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PERMIT NO. 1635 THE MARITIME EXCHANGE Serving Delaware, and Pennsylvania 240 Cherry Street BEACON Philadelphia, PA 19106 Winter 2013 ADDRESS SERVICE REQUESTED Volume 23, No 4 http://www.maritimedelriv.com w [email protected] Oil Industry on the : Interview With A Changing Landscape Kelly Anderson Just when Don Glenn, sales director for one of the in size and about 40 percent in number – from a high Philadelphia Water Department largest carriers on the Delaware River, thought of 1,043 arrivals in 2006 to 631 in 2012. Tankers rep- Early Warning System business had tanked for good, he was swamped with resent about 30 percent of all ship traffic. customers. Rail cars, on the other hand are in such hot demand “We’re busy. Very busy, thanks to the development that NuStar Asphalt LLC expects to wait two years be- in domestic crude. Seems like overnight there has been fore getting its order, said Rod Pullen, director of op- an explosion in rail lines and a shortage of on erations for the Paulsboro plant. NuStar began rail the East Coast,” said Glenn of Vane Brothers. “It’s been service in 2011 from Western Canada to third-party ter- a game changer and a great time to be in the barge busi- minals in Baltimore. From there, crude is barged to ness.” Paulsboro. Not a bad time for the rail business either. About 35 percent of the company’s crude today ar- North American crude production – locked mid- rives by rail and barge. That number will grow sub- continent in Western Pennsylvania, North Dakota and stantially when NuStar completes a rail upgrade to Canada – is projected to increase 53 percent by 2020. handle a 100-car train, said Pullen. The new order is focused on moving it East via a com- PBF Energy, Inc., which purchased the former bination of pipeline, rail, truck and barge to the Valero refinery in Paulsboro and Delaware City, is Delaware River, reversing trends that stoked the region using a fleet of 2,400 cars to haul about 60,000 barrels and the maritime time industry for decades. per day of light Bakken crude and 35,000 barrels per Tankers on the river hauling imported crude and day of heavy crude from Alberta, Canada to Delaware. other chemicals from around the world have declined The cost of the 1,800-mile journey from North Dakota to Delaware which takes about six days by rail is $8 to Exchange Receives $10 a barrel less than imported crude, depending on Kelly Anderson is Source Water Protection Program market conditions. By 2015, PBF expects to own or Manager with the Philadelphia Water Department. Her lease 5,900 cars. responsibilities include the development and operation of “Seafarer’s Friend” Award a major electronic notification project designed to help To date, the Parsippany-based company has in- protect the regional waterways. With a portion of the vested more than $100 million on a double–loop track project funded through the federal Security Grant at Delaware City capable of discharging crude from a Program, not only will the system serve as an invaluable 100-car-plus unit train in 14 hours. The double loop is tool in the event of an accidental or terroristic oil or reserved for light, sweet Bakken crude which is more chemical spill, it will also serve the tri-state region on a costly to refine, while heavier, sour crude is discharged daily basis protecting water quality. Ms. Anderson was from a separate rail siding. kind enough to spend some of her time providing an up- date for this issue of The Beacon. continued on page 4 Q: Can you tell us a little bit about the system? A: The Delaware Valley Early Warning System (EWS) is CAPT Kathy Moore: a computerized alert system designed to provide warn- ings about surface water contamination events in the Among the First On-Scene Schuylkill and lower Delaware River watersheds. The Five months after U.S. Moore spent 18 days on Philadelphia Water Department (PWD) began develop- Port of Wilmington Executive Director Gene Bailey (l) Coast Guard Capt. Kathy site coordinating some 250 ment of the EWS in 2002 with the objective of improving joins Joan Lyons in presenting the Seafarer’s Friend Moore arrived in Philadel- government, industry and the safety of the region’s drinking water supplies by pro- Award to Exchange President Dennis Rochford. phia to take command at contractor responders per day viding real-time surface water quality monitoring and pol- In 2004, the Seamen’s Center of Wilmington Sector , involved in the clean-up. lution event notifications to drinking water systems and Board of Directors decided to annually recognize Hurricane Sandy blew in, The two incidents illus- regulatory agencies. Startup funding was provided by the one group or individual, church, business or organi- tossing ships like toddlers trate the breadth of chal- Pennsylvania Department of Environmental Protection zation that helps the Center to greet and assist sea- on a trampoline. Though lenges to the Coast Guard’s and the Environmental Protection Agency farers. most of the maritime dam- mission which is to keep key and, in 2004, the EWS was fully deployed for authorized “This year we are thrilled to honor the Maritime age occurred north of her waterways and the people users. Exchange,” said SCW Executive Director Joan Lyons. jurisdiction, the Delaware who live and work around “As an organization and as individuals, the Exchange Bay turned into a parking them safe. The system comprises four principal components: and its employees stand united in our cause. Just lot for ships from around Moore’s jurisdiction in- about the entire staff has given some of their time Partnership: The Partnership brings together EWS stake- the world looking for a cludes two-thirds of Pennsyl- holders and includes representatives from public and pri- and expertise, from help with TWIC implementation, place to divert and hide vania, south of Shark River in vate drinking water supply systems in the coverage area, to web page design, support for the annual from the storm. Monmouth County, New Jer- fundraiser, to computer network assistance – and One month later in No- sey and all of the Delaware industries who withdraw water from the Schuylkill and anything else we need – makes them a true stand- vember 2012, an 82-car Coast, in addition to the Delaware Rivers, and government agencies involved in out in our maritime community. There is not a week freight train derailed on a Delaware River and Bay. protecting water quality. goes by that I don’t find myself grateful for their help and support.” Conrail swing bridge in “I love this port,” said Notification System: The EWS notification system pro- Exchange President Dennis Rochford said the or- Paulsboro, dropping four Moore whose last post was vides fast automated telephone alerts and email notifica- ganization is happy to be of assistance. “We know cars with vinyl chloride Corpus Christi, Texas. “It’s tions to members about water quality events. the SCW has limited staff and relies heavily on its gas, one of which was so diverse, and it is evolving. volunteers, including ship visitors, drivers and even breached, into Mantua Nothing is static here. I’ve Monitoring Network: The water monitoring network con- bookkeeping,” he said. “It’s our distinct pleasure to Creek. The accident learned from these incidents sists of on-line, real time water quality and flow monitoring be helpful in any way we can.” raised concerns about how well all the members of stations using US Geological Survey monitoring sites and The award was presented on November 12 dur- ownership and mainte- the community – including water treatment plant intakes. ing the Port of Wilmington Maritime Society annual nance of the nation’s rail dinner. bridges. continued on page 9 continued on page 13 The Beacon 2 Winter 2013

The Times They Are a Changin’…The New Energy Marketplace

of foreign crude oil each day to the seven refineries And this resiliency is important to the overall along the Delaware River. It is the port that has economic viability of our tri-state port system. The adapted to dramatic changes in how energy is both import and export of and related cargos produced and consumed throughout our country and complement the movements of all other cargos tran- the world. siting the Delaware River. From pilots and tug op- The adaptive and resilient nature of the petro- erators and other service providers to the Corps of In this leum industry operating in our port has manifested Engineers, the Coast Guard, Customs and other edition of itself in any number of ways. government agencies, petroleum cargos make a sig- The Beacon, Between 2009 and 2010, three refineries were nificant contribution to the overall strength and we have focused shuttered and another threatened to discontinue op- competitiveness of our port. on how changes in the erations. Of these four facilities, all are operational And of course, this translates into protecting and global and domestic energy marketplaces are im- today with significant investments already made creating good paying, family sustaining blue and pacting our regional port complex. Over the past and/or planned to upgrade their capabilities and en- white collar jobs. several years, we have seen oil refineries shut down hance their competitiveness in this global energy These dramatic changes in the energy market- and then reopen, a significant portion of crude oil marketplace. place have even reached to the Aker Philadelphia tanker traffic replaced by railroad tank cars, and ex- Shipyard with its contracting to build six American panded refining and export opportunities related to Two of these facilities continue to process crude oil to produce the full array of refined products, one Flag tankers, again protecting new North American crude production in the United and creating thousands of jobs throughout this re- facility is utilized to store and transfer crude and re- States and Canada and the Marcellus Shale gas ex- gion. fined product, and the fourth serves as a hub to ex- ploration across Pennsylvania. As Pennsylvania In this case times have changed rapidly and the port gas products overseas. This rebound reflects a Governor Tom Corbett pointed out in a related arti- energy and maritime industries along the Delaware cle in this issue, “[these changes in the energy sec- visionary and entrepreneurial spirit among business River have responded, survived and are poised to tor mark] the beginning of the second industrial leaders and investors, working with labor and pub- thrive once again. revolution.” lic officials that took an almost calamitous situation This is not the port of the 1980s where over 300 and turned it into a rebirth of the energy marketplace tankers transported in excess of one million barrels on the Delaware River. The Beacon 3 Winter 2013

Deep Thoughts: 2013 a Year Changing of the Guard for MAC of Progress The Mariners’ Advisory Committee government partners and for the Bay and River Delaware (MAC) the trust that they have This past year has seen a great . In its entirety, this area has been a proponent of navigational placed in me.” deal of movement in the project to spans approximately five miles. safety on the Delaware River since 1964. Capt. Kemmerley, a pilot with the Pi- deepen the Delaware River main Funding for dredging this section Working through issues locally has lots’ Association for the Bay and River ship to 45 feet. To recap, of the river comes from a combi- been one of the MAC’s driving forces, Delaware, is no stranger to the region. in January of this year, an 11-mile nation of sources to include the and its success rests not only on the co- “After eighteen years, I have worked the section of the channel between the FY13 Energy and Water Appropri- operation of its members but the person entire length of the river and been in- Walt Whitman Bridge to just south ations Bill. at the helm. Over the last four and a half volved in special projects such as U.S. of the Philadelphia International The contract process for dredg- years that role has rested on the shoulders Navy dead ship tows, including the air- Airport was completed. Next fol- ing Reach A closed on November of Capt. Steve Roberts. As MAC Chair- craft carriers Ex-USS America and Ex- lowed work between the C&D 21, and the award of bid and asso- man, Capt. Roberts has had the opportu- USS John F. Kennedy,” Kemmerley said. Canal and Woodland Beach, ciated Notice to Proceed is ex- nity to participate in projects that helped He is familiar with the role and mission ensure the vitality and safety of the port of the MAC and many in the region have Delaware. As of the end of May, pected sometime in January, 2014. community. worked with him in the past. approximately 50% of the physical “The time for celebration soon construction required to deepen the Some of these projects have included “I would like to thank Capt. Roberts comes when our regional can Delaware River channel from 40 to anchorage management and offshore for his trust and for his time and dedica- finally put out the welcome mat for 45 feet was completed. wind energy. “Roberts was instrumental tion to the position. I would also like to most of the world’s shipping fleet, As we approach the end of in tackling the navigational issue sur- thank the members of the MAC who have and take advantage of ships arriv- 2013, the Corps of Engineers and rounding offshore wind energy and work- welcomed me and taken the time to share ing from the soon to be completed the Philadelphia Regional Port Au- ing with various government agencies to their knowledge and opinions. I welcome Panama Canal,” said James Mc- thority continue their work in the ensure the mariners had a voice,” said constructive feedback on how we can evaluation of appropriate next Dermott. Executive Director, Maritime Exchange Vice President Lisa continue the tradition of safety, commu- steps to complete sections of the Philadelphia Regional Port Author- Himber. “Steve has shown unwavering nication and excellence within the port.” Delaware River yet to be dredged ity. PRPA is the local sponsor for dedication to our community,” she con- Capt. Roberts will undoubtedly stay for the 45’ Main Channel Deepen- the project. tinued. involved with the MAC and will be chair- ing Project. These include Sec- “The momentum is building as After a very successful term as Chair- ing the National Harbor Safety/Area Mar- tions AA, an area reaching from the we make our way towards the com- man of the MAC, Capt. Roberts an- itime Committee Conference in Ben Franklin Bridge to the Walt pletion of this project so critical to nounced he will turn the helm over to his Philadelphia next August. The port com- Whitman Bridge, and Lower our regional economic health,” said relief, Capt. Jonathan Kemmerley in De- munity thanks Capt. Roberts for his serv- Reach E, which is adjacent to Dennis Rochford, Exchange Presi- cember. “MAC has been one of the most ice and dedication and welcomes Capt. Broadkill Beach in Delaware. dent. “Looking back, I can see rewarding experiences of my career,” Kemmerley. We look forward to working South of the Walt Whitman how far we’ve come. Looking Roberts said. “I deeply appreciate all of with you! Bridge is a section of the river ahead, I can clearly see the light at the support from our stakeholders and known as Reach A, also in need of the end of the river.” Member Profile: Mullica Hill Cold Storage Fred Sorbello serves as CEO to Today, MHCS operates some Mullica Hill and Garden State Truck- 550,000 sq. ft. of commercial refriger- ing, President to Hill Creek Farms, ated storage, offering about 75,000 re- board member to the Meat Import frigerated pallet positions with Council of America, and President of locations in Mullica Hill, Pedricktown Ship Philly First, an organization of and Vineland, New Jersey. It is run and unified businesses dedicated to the operated by Sam’s sons Fred and Sam promotion and marketing of the Ports Sorbello, Presidents. The Mullica Hill of Philadelphia as a World Class Gate- Group companies are the largest re- way for imports and exports that sup- ceiver of imported meat into the U.S., port all trades. We asked Fred to share and they also proudly serve the fruit, with us the history of Mullica Hill seafood, bakery and poultry industries. Cold Storage. Mullica Hill was proactive during the Fred’s parents, Sam and Rose Sor- implementation of Food Safety Initia- bello, married in 1957 and started a tives first undertaken in 1985, creating farm with cash gifts from their wed- its own own internal Quality Manual, ding. Their very first purchase? A which eventually led the company to tractor! For the next three years, Sam become the first refrigerated ware- The Exchange staff had the opportunity to visit the Sobello’s Hill Creek Farms in Mul- and Rose grew tomatoes, peppers and lica Hill, NJ and talk with Fred Sorbello about his cold storgage operations. (l-r) Fred house in the U.S. to become ISO 9000 other vegetable crops. In 1960, Sam Sorbello, Dennis Rochford, Beverly Ford, Darleen Michalak, Scott Anderson, Donna certified. decided to also grow peaches and ap- Stargell, Laura Miller, and Michael Fink. The staff thanks Fred for all the apples, The MHCS family firmly believes ples, and the orchards’ brand name cider, and other goodies. that you should never forget your roots Hill Creek Farms Inc. was born. and how you got to where you are In 1964, Sam made a very wise business deci- age for frozen blueberries, Mrs. Smith Pies, and today. In celebration of that truism, the Sorbellos sion and built his first cold storage facility. The Seabrook Farms products. It was in 1974 that Sam still manage an orchard of 17,000 apple trees and a modest 1,500 sq. ft. cooler included an open pack- launched Mullica Hill Cold Storage (MHCS), and commercial cider operation at their farm in Mullica ing shed where the fruit was washed, sized, sorted in 1976, he added yet another 7200 sq. ft. facility. Hill. Sam and Rose’s grandchildren are leading the and weighed into cartons for wholesale purposes. In 1978, Sam built the first Meat Inspection fa- charge into MHCS’s future with Daniel A Sorbello, With his own cold storage space available, Sam cility in Philadelphia. At this time, the majority of Alex Sorbello, Jeff Sorbello, and Nathan Sorbello could hold at least 6,000 bushels of his harvest in the imported meat product was going to New York, all members of the management team. reserve, while all the other farmers picked, packed but Sam and Mullica Hill’s great service eventually In 2014, MHCS expects to complete a 140,000 and sold their fruit on a daily basis. Delivering to succeeded in luring all the meat importers to sq. ft. addition containing some 26,000 additional merchants in the Philadelphia area a few weeks Philadelphia. pallet positions at Pedricktown. Also scheduled for later, Sam tripled his returns as the only grower in Then, in 1991, Mullica Hill proudly became the completion in 2014 is a solar farm consisting of 40 the area with fruit. He built another 1,500 sq. ft. fa- CONUS (Continental US) approved facility to acres of solar panels at the Mullica Hill location. cility in 1968 and doubled his capacity for storage serve the troops during the war with Iraq, exporting The Exchange is pleased to count Mullica Hill for his fruit and off-season commercial business. 150-200 loads weekly to the Middle East through among its membership. We value their support and In 1973, Sam invested in a 6,000 sq. ft. com- its affiliation with Rastelli Exports. the expertise they bring to bear on key issues of mercial refrigerated facility, which provided stor- concern to our regional port community. The Beacon 4 Winter 2013

Rockefeller did it with coal by rail. ergy, is yet another example of re-pur- Oil Industry on the Delaware We’ll do it with crude,” said Jack Gal- posing an asset. Instead of refining loway, chairman, president and crude into a variety of products, the re- continued from page 1 founder of Canopy Prospecting, Inc., a finery now makes jet fuel exclusively newly-formed, investor-owned com- for Delta Airlines, a unique strategy by PBF is one of several companies on Forget Name Tags. Bring a pany that has partnered with Enbridge the airline to control its most volatile the river now investing huge sums in Corporate Diagram Inc. Together they formed Eddystone cost. massive tracks to make room for the The birth of the Eddystone Rail Co. Rail Co., a transportation service that So what happens when this evolu- onslaught of mile-long trains. in Chester at a former coal plant still will also broker crude to refineries in tion ends? One of Vane’s biggest customers owned by Exelon is emblematic of the the region that can be serviced by Will the river once again become a now is Philadelphia Energy Solutions, creative thinking that is driving devel- barge. hub of refined products? Will tanker another quasi-newcomer to the river, opment on the river. Beginning in February, the Eddys- traffic rebound with the export market? which hauls crude by rail to Eagle “As we watched the Philadelphia tone Rail Co., which is investing $80 Is this the beginning of a curse or a Point in Westville, New Jersey. refinery complex coming a hair’s million in rail, plans to unload one, cure for the region now beset with sup- Though the refinery is closed, the rail breadth away from a complete shut 118-car train per day. Ultimately, it ex- ply bottlenecks, and a shortage of head is still operational. Vane’s barges down, we knew we had to marry the pects to handle two trains carrying a American-flagged vessels to move move crude across the river – 50,000 production opportunity in the west in total of 160,000 barrels a day. crude from the Gulf Coast? barrels at a time – to the former some way with the existing technology The Trainer refinery in Delaware “Waterborne crude is far from refinery, now owned jointly by on the river. ‘ Holy Smokes,’ we said. County, now owned by Monroe En- dead,” cautions Gary Patterson, who Sunoco Logistics, a storage and trans- represents the American Petroleum In- fer company, and the Carlyle Group, a stitute. “It is still the largest, single private equity firm. commodity by tonnage transported on Other frequent hops for the Balti- the river. I don’t think the maritime in- more-based barge company are Albany dustry is threatened. It’s just that rail is and Baltimore to the river, Delaware to so visible. Paulsboro and Philadelphia to New “Given the volatility of global mar- York. kets which turn daily on half and quar- “Every month some XYZ company ter pennies, we must maintain the contacts us to see if we could handle viability of maritime, rail and pipeline their business if they are successful in because the only thing we can predict building a new rail head somewhere on about the future is that demand for en- the river. They’re building rail heads ergy will grow.” all over the east coast for the sole pur- Maritime Exchange president Den- pose of bringing in domestic crude,” nis Rochford notes the remarkable said Glenn. speed of the transition within the pe- The energy sector on the river is troleum industry on the global, na- changing so rapidly that players are tional and local levels. “It wasn’t all struggling to keep pace. Pennsylvania that long ago that BP was looking to Gov. Tom Corbett calls the present build an LNG facility in ,” cycle “the beginning of the second in- he said. “But that was the beginning dustrial revolution.” of a sea change in the energy market, At a recent energy conference in and the project never came to fruition.” Philadelphia, Drexel University Presi- Since that time, the shift has been dent John A. Fry called the Marcellus dramatic. Suddenly, the U.S. focus Shale “transformational” with strong moved to expanding wind farms, elec- potential to lead the US into a “manu- tric cars and other alternative sources facturing revival.” of energy. Almost equally quickly, ef- He also encouraged “sensible con- forts were then driven toward shale gas versation and real solutions” among fields. “The reality is that the more stakeholders to use the “resource things change, the more they stay the safely, effectively and to the broadest 1. Tioga Marine Terminal, Philadelphia, PA: Owned by the Philadelphia Regional Port Au- same,” Rochford said. “The recent societal benefit.” thority, the Tioga Marine Terminal has been identified as a possible site to receive and store availability of local gas and decreased Kevin Castagnola, executive direc- natural gas liquids from the Marcellus Shale for export to Europe and South America. Navi- dependence on foreign oil changes the tor and CEO of South Jersey Port Cor- gator Gas, a private, London-based company, is prepared to make a $100 million investment in the terminal. landscape yet again. The bottom line poration, which is building a new port is we want our energy to be both inex- at Paulsboro, said access to compara- 2. Philadelphia Energy Solutions, Philadelphia, PA: Formerly Sunoco, Inc., now pensive and convenient. For now, that tively inexpensive and plentiful natu- Philadelphia Energy Solutions under a joint venture between Sunoco, Inc. and Carlyle means gasoline. And that bodes well ral gas is a major selling point. The Group. At 1,400 acres, it is the largest refinery on East Coast with a capacity of 330,000 bar- for Delaware River industry.” first phase of the $300-million port is rels per day. The company produces a wide range of fuels, including gasoline, low sulphur Tom Kloza, publisher of Oil Price expected to be open for business in late diesel, kerosene, butane and propane, and its largest customer is Sunoco’s 4,700 gas sta- Information Service, believes the 2015. tions. Delaware River refineries are destined Global changes in the industry have 3. Exelon, Eddystone, PA: Former coal plant transformed into the Eddystone Rail Co. with to thrive because of existing technol- had a profound impact on the order of an approximate $80 million investment. ogy, rail infrastructure, plentiful natu- business, once dominated by iconic 4. Trainer Refinery, Trainer, PA: Monroe Energy acquired the idled ConocoPhilips Refin- ral gas and access to a galloping export brands, such as Sunoco, Gulf, BP, Tex- ery (formerly Tosco & BP) in 2012 to make jet fuel exclusively for Delta Airlines. market. aco, Shell, Mobil and Exxon. Called “One of the consequences of the oil the Seven Sisters, these integrated 5. Marcus Hook, PA: In use for storage and distribution of natural gas products. Formerly boom which has made North America firms controlled every step of the owned by Sunoco, Inc., now by Sunoco Logistics Partners, it is the proposed terminus of Mariner East, a 300-mile pipeline designed to move propane and ethane from the Marcellus the most privileged continent in the process from discovery to gas tank. Shale. world with regard to energy is it hap- Now, Sunoco and others have exited pened so fast that we are not prepared. the refining business and are partner- 6. Magellan Terminals, Wilmington, DE: Magellan Midstream Partners L.P., located within Not enough pipeline, rail cars and ing with an array of private equity the Port of Wilmington, acquired the refined petroleum products facility in 2005 from American-flagged ships. firms to cash in on a vastly changing Delaware Terminal Co., investing $72 million. The Delaware River definitely has market. 7. Delaware City Refinery, Delaware City, DE: PBF Energy purchased the idled Delaware an edge, and PBF Energy and Philadel- Ward Guilday, president of the City refinery from Valero (formerly Premcor, Shell, Star, & Getty). phia Energy Solutions are the most ag- Pilot’s Association for the Bay and 8. Eagle Point, Westville, NJ: Formerly Coastal, now owned by Sunoco Logistics. Re- gressive players. They can operate River Delaware, remains optimistic. ceives Bakken crude by rail and used for storage & transfer of natural gas liquids. their refineries at substantially less “Imported crude is shrinking, but it’s than the rest of the world. With high still the fastest, cheapest and safest 9. NuStar, Paulsboro, NJ: NuStar Asphalt Refining Co. owns the former CITGO plant. cost crude and natural gas, Europe is way to move things. I’m confidant 10. Port of Paulsboro, NJ: This new facility, a $300 million project underway by South Jer- kind of screwed.” new products will create new opportu- sey Port Corp, is slated to open in late 2015. Recognizing the need, Crowley nities. This port is poised for a Ren- 11. Paulsboro Refinery, Paulsboro, NJ: Also owned by PBF Energy, this former Valero Maritime Corp. of Jacksonville, aissance.” plant refines heavy, sour crude which is abundant in Western Canada and cheaper to refine and light crude. continued on page 12 The Beacon 5 Winter 2013 Coast Guard Focuses on Oil Industry Regs

It’s no surprise that the U.S. Coast vessels, the agency published a no- local Area Contingency Plan, and in Capt. Kathy Moore, Coast Guard Guard recently finalized regulations tice of proposed rulemaking for non- Sector Delaware Bay that means Captain of the Port for Sector requiring nontank vessel owners and tank vessels, defined as any they have to be able to comply with Delaware Bay. She noted that the operators to develop and implement self-propelled vessel, that is not a all the sensitive booming strategies Coast Guard “intends to focus on vessel response plans (VRPs) for , of 400 gross tons or greater. contained in the plan. operations that have the highest discharges. What is surprising to The rule would apply to any such This is no easy feat. The risks of discharge, including opera- some, however, is the circuitous vessel operating in U.S. navigable Delaware River port is comprised of tions at night and in inclement route the process has taken. waters, but not those engaged in in- 110 miles or river and bay and nu- weather . . . and it highlights, among “In 2009, Coast Guard updated its nocent/transit passage. merous sensitive area booming other aspects, booming strategies rules relating to removal re- Adoption of the final rule came on strategies, which translates to al- and the safety of personnel.” quirements for tank vessel and ma- September 30 of this year. most 100,000 feet of boom. This will The notice does not make clear rine transportation related facility Under the new rule, among other require each vessel to have an Oil whether it is meant to refer to cargo response plans,” said Maritime Ex- provisions the plans must identify Spill Response Organization capa- or fuel, and there is no indication change Vice President Lisa Himber. qualified individuals responsible for ble of meeting that requirement. Cur- what data the Coast Guard may be “The final rule was a long time in the response activities, identify and en- rently the Delaware Bay and River using that indicates the risk has not making, with the initial Notice of Pro- sure by contract or other approved Cooperative is the only OSRO with already been minimized to the ex- posed Rulemaking first published in means the availability of private per- this quantity staged locally. tent possible. 2002.” sonnel and equipment necessary to On October 25, the Coast Guard According to George Murphy of The implementation of that rule respond to a worst-case discharge, released Marine Safety Information South River Maritime, the Delaware was delayed, pending the promulga- include training, equipment testing Bulleting #38-13 which clarifies the River port community has a long and tion of the Salvage and Marine Fire- and drill requirements, be updated implementation date and notice of successful record of proactively and fighting final regulation in 2008. periodically and is subject to resub- arrival requirements outlined in the voluntarily improving operations, cit- Since that time, however, the Coast mission and approval for significant final rule. ing particularly the formation of the Guard has been enforcing the statu- changes. As drafted, these new re- DBRC. “Under the umbrella of the tory requirement to prepare and sub- More Regs Coming? quirements closely mirror existing re- In late October, the Coast Guard Maritime Exchange, this port com- mit oil spill response plans for munity will work together with the nontank vessels of 1,600 gross tons quirements for tank vessels published a notice announcing that “For most of us, this will not be an it considering new measures to re- Coast Guard to ensure we are doing or greater. all we can to reduce risk while at the The 2009 revisions to the tank issue,” said Jeff Parker, Vice Presi- duce the risks of oil spills in oil trans- dent of Customer Service for Ham- fer operations from or to a tank same time avoiding unnecessary vessel VRP regulations clarified the regulations,” he said. salvage and marine firefighting serv- burg Süd North America, Inc., noting vessel and soliciting public com- ices that must be identified in VRPs that many commercial cargo ship op- ments, as required under the Coast and established new response plan erators had already established such Guard Authorization Act of 2010. requirements for each of the required plans. The Coast Guard posed a series of Thanks also to Kathy Metcalf of salvage and marine firefighting serv- But for others, this may mean a questions which are designed to the Chamber of Shipping of Amer- ices. As a result the compliance date dramatic change in business elicit comments regarding minimiz- ica, who contributed to this article. for plans was delayed until February process. ing the possibility of spills in trans- For more information, contact Lisa 2011. That’s because these new regu- fers of oil to or from tank vessels. Himber at lisa.himber@mar- On the same day the Coast Guard lations require the nontank vessel re- “This is intended to be a risk- itimedelriv.com. promulgated the final rule for tank sponse plan to be consistent with the based regulatory scheme,” said The Beacon 6 Winter 2013 Sunoco: A Long History – A Bright Future With its beginnings in the 19th cen- company. This was accompanied by a of Mariner East, a 300-mile pipeline de- year, eventually ramping up to 70,000 tury, Sunoco is certainly not the new move to new corporate headquarters in signed to move propane and ethane – barrels a day, Capt. Michael P. Nesbitt, kid on the block. Sunoco got its start Radnor, Pennsylvania. Reflecting the byproducts of natural gas extraction – marine operations manager, predicts an on March 27, 1886, and within a few diversification of the company, Sun Oil from the Marcellus Shale, which spans uptick in ship traffic. years, the company had acquired Company was renamed Sun Company, Western Pennsylvania, West Virginia Crude can’t be exported, but de- pipelines, leases and storage tanks – Inc. in 1976. Since then, there have and Ohio. These liquids will then be and was emerging as one of Ohio’s been further restructurings. processed, stored and distributed to mand for liquid byproducts is increas- leading suppliers of crude oil. On Today, Sunoco, Inc. maintains a local and foreign markets. ing in Europe and South America. March 17, 1890, it became The Sun Oil one-third interest in the Philadelphia re- “The Marcus Hook terminal is “I think many in the port would Company of Ohio and was producing, finery, the largest on the east coast, gearing up to become a world class hub agree with me that we are encouraged transporting and storing oil as well as which it had threatened to close. The for natural gas liquids – such as ethane, for the potential growth in this area, refining, shipping and marketing petro- dominant partner is the Carlyle Group, propane and butane. This will give pro- having been one of the most active leum products. a private equity firm. Together they ducers in the Marcellus and Utica crude oil ports to the metamorphosis In 1916, the Sun Shipbuilding and equal Philadelphia Energy Solutions to Shales their closest access for exports,” Dry Dock Company was established, a operate the refinery. said Jeff Shields, spokesman for with natural gas liquids and rail where subsidiary that took the company into Like PBF Energy, Philadelphia En- Sunoco Logistics. new jobs replace some of those that the shipbuilding business. In 1920, Sun ergy Solutions has built a “high-speed When LPGs (liquid petroleum gas) were lost, and the port economy can be opened its first service station in Ard- crude oil unit train unloading facility” start to flow through Mariner East next sustained, “Nesbitt said. more, Pennsylvania. The name to access crude from North Dakota and changed to Sun Oil Company in 1922. other mid-continent locations.” The fa- Throughout the first half of the cility can unload two1.5-mile-long New Zealand Ambassador Tours 20th century, the company diversified trains in 24 hours, according to the and expanded, establishing operations company’s website. abroad, including a brief foray into CEO Philip Rinaldi said PES de- mining. In 1929 it entered the oilfield cided to invest in rail . . . because it equipment business, and one of the would cost “multi-billions to build a most dramatic events of the 1930s for pipeline from North Dakota.” the company – and the refining industry Jim Savage, president of United – took place when Sun placed on Steel Workers Local 10-1 which oper- stream the world’s first large-scale, ates the refinery, estimates PES will commercial catalytic cracking plant in soon haul “about half” by rail. Marcus Hook, Pennsylvania, in 1937. Sunoco Logistics, a separate lim- In 1958, Sun introduced the Cus- ited partnership, owns facilities in Mar- tom Blending Pump, a novel system for cus Hook, Pennsylvania and Eagle dispensing a choice of five octane Point in Westville, New Jersey. Both grades of gasoline from a single pump. are being used as storage and transfer New Zealand Ambassador to the U.S., Mike Moore, met with local business leaders in It revolutionized the method of market- facilities for refined products. Eagle November at the Packer Avenue Marine Terminal in South Philadelphia to discuss ing gasoline Point is also handling crude and Mar- trade relations between the U.S. and New Zealand. (l-r) Leo A. Holt, President, Holt Major restructuring reshaped the cus Hook natural gas liquids. Logistics Corp; James T. McDermott, Executive Director, Philadelphia Regional Port company in 1975, when it organized The Marcus Hook terminal, which Authority; Ambassador Moore; Michael Holt, Holt Logistics Corp; and Maritime Ex- into 14 operating units, two property is partially located in Claymont, change President Dennis Rochford. companies and a non-operating parent Delaware, is the proposed destination The Beacon 7 Winter 2013 The Importance and Value of Marine Industry Training Spending time with API and DBRC Historically, over 1 million barrels connected the strategic, operational and of crude oil have been imported via the tactical level interdependencies By: LT Eric Nielsen creasing educational outreach efforts of Delaware Bay and River each day. amongst communities, industry and the oil and natural gas supply chain. As Today, the port also serves as a key government. The visited organizations U.S. Coast Guard part of the Marine Industry Training ONG export conduit because of its ge- include: Pilots Association and Program, one of my projects was to ographic location, existing ONG infra- Mariners Advisory Committee for the The Coast Guard Marine Industry work with interagency partners to de- structure, and access to shale oil and Bay and River Delaware, Maritime Ex- Training Program offers incredible op- termine the essential infrastructure as- natural gas. As world ONG markets change, Philadelphia Regional Port Au- portunities for Coast Guard employees sessment considerations, govern- continue to shift, response plans must thority, South Jersey Port Corporation, to intimately learn specific facets of the ment/industry response actions, gov- also adapt to changing economic and , Vane Brothers, NuStar marine industry. Participants in the ernment/industry critical information environmental conditions. Asphalt, PBF Energy, Monroe Energy, program work directly for industry requirements, and potential govern- My primary and ongoing project at Sunoco Logistics, Overseas Shiphold- partners for up to one year. In addition ment regulation waivers. This infor- DBRC has been to identify and transi- ing Group, Philadelphia Energy Solu- to building superior government/indus- mation was integrated into clear and tion the geographic response plans and tions, and a host of others. Only after try working relationships, the program succinct flow charts which will be uti- booming strategies contained within detailed exposure to these organizations affords industry sponsors an opportu- lized by key decision-makers during fu- the ACP to into an accessible computer- did I fully understand the importance of nity to share detailed business consid- ture responses. based platform. oil spill response strategies and contin- erations and limitations, so that Coast API did not create these tools in a Identified options must be accessi- gency plans such as the ACP. Guard regulatory activities most effec- vacuum; a collaborative and iterative ble to all port partners and remain us- The Coast Guard Marine Industry tively promote safety, while limiting development process was utilized, able during all contingency events, Training Program is an invaluable op- undue burden on the maritime industry. where government regulators and ONG including mandatory evacuations, portunity for both CG and industry par- This past summer, I participated in industry partners developed and refined power, and internet outages. Utilizing ticipants. As I settle into my new billet Port Safety/Security Industry Training these products over several months. an interactive geographic information as Sector Delaware Bay’s Marine En- (PSSIT), in which I worked at the The efforts of the interagency and system (GIS) that is functional on mul- vironmental Response Branch Chief, American Petroleum Institute (API) in industry working group were presented tiple platforms, such as Environmental the relationships that I have built and Washington, DC and at the Delaware to the President at the 2013 Hurricane Systems Research Institute’s (ERSI) the knowledge I have gained during in- Bay and River Cooperative (DBRC). Season Briefing. The White House ArcGIS, Google Earth, or the National dustry training are already paying div- In addition to building relationships subsequently recommended that the Oceanic and Atmospheric Administra- idends. Sustained Coast Guard and with numerous industry partners, I pol- ESF #12 information flow model be tion’s (NOAA) Environmental Re- maritime industry participation and col- ished my understanding of the collec- utilized as a foundation to design infor- sponse Management Application laboration through the industry training tive efforts to strengthen marine mation flow models across all 15 ESFs. (ERMA), will ensure the ACP remains program will further enable sensible contingency planning. Further information on this effort and dynamic, relevant and useful during all regulation and maritime safety for other API information can be found at types of events. years to come. Industry Involvement in Strategic www.api.org. The Sector Delaware Bay ACP and Interested Coast Guard applicants Planning further information on DBRC can be can find detailed information by Industry Involvement in Operational API is the largest oil and natural gas found at www.dbrcinc.org. searching industry training on CGPor- Planning industry trade association, representing tal. Interested industry sponsors can Upon completion of my time at API The Value of Industry Training over 500 production, refining, distribu- explore future training possibilities in early July, I transitioned to DBRC. As I gained detailed port and busi- tion, and service companies. While at with CG-7411 by calling (202) 372- There, I further refined my understand- ness knowledge by visiting and learn- API, I learned the importance and value 2366. of industry trade associations. In the ing of the oil and natural gas industry ing from numerous port partners, I wake of Hurricane Sandy, API led the and came to fully appreciate the efforts “whole community” effort to develop of oil spill response organizations. The the National Response Framework DBRC is a not-for-profit corporation (NRF) Emergency Support Function formed in 1977. As a prominent mem- (ESF) #12 – Energy Annex information ber of the Sector Delaware Bay Area flow and process model. This model Committee, DBRC plans for and re- and the supporting Oil and Natural Gas sponds to oil discharges and hazardous (ONG) Industry Emergency Prepared- substance releases in the Delaware ness and Response Handbook, educate River, Delaware Bay and the surround- and bolster efficient and effective com- ing Atlantic Ocean. munication and response amongst gov- Area committees are comprised of ernment regulators, public federal, state, local, non-governmental communities, and other stakeholders organizations, private-sector industry before, during and after any incident. and community members. U.S. Coast The National Preparedness System, Guard and Environmental Protection National Response Framework, and the Agency representatives serve as Fed- Incident Command System provide the eral On-Scene Coordinators (FOSC), frameworks and processes that should managing all pollution and hazardous be utilized by all stakeholders in re- substance response activities through- sponding to any event. out the United States. ESF’s are comprised of 15 essential Following amendments to the Fed- services needed during incidents and eral Water Pollution Control Act support the frameworks by providing (FWPCA), area committees are the structure for coordinating resources charged with maintaining area contin- and capabilities across public and pri- gency plans (ACP) that provide guid- vate infrastructure. As evidenced by ance to prevent, mitigate and remove the response to Hurricane Sandy, the worst case discharges from vessels, off- frameworks and processes are just that shore, and onshore facilities. DBRC’s – processes. To be most effective, users intimate knowledge of environmentally must understand how the critical ele- sensitive areas and oil spill response ments of each ESF interface. planning laid the foundation for the Effective response requires the most Sector Delaware Bay ACP. This plan efficient delivery of resources and in- not only drives efficient and effective formation to ensure populations are se- response to events such as the M/T cured and that essential services are ATHOS 1 oil spill, it also enables coor- provided in a timely manner. The dinated prevention, response and re- strategic focus of response and recov- covery efforts for all contingencies. ery efforts following Hurricane Sandy Incorporating the refined ESF coordi- should have been the critical elements nation strategies into operational and of the ONG supply chain, as opposed tactical plans (such as the Sector to the 3,500+ individual point-of-sale Delaware Bay ACP) will prove to be locations in the greater tri-state area. invaluable during future multi-faceted API seized the opportunity to im- incidents like Hurricane Sandy. prove future ESF #12 response by in- The Beacon 8 Winter 2013 Muddy Waters: Jurisdiction Over the Delaware River and Bay

lishing a boundary between Delaware and New Jersey. When independence was achieved, inter- national law was applied to establish water By: Scott Gunst, Esq., Reeves McEwing, LLP boundaries between the states. Under the doctrine of “Thalweg,” international law divides Throughout history mankind has used wa- The Compact of 1905 established boundaries by the middle of the main shipping terways to create natural borders. With these Delaware and New Jersey’s riparian rights to channel, where one exists, and not by the ge- natural divisions comes a history of boundary the Delaware River, concurrent jurisdiction ographical center of the river banks. The and jurisdictional disputes including between with respect to civil and criminal process as Court looked at Fisher’s Chart of Delaware Virginia and Maryland, Ohio and Kentucky, well as the concurrent rights of regulating the Bay and found that there was a well-defined and New York and New Jersey, among oth- fishery. However it did not specifically ad- navigation channel on the Delaware Bay and ers. dress or affect either state’s territorial limits, River as early as 1756. Applying the Thalweg Scott Gunst, Esq. The history between the States of rights or jurisdiction over the Delaware River, doctrine, the Supreme Court held that below the twelve-mile circle, the boundary between Delaware and New Jersey is no different. Nu- nor its subaqueous soil. These omissions New Jersey v. Delaware III Delaware and New Jersey is the middle of the merous disputes have led to an interstate would lead to future disputes and litigation. In the mid-2000s, British Petroleum Delaware Bay and River’s main shipping chan- compact agreement, three Supreme Court de- A second action was brought in 1934 by planned the construction of an LNG offloading nel. cisions, the threatened use of the National New Jersey to determine the rights to the sub- facility in New Jersey. The project, termed Guard, and the re-commissioning of the USS aqueous soil after a dispute arose over the Development of Environmental Regula- “Crown Landing,” included the construction of NEW JERSEY to ward off an invasion. With rights to an oyster bed within the twelve-mile tions and Interstate Cooperation a pier which would extend approximately these disputes aside, no one can argue with circle of New Castle, Delaware. In New Jer- The environmental movement began in 2,000 feet from New Jersey into the Delaware the proposition that the states of Delaware, sey v. Delaware II, the Supreme Court estab- the late 1950s, and Delaware enacted several River. In addition, the project required the New Jersey, and Pennsylvania must to work lished the boundary line between Delaware statutes regulating the submerged lands of the dredging of approximately 1.24 million cubic together to successfully promote the growth and New Jersey in the River below the twelve- Delaware River. In 1971, it implemented the yards of subaqueous soil and affecting ap- of the ports as well to balance environmental mile circle and the Delaware Bay. Delaware Coastal Zone Act (DCZA) which was proximately 29 acres of riverbed within regulations affecting the ports. The Court traced Delaware’s title through established to protect Delaware’s coastal zone Delaware’s jurisdiction. and prevent a danger of pollution to the coastal The Delaware-New Jersey Border a series of deeds originating from a 1682 deed In 2004, BP sought Delaware’s permission zone. The DCZA prohibits “heavy industry Delaware and New Jersey have disputed to William Penn granting him all the lands to construct the project. Delaware denied the uses of any kind” and “offshore gas, liquid or their border rights over the Delaware River lying within the twelve-mile circle of New Cas- request and in support of its denial cited the solid bulk product transfer facilities.” since the birth of our nation. These have led tle, including the River, its islands and sub- DCZA which prohibits “bulk product transfer fa- In 1972, Congress passed the Coastal to three Supreme Court decisions establish- merged lands. On reviewing the Compact of cilities” and “heavy industry uses.” These Zone Management Act (CZMA) which encour- ing the boundaries between Delaware and 1905 the Court determined that it did not affect same prohibitions were relied upon in ages states to develop coastal zone protection New Jersey on the Delaware River and Bay. either state’s territorial limits, rights or juris- Delaware’s 1972 decision prohibiting the con- programs in exchange for federal funding; The first major dispute between the two diction over the River’s subaqueous soil. The struction of an LNG facility. each state’s coastal management plan (CMP) states started in the mid-1800s after Delaware Supreme Court held that Delaware had title to Rather than accepting Delaware’s deci- must be approved by the National Oceano- the subaqueous soil within the twelve-mile cir- sion, a dispute quickly escalated. New Jersey passed a law requiring New Jersey fishermen graphic and Atmospheric Administration cle. threatened to withdraw funds from Delaware’s to obtain Delaware fishing licenses. New Jer- (NOAA). Once a CMP has been approved, The Supreme Court also held that the banks; Delaware considered mobilizing the sey brought suit against Delaware to declare proposed projects contained within a state’s boundary between the two states below the National Guard to project its border; New Jer- the long-disputed boundaries. The case went coastal zone must conform to the plan. on for many years and was ultimately dis- twelve-mile circle and into the Delaware Bay sey’s legislature looked into re-commissioning is the centerline of the main shipping channel. In 1979, Delaware’s CMP was approved missed in 1907 after Delaware and New Jer- by NOAA, and in 1980, New Jersey’s CMP the battleship NEW JERSEY to repel a possi- sey created the Compact of 1905, later The Court found that after the Revolutionary ble invasion by Delaware. In the end, cooler War there was no treaty or convention estab- was approved. Each state’s CMP is different, approved by Congress. as some states are less restrictive to industrial heads prevailed, and rather than firing the 16” activities in the coastal zone while others are guns of the NEW JERSEY into Delaware, New more so. Because of these differences, states Jersey took to the pen and fired a complaint, must cooperate to encourage development of hauling Delaware back to the Supreme Court their coastal zones. for a third time. Following the decision of New Jersey v. In New Jersey v. Delaware III, New Jersey Delaware II, the states cooperated to develop brought suit against Delaware seeking a de- structures extending from New Jersey into the claratory judgment that under Article VII of the Delaware River. From 1969 to 2006, any New Compact of 1905 New Jersey had the author- Jersey project that extended out into the ity to construct the Crown Landing project. Delaware River beyond the low water mark The Supreme Court looked to the Com- had to obtain coastal permits from both states. pact to determine what riparian rights New Jer- During that time, three structures were built, sey had over the subaqueous soil within the and Delaware issued permits for each. In twelve-mile circle. While Article VII allows 1972, Delaware rejected the construction of an each state to exercise riparian jurisdiction of LNG unloading facility extending from New every kind and nature under the laws of that Jersey into the Delaware River, because the respective state, Article VIII specifically states facility violated the “heavy industry uses” and that the Compact does not affect “the territorial “bulk product transfer facilities” provisions of limits, rights, or jurisdiction of either state…or the DCZA. New Jersey did not object to the ownership of the subaqueous soil.” Based Delaware’s rejection at that time. However, on Article VII of the Compact, the Court deter- this would be the harbinger of things to come. mined that New Jersey has riparian rights continued on page 14 The Beacon 9 Winter 2013

Aker Philadelphia Shipyard and Crowley Announce Plans for New Tankers Aker Philadelphia Shipyard, Inc. Dockyards (HMD) design which incor- (APSI), and Crowley Maritime Corpo- porates numerous fuel efficiency fea- ration are expanding the cooperation tures, flexible cargo capability, and the initiated with the sale and delivery of latest regulatory requirements. The ves- two product tankers in 2012 and 2013. sels will be constructed with considera- The expanded partnership includes four tion for the use of LNG for propulsion new product tankers with deliveries in in the future. HMD and APSI collabo- 2015 and 2016, with the possibility to rated on the successful construction of build four additional product tankers 14 product tankers at APSI between with deliveries through 2017. The par- 2005 and 2013. ties have signed binding shipbuilding Design and procurement activities contracts for the first four tankers with are already underway to support the a total contract value of approximately start of construction of the first tanker $500 million. in January 2014. Aerial view of the Aker Philadelphia Shipyard. “The shale revolution is creating in- APSI is currently constructing two dustrial opportunities throughout the 115,000 dwt crude oil carriers for 1,110 employees for the future.” of-the-art shipbuilding facility and has United States and specifically here in SeaRiver Maritime, Inc., ExxonMobil Aker Philadelphia Shipyard is a earned a reputation as the preferred Philadelphia. We are pleased to expand Corporation’s U.S. marine affiliate. leading U.S. commercial shipyard con- provider of oceangoing merchant ves- our partnership with a first class opera- Both of these crude oil tankers are structing vessels for operation in the sels with a track record of delivering tor like Crowley to help meet the na- scheduled for delivery in 2014. Jones Act market. It possesses a state- quality ships. tion’s longstanding goal of energy “It’s an exciting time. Since 2011, security,” said Kristian Rokke, Presi- Aker Philadelphia Shipyard has tripled dent & CEO of Aker Philadelphia Ship- in size,” said Rokke. “We won orders yard. for $1.1 billion, were able to recall The new 50,000 dwt product tankers workers laid off in 2010, and we’ve are based on a proven Hyundai Mipo continued to invest in our facility of

CG Instrumental to Safe, Efficient Waterway continued from page 1 three states, three port authorities and multiple layers of government – work together. Sure they get animated about cargo, but when it comes to safety and security, they are team players. I was shocked how well they work together.” Volatile weather makes the inland location of Delaware River ports in- In November, Capt. Moore (left) accepted creasingly attractive to shippers, said an award on behalf of the Coast Guard Moore. Sector Delaware Bay from Father Peter “We are busy. We do have fewer Stube, Executive Director of the the Sea- deep-draft petroleum ships, but we men’s Church Institute. SCI honored the have more smaller ships and more Coast Guard at its annual fall gala. barge traffic as a result of changes in the petroleum industry. It’s the diver- ported crude. She is also optimistic that sity of this port that makes it exciting the opening of an expanded Panama and more resilient to economic Canal will bring new shippers to the changes. river. Maritime traffic peaked on the Despite the Paulsboro accident Delaware River in 2006 with 2,847 which is still in the courts, Moore said ships. Last year the number was 2,076, she has “no issues” with the increase in slightly higher than 2010 when it hit rail service into the port. She com- rock bottom at 2,028 ships. mended the oil refineries with keeping When Philadelphia Energy Solu- the Coast Guard up-to-date on plans tions, PBF Energy, NuStar Asphalt and and permits. Eddystone Rail Co. crank up the vol- “Petroleum cargoes transferred to ume to capacity of inland crude and pe- and from rail is a bit less challenging troleum byproducts from the Marcellus than transferring the same product to Shale, Western Canada and North ships and barges because of the need to Dakota, Moore predicts a spike in ex- accommodate the vessel’s movement in ports that will dwarf the decline in im- the water,” explained Moore. The Beacon 10 Winter 2013 USS SOMERSET to be Commissioned at Penn’s Landing By: Michael D. Kearney In the summer of 2008, the dragline’s 22-ton erset Commissioning Committee, supported by the USS Somerset Commissioning steel bucket was melted down and cast into LPD Philadelphia Council of the Navy League, is tasked Committee 25’s bow stem, embodying the strength and deter- with raising the funds to support commissioning mination of the people of the United States: to re- events. While the Navy funds the ceremony itself, cover, to rally, to take the fight to the enemy. ancillary expenses for the ship and her crew require Somerset’s keel was laid down on 11 December hundreds of thousands of dollars. We are confident 2009, at Northrop Grumman’s Avondale shipyard that that port communities of the Delaware River, in New Orleans, Louisiana. She was launched on Pittsburgh, and Erie will meet the challenge in sup- 14 April 2012, with her christening on 28 July porting the Commissioning Committee. 2012. Mrs. Mary Jo Myers, wife of General Commissioning a US warship is a tradition that Richard Myers, former Chairman of the Joint has been in practice since 1775. It is the most sig- Chiefs of Staff is the ship’s sponsor. nificant event in the life of the ship. Many dedi- The versatile San Antonio-class ships incorpo- cated volunteers are working to ensure that rate both a flight deck to accommodate CH-46 hel- Somerset’s commissioning events are a success. icopters and MV-22 Osprey tilt-rotor aircraft and a Be a part of it. For a listing of events and levels of The ship’s name honors the passengers and crew of well deck that can launch and recover landing craft support for tax-deductable donations, visit our United Airlines Flight 93. and amphibious vehicles. The San Antonio class’ website: www.usssomersetcommissioning.org. increased vehicle space and substantial cargo car- USS Somerset Commissioning Committee USS Somerset (LPD-25) will be commissioned rying capacity make it a key element of twenty-first in Philadelphia on March 1, 2014. She is the ninth PO Box 56198, Philadelphia, PA 19130 century Amphibious Ready Groups, Expeditionary Phone: 610-687-7699 San Antonio-class amphibious transport dock and Strike Groups, and Joint Task Forces. the fifth ship of the United States Navy of that [email protected] The ships are 684 feet long with a beam of 105 name – in this case for Somerset County, Pennsyl- vania. Like her sister ships, USS New York and Ar- feet. Displacing nearly 25,000 tons, they draw 23 lington, she is named in commemoration of the feet of water at full load. Four diesel engines pro- September 11, 2001 attacks. The name honors the duce 41,600 shaft horsepower propelling the ship passengers and crew of United Airlines Flight 93 in excess of 22 knots. whose actions prevented terrorist highjackers from In addition to performing their primary mission, reaching their intended target, forcing the airplane Somerset’s sister ships have supported anti-piracy to crash near Shanksville, in Somerset County. operations and provided humanitarian assistance Over the weeks following the Flight 93 crash, and foreign disaster relief operations in Haiti after recovery personnel retrieved more than 95 percent the earthquake. of the airplane’s wreckage from the crash site. An Somerset is the last of the commemorative ships American flag was hoisted on the top of a power to be commissioned. The cities of New York, New shovel or “dragline” on a hill dominating the area. York and Arlington, Virginia (the Washington, DC USS SOMERSET prospective commanding officer, CAPT Thomas L. Dearborn and crewmembers toll the bells at The dragline had been used in coal stripping at one metro area) provided tremendous support for the time, and the equipment with the flag became a the 2013 Flight 93 commemoration in Somerset County, commissioning of the sister ships. The USS Som- symbol of the effort. Pennsylvania. The Beacon 11 Winter 2013

Quiet Shipyard Makes Noise

Philadelphia Shipyard, Northorp Grum- phia . . . our workforce brings a unique I should also report that Bill Moran, man, Penn Maritime, Overseas expertise to our operations and is a driv- his wife Marian, and this writer, were Shipholding Group, and the Navy Sea ing factor in our success in this region.” asked by Adm. Hare to join the Union Systems Command. All of us at the Maritime Exchange League Armed Services Council, which Some of Rhoads’ recent projects in- wish much success to this rapidly grow- orchestrates all military events at the clude: ing shipyard. We are also pleased to Union League. It’s a sincere I first heard about Rhoads Marine w Supplied turbo generator systems have Adm. Joseph Hare on the Mar- privilege to work with this Industries from Maritime Exchange for U.S. Navy aircraft carriers itime Exchange Board of Directors, and great American. board member William Moran. At that GEORGE BUSH (CVN-75) and we value his extensive marine experi- time, both Bill and I were seeking to GERALD FORD (CVN-76); ence. join the prestigious Armed Services w Provided mobile “Tiger Team” Council of the Union League of support to Lockheed Martin for al- Philadelphia, headed up by Exchange CACC Honors Markell as a terations to the vertical launch mis- board member Adm. Joseph Hare, Vice sile systems of the Aegis Class of “Friend of Chile” President of Rhoads Shipyard Opera- guided missile cruisers; tions. After our first meeting with Adm. w Removed propulsion plant com- Hare, we were invited to take a tour of ponents from the ex-USS YORK- Rhoads’ new facilities at the Navy Yard TOWN, THOMAS S. GATES and and to learn some background on TICONDEROGA; Rhoads Marine Industries. w Repair, maintenance and overhaul This new company is a unit of of barges for the City of Philadel- Rhoads Industries – a family-owned phia, Overseas Shipholding Group company that has provided industrial and other customers; fabrication and maintenance services to w Preparation of ex-USS RAD- the mid-Atlantic region since 1938. FORD for use as a marine reef; The re-commissioning of the w Repair to the U.S. Army Corps of Rhoads Shipyard facility started in Jan- Engineers Hopper Dredge MC uary, 2010 and proceeded rapidly over FARLAND; and an 18-month period, during which time Rhoads invested millions of dollars in w Repair to Great Lakes Dredge and restoring functionality to the pier, dry Dock Hopper Dredge ILLINOIS. On November 22, Pennsylvania State Senator Mike Stack (2nd from right) presented dock pump house, caisson and winches, Rhoads Marine Industries started a citation to the Governor of Delaware Jack Markell (left), the 2013 recipient of the lay-down areas, shipyard portal cranes out with 45 employees in 2010, and Friend of Chile award. The award is bestowed each year by the Chilean & Ameri- and associated warehouse and shop fa- today it employs up to 200 craftsmen, can Chamber of Commerce in recognition of an individual who demonstrates the cilities. depending on project requirements. strong and deep commercial, trade, cultural, and diplomatic relationship between the Greater Philadelphia region and the Republic of Chile. Also honored at this Today, Rhoads Industries operates a Adm. Hare told me he believes Rhoads is “fortunate that there is such year’s event for lifetime achievement were Tom Mastromarco (2nd from left) and state-of-the-art facility for some top- Harold Sbrocco (represented by his daughters) for lifetime achievement. notch customers to include Aker an outstanding labor pool in Philadel- The Beacon 12 Winter 2013

Oil Industry on the for storage and a berth to handle a Overcoming the Obstacles accidents are making headlines, oil ship a week. Negotiating a “reason- While “big oil” has traditionally transport by rail is certainly nothing Delaware able price” for rail service, he said, been characterized as the enemy in new. According to the American As- appears to be his biggest obstacle at certain quarters, there’s no doubt that sociation of Railroads, the rail indus- continued from page 4 this time. communities value the contributions try has been moving oil for over 150 Based in London, Navigator Gas these oil companies make in our re- years. Florida ordered four 330,000 barrel already hauls about 140,000 barrels of gion. In both Marcus Hook and According to the AAR, “Railroads tankers this summer from Aker propane from Marcus Hook to Europe Delaware City, for example, and un- have a strong safety record for mov- Philadelphia Shipyard for $500 mil- and South American every two doubtedly in cities across the U.S., ing hazardous materials, including lion with an option to buy four more. weeks. communities were devastated by the crude oil, with 99.9977 percent of all Aker is also building two tankers for “It’s small, but a beginning. These loss of jobs and its ripple throughout rail hazmat shipments reaching their Exxon Mobil Corp. affiliate SeaRiver liquids are extremely valuable be- the local economies. Elected officials Maritime. The surge has allowed destination without a release caused Aker to return to full employment of by a train accident.” 1,000 workers after several lean “The oil refiners, barge operators years. and railroads are committed to safety,” Rochford said. “Clearly, they Fill ’er Up – New Faces on the are concerned about the environment River and the health of their neighbors, but Like Sunoco, Inc., Wawa has a there is also an economic incentive to string of gas stations – more than 260 remain accident free. Companies are in the five-state area – that need a pre- going to do all they can to prevent in- dictable supply of petrol. To that end, cidents.” it is leasing 13 tanks, capable of stor- But the reality is that accidents do ing 1 million barrels of fuel from happen. The Coast Guard and water- Magellan Midstream Partners, L.P. at and land-side first responders, in col- the Port of Wilmington. Wawa is PBF Energy, Inc., which purchased the former Valero refineres in Paulsboro and laboration with industry, make train- Magellan’s biggest customer, accord- ing, prevention and preparedness a ing to Operations Supervisor Andy Delaware City, is using a fleet of 2,400 cars to haul about 60,000 barrels per day of priority. As you’ll read in this issue Zaun. light Bakken crude and 35,000 barrels per day of heavy crude from Alberta, Canada to Delaware. of The Beacon, a lot of talented peo- Headquartered in Tulsa, Okla- ple spend a lot of time and effort en- homa, Magellan operates the longest cause they can be used in heating, worked hard to salvage what they refined products pipeline system in suring that operations are as safe as cooking, feed stock to petrochemical could and help broker new deals possible. the country through terminals in 22 wherever possible. plants. They can also be transported “The bottom line is that the oil in- states. It came to Wilmington in by rail, truck or pipeline, unlike natu- Now that these facilities are back dustry is important to the Delaware 2009, investing $72 million in the site ral gas which is more limited,” said on-line, for the most part residents are River ports and to consumers as a with room to expand, to strengthen its Butters. more willing to work with companies whole. Local business operators and east coast presence. “Prices are depressed here because than to fight them at every turn. Navigator Gas Transport Co. labor have responded admirably to the of the abundance, but very strong in Transporting increasing volumes doesn’t have a home on the Delaware changing environment. Our ports are other countries. Pennsylvania is sit- of oil by rail changes the safety and River yet; but CEO David Butters sure to prosper as a result of their ef- ting on a treasure trove of assets.” security regimen as well. Though wants to lease space at Tioga terminal concerns stemming from recent rail forts.” Rochford said. The Beacon 13 Winter 2013

pants/members input the pollution spill infor- The Tidal Tool uses the National mation of the spill’s tidal trajectory on a map. Q&A With PWD’s mation. The members meet regularly to re- Oceanic and Atmospheric Administration’s With this functionality, the EWS provides a Kelly Anderson view the operation of the system, discuss (NOAA) Delaware Bay Operational Fore- more accurate tool to predict the spill tra- water quality events, and consider improve- cast System (DBOFS) model and Physical jectories in the tidal Delaware River and im- continued from page 1 ments. Because the technology for water Oceanographic Real-Time System prove event response. quality monitoring devices and information (PORTS) data as the source of real-time hy- Q: Who has access to the EWS? How Website and Database Portal: The EWS systems is advancing rapidly, the EWS is drodynamic forecast predictions for the tidal does someone become a partner? website is the operational backbone of the continuously improved to assure that it re- Delaware River and Bay. Real-time tidal system. The website also includes a Spill mains effective into the future. As the region modeling code and tidal flow results have A: The Early Warning System is a secure Model Analysis Tool that allows users to sim- grows, there will be increased reliance on a been integrated into the EWS web interface, private network. The EWS Partnership in- ulate and track spills for spill response pur- dependable source of high quality source providing greatly enhanced detail on tidal cludes representatives from industries who poses. water, as well as the need to manage addi- flows in the Delaware reaches. withdraw water from the Schuylkill and PWD has been implementing upgrades tional threats to water quality. When a water contamination event in Delaware Rivers for daily operations, as over the years to ensure that the EWS con- Q: Can you describe how the Port Se- the lower Delaware is reported, the EWS well as public and private drinking water tinues to serve as an advanced surface water curity Grant Program helped to advance user can log into the EWS web site to see suppliers in the coverage area, and repre- protection system, addressing the growing the EWS? the projected spill path of the contaminant sentatives of government agencies. Inter- demand for water supply monitoring and for and the estimated arrival times to the water ested parties can contact Ms. Anderson at notifications about water quality events. A: In May of 2011, the Philadelphia Water system intakes along the spill path. EWS 215.685.6245 or [email protected] EWS is helping to protect the drinking water Department was awarded funding from the members can now see the tidal movements for more information. supply of over three million people in the re- Port Security Grant Program to upgrade in the Delaware River and display an ani- gion. EWS mapping and the spill analysis tools. In January 2012, PWD engaged an appli- Q: How does the EWS work? cation development team, which completed A: The single most important function of the the improvements in June 2013. EWS is to provide rapid notification of water The project involved upgrading GIS quality events that might impact public drink- mapping technologies used to locate and ing water supplies and industrial water in- map spills for EWS users. The upgrade al- takes. One key benefit provided by the Early lows the user to locate spills more effec- Warning System is to assure that rapid com- tively when reporting an event and also munication of emergency events helps avoid improve geographic coverage and display intake of potentially harmful water into drink- of the river contamination when the user ing water treatment plants or industrial water intakes. views reported events. The system allows members to rapidly The objective of the Tidal Spill Trajec- enter information about water quality events. tory Tool is to accurately predict the move- Once an event is entered, the EWS auto- ment of chemical, biological and matically notifies all registered users about radiological agents in the lower Delaware the event, typically within 10 minutes of an River under tidal influence. Thus, in the event report. The system utilizes email, com- event of an accidental or deliberate con- puter telephony, and a secure web site to tamination event, this tool adds capabilities communicate EWS information to the mem- that existing tidal models cannot offer, by in- bers. corporating the effect of wind and weather One of the most valuable and unique as- on the movement of water pollution in tidal pects of the EWS is that system partici- settings. The Beacon 14 Winter, 2013

of bulk cargo and heavy industrial use. While Legal Ease the liquefied natural gas industry was not de- veloped in 1905, similar loading and unloading continued from page 8 activities were occurring on wharves. Future Development on the Delaware River within the twelve-mile circle. and Bay A riparian landowner has a bundle of rights to use the waters his property abuts, includ- For future port development on the ing the right to wharf out and to access navi- Delaware River and Bay to be successful, gable waters of a stream. However, these New Jersey, Delaware, and Pennsylvania rights are subject to law and regulation of the must work together. state in which the stream is situated. The For centuries, Delaware and New Jersey Supreme Court thus concluded that New Jer- have fought over jurisdiction on the Delaware sey’s riparian rights within the twelve-mile cir- River. Consistency, port growth, and the re- cle are subject to Delaware’s regulation. sulting economic development on the While New Jersey had the right to construct a Delaware River and Bay could be properly bal- wharf, it could only do so if it did not violate anced through cooperation with the need for Delaware law. responsible environmental regulation. Rather than hold that New Jersey’s ripar- Today, some policymakers are suggesting ian rights within the twelve-mile circle are sub- that Delaware revise its CZMA in light of ject to Delaware’s law and regulation, the changes in both the environmental and eco- Supreme Court held that New Jersey may nomic climates since the Act was first written. grant and exercise authority over “ordinary As clearly illustrated here, decisions made by and usual riparian rights” for the construction, one state can dramatically affect the activities maintenance, and use of wharves within the of another. twelve-mile circle extending beyond the low- It is worth noting in a later suit brought by water mark. Delaware may exercise govern- Delaware against the Federal Energy Regu- ing authority over those wharves to the “extent latory Commission, FERC determined that the that they exceed ordinary and usual riparian Crown Landing project was subject to coastal uses.” Though the Court failed to define what zone consistency reviews and approval by is considered ordinary and usual riparian New Jersey, Delaware, and Pennsylvania be- uses, it determined that the Crown Landing fore FERC approved construction of the proj- project went beyond the ordinary or usual and ect. therefore, Delaware had the authority to pro- hibit the construction of the facility. Interstate cooperation is the key to the fu- The Supreme Court’s decision was not ture success of the development of the tri- unanimous. The dissent argued that the ma- state regional port. jority’s opinion failed to explain the “extraordi- nary character” test it set forth and also that Scott Gunst is a Licensed Deck Of- the particular riparian right at issue in the case ficer and Associate in the Law Firm of was the right of wharfing out. Reeves McEwing LLP with offices in The activity at issue is nothing more or un- Philadelphia, Pennsylvania and Cape usual than what would have occurred in 1905 May, New Jersey. He may be reached when the Compact was created. In 1905 at 267-324-3773 or sgunst@lawof- wharves were used primarily for the transfer sea.com. The Beacon 15 Winter, 2013 Hueber Launches New Facility in Marcus Hook

On October 18, the Moran family opened their new Marcus Hook, Pennsylvania fa- cility for Hueber Launch Service. Celebrating the event are (l-r): Maritime Ex- change Chairman John Reynolds, Pilot’s Association President Capt. Ward Guilday, PA State Representative Steve Barrar, Hueber Launch Services Managing Partner William Moran, and Exchange President Dennis Rochford.

On October 18, members of the rar, (R- PA/160), members of the Mar- Delaware River maritime community cus Hook Borough Council, the Coast gathered at 45 E. Delaware Avenue in Guard and maritime industry enjoyed Marcus Hook, Pennsylvania to cele- the non-stop slide show that captured brate the opening of the Moran fam- the timeline of extensive and complete ily’s newest office and warehouse at renovations of the refurbished site Hueber Launch Service. over a 12-month period. “We believe in the strength of the The site will house six full-time maritime industry on the Delaware employees and additional part-time River, and this investment shows our employees, who provide round the level of commitment to its growth,” clock personnel and stores transfer said Managing Partner Bill Moran. services. “The new facility will provide more “It is extremely gratifying to see comfort to our customers as well as in- this type of development in our creased confidence in the warehousing Delaware River port community, and of stores awaiting final delivery.” we wish Hueber Launch Service great Guests, including representatives success in this new business enter- for Congressman Patrick Meehan (R- prise,” said Exchange President Den- PA), State Representative Steve Bar- nis Rochford. The Beacon 16 Winter 2013 Editorial DBRC – Not Just Tankers Adieu, Mr. Martocci Any More Anyone in this region who conducts business with Customs and Coop a valuable resource for the entire region Border Protection knows Allan Martocci. This fall, Al quietly retired from his position as CBP Area Port Director for the Consolidated The Delaware River and Bay Coopera- In addition, recent changes in the com- Philadelphia Port. A respected member of the Delaware River mar- tive (DBRC) may not have as long a his- plexities of the petroleum industry in the itime community, Al served CBP for 47 years, including 37 years in tory as many of the other maritime Delaware River and Bay and the evolving the Delaware River port region and six years as Area Port Director. organizations in the tri-state region, but it relationship between the industry and gov- During his career in Philadelphia, including his many years as an certainly has made its mark. With a pri- ernments since the Deepwater Horizon Oil assistant Port Director, Al time and again expressed his willingness mary purpose to plan for and respond to oil Spill have reshaped the preparedness and to work with “the trade,” as he calls us, to facilitate international com- spills on water in the Delaware Valley, the response expectations placed on the indus- merce. Although he often didn’t provide the desired response to is- DBRC is focused on sensitive area protec- try. Recently, the organization launched a sues raised by the maritime business community, Al left no doubt that tion, open water skimming, and strategic new program to provide spill management he was a man committed to his CBP mission. planning. services, including personnel and technical One thing was certain: Al has been among of the region’s fore- To meet this goal, the Coop, incorpo- resources to assist member companies dur- rated as a 501(c)(4) “social welfare” non- most leaders in his ardent determination for and support of the Mar- ing a response/recovery effort should one itime Exchange Maritime Operations Committee, and he doggedly profit organization, is responsible for the occur. operation and maintenance of three major worked with Exchange members to improve processes and solve It is likely that many in the maritime problems to the extent he was able. Oil Spill Recovery Vessels (OSRVs), open community may not even be aware of this water skimming systems, numerous sup- The Exchange thanks Al for his integrity and his service to our re- valuable local asset. Those in the container port vehicles, including a crane truck, and gional port community. We bid congratulations to Al for his ex- and general cargo sectors have not histori- several storehouses of oil recovery equip- traordinary career and wish him a long, happy and healthy retirement. cally been focused on oil spill prevention ment. All of this is managed with a staff of and response. But with the Coast Guard’s only 18 people, 10 of which serve as rotat- promulgation of new Non-Tank Vessel Re- ing crews on the major OSRVs. The DBRC also plays a large role in the sponse Plan requirements, all vessels port’s preparedness against spills. In con- greater than 400 gross tons are compelled junction with the US Coast Guard, and the to develop and operate under Vessel Re- Letters... states of Delaware, New Jersey and Penn- sponse Plans just like those required for oil sylvania, the organization surveys all sen- tankers under the Oil Pollution Act of Dear Editor: 1990. sitive areas annually, and these surveys I would like to share with your readers the success ensure the Area Contingency Plan is kept Of concern are the oil transfers associ- we at Rhoads Marine Industries have enjoyed through up to date. The ACP provides for effective ated with bunkering operations and poten- our advertising efforts in the Maritime Exchange implementation of response actions to pro- tial breaches of bunker tanks. The final “Beacon.” Starting any new company or business line tect the people, natural resources, and prop- rule outlines the requirement to plan for re- is never easy, especially in a down economy. When sponding to a worst case discharge and a contacted by potential customers interested in our erty of the Delaware River and Bay coastal ship repair/lay berth services, I always ask how they and inland zones from the impacts of oil substantial threat of such a discharge. So were informed of our business. Often the reply is spills. now all commercial cargo ship owners/op- that they saw our advertisement in the Maritime Ex- Given that the states have no obligation erators will be required to contract with Oil change “Beacon.” Having been a reader of the “The to conduct these surveys, without the Spill Removal Organizations (OSROs). Beacon” for many years, I can also attest to the “readability” of the publication, focusing on the Coop, it is likely these specific annual re- For obvious reasons, carriers which call local port and its community makes it an enjoyable views and updates would not take place. at multiple U.S. ports would prefer to deal and informative read from cover to cover. And while we hope the DBRC is never with one OSRO nationwide rather than dif- again activated, it should give us all a great ferent organizations in every port they call. Sincerely, deal of comfort to know that President Yet there is a very strong argument to be Captain John Gazzola Rich Gaudiosi and his team are on the job. made for utilizing the services of a local re- Rhoads Marine Industries As will be explained, this is more impor- sponse organization like DBRC. tant now than it has been in the past. Foremost among these is the pre-stag- The DBRC was organized by the local ing of almost 100,000 feet of boom and petroleum industry in the mid-1970s – well speedy response of assets already nearby. The Maritime Exchange encourages readers of in advance of the Exxon Valdez incident The reality is that most other response or- The Beacon to comment and give us your thoughts on any and its resultant federal legislation – and ganizations simply do not have similar ca- article we have published or other maritime-related issues. continues to be supported by the oil indus- pabilities ready to go in this region. And Please send us your “Letters to the Editor” try today. Since its founding just over 30 even those not directly involved in spill re- years ago, the organization has responded Via email to sponse understand that the faster the spill to almost 140 events. Throughout its his- [email protected] is contained, the faster it is cleaned. The tory, the Coop has been driven by the lead- result: less damage to natural resources Via mail to: ership of the industry it serves and its focus Maritime Exchange and man-made structures along our water- on strategic thinking. Attn: Beacon Editor way and reduced disruption to businesses But like other aspects of the oil industry, 240 Cherry Street, Philadelphia, PA 19106 using our waterways. And with the faster the environment under which the DBRC must operate is changing dramatically as remediation comes an exponential decrease well. in the costs to mitigate a spill. The Coop has a fixed overhead budget Also of import is the local knowledge which is funded by its members, largely the Coop staff bring to bear. The Coop is based on volume and throughput. So if one deeply engaged in this community, partic- MARITIME EXCHANGE refiner decreases or otherwise changes the ipating in exercises, drills, planning initia- for the Delaware River and Bay focus of its operations, as has been the case tives and, equally relevant, the myriad in this region over the last several years, the meetings and networking events that are so entire revenue model must change. Fur- critical to fostering relationships among the John Reynolds, Chairman ther, as its members look to land-based oil many partners involved in any incident re- Uwe Schulz, Vice Chairman Dennis Rochford, President transportation from the shale gas fields, sponse. Lisa B. Himber, Vice President Those who are DBRC members are for- versus on tankers from foreign ports, so too A. Robert Degen, Esq., Secretary/Solicitor must the DBRC reevaluate its operations to tunate to have such a resource at their dis- Dorothy Mather Ix, Treasurer ensure it continues to serve its members posal. Those of us who live and work in and the tri-state region as a whole. this region are equally lucky. The Beacon 17 Winter 2013

Switching Gears on Maritime On-Line Development Since the conversion of the Mar- Several other AIS enhancements are itime On-Line (MOL) TRACS® system also on the books for future develop- to the Automated Commercial Environ- ment. The Exchange will update the ment (ACE) last year, the Exchange has geofence functionality that currently al- has been busy working on modifica- lows users to set a logical zone on the tions to the system, some resulting from river with notifications generated when federal automation changes and others a vessel enters or exits the zone, or ex- based on suggestions from system par- ceeds a speed within the zone. The en- ticipants. hancement will allow a “moving” MOL was conceptualized and de- geofence to be created on a vessel – this veloped in the 1980s as a community- will follow the vessel and provide alerts based system. The local participants when other targets broach the perimeter and the Exchange came together to im- drawn. plement a system that not only met fed- In late October, Coast Guard re- eral reporting requirements, but also leased a new schema to report arrival made sense from a business perspective and departure notices. This is the latest to streamline operations through the of several modifications released by collection and dissemination of advance Coast Guard over the past two years. schedules and other information. This Probably the most significant change is a practice that continues to this day. incorporated the reporting of Longshore Over the past several years, meeting Worker Declaration information which the many changes to federal reporting replaced the paper filing of the Customs requirements has been a primary focus I-418 form. of the Exchange. Customs and Border Other modifications to NOA/D On- Protection implemented Advanced Se- Line requested by users have been curity Filing and stow plan data (known made, such as numbering crew and pas- as 10+2), and then mandated the migra- sengers for easier identification, data tion from the legacy Automated Com- entry enhancements to the spreadsheet mercial System (ACS) to ACE for and the web site, and implementing ad- reporting ocean cargo manifests. Dur- ditional error checking. Other modifi- ing this time, Coast Guard promulgated cations are either under consideration or several changes to the Advanced Ar- in progress. rival and Departure Notice system This year, several enhancements which included new data elements and have already been implemented to many changes to the business rules for TRACS, and others are on the way. reporting. Among the changes already made in- These changes required an enor- clude filing of partial Permit to Trans- mous amount of effort, planning and re- fer quantities, automatically closing sources which kept the Exchange’s IT Foreign Remaining on Board bills of and Operations staff busy with rules re- lading, and other enhancements that view and specification development, help prevent data entry errors. The Exchange is also making sev- code testing (internally and with exter- eral modifications as requested by the nal users), deployment, and finally sup- user community. These changes will port of the new systems. streamline the data entry and reporting Now that major federally-mandated process and are aimed at reducing data conversion projects are complete, the entry errors, and increasing productiv- Exchange is switching gears to work on ity through improved data entry some of the many enhancements to processes. Maritime On-Line suggested by system Last, but certainly not least, is the users. project to overhaul the entire MOL sys- Exchange staff collects and reviews tem back end to be more compatible all requests from participants, and pri- with newer versions of web browsers. oritizes them based on business needs It has been several years since the last and impact to the overall user commu- major system re-write, and industry nity. Enhancements that impact larger standards have been altered to the point segments of the user community are that much of the basic MOL infrastruc- given a higher priority. However, fed- ture must be modernized to maintain eral mandates that affect compliance al- compatibility with new PCs, operating ways take precedence. systems, and web browsers. One of the major projects now un- The Exchange maintains, operates, derway involves enhancements to the and supports Maritime On-Line 24 Automatic Identification System (AIS), hours a day, seven days a week. The the real-time vessel position component development of the system would not of MOL. The Exchange is currently up- have been possible without the active dating the core engine that powers the participation of its user community that system, and is re-writing the vessel re- has provided valuable direction and play functionality. Just like any other suggestions for almost 30 years. system, periodic updates to operating The Exchange is also extremely systems and software versions are nec- grateful to the States of Delaware, essary to maintain compatibility and Pennsylvania, and New Jersey for their functionality with current trends and continued support of the Maritime Ex- hardware, and the upgrade of the core change’s mission to help promote and has become necessary to implement fu- protect the businesses of the Delaware ture enhancements the Exchange has River and Bay. slated. Partial state funding has allowed the The new AIS replay functionality Exchange to maintain the community- will provide better tools to response and based system that not only provides a security personnel by providing a more cost-effective mechanism to meet fed- user-friendly interface, and it will ex- eral mandates but also enhances the in- pand the time-frames through which frastructure of the Delaware River and vessels can be tracked. The system will Bay by providing advanced vessel allow a replay of any geographic area schedules, real-time positions, and ship- for a duration of up to 12 hours. The to-shore communication services that user can step through vessel movements increase the competitiveness of the re- in one minute increments, and control gion, those that operate on the river, and the speed of the recorded playback. their customers. The Beacon 18 Winter 2013

Notes & News Upcoming Events Royal Pest Solutions celebrated the 30th anniversary of its Vice President of Operations John Achzet in September. John is an integral part of the Royal Family and began as a pest management technician. He rose to take 12/05/13 Annual Joint Holiday Dinner over development of Royal’s fumigation business in 1987. He remains ac- Ballroom at the Ben, Philadelphia, PA tive in both divisions, as well as in Royal’s leadership role in the Food Pro- Contact Eileen Bartlomiejus, 215-922-6293 or [email protected] tection Alliance and its director of Alliance Pest Solutions, a related business Traffic Club of Philadelphia Holiday Party operating in the Midwest and Gulf states. Known for his maxim that “you’re Union League, Philadelphia, PA only as good as your last fumigation,” John has trained fumigators, pio- Contact [email protected] neered new applications and new treatments, consulted on design of facil- 12/11/13 Maritime Exchange Executive Committee Meeting ities and spoken at international conferences. Congratulations, John! DRPA/PATCO Board Meetings Ricardo Maldonado, Executive Director of the Chilean & American 12/12/13 Mariner's Advisory Committee Meeting Chamber of Commerce of Greater Philadelphia, was voted Business La Veranda, Philadelphia, PA Person of the Year at the Hispanic Choice Award ceremony held at the Mer- Contact Scott Anderson: [email protected] or 215-925-1524 riam Theater in October. Ricardo received the Trailblazer award for his 12/14/13 Independence Seaport Museum Annual Parade of Lights on the Delaware highly successful work between the East Coast of the United States and the 12/17/13 Philadelphia Regional Port Authority Board Meeting Republic of Chile. “Ricardo is an outstanding leader, and our region has benefitted greatly from his tireless efforts to promote and sustain strong 01/08/14 Maritime Exchange Board Meeting commercial and trade relations between Greater Philadelphia and the Re- 01/14/13 Tri-State Maritime Safety Association Board Meeting public of Chile,” said Rob Wonderling, President and CEO, Greater Philadelphia Chamber of Commerce. “I am honored to work together with 01/21/14 Seamen's Center of Wilmington Board Meeting Ricardo and the CACC, as well as our other affiliates, to strengthen the Philadelphia Regional Port Authority Board Meeting business community in Greater Philadelphia.” ¡Muy bien, Ricardo! Traffic Club of Philadelphia Annual Dinner Hyatt Regency Penns Landing, Philadelphia, PA 02/12/13 Maritime Exchange Executive Committee Meeting Welcome Aboard 02/18/13 Philadelphia Regional Port Authority Board Meeting 02/19/13 DRPA/PATCO Board Meetings Pacific Delaware, Inc. Philadelphia-Israel Chamber of Port of Wilmington Commerce 03/11/13 Tri-State Maritime Safety Association Board Meeting 1 Hausel Road 200 South Broad Street 03/12/13 Maritime Exchange Board Meeting Wilmington, DE 19801 Philadelphia, PA 19102 03/18/13 Seamen's Center of Wilmington Board Meeting Phone: 302-571-4700 Phone: 215-790-3722 Fax: 302-571-4702 [email protected] [email protected] www.phillyisraelchamber.com For a complete schedule and event details, visit www.maritimedelriv.com