PRSRT STD U.S. POSTAGE PAID WILMINGTON, DE PERMIT NO. 1635 THE MARITIME EXCHANGE 240 Cherry Street Philadelphia, PA 19106 BEACONSpring 2014 ADDRESS SERVICE REQUESTED Volume 24, No.1 http://www.maritimedelriv.com w [email protected] Congress Supports FA Initiative for Port Grants Interview with Kurt Ferry knows a good deal when he sees “But that all changed in 2012,” said Exchange one. As Chairman of the Area Maritime Security Vice President Lisa Himber. The Exchange serves Pennsylvania Governor Committee and former Chair of its Grants Sub- as FA for the grant program in the Delaware River committee Kurt Ferry is fully aware of exactly region. “At that time, FEMA decided it would Tom Corbett how much work is involved in evaluating Port rather keep decisions and PSGP Management in Security Grant Program (PSG) applications. Washington, DC.” “The process can take several months of This reversal was a great loss at both the work, and over the last several rounds, we had to regional and individual levels. “In San Francisco, cram it into weeks,” Ferry said, noting the several we were able to reprogram $8 million and invest iterations and layers of review. “But it’s all worth it in needed security projects rather than return it,” he said, “there is no doubt in my mind that it to the federal government as unspent for the making the decision on how federal PSGP dollars FY08 program,” said Lynn Korwatch, Executive are spent must be kept at the local level.” Director of the San Francisco Marine Exchange. Beginning with a supplemental grant round Many of the Delaware River sub-grantees told in 2007, the Federal Emergency Management the Exchange how much they appreciated having Agency, which is tasked to administer Homeland a local contact to ensure federal procurement Security Grant Programs including the PSGP, A long-standing and ardent supporter of the Del- processes are followed and to get speedy answers aware River and its commercial maritime industry, devised a mechanism to include specific dollar to questions when they arise. and Seamen’s Church Institute Spirit of Port Award allocations for certain port regions and allow According to Sylvia Floyd-Kennard, Director recipient for 2014, Pennsylvania Governor Tom local AMSCs to determine which projects should of HR and Security at the Port of Wilmington, Corbett (R) recently agreed to share with The be funded. Under this model, which utilizes a “The staff at the Maritime Exchange facilitated Beacon some of his thoughts on a variety of subjects local Fiduciary Agent (FA) to work with FEMA our maneuvering through the entire process, from of interest to our readers. and ultimate recipients, the port community has, the beginning of our project to its completion. Q: With the 45’ Main Channel Deepening Project among other significant benefits, greater visibility We completed our project on time and within approximately 60% completed, what are your thoughts into what capabilities are being acquired or on pending and long-term positive results we can developed. continued on page 6 anticipate as this project nears completion? A: This is arguably one of the Commonwealth’s most Coping With the Cold: Maritime Impacts of strategic and important projects in the last twenty years. The Main Channel Deepening Project of the Delaware River the 2014 Polar Vortex is a bi-partisan effort, which I aggressively supported. The deepening of the Main Channel will not only allow the Port By: Kathy Moore, Captain of the Port of Philadelphia to maintain its existing customer base, but U.S. Coast Guard it will lead to greater interest by ocean carriers looking to Sector Delaware Bay service the northeast U.S. A deeper channel also will lead The title of this entry is only slightly tongue- directly to increased cargoes and thousands of new and in-cheek. As we were all getting used to writing retained jobs. 2014 instead of 2013, the Jet Stream took a header Q: In the not so distant past, regional refineries were and the local forecast looked like one from Alberta, threatened with closure, and thousands of jobs were Canada! We received a slug of snow and then a at risk. Where do we stand today with respect to our particularly unpleasant combination of cold air and regional industrial landscape? high winds. The weather presented a real safety A: Due to the commitment of my administration, buyers risk for anyone outside due to the subzero wind were found to purchase and operate the refineries on the chills, but I want to focus a bit more on some of Pennsylvania side of the Delaware River. This public-private the impacts of the ‘Polar Vortex’ on our waterways. Cape May-Lewes Ferry navigates through the ice. partnership has developed into technology enhancement Sector Delaware Bay, in collaboration with and retention of existing jobs. With the advent of the the Mariner’s Advisory Committee, Captain Jon Schuylkill. This process works much the same as Marcellus Shale natural gas deposits, Philadelphia is Kemmerley, set Ice Condition 3 and then Ice it does with significant storms or hurricanes, where rapidly being recognized as a growing energy center. Over Condition 2 with hull restrictions as the ice began to traffic on the river is restricted as hazard conditions accumulate in the Delaware, the C&D canal and the increase. time, not only will Philadelphia become a major port of One of the features of this year’s ice that we export for home-grown energy products, but it will also monitored closely was the ice jam that occurred become a hub for increased employment opportunities Calling All Exchange Members up near Trenton. This feature became a concern in the evolving energy industry. Philadelphia is also You should have received your 2014 Membership as it effectively dammed a portion of the Delaware benefiting from the waterborne movement of domestic oil Renewal Notices early in January of this year. Many River causing some flooding in riverside areas of to both domestic and foreign ports. thanks to those who have already sent in their annual Pennsylvania and New Jersey. We dispatched Coast dues payments. If, however, you have yet to remit, Q: How can we best develop an accomplished 21st won’t you please take a moment and do so now? Guard Cutters CAPSTAN and CLEAT to transit up Century regional maritime work force that is ready, Not a member? river to see if we could break through the jam. The jam presented a risk to the river as an willing and able to maintain a needed and steady stream If you are not a member of the Exchange, now is of good-paying, family-sustaining jobs? an excellent time to get engaged. You can become uncontrolled break in the dam could send large a part of an organization that strives to protect and pieces of ice and a significant slug of water down A: The best way to develop an accomplished maritime promote the Delaware River commercial maritime river, potentially impacting shipping, both transiting workforce is through continuing education and port industry by providing leadership and advocacy on and moored. As it happened, the jam resolved itself awareness. Stakeholders of the maritime industry need issues that matter most and through a suite of programs through gradual melting and no damage to shipping and services to help optimize your own productivity. to unite and stress the importance of the industry and the Contact Beverly Ford at 267-670-7946 or bford@ or facilities was experienced as a direct result of opportunities for growth and accomplishment. Public maritimedelriv.com to discuss the many benefits the jam. We did, however experience a number of awareness includes making all aware of the importance available to you as a member of the Maritime Exchange. continued on page 6 continued on page 7 The Beacon 2 Spring 2014

A Key Component of the Delaware River Regional Port . . . Aker Realizes Promise of Shipbuilding

• A new general cargo terminal being built A recent article in Maritime Professional by the South Jersey Port Corporation in authored by Joseph Keefe comprehensively Paulsboro, New Jersey. described the innovative and entrepreneurial • The Philadelphia Regional Port path followed by AKPS which led to this Authority working to develop a new business recovery. It is well worth reading. container terminal, Southport, at the AKPS was able to capitalize on those same Philadelphia Navy Yard. market conditions embodied in the global and • The Port of Wilmington investing in domestic energy marketplace that impacted our new cranes and refurbishing berths as regional port. The booming shale gas and crude a part of its capital investment program. oil industry in the United States and Canada drives the production of US-flagged petroleum And private cargo terminals are making product tankers that are needed to transport oil, In the last issue of The Beacon, we focused similar investments as well. gasoline, and chemicals coastwise throughout on how changes in the global and domestic Going into the great recession of 2009, our country. In addition to product tankers, energy marketplaces have impacted our three oil refineries were shuttered, and one they are also building US-flagged container regional port complex. In that edition, there was scheduled to be closed down. Today, the ships. was an article regarding plans between Aker Philadelphia refinery, once operated by Sunoco, Philadelphia Shipyard (AKPS) and Crowley The bottom line is clear: it is a huge plus remains open and now operates as Philadelphia Maritime Corporation to build four new for our port to have this strong and vibrant Energy Solutions. The Trainer refinery is now American Flag tankers. shipbuilding company as part of our community. operated by Monroe Energy (Delta Airlines). This AKPS story, and so many of the points And the legacy Sunoco refinery in Marcus There is a natural tie-in to the emerging made concerning the shifting landscape of Hook is being retooled to process and export movement of Canadian and domestic petroleum the petroleum and chemical industries on the Marcellus Shale wet gasses under Sunoco cargos through our port. But AKPS’ presence Delaware River, are a testament to the resiliency Logistics Mariner East project. on the Delaware River at the old Philadelphia and competitiveness of our port. Navy Yard adds a maritime dimension to our This is all good news and it confirms the fact port that few others in the United States enjoy. We have chronicled the major changes that our port is, in fact, resilient. and initiatives impacting our port that have AKPS over the past three years has occurred in recent years in previous editions of rebounded from the impact of the recession The Beacon: driven by a worldwide financial crisis. The yard • The deepening of the Delaware River reduced its workforce from 1,200 employees to main shipping channel from 40 to 45 just over 300 within one year. Today it again feet is underway and over halfway employs over 1,000 workers. completed. The Beacon 3 Spring 2014

WRRDA Matters to Ports Along the Delaware available funding for the Corps, both would also require the Corps to prioritize the expenditure of funds drawn from By: A. Robert Degen, Esq., the HMTF, however based on differing Law Office of A. Robert Degen criteria. The Senate bill would prioritize Periodically Maritime Exchange Tax which collected, as a user fee, a funding based first on those projects President Dennis Rochford reports on percentage of the value of all cargo exports that are high-use deep draft (over 14’ numerous matters affecting the port and imports moving through designated and over 10,000,000 tons of cargo community and the businesses along U.S. ports. The Harbor Maintenance annually). It would allocate 80% of funds the Delaware River, including pending Tax is no longer collected on exports for those projects. It would then allocate legislation. One such piece of legislation since the Supreme Court declared that the remaining 20% for navigation in the is the Water Resources Reform & portion of the Act unconstitutional as an Great Lakes Navigation System that are Development Act (WRDDA) of 2013 impermissible tax on exports as opposed not maintained to their constructed width which is a biennial package of legislation to a true user fee. and depth. that is the primary vehicle for Congress Today the fee is only collected The next tier to receive funding to authorize water projects to be studied, on imports, domestic shipments and would be moderate-use and low-use port planned and developed by the U.S. Army Foreign Trade Zone admissions which are projects that have been maintained at less Corps of Engineers. The first WRDDA was required to pay .125% of the value of the than their constructed width and depth. passed in 1974 and has generally been commercial cargo shipped through the Finally, the third priority would be revisited every two years. Basically, it is specified ports. ports where channels are not maintained conditions, to use funds from the HMTF the law that implements policy changes The problem is that in the years to the minimum width and depth to dredge private berths and to remove with respect to the Corps of Engineers’ since its enactment, appropriations for necessary to provide sufficient clearance contaminated sediments. This would water resource projects and programs. harbor maintenance, including dredging, for fully loaded commercial vessels. give those ports with the deepest drafts The Senate version also authorizes the In May 2013, the Senate disposal, jetties and breakwaters have an increased ability to draw on the HMTF, Secretary to prioritize other projects to overwhelmingly passed S. 601, its lagged far behind the fees collected to fund thus potentially reducing the amount of address hazardous navigation conditions version of the Water Resources Reform those activities. As a result, the HMTF funds allocated to other ports. or impacts of natural disasters. However, & Development Act of 2013. A similar has accumulated a surplus, as of FY12, of While the House bill also expands the House bill would use different criteria bill, H.R. 3080, the Water Resources $7 billion. In recent years, approximately use of the HMTF for dredging of berths Reform & Development Act of 2013, was $1.5 billion has been added annually to and would require the Secretary of and contaminated sediments it ties the introduced into the House in September the fund while only approximately half the Army to review the operation and expenditure to certain conditions. In 2013 and was passed on Oct 23, 2013 of that amount has been appropriated maintenance needs of different types of years when target expenditures from when the bill went back to the Senate, for harbor maintenance, resulting in a harbors and make future operation and the HMTF are met (80% from FY20 which again passed its version on Oct 31, constant battle to have channel project maintenance expenditures based on an 2013. As a result of differences in the depths and widths maintained. equitable allocation among all harbor onward), five percent may be used on two versions of the bills, the competing So what does the WRDDA of 2013 do types regardless of size and tonnage, specific other uses, such as dredging bills went to a conference committee on to provide relief? Both the Senate and based on the review and assessment of berths and disposal of contaminated November 20, 2013 where deliberations House versions provide for increased made by the Secretary. sediments affecting a federal navigation are underway. expenditures from the HMTF based on The differing approaches are channel. The effect of this provision will You may be wondering just why the gradual increases for FY14 through FY19. significant. The House bill specifically allow naturally deep ports without major Delaware River port community should be The Senate bill would require expenditure declines to allocate funds based solely dredging needs to benefit from expanded concerned about the details of the Water of not less than $1 billion in FY14 up to on tonnage contrary to the Senate bill. use opportunities. Resources Reform & Development Act of $1.5 billion in FY19. Thereafter, from The effect of this difference between It is difficult to say just which 2013. There are several good reasons to FY20 on, all funds collected by the fund the House and Senate versions would provisions will benefit the ports along support the current version of the Act. would be made available to the Corps for likely favor those ports having a high the Delaware River most. However, it is proportion of container traffic over those Maintenance Dredging its harbor maintenance programs. The safe to say that either the Senate or the House bill would allocate 65% of fees handling mostly bulk cargos, and thus House bill will likely increase the pool of Since the early years of our country, collected to the Corps in FY14, with the higher overall tonnages. funds available to the Corps to carry out the federal government has funded percentage increasing to 75% in FY19. its responsibility, among other things, activities to maintain access to the Berth Dredging From FY20 on, the amount allocated to to maintain the navigable channels in country’s harbor access channels. The the Corps would be capped at 80% of In addition, both versions of the responsibility for that rests with the U.S. WRDDA make some provision for federal the nation’s ports. Given the continual fees collected. The net result under either need for maintenance dredging it is safe Army Corps of Engineers which relies on version will be an increase in available funding for private berth dredging. to say that either the House or Senate appropriations from Congress to carry funding for the Corps to maintain the Under current law, the depths of berths bill will result in a benefit to the region out its responsibilities. nation’s harbors and navigation channels. and some private side channels are To ensure an adequate source of the responsibility of port authorities or through additional funding for regular revenue, the Harbor Maintenance Trust Project Prioritization terminal owners and may not be dredged maintenance dredging. Fund (HMTF) was established in 1986 to So, how would the increased funding or widened with HMTF money. Stay tuned as a conference committee fund the operation and maintenance of be divvied up between competing ports? The Senate bill would allow ports of the House and Senate work toward ports and harbors. It was supported by While both the Senate and House that generate significantly more HMT a compromise bill that can pass both the imposition of the Harbor Maintenance versions of WRDDA would increase the revenue than they receive, under certain houses. Conference Committee Works to Finalize WRRDA The House and Senate Conference Committee said. “Whatever the project may be, we will continue economic growth. With thousands of jobs dependent for the Water Resources Reform & Development to value our partnership with the Corps of Engineers on our waters, the need for Congress to settle its Act (WRRDA) is hoping to reach agreement on this and the work they do and look forward to continuing existing differences and allow the Army Corps to legislation early in 2014. this strong relationship. I look forward to a productive move forward with their work is in all of our best There were a number of differences between and speedy conference.” interests. I’ll continue to work with my colleagues, the Senate version of WRRDA (S. 601), and the As outlined in the accompanying article by A. members of the Maritime Exchange, and other House version, H.R. 3080, which caused delay in Robert Degen, Esq., a major provision of this bill interested parties on this legislation,” he said. an agreement being reached last December between would set targeted expenditures from the Harbor “Full utilization of the HMT is critical to both House and Senate conferees. As of the publication Maintenance Trust Fund (HMTF), to increase each the navigational safety and competitiveness of our date of this issue of The Beacon, there was cautious year so that by FY20, and every year thereafter, nation’s ports,” said Dennis Rochford, Exchange optimism that a final bill would be voted out of the no less than 80% of the funds collected would be President. “The annual $30 million Operations committee and passed by both houses of Congress. expended on operations and maintenance dredging Senator Tom Carper (D-DE) and Congressman Frank activities. and Maintenance funding the Corps of Engineers LoBiondo (R-NJ) both serve as conferees. Congressman LoBiondo, a member of the receives to dredge shipping channels and harbors “Whether the Corps is at work deepening the House Coast Guard & Maritime Transportation throughout our regional port could be increased. main channel of the Delaware River, restoring and Subcommittee. has been a key supporter of maritime With these additional funds, the Corps would be improving valuable coastal environments along our initiatives and is a strong proponent of the WRRDA. better positioned to undertake other projects. As an Bayshore, or constructing vital protective barriers “Given the substantial reliance on our waterways example, this funding could be utilized to upgrade against coastal storms, these projects offer benefits for interstate and international commerce, finishing existing federal upland confined disposal facilities to all Delawareans in one way or another,” Carper a multi-year WRRDA is critical to our nation’s and beneficial reuse programs.” The Beacon 4 Spring 2014 Keeping Pace: Exchange Adds Layers of Redundancy to Support Operations For nearly 140 years, the for the Bay and River Delaware and project migrated us from legacy associated with its on-line systems, Maritime Exchange has served the is also backed up by a generator. frame relay circuits to the newer email servers, and web sites, and port community as a clearinghouse The Lewes Ship Reporting Tower MPLS platform. The joint VHF these are monitored and serviced for Delaware River port-related data serves as the night and weekend radio network makes sense because 24 hours a day through a national and as the central communication operations center. By maintaining we can leverage the resources and support firm. center for disseminating information three geographically separate sites, talents of both organizations to “We continually invest in to help keep the region competitive. the Exchange minimizes the risk provide a first class communication upgrading with new hardware The mechanisms through which that any single disaster could disrupt network on the Delaware River.” as equipment ages and new the Exchange collects and distributes or halt operations. In conjunction with the MPLS technology becomes available that information has obviously changed All three sites are connected by project, the Exchange also upgraded would enhance Maritime On-Line dramatically over the many years. state-of-the-art Multiprotocol Label its Internet circuits last year to efficiency and provide additional From couriers, blackboards, Switching (MPLS) data circuits provide enhanced connectivity redundancy,” said IT Director telegraphs, telex and fax machines, which were implemented in 2013 for external users who access the Michael Fink. cell phones and VHF radios, to replace legacy technology. The Maritime On-Line system. The new “Beginning this year, we are servers and personal computers, the MPLS circuits were deployed as circuits also allowed the Exchange looking to leverage virtualization Exchange has been witness to many part of a joint multi-year project to replace its phone system with a technology – using a software technological innovations and has with the Pilots’ Association to new IP-based system in 2013. The application to divide one physical embraced each to ensure superior upgrade the Exchange/Pilots’ VHF migration from an internal system to server into multiple isolated virtual service to members and subscribers. radio network which covers the a hosted solution provided system environments. This would allow Geographically, the Exchange entire Delaware River region. VHF redundancy, enhanced features, and the Exchange to collapse several maintains three physical offices, one radio capabilities exist at all three reduced the cost of ownership. servers to only one, two or three each in Philadelphia, Wilmington, Exchange locations and are used Since the 1980s, the Maritime physical machines.” For instance, a and Lewes, Delaware. The Phila- to collect vessel schedule changes Exchange has hosted the database server, file server, and an delphia site serves as the primary and updates and to facilitate ship- community-developed system email server can each reside on a administrative and operational office to-shore communications between known as Maritime On-Line to single box rather than each requiring for normal business hours, houses Exchange members and vessel collect and disseminate port related a separate machine. Each server the Exchange’s primary data center, personnel. information. At that time, the is maintained in a separate virtual and is backed up by a generator. “This is the second successful Exchange traded in its handwritten environment, new servers can be The office in Wilmington, located joint VHF radio project undertaken log books for a digital schedule added on the fly, and each can be within the Port of Wilmington by the Pilots’ and the Exchange,” system, developed a community- moved to another virtual server Administration Building, serves as said Jason Rowinski, IT Manager based electronic manifest system to for redundancy or backups. The the backup office and data center. for the Pilots’ Association. “The clear cargo with U.S. Customs, and Exchange is reviewing the possible The Exchange also maintains first was completed in 2008 to subsequently implemented systems cost/benefits that include improved a Lewes, Delaware facility that is convert the radio network from to assist in cargo operations and to disaster recovery capabilities, shared with the Pilots’ Association analog to digital, and the most recent meet other federal requirements for increased uptime, and reduced electronic vessel, cargo, and crew overhead costs, and will be standing reporting. up its first virtual machine in 2014. What began as a single computer The pace at which technology server environment running on has advanced has never been so what was then a leading edge keenly felt at the Exchange as within operating system with banks of the past 10 years, and the demand modems for user connectivity is for information by the private and now a complex and sophisticated public sectors will only continue port communications center in use to grow. This will necessitate a by maritime businesses throughout continually evolving infrastructure the country. to support the increasingly complex Critical information, which systems that will be required. includes all Maritime On-Line data, “Fortunately, new hardware, is replicated real-time from the software, and communication primary facility to the backup site, innovations continually emerge that with non-time sensitive information support these trends and provide replicated on a nightly basis. more opportunities each year Tertiary backups are performed through which the Exchange can daily and stored off-site. help to enhance information sharing The Exchange currently and facilitate cargo operations on owns and maintains all hardware the Delaware River,” Fink said. The Beacon 5 Spring 2014 Member Profile: Horizon Lines, Inc. Last year, Horizon Lines, Inc. based global asset management joined the roster of satisfied customers firm. Under Carlyle’s ownership, in our region. By becoming a member the company’s name was changed to of the Maritime Exchange at the same Horizon Lines. In September of 2005, time, Horizon Lines thus also joined Horizon Lines successfully launched the roster of maritime community an Initial Public Offering. Today, it is businesses and individuals who entirely focused on business between recognize the importance of working the U.S. mainland, Alaska, Hawaii and collaboratively to solve problems and Puerto Rico. Currently, the Horizon identify opportunities for improvement. Trader and Horizon Navigator call on The Beacon is pleased to provide Philadelphia. Horizon Lines ships call on “Horizon Lines is thrilled to be calling this brief history of one of the region’s The Horizon Lines fleet consists of Philadelphia once per week. on Philadelphia. Since we began in newest customers. both steam-powered and diesel ships Timothy Close, Captain, USCG April 2013, the reception by the port Horizon Lines is a domestic ocean with the diesel ships primarily serving (ret.), and Director, Safety, Security community has been outstanding. We shipping company that serves the ports in Alaska. All of the ships are & Environmental Health for Horizon are proud to be part of the action in markets of Alaska, Hawaii and Puerto built in the U.S. and proudly fly the Lines in Irving, Texas, had this to Philadelphia.” Rico from the continental United U.S. flag. They are crewed through say about Horizon’s presence in the States. The company and CEO Sam three unions: Masters, Mates & Pilots Delaware River port community: Woodward are based in Charlotte, for the licensed deck officers; Marine North Carolina, but the Horizon Lines Engineers’ Beneficial Association for vessel and inland operations are largely the licensed engineering officers; and run from its location in the Dallas, The Seafarers International Union for Texas area. The company maintains all unlicensed personnel. a fleet of 13 fully Jones Act qualified Horizon Lines ships participate vessels and operates five port terminals in the U.S. Coast Guard’s Automated in Alaska, Hawaii and Puerto Rico. Mutual-Assistance Vessel Rescue The ships sail from the U.S. mainland (AMVER) System and are involved in ports of Philadelphia, Jacksonville, several cases every year. The Horizon Houston, Tacoma, Oakland and Los Reliance was specifically recognized by Angeles. the U.S. Coast Guard and international Horizon Lines has its roots in the organizations for its role in 2012 advent of containerized shipping. In saving two Canadian men and a boy 1956, Sea-Land Service introduced whose sailboat became disabled and ocean-borne containerization with was adrift in heavy weather between a shipment of containers aboard the the mainland and Hawaii. Ideal-X, a converted World War II T-2 Eleven Horizon Lines ships oil tanker, from Newark, New Jersey to were recently recognized by the Houston, Texas. Sea-Land introduced Chamber of Shipping of America with container shipping to the Puerto Environmental Achievement Awards Rico market in 1958 and pioneered for each completing two years without container shipping to Alaska in 1958, an oil spill of any size. Collectively, with the first year-round scheduled those ships have a combined total of vessel service. over 72 consecutive years of operation In 1987, the line began providing without any environmental incidents. container shipping services between the The Horizon Spirit just completed U.S. West Coast and Hawaii and Guam a project with scientists from the U.S. through acquisition from an existing Department of Energy’s Brookhaven carrier of all of its vessels that were Laboratory. The project collected already serving that market. Sea-Land a year’s worth of atmospheric data was acquired by CSX Corp. in 1986, involving a range of variables that and in 1997, Sea-Land launched the influence cloud formation. Outfitted first fleet of advanced humidity control with high-tech instruments and refrigerated containers. In 1999, CSX accompanied by a small team of sold the international ocean business to scientists, Horizon Spirit was an ideal Maersk, retaining the domestic ocean platform to collect data across the shipping business as CSX Lines. Pacific. The scientists have now begun In 2003, CSX Lines was sold to the huge task of analyzing the data The Carlyle Group, an American- collected. The Beacon 6 Spring 2014 Congress Recognizes Benefits of the FA Grant Model continued from page 1 of fiduciary agents when applicants are managing that makes sense for each of our nation’s unique grants across many jurisdictions, such as in the port areas.” budget. The efforts and support by the Maritime port security grant program,” it said. The Delaware River Congressional Delegation Exchange were especially important in achieving More recently, members of Congress in several has been particularly supportive. Joining on the our grant success.” port areas came together to jointly sign a letter The Exchange and other FAs throughout the letter are Senators Carper, Coons, and Toomey, as encouraging FEMA to revert to the FA model on a country came together to form the Port Security voluntary basis. As of press time, 17 members had well as Representatives Carney, Lance, LoBiondo, Grant Coalition, which spent the last year signed on, with many others expressing interest. and Meehan. attempting to work with FEMA to allow those Led by Delaware’s Senator Tom Carper (D) who Himber said the dialogue with FEMA will ports which realize the benefits of using the FA model to continue to do so. Those efforts have yet chairs the Senate Homeland Security/Government continue. “It’s unfortunate that we haven’t yet to pay off, and FEMA has not yet agreed to allow Affairs Committee, and Pennsylvania Senator been able to find a compromise that addresses the PSGP to operate at the local level as do the Pat Toomey (R), the members believe that “. . . concerns FEMA may have while allowing areas Fiduciary agents enhance FEMA’s administration other Homeland Security Grant Programs. that are positioned to do so to take full advantage “However, there are allies in Congress that agree of the PSGP by working with local, state and Federal of such a valuable federal program. But working with the Coalition,” Himber said. Congress added government agencies, port authorities, regulated language to support the FA model in the Omnibus vessel/terminal operators, first responders, and with FEMA and with our Congressional offices, bill recently passed by Congress and signed by other port stakeholders to ensure that homeland I’m confident we’ll be able to reach a satisfactory President Obama. “FEMA shall consider the use security dollars are spent effectively and in a way conclusion.”

Q: How will the ports benefit from Act 89, Q&A with Corbett the new transportation plan? continued from page 1 A: Act 89 establishes a stable, multimodal of the industry and the economic impacts fund to meet the critical needs of other to both the region and state. Of course, non-highway forms of transportation that maritime stakeholders, such as the cannot be funded through current sources. Pilots Association, labor, and terminal It provides guaranteed funding for the operators, already provide comprehensive Commonwealth’s ports for the next five and specialized training, which includes years. As a result, our ports will be better safety and heavy equipment operation. able to plan and establish policy knowing As a matter of fact, when the Department that each will receive a specific allocation. of Defense chose the Port of Philadelphia Act 89 also creates a single program area as a strategic military port, Philadelphia in the Department of Transportation that was the only port that had completed will include every transportation mode – specialized training for local members of aviation, public transit, inter-city rail, rail the ILA and Teamsters unions with military freight and ports. equipment. The Beacon 7 Spring 2014 Spliethoff Begins New Liner Service at Penn Terminals

On February 4, the MV Spaarnegracht arrived at Spliethoff directors Pieter Flohil and Dennis Penn Terminals in Eddystone, Pennsylvania, its first Bakkenhoven were on hand for the ceremony and voyage to the terminal as part of a new liner service. were provided a tour of the Penn Terminals facility. Dutch shipping company Spliethoff began the “Spliethoff is constantly reevaluating business new monthly service to carry, among other cargos, opportunities and contracts,” Flohil said. “It is steel pipe, plate, and sheet to the region from the important for us to focus on long-term relationships, Mediterranean. The Spliethoff Group is the largest and we are confident that the Penn Terminals business ship owner in the Netherlands with a fleet of over will expand.” 100 multipurpose vessels handling 1.2 million tons The arrival of the MV Spaarnegracht represents of liner service cargo to the U.S. annually, 80 percent a return by Spliethoff to Penn Terminals, who last of which is destined for the East Coast. called Penn Terminals to handle live cattle exports On its first voyage, the MV Spaarnegracht to Russia and Turkey in 2013. Spliethoff has been discharged 3,000 tons of pipe and other steel cargoes calling the Delaware River and through the years Penn Terminals commemorated the Spliethoff liner to Penn Terminals. The high-end steel cargos coming has been a customer of Penn Terminals since the service in February with a plaque presentation. (l-r) from western European producers are destined for mid-1980s on an ad hoc basis, but the first monthly Spliethoff Director Pieter Flohil, Captain Woolthuis of the automotive and oil and gas industries in the call with the MV Spaarnegracht commences a new the SPAARNEGRACHT, Penn Terminals President and Unites States. The next vessel will carry 7,000 tons chapter in their service pattern to the region. CEO John Brennan, and Spliethoff Director Dennis of steel products, of which more than 2,000 tons are “Penn Terminals is grateful to Spliethoff and their Bakkenhoven. scheduled for delivery to Penn Terminals. According end customers for the trust they put in us to safely, to the producer, most all of the steel products are expeditiously, and competitively handle this cargo. Shipyards. Encompassing 80 acres, the multi- already sold prior to arrival at the port. Penn Terminals is in a position to support Spliethoff purpose terminal handles container, perishable, Penn Terminals President and CEO John Brennan now and for many years to come,” said Brennan. breakbulk, and project cargo. It has a reefer and Director of Commercial Services Jeffrey “We look forward to growing their business and Culbertson commemorated the event by presenting increasing trade in the region.” warehouse capability of 2,850,000 cu. ft., and hosts a plaque to the Master of the MV Spaarnegracht, Penn Terminals is a privately-owned facility three dry space warehouses for a capacity of 300,000 Captain Woolthuis, while the vessel was in port. formed in 1986 from part of the Philadelphia Naval sq. ft.

Ice Affects the As the weather warmed, and the This was a great reminder that The Coast Guard is very risk of ice forming diminished, we when significant quantities of ice appreciative of the efforts of our Delaware River returned to Condition 3 and finally, accumulate, we can ease restrictions volunteer ice observers who make Condition 4: Seasonal Alert on January by changing Ice Condition from Ice regular reports concerning the type and continued from page 1 13. At that time, we began to address Condition 2 to Ice Condition 3 or even coverage of ice in various portions of the ATON discrepancies and still Ice Condition 4, Seasonal Alert, but the area, significantly enhancing our ATON discrepancies and some damage saw significant pieces of ice flowing that does not indicate an absence of understanding of our local risks. We to aids as the hulls were submerged south from the upper reaches of the ice — just that new ice is not expected also are very grateful for a maritime below the ice. We moved as swiftly Delaware. We saw significant chunks to form. As well, we were reminded community that works together, as possible to remove two aids that of ice make their way down river even that the work of addressing ATON communicating and operating to had found their way into the shipping through January 15 and despite several discrepancies will continue for days or minimize the risk of damage to ships, channel. days with air temps well into the 50’s. weeks past a significant event. facilities and the marine environment. The Beacon 8 Spring 2014 Penot Retires after 47 Years at Norton Lilly

man because we had one carrier who have been positive. “The fax machine could not accept that a woman’s name was the first step in the downfall of be associated with the line,” she said. personnel communications,” she But for the most part it wasn’t too bad. said. “From there it was a short step “You just had to know how to handle to email, and now everyone wants a yourself.” In those days, she noted, response in two hours or less. Now, women wouldn’t think of going on a it can take 20 emails to accomplish pier, either. what we did then in a five minute call.” But that changed fairly soon. “I Though she readily acknowledges the was really fortunate to work with Gerry improvements automation has brought Bradford,” she recalled. “Gerry was to the industry, she misses the personal open about sharing information and helping people learn more about the interaction and recognizes that even after 25 years of the desktop computer, On January 30, the Chapel of Four Chaplains presented Theresa Penot with a certifi- industry.” He took her around to the cate of merit for her work in the port community. Show here are (l-r) Christine Beady, piers and rail yard to meet the people the steamship business still has a long Executive Director of the Chapel of Four Chaplains, Theresa Penot, Capt. Louis Cava- she dealt with on the phone, and he way to go. “We’ve invested a great deal liere, USN Retired, Co-Chairman of the Four Chaplains Memorial Foundation and took her to the maritime dinners. But of money in our systems, but many of William Moran, Jr., President, Ports of Philadelphia Maritime Society. it wasn’t easy for Penot to get out from them still don’t talk to each other.” behind her desk. “Believe it or not, I But in general, the ride has been a In this day and age, to many it’s Lilly as an import clerk and telex was shy at one time,” she joked. good one. “I have met a lot of amazing an unfathomable concept. Sure, our operator. “What’s a telex?” she asked. Hard to believe now. Theresa Penot people, particularly the women who parents went to work for DuPont, or Since then, Penot has witnessed the has been active in both the Women’s got together to establish WITA [in Hercules, or ICI right after college and complete transformation of an industry. International Trade Association 1980]. We had to form our own little stayed with the same company until “Containers changed everything. The (WITA) and the Philadelphia Maritime network,” she said, noting that it wasn’t they retired 40 years later. But today, advent of containerization created Society for decades. In 1999, she had too long afterwards that the trucking that just doesn’t happen. a need for an ‘equipment control’ the distinct honor to be the first – and companies started to join WITA in Yet to Theresa Penot, who position. Try to imagine tracking only – female recipient of the Society’s recognition of the fact that it was the started at Norton Lilly in 1966, it’s containers without computers . . . “Person of the Year” award. “Looking women who hired them. perfectly natural, and she doesn’t but we did it.” She noted that the back over the last 47 years, that had to Those who know her will be glad quite understand why the entire port challenge was to create a system be the high point. Not simply because to know Penot isn’t going to disappear community is in awe of her lengthy from scratch, recalling a board with I received the award, but also because after her retirement. She plans to stay career and her many accomplishments. “T-cards” to write notes on every move of the caliber of people who were on “I don’t know what all the fuss is the container made. the board at that time and selected me. active in the Maritime Society and may about,” she said recently over coffee Penot was also one of only a handful These were people I’d looked up to my consider part-time work at some point at Norton Lilly’s new Essington office. of women in the maritime industry at entire career.” She also received the in the future. Her husband of 30 years, “It doesn’t seem like a big deal.” that time. Though she noted that most WITA “Woman of the Year” award in Lou, is also retiring after 26 years at Penot didn’t plan a career in the people accepted that women were 1997. Penn Terminals, and Penot is looking maritime industry. She was working coming along in the industry, there were Though Penot has seen dramatic forward to the change. at an insurance company when a friend a few who resented it. “In the ’70s, changes in the steamship agency “As hard as it’s going to be, I’m suggested she go for a job at Norton the agency had to hire an additional business over the years, not all of them definitely ready for it.” The Beacon 9 Spring 2014

Delaware River Maritime Day Returns

College “TS EMPIRE STATE” and date. Just imagine what the final our industry. I hope you all will come the US Merchant Marine Academy at program will look like. The maritime out for this celebration and Kings Point “TV KINGS POINTER” schools that will be represented at bring your friends. will be visiting Philadelphia for the Delaware River Maritime Day and I have added my name Memorial Day Weekend. Also on their cadets are part of the future of to the list of volunteers. hand will be the tug Jupiter, the tug It wasn’t so long ago we could Penrose, the sailing ship Gazela, Delaware River Maritime Day 2014 forget the fun we had at Maritime Day, and tugs from Moran Towing and Preliminary Program of Events held from 1996 through 2000, where McAllister Towing. we celebrated the Delaware River, the The list of port community Friday May 23, 2014 people who make their livings from it, members who are working hard to 1700: TS EMPIRE STATE VI Arrives and those who enjoy its beauty. Well make Delaware River Maritime Day 1830: TS EMPIRE STATE VI reception onboard ship (Alumni, Invited Guests) it’s back. The port community has a success continues to grow. As of press time, the following individuals Saturday May 24, 2014 once again stepped up to celebrate 0800-1000: Monomy Practice our nation’s maritime heritage by had signed on to help: Joe Benton, sponsoring an event designed to Vice President, McAllister Towing; 1000-1200: Monomoy Boat Race (Sponsored Boats) showcase the commercial port and its John Brady, CEO, Independence 1030-1200: Coast Guard demonstrations, Entertainment importance to the region. Seaport Museum; John Brennan, Penn 1200: Official Program Begins With a new name “Delaware River Terminals CEO and President, Kings - Posting of Colors (Cadets) Maritime Day” will be held this year Point Philadelphia Alumni; Kevin - Invocation (Rev. Stubbe, SCI) on May 24. Castagnola, Executive Director, South - Welcome to Port of the Delaware River and Bay (Philadelphia Mayor Nutter) Jersey Port Corp; Ward Guilday, - Presentations to Ships from City/State Representatives Many exciting events are planned - Award Ceremony (Monomoy Race, Ship Model Contest, Tug Race) at Penn’s Landing and at the Seaport President, Delaware River Pilots - Remarks (Maritime Exchange, DRWC, POPMS, ISM, Pilots, Four Chaplains) Association; Nathan Hauser, Vice Museum, including rowing races, 1300: College President Lunch (Invited VIP Guests) aboard TS EMPIRE STATE VI demonstrations and tours of the President, Moran Towing; Michael vessels. Additional details will follow, Matulewicz, Moran Towing; BJ 1300-1600: Tours of Vessels/Seaport Museum (Times TBD); Various activities continue and sponsorship opportunities are Moran, President, Ports of Philadelphia 1730-2330: Music Concert at Penn’s Landing “Live Nation” by Verizon** available. Maritime Society; Monica Santoro, 1830: Reception aboard USS OLYMPIA (Independence Seaport Museum) by Invitation While planning is still in the early Penn’s Landing Corporation; and Sunday May 25, 2014 stages, here is a brief summary, but Art Sulzer, President, Fort Schulyer this may change, so stay tuned. Philadelphia Alumni. 1000: Mariners Memorial Service aboard “TS EMPIRE STATE VI” (SCI/Chapel of Four Chaplains) The overall event will be held Thanks go out to the Ports of Friday through Sunday, May 23-25, Philadelphia Maritime Society for 1330: Baseball Game (Phillies vs Dodgers) - Cadets, crew, alumni, friends and family* 2014 at the Penn’s Landing complex agreeing to manage the finances. 1530-2330: Music Concert at Penn’s landing “Live Nation” by Verizon** and Independence Seaport Museum, Any proceeds will benefit the * Tentative: discounted block of tickets, Alumni Chapter sponsored Tailgate Party prior to game as well as aboard all the participating Maritime Charter High School of ** Tickets must be purchased to this open air concert, tentative discount for cadets ships and tugs. Philadelphia. Vessels Participating (Tentative): Training ships from State I hope the program (right) TS Empire State VI Mac Allister Tugs TV Kings Pointer Moran Tugs University of New York Maritime generates your interest at this early Tug JUPITER Tug PENROSE GAZELA Phila Fireboat The Beacon 10 Spring 2014

CBP Finds Unexpected Hitch Hiker Save the Date: By: Hal Fingerman result in death of the plant. Hosts include fruits, Chief, Agriculture Specialist vegetables, as well as deciduous trees and shrubs. Area Port to Host U.S. Customs & Border Protection In order to prevent the introduction into the United States of bee diseases and parasites, Title 7, Code CBP Forum An adult bee was a first find by U.S. Customs of Federal Regulations, Section 322, establishes the and Border Protection Agriculture. Specialists in regulations for importations of honey. Recently, The Maritime Exchange, World Trade the Port of Philadelphia found a hitch hiker never researchers identified a foreign microsporidian Association of Philadelphia, and the before found in the port. CBPAs intercepted an fungus as the probable cause of the significant Philadelphia Customs Brokers & Freight adult bee (order: Hymenoptera) from a commercial mortality of half a million bee colonies in the U.S. Forwarders Association are planning a Town maritime shipment of 7,060 cases, 95,311 kgs. of This identified parasite is known to affect Asian bees Hall style meeting with Richard F. DiNucci, fresh pineapples (Ananas comosus), originating and is thought to be responsible for the substantial Acting Assistant Commissioner for the Office from Costa Rica. Importations of bees, honey or bee losses that occurred in Asia and Europe during of International Trade for U.S. Customs and associated by-products that do not meet the entry the last ten years. The entry of untreated honey Border Protection. requirements set forth in 7 CFR § 322 present a risk intended to be fed to bees is a pathway by which such Mr. DiNucci is responsible for the daily for introducing invasive parasitic pathogens that pathogenic parasites can infect U.S. bee colonies. operations of approximately 1,000 CBP could cause substantial mortality of bee colonies in It is of utmost importance to note that the intended personnel at Headquarters and in the field, the United States. use of the honey is the factor that determines the managing commercial enforcement and course of regulatory action when honey is presented compliance operations, and implementing for entry. Importations of honey that will be fed to CBP policy to ensure the facility clearance of bees must be accompanied by an export certificate compliant cargo. from the appropriate regulatory agency of the The session is planned as an open and exporting national government certifying that the frank conversation on a variety of CBP issues honey has been heated at 212° F (100° C) for 30 of interest to the Delaware River maritime minutes. trade community. CBPOs and CBPAs have found undeclared The event will take place on April 15, 2014. honeycomb in cargo shipments, specifically Additional information will be provided as honeycomb with both unopened and opened details are finalized. wax cells within the comb. Waxen cells within a Contact Lisa Himber at the Exchange for Leafcutting bees is the common name for the honeycomb are six sided and are formed by bees for more information. Hymenoptera family Megachilidae. Leafcutting the purpose of storing eggs and containing honey. bees typically cause damage to plants by chewing Honeycomb is regulated the same as if the intended exotic bee parasites, exotic bee viruses and exotic out circular 9/32” – 5/16” sections of leaf margins. use of the honeycomb is to be fed to bees or for use bee diseases. Heavy bee activity may cause severe leaf tissue in beekeeping enterprises. In order to properly mitigate the risk of damage and/or death of the leaf. Leaf damage also As per 7CFR322, live bees, honeycomb, and other contaminated honey or combs introducing diseases leaves affected plants vulnerable to plant disease bee by-products including beekeeping equipment and parasites to bee colonies in the United States, introduction and/or other insect infestations. are restricted and/or prohibited entry into the U.S to CBP Agriculture Specialists are thus directed to Extensive bee damage causing heavy leaf drop may prevent the introduction of Africanized Honey Bees, ensure that the entry requirements are satisfied. The Beacon 11 Spring 2014 Bermuda Container Line Announces Move to Port of Philadelphia Holt Logistics Corp. announced in November future of importing and exporting from Philadelphia,” combination container and roll-on/roll-off vessel that it has reached an agreement with Bermuda said Thomas J. Holt, Jr., president of Astro Holdings, capable of carrying 360 TEUs as well as 44 cars in Container Line (BCL) to provide stevedoring and lessee of the Packer Avenue Marine Terminal. an enclosed garage area. The Oleander has electrical terminal services for BCL’s weekly shipping service “Business at Packer Avenue continues to grow, and plugs and generating capacity to allow it to carry 88 to and from Bermuda. The agreement will become the decision by Bermuda Container Line to move refrigerated containers, and hoistable car decks in its effective in the first quarter of 2014, when BCL service here shows that the shipping community is interior, which allow it to carry large roll-on/roll-off moves its U.S. port of call from Elizabeth, New taking notice of the strategic advantages offered by cargo such as construction equipment. Jersey, to Holt’s Packer Avenue Marine Terminal in our facilities. On behalf of the City of Philadelphia, Neptune Group Limited Chairman (owners of South Philadelphia. The agreement is attributable we extend a heartfelt welcome to BCL and look BCL) John Wight commented. “Moving BCL’s in part to negotiations and advocacy work done by forward to a fruitful business relationship.” departure point South to the Holt Terminal in Pennsylvania Governor Tom Corbett, Philadelphia BCL has been in continuous operation since Philadelphia required careful due diligence and Mayor Michael A. Nutter, the Greater Philadelphia 1979 and is dedicated to transporting to Bermuda engagement with stakeholders. We plan a smooth Chamber of Commerce, Philadelphia Regional Port a wide range of essential commodities, including transition and look forward to elevating customer Authority (PRPA) and Holt Logistics Corp. general supplies, perishable goods, vehicles and service levels and business opportunities for our “This is another exciting development for the heavy machinery. BCL’s ship, the Oleander, is a customers.”

Cargo Trends for the Largest Freshwater Port - On the Upswing To say the maritime shipping Located centrally within the mid- region and see where those changes are Martin Associates revealed that the total industry is competitive would be a Atlantic seaboard and in the heart of the happening” said Paul Myhre, Exchange economic value of the marine cargo and gross understatement. northeast corridor, the Delaware River director of operations. “Overall the vessel activity at the Delaware River As we know, shipping lines are port is connected to a vast highway region was up around 4% in terms of marine terminals comes in at $55.6 always looking for ways to curb the and rail transportation system. That vessel calls.” billion a year, with roughly $3.7 billion growing cost of moving goods from network, coupled with the deepening Regionally, the largest increase in paid in wages for 88,389 jobs. The one place to another. project well underway, make the region imported cargo is with alkylate which study concluded “the related economic This effort forces ports to be efficient a great place to do business. is a gasoline additive. Other petroleum value demonstrates at a given point of and offer better service as each vies for Even with all the Delaware River has products, gypsum, paper, slag, time the magnitude of the influence of a larger piece of the pie. to offer, the region was not immune chemicals, salt, iron ore, minerals and the marine terminals along the Delaware The Delaware River port complex to the faltering economy. A review of fruit are also on the rise. In addition, River.” is no different, with over thirty public Maritime Exchange ship movement data the biggest gain in exports was in diesel The Exchange is now working with and private terminals spread across over the last ten years reveals that vessel while butane, propane, asphalt, and Martin to update the 2011 numbers in Delaware, New Jersey and Pennsylvania. arrivals peaked in 2006 with 3,325 ship other petroleum products surged as light of recent gains. It is a diverse freshwater port handling a calls, and the port reached its nadir in well. diverse array of of cargos ranging from 2012, with only 2,201 arrivals. “With So what does this mean for the For more information about Del- fresh fruit and other perishables, wood vessel arrivals for last year [2,293] region in terms of dollars? A 2011 aware River vessel statistics,contact and steel products, petroleum products, closing above 2012, we can start to economic impact study commissioned Paul Myhre at pmyhre@maritime- livestock, automobiles and containers. examine some of the changes in the by the Exchange and conducted by delriv.com. The Beacon 12 Spring 2014

Dole Makes it Official, Inks 15-Year Lease to Stay at POW Dole Food Company will continue manager of operations for Dole Fresh to do business at the Port of Wilmington Fruit. “Dole was the first containerized for the next 15 years thanks to a lease banana company importing here. We signed in December that positively are confident that this decision will impacts hundreds of jobs and secures a help maintain Dole’s position as a critical revenue stream for Delaware’s top brand in the very competitive economy. North American fruit market and Dole is the Port’s largest customer, look forward to enjoying a long and importing bananas, pineapples and mutually supportive relationship with other fruit and exporting forest the port for many years to come.” products and general cargo, and the Dole’s leasehold encompasses company’s presence there makes it the 37.7 acres of terminal land and about biggest fresh fruit import port in North 100,000 square feet of warehouse America. and office space. Dole ships make “The port has been a vital hub of approximately 52 vessel calls annually commerce in Delaware for nearly a at the port, operated by Diamond State century. Today it remains as important Port Corp. The lease and its two 10- as ever thanks to customers like Dole, year extension options will enable which connect our state to the global Dole Fresh Fruit Company, a Dole economy, provide jobs for hard- subsidiary, to continue its terminal working Delawareans and ensure a operations at the Port of Wilmington dependable flow of revenue for our through 2048. economy,” said Gov. Jack Markell. “The appropriation of the funding Retaining Dole’s business was necessary to make these improvements crucial not only to the Port of is the result of a joint effort between Wilmington but also to the State of the Markell administration, state Delaware. The business will continue legislators and the port board,” said to support 850 family-sustaining jobs. Alan Levin, chairman of Diamond “We have been at the Port of State Port Corporation and director of Wilmington for more than 30 years, the Delaware Economic Development and this agreement with the Diamond Office. State Port Corporation reaffirms our The lease includes terms governing commitment to the people of Delaware, Dole’s usage of the Port and the longshoremen, our employees, commitments by the DSPC, such as vendors and customers,” said Stuart increasing the number of cranes and Jablon, vice president and general other upgrades to the Dole leasehold. The Beacon 13 Spring 2014

Local CBP Client Rep Retires

Members of the port community convened in Olde City, Philadelphia to bid Jim Stahl cogratulations on his retirement. The Exchange was on hand to help send him off. (l-r) Laura Miller, CBP Client Rep Eileen Johnson, Darleen Michalak, Jim Stahl (back), retired Client Rep Joe Heath (front), Michael Fink, and Paul Myhre.

Philadelphia CBP Client Rep- during his tenure as Client Representative resentative James Stahl retired in assigned to TRACS. His hard work is December after serving 40 years of much appreciated by the staff of the federal employment. Jim’s impressive Exchange and the many users of Maritime career with the federal government began On-Line he has assisted. in 1974 with active duty in the U.S. Army, Because of his long-time support 5th Special Forces Group (Airborne). and in-depth knowledge of the various After his 1978 discharge, Jim secured a CBP systems, Jim served as an ACE position with U.S. Customs and for the (Automated Commercial Environment) next ten years worked as an Entry Officer Ambassador. In this role, he familiarized and Import Specialist in Buffalo, New York. CBP programmers with operations and the In 1988, he transferred to Philadelphia as legacy systems so that they could more a client representative specializing in the effectively program the new system. Jim Automated Broker Interface, Automated was also the Exchange’s primary liaison Manifest System and Automated Export through the transition to ACE from the System. At the time, Philadelphia was legacy Automated Commercial System one of only seven Client Representative and his assistance helped facilitate a offices in the U.S. smooth migration. The staff of the Maritime Exchange, Jim never gave up his military has worked closely with Jim and the other dedication after his stint in the Army, and talented client reps for over 20 years subsequently served in the U.S. Navy, to support electronic cargo manifest U.S. Air Force and U.S. Coast Guard processing though the Exchange’s Reserves over the years. TRACS system. At a recent event, Jim We wish Jim the very best of luck, acknowledged the very professional health and happiness during his well- relationship he enjoyed with the Exchange deserved retirement! The Beacon 14 Spring 2014 Editorial Offshore Wind Farms: Largely Cyber Threats Deserve Forgotten, But Not Gone Equal Attention in the In 2010-2011 mariners in the mid-Atlantic region and their trade associations spent a great deal of their time thinking about wind energy. Over a period Maritime Realm several months, the then Bureau of Ocean Energy Management, Regulation and Enforcement published a series of proposals for potential lease areas off By: Bethann Rooney the coasts of New Jersey, Delaware and Maryland that would be auctioned off Manager, Port Security to energy providers for the development of wind turbine farms. Port Authority of New York & New Jersey It was quite clear that the agency, which has since dropped Regulation and Over 90% of global trade moves by and aware of their environment so Enforcement from its name and is now known by a more sleek BOEM, lacked ship through more than 360 ports in the as to observe and report suspicious the expertise to modify proposed wind energy areas to address navigational United States. As a result, the maritime activity. In order to stem the tide of safety issues. industry is an economic engine for the complacency, it is important to share But after a series of public comment periods and public meetings, the nation and the local regions that host information on the latest tactics and proposed wind energy areas have been modified. In some cases dramatically ports, creating jobs and generating trends and to involve workers in on- revenue. Protecting our ports and the so. going drills, exercises and training. commerce that moves through them is The MTS is a target rich We would be remiss here if we didn’t give a shout out to the U.S. Coast critical to both our national economy Guard for so admirably representing the interests of the maritime community in and national security. environment faced with a broad range its conversations with BOEM during this process. First, RADM Steven Ratti, In the twelve years since 9/11, the of threats. However, according to Coast Guard 5th District Commander, and his staff have been instrumental in men and women of port authorities, the RAND Database of Worldwide Terrorism Incidents, maritime terrorist providing critical information about the potential navigation hazards posed by vessel and terminal operators and numerous port stakeholders have attacks worldwide have accounted wind farms in the proposed lease area configurations. In addition, the Coast worked tirelessly with various federal, for less than 1% of all incidents since Guard undertook to conduct an Atlantic Coast Port Access Routes (ACPARS) state and local agencies to protect 1969. Our concern however must study. This would provide specific information on volumes and patterns our ports and improve the security of not be limited to kinetic or physical of ship traffic along the eastern seaboard, which BOEM could use to make the nation’s Maritime Transportation attacks but equal effort and investment informed decisions about potential wind energy areas. System (MTS). The result of this must be made to mitigate the threat of Although the ACPARS is not yet final, it did contain interim navigational dedication and cooperation is evident non-kinetic events. In April 2013, the safety recommendations that BOEM should incorporate into existing areas. in the reduction of cargo thefts, security Director of National Intelligence James incidents and overall improvement of Clapper said “Cyber attacks and cyber In Delaware, the issue lost steam when the federal government discontinued safety and security of our ports. Yet, espionage pose a greater potential its subsidy program for these types of projects, and interest from potential as we enter a new year, it is important bidders diminished greatly. to reflect not only on where we have danger to US national security than Al Qaeda and other militants that have This is not the case, however, in Maryland. been and what we have achieved, but dominated America’s global focus In December of last year, BOEM published its third Proposed Sale Notice at what lies ahead. since September 11, 2001.” for the sale of commercial wind energy leases on the Outer Continental Shelf Billions of dollars have been spent on traditional port security measures. Cybersecurity is a rapidly growing (OCS) off the coast of Maryland. While the lease area is now much smaller For example, The Port Authority of challenge that all ports now face. The than that originally proposed, it appears BOEM has included in the proposed New York and New Jersey alone has adversaries range from high school wind energy area blocks that the Coast Guard has already advised BOEM spent over $200 million on port security aged hackers to organized crime should not be considered for development for navigational safety reasons. since 9/11. While these investments and state actors seeking to exploit This latest proposal includes an area situated directly adjacent to the are often referred to as “gates, vulnerabilities in our nation’s critical southeastern tip of the traffic separate scheme into Delaware Bay. Coast guns and guards” they also include infrastructure. Many of the systems surveillance systems, command Guard had deemed this area as “red,” or not to be developed, in view of the and technologies installed to address centers, access control systems, law kinetic threats in ports since 9/11 potential hazards which might be created. enforcement and emergency response are also a potential source of cyber In addition, in this iteration, the wind energy area as proposed presents vessels, underwater detection devices vulnerabilities. While there are a new set of challenges, particularly for tug and barge operators, in that and more. Many of these technologies currently no cyber security standards development of the southeastern tip of the area would push tug and barge units are beginning to reach the end of their or regulations in the maritime industry, almost 10 nm farther offshore into deeper and rougher water. These vessels useful life and will be upgraded or replaced in the coming years. The there is a voluntary framework under would also be forced into the flow of the high volume deep draft oceangoing greatest challenge is to integrate a development and the Department of vessel traffic departing and entering Delaware Bay and operating in coastwise myriad of awareness, detection and Homeland Security provides a number trade. As we know, making changes to movement patterns of one type of deterrence systems that are owned by a of free resources to assist in enhancing vessel can cause problems for others. multitude of public and private entities cyber security. Cyber vulnerabilities Admiral Ratti has submitted an alternative routing scenario for the in each port to ensure accurate, timely will be a major consideration in Maryland wind energy area that would “address a majority of the navigational and dynamic decision making and all future port security technology response. Effective and transparent investments. concerns while still supporting two utility scale projects,” of even greater size partnerships will remain vital to port than currently supported by Maryland’s Offshore Renewable Energy Credits. Predictability is critical in every security. component of global trade. That Both the maritime industry and the Coast Guard have expressed an interest Perhaps the most essential tool predictability and certainty not only in working collaboratively with BOEM and the energy industry to identify in protecting our ports is continued engagement and investment in our comes from efficiency in the maritime mutually satisfactory solutions toward ocean spatial planning. The Coast industry but also from the security Guard’s latest proposal appears to more than amply meet that goal. human capital. All maritime personnel from ships’ captains and port directors and safety throughout. Dynamic We trust that BOEM recognizes that the Coast Guard knows navigational to deckhands and longshoremen vigilance and creative use of resources planning and safety and will honor the Coast Guard’s recommendations to are a force multiplier and a critical will allow us to continue to address prevent a disaster at sea that would be catastrophic to the marine environment component of effective port security. the challenges we currently face and and to the maritime industry. They must each remain vigilant anticipate the needs for the future.

The Maritime Exchange encourages readers of The Beacon to comment and give us your thoughts on any MARITIME EXCHANGE article we have published or other maritime-related issues. for the Delaware River and Bay Please send us your “Letters to the Editor” Via email to John Reynolds, Chairman [email protected] Uwe Schulz, Vice Chairman Via mail to: Dennis Rochford, President Maritime Exchange Lisa B. Himber, Vice President Attn: Beacon Editor A. Robert Degen, Esq., Secretary/Solicitor 240 Cherry Street, Philadelphia, PA 19106 Dorothy Mather Ix, Treasurer The Beacon 15 Spring 2014

Roberts Honored for Meritorious Service Outgoing Chairman of the Mariners’ improving its safety, efficiency and capacity Advisory Committee Capt. Stephen to add to the economic and cultural vitality A. Roberts received the prestigious of the region. I’m incredibly grateful for the Meritorious Public Service Award from the time and energy he has devoted to the U.S. Coast Guard for leadership of the MAC, and for his professionalism and wise nation’s oldest harbor safety committee. counsel.” The presentation took place at the Capt. Ward Guilday, President of the December MAC meeting, the last Roberts Pilots’ Association, echoed Capt. Moore’s presided over as chairman before turning sentiments. “Since its inception in 1964, the reins over to his successor, Capt. MAC members have worked exceptionally Jonathan Kemmerley. well together, and we’ve achieved a unity “I am overwhelmed by this honor,” of purpose that is unseen in many other Roberts said. “Between the wind farm areas. Captain Roberts’ distinguished issues, the AC PARS study, PORTS recognition by the U.S. Coast Guard is funding, two hurricanes, and the web page further testament to the selfless service redesign, we’ve certainly had a lot on our he has provided fostering communication plate. But I have really enjoyed facing the among the port community as a means of challenges during my time as chairman of achieving marine safety and prosperity on the MAC.” the Delaware River. Under his leadership, Roberts was cited for “extraordinary the MAC has remained the shining service in the performance of his duties” beacon of success among harbor safety as MAC chairman. The Meritorious Public committees nationwide.” Service Award is the second-highest public service award given by the Coast No rest for the weary Guard and recognizes unusual courage Though Roberts is back out on the river in advancing a Coast Guard mission, more than he had been while chairing the substantial contribution to the Coast Guard MAC, he has continued the work necessary that produced tangible results, or specific to organize the 2014 joint Harbor Safety/ individual accomplishments that provide Area Maritime Security Committee unique benefits to the public. conference. “This year marks the 50th “I’ve served in seven ports in six anniversary of the MAC,” he said, “and we different Coast Guard Districts,” said really want to showcase our committee and Coast Guard Captain of the Port Kathy this port region.” Moore. “The MAC is, hands down, the The event will take place at the Hyatt most effective, collaborative harbor safety at Penn’s Landing on August 25-27, and committee I’ve encountered. Captain the organizing committee is busy finalizing Roberts’ leadership has ensured the MAC the details in advance of opening up continues to be a place where we can registrations in the coming weeks. Stay address the challenges of our diverse and tuned for more information, or contact evolving maritime transportation system, Roberts at [email protected]. The Beacon 16 Spring 2014

Welcome Aboard Calendar of Events Champion Service/CXI Gellert Scali Busenkell & Brown LLC 02/18/14 Philadelphia Regional Port Authority Board Meeting 1 Eves Drive The Curtis Center, Suite 280 South Marlton, NJ 08053 601 Walnut Street 02/19/14 DRPA/PATCO Board Meetings 856-225-1051 Philadelphia, PA 19106 Seamen’s Church Institute Seafarers’ Environmental Education www.chmpn.com 215-238-0010 Workshop, SCI, Philadelphia, PA [email protected] Contact Ronnie Barlow: 215-940-9900 x 106 or [email protected] CSC Sugar, LLC www.gsbblaw.com 200 Rock Run 03/06/14 World Trade Center of Greater Philadelphia & the LeBow College of Fairless Hills, PA 19030 Hepaco React LLC Business, Drexel University Annual Global Business Conference 215-486-2208 716 Jersey Avenue Visit: www.wtcgp.org [email protected] Gloucester City, NJ 08030 www.cscsugar.com 800-326-2439 03/07/14 Port of Wilmington Maritime Society Quarterly Luncheon [email protected] Chase Center on the Riverfront, Wilmington, DE Delaware River Harbor Pilots www.hepaco.com Contact [email protected] or 2253 Boyd Road visit www.portofwilmingtonmaritimesociety.com Huntington Valley, PA 19906 Philadelphia Energy Solutions 03/11/14 Tri-State Maritime Safety Association Board Meeting 908-902-8613 Refining & Marketing LLC [email protected] 1735 Market Street 03/12/14 Maritime Exchange Board Meeting and Annual Election Philadelphia, PA 19103 03/18/14 Seamen’s Center of Wilmington Board Meeting 215-977-3000 www.pes-companies.com Philadelphia Regional Port Authority Board Meeting 03/19/14 DRPA/PATCO Board Meetings 03/26/14 World Trade Association of Philadelphia Annual Fundraiser for Autism Speaks Cescaphe Ballroom, Philadelphia, PA Contact Deborah Ingravallo 856-642-3957 or [email protected] 04/04/14 Seamen’s Church Institute Annual Spirit of the Port Award Luncheon Sheet Metal Workers’ Union Hall, Philadelphia, PA Contact Ronnie Barlow: 215-940-9900 x 106 or [email protected] 04/09/14 Maritime Exchange Executive Committee Meeting World Trade Center of Greater Philadelphia Export Finance Workshop Visit www.wtcgp.org 04/15/14 CBP Forum with Richard F. DiNucci, Acting Assistant Commissioner for the Office of International Trade Contact Deborah Ingravallo 856-642-3957 or [email protected] Philadelphia Regional Port Authority Board Meeting 04/16/14 DRPA/PATCO Board Meetings 05/02/14 Area Maritime Security Committee Managing Board Meeting 05/13/14 Tri-State Maritime Safety Association Board Meeting