PRSRT STD U.S. POSTAGE PAID WILMINGTON, DE PERMIT NO. 1635 THE MARITIME EXCHANGE 240 Cherry Street , PA 19106 BEACONSummer 2015 ADDRESS SERVICE REQUESTED Volume 25, No. 2 http://www.maritimedelriv.com w [email protected] Supporting the River Cold Storage Task Force for 2015. Thank you!

The Port of Philadelphia: The East Coast’s Interview with resurgent energy hub By: Jeff Shields, Communications Manager, Sunoco Logistics Partners L.P. Congressman The Mariner East pipelines will move a total of 345,000 barrels a day of natural gas liquids (such as Robert Brady propane, ethane, and butane) from the Marcellus and Utica Shale areas to Marcus Hook. The former refin- ery, built in 1902, is ideal as an industrial processing and shipping hub due to its industrial capacity, in- cluding its safe and well-established marine facilities, full-service docks with trained on-shore and maritime staff, and an existing industrial base and infrastruc- ture. Currently, there are approximately 150 employ- ees at MHIC, up from less than 50 when the refinery was idled in 2011. MHIC is equipped with dock facilities for trucks, LPG Gaschem Pacific, 505’ 107,000 bbls of propane. One of trains, ships and barges and can receive and deliver the smaller “handsize” vessels coming to Marcus Hook Indus- products to numerous third-party pipelines. The in- trial Complex. Democrat Robert A. “Bob” Brady is the frastructure at MHIC provides access to various mar- U.S. Representative for Pennsylvania’s The Port of Philadelphia’s return to its roots as an kets, including Pennsylvania, New York and northern 1st Congressional district, serving since energy hub has officially begun with the advent of Su- 1998. He is the ranking Democrat on the terminals via pipelines, and , Committee on House Administration and noco Logistics’ Mariner East pipeline projects, which New England, Europe, and other overseas export has been a staunch supporter of the port offer development of Southeast Pennsylvania’s manu- markets via ship. industry. We asked the Congressman to facturing economy with the natural resources of the share with us a little of the history involved Mariner East 1 is a 300-mile underground pipeline during his years of support for our regional Marcellus and Utica Shales in western Pennsylvania, project to transport 70,000 barrels a day of liquid pro- maritime community. West Virginia and eastern Ohio. pane and ethane from western Pennsylvania. Upon ar- In December of 2014, Sunoco Logistics commis- rival at the Marcus Hook facility, the products will be Q: You’ve been very active in maritime sioned its Mariner East 1 pipeline, transporting pro- processed, stored, and sold to the local, regional, and activity in our region. How did you get interested in that work? pane from the Marcellus Shale to the Marcus Hook international markets. It utilizes approximately 250 Industrial Complex (MHIC), less than two months af- miles of existing 8-inch diameter steel pipeline, plus A: I appreciate the chance to speak with The Beacon. Your readers are the ter announcing a second phase. Mariner East 2 would 51 miles of new 12-inch diameter steel pipe between quadruple the capacity of the initial project. leaders of our maritime community, and Washington County and Westmoreland County. Mari- your publication is a terrific resource for Both projects, which will cost approximately $3 ner East 1, already moving propane, is scheduled to everyone who cares about the state of our billion combined, will have a $4.2 billion impact on be fully operational in the third quarter of this year, river and riverfront. the Pennsylvania economy, according to an analysis transporting both ethane and propane. I was actually working on maritime issues before I was elected to Congress. for Sunoco Logistics done by Econsult Solutions of Mariner East 2 (also called the Pennsylvania Pipe- Philadelphia. The combined projects will support 300- Two of my close friends, the late Lou line Project) is a planned $2.5 billion new under- Blackwell and Rep. Bill Keller, were both 400 permanent jobs and 15,000 jobs a year over a two- longshoremen, and they took me around continued on page 11 year construction period, according to Econsult. the ports early on. Talking to them about the jobs created by port operations made it clear that we all have to do everything we can to grow those operations. I’m a Rochford named WTA “Person of the Year” former member of the Port Authority’s board. So I was able to The Beacon is particularly for his ongoing dedication to the get a bird’s eye view of the importance pleased to announce that the World port . . . we see him as a champion of maritime activities. All that shipping Trade Association of Philadelphia and recognize his role in pushing activity passes under DRPA’s bridges, has named Exchange forward the dredging project that and a lot of the resulting trucking activity Dennis Rochford as its 2015 Person is so important to the members of passes over those bridges. So, you can’t of the Year. the port community,” said Clayton help but focus on the impact of maritime The award recognizes an indi- Manthorp, WTA president. trade when you’re on that board. vidual who consistently strives to “It is a distinct privilege to be Q: It’s said that dredging the Delaware improve the port and its business cli- recognized by the World Trade As- River is the most important public mate. The WTA selected Rochford sociation,” Rochford said. “This is works project in the region’s modern for his long-standing and staunch meaningful not only to me and to history. How did you get involved in advocacy of the 45-foot Main Chan- the Maritime Exchange, but it also the fight to move that project? Maritime Exchange President Dennis nel Deeping project, now nearing underscores how important deep- Rochford will receive the Person of the completion after decades of activity. ening the channel is to this port re- Year award at the World Trade Associa- “We are excited to honor Den- gion.” continued on page 7 tion Annual Banquet on September 30. nis Rochford as our man of the year The Beacon 2 Summer 2015

Energy a major theme for Del. River ports

duction of gasoline, diesel and other fuels – in- include efficiencies and the lack thereof in ex- crease by up to 70% compared to the fourth pected and new distribution patterns. quarter of 2014. Notable global leaders representing the Delta Airlines, which acquired the once- energy, government, finance, transportation, shuttered ConocoPhillips facility in Trainer and trade sectors are expected to participate. and is operating it as Monroe Energy, is also Included are the government of Canada, Apex thriving. Monroe recently posted first quarter Companies, Citi Group, Blank Rome, Drexel 2015 earnings of $86 million. This compares University/Institute for Energy and the Envi- to the $41 million it lost during the same pe- ronment, and the Federal Reserve Banks of riod in 2014. Dallas and Philadelphia. This amazing resiliency demonstrates the This conference should provide an excep- While the global energy marketplace con- ability of our port community to acclimate to tional opportunity to view energy transporta- tinues to change in far-reaching and dynam- dramatic changes in the ways that energy is tion changes occurring on the Delaware River ic ways, the Delaware River port complex is both produced and consumed throughout our with new eyes and a fresh, clear perspective. uniquely positioned to serve as one of this na- country and the world. Several factors, including the development of tion’s more innovative energy transportation A major conference scheduled to take Mariner East and the soon-to-be-completed hubs. place in Philadelphia this fall will address 45-foot channel deepening project, are pieces In a recent column, I talked about our local these themes and more. Hosted by the Glob- of the puzzle that contribute to an exciting petroleum industry’s adaptive and resilient na- al Interdependence Center, the conference, environment for our region to become a key ture. This has been more than amply evidenced titled “Energy Interdependence in the West- player as an energy and transportation center. by the creative and visionary spirit shown by ern Hemisphere,” will focus on physical and The Exchange is both sponsoring and at- business leaders and investors who worked in financial infrastructures of midstream energy tending the November 5 conference. We en- concert with labor and public officials to effect companies, new energy trade patterns, and our courage members who are interested in these necessary positive change. region’s potential to claim a vital role in the developments to join us. The end of much of that activity, as achievement of energy interdependence in the See https://www.interdependence.org/ you’ll read on page 1 of this newsetter, is the Western Hemisphere. events/browse/programs/energy-interdepen- already-successful Mariner East 1 project. Discussions are expected to center on iden- dence-western-hemisphere/ for details and Equally important has been the reopening of tifying and leveraging trade flows and net- registration information. the Delaware City Refinery, which may soon works, recognizing energy supply chains and see deliveries of crude products – used for pro- modes of transportation, and ascertaining our region’s energy assets and infrastructures, to Summer 2015 The Beacon 3

What can Exchange operations do for you? “Maritime Exchange, Scott here. the Delaware River port complex and in difficulties should be transparent to Laura Miller, Robb Reyes, and Karen How can I help you?” other regions of the U.S. and abroad. members. Scotton have a combined 71 years of Just about all of the agents, tug com- “The Exchange operations staff is “I am incredibly proud of this dedi- experience with the Exchange. panies, and many other Exchange mem- always incredibly responsive and help- cated group of professionals. They Give the operations staff a call at bers hear this every day, sometimes sev- ful, not to mention friendly and pro- are, to a person, committed to serving (215) 925-1524 to find out what the eral times a day. They know that when fessional,” said Moran Philadelphia our members in any way necessary,” Exchange can do for you. No matter they hear the always-cheerful voice of Vice President and General Manager Myhre said. He noted that collectively, when you call, someone is standing by long-time Exchange staffer Scott Ander- Nathan Hauser. “They always take the Anderson, Bill Bayard, Craig Milbury, to help. son, they will get the information they time to make sure that the membership want. is efficiently and well served to the The Maritime Exchange has been mutual benefit of our organizations.” providing vessel schedule information The operations staff functions Work underway at Broadkill Beach to the Delaware River port community from two locations. Traditional busi- for over 140 years. Exchange operations ness hours are covered out of the main staff performs this function – and many office in Philadelphia, and overnight, more – 24/7/365 to ensure members get weekend, and holiday hours from the the information they need when they Ship Reporting Tower in Lewes, Del. need it. “Many of our members and system Consisting of six full-time employ- participants don’t realize that the team ees and one part-timer, the operations operates in different locations,” said staff supplies the Exchange membership Director of Operations Paul Myhre. with vessel movement data – for today, “And our goal is to make sure it stays tomorrow and all the yesterdays going that way.” Maintaining a team’s unity back to the early 1980s. They also sup- can sometimes be challenging when port Maritime On-Line users throughout its members are spread out, but any

PennDOT launches intermodal incentive program

Under the program, PennDOT will pay $25 per container for any new At a press conference on May 15, Exchange President Dennis Rochford containers moved beyond a carrier’s (at podium) thanked Senators Tom Carper (D-DE) and Chris Coons (D-DE) previously-reported container levels. for their recent votes to bring up legislation renewing fast-track negotiating The program was established through authority, also known as Trade Promotion Authority (TPA), and extending PennDOT’s Multimodal Transporta- the Trade Adjustment Assistance (TAA) program. In recognizing Delaware’s tion Fund. Senators, Rochford said, “TPA is critical to protecting the 135,000 direct, “This new intermodal incentive indirect and induced jobs on the Delaware River, as well as the $53 billion program is an effective tool to grow in economic value throughout the states of Pennsylvania, New Jersey and our container business, and a fair one, Delaware.” as it rewards both our current custom- The press conference was held to celebrate the restoration of Broadkill ers as well as new carriers who have Beach in Milton, Del. The project is expected to extend Broadkill Beach with been considering using the port of nearly 2 million cubic yards of sand coming from the Delaware River 45’ Philadelphia,” said PRPA Executive Main Channel Deepening project. A container vessel discharges cargo at Director James T. McDermott, Jr. Joining Rochford were (l-r) Senator Coons, Senator Carper, Broadkill PRPA’s Packer Avenue Marine Terminal. PennDOT expects the new program “Mayor” Jim Bailey, and Delaware State Representative Harvey Kenton (R- Milford). The Philadelphia Regional Port Au- will attract at least 200,000 new annual container moves to the port over the thority has announced that the Penn- course of five years. sylvania Department of Transporta- PRPA hopes the cargo incentive tion is now inviting shipping lines to program will deliver big results at the participate in its new Intermodal Cargo port of Philadelphia, especially given Growth Incentive Program, designed that initial cargo figures for 2015, as to increase cargo activity. The pro- well as those for 2014, demonstrate gram, launched by Gov. Tom Wolf in an already-healthy cargo growth at the February, offers a per-container finan- port. Final cargo statistics for 2014 re- cial incentive to ocean carriers utiliz- vealed a 16 percent increase compared ing facilities in Philadelphia. to 2013, and it was the fifth consecu- tive year of double-digit cargo growth “Pennsylvania has a robust trans- at the port. This year’s performance portation system, and our ports are a indicates that the trend of growth is vital part of the movement of goods,” continuing. Gov. Wolf said. “These incentives will Rules and further details are avail- help increase activity at the port, which able from PRPA at (215) 426-2600 or will drive commerce across Pennsyl- via e-mail at marketing@philaport. vania and could create more than 1,400 com and from PennDOT at www.dot. good-paying jobs.” state.pa.us.

Welcome New Members

ADVANTECH, Inc. Curtin & Heefner LLP Falcon Express, Inc. 4092 North DuPont Highway 250 N. Pennsylvania Avenue 2250 East Church Street , DE 19901 Morrisville, PA 19067 Philadelphia, PA 19124 302-674-8405 215-736-2521 800-544-6566 www.advantech www.curtin www.falconexp.com security.net heefner.com The Beacon 4 Summer 2015

Exchange chairman honored by Cooper to take the helm at Port of Philadelphia Sector Delaware Bay in Washington, D.C., where he Maritime Society served as the deputy and later chief of the Office of Budget Develop- ment for the deputy commandant for operations. There, he helped develop the Coast Guard’s annual operations budget and worked to recapitalize the service’s surface and air assets, shore infrastructure, and command and control systems, while providing critical funding for current operations and mission sup- port. A native of Killingly, Conn., he graduated with high honors from the U. S. Coast Guard Academy in 1991 with a Bachelor of Science Capt. Benjamin Cooper, incom- degree in Management. He holds ing Commander, Sector Dela- an MBA from the Tuck School of At its Annual Dinner on April 23, 2015, the Ports of Philadelphia Maritime Society ware Bay. honored Maritime Exchange Chairman John Reynolds as its Person of the Year. Business at Dartmouth College The award recognizes outstanding achievement in the maritime industry. John and a master’s degree in national Reynolds was joined at the award dinner by his wife, Lea. Capt. Benjamin Cooper, who security and strategic studies from most recently served as deputy the Naval War College. He is also sector commander and alternate a graduate of FEMA’s National captain of the port at Coast Guard Emergency Management Executive Sector Delaware Bay, is taking the Academy. reins from outgoing Capt. Kathy Capt. Cooper is qualified as a Moore on May 22. Moore will re- permanent cutterman and surface tire after a 25-year career with the warfare officer. He is certified in ad- Coast Guard. vanced boat forces and is a type II Cooper will oversee a work- incident commander. His previous force of 750 active duty, reserve, assignments include tours in U.S. and civilian personnel and work Coast Guard Cutter “Cowslip” and with 2,500 Coast Guard Auxiliary USS “Hayler,” service as a search volunteers to execute the agency’s and rescue controller in Honolulu, missions across the three states sur- Hawaii, command of Cutter “Mon- rounding the Delaware River and hegan” in Key West, Fla., and as Bay. the chief of incident management The Delaware Bay region hosts and later response department head a diverse deepwater port complex, at Sector Delaware Bay. the nation’s fifth largest city, leads He served as a deputy incident the nation in steel, paper and per- commander and branch director ishable goods imports, and sup- for the BP/Deepwater Horizon oil ports nationally significant petro- spill disaster, overseeing response chemical and fisheries activity and efforts in Louisiana and the Gulf a large recreational boating com- of Mexico. Capt. Cooper is the re- munity. The offshore environment, cipient of three Meritorious Service bays, rivers, shorelines, and ports in Medals, three Coast Guard Com- the region are served by 13 Coast mendation Medals, the Navy Com- Guard subunits, as well as a Sector mendation Medal and several other Field Office in Atlantic City, N.J. personal and unit awards. and a Marine Safety Detachment in He and his wife, Karen, have Lewes, Del. The command includes two children, Julia and Nathaniel. six stations, two aids to navigation The Exchange congratulates teams, and five cutters. Ben Cooper as he assumes com- Previously, Cooper was assigned mand of the sector! to U.S. Coast Guard Headquarters NTSB releases “Safer Seas 2014” In April, the National Transportation Safety Board released “Safer Seas 2014: Lessons Learned from Marine Accident Investigations,” a compilation of individual accident investigation reports published in 2014. The report is organized by vessel type with links to the more detailed accident reports. The 43-page report contains a summary and the probable causes for 23 major marine accidents and features lessons learned from each of the accidents in a summary document. “Safer Seas” focuses on issues including understanding vessel control systems, passenger safety during critical maneuvers, maintenance, and crew training. The full report is available at http://www.ntsb.gov/investigations/ AccidentReports/Reports/SPC1501.pdf Summer 2015 The Beacon 5

Be safe out there! Senator Casey Supports By: Capt. Kathy Moore, Captain of the Port, Sector Delaware Bay 45’ Channel Deepening Through it all, the men and women of Coast Guard Sector Delaware Bay and its subunits have done more than just their duty and performed an out- standing service to this region. When you see them, please thank them for their service – their job is far larger today than just a mere three years ago, and there are fewer people and less money with which to serve this com- munity and this nation. I have been incredibly privileged to work in this exceptional maritime community. You are men and women of exceptional skill, inspired initia- At its annual meeting in May, the Mari- tive, and contagious collaboration. Sen. Robert Casey at the podium, with (l-r) PRPA Executive Director James T. time Exchange Board formally recognized Nowhere, in my time in ports on three McDermott, Jr., terminal operator Leo Holt, and PRPA Chairman Gerard Sweeney Capt. Moore for her service in the port. coasts and two islands, have I ever looking on, during a press conference on April 24 at Packer Avenue Marine Termi- enjoyed the level of cooperation that nal in support of the 45’ Main Channel Deepening Project. Since May of 2012, I’ve watched exists in the tri-state region. the waters of the Delaware River as So many features make this area We enjoy access to excellent mari- I am delighted to be relieved by they’ve flowed past the windows of an excellent place to find success in time infrastructure, whether it be excep- Capt. Ben Cooper, who has many Sector Delaware Bay at 1 Washing- the maritime environment. I’m going tionally capable tugs, construction and years invested serving this region. ton Avenue. It’s picturesque, and the to take a minute to highlight a few just repair yard services, and marine diving Please give him the warm welcome ships, boats, and barges that go by are to keep them in mind. and construction, all of which contrib- and invaluable ground truth you have a welcomed distraction from the ad- In no particular order, professional ute to the health and resiliency of the given me. Please also stay engaged on ministrivia of working for the federal mariners, whether they are pilots, tug infrastructure. the many issues that impact this re- government. operators, on ships or the operators of Also noteworthy is the exceptional gion, including a long-term solution In that time, we have seen signifi- Coast Guard and other agency ves- volunteerism in this community. It man- to fund PORTS®, careful decisions on cant progress on the Delaware River sels, are key to any area’s success. ifests itself in support for the seamen, in the future of the region’s and the na- deepening project, a tremendous in- And for the most part, this community the incredible work done on our various tion’s aids to navigation, make TWIC crease in domestic crude oil arriving enjoys a level of professionalism and stakeholder committees including the a true security credential or sunset it, at local refineries by rail, new facili- mature judgment that helps all of us Mariners’ Advisory Committee, Area and continue to collaborate and exer- ties taking shape, and new businesses to deal with congestion, channel ob- Committee, Area Maritime Security cise to ensure region-wide prepared- entering the region. We’ve ‘weath- structions, and other conditions. Committee, and Port Readiness Com- ness and resiliency. The years ahead ered’ a ‘superstorm,’ snow and ice in We have the Maritime Exchange, mittee, to name but a few. It also can be will see us tested, and working togeth- the river, as well as the dreaded Polar which through its exceptional infor- seen in the outstanding participation in er, we can weather every storm. Vortex! (It STILL sounds like some- mation management efforts and advo- contingency exercises around the region thing out of a comic book!!) We have cacy for the region, has contributed to where we test our plans and keep our Semper Paratus! also had our share of casualties and regional success in many ways. relationships healthy. near-misses. The Beacon 6 Summer 2015

Cybersecurity: Delaying the “when” Even the tiniest Americans using This certainly does not suggest Companies also need to look be- their Kindle Fire Kids tablets have companies should just give up, sheep- yond their perimeters. How often come to realize that at some point their ishly waiting for cybercriminals to get does a cell phone user download an devices will probably get hacked. around to taking over their networks. app only to blithely accept the condi- “It isn’t a question of if . . . it’s The Exchange is taking measures tions associated with it and the per- a question of when,” has become a to protect its network and the hun- missions it requests? mantra among IT professionals re- dreds of people and organizations With the critical nature of the Mar- sponsible for network security and that rely on it every day. Though no itime On-Line® system, the Maritime resiliency. The “it” refers to a cyber- network is 100 percent safe, the Mari- Exchange cannot afford to allow the security incident. And virtually all time Exchange continually works to introduction of malware into its net- This is a largely preventable security experts agree there will be a minimize the risks. work via employee smartphones. To threat and one the Exchange takes “when” for everyone, no matter how In April, Exchange staff deployed help minimize the risk, the Exchange seriously. Opening an infected email much network security layers are in- additional intrusion detection/pre- recently added a new security ap- attachment that makes it through stalled. vention and advanced malware pro- plication to encrypt company emails several layers of system protections When even the email of the Presi- tection software to its network. The on these devices. The software also – and they frequently do – can crip- dent of the can be work included replacing existing separates the sensitive company-re- ple an organization. Exchange staff hacked, how can private sector or- firewall hardware, modifying firewall lated information into its own secure is trained regularly to identify and ganizations expect to protect them- rules, installing new software, and re- container on the phone, isolated from avoid these and other potential cyber selves? configuring access policies. other apps. hazards. But not all security measures need Finally, organizations must keep to be hardware- or software-based. It in mind that implementing cyberse- is well known among IT profession- curity improvements is an ongoing Keefer to retire from DSPC als that most system breaches are process, not a project with an end The Exchange board and staff market place, our port team has been caused by employee error – as many date. The solutions put into place extend their hearty congratulations able to retain and grow our customer as 64% according to a recent Syman- today may not be effective to com- to Thomas Keefer upon his retire- base, achieve record tonnages, and tec study. Training employees not to bat the threats that will emerge next ment as deputy executive director for provide thousands and thousands of open attachments or click on links month, or even next week. It is an the Diamond State Port Corporation. labor hours for the men and women from unknown senders is one of the unfortunate reality, but one to which Tom is retiring in June after 13 years who so professionally move cargo most important – and least expensive everyone will have to grow accus- at the Port of Wilmington. over our docks. I’m proud to have – steps a company can take to help tomed in order to continue to do “With retirement quickly ap- been a part of that.” prevent cyber incursions. business. proaching, I feel extraordinarily for- Dennis Rochford, Maritime Ex- tunate to have served the Port of change president, noted that work- Wilmington for these past 13 years. ing with Keefer has been a pleasure. It has been a wonderful experience “While we’re sorry to see Tom go,” both professionally and personally,” Rochford said,” we wish him the very Wolf names port authority Keefer said. “In a very competitive best in his future endeavors.” commissioners Philadelphia Regional Port Authority The governor selected Gerard Sweeney, president and CEO of Brandywine Realty Trust to chair the Philadelphia Regional Port Au- thority board. “[Sweeney’s] exper- tise in economic development and market capitalization will be a tre- mendous resource for PRPA,” Wolf said. Other PRPA appointments in- clude Yassmin Gramian with Ryan N. Boyer HNTB, Robert J. Clark, Esq. of Bal- Delaware River Port Authority lard Spahr, Michael Pearson, Union Pennsylvania Gov. Tom Wolf re- Packaging, LLC, John Dougherty, cently announced his appointments of the International Brotherhood of to the Delaware River Port Author- Electrical Workers Local 98, Paul ity board of directors. Ryan N. Boy- McNichol, Esq. with McNichol, er, business manager for Laborers’ Bryrne, & Matlawski, and John District Council for Philadelphia Skoutelas, Waste Management. and Vicinity, was then elected to serve as chairman of the 16-mem- ber board that oversees operations of the bi-state DRPA. Four other new appointees were also sworn in as board members, including Elinor Haider of Veolia North America, Rohan K. Hepkins, mayor of Yeadon Borough, real es- tate developer Marian Moskowitz, and Whitney R. White, Global Insti- tute for Strategic Investment. Acting Pennsylvania Treasurer Christopher Craig, who serves ex-officio, was sworn in at the same meeting, and appointee Antonio Fiol-Silva will be sworn in at a future meeting. Gerard Sweeney Summer 2015 The Beacon 7 South Jersey Port Corporation sees continued growth The marine terminals of the South Jersey Port Corpo- Delaware River Stevedores remains a strong partner, SJPC’s future also includes the creation of thousands ration in Camden, N.J. are increasingly “chock-a-block” supporting the stevedoring and longshore work on myriad of new jobs at its marine terminals in Camden, with the with double digit increases in tonnage for the past two cargos. and it has been a key contributor in the growth of Broadway Terminal emerging as an epicenter of the glob- years. import steel. al nuclear-power industry. “We’ve seen real, sustaining growth in tonnage the SJPC and DRS developed a real-time barcode track- The state responded with $260 million in financial in- past two years, especially in steel imports for the Midwest, ing system to provide steel customers with visibility to centives to bring Holtec to Camden along with thousands and it doesn’t appear to be abating,” said SJPC Chief Ex- their cargos at every moment within a marine terminal of family-sustaining jobs. ecutive Officer Kevin Castagnola. “And the trend is con- logistics path from discharge to delivery. “This is a game-changer,” Castagnola said. “These tinuing into 2015.” Other innovations to enhance cargo operations in- are real projects with private-sector jobs including high- Steel imports led the way in 2014, with a 65% increase clude SJPC’s patented cargo carrier design to efficiently tech, high-paying engineering jobs.” over 2013 to 900,097 tons, setting a new annual tonnage receive cocoa beans from shipside and convey the cargo Holtec International, a designer and manufacturer of record. That trend accelerated in late 2014 with 124,549 directly into Camden International Commodities Termi- highly sophisticated components for the electrical and tons of steel unloaded in December, more than double nal’s warehouses. This customized carrier remains a sta- nuclear power industries, has begun construction on the steel tonnage of December of 2013. ple to increase vessel discharge production and move the the technology and manufacturing campus, projecting a For the first quarter of 2015, SJPC handled 381,891 cargo quickly to repose in the storage warehouse. It has workforce of 850 in the initial startup of 3,000 total jobs tons of import steel, exceeding the 2014 three-month helped CICT become one of the key cocoa bean ware- including 1,000 engineers by 2025. mark by 30%. The rise in steel imports reflects a grow- houses in the industry. “The Maritime Exchange is excited about the activ- ing reliance on SJPC terminals by shippers of steel from “Our future is looking even better, especially as the ity SJPC is bringing to this port region,” said Exchange Europe to the American industrial heartland. new Paulsboro Marine Terminal comes online next year President Dennis Rochford. “We congratulate the board, During 2014, the SJPC saw its overall bulk cargos to handle the growth,” Castagnola said. “We’re excited Kevin Castagnola and his team, the longshore workers, increase 47% to 1,104,521 tons with recycled metal ton- about our agreement with Holt Logistics, which will lease and local businesses who have worked so hard to make nage growing by 5% to 522,380 tons, cement tonnage and operate the new terminal.” this happen.” increasing by 13% to 371,678 tons, and salt doubling to Even before construc- 137,622 tons. Cocoa bean imports grew by 9% to 66,036, tion is completed in 2016, and the facility maintained its market share of wood prod- Holt and SJPC have signed ucts. a first customer – one of Total tonnage for 2015 through March is on pace with Russia’s largest steel pro- 2014’s continued growth, and import steel is on pace to ducers, NLMK. This busi- break the 900,000 ton mark well before the year comes ness will immediately thrust to a close. the new terminal from a The successes at the port’s Balzano and Broadway construction site into a bus- Terminals are a tribute to the many public-private part- tling port at its commence- nerships between SJPC and its tenants and port users. ment.

Q&A with Brady his budget for this project. This was the first time that any president’s budget continued from page 1 included any funding for the deepening That was a real game changer. Then, just when we thought we A: One of the first things I confronted were safe, I got a late-night call on the when I got to Congress in 1998 was the weekend prior to the budget’s release fight to fund the deepening of the main saying that the Office of Management channel of the Delaware River. Then- and Budget was going to cut the Congressman Bob Borski explained president’s funding anyway. Once how important it was to get the channel again, I called the vice president, and dredged to 45 feet. The project was he came through. We’ve also beaten authorized in the fiscal year 1992 back efforts by the Army Corps’ Water Resources Development Act, headquarters to divert our $20 million but there was no money attached to to New York. that authorization. I joined Bob in But on a positive note, we whipping votes for the fiscal year 1999 successfully worked to secure funding Energy and Water Appropriations Act, over the past few years, including in the first bill to put Federal money in the the Corps’ work plan for the upcoming funding mix. fiscal year. Q: How tough of a battle have you Q: What other maritime initiatives faced in Washington to move the have you addressed? project forward? A: I’m pretty proud of our work on our A: As you know, I represent a large rivers. We were able to secure Maritime part of the Pennsylvania riverfront, Administration loan guarantees for the from Northeast Philadelphia down Aker ship yard, which continues to be to Chester, so this fight is one I take highly successful. We’re working on personally. Beginning in the fiscal improving rail lines that serve the ports. year 2000 Energy and Water bill, one We’ve backed efforts to boost imports, of my former colleagues from across including weighing in to release the river introduced amendment after produce imports that were being held amendment in an effort to stop the up offshore by federal inspectors. I’ve dredging. I had to work my tail off to also worked tirelessly to save the Jones line up votes to beat his amendments Act, which protects the U.S. shipping and finally persuaded him in 2012 to end industry, mariners. his efforts. We also had to overcome a And I’m all in on the plan to restriction on using funds in Delaware leverage our energy resources to boost that was placed in the fiscal year 2010 exports heading down the Delaware. Energy and Water Appropriations I led the efforts to save our refineries Conference Report, and the efforts of which are key to that energy future. We some of our friends from upstate to bar can look forward to a near future that facilities in their areas from accepting includes a diverse export environment the materials dredged up from the river. of molecules and manufactured goods Fast forward to the last few years. heading down our river and out to the I went to Vice President Joe Biden, world. Our regional maritime future is who really understands this issue, and bright. I’ve enjoyed working with the enlisted his help with the White House. Maritime Exchange leadership and Thanks to Vice President Biden, members bringing it to fruition. President Obama put $20 million into The Beacon 8 Summer 2015

Exchange Board Election Results

The Maritime Exchange extends its appreciation to those members who voted in the annual election held in March. The following were elected to three-year terms:

John Brennan Penn Terminals, Inc.

John Gazzola Northeast Ship Repair

Joseph C. Hare Rhoads Marine Industries, Inc.

Robert A. Herb Terminal Shipping Company, Inc.

Don Maney Inchcape Shipping Services

Eugene Mattioni Mattioni Ltd.

George C. Murphy South River Maritime LLC

Michael Nesbitt Sunoco Logistics, Inc.

Jeffrey Parker Hamburg Süd North America, Inc.

Uwe Schulz Schulz Properties

Richard Venuti General Marine & Industrial Services, Inc.

The following officers will serve one-year terms:

John T. Reynolds Chairman

Uwe Schulz Vice Chairman

A. Robert Degen, Esq. Secretary/Solicitor

Dorothy Mather Ix Treasurer Summer 2015 The Beacon 9

140 Years Strong - Report of the Maritime Exchange board

gional port authorities and terminal operational thanks to additional fund- was also modified as necessary to operators, cargo volumes have been ing again in 2014 from the Philadel- meet Coast Guard mandates. increasing dramatically at Delaware phia Regional Port Authority, South In a joint project with the Pilots’ River ports over the last few years. It Jersey Port Corporation, and Port of Association, the Exchange relocated is clear that CBP human and techno- Wilmington, which each provided certain Very High Frequency radio logical resources remain insufficient $100,000. Efforts to acquire federal equipment and began the process of On March 11, the Maritime Ex- to meet the growing demand, and funding for PORTS operation and replacing aging VHF equipment. Ad- change held its 140th annual meet- continued Exchange activity in this maintenance costs here and through- ditional work will continue in 2015. ing, at which Chairman John Reyn- area is paramount. out the U.S. remain underway. These highlights reflect only a olds delivered the annual report for Two key Coast Guard matters re- As always, our information tech- fraction of the government affairs, in- 2014. Following is the text of the quired our attention in 2014. First nology and operations staffs focused formation technology, and operations report. was the reemergence of an issue on supporting and improving the accomplishments in 2014.

which first surfaced when the Trans- MOL system throughout the course In addition to those, our staff re- The Maritime Exchange for the portation Worker Identification Cre- of 2014. With the financial support mained engaged producing the nu- Delaware River and Bay enjoyed yet dential regulations were initially pro- of the three states, the Exchange up- another successful year in 2014. Our merous publications designed to keep mulgated – that of seafarer access to graded both the software and infra- focus on legislative and regulatory is- members informed: the monthly maritime facilities. The Coast Guard sues affecting the maritime industry structure that serves the hundreds of President’s Report, The Beacon, the proposed a regulation which would and ongoing commitment to improv- private- and public-sector port busi- Port Directory, the daily news clips, provide seafarers and a host of others ing the Maritime On-Line® network nesses, law enforcement, and first re- and Federal Register summaries are with “timely access” at no cost to the benefitted members and port custom- sponders who depend on the system all critical to the success of members, individual. Obviously, the Maritime ers alike. to fill a diverse array of information and thus to the Exchange as well. Exchange wholeheartedly supports As in past years, the 45’ Main needs. As they have for 140 years, the unfettered and no-cost access to regu- Channel Deepening project was Among those improvements, the needs of our members drive our day- lated facilities for crew members and among the key issues at the forefront Exchange completed a major upgrade to-day agenda, and 2014 saw a whirl- of Exchange activities last year. Sep- seafarer welfare organizations. in 2014 to the backend system of wind of activity. In November of last arate visits by both President Barak The second major Coast Guard MOL to ensure compatibility with the year, the Board approved a budget for Obama and Vice President Joseph initiative in which the Exchange has latest Web browsers. As this project 2015 that will allow the Exchange to Biden to our region gave voice to become involved relates to maritime included modifications to virtually continue its vital work. the importance of deepening the ship cybersecurity practices. In our view, every portion of the system, the entire Heading into 2015, our mission re- channel. this is going to become an increas- team was heavily invested in testing mains clear and unvarying: to protect Working in conjunction with the ing focus in the upcoming weeks, the system to ensure a smooth transi- and promote commerce on the Dela- Philadelphia Regional Port Author- months, and years. tion. ware River. With the ity and the regional Congressional In both of these instances, the Ex- We also launched several modifi- support of our board delegation, our efforts to secure $62.5 change took the lead for our region, cations to TRACS based on requests and membership, we million for FY16 to bring this proj- encouraged comment from stake- from the port community as well as will continue to suc- ect to fruition were rewarded in Janu- holders, and facilitated and formu- regulatory requirements. The Notice cessfully meet this ary of this year. With well over half lated responses. of Arrival/Departure on-line system mission. of the necessary dredging completed We were equally engaged in ad- and funding of $92.5 million lined up dressing two USDA/Animal and for additional work, we can anticipate Plant Health Inspection Service pro- completion of this critical project in posed rules in 2014. Issued in April, 2017. these rulemakings involved increas- Customs and Border Protection ing overtime rates and services fees as staffing and agriculture inspections well as creating new fees for fumiga- also remained high on our agenda tion and cold treatment services. With in 2014. Officials at both CBP head- the rulemakings not yet finalized, we quarters and locally are cognizant of continue to work to engage and edu- the need for additional resources, and cate policymakers on the impacts of 20 of the 2,000 additional CBP offi- these proposals. As a measure of our cers budgeted for FY14 nationwide success, it is noteworthy that 4 of the were deployed to the Delaware River 17 House members who signed on region. In addition, CBP assigned to a letter to Agriculture Secretary temporary duty personnel to our re- Vilsak supporting our position were gion to assist with increased volumes from the Delaware River region. during the Chilean fruit season. How- The Physical Oceanographic Real- ever, thanks to the efforts of our re- Time System®, or PORTS, remains The Beacon 10 Summer 2015 Waterfronts unite for summer tall ships event

The Delaware River will host an international festival of majestic tall ships, beginning June 25 and running through June 28. This unique event will bring more than a dozen majestic international and domestic tall ships up the Delaware River for the Tall Ships® Philadelphia-Camden event: “Where America Set Sail.” The waterfronts of Philadelphia and Camden are the perfect venue for the many festival attractions. The event Philadelphia’s official tall ship, “,” was built in 1901 in the shipyard of J. M. will afford visitors the rare chance to Mendes in Setubal, Portugal to fish the catch a glimpse, step aboard, and even Grand Banks off Newfoundland. set sail on some of the grandest ships of yore. Wooden ships with histories dating Education and children’s activities back to the 1780s will be available to are a large part of the activities. For tour and sail. Tall ships bring an air of those interested in learning about mari- history – something many have neither time and waterfront history, there will seen nor experienced – and they show be glass blowing, blacksmithing, can- how people lived in the past and how non demonstrations, authentic priva- our ancestors traveled. teer encampment, sword fighting with This event will feature some of the live steel, knot tying, weapon demon- most acclaimed tall ships of the globe: strations, and sail training with real the U.S. Coast Guard “Barque Eagle,” tall ship rigging. Visitors will have the the French vessel “L’Hermione,” the opportunity to learn about the visiting Portuguese vessel “Sagres,” the Span- ships and their respective ports, their ish galleon “El Galeón Andalucía,” the historic role in commerce, what it takes Canadian “Barque Picton Castle,” and to move cargo across oceans, and what Philadelphia’s own official tall ship, life aboard a ship is like for sailors and “Gazela.” crew. Kicking off the event will be a Tickets range in price from $12 for Grand Parade of Sail with all ships a single-day tour pass, up to $150 for a sailing down the Delaware River. Dur- sailing experience with the Parade of ing the festival, most ships will be Sail. open for deck tours, and others will For more information, visit TallShips- be available for day sails on the Dela- Philadelphia.com, Facebook.com/Tall- ware. ShipsPC, and Twitter.com/TallShipsPC. Summer 2015 The Beacon 11

essential building block for plastics. Mariner East project Butane and natural gasoline can be continues to expand blended as an ingredient in gasoline. continued from page 1 Marine activity is forecasted to pick up once again, exchanging ground pipeline system of approxi- what used to be an abundance of mately 350 miles, with origins in Suezmax-sized crude vessels with Ohio, West Virginia and Pennsylva- LPG ships. The hope is to match nia. It would have an initial capac- the crude ship traffic that was lost ity of 275,000 barrels a day to carry to rail and domestic crude. Sunoco propane, ethane and butane east Logistics’ Marine Operations Man- from Ohio and West Virginia into ager, Michael Nesbitt, recently told Pennsylvania, where it would most- the Exchange that the Marcus Hook ly follow the Mariner East 1 route Industrial Complex, which currently to Marcus Hook and other locations averages about three ship visits per in the state. Mariner East 2 would month, could jump to 12 ships a serve both the Utica and Marcellus month once Mariner East 2 is com- Shale production areas and is sched- plete. uled for completion in late 2016. In addition, he said, Sunoco Lo- Natural gas liquids (NGLs) are gistics is actively exploring the ad- also known as liquefied petroleum dition of a propane processing com- gases (LPGs) and include propane, plex at Marcus Hook, which would ethane, butane and natural gasoline. mean additional investment, jobs In certain shale areas, such as west- and production of propylene and ern Pennsylvania, West Virginia and other critical feedstocks to spur the eastern Ohio, natural gas liquids are area’s petrochemical industry. found in abundance with traditional “We like to think that this is an natural gas, or methane. They are described as liquids because they are opportunity for Pennsylvanians, by moved through pipes in liquid form. a Philadelphia-based company, us- In the atmosphere these substances ing Pennsylvania-based resources to usually take the form of a gas. develop the state’s economy,” Nes- Propane is a common fuel for bitt said. heating, cooking, crop drying and Sunoco Logistics has more than motor vehicles, and can also be used 500 employees in Pennsylvania, as a basic material in the manufac- more than 2,200 nationally, and has ture of chemicals. Ethane has uses added more than 200 jobs in the as a fuel but is primarily used as the state over the last five years. The Beacon 12 Summer 2015

Let’s celebrate! Delaware River Maritime Day By: Dr. Art Sulzer, Ed.D. cuses on vendors who thrived in this area from the 19th century through the 1950s. The Executive Committee of the Also on June 9, the newly-creat- 2015 Delaware River Maritime Day ed Philadelphia Whaleboat Rowing has announced plans for its Maritime League will hold its first races of the Day 2015 Celebration. season in the Penn’s Landing Basin. National Maritime Day, which is Rowing practice takes place from 2:00- officially May 22, is celebrated around 3:30 p.m. with the races following; at the country to honor the men and wom- 5:00 p.m. the celebration will shift to en of our merchant marine who have the museum. The “Academy Cup” served alongside and in support of will be presented to this year’s win- our military since the founding of our ning maritime academy alumni boat country. crew, and medals to the winner of the “As a point of interest, Commodore first whaleboat league race. The Chapel John Barry, one of our nation’s earli- of Four Chaplains will present a gold est naval heroes, was a merchant ship medal posthumously to Dante Mattioni captain from our area,” said Edward in honor of his service to our maritime Poznek, chief executive officer of the community. This will be followed with Maritime Academy Charter School. a reception and the exhibit opening. Poznek, along with John Brady, ex- “There are many opportunities and ecutive director of the Independence levels of participation for those who Seaport Museum, and William Moran, wish to be involved as a sponsor, ven- president of the Ports of Philadelphia dor, or participant,” Poznek said. Maritime Society, comprise this year’s This year’s fundraising effort will Maritime Day Executive Committee. benefit both the Maritime Society The local Maritime Day celebra- Scholarship Fund and various mari- tion officially begins on June 9 at the time education projects for Philadel- Independence Seaport Museum with phia school children, sponsored by the the annual “POPMS Maritime Soci- Independence Seaport Museum and ety Scholarship Event.” The scholar- Maritime Academy Charter School. ship helps Philadelphia students and There will be more events celebrat- mariners advance their educations and ing Maritime Day continuing through- professional skills in the maritime in- out the summer and into the fall. dustry. The event will take place in conjunc- For additional information visit tion with the opening of a new exhibit www.portsofphilamaritimesociety.com/ at the Seaport Museum, “Hucksters, or contact delrivermaritimeday@gmail. the Tumult of Dock Street,” which fo- com. Summer 2015 The Beacon 13 Quick action saves truck driver

and the defibrillators. It took a good while, but we got him breathing again,” Davis said. Smith believes these actions saved his life. “I need to thank not only my Lord, but the quick think- ing of Al Dow and Chris Davis,” he said. “Not only did they know to Upon his recovery, Marvin Smith (center) administer CPR, but they also had returned to the Packer Avenue Marine the proper training to do it and the Terminal to thank Al Dow (left) and Chris Davis for saving his life. equipment on hand. If it wasn’t for them, I wouldn’t be here today.” It was a typical cold day in Feb- Dow said, “Hearing Marvin’s ruary when Security Supervisor voice is all the thanks I need.” Christopher Davis and Terminal Smith is also extremely thankful Manager Al Dow of Greenwich Ter- for the many people at the Packer minals were making their routine Avenue Marine Terminal who asked rounds. But the day turned out to about him, expressed their concerns, be anything other than normal when and sent their prayers. “I’ve known they responded to an on-terminal ac- these people a long time, since I’ve cident. been coming to that pier for over “Upon arrival, I saw that the man 30 years,” he said, underscoring the in the driver’s seat of a tractor ap- importance of the relationships built peared to be unconscious,” Davis within the maritime community. said. After Dow opened the driver’s After he was stabilized, the Phila- side door, he noticed the man did not delphia Fire Department transported appear to be breathing. Smith to the University of Pennsyl- Driver Marvin Smith of Polaris vania Hospital. Trucking was picking up a 40-foot With Smith in recovery, this sto- container when his heart suddenly ry has a happy ending. Though he stopped. “Al pulled him from the is still undergoing rehabilitation, he cab and laid him on the ground. We plans to go back to work as soon as immediately began several rounds his doctors give him the approval. of CPR with chest compressions The Beacon 14 Summer 2015

Farthing to retire after over 40 years at the port early days in management, there were some people who didn’t expect me to succeed. But I just got up every day and went to work, learning and ma- turing as I went along.” He grins as he recalls how quickly the skeptics changed their opinion. “Once I dem- onstrated my ability to succeed, the rest took care of itself.” Those expe- riences helped him discover his own talent and helped build his self-confi- dence. And he never looked back. Farthing particularly credits Palaima for supporting him over the years. “No one in this port does any- thing alone. And as my father said, ‘it doesn’t matter how great you are if you can’t motivate others.’ Bob has been a significant part of my motiva- tion, and he’s helped me learn to in- “In this industry, there is no option spire others.” to say ‘We can’t.’ The only question The feeling is entirely mutual. “It to ask is ‘how will we?’” is extremely unusual to see someone Those who know James “Chuck” with not only his level of talent, but Farthing will immediately recognize also the commitment and dedica- how these words characterize the tion to stay with one company for so ethic of a man who has dedicated his long,” Palaima said. “Chuck is defi- entire career to safe and efficient ves- nitely a rare find.” sel and cargo operations. Many of his port industry col- Starting as a member of ILA Lo- leagues will be surprised to learn of cal 1291 in 1974, Farthing made the Farthing’s retirement plans. Bitten transition into management in 1978 by the acting bug, he will soon begin and continued to work his way up the taking drama lessons in pursuit of his corporate ladder at Delaware River passion for the arts. He recently land- Stevedores and its predecessor agen- ed the role of ‘Bobo’ in the play “A cies. He retires on June 30, 2015 as Raisin in the Sun” at the Nardi The- vice president of operations. “The port was in my blood,” Far- ater in New Jersey. thing said, noting that he was fol- Of course, he also plans to spend lowing in the footsteps of his father, time with his two grandchildren and James “Jimmy” Farthing. “My retir- looks ahead a few years to when his ing at this time is not only for myself, wife retires from her position at the but also to pay homage to my father, Delaware River Port Authority. who retired as stevedore manager for “Nancy has been my partner for Delaware Operating Company after over 40 years. It is difficult to work spending 41 years in the industry. I’m on the river in an operational capac- somewhat duplicating his career.” ity without a strong support system,” Working in the shadow of his father, Farthing said. “She’s been my rock he said, was the springboard to his ca- and my biggest fan, as I am hers.” reer as a successful stevedore. Normally looking to avoid the Both he and his boss, DRS Presi- spotlight, Farthing did not want any dent Robert Palaima, are extremely fanfare to accompany his retirement. proud of the fact that Farthing is the But he notes that he is perfectly com- first African-American to become a fortable with a tribute article like this vice president and officer of the com- in The Beacon. “It’s like sending a pany. “In fact, Chuck was the first card to the family.” African-American to achieve this at The board and staff of the Mari- any major stevedoring company in time Exchange congratulate Chuck the United States,” Palaima said. on his long and successful career and Making his way in the maritime in- wish him fair winds as he moves into dustry was not always easy. “In those retirement. Summer 2015 The Beacon 15

SCI welcomes new staff By: Patricia Johnston, Communications Director Seamen’s Church Institute

We here at Seamen’s Church Insti- from Westminster Theological Semi- tute of Philadelphia and South Jersey nary in Philadelphia. His doctoral dis- are pleased to announce two new staff sertation explored seafarer missions members who will join us full time and proposed new ways of engaging in the coming months: The Rev. Dr. seafarers in the rapidly-changing mari- Beong Lee and Mr. Mark Patrick. time industry. Pastor Lee, ordained in the Kore- Mark Patrick is the new administra- an-American Presbyterian Church, is tive assistant replacing Douglas Cam- the new senior chaplain. He will un- panell, who has served as operations derstudy Mesfin Ghebrewaldi, who is chief for a decade. Mark is a recent contemplating retirement in the next graduate of Seton Hall University in year or so. South Orange, N.J. He brings strong Pastor Lee has been engaged in computer software skills and a deep seafarer welfare work for 24 years compassion for seafarers. He will as- through the Korean Seamen’s Mission sist Dr. Stube in the administrative of Philadelphia and the Mission to Chi- functions of SCI. nese Seamen. Both organizations have Both individuals will be outstand- worked in partnership with SCI for ing additions to our team, and we are 24 years serving seafarers who arrive looking forward to having them start in our port. He was a seafarer for four working with us in the coming months. years, serving as a second officer after They bring valuable skills, knowledge, graduating from the National Mokpo and passion for our mission that will Maritime University in Mokpo, Korea. help us continue to serve the needs of In addition to three master’s de- seafarers in the ports of Philadelphia grees, Pastor Lee holds a doctorate and South Jersey. The Beacon 16 Summer 2015 Editorial Celebrate National Maritime Day Kathy Moore on May 22 has been a true partner Though only known to a select few Americans who understand the impor- tance of the U.S. Merchant Marine, Maritime Day has a storied history. At the ceremony last year during It was on May 20, 1933 that Congress declared May 22 each year to be which Admiral Paul F. Zukunft became Commandant of the U.S. Coast Guard, National Maritime Day. he laid out three principles that would Whereas on May 22, 1819, the steamship the “Savannah” set sail guide his command: service to the na- from Savannah, Geogia, on the first successful transoceanic voy- tion, duty to people, and commitment to excellence. We applaud his view, age under steam propulsion, thus making a material contribution which complements the long-standing to the advancement of ocean transportation: Therefore be it Re- Coast Guard values of honor, respect, solved by the Senate and House of Representatives of the United and devotion to duty. States of America in Congress assembled, that May 22 of each year shall hereafter be designated and known as National Maritime These are important ethics, and they lay out a very high standard Day, and the President is authorized and requested annually to is- to meet. sue a proclamation calling upon the people of the United States to It is not an exaggeration to say that Capt. Kathy Moore not only observe such National Maritime Day by displaying the flag at their meets those principles, but she personifies them. homes or other suitable places and Government officials to display As maritime industry stakeholders are clearly aware, the Coast the flag on all Government buildings on May 22 of each year. Guard has many missions. For the most part, those missions are Though unbeknownst to those astute congressmen, the Merchant Marine shared with private-sector maritime business, such as safe navigation, a secure port, and a healthy environment. and American shipyards would become crucial to victory in World War II. Merchant ships carried troops, equipment and supplies across the ocean. Yet from time to time, actions the Coast Guard wants to take con- Merchant crewman and their shipmates of the Navy Armed Guard sailed the flict with the business goals of speedy and cost-effective commerce. Atlantic, the Pacific, through the Indian Oceans, and across the Arctic Circle When that happens, reasonable thinking must prevail. to Murmansk. They carried nearly 270 billion long tons of cargo – the av- Kathy Moore has made the tough decisions when necessary. That’s erage rate of delivery in 1945 was 17 million pounds of cargo every hour. certainly a unique ability among people in general, but not neces- The Merchant Marine were among the first to go to war, and merchant ships sarily so among those who have risen to leadership positions. Capt. were being captured and sunk even before the United States officially entered Moore has taken it a great deal further. Here are just two examples. the war. And they were the last to return; ships sailed by merchant mariners We very much appreciated the calm but authoritative demeanor brought the GIs home. she displayed as she led us through Hurricane Sandy. It was dangerous work. Nearly one in 30 of those who served in the Mer- chant Marine did not return. More than 6,000 American seafarers and more And when ice built up throughout the waterway this past winter than 700 U.S. merchant ships fell to enemy action. Only the Marines suffered and Coast Guard assets were at less than full complement, closure of the port was, unfortunately, looking all too probable. Yet Capt. Moore a higher casualty rate, and no other branch of the armed forces suffered a and her staff worked closely with industry to keep commerce moving higher death rate. while still ensuring the safety of navigation. She regularly and most In spite of their service and their sacrifices, merchant mariners were not capably served multiple masters and met multiple – and sometimes accorded veterans’ benefits and for many years were excluded from celebra- conflicting – priorities. tions of Veterans’ Day, Memorial Day, and other days recognizing members of the armed forces. The bottom line: Kathy Moore created an atmosphere in which in- dustry and the Coast Guard can achieve consensus through construc- In 1970, the Maritime Administration sponsored an observance of Mari- tive dialogue. She engaged her constituents as equal partners. She has time Day, a solemn ceremony honoring veterans of the Merchant Marine and given respect as much as she has earned respect. those who gave their lives in service to the United States. That observance has been held every year since. Thus, her orders as Captain of the Port do not seem as much like After a long court battle, Merchant Marine veterans were accorded some edicts as they do the end result of thoughtful evaluation of the circum- rights and privileges of veterans in 1988. Ten years later, in 1998, in recog- stances and open communication with affected parties. nizing veterans from the Persian Gulf War, Congress included more rights Even among leaders, this is a rare gift indeed. and privileges for veterans of the Merchant Marine. Most Recent Accomplishments The U.S. Navy Memorial in Washington, D.C., dedicated in 1987, inte- grates recognition of the U.S. Merchant Marine. The flags at the entrance Under Kathy Moore’s leadership, the Sector Delaware Bay Area of the World War II Memorial include the seals of five services: the Army, Maritime Security Committee was just named as the 2014 AMSC of the Navy, the Marine Corps, the Coast Guard, the Army Air Corps, and the the Year. Bravo Zulu! United States Merchant Marine. In May, the Women’s International Trade Association announced its selection of Capt. Moore as its Woman of the Year for 2015. This Please join the Exchange in taking time this year to remember and honor is definitely going out on a high note. our Merchant Marine. On behalf of Maritime Exchange members, board and staff, The Beacon extends its congratulations to Capt. Moore on her many suc- The Beacon is the official newsletter of the Maritime Exchange for the cesses and best wishes upon her retirement after 25 years of dedicated Delaware River and Bay. The Exchange encourages its readers to sub- service to the U.S. Coast Guard. mit letters to the editor at any time in response to articles that appear in The Beacon or to address other topics of interest to the port community. Please direct any correspondence, comments, or inquiries regarding the contents of this newsletter to: MARITIME EXCHANGE for the Delaware River and Bay Email: [email protected] John Reynolds, Chairman Mail: Uwe Schulz, Vice Chairman Maritime Exchange Dennis Rochford, President Attn: Beacon Editor Lisa B. Himber, Vice President 240 Cherry Street A. Robert Degen, Esq., Secretary/Solicitor Philadelphia, PA 19106 Dorothy Mather Ix, Treasurer Summer 2015 The Beacon 17

Hiring motor carriers? Don’t get caught between a rock and a hard place.

and no knowledge of any accidents or equipment failures, you may be able to mount a successful defense to the By: M. Elisa Reeves, Esq. charge of negligent hiring. Be cautious when hiring a new car- rier, though. If it has changed its name Are you involved with shipping car- communication with driver, speed, time and obtained new federal authorities, go? If so, you need to move the cargo of delivery, etc.). this can be a red flag. We also recom- from the marine terminal to a warehouse The best way to avoid this type of lia- mend that you formally insist that your by truck. You may work for an ocean bility is to distance yourself from the de- load not be “double brokered” – the car- carrier, or perhaps you are the consign- tails of the transportation – don’t instruct go must be carried under the selected ee or shipper of cargo. You might be a the driver directly, suggest the route, or carriers’ authority and not brokered to a broker or forwarder who handles the insist on particular delivery times. Just sub-contractor without your knowledge. logistics of getting the cargo from one hire the trucking company to make the In conclusion, any company hiring place to another. No matter your role in delivery from Point A to Point B and step a motor carrier needs to balance two the shipping chain, eventually the cargo back. Any updates on cargo ETA should competing interests. On the one hand, table carriers who are adequately in- will be hauled over the road by a com- come from the trucking company – do you want to distance yourself from the sured and capitalized. Most importantly, mercial motor carrier. not communicate with the driver directly. truck drivers’ and the motor carriers’ op- make sure that your company has ad- In every industry, there is the poten- Note that it is not the actual exercise of erations. On the other, you need to “vet” equate insurance to respond to any tial for accidents. Cars, minivans and control but the right to control that gov- the carrier to make sure it is hiring com- wrongful death and injury claims. Final- SUVs do not fare well in accidents with erns the relationship. petent drivers who follow federal safety ly, have your procedures and contracts tractor-trailers, due to the great weight Absent the right to control the ac- regulations. reviewed by a transportation attorney discrepancy. Even at 40-50 mph, the tions of the driver, you have a solid de- Unless you are careful, you may find before you find your company between occupants of a passenger vehicle rarely fense to any claim that you are vicari- yourself between the proverbial rock that rock and a hard place. survive the impact, and other motorists ously liable for the trucker’s negligence. and a hard place. If you delve too deep- Lisa Reeves is a partner in the may be killed or injured in the chain re- Unfortunately, you may still face the ly into the safe driving aspect of the car- law firm of Reeves McEwing LLP. action which follows. Litigation ensues argument that you negligently selected rier’s business, you could be subjected In addition to her maritime law against the motor carrier and driver, the motor carrier and did not make sure to vicarious liability. If you don’t exercise practice, Lisa represents forwarders, however the trucking company may not that the trucking company had a good sufficient due diligence, you could be li- NVOCCs, ocean carriers, intermo- have sufficient assets or insurance to safety record, properly trained drivers, able for negligent selection. A delicate dal equipment providers and others cover the claims, which can run into the and kept equipment in good condition. balance must be maintained. in commercial disputes as well as wrongful death and personal injury millions of dollars. The mandatory limit There are many resources available Negligent Hiring/Selection (The Hard claims. Contact her at reeves@ of $750,000 per accident is woefully in- to help you develop a comprehensive Place) lawofsea.com. adequate to compensate those injured carrier management system. Use repu- This cause of action is governed by or killed in the accident. state law, and is summarized below: Faced with this problem, plaintiff’s An action for negligent hiring or re- attorneys will look for other deep pock- tention of an employee requires the ets to sue, and they have found cre- plaintiff to plead and prove (1) that the ative ways to hold shippers, brokers employer knew or should have known and other third parties responsible. The that the employee had a particular unfit- predominant theories of liability are vi- ness for the position so as to create a carious liability and negligent hiring or danger of harm to third persons; (2) that selection. such particular unfitness was known or Vicarious Liability (The Rock) should have been known at the time of Corporations are liable for the neg- the employee’s hiring or retention; and ligence of their employees and agents (3) that this particular unfitness proxi- but are not generally liable for the ac- mately caused the plaintiff’s injury. tions of independent contractors. In re- In other words, liability may be based cent decades, the liability of motor car- on the selection of an unsafe or incom- riers has been extended to drivers who petent motor carrier. The key issue is were not on the payroll and who often due diligence – did you know, or have used their own trucks to move freight reason to know, that the motor carrier for the motor carriers. This was the re- had a poor safety record or a history of sult of federal legislation which sought accidents? to prevent trucking companies from It is now possible to see a carrier’s avoiding liability while transporting cus- safety and/or accident record via the tomers’ cargos. In other words, trucking Department of Transportation’s Web companies are vicariously liable for the site. Some courts have held that there conduct of their drivers, even if they are is a duty to investigate the safety re- independent contractors. cords of the motor carrier and to choose Vicarious liability for the negligence a “safe” carrier for the inland transporta- of a truck driver usually ended with the tion. As a result, an entire industry has motor carrier. In the last decade, how- developed, whereby a vendor will regu- ever, it has been expanded to include larly check the safety scores (as well as others in the transportation chain, at insurance, etc.) for a monthly subscrip- least to the extent that they have the tion fee and can produce hard evidence right to control the transportation. This of due diligence for use in court. control must extend beyond the right to Arguably, due diligence can also be dictate the end result (move cargo from established by your relationship with point A to point B), to the right to control the carrier. If you have a long history the way in which the job is done (route, of shipments with a particular carrier The Beacon 18 Summer 2015

Notes & News Calendar of Events Capes Shipping Agencies announced that Henrik G. Nielsen has joined its team as general manager. Henrik brings over sev- 05/30/15 Seamen's Center of Wilmington Tug Boat Cruise enteen years of diverse maritime experience to Capes, including Port of Wilmington, DE. Call 302-575-1300 vessel operations, technical, agency management, chartering, and 06/04/15 Women’s International Trade Association port captaincy. He will be responsible for the management and de- Annual Woman of the Year Dinner velopment of its Baltimore, Md. and Wilmington, Del. offices. Wel- Corinthian Yacht Club, Essington, Pa. come aboard, Henrik! Contact [email protected] or 302-547-3405 06/10/15 Maritime Exchange Executive Committee Meeting Lt. Col. Andrew Yoder, deputy commander of the U.S. Army Traffic Club of Philadelphia Summer Social Corps of Engineers Philadelphia District, was promoted during Waterworks Restaurant a ceremony at the Liberty Bell exhibit on Independence Mall on Philadelphia, Pa. March 4. As a senior leader for the Philadelphia District, Yoder su- Contact Maureen Waddington, [email protected] pervises a staff responsible for managing water resources of the 06/16/15 Philadelphia Regional Port Authority Board Meeting Delaware River basin and the New Jersey and Delaware coasts, building facilities for the Army and Air Force, and providing engi- 06/17/15 DRPA/PATCO Board Meeting neering and environmental services for other agencies. Congratu- 06/22/15 World Trade Association of Philadelphia lations! Annual Golf Outing Union League Club of Philadelphia Contact Deborah Ingravallo, 856-642-3957 or [email protected] 07/08/15 Maritime Exchange Board Meeting 07/14/15 Tri-State Maritime Safety Association Board Meeting 07/15/15 DRPA/PATCO Board Meeting 07/21/15 Seamen’s Center of Wilmington Board Meeting Philadelphia Regional Port Authority Board Meeting 08/07/15 Area Maritime Security Committee Managing Board Meeting 08/12/15 Maritime Exchange Executive Committee Meeting 08/18/15 Philadelphia Regional Port Authority Board Meeting 08/19/15 DRPA/PATCO Board Meeting 08/21/15 Area Maritime Security Committee Meeting

For a complete schedule and event details, visit www.maritimedelriv.com