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S Administrator’s Colum n, continued from page 1 environmentally responsible alternative to the existing realized through September. The recovering economy is surface modes of transportation. Their operating vessels e reflected in the demand for raw materials in the Great are modern, state-of-the-art, fit-for-purpose, short-sea Lakes, resulting in a boost in iron ore and steel shipments. shipping feeder vessels. The service promises to have a financial and environmental advantages for the greater Cleveland area and beyond, and its launch is much w Even while this season is bringing an uptick in cargoes and transits on the System, we all must be proactive in anticipated. developing new business, new cargoes, new routes, and a new vessels to grow the System. Cargo growth is our most Without a doubt, there are some regulatory hurdles pressing issue. At the top of the list for trade development that require attention; the myriad of state ballast water y is short sea shippin g— the movement of containers regulations, the Harbor Maintenance Tax (HMT) on through the lakes. Most container traffic entering shipping, and various security-related challenges to
C Montreal and Halifax is destined for the Midwest, name a few, that continue to place limitations on the demonstrating the need for expanded use of Great Lakes industry. Work continues on all these fronts with pos - o shipping. It is important to track trends to identify areas sible resolution of the HMT issue coming ever closer of focus. Much of the traffic from the Canadian ports to fruition. Along with 51 Members of Congress who m enters the U.S. on truck through congested bridges and have signed on as cosponsors of the HMT waiver border crossings. We need to capitalize on the efficiencies legislation (H.R. 3486), a litany of maritime trade of using maritime transportation to move these goods. associations and labor organizations has endorsed this
p The Erie Inland Port project is doing just that. proposal and they continue their work to generate support for the bill. Although there are few legislative vehicles remaining in the 111 th Congress to which the a The Erie Inland Port is poised to begin container opera - tions with minor upgrades and equipment purchases. HMT bill might be attached, there is still a possibility this goal can be achieved. If not, the proposal will be s The Greater Erie Industrial Development Corporation was recently awarded a $500,000 grant from the reintroduced and return in an even stronger position s Department of Commerce to move the project forward. to be approved in the next Congress. The project is multifaceted and multimodal (with rail and highway connections) and is designed to alleviate a I think it’s worth noting that the November election number of problems related to shipping logistics and the brought some significant changes to Washington, D.C. environment by initiating more efficient and sustainable and in a number of state capitals around the Great methods of shipping and transportation of goods. There Lakes. Although we are losing some close Congressional are currently few alternatives for increasingly problem - friends of the Seaway System across the Great Lakes atic, time strapped and expensive modes of transportation states, there are some new faces and strong alliances that in the region. Container shipping in the Port of Erie we can look to for support in the new Congress. New would have certain measurable outcomes including committee chairmen will be chosen and members will reducing costs for shippers, relieving congestion on land vie for new leadership positions. There are six new gov - border crossings between the U.S. and Canada, reducing ernors in Great Lakes states, and they are familiar with emissions and energy consumption, and providing our issues. The education process will continue, but we savings on landside transportation infrastructure main - have come a long way in communicating our messages tenance. The project received the federal grant in large and developing good relationships with those making part because it was able to demonstrate the potential decisions that impact the maritime industry on the to create long-term, positive economic impacts in its Great Lakes. surrounding community. I believe this case can be replicated in other Great Lakes port communities. On another positive note, the Seaway’s Asset Renewal Plan is allowing us to ensure system reliability and infra - More and more, entrepreneurs are looking at cross lakes structure integrity. In just two years, over $33 million service that is rate and time competitive. Great Lakes has been spent to upgrade the U.S. locks and facilities Feeder Lines is currently working with the Port of and every indication is that the full ten year plan will Cleveland to develop a new container shipping service continue to receive Federal dollars annually. from Cleveland to Montreal that could begin as soon as next spring. It would provide a competitive, reliable, continued on page 3
2 FALL 2010
Administrator’s Colum n, continued from page 2 S and verifiable information about the Seaway System and its
Also underway is an important evaluation of the economic users that can be widely utilized for educational purposes. e impact of the Great Lakes St. Lawrence Seaway System. For the first time, in a single study, Canadian and U.S. benefits As we head into the final months of the 2010 shipping season, a and impacts will be evaluated to give a comprehensive snap I anticipate a strong finish and believe there is cause for shot of our binational system. This economic impact study continued optimism for next year and beyond. But we must w will serve to update Canadian and U.S. data regarding continue to be proactive and persistent in promoting mar - employment and tax revenue. Data will be provided at the itime transportation and the Great Lakes-Seaway System. regional level, by country (U.S./Canada), and by state and Get engaged in the debate, make your voice heard, and do a province. This study, scheduled for completion sometime your part to help get the facts about the industry out there early next year, will provide a great deal of critical, factual in the public domain. y C o
Seaway Ports Enjoying Magic Grain Season , continued from page 1 China’s dominance of the world steel market over the m 10 percent of the Nation’s grain? Several factors account past decade makes it the hands-down importer of iron for that such as exchange rates, location of importing ore as well, and while freight rates were healthy in nations, and freight rates. When the books close on the spring 2010 given strong demand in Asia for steel, p 2010 navigation season it is clear that freight rates will those rates dropped like a rock on the Baltic Dry Index have played the decisive role. (BDI) by the summer. The contraction was sufficiently steep and some analysts say it not only impacted the a A brief reminder that historically about half of larger Aframax and Panamax ships that typically ferry s America’s grain moves by barge down the Mississippi ore and grains to the world’s largest steelmaker, but also deflated freight rates for smaller vessels like
River to the Gulf of Mexico is important. Barge traffic is s extremely efficient, safe if slow, and each fall hundreds Handymax and Handies that service the Great Lakes of barges move south to New Orleans where dozens of via the Seaway. Panamax ships load tens of thousands of tons of grain continued on page 4 which head primarily to Asian markets through the Panama Canal. Traditionally, barge traffic freight rates are highly competitive, but this year barge freight rates from the Upper Mississippi to the Gulf rose dramatically this fall. Some shippers, not surprisingly, scrambled to seek alternate routes, and the Seaway began to look better and better. The binational waterway had always been a shortcut to European and North African markets, but it had increasingly lost tonnage since the 1980s to other routes as grain totals to Asia grew and tonnage across the Atlantic shrunk.
The dramatic spike in barge rates for the Upper Mississippi reported by the U.S. Department of Agriculture in its weekly Grain Transportation Reports in mid October just as the corn and soybean harvests came to market early made it clear that a second transportation option was des - perately needed. By then, many of the experts had already explored alternate routes. The USDA numbers showed a rate six times the benchmark tariff of $44 per ton, besting all previous highs.
Increased barge freight rates alone, however, would not have catalyzed the stampede that has occurred since August. What has? The saying ‘steel in, grain out’ — the jingle that has accurately described the business formula for the waterway over half a century, says it all.
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SeawayCompass 4 FALL 2010 S HIGHLIGHTED GUEST Now, on the verge of leaving the port to go into semi- retirement form the business world, I feel privileged to e Ross Gaudreault, have had such a wonderful run. I want to salute every - one who has crossed my path over the years and to a President and Chief Executive thank everyone who joined in the partnerships that
Officer, Quebec Port Authority have brought success to the port. w
On December 31, I will be The Québec Port Authority is an independent federal leaving the Port of Québec, agency created under the Canada Marine Act. The Port a after steering it for 23 years. of Québec is one of Canada’s main ports. Its principal Prior to joining the port, activities include bulk goods transshipment, cruise y I was lucky enough to work ships, and a host of recreational and urban activities. for the Irving family for According to SECOR Consulting, in 2007 activity in C about 20 years. This lengthy the maritime and port sector of Québec’s maritime professional journey has industry provided close to $800 million in economic o brought me a lot as far as benefits across Canada, over $160 million in taxes the human dimension goes across all levels of government, and invaluable support m and I like to believe that in maintaining nearly 9,800 jobs. I was able to give back as much to my close ones, my partners and my region. Starting January 2011, Mario p Girard will take over as the President and CEO for the It is impossible for me to sum up a 45-year career a through only one project or challenge. However, Québec Port Authority (QPA). Mr Girard will throughout the years, the common denominator s in the major projects in which I worked is the replace Ross Gaudreault, Partnership. This approach was always my best move. who is retiring from the s Be it in business development or public controversy, port on December 31. partnerships were always at the heart of my philosophy. Partnerships are, in my opinion, the cornerstone of With over 25 years of experience in both local and my greatest professional achievements with clients, international business, Mr. Girard’s background is a institutions, governments, associations, etc. perfect match for the expectations of the QPA board.
At the heart of every business arena is the same reality: Mr. Girard’s professional background includes work people. I firmly believe that the will and desire of in the IT sector, where he made a made a name for yesterday’s entrepreneurs is the same as that of the himself by founding Gespro Technologies and Nstein entrepreneurs of tomorrow: to do better. When I arrived Technologies. At the international level, Mr. Girard has at the port, the situation was different, customers were accrued significant experience in terms of market rare and the future was uncertain at best. Twenty-three development, business acquisition, and private and years later, thanks to excellent partnerships, the port’s public project financing. activities have more than doubled and we are looking at extraordinary potential.
Twenty-three years at the head of one of Canada’s most important ports is quite something to be proud of. Let’s not forget that the Port of Québec was incor - porated in 1858 and has been part of the history of the city ever since it was founded in 1608! The fact that the best year ever at the port was recorded in 2008 and that this record will soon be broken within the near future is of great pride to me.
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SeawayCompass 6 FALL 2010 S SLSDC in 1978, serving in several positions within the SLSDC Employee Corporation; after 32 years of service, we salute Carol e Honored by the Secretary and her accomplishments. of Transportation a w Carol Fenton, Deputy Associate Administrator, was recently honored at The Secretary’s 43 rd Annual Awards
Ceremony held in Washington, D.C. Mrs. Fenton was a awarded the Silver Medal, which is the third highest award within the Department given by the Secretary in y recognition of exceptional meritorious service to the
Department or Federal Government, or for exceptional C achievement that substantially contributed to the accomplishment of the Department’s mission or major o programs. Secretary LaHood cited Mrs. Fenton’s excep - tional leadership and participation on several binational m strategic projects, such as the Ballast Water Working Carol Fenton receives her prestigious DOT Award from Group, Ice Observational Study, Draft Optimization, Ray LaHood, Secretary of Transportation (left) and th and as the 50 Anniversary co-Chair. Carol joined the Craig Middlebrook, Deputy Administrator (right). p a s The service is still in the planning stage, but if it comes Cleveland Port, Vessel to fruition the company’s two cargo vessels— Dutch s Owner Advance Effort Runner and Arctic Sea —will make regular runs between to Start International Cleveland and Montreal. Will Friedman, CEO of the Cleveland-Cuyahoga Container Service County Port Authority, described the service as “an exciting economic opportunity for the port, the The Port of Cleveland is aggressively pursuing the near region and the state.” He stressed that the port does term prospect of hosting a container shuttle service. not require capital investments or enlarged facilities Earlier this month, the port authority received a visit to begin moving containerized freight and other non- from Steve Shumway, managing partner of Great Lakes containerized cargoes, declaring, “We have the space, Feeder Lines, a Canadian company headquartered equipment, a capable terminal operator and a pro- in Burlington Ontario. Mr. Shumway met with port ductive waterfront workforce in place. We can move officials to discuss the possibility of launching a containers today!” Cleveland-Montreal feeder service in the spring of 2011.
Great Lakes Ballast Water Collaborative
The written report of the most recent Ballast Water Collaborative meeting which took place from July 20 –21, in Duluth, Minnesota is now available on line. Go to our binational website, www.greatlakes-seaway.com , and look under the environmental tab.
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SeawayCompass 8 FALL 2010 S comments from the public to be submitted to the Environmental Protection docket on or before December 31, 2010. The VGP is e Agency Publishes a Notice a Federal Water Pollution Control Act (FWPCA)
National Pollutant Discharge Elimination System a in the Federal Register (NPDES) permit that authorizes, on a national basis,
discharges incidental to the normal operation of non- w On October 29, the Environmental Protection Agency exempt vessels. Among the issues of interest to EPA (EPA) published in the Federal Register a notice stating is whether any effluent limitations or reporting require - it will hold a listening session in Washington, D.C. on ments should be revised. The Federal Register notice a December 15 to obtain suggestions from the public for is 75 Fed. Reg. 66757 (October 29, 2010) and can be improving the next Vessel General Permit (VGP). If you viewed at www.gpoaccess.gov/fr . y prefer to provide written comments, EPA is requesting C o
Upcoming Events m
December January 2011 p
December 2, 2010 January 19 a Great Lakes Stakeholder Appreciation Reception Ballast Water Collaborative Meeting
Montreal, Québec Fairmont Royal York s Contact: [email protected] Toronto, Ontario (202) 366-0095 Contact: Marvourneen Dolor s [email protected] (202) 366-6510 December 8 –9, 2010 Great Lakes Panel on Aquatic Nuisance Species Ann Arbor, MI Contact: Kathe Glassner-Shwayder [email protected] (734) 971-9135
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