federal action that could affect commercial activity in the CAWS. Sens. Lugar and Coats cosponsored the Senate bill while Reps. Pete Visclosky and Mike Pence were joined by sponsors Reps. Joe Donnelly, Marlin Stutzman, Todd Rokita, Dan Burton, Andre Carson, Larry Bucshon and Todd Young, as well as Representatives from Illinois, Judy Biggert, Randy Hultgren and Adam Kinzinger. Hysteria can never lead to sober decisions in public policy making. This legislation would force the federal government to pause and fully analyze the public impacts of any decision related to this vital waterway. The federal government has many responsibilities – including prevention of floods, protection of private property and preservation of our regional and national economies – and all these things need to be taken into consideration. This legislation would allow us to take a breath and evaluate all sides of this issue before making a final decision. It’s time to move away from hysteria and move toward real, workable solutions on this issue. This issue has already surfaced in
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Congress. In February, the House of Representatives voted down an amendment to close the CAWS by a vote of 292 to 137. Still, political pressures to close the CAWS remain. This issue has also had its day in court. Legal efforts to close the locks have been unsuccessful twice in the U.S. Supreme Court in 2009 and again in federal court, December 2010. After weeks of testimony from all parties, the federal judge rejected the lawsuit because Asian carp did not appear to be an imminent threat and closing the locks might not keep them from reaching Lake Michigan anyway. More than 30 potential pathways have been identified where Asian carp could migrate into the Great Lakes basin, and the CAWS is one of the few that is protected because it has an electronic fish barrier. More time and resources need to be spent on securing these other possible avenues of entry. The Indiana Department of Natural Resources took decisive action in midsummer of 2010 after it was determined that Asian carp had a potential pathway through a restored wetland near Fort Wayne during certain flood conditions. Indiana DNR took a lead role in the immediate construction of a nearly 1,200-foot chain-link fence that serves as a blockade to Asian carp movement but at the same time allows protection for the city of Fort Wayne through storage of floodwater. Indi-
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ana DNR is also working with researchers from the University of Notre Dame and Purdue University to study the movement of Asian carp in Indiana waterways. Preventing the migration of Asian carp into the Great Lakes continues to be a top priority for Indiana, but extreme measures that shut down shipping are not practical solutions to this issue. Waterborne shipping is the safest, most energy-efficient and lowest-emission mode of freight transportation because barges can haul hundreds of truckloads of cargo with a single tugboat. Maritime shipping is critical to our national economy and it can provide significant environmental benefits for the U.S. freight transportation system. Closing the CAWS would not only be an ineffective solution to the Asian carp problem but could harm thousands of people in Indiana and throughout the Midwest. All of the public impacts need to be carefully evaluated before any action is taken. Hysteria surrounding the CAWS debate is likely discouraging the innovation of more creative solutions that would not impact our regional economy, and we need to focus on feasible solutions for the entire Great Lakes basin. We applaud the efforts of Indiana’s Congressional Delegation and hope other policymakers and leaders will choose to follow its lead on this very important issue. IP
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Shore-Side Power Pedestals A Better Way to Power Docked Vessels? Massachusetts’ New Bedford Harbor Development Commission is installing shore-side power pedestal connections from SourceOne, a subsidiary of Veolia Energy North America. Harbor visitors currently run on-board diesel generators to power their refrigeration units and other electrical equipment when docked, an age-old approach that is dirty and expensive. By investing in the shore power stations, New Bedford is providing a solution that is cheaper for the vessel owners and better for the environment. According to SourceOne, the project will pay for itself through the revenues generated by the power stations and reduce diesel fuel usage by approximately 310,000 gallons annually, equating to approximately 3,000 metric tons of avoided greenhouse gas emissions. If those savings projections are accurate, this could be an intriguing concept for port and harbor facilities across the United States. IP went to Jules Nohra, SourceOne Project Engineer, for the complete picture.
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ourceOne is partnering with the New Bedford Harbor Development Commission to achieve its goal of reducing the greenhouse gas (GHG) emissions of its commercial fishing fleet. The first phase of shore-side power pedestal connections will be installed by December at New Bedford’s Fisherman’s Wharf for use by the fishing fleet to power their boats instead of using on-board diesel generators. “The Shore-side Power Electrification Project is environmentally clean. It will reduce carbon emissions and transfer our vessels from diesel to the electric grid. It is a great sustainability project for the number one fishing port in the country and will move us away from the oil economy,” said New Bedford Mayor Scott W. Lang. SourceOne and Consulting Engineers Group were hired by the New Bedford Harbor Development Commission to provide feasibility, design and implementation services and to analyze the benefit of implementing shore-side power pedestals. The project team found that by installing these pedestals alongside the piers, the use of on-board diesel generators will be dramatically reduced or eliminated altogether. “We are excited to be part of the project team that is helping make a positive impact on the future of this historic fishing port,” said Vincent Martin, President of SourceOne. “We worked closely with the city, commercial fisherman, and other stakeholders to identify a cost-effective, efficient and environmentally responsible solution. Not only will the installation of these power pedestals have an immediate impact on the harbor’s carbon footprint, it will have a positive impact on commercial fisherman by saving costs associated with expensive diesel fuel.” Once the program is fully implemented and all of the 42 pedestals are installed, New Bedford Harbor will enjoy a reduction of approximately 310,000 gallons of diesel fuel annually, which equates to approximately 3,000 metric tons of avoided GHG emissions. In addition, SourceOne estimates that it will 2011 Issue IV
be cheaper for fishermen to use the electricity from the shore-side power pedestals as compared to the fuel costs for on-board generators. “This effort is part of the commission’s commitment to the revitalization of New Bedford’s historic harbor,” said Kristin Decas, Port Director, CEO and Executive Director of New Bedford Harbor Development Commission. “The team has done an excellent job of analyzing and recommending immediate solutions to reduce our carbon footprint and other air pollutants. We are very excited to see work underway on the installation of these power pedestals, which we see as a critical part of our efforts to upgrade the harbor’s infrastructure.” The New Bedford Harbor Development Commission was created in 1957 and serves as the governing body of the port’s 21 commercial properties, five municipal fish piers, 1,600 linear feet of fish product unloading dock, a 198 slip marina and over 500 moorings. Considered the number one commercial fishing port in the United States, New Bedford Harbor has an average of 132 boats docked at a time and over 470 boats annually. Over the duration of the project, 42 pedestals will be installed on four of New Bedford Harbor’s Wharves, starting with eight on Fisherman’s Wharf and followed by 16 on Steamship Pier and Coal Pocket Pier, six on Homer’s Wharf and 12 on Leonard’s Wharf. We talked with SourceOne engineer Jules Nohra about the project and how it might translate to other inland port facilities. The concept seems to be akin to a motorhome pulling into an RV park and plugging in for power. Is that an accurate way of looking at it? That is accurate. The pedestals used in this case are designed for marine use, but otherwise, the concept is very similar. Who came up with this idea of the power pedestal to power vessels? The New Bedford Harbor Development Commission originally hired SourceOne to conduct an analysis of the feasibility of the electrification project.
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Inland ports come in many shapes and sizes, and accommodate many types of vessels. Is there a limit to the size or type of vessel that can use these power pedestals? Yes. The project is being designed for medium to large-sized fishing vessels, since smaller boats would not typically need the power. This means that the voltage and plug type available at each pedestal will limit the use of these pedestals to the type and size of fishing vessels that currently dock at the harbor. Larger commercial vessels that dock at nearby State Pier typically use larger plugs of a different type, which require more power. Is this setup something port facilities, or even local governments, may have to force vessel operators to use? Do you think some captains may just say, “No thanks, we’ll idle out here like we always have”? How has the response been so far at the New Bedford harbor installation? Phase 1 of the project will serve as a pilot, but once the project is fully implemented, the NBHDC envisions requiring all vessels docking at the harbor to use these pedestals instead of idling with their generators on. Boat owners have been very receptive to the idea thus far. Of course you must have had endless discussions in-house when the concept was being brought to reality. Is there a drawback from the vessel operator’s point of view that might not be obvious to the layman? Some reason they may prefer not to shut off their diesel generators and plug into a pedestal? All boats will require a transfer switch in order to be able to use these pedestals. Also, depending on the age of the boats, some might require further electric upgrades.
The primary benefit is the reduction of fuel consumption, thereby theoretically reducing cost and greenhouse emissions. On the cost end, won’t the port facilities end up charging vessel operators to plug into the pedestals to pass along the power costs? The New Bedford Harbor Development Commission will pass through the cost of electricity to the owners of the boat. The cost of diesel fuel and generator run time is far greater than the cost of electricity, so the difference in the total expense will result in savings for boat owners. So far you’re only doing the installation at New Bedford Harbor, a sort of test case. As with any new technology, there can be unforeseen problems. What has cropped up so far that’s been unexpected? Phase 1 is expected to be finished by December of 2011. No major problems have been encountered. Have any new ideas or refinement suggestions come from vessel operators themselves? Vessel operators and boat owners offered a lot of insight about where to locate the pedestals and how they expect to use them, and they also provided data about current equipment installed on their boat. How will this setup save inland port facilities money? The project is aimed to reduce carbon emission, local pollution, noise and harbor oil spills. The Harbor Commission may see cost savings, but after an initial investment in equipment upgrades, it is the boat owners who are expected to have large cost savings. The cost savings are expected to create additional appeal for service at the harbor. We see a great opportunity for us to implement these pedestals, and all our services, for inland and coastal ports alike. IP
Jules C. Nohra, CEM Project Engineer Jules Nohra has been with SourceOne for over five years. As a Project Engineer, he plays an integral part of the energy audit team. Jules has experience in combined heat and power (CHP) modeling and analysis, and is also involved in complex meter system design, installation and commissioning projects. He is a Certified Energy Manager (CEM) and holds a Bachelor of Science degree in Electrical Engineering from Northeastern University. He is currently completing his Master of Science degree in Energy Systems at Northeastern University. 10
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WJ Castle Saves Pier S
We Handle It With years of experience in distribution planning, the Three Rivers team does far more than load, off-load, and transfer. We develop customized logistics solutions, recommending a combination of services to maximize efficiencies and control costs. With the use of our barge loading facilities, barge off-loading systems, on-site rail car handling and a fleet of trucks standing ready, Three Rivers will be the strategic partner you need to help determine your best options and to deliver beyond your expectations. TRANSLOADING CONTRACT PACKAGING TRUCKING LANDSCAPE PRODUCTS ICE MELT
THREE RIVERS 3riversmarineandrail.com
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marine & rail terminals
TM
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everal years ago a large section of pier structure on the Delaware River, owned by a privately held manufacturing company in Chester Pennsylvania, had partially collapsed. Constructed of a concrete deck supported on steel h-piles, the damaged area measured approximately 150’x 80’. Facing the potential shutdown of their plant facilities, the manufacturing company reached out to W.J. Castle, P.E. & Associates, P.C. to access the damages and develop a plan to remove the collapsed deck and substructure without disrupting daily operations. Castle evaluated the existing conditions to determine the best procedure to remove it without damage to the remaining structure. The deck in this area had dropped several inches and the majority of the steel h-piles supporting the structure were found to have large areas of 100% section loss near the mudline which could have been very dangerous causing structure failure. Upon inspection, our engineers concluded the structure had shifted and was luckily held in place by compression. Therefore, to prevent the damaged portion and surrounding areas from failure the pier had to be stabilized prior to removal. Castle installed a sensor monitoring system prior to any work performed as a precautionary safety measure to detect any displacement or rotation in the concrete deck. The system was also kept in place throughout the entire demolition procedure for continued safety measure. The data was remotely accessible online and any movement outside the acceptable range would send an alarm, alerting Castle personnel to immediately perform an assessment inspection. To stabilize the pier for the demolition, Castle had to think outside the box. The notable obstacles in stabilizing the pier included; spacing between bents, existence of cross bracing, and 6’± tide fluctuations. An innovative plan was developed utilizing three steel barges measuring 40’x6’ with steel beam shims. The barges were maneuvered into position under the damaged area and filled with water until they sank. Steel shims were installed to brace between the barge and bottom of deck. This innovative solution and application of using barges as structural support proved successful in stopping any further movement as attested in the sensor monitoring logs. Once stabilized, approximately 508 C.Y. of concrete and twelve bents consisting of steel h-piles, stringers, channels and bracing were to be removed using a combination of gantry and crane. The demolition procedure also proved to have complex issues. A few of the unique problems being; the portion to be removed was located inside a steel shed that was to remain in place and a very limited allowable load capacity on the deck. It was 2011 Issue IV
imperative the steel shed be left in place to preserve the ownership rights of the property and allow plant operations to continue. If the shed were removed the PADEP could potentially reclaim the area. With the support barges still in place under the structure, the pier was stabile enough to proceed with the demolition. The existing deck could not support larger equipment due to the limited capacity; therefore the removal had to be done in very small increments with the crane placed on a work barge anchored alongside the pier. Areas of the side of the shed were removed between column lines to allow access for the crane boom. The 15”-16” deep concrete deck was removed in 3’ by 8’ sections, which were pre-marked to ensure the cuts were made between the bents. The sections were saw cut and then lifted using a five-ton capacity gantry system on rollers. The cut sections were then carted to the front of the pier with a hand truck and lifted with the crane to be deposited on to the barge. Once the concrete deck sections were removed, the remaining steel was taken out and piles cut to approximately 1’ above
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the mudline. The h-piles below the mudline were in good condition and left intact to allow the potential of using those piles in any future restoration of the site. Although the owner declined the
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opportunity to rebuild the structure at that time due to budget restrictions, they may look to rebuild in the future. The barges were removed after the demolition was completed. A debris wall with vertical supports was constructed along the front and side of the demolished area using steel beams and channels which were readily available, easy to install, and cost effective. New siding was installed to replace the cut portions of the steel shed structure. All work was completed by January 2010 for a total cost of $2.4 million including engineering, permit preparation, and construction. Our effective solution allowed the client to continue daily operations without disruption, strongly protecting the client’s interest. When faced was the high risk of total collapse of the pier structure and surrounding areas resulting in possible harm, death or significant loss of revenue, Castle stepped in with a non-conventional solution. Using barges and precision demolition techniques and calling upon the innovative ideas of and expertise of our structural engineers, Castle successfully saved the pier. IP
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Risk and Reward
When Bodily Injuries HURT M
By C. Daniel Negron Vice President, Thomas Miller (Americas) Inc.
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arine terminals are inherently dangerous places. Whether an injury arises from a work-related incident or from an accident involving a visitor, aside from their human toll, terminal related injuries can be costly to an operator in the quantum of the injury and in other associated costs. In a recent study conducted by TT Club, one of the leading insurers of marine terminals, three major causes were identified as the leading contributors to terminal-related accidents. It was found that over 80% of the cost of terminal injuries and fatalities are caused by operational issues related to equipment and vehicle use. These incidents typically arise in two different ways. The first results from the failure to follow established procedures. Lift trucks, such as reach stackers and forklifts, cause approximately 46% of the reported injuries or fatalities. These usually arise from incidents such as overturning, dropping, or hitting pedestrians, such as in one case that recently occurred at a fully mechanized terminal. In that case, a stevedore was working as a slinger in a vessel operation when he was run over by a fellow co-worker operating a forklift. The operator’s vision was obstructed by the load he was carrying on top of the forklift’s blades. As he drove well outside the designated traffic lines, he struck and killed his fellow co-worker with the forklift. Trucks and similar vehicles collide with each other or fixed objects, often overturning or hitting pedestrians. Yard cranes, such as RTGs, RMGs, often hit or drop loads onto other vehicles or pedestrians. This suggests the need to establish and to enforce the use of proper traffic patterns in the facility. The second operations-related cause of injuries arises from the improper use of the equipment. In one case, a worker stood on the blades of a forklift so as to lift himself high enough to change a ceiling light bulb. While suspended in the air, he lost his balance, fell to the floor, and suffered back injuries that severely incapacitated him. This suggests the need to ensure that sufficient internal controls exist so as to ensure the proper use of equipment. It has been found that human error is the single most contributing cause to the vast majority of injuries. In the TT club study, human error alone accounted for approximately 93% of all the reported incidents. At times, the circumstances giving rise to these incidents simply defied logic. This was the case where a worker took a nap alongside the rails of a gantry crane. When the crane began www.inlandportmagazine.com
to move along the track, the worker did not hear the warning siren and was crushed by the wheel of the crane. More often than not, however, the lack of simple precautionary measures has resulted in serious accidents. This was the case in an incident where a contractor was making repairs to a fire system in a below-ground concrete pit. A connecting section of the system’s piping had been removed for realignment and repair. In its place, a blank pipe-end had been bolted where the section had been removed. Unbeknown to the contractor, the pipe to which the connection had been bolted was not itself connected to the system. Thus, when water pressure was returned to the system, the pipe fitting blew out of the wall striking the contractor, causing fatal trauma to his head. A final check of the system before the water pressure was restored could have prevented this unfortunate accident. Events such as these can prove costly, not only in the unnecessary loss of life, but also in significant compensatory payments, higher insurance premiums and potentially lost business as well. Although a properly structured insurance program will afford the protection that an operation requires, in the end, it is good business practices that make the best business sense. The incidents reported demonstrate the need to ensure that clearly established and properly enforced operating procedures are in place at all times. An effective maintenance and repair program will also ensure that equipment systems are always in good operating order. It is not uncommon to receive reports of claims arising out of structural fatigue or from fires caused by overheated machinery. Proper maintenance and repair will ensure that equipment failure will not be a contributing cause to an accident. Finally, an ongoing training program will ensure that best operating practices are always in place in the day to day operation of the facility. While a marine terminal can be a dangerous place, the real danger lies in not properly attending to it. 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. 2011 Issue IV
America’s Ports and Waterways: A Solid Return on Investment By Rick Calhoun, Chairman, Waterways Council, Inc.
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aily, it seems, we are inundated with news of budget battles being waged in Washington, DC, as lawmakers seek ways to reduce our Federal deficit, raise the debt ceiling, and balance everything in between. And while these lawmakers were elected by the people, it is the people that they often seem to forget when slashing funding or failing to efficiently invest in programs, systems or structures that return the most to the nation. A gleaming example of this is our maritime industry, and particularly our inland rivers, that allow the United States to remain competitive in the world marketplace. Sixty percent of our nation’s grain, 22 percent of our chemicals and petrochemical products, and 20 percent of our coal for electric power generation move on the inland waterways, all for a fraction of the cost of the other modes and with the highest energy efficiency. The President has announced his intention to double exports in the next five years, but without a viable Mississippi River there will simply be no way to reach that goal. Commerce to and from 38 states moves throughout the port complex in south Louisiana alone, with coal from West Virginia, corn from Iowa, fertilizer from Florida, petroleum products from Texas, and aggregate materials from Arkansas transported through these ports. More than 6,000 ocean-going vessels and more than 450 million tons of cargo move through the mouth of the Mississippi River annually. Yet this year, as a result of unprecedented levels of high water on the Mississippi River that carried millions of tons of silt and debris to the mouth of the River, restrictions have been imposed for ships and vessels that rely on this passageway to export products to the world market, as well as import goods competitively, via ports in south Louisiana. In the past the Army Corps of Engineers has been able to manage silting issues with funding for dredging that sometimes required the reprogramming of funds to be sure shortfalls did not occur. This year the Corps said it can no longer reprogram funds and that a funding shortfall indeed exists on this vital part of the system. Throughout our country’s history, the Federal government’s role is, in part, to ensure that the inland navigation system, including the Mississippi River, remains open to transport these “building block” commodities. Our Federal government now needs to take necessary steps to provide funding for our national transportation asset and to allow the Lower Mississippi River to remain fully open for commerce without restrictions. At press time we were still awaiting White House action on requesting
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emergency appropriations funding to help this dredging emergency on the Lower Mississippi River. Dredging this critical artery should be viewed as an investment, not a cost, in the future of our inland waterways transportation system. Without a strong, reliable and viable marine transportation industry, the United States simply cannot competitively sell its export products in the world marketplace. Those countries that buy from America do so because we are a dependable supplier of products at a competitive price, thanks in no small part to the existence of our enviable transportation system. If that system is compromised, those foreign buyers will simply shop elsewhere, further impacting the United States’ fragile economic recovery. We cannot afford to underscore the pivotal role our ports and waterways play in strengthening our nation, employing our citizens, exporting our products and keeping us moving forward. IP Rick Calhoun serves as chairman of Waterways Council, Inc.’s Board of Directors. He is President of Cargo Carriers, a business of Cargill, Inc.
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TWIC: Is it Worth the Trip? GAO Reports, Congressional Committees Find TWIC Program Has Failed to Meet Security Goals By Jennifer A. Carpenter Sr. Vice President-National Advocacy American Waterways Operators
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he Transportation Worker Identification Credential (TWIC) program was established by the Maritime Transportation Security Act of 2002 and designed by the Department of Homeland Security (DHS) and the Transportation Security Administration (TSA). The requirement for transportation workers who need access to secure areas of vessels and facilities to carry a TWIC took effect in April 2009. The TWIC is an idea that sounded good in theory to a post 9-11 Congress and general public, but has failed in its practicality. The practical implementation of an identification credentialing program covering nearly 2 million American maritime and other transportation workers, a one-size-fits-all solution to heightened
concerns about the security of our nation’s transportation infrastructure, is coming under increasing criticism – not just from industry, but from the Government Accountability Office (GAO) and Congress. Recently, even TSA Administrator John Pistole acknowledged the program’s shortcomings in testimony before the Senate Commerce Committee. There is no question that the TWIC program needs fixing. As Congress and DHS consider what that fix should look like, they should seek to reduce the burdens the TWIC program places on American workers and businesses, as well as tighten up security vulnerabilities in the program. A case in point is the cumbersome enrollment and activation process, which requires
mariners and other transportation workers – who may live or work hundreds of miles from the nearest TWIC enrollment center – to make two trips to a designated TWIC enrollment center; one to apply for the TWIC, and one to pick it up.
GAO Assessment of Mailing TWICs Considers Only Half the Story The two-trip requirement has attracted the attention of Congress. The 2010 Coast Guard Authorization Act directed the Government Accountability Office to study the feasibility of mailing TWICs to applicants’ homes. In April 2011, GAO published a report that was disappointing for the limited scope of its assessment. GAO concluded that delivering TWICs to applicants by mail, while feasible, would be inconsistent with a DHS policy decision that the TWIC enrollment process
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 16
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be carried out in general alignment with identity verification requirements for federal employees and contractors, a standard known as FIPS-201. This begs some obvious questions: Is the DHS policy a sound one? Is it appropriate to require a highly mobile workforce of some 2 million Americans to comply with credentialing standards established for federal employees who work in the same office every day? What are the alternatives to the current process? Those questions are worthy of consideration. GAO clarified that while mailing TWICs to applicants’ homes is not consistent with the FIPS-201 specifications, it is otherwise technologically feasible to do so. According to U.S. Citizenship and Immigration Services (USCIS, the federal agency that personalizes TWICs for TSA), it would be possible to mail personalized TWICs directly from the Corbin, Kentucky facility where the cards are printed to individual residences. GAO acknowledged that TSA is not legislatively required to adhere to FIPS-201 protocols, but noted that to change the process would require significant (undefined) and potentially costly (but unquantified) changes to TWIC systems, regulations, and contracts. Notably, the GAO report included no discussion of the financial and administrative burdens imposed by the current
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TWIC issuance and activation process on the 1.8 million American transportation workers who hold TWICs, or the companies that employ them. Without looking at these issues, it is impossible for Congress to conduct a real assessment of the soundness of current DHS policy, or the costs and benefits of a different approach to the TWIC enrollment process. The GAO report also did not explore options to eliminate the second trip to the TWIC enrollment center other than mailing cards to applicants’ homes (for example, mailing the card to a government facility located in the applicant’s local community). At an April 14 House Transportation and Infrastructure Committee hearing, Coast Guard and Maritime Transportation Subcommittee Vice Chairman Jeff Landry (R-LA) raised this issue and urged that TSA “make less decisions based on what’s feasible for TSA and more decisions based on what’s feasible for workers.” Hear, hear. In May, GAO issued a second, more comprehensive report on the progress of the TWIC program. GAO found that TSA’s failure to correct internal control weaknesses in the TWIC program has prevented it from achieving its security objectives. In order to correct these weaknesses, the GAO report recommended that DHS assess TWIC program internal controls to identify needed corrective
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actions and assess the program’s overall effectiveness. The report also recommended that DHS use this information to identify “effective and cost-efficient” methods for meeting TWIC program objectives.
Senate Commerce Committee Criticizes Second Trip Requirement The GAO report was a major focus of discussion and concern at a May 10 Senate Commerce Committee hearing titled, “Are Our Nation’s Ports Secure? Examining the Transportation Worker Identification Credential Program.” Committee Chairman John D. Rockefeller (D-WV) expressed major concerns with the GAO findings. Senator Frank Lautenberg (D-NJ), Chairman of the Subcommittee on Surface Transportation and Merchant Marine Infrastructure, Safety and Security, echoed Chairman Rockefeller’s concerns and characterized the results of the GAO investigation as “a wake-up call for America.” Senator Lautenberg stressed his personal commitment “to fix this broken program.” Members of committee were also critical of the burdens placed on American workers by the TWIC enrollment and activation process. Senator Roger Wicker (R-MS) commented that DHS has spent a decade creating a security system that “would put Rube Goldberg to shame.”
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Senator Olympia Snowe (R-ME) argued that TWICs “fail to accurately establish that transportation workers are who they say they are, they fail to work as designed, require an onerous process to obtain, and add another redundant credential to the list of federal security cards.” Sens. Wicker and Snowe both stressed that great distances between residents and enrollment centers in their home states of Mississippi and Maine, respectively, have made the second trip requirement extremely burdensome for workers. Sen. Snowe expressed concern with the limited numbers of enrollment centers coupled with the requirement for TWIC applicants to make two trips, saying, “I think it’s cumbersome and bureaucratic. There has to be a better way.” On the issue of duplicate trips to enrollment centers, Sen. Wicker said TSA should make the enrollment process less burdensome and highlighted the distance his constituents must travel, saying, “A worker in Meridian, Mississippi must make, at minimum, two 267-mile round trips [534 miles total] to apply for and activate their card at the nearest enrollment center, located in Mobile, Alabama.” In testimony before the Senate committee, House Transportation and Infrastructure Committee Chairman John Mica (R-FL) warned that the TWIC
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program was “turning into a dangerous and expensive experiment in security.” He noted that nearly half a billion dollars have been spent on the program since 2002 and characterized the result as the creation of a credential “no more useful than library cards.” TSA Administrator John Pistole noted during questioning that his agency will be working with DHS to conduct a topto-bottom review of the TWIC program. When asked by Sen. Lautenberg to rate the progress of the program on a scale from one to ten, Mr. Pistole rated it a “three,” a refreshingly honest assessment that underscores the urgent need to fix the broken TWIC program.
House Votes to Eliminate Funds for 2nd Trip Congress has shown a willingness to take action in response to this barrage of criticism of the TWIC program. On June 1, the House of Representatives sent a strong message of bipartisan dissatisfaction with the requirement that applicants make two trips to a TWIC enrollment center to apply for and pick up a TWIC. The House approved by voice vote an amendment to the Homeland Security appropriations bill introduced by Rep. Steve Scalise (R-LA) prohibiting the use of appropriated funds to require an applicant to personally appear at a TWIC enroll-
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ment center for the purpose of TWIC issuance, renewal, and activation. The House action is an important first step. A similar provision deserves inclusion in the forthcoming Senate version of the Homeland Security appropriations measure. Authorizing legislation is also necessary to establish a more durable fix. TWICs are valid for five years. In late 2012-early 2013, there will be a huge surge of TWIC holders facing renewal of their cards. In government time, the renewal surge is fast approaching. Without Congressional action, nearly 2 million transportation workers could again face the requirement to make two trips to an enrollment center to apply for their renewal and pick up their new card. At a time when passports can be sent by secure mail and gas costs nearly $4 a gallon, it’s just wrong to require working people to make two expensive and time-consuming trips to a TWIC enrollment center without a much more careful consideration of practical alternatives. Eliminating the second trip burden is one of AWO’s top legislative priorities. AWO will work to ensure a practical and secure approach to TWIC issuance and activation that does not require applicants to make a second trip to a TWIC enrollment center. IP
2011 Issue IV
Re-Introducing America’s Central Port
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fficials at the Tri-City Regional Port District recently unveiled a new logo and brand for the District, which is located in southwestern Madison County. The new name, America’s Central Port, reflects the Port as the region’s only public multi-modal facility in mid-America. Dennis Wilmsmeyer, Executive Director of the District, said that the rebranding discussion had been underway for some time. “This new brand and logo reflects our region’s history as a hub of commerce. We work with our partners here in southwestern Illinois, across the river and around the world to strengthen our mutual, economic future. By using the authority we have been entrusted and the resources here, and those yet to be acquired, we will be Mid America’s only public, full-service port.” Dr. Charles “Chip” King Jr., the Tri-City Port District’s Chairman, who spearheaded the efforts to rebrand the District, says, “For many years the Port District has quietly been building a center of economic activity to support the tri-cities. As we have grown, so too has the opportunity. In the last five years, over $300 million of new investment has been added to our region from activities generated at the port. Today we are now America’s Central Port. 2011 Issue IV
River, road, rail and air come together to connect us to people and businesses around the world.” Wilmsmeyer said that the America’s Central Port logo and brand will become part of everything the Port District does from now on. “New signage, uniforms and our vehicles will have this new identification. The Port website has been updated with new social media features and information on port activities and projects.” Port Commissioners agreed that the new logo reflects the commitment by the port to continue creating new economic opportunities for the region. New development, more jobs and new ways to drive the economy has been the port’s purpose for over 50 years. St. Louis is the central, primary point of the national transportation system; the new America’s Central Port logo and brand reflects the port’s place as the heart of this system. America’s Central Port is essentially the hub of a hub and the only full-service intermodal public port in the region. Madison County Board Chairman, Alan Dunstan, commended the port on this new identity. “America’s Central Port is at the transportation center of the United States. It is a two-day drive from nearly 70% of the population and 62% of www.inlandportmagazine.com
US business. As the region’s only fullservice public port, it provides access to not only inland waterways, but also road, rail and air transportation to move goods across the Country and throughout the world. America’s Central Port represents Madison County to the world and we invite the world to bring new business here.” Illinois Representative Tom Holbrook said, “We have the region’s largest contiguous port at over one mile long, plus more warehousing, material handling facilities, distribution assets and multi-use land than any other port in the region. America’s Central Port is where a business needs to be to expand their market.” US Congressman Jerry F. Costello, who was instrumental in transferring the former Charles Melvin Price Support Center Army Base to the Port District in 2000, said, “Since 1959, the Port District has partnered with community and business leaders to strengthen our local economy. Together, they have not only built up the region’s strongest port, but also new confidence in the future of southwestern Illinois.” Wilmsmeyer also added that the Port District has just approved a development plan taking America’s Central Port towards 2030. “Our 2030 Development 19
plan charts the direction of the port well into the future. A key feature of the plan is the completion of the new south harbor which will handle commodities from key Port tenants such as Abengoa Bioenergy. The plan also provides for upgrades and improvements to the Port’s north harbor and adds key infrastructure investments to port facilities and warehouses.”
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America’s Central Port by the Numbers In 1959, the Illinois State Legislature created the Tri-City Regional Port District, entrusting the new entity with the general mission of economic development in Southwestern Illinois. It is strategically located in the heart of the U.S. on the Mississippi River, minutes from downtown St. Louis and adjacent to an excellent highway
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system. Over time, the 1,200-acre facility has evolved to become a $200 million annual economic-engine for the region. The port’s activities include rail and truck bulk transfer facilities for agricultural products, steel, fertilizer and asphalt; foreign trade zone operations; commercial warehousing; industrial property development; office space leasing; recreational facilities and military-family housing, among other activities. The port is not supported by any property or other general tax revenue. It generates its income by providing services and facilities to private industry and business. More than 2,000 barges with three million tons of product are moved through the port annually. The newest tenants at the Port include Abengoa Bioenergy, U.S. Army Reserve, Arizon, Airgas, and Mattingly Lumber and Millwork, a full service construction company. The Port currently has about 75 tenants or operating companies directly employing 900 plus employees. A recent study shows that the Port District is responsible for 1,347 jobs in Madison County, $66 million in payroll and state and local taxes of almost $10 million annually. IP 2011 Issue IV
Change, Change, Change Meet WCI’s New President & CEO
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When Cornel Martin stepped down from his role as WCI President and CEO earlier this summer, the group launched a thorough search for someone who could not only continue its growth and impact, but expand upon it in the future. They believe they’ve got their man. IP presents an exclusive interview with Waterways Council’s new President and CEO, Mike Toohey.
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s this issue was going to press, Waterways Council, Inc.’s (WCI) Board of Directors unanimously elected Mike Toohey as the organization’s new President and Chief Executive Officer. Stepping into the void left by Cornel Martin’s departure is a tall order, and Toohey is just the man for the job. Even though time was short and the deadline crunch was upon us, Toohey graciously agreed to the following interview. With more than 30 years of federal government expertise, Toohey most recently served as Consultant with The Livingston Group’s Transportation, Shipbuilding, Shipping and Ports practice area. Prior to that, he served as Vice President of Government Affairs for Ashland Inc., a global chemical, energy and construction company. During his 19 years with Ashland, he served as the principle representative to the federal government and also supervised state government relations for this Fortune 500 corporation. His responsibilities also included leadership positions as the Chair of the American Chemistry Council’s Federal Legislative Roundtable and Chairman of the Board of the American Highway Users Alliance, and board positions with WCI, and the Danny Thompson Memorial Foundation. President George H. W. Bush nominated Toohey as Assistant Secretary of Transportation, where he served from 1992 to 1993 following confirmation by the United States Senate. He also served as Staff Director for the Republican Staff of the Committee on Public Works and Transportation, and the Committee on Merchant Marine and Fisheries during his 14-year tenure with the U.S. House of Representatives. Toohey earned a Bachelor of Science degree in forestry from the University of California, Berkeley. So, without further ado... ••••••••••••• Congratulations on your new position. How long have you been involved with WCI, and when did it become apparent that you would be a good fit for the presidency of the organization? Thank you for your gracious comments about my appointment to the Presidency of the Waterways Council, Inc. I welcome this opportunity to provide staff leadership to the Board of Directors and membership of this great organization. This opportunity builds upon my experience in the public and private sector to advance the goals of the inland industry to achieve a world-class, modern waterways transportation system. Every career opportunity that I have had the privilege to experience has built the foundation to lead WCI. When the Search Committee and I met, I was passionate about the issues and challenges we face and the solutions needed to achieve success. One of WCI’s primary goals is illuminating the challenges and value of the inland waterway system to the average American. Where do you feel the group stands on this as you take the helm? WCI is on a solid footing as it seeks to advance its program. We have the leadership and the commitment of the membership. What we need is Congressional and Executive Branch recognition that, as a Nation, we are under-investing in our critical transportation infrastructure. This current policy has serious consequences to our economy and our international competitiveness. Without a re-dedication to investing in our waterways infrastructure there can be no long-term economic recovery and we are www.inlandportmagazine.com
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placing our vital industries at a serious disadvantage for their employees to compete and thrive. What would you like to see WCI do in the future to further highlight our industry’s plight to mainstream Americans? My firm intention is that WCI will reestablish the historic partnership with Congress and the Executive Branch where-in the great civil works programs that gave us the inland navigation system will be re-invigorated to reverse the disinvestment that is the current national policy. How would you describe your working relationship with WCI Chairman Rick Calhoun? Rick Calhoun is the boss, and a great one. He is an established and recognized business leader. He has brought those skills to WCI. Rick, with the Executive Committee, Board of Directors and active membership, provides the leadership we need and the guidance and direction for our staff. What are the most important goals you hope to accomplish as President and CEO of WCI? The most important goals include the ac-
complishment of the Capital Development Plan, a cooperative effort of business and government. The current fiscal crises has presented a severe challenge to achieve our plan. The across-the-board approach to reducing federal deficits treats consumption spending and investment as equal priorities. The “no new taxes” pledge taken by Members of Congress currently thwarts raising additional fees, even where those beneficiaries have requested increases to pay for infrastructure. The American Trucking Association has asked for a doubling of their user fee to finance a freight focused program. WCI has supported a 6-cent to 9-cent diesel fuel tax increase. In every case, Congress has said no. This unwillingness is a direct threat to our economic well being. This attitude must be reversed. Give us a brief overview of your background. What did your time at Ashland and The Livingston Group teach you about this industry and its many segments? I began my career as an officer with the U.S. Army Corps of Engineers, the greatest agency in the service to our Nation. I was assigned to the Office of the Chief of Engineers and enjoyed three years in the Directorate of Civil Works. Following my
military service I was appointed to the professional staff of the House Committee on Public Works and Transportation and worked on the Water Resources Subcommittee. During my 14 years “on the Hill” I served as staff director of the Merchant Marine and Fisheries Committee and returned to the Transportation Committee as its staff director. I joined the Washington Office of Ashland Oil to represent their transportation enterprises. Ashland was totally dependent on the inland waterways to send its products to market and their Washington office was founded to advocate for inland navigation improvements. I served as Assistant Secretary of Transportation for Secretary Andy Card following nomination by President George H. Bush and confirmation by the Senate. At the end of the Bush Administration, I rejoined Ashland and following a wonderful career at Ashland, I moved to the Livingston Group, a top government relations firm founded by Bob Livingston, former Louisiana Congressman and Chairman of the House Appropriations Committee. I continued to represent Ashland but also transportation clients. These employment opportunities have given me experience on both sides of the waterways industry – government and industry shipper and carrier. Tell us about yourself away from the office. What are your hobbies and interests? What is your family like? Away from the office my focus is on faith and family. I enjoy shooting sports and golf and skiing for relaxation. My wife Lisa and I have 4 wonderful sons, two are serving our Nation in the U.S. Army and U.S. Marine Corps. Our third son is a senior in college and the youngest is a thriving middle-schooler. Will the inland ports and waterway system ever get its rightful level of funding? How can WCI help to make this happen? My philosophy is that effective advocacy is built upon three initiatives: grassroots involvement, education through media relations, and state and federal lobbying. Legislators must hear from the people back home in order for them to believe their efforts in the capitols of America are worthy of public investment and support. If they do not hear from us, they will pursue the aims of those who do communicate. A vital educational opportunity is through the ones who influence public opinion, the media. We must continuously make our case to be successful. Finally, an effective lobbying effort is vital to keep decision makers informed. IP
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2011 Issue IV
Expansion for Toledo-Lucas T
oledo-Lucas County Port Authority President and CEO Paul Toth unveiled the master redevelopment concepts for its new Jeep Parkway Property. The Port Authority purchased the former industrial site last fall with the sole purpose of returning it to the stream of commerce – thus creating jobs and economic development for the region. “Toledo has a rich manufacturing history and this site is a prime location for industrial and commercial development. This project benefits from the support of several key officials both locally and nationally. We are very much appreciative of this support – without it, this acquisition would not have happened,” says Toth. “It is our mission at the Toledo-Lucas County Port Authority to continually leverage our resources to provide opportunity to our region. This project is an excellent example of partnerships and resources coming together to create prosperity and to create, most importantly, jobs for our region.” The Jeep Parkway property has benefited from state and local remediation funds, most recently receiving two Clean Ohio Revitalization Fund (CORF) Grants totaling $4,499,859 million. The Port Authority also received a $1.3 million Housing and Urban Development - Economic Development Initiative grant to cover expenses associated with the purchase and remediation of the site. The City of Toledo also provided a $340,000 revolving loan fund grant which was utilized for the removal of a hazardous substance, trichloroethylene, (TCE) from the site. The Jeep Parkway Redevelopment Master Plan concept was developed in conjunction with TRACE - The Toledo Regional Architects, Contractors and Engineers association. IP
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New Tank Base Protection System from Denso
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enso has released its new Tank Base Protection System. Storage tanks have a major problem with corrosion around the tank base. Due to gaps between the bottom plate and concrete plinth, water and air can penetrate and start corroding this area of the tank which can lead to the tank being shutdown for repair, or worse, replacement. The new Tank Base Protection System provides a cost-effective and commercially proven repair solution for outer tank bases and chimes. Employing a series of tapes and coatings, Denso’s protection system helps seal these gaps to protect the tank base from further corrosion and shields it from environmentally corrosive agents. The system is easily hand applied to tank bases, utilizing Denso’s product lines of primers, mastics, tapes and topcoats. Another Denso offering, the SeaShield SplashZone UW Epoxy, is a solvent-free patching compound used for repairing pits, cracks and voids in steel, concrete, wood and other surfaces with minimal experience or tools required. By simply mixing two equal parts together, the product, can be applied by gloved hand, trowel or broad knife, to wet or underwater surfaces. It can be applied up to two inches thick as a patch or grout repair in various splashzone applications. Its fast cure time allows quick corrosion repair without new corrosion damaging agents setting in. IP
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2011 Issue IV
New Orleans Welcomes PIANC USA and the Smart Rivers Conference P
IANC USA is pulling out all the stops for the upcoming Smart Rivers 2011 Conference, scheduled for September 1316, 2011 in New Orleans, Louisiana. “This conference has been organized to bring together the world’s top professionals in all aspects of inland/river transportation, including more than 250 private sector, government, and academic participants,” says show chair Craig E. Philip, Ph.D., of the Ingram Barge Company. The three-day conference will include technical sessions, field tour opportunities, industry exhibits, networking events, and pre-conference short courses. During the opening plenary session on Wednesday, you will hear the latest news about the Inner Harbor Navigation Canal (IHNC) Hurricane Surge Barrier in New Orleans, the largest Corps Civil Works Design/ Build project, and the largest surge barrier of its kind if the world. Then, as part of the tours on Friday, you will have the opportunity to see the IHNC Surge Barrier up close. “With almost one-hundred presentations addressing all aspects of inland / river transportation, including Infrastructure, Environmental Management, Safe Operations, Public Policy & Finance, and more, you will have a difficult time choosing which session to attend.,” says Philip. During the 18th and 19th centuries, New Orleans dominated the Caribbean as the most active port city and trade destination for island crops like sugar cane, rum, tobacco and fruit. Today, New Orleans is a “cultural gumbo” that is welcoming and enjoyable for visitors from around the world. This Smart Rivers Conference promises to be very rewarding, having a full array of nationally and internationally recognized speakers. Don’t miss this opportunity to network with your industry peers and enhance your professional knowledge. Smart Rivers 21 is an international coalition intent on realizing “Strategic Maritime Asset Research and Transformation for 21ST Century River Systems.” The goal of Smart Rivers 21 is to help bring inland river transportation into the global logistics system of the 21st century. It is an agreement signed in 2004 between the European Federation of Inland Ports (EFIP), via donau (operators of the Austrian Waterways), TINA Vienna (an intermodal corridor planning entity), the Port
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of Pittsburgh Commission and ORBITTS (Ohio River Basin International Trade and Transportation). SmartRivers 21 Conferences have been held in Pittsburgh in 2005, Brussels in 2006, and Louisville in 2007. The fourth conference took place in 2009 in Vienna, Austria. Its goals include: • Improve container transportation on the inland waterways; • Improve lock operation and traffic
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management on inland waterways; • Integrate inland waterway transportation in the international intermodal transportation chain; • Improving river system reliability; • Develop strategies for common approaches toward improving security; • Improve inland ports in their quality of intermodal nodes to integrate rail, road, and waterway traffic. For more, visit smart11.pianc.us. IP
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IP Calendar of Events 2011
Aug. 30 - Sept. 2 Tenn-Tom Waterway Development Conference Grand Hotel, Point Clear, AL. www.tenntom.org September 11-15 American Association of Port Authorities Seattle, WA www.aapa-ports.org September 13-16 SmartRivers Conference Hilton Riverside, New Orleans www.smartrivers.org, www.pianc.us September 19-21 National Waterways Conference Fort Worth, TX www.waterways.org October 3-5 Arkansas Regional Waterways Conference Little Rock, AR www.waterway.dina.org October 5-7 American Waterways Operators The Barclay New York www.americanwaterways.com October 17-18 Tennessee River Valley Association Gatlinburg, TN www.trva-tcwc.org October 19-21 8th Annual Waterways Symposium Omni William Penn, Pittsburgh, PA www.waterwayscouncil.org/wci.htm October 31 - November 3 National Assn. of Flood and Stormwater Management Agencies St. Petersburg, FL www.nafsma.org November 8-10 MS World Trade Center / Water Resources Assn. Intermodal and Freight Conference Natchez Grand Hotel www.mswtc.org 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 Westin Canal Place New Orleans, LA 26
Port of New Orleans & Panama Canal Renew Strategic Alliance T
he Panama Canal Authority (ACP) and the Port of New Orleans renewed their strategic alliance with the signing of a Memorandum of Understanding (MOU). First initiated in 2003, the partnership aims to spur investment, increase trade and promote the “All-Water-Route” (the route from Asia to the U.S. East and Gulf Coasts via the Panama Canal). “Today’s ceremony reinforces a strategic collaboration with the Port of New Orleans,” said ACP Administrator/CEO Alberto Alemán Zubieta. “With the Canal’s expansion nearing completion, we remain dedicated to a shared vision for the shipping and maritime community.” With over 6,000 vessels moving via the Mississippi River per year, the Port of New Orleans is considered to be one of the world’s busiest waterways. It is the only deepwater port in the United States served by six “Class One” railroads, giving port users direct and economical rail service to or from anywhere in the country. According to a 2004 study conducted by Martin Associates, the Port generates 160,498 jobs, $8 billion in earnings, $17 billion in spending and $800 million in taxes statewide. “Through investment and commitment, the Port of New Orleans is readying itself for the increased cargo an expanded Panama Canal will bring to the Gulf Coast,” said Gary LaGrange, President and CEO of the Port of New Orleans. “We have historically maintained strong ties with our friends and partners in Panama and our continued relationship will enable both parties to provide an efficient, cost-effective transportation route from Mid-America to the world.” In the past ten years, the Port of New Orleans has devoted more than $400 million to new state-of-the-art facilities such as wharves, terminals, marshalling yards, cranes and transportation infrastructure. Most recently, the Board of Commissioners of the Port of New Orleans invested over $108 million toward ten completed or ongoing construction projects in areas such as containerized cargo, break bulk cargo and cruising. The Canal’s expansion remains on track following the recent pouring of permanent concrete work for the new Atlantic side locks. The $5.2 billion expansion project will build a new lane of traffic along the Panama Canal through the construction of a new set of locks, which will double capacity and allow more traffic and longer, wider ships. The Port of New Orleans is a diverse general cargo port at the center of the world’s busiest port complex – Louisiana’s Lower Mississippi River. Its proximity to the American Midwest via a 14,500-mile inland waterway system, six ClassOne railroads and the interstate highway system makes New Orleans the port of choice for the movement of cargoes, such as steel, natural rubber, coffee, containers and manufactured goods. The Port of New Orleans is America’s most intermodal port - served by 75 truck lines, 16 barge lines and 50 ocean carriers. IP www.inlandportmagazine.com
2011 Issue IV
Industry Notebook Let us spread your message! Email your port, company, or group news to us at djones@inlandportmagazine.com The primary contact phone number for the Tennessee River Valley Association will be changed to 256-394-3433. The web and email stay the same: trvassoc@hiwaay.net and www.trva-tcwc.org. The Board of Commissioners of the Port of New Orleans recently elected J. Wayne Mumphrey its new chairman. Mumphrey succeeds John Fay, whose term as chairman expired. Fay will continue to serve on the Board as a commissioner. The Board also elected Commissioners Valerie Cahill vice chair and Joe Toomy secretary-treasurer. “The past few years have been challenging for the Port of New Orleans, but we have overcome those challenges and today we are primed for growth for years to come,” said Mumphrey, who was appointed to the Board in September of 2007. “The Port is the most significant economic engine in this state and I hope to build upon the strong leadership that has led us to this point.” An attorney and St. Bernard Parish native, Mumphrey earned his law degree from Loyola University in 1971 and established a law practice that same year. Throughout the next two decades Mumphrey divided his time between the law practice and insurance and construction endeavors. Today, Mumphrey Law Firm LLC employs about 20 people and has offices in Chalmette, La., Franklinton, La., Slidell, La., and New Orleans. The firm focuses on civil litigation and the resolution of complex legal disputes. In 1999, the Louisiana Supreme Court appointed Mumphrey to fill a temporary vacancy as District Judge in the 34th JDC. He is a member of the American Association for Justice, Louisiana State Bar Association and the 34th JDC Bar Association. An avid outdoorsman, Mumphrey is a supporter of numerous charitable organizations and recreational clubs, such as the New Orleans Big Game Fishing Club, North American Hunting Club, Recreational Fishing Alliance, World Billfish Series and the National Rifle Association. The Board’s commissioners serve five-year staggered terms and every nine months elect new officers. The unsalaried commissioners are appointed by the Governor of Louisiana from a list of three nominees submitted by local civic, labor, education and maritime groups. The Board reflects the three-parish jurisdiction, with four members from Orleans Parish, two from Jefferson Parish and one from St. Bernard Parish. Other board members include Tommy Westfeldt, Dan Packer and Greg Rusovich. Port of Duluth-Superior’s Hallett Dock recently stepped into the national spotlight with a YouTube video and a Service Excellence Award. The video featuring dock workers was produced by Red Wing Shoes and posted on YouTube. A creative team for Red Wing Shoes visited Hallett Dock last September, spending two days onsite shooting photos for a print advertising campaign about work boots (“Work is our Work”). The ads feature real workers wearing Red Wing work boots as they load ships, move industrial equipment and do other big, dirty jobs. They found the company’s story so compelling that they decided to profile it in a video. The segment posted on YouTube features chairman Jerry 2011 Issue IV
Fryberger, who has been with Hallett for 47 years, explaining how Hallett “works on its feet.” That boots-on-the-ground approach also helped Hallett earn a Service Excellence Award from Compass Minerals, a leading producer of highway deicing salt and specialty fertilizers. Compass works with more than 500 supply chain providers around the world, yet Hallett was among just 28 companies from the U.S., Canada and the UK selected to receive the award “for consistently providing excellent service, innovation and supply chain solutions,” according to Compass President and CEO Angelo Brisimitzakis. “This award belongs to our scale operator and front-end loader operators for their openness to problem-solving and flawless service to customers,” said Mike McCoshen, Hallett president and COO. “These dedicated employees were willing to work through breaks and adjust their hours to meet the high demand for salt this past season. January 2011 was a record for salt – six times greater than January 2010.” The latest statistics from the St. Lawrence Seaway show that grain shipments are up more than 20 percent as the marine highway benefits from international demand for American and Canadian wheat. Year-todate grain shipments from March 22 to June 30 totaled 2.6 million metric tons, compared to 2.1 million metric tons during the same period last year. While Canadian grain shipments were up three percent for the period to 1.9 million metric tons, the surge was predominantly fuelled by a 127 percent increase in U.S. shipments of 400,000 metric tons heading through the Seaway to overseas markets Rebecca McGill, director of trade development for the Saint Lawrence Seaway Development Corporation, noted that the 2011 navigation season continues to reflect respectable gains in general cargo and agriculture products. “The Seaway has experienced a competitive advantage through June due to a Russian grain export ban, however, with its lifting, the U.S. could expect grain exports to level out in the months to come.” The Tampa Port Authority recently purchased an R2Sonic 2022 multibeam system from Measutronics Corporation. With an increasing need for port and harbor authorities to consistently and comprehensively monitor the condition of their waterways, many are using multibeam sonar systems to accomplish the task. Tampa Port Authority (TPA) recognized this need and sought out Measutronics for the solution. Measutronics has supported TPA’s hydrographic surveying department for many years and worked with their lead hydrographer, George Stanmore (PSM), to determine the appropriate system. The system integrates the R2Sonic Sonic 2022 multibeam echo sounder, Teledyne TSS DMS motion sensor, and Trimble DGPS positioning. All of the components integrated in the system are from industry leading manufacturers. Measutronics provided system training and installation at their office in Lakeland, FL. This involved classroom style instruction and installation procedures including sensor offset measurements with a Trimble SPS930 Robotic Total Station. Hands on training and system calibration were also provided on the water in Tampa Bay to properly commission the system. The R2Sonic www.inlandportmagazine.com
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2022 delivers an economical multibeam without sacrificing high data accuracy and resolution. Due to its compact design, the R2Sonic 2022 is easily deployable for small-area and emergency survey applications yet scalable to meet the requirements of large projects. Kirby Corporation recently announced net earnings attributable to Kirby for the second quarter ended June 30, 2011 of $41.7 million, or $.77 per share, compared with $29.3 million, or $.54 per share, for the 2010 second quarter. The 2011 second quarter results included an estimated $.07 per share negative impact from high water and flooding issues throughout the Mississippi River System. Consolidated revenues for the 2011 second quarter were $437.3 million compared with $273.7 million reported for the 2010 second quarter. Joe Pyne, Kirby’s Chairman and Chief Executive Officer, commented, “Our second quarter results reflected continued strong tank barge utilization and an improvement in barging rates as United States petrochemical production remained strong and refinery utilization stable. We are also beginning to see new demand for crude oil transportation from shale formations in South Texas. In addition, we had a positive contribution 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. These positive results were partially offset by the negative impact of the record high water and flooding conditions throughout the Mississippi River System during the quarter.” Pyne continued, “In addition to the United acquisition, on July 1 we successfully expanded our marine transportation footprint with the acquisition of K-Sea Transportation Partners L.P. (“K-Sea”), an operator of tank barges and tugboats participating in United States coastwise transportation of primarily refined petroleum products.” Kirby reported net earnings attributable to Kirby for the 2011 first six months of $74.1 million, or $1.38 per share, compared with $53.9 million, or $1.00 per share, for the first half of 2010. Consolidated revenues for the 2011 first six months were $736.7 million compared with $541.9 million for the first six months of 2010. Marine transportation revenues for the 2011 second quarter were $266.6 million, a 16% increase compared with the 2010 second quarter, and operating income was $58.4 million, an 18% increase compared with the second quarter of 2010. Tank barge utilization for the petrochemical and black oil products fleets remained in the low to mid 90% level. Low natural gas prices continued to positively impact the global competitiveness of the United States petrochemical industry, leading to higher petrochemical production levels and corresponding increased marine transportation volumes for both domestic consumers and terminals for export destinations. The black oil products market remained favorable, driven by the continued exportation of heavy fuel oil and new demand for the transportation of crude oil principally from the Eagle Ford shale formations in South Texas. Diesel fuel prices for the 2011 second quarter increased 42% compared with the 2010 second quarter, thereby positively impacting marine transportation revenues since fuel price increases are covered by fuel escalation and de-escalation clauses in term contracts. High water and flooding on the Mississippi River System and a portion of the Gulf Intracoastal Waterway for the majority of the second quarter negatively impacted the quarter by an estimated $.07 per share. With the high water and flooding conditions the United States Coast Guard and Army Corps of Engineers periodically closed sections of waterway and placed 28
restrictions in certain areas as the high water levels moved southbound. Restrictions included limits on tow sizes, extra horsepower requirements, daytime travel only restrictions, and assist towboat requirements at bridges, locks, certain sections of affected waterways and at barge fleeting areas. As a result, trip times were extended, additional towboats were chartered and operating inefficiencies occurred, resulting in loss of revenues and additional operating expenditures. The marine transportation operating margin for the 2011 second quarter was 21.9% compared with 21.6% for the second quarter of 2010, a reflection of continued strong petrochemical and black oil products demand and equipment utilization levels, and higher term and spot market pricing, partially offset by the cost impact of the high water and flooding during the majority of the quarter and the cost impact of rising diesel fuel prices. Green Marine received the prestigious Sustainable Shipping Award for Green Shipping Initiative of the Year for 2011 at the gala presentations held recently in London, England. The award celebrates and rewards the important work that is going on worldwide to assist the marine industry in improving environmental efficiency. Other nominees in this category included Rightship, DNV, Royal Caribbean and the Carbon War Room. It was with great pride that David Bolduc, Green Marine’s Executive Director, accepted the Green Shipping Initiative of the Year prize before an audience that included environmental and marine industry experts from throughout the world. “The Green Marine initiative has grown rapidly since being launched just over three years ago” he noted. “This award is a testament to the initiative’s success and, even more importantly, to the credibility and relevance of the Green Marine Environmental Program. Green Marine’s participants deserve to be recognized and applauded for the extraordinary efforts they have undertaken to improve their environmental performance,” Mr. Bolduc added, “which is why I would like to take this occasion to congratulate all of the shipowners, ports, terminals and shipyards participating in the program for their commitment to the environment and the significant progress they have made on this front.” Green Marine already has over 120 members and has implemented a series of bold measures that have significantly strengthened the program’s credibility as a key tool for developing a culture of continuous environmental improvement and sustainability within the maritime industry. Green Marine’s published results attained by participating companies show continuous improvement since 2008 and clearly demonstrate the depth of their commitment to the environmental program. Green Marine requires that shipowners, ports, terminals and shipyards participants have their results verified by an independent third party thereby ensuring the credibility and transparency of the program. During the course of the past year, Green Marine significantly strengthened its position as the maritime industry’s most important environmental initiative in North America. “We will continue to work hard in order to ensure that Green Marine reaches ever greater heights in the future,” says Mr. Bolduc. Green Marine takes this opportunity to thank the judging panel of the Sustainable Shipping Awards 2011, which was composed of representatives from many organizations from the transport industry and the environment including the International Chamber of Shipping, IKEA UK, World Wildlife Fund (WWF), Maersk Line and SustainableShipping.com. Green Marine also extends its congratulations to all of the winners and nominees. IP www.inlandportmagazine.com
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2011 Issue IV