PRSRT STD U.S. POSTAGE PAID WILMINGTON, DE PERMIT NO. 1635 THE MARITIME EXCHANGE 240 Cherry Street Philadelphia, PA 19106 BEACONFall 2014 ADDRESS SERVICE REQUESTED Volume 24, No.3 http://www.maritimedelriv.com w [email protected] Proposed APHIS fee increases would Port of Wilmington in squeeze commerce Presidential Spotlight After nearly a decade of flat rates, in late April arrival. “For frequent callers, this would mean a the U.S. Department of Agriculture Animal and staggering increase,” Himber said. Plant Health Inspection Service (APHIS) proposed Dole Fresh Fruit Company, which signed a 15- fee increases in two major service areas. year lease at the Port of Wilmington last December, The first would raise costs for certain conveyance would be hit hard by the new fees. “The impact operators for Agricultural Quarantine Inspection, on our operation will be substantial,” said David or AQI, program services. Only rail inspections Lennon, terminal manager for Dole. “If these and air passenger fees would be decreased. increases go into effect as proposed, we could see Also included in the proposal are new fees for a 210% increase in our AQI fees.” “treatment” services, such as cold treatment and With nearly 200 ships arriving at Delaware fumigation, as well as vessel passenger processing. River ports with grapes from Chile each year, the The second involves rates for overtime services new treatment fees would also have a significant for APHIS inspectors. economic impact for the tri-state region. Other A coalition consisting of over 30 national and commodities will be affected as well. Lennon regional associations – including the Maritime anticipates an additional $80,000 per year if APHIS Exchange – representing shippers, cargo and implements its proposed $375 fee for supervising President Barak Obama visited the Port of Wilm- cruise ship operators, truckers, importers and cold treatments and fumigations and bumps up the ington on July 17, using the busy port as a backdrop other interests quickly formed to respond to the inspectors’ overtime rates at the same time. Many to announce the “Build American Investment Initia- proposed rules. Shepherded by Gene Harrington, in the industry believe USDA will in essence be tive,” a plan to encourage private-public partnerships vice president of government affairs for the charging twice for the same service under this in building the nation’s transportation infrastructure. National Pest Management Association, the structure. Speaking before an audience of elected officials, port coalition worked throughout May, June and July to “As proposed, the increased and newly- leaders, customers and other stakeholders, the Presi- document the concerns. established fees will be incredibly disruptive dent said the program seeks to “rebuild transporta- “Upon review of the proposal, we became to port related businesses including importers, tion infrastructure in a long-term, responsible way.” extremely concerned about the impact of the fumigators, shippers, truckers, cargo vessels and Among other concerns the plan would address, Obama proposal on fumigators and their clients. We cruise ship operators,” Harrington said. Many – who supports the Delaware River main channel also recognized that this is a pretty far-reaching of the affected businesses are small entities that deepening project – cited the $2 billion in deferred in- rulemaking, and began reaching out to other will not be able to absorb these additional costs, frastructure maintenance projects throughout the U.S. affected sectors. Soon enough we had organized a especially in such a short time frame.” Shown in the immediate background is the I-495 pretty formidable group,” Harrington said. The Exchange and others are not opposed to bridge, which made national headlines when it was Of primary concern to vessel operators are the reasonable rate increases. “We recognize that it’s closed in June for emergency repairs. Though not 66% increases in AQI fees – from $496 to $825 been nine years since the USDA last adjusted these related to improper maintenance, the bridge closure per arrival. “In addition to raising the service fees, user fees,” Himber said. “In addition to the mind- underscored the importance of ports, roads, dams, APHIS has also proposed eliminating the caps,” numbing percentages the agency is proposing, bridges and other infrastructure to the nation’s econ- said Exchange Vice President Lisa Himber. Today, where we really have the problem is with some a vessel must only pay the fees on the first 15 of the internal overhead costs USDA is asking omy. In late July, DelDOT reopened the southbound voyages each year. Under the USDA proposal, the trade community to cover.” According to the lanes, a month ahead of schedule. Secretary Shailen ships would be required to pay the fees for every Bhatt announced that the northbound lanes may be continued on page 3 opened by Labor Day. Interview with Delaware Congressman PORTS gets one-year life support John Carney Port authorities again support maintenance costs Q: You have a long history of working On behalf of the entire tri-state maritime stakeholder community, The with the Port of Wilmington. What has Beacon extends its sincere thanks to the Diamond State Port Corporation, the been your past experience in helping Philadelphia Regional Port Authority and the South Jersey Port Corporation. the port to grow and be successful Just as they did last year, the authorities each provided $100,000 towards and where do you see it headed in the the annual operations and maintenance expenses for the Delaware River area future? Physical Oceanographic Real-Time System (PORTS®). A: My involvement with the Port of “We are extremely appreciative of this financial support,” said Exchange Wilmington goes back nearly 20 years. President Dennis Rochford, “and it demonstrates once again how well our When I served as Deputy Chief of Staff community works together on issues of common benefit and interest.” for then-Governor Tom Carper, I was The funding enlarges the window for continuing efforts to secure federal part of the team that negotiated the funding of this critical system continue. state’s purchase of the port from the City of Wilmington. It became very clear to me during that process how million grant awarded last year will A: Deepening the Delaware River Main important the port is to Delaware’s allow for heavier cargo to be placed Channel is a critical project not only economy as a hub for commerce and on the berths, attracting an additional for our Delaware River ports but for trade, as an asset to attract businesses 18 vessels per year. With these the economic competitiveness of our to the state, and as a source of investments and the completion of whole region. Roughly 135,000 jobs Democratic Representative John employment for thousands of working- the channel deepening I look forward are directly tied to commerce on the Carney is the state of Delaware’s lone class Delawareans. to participating in discussions related Delaware and thousands more would representative in the U.S. House. He Since I was elected to Congress in 2010, to further expansions of the Port of benefit from increased activity at our is a member of the Financial Services I’ve worked closely with our delegation Wilmington, including a container ports. As container ships continue to Committee, the Subcommittee on and the Maritime Exchange to ensure terminal on the Delaware River to get larger and larger, deepening the Capital Markets and Government that the deepening of the Delaware allow the port to fully take advantage Delaware River from 40 feet to 45 feet Sponsored Enterprises, and the River Main Channel is completed on of the new channel depth. is extremely important to maintain Subcommittee on Monetary Policy and time. I was also pleased to work more Q: You mentioned the Delaware River the competitiveness of our ports and attract new business to the river and Trade. We asked Rep. Carney to share recently with the Port of Wilmington Deepening Project. Could you give the Port of Wilmington. his thoughts with us on some of the on its application for a grant from the us an update on where that project Construction of this project was current issues on the Delaware River Department of Transportation under stands now and what still has to be first funded in 2011, and it has been maritime industry agenda. the TIGER Program to rehabilitate done? two of the port’s berths. The $10 continued on page 7 The Beacon 2 Fall 2014

Focus on port infrastructure a welcome change of pace

Congressional delegation, we have received our economy is inextricably linked to $104.8 million in federal funding for the transportation infrastructure has made this Delaware River main channel deepening long-sought victory possible. project. After the contracts currently underway are finished, more than 80% of the work to In his remarks, the President stressed the deepen the channel between Philadelphia and fact that public-private partnerships will be the sea will be completed. key to future success. You’ll also note in this issue of the newsletter an announcement of a At the national level this past spring, after new partnership between Holt and the South years of debate, Congress passed legislation, Jersey Port Corp. to develop the Paulsboro which the President then signed into law, Marine Terminal. We can’t think of a better authorizing and mandating full utilization recent example of how such public-private When President Obama visited the Port of of the harbor maintenance tax (HMT) for partnerships can create economic opportunity. Wilmington on July 17 to call on the federal its intended purpose – harbor maintenance This project will benefit not only the partners, government to fully fund transportation dredging and related projects. Our entire but the entire regional port community. There infrastructure projects vital to our country’s regional Congressional delegation supported are any number of other opportunities available economic security, he cited the critical role this legislation. to those with vision and creativity. ports contribute to our nation’s economy. That’s extremely positive exposure for an As mentioned in an accompanying article So, while Washington remains gridlocked industry sector which often takes a back seat in this edition of The Beacon, only about half by partisan politics, continuing resolutions and to other modes of transportation. of the $1.8 billion HMT collected annually uncertain economic conditions, port business is expended for port dredging projects, with people have played a huge role in helping to Among the plethora of foreign crises the balance being spent on other government educate the public and elected officials about throughout the Middle East and Eastern programs. By 2025, this legislation directs the importance of our industry. At times this Europe, the immigration crisis at our southern that 100% of these tax revenues be used to is an arduous and unappreciated task – the border and the ever present political gridlock in dredge out nation’s ports and harbors. With a need and the benefits associated with smart Washington, there is at least an understanding shipping channel of over 100 miles, our port investments in port infrastructure generally among policymakers that our nation’s will be well positioned to benefit from these don’t make front-page news. But given the infrastructure must be both maintained and additional revenues. successes noted above, it is well worth the expanded. effort. Five years ago, no one thought this There are more and more positive port- legislation had even a remote chance of related infrastructure projects stories to tell. becoming law. Again, a growing awareness Here at home, with the support of the Obama among our country’s policy makers that administration and members of our regional The Beacon 3 Fall 2014 Holt, SJPC partner to revitalize Paulsboro port In July Holt Logistics announced New Jersey issued several bonds to- it entered into a partnership with the taling $170 million to fund land and South Jersey Port Corporation for the infrastructure improvements to the construction of a new, state-of-the-art Paulsboro site, which had been closed marine terminal in Paulsboro, N.J. for more than a decade while a plan to The announcement was made at a redevelop the site was formulated. press conference located at the former The completed site will encompass Paulsboro BP refinery on the banks of 150 acres of waterfront land, with pos- the Delaware. The planned 190-acre sible expansion to 190 acres, and 2,600 facility will be the first new multi- linear feet of berth on the Delaware purpose marine terminal to be con- (l-r) Michael Holt, Tom Holt, III, NJ Governor Chris Christie, NJ Senate President River, all of which have been raised structed on the Delaware River in over Stephen Sweeney, Leo A. Holt, Thomas Holt, Jr. and Eric Holt gather at the site of the above the flood plain to resist -opera 30 years, and it is expected to create future marine terminal in Paulsboro to be developed in a partnership between Holt tional shutdowns in the event of major more than 850 permanent jobs when Logistics and the South Jersey Port Corporation. storms. Additional infrastructure im- the new Paulsboro Marine Terminal is provements include a dedicated bridge fully completed. rebounded and this region is one of was permanently shuttered. SJPC an- and off-ramp that connects directly to “The Delaware River really has the epicenters of a new phase of cargo ticipates completion of the $170 mil- I-295 and approximately four miles of become a rising tide that can create opportunities for traditional and new lion redevelopment of the Paulsboro rail track on site. abundant opportunities for new cargo commodities.” terminal by next year, and Holt will “This is a great day for the people and business growth for the entire re- The redevelopment of the Pauls- initially invest in excess of $10 million of Southern New Jersey,” said Kevin gion,” said Leo A. Holt, president of boro Marine Terminal is directly con- at the site, which represents the first Castagnola, executive director and Holt Logistics. “The Paulsboro Marine nected to the planned construction of phase of a private investment. As the CEO of the SJPC. “The Paulsboro Ma- Terminal will be a modern, multi-fac- the new Holtec International manufac- facilities and surrounding industrial rine Terminal will be a modern jewel eted facility that will greatly increase turing facility in Camden, N.J. As part development areas reach their full po- of the Delaware River, providing ex- shipping capacity for a full range of of its agreement with the SJPC, Holt tential, Holt anticipates larger invest- panded capacity to complement exist- commodities. The Delaware River will relinquish an important portion of ments into the port facility. ing marine terminal facilities. It will port complex stretching from Wilm- the Pier 5 port facility at the Broadway “[This] announcement is a prime become a destination for an even wid- ington to Trenton is known worldwide Marine Terminal in Camden in ex- example of what is possible when the er array of international shipping prod- for safe and efficient handling of steel, change for the opportunity to energize public and private sector work togeth- ucts and other emerging industries.” forest products, project cargo, rolling the operation at Paulsboro, which has er to benefit New Jersey citizens,” said stock and containers. World trade has been vacant since the BP oil refinery Governor Chris Christie. The State of DSPC, Chiquita sign new lease agreement First Fibria ship arrives The Diamond State Port Corporation Chiquita operates a fully- Tioga Terminal (DSPC) and Chiquita Brands announced containerized service between Central in July an agreement by which Chiquita America and Wilmington, discharging will continue to use the Port of Wilmington bananas, pineapples and other tropical as its mid-Atlantic distribution hub for the fruit and vegetables, and loading back next five years. The agreement includes forest products, used automobiles and two five-year lease renewal options which general cargo. would extend Chiquita’s relationship with Wilmington until 2029. “The Maritime Exchange extends its In 1988 Chiquita consolidated its mid- sincere congratulations to the DSPC Atlantic supply chain operations at the and Chiquita,” said Exchange President Port of Wilmington, now its largest port Dennis Rochford. “This long-term operation in North America. It leases 28.7 relationship is good for both parties, acres at the port and its vessels make and for the regional port community as approximately 52 port calls annually. a whole.” Congress agrees on WRRDA legislation In May, the House and Senate reached HMT revenues for maintenance dredging agreement on this long-delayed legislation and related projects on a sliding scale to Earlier this year, Fibria Celulose S.A. announced it would and passed the Water Resources Reform 100 percent. move its northeast distribution center from Baltimore to the Port and Development Act of 2014. President “This is a huge win for the Delaware of Philadelphia, bringing more than 380 total jobs and $40 million Obama signed this legislation into law on River and ports around the country,” said in economic activity annually to the region. On July 22, the “Mozu June 10. Capt. Ward Guilday, president of the Arrow” carrying Bleached Eucalyptus Kraft Pulp arrived at the Philadelphia Regional Port Authority’s Tioga Marine Terminal, In addition to authorizing major port Pilots’ Association for the Bay and River operated by Delaware River Stevedores, Inc. DRS expects to handle and inland waterway projects throughout Delaware. 18-20 vessels and approximately 360,000 metric tons of wood pulp the U.S. the legislation addressed a “This infusion of funds will help ensure annually, to be distributed throughout the northeast, taking advantage variety of issues important to the maritime that shipping channels and anchorages of Philadelphia labor, Tioga’s facilities, and a comprehensive industry. throughout our port are maintained to distribution network by rail and road. Chief among these, WRRDA deals their full capability in support of the over with the 0.125 percent ad valorem Harbor 2,200 vessels that arrive here every year,” APHIS Fees proposing the new fees. Although Maintenance Tax, or HMT, collected Guilday said. additional information about on all import cargoes arriving at U.S. Included in this legislation are continued from page 1 costs funded by the programs was ports. These funds, deposited into the provisions to streamline and expedite provided in a July 9 webinar, it Harbor Maintenance Trust Fund, are to be major navigational construction projects, proposal, the fee increases will be was not provided at the level of utilized to dredge and maintain shipping address the concerns of donor ports that used not only to support the actual detail that is useful for making channels and harbors at ports around the collect more tax than they receive, and program costs but also expenses informed comments, Harrington country. Currently the HMT generates streamline environmental reviews and associated with accounting and said. approximately $1.8 billion annually, yet permitting processes. payroll and outreach. The agency The comment period closed is also looking to the fees to on July 24. The Exchange and the only half of these revenues are expended “All in all, this legislation empowers create a substantial cash reserve, coalition asked USDA to withdraw for their intended purposes. “Over a period the Corps of Engineers to advance to be utilized during economic both proposals pending further of years, the trust fund has accumulated a construction projects in a timely manner, downturns. dialogue with stakeholders. surplus of more than $7 billion, revenues and more importantly, increase revenues The coalition has asked the “Unless USDA does a that could and should have been expended available for maintenance dredging USDA to provide more detail on complete about face, we expect to maintain deep and shallow draft ports through full utilization of harbor what the fees are actually funding. the final rules will be published as throughout the country,” said Exchange maintenance tax revenues,” Rochford It has also asked the agency to proposed,” Himber said. USDA President Dennis Rochford. said. “Adequate funding for dredging is outline specific steps that have had indicated it expects to start The Act requires Congress, over a period essential to keeping our port competitive, been taken to minimize costs and collecting the new fees in January of ten years, to increase the expenditure of enabling us to better serve our customers.” eliminate redundancies before of 2015. The Beacon 4 Fall 2014

45’ Channel Deepening Update Be grateful for the man behind the curtain Many Maritime On-Line Upgrades Occur Behind the Scenes The summer of 2014 was a busy one for IT professionals and programmers face the Maritime Exchange as it continued its the ongoing challenge of keeping their work to upgrade Maritime On-Line and the applications, web sites, and supporting infrastructure which supports it. While much equipment compliant with current standards, Photo by Tim Boyle of the effort is invisible to the many Exchange and also to take advantage of newer members and subscribers who use the system, technology, methods, and techniques to Under contract to the U.S. Army Corps of Engineers, the a great deal of activity takes place behind the improve performance and enhance the overall “Dodge Island,” a Great Lakes Dredge & Dock Company hopper dredge, motors upriver during dredging operations on July 23. scenes to ensure their online experiences are user experience. Operations began on July 18 as part of the next phase of the Dela- helpful and productive. The Exchange and its technology partners ware River Main Channel Deepening Project. The current work is New desktops, laptops, smart phones and have been hard at work to do just that. part of a $14.1 million contract to remove approximately 400,000 operating systems are being rolled out at a First, in July we completed an upgrade to cubic yards of material from Lower Reach A, southwest of the sometimes dizzying pace. The computer or the core of Maritime On-Line by replacing the Philadelphia Airport to Chester, Pa. phone purchased last week with the newest web controls used for data entry and display Under a separate contract, Great Lakes is also deepening the features seems to be obsolete just a few weeks across the entire system and then migrated main shipping channel between the Ben Franklin and Walt Whit- later. This is equally true for servers and the system to the latest development platform man bridges. Weeks Marine has been awarded the contract to development software. version. That project was to ensure MOL deepen the channel off Broadkill Beach in Delaware. New server operating system and program systems remained compatible with the latest With the completion of these three contracts, the 45’ channel versions, software development platforms, versions of popular web browsers. deepening project will be 80% complete in terms of linear miles system integration methodologies, and continued on page 6 of channel that need to be deepened. hardware architecture continually evolve. Using technology to promote safe and efficient commerce Recently, the Maritime Exchange “The Maritime Exchange uses Without this infrastructure, Exchange In an effort to provide the best service and the Pilots’ Association for the Bay the VHF radio network to provide a staff would not be able to communicate possible to the mariners in the region, and River Delaware completed a VHF crucial interface between ships and with mariners at the level required to Michael Fink, Exchange IT director radio infrastructure upgrade project that their agents which allows for the timely effectively aid in the safe coordination and Jason Rowinski, IT manager for not only replaced outdated technology, exchange of docking and anchorage of vessel movements. “The VHF radio the Pilots’ Association managed the but increased communication efficiency information. It also provides mariners allows the Exchange to work with work to move to a Multiprotocol Label for the mariners in the region. with up-to-date information on vessel mariners before the ship is even in Switching structure. This equipment allows Exchange traffic in the Delaware Bay and River,” sight of the shore to gather and relay This new platform required Operations staff to interact with said Capt. Stephen Roberts of the up-to-the-minute arrival times, draft upgrading the infrastructure between and assist vessels as they transit the Pilots’ Association for the Bay & River conditions, berthing instructions and sites with fiber optic cable. It provides region and helps alleviate anchorage Delaware. other information,” said Capt. Jonathan better information-sharing redundancy, congestion. Kemmerley, Chairman of the Mariners increased bandwidth and more Advisory Committee for the Bay and effective resiliency by replacing the River Delaware. “This information existing aging copper lines used by the exchange continues throughout the frame relay. ship’s stay in port, including position Though the project took a few updates, anchorage reports, bunkering years to complete, the payout will coordination as well as communication be well worth the effort. “With the with the pilot on board as the ship transits VHF network upgrade now complete, the river. The Exchange provides vital mariners and other port entities can information to the users of the Marine benefit from the reliable high-quality Transportation System that promotes radio broadcasts,” Rowinski said. “The safe, efficient commerce.” Maritime Exchange and the Pilots’ With the VHF network playing such Association are always looking for an important role in daily operations, ways to improve the safety, interaction keeping the infrastructure up to date is and communication throughout the crucial. Previously, the equipment was Delaware River.” linked by network topology known as Projects like this exemplify the frame relay. While still in use, frame relay dedication these two organizations technology relies on aging infrastructure have to safe and efficient commerce. and is becoming increasingly inefficient For more information, contact Paul at linking data between multiple points. Myhre at [email protected] or 215-925-2615. The Beacon 5 Fall 2014

Bridge to bridge communication: a system developed on the Delaware Bay & River By: Captain William Broadley even in these areas final arrangements apart, and the stern section grounded navigational safety communication for vessel meeting and passing are on a shoal on the New Jersey side of the between vessels using the Delaware always discussed and agreed upon channel, where it remains to this day. Pilots system as a model. The Maritime Industry is unique. between the pilots of the individual The history of VHF Channel 13 In the early 1960s, various pilot Almost all anti-collision and navigational vessels utilizing VHF Channel 13. began in 1947 when the VHF band 157 organizations purchased the only safety information is exchanged This system has been in place to 162 MHz was set aside for maritime suitable VHF radios that were available through the use of a vessel-to-vessel for over 50 years and has remained usage with no specific channel numbers at that time, manufactured by General system using a single radio frequency, unchanged even though there have been allotted; however, the frequency Electric with the impressive name, VHF Channel 13 (156.650 MHz). This tremendous advances with electronics, 156.800 MHz (later Channel 16) was “Voice Commander.” They were odd system, referred to as “Bridge to Bridge computers, global positioning, set up as a designated emergency and looking grey boxes, about the size of Communication,” is unique to the Automatic Identification System and calling frequency. a notebook computer with only one marine industry and has its roots here Global Maritime Distress and Safety During the 1950s there was some channel capability and one watt of in the Delaware Bay and River. It has System implementations. Additionally, voluntary use of the VHF band, and transmission power. Because the push worked, and worked very well, for many commercial vessels have undergone here on the Delaware Bay and River to talk button was on the front, it was years, and will continue to provide a detailed scrutiny with the implementation the Delaware Pilots’ Association used an awkward two-handed operation to very important function for many years of International Standards Organization custom-made VHF portable radios for transmit, and great care was needed; if to come. (ISO) standards. “Bridge to Bridge” communication. the whip antenna touched the carrying Aviation relies on FAA controllers On today’s commercial vessel, Finally, in 1959, the FCC set up VHF handle, there was a risk of blowing out who direct aircraft using multiple radio every piece of equipment and every Channels 1 through 28 for marine frequencies to avoid collisions and person’s duties and responsibilities are usage and designated Channel 13 for continued on page 11 relay navigational safety information. documented in detail. Believe it or not, Railroads rely on line dispatchers who I attended an ISO seminar where my utilize various radio frequencies and cook’s procedure for making chocolate signals to direct train movements chip cookies was put into ISO 9002 and rail allotments. In the maritime format. This has resulted in volumes industry, however, vessels use a direct- of manuals, many hours of review and communication, single-channel system training, and numerous audits, yet the to communicate between vessels. usage of VHF Channel 13 has remained This is amazing considering unchanged. the complexity of what is involved. On the Delaware River, there was Vessels meeting in restricted certainly a need for a bridge-to-bridge channels, approaching blind turns, and communication system on June 6, leaving/docking at various locations 1953 at 12:15 AM when the tankers necessitating turning around and “Pan Massachusetts” and “Phoenix” blocking main channels are just some of collided in the vicinity of the C& D Canal the many challenges that professional entrance. This collision was the result pilots and masters routinely discuss of a mix up with whistle signals, which and agree upon utilizing VHF Channel was the only system in use at that time. 13. Some ports, such as New York, New The “Pan Massachusetts” was loaded Orleans, and Houston have Coast Guard- with 150,000 barrels of gasoline which mandated Vessel Traffic Systems, but burned for days. The “Phoenix” broke The Beacon 6 Fall 2014

Are you certifiable? ELMOc comes to the

On Thursday, October 16, the Maritime Exchange will offer its Delaware River U.S. Customs and Border delivering the work to the data- annual Fall HazMat Transportation Training seminar, from 9:00 a.m. Protection (CBP) in the Area access point, according to CBP through 4:30 p.m. Port of Philadelphia has recently officials. Continuing this strategy As required under International Maritime Dangerous Goods Code implemented a pilot program in the various CBP processing Code Chapter 1.3 and 49 CFR 172 Subpart H, employers must provide developed to enhance cargo environments enhances CBP training to all personnel who handle or are otherwise involved with the examination at seaports. Known operations and provides for more transportation of hazardous materials, including the documentation for as Enforcement Link Mobile efficient use of existing staffing the materials. The regulation requires re-certification every three years. Operations Cargo, or ELMOc, resources. If you have not had this training, or are in need of re-certification, this new technology allows CBP Projected use of ELMOc devices register now through Exchange website at http://www.maritimedelriv. Agriculture Specialists to release include operations during inspect- com/Hazmat/HazMatFALL2014Flyer.pdf. inspected cargo in real-time. “The ions primarily at all locations where ELMOc pilot program has greatly CBP personnel are not stationed or benefited both the CBP Agriculture do not have land computers. These As stipulated in 49 CFR 172, employers must provide this mission and the trade community,” training to all personnel who handle or are otherwise involved said Assistant Port Director for areas might include, for example, with the transportation of hazardous materials, including the Trade Operations Tarance Drafts. inspecting tractors, container yard documentation. Recertification is required every three years. ELMOc allows CBP agriculture examinations and other remote specialists to utilize handheld devices warehouses. The Maritime Exchange sponsors this seminar to assist its in the field to query containers, view Although the use of ELMOc is currently in a pilot phase, there is membership in complying with this requirement. The seminar provides targeting comments, enter exams, some speculation that the technology attendees with training, methodology and hands-on experience with the and release agriculture holds. CBP notes that ELMOc technology is already outdated. When he visited latest updates to the IMDG (Amendment 36) as well as the additional speeds up release time by making the Delaware River region in August, U.S. requirements under the Code of Federal Regulations. Attendees operations more efficient while at CBP Assistant Commissioner for will gain the ability to address their own functions and the knowledge the same time continuing to keep the International Trade Rich DiNucci of where to find guides for routine tasks. ports of entry secure. noted that the agency is looking into Registration includes a copy of the latest edition of Title 49, Code “Real time releases are making a acquiring tablet computers for its of Federal Regulations, Parts 100–185, the 2012 U.S. Department big difference in getting perishable inspectors, and Port Director Susan of Transportation Emergency Response Guidebook, a HazMat Wall cargo out to customers,” said Stranieri alluded to similar upgrades Chart, and other appropriate handouts. Excerpts of the two-volume William C. McGinnis, special at a recent meeting with stakeholders IMDG Code will be provided for use in the class. projects manager at Greenwich at the Port of Wilmington. Terminals. “Since the releases are “Whether it’s ELMOc or other This one-day training will be conducted by Captain Eric Rounds, sent through the existing electronic portable devices, for now we are Senior Surveyor, National Cargo Bureau. Note that Exchange systems as the exams are completed, happy to take advantage of any members, as well as government agency personnel, receive the benefit trucks can be scheduled for same technologies CBP sends our way,” of discounted registration rates. day pick up. It’s a huge step forward said Exchange Vice President Lisa Contact Beverly Ford at [email protected] to register. to enhance cargo availability and Himber. “Ideally, new equipment condition.” should not only speed up release Integration of ELMOc into the time, but it should also improve agriculture mission has proven inspector work flow and productivity to be successful as it delivers to maximize their time as well as the data to the work-site rather than use of taxpayer dollars.”

MOL infrastructure than the exception. When complete, users will see decreased down time for upgrades maintenance and faster processing. The project will accrue substantial internal continued from page 4 administrative benefits as well, Fink said. “This was a significant effort that will ensure the continued operation of Outward facing changes also Maritime On-Line in future browser completed versions,” said Exchange IT director Not all work is behind the scenes, Michael Fink. “We not only had to though. The Exchange recently upgrade the core platform, but we had completed an upgrade to meet the latest to replace every text box, menu item, Coast Guard electronic notice of arrival calendar control, dropdown, and data and departure requirements. This grid. It certainly wasn’t a sexy upgrade included modifications to the vessel generating any buzz among the user response plan reporting requirements, community. But what does get a lot of which in particular now requires the attention are web apps that stop working submission of vessel response plan in new browsers because the code or types. controls have not been updated.” Maritime On-Line is a continually The Exchange has also been busy with a project to migrate its current evolving platform that must be upgraded server architecture to a virtualized to meet the changing demands of its environment. Server “virtualization” subscriber base as well to meet new is a technology for partitioning one federal reporting requirements. Some physical machine into multiple servers. of the improvements are visible to the It also masks the identity of server users such as new software functionality resources, including the number and – others are transparent like server and identity of individual physical servers, operating system upgrades. But are all processors, and operating systems, are necessary to support the system that from server users, providing additional allows the Exchange to help facilitate protection against cyber intrusion. trade and commerce and to assist Although not a new technology, local and federal law enforcement and server virtualization has matured and response agencies in their safety and is becoming more the norm rather security missions. The Beacon 7 Fall 2014

Project AZORIAN has local roots

conducting a surge deployment to the technology, as well as possibly recover 1974 in the Pacific, and within 30 days North Pacific Ocean that involved some cryptographic materials. The proposal the “Hughes Glomar Explorer” was in unusual search operations. The activity was accepted by President Nixon, position to raise the Soviet submarine was evaluated by the office of Naval and the CIA was tasked to attempt K-129. While raising the submarine Intelligence as a possible reaction to the recovery using Global Marine to the mechanical claw suffered a the loss of a Soviet submarine. Soviet design, build and operate the “Hughes catastrophic failure, causing two- surface ship searches were centered Glomar Explorer.” thirds of the already raised portion of As I walk through Olde City, on a location known to be associated In order to support the cover K-129 to sink back to the ocean floor. Society Hill, and Penn’s Landing, I with Soviet Golf Class SSB strategic story that the ship was mining However, the recovered section did always enjoy reading all the historical ballistic missile diesel submarine patrol manganese nodules from the ocean include two nuclear torpedoes and thus markers on poles that remind us of the routes. These submarines contained floor, billionaire businessman Howard Project AZORIAN was not considered great history of our city. While I believe three nuclear missiles and routinely Hughes agreed to lend his name to the a complete failure. The bodies of six I had seen most of them, I recently deployed to within missile range of the project. The K-129 was photographed crewmen were also recovered and were found one I had not seen in front of the U.S. West Coast. at a depth of over 16,000 feet and thus subsequently given a memorial service Seaport Museum, commemorating the After weeks of searching, the the salvage operation would be well with military honors. building of the “SS Hughes Glomar Soviets were unable to locate their beyond the depth of any ship salvage The operation became public in Explorer” in Chester, Pa. in 1972. sunken submarine, and the Soviet operation ever before attempted. On February 1975 when the Los Angeles While I had heard about this ship Pacific Fleet operations gradually November 1, 1972 work began on the Times published a story told to them by in the early seventies, I had no idea returned to a normal level. 50,500 ton, 619-foot long and 116-foot former crew members. The true name that the “SS Hughes Glomar Explorer” In July 1968, the U.S. Navy deployed wide “Hughes Glomar Explorer” at of the project was not publicly known would be part of one of the most the “USS Halibut” to the wreck site and Sun Shipbuilding and Drydock Co. in to be Project AZORIAN until 2010. complex, expensive and secretive in three weeks found and photographed Chester, Pa. The ship is still operational today intelligence operations of the Cold War the sunken Soviet submarine officially The ship was built with a large as a deep sea drilling ship and is called at a cost of $800 million ($3.8 billion named K-129. Then in 1970, based on mechanical claw to be lowered to the the “GSF Explorer.” She is in 2014 dollars). this photography, Defense Secretary ocean floor, grasp around the targeted currently working off the This story really begins in April Melvin Laird proposed a clandestine submarine section and then lift that East Coast of India and is 1968, when Soviet Pacific Fleet plan to recover the wreckage so that the section into the ship’s hold. Recovery registered in Vanuatu. surface and air assets were observed U.S. could study Soviet nuclear missile operations began in the summer of

Q&A with Carney Maritime Exchange, and a variety of other business Delaware River is another important issue. In 1986, and trade groups as well as the cooperation of the Congress established the HMTF, which is funded continued from page 1 Army Corps of Engineers. However, we have to by user fees paid by the maritime industry and is continue to be vigilant in working with the Army designed to fund dredging projects at ports across Corps and the Obama Administration to ensure that the country. The problem is that unlike the Highway included in the President’s Budget since Fiscal Year the project remains in the President’s Budget and Trust Fund, which is an entirely separate account 2013. The total estimated cost is $300 million, and that we’re able to see the deepening through. in the federal budget, the user fees collected for thus far the federal government has appropriated Harbor Maintenance go into the general fund. This $104 million. If everything remains on schedule, the Q: What can we do to make sure our ports get the means that the appropriation of these funds for deepening will be completed during 2017. It could money from the Harbor Maintenance Trust Fund dredging has to compete with all other priorities in never have progressed this far without the incredible needed for dredging? the federal budget. partnership supporting the project that includes A: Maintaining the depth of channel at busy ports organized labor, local chambers of commerce, the like the Port of Wilmington and others along the continued on page 10 The Beacon 8 Fall 2014 Maritime community celebrates Last chance to register for HSC/ Coast Guard birthday AMSC conference

The Mariners’ Advisory Committee for the Bay & River Delaware is hosting this year’s joint National Harbor Safety Committee/Area Maritime Security Committee Conference in Philadelphia on August 25-27, 2014. The conference will focus on best practices of Harbor Safety Committees and Area Maritime Security Committees as well as new ideas and technology to address critical safety and security issues. Offsite Social Event Join the MAC and the Pilots’ Association for the Bay & River Delaware at a cocktail reception for conference attendees. The event honors the 50th Anniversary of the MAC, the nation’s first harbor safety committee and will be held aboard the “Moshulu” on August 26 from 6:00-9:00 In attendance at a local celebration held at the Union League in Philadelphia were Capt. Jonathan Kemmerley, Mariners pm. Ticket and sponsorship information are available at http://nhscsocialevent.com. Advisory Committee, Joseph C. Hare, Rhoads Marine Industries, We look forward to seeing you there! Inc., Capt. Todd Prestidge, Coast Guard Training Center Cape May, Capt. Kathy Moore, Coast Guard Sector Delaware Bay, Exchange Chairman John Reynolds, and Exchange President HSC/AMSC Conference Details: Dennis Rochford. August 25-27, 2014 The Coast Guard celebrated its 224th birthday in August. The agency’s official history began on August Hyatt Regency Philadelphia at Penn’s Landing 4, 1790 when President George Washington signed the 201 S Christopher Columbus Blvd, Phila. PA 19106 Tariff Act that authorized the construction of ten vessels, 215-928-1234 referred to as “cutters,” to enforce federal tariff and trade To Register: http://www.trb.org/Main/Blurbs/168413.aspx laws and to prevent smuggling. The service received its present name in 1915 when the Revenue Cutter Service Session Topics: merged with the U.S. Life-Saving Service to form a single maritime service dedicated to the safety of life at sea and enforcing the nation’s maritime laws. Partnering for Safe, Secure and Resilient Securing Our Ports Through Technology Port Operations Pilot Commissions: Compositions, The Coast Guard began maintaining the country’s Desperately Seeking Resiliency Responsibilities and Roles in Harbor Safety aids to maritime navigation in 1939 with the transfer of Physical Oceanographic Real-Time System AMSC Governance – An Information the Lighthouse Service to the Coast Guard in 1939. In (PORTS) Sharing Event 1946 the Commerce Department’s Bureau of Marine Inspection and Navigation was transferred to the Coast Challenges to Regional Initiatives Training and Exercises: A Frank Discussion Guard, thereby placing merchant marine licensing and Maritime Commerce and Offshore Energy: The Future of Navigation – Bringing merchant vessel safety under its purview. How We Can Coexist America’s Waterways into the 21st Century The Beacon 9 Fall 2014 Hurricane season well underway So far, so good. expected to remain normal or even It’s that time of year again, and the slightly below normal for the rest of Mid-Atlantic region is well into the the tropical season, which is good,” hurricane season that began on June Kruzdlo said. 1 and continues until November 30. At the beginning of the season, the The Delaware River region narrowly U.S. Coast Guard Sector Delaware escaped serious impact from Bay updated its hurricane readiness Hurricane Arthur in the beginning of plan for 2014. “It is important that July as the storm turned out to sea facility managers, ship agents, off the coast of North Carolina. This and vessel masters review Sector provided a sobering reminder of the Delaware Bay’s contingency plans,” potential for dangerous weather and said Robert Ward, port security what could happen in the months specialist, Sector Delaware Bay. ahead. “The steps and actions listed As usual, the National Oceanic in these plans help to ensure and Atmospheric Administration safety while securing the critical released its outlook, and indications infrastructure of the region from point to a normal or below normal an impending storm. We have had activity level for the 2014 season. destructive hurricanes in the past, “The main factor guiding the and even though the region has not 2014 Atlantic Hurricane Season had any major storm damage over will be El Nino. El Nino suppresses the last few years, people should Atlantic Basin hurricane activity in not become complacent and ignore a number of ways, with the biggest proper planning,” Ward said. factor being the amount of shear, Available documents from the or stronger wind speeds, that are sector include storm preparation present when tropical systems travel checklists for facilities and through,” said Ray Kruzdlo, Senior vessels, preparedness planning for Service Hydrologist for NOAA. oceangoing vessels remaining in port “Another factor that will affect this and precautionary measures for ships year’s tropical development is sea and barges. The Maritime Exchange surface temperature [SST]. Most encourages all port stakeholders to of the temperatures we’re seeing review these documents, which can are right around normal at this be found on our website. time where tropical systems like to develop. Warmer water can enhance Visit www.maritimedelriv.com/Port_ tropical development and also Security/USCG/USCG_hurricane. lead to stronger systems. SSTs are htm for more information. The Beacon 10 Fall 2014

Philadelphia Belt Line to receive SCI award Each year, the Seamen’s Church along the Delaware River waterfront Institute of Philadelphia and South and has played a unique role in Jersey bestows its “Friend of the advocating for non-discriminatory Port Award” to companies within the rail service to port facilities. Conrail port industry that have demonstrated provides safe and efficient switching concern for the welfare of seafarers services at all of the major terminals in and/or the port in general. Philadelphia and southern New Jersey This year, SCI has selected the and is an important link between the Philadelphia Belt Line Railroad, which port and the Class I railroads which recently concluded a new 25-year serve it – CSX and Norfolk Southern. agreement with Conrail after a long The award ceremony will take period of negotiations. The award place during the SCI annual fall event, recognizes the railroad as being an to take place on October 17 at the New important partner in the port community Jersey State Aquarium. and integral to the success of efforts to Contact Ronnie Barlow at 215-940- expand international trade, especially 9900 or [email protected] for in the Port Richmond corridor. information. PBL, which dates back to 1889, owns a 2.66-mile railroad line running

Port of Wilmington and others on the Q&A with Carney Delaware River? continued from page 7 A: My top priority as a Member of Congress is helping our economy I am a cosponsor of legislation to grow and create jobs, and that is why make sure that the HMTF is allocated I have strongly supported the House sufficiently and recently supported an of Representatives’ Make it in America amendment to an appropriations bill Agenda since joining Congress. In order that would dedicate more funding to to be successful, we must focus on our harbors. I was also pleased that expanding domestic manufacturing, the Water Resources Development Act and creating opportunities and access that Congress passed earlier this year to new markets overseas. It’s clear that included a provision that incentivized exporting is key to economic growth the Appropriations Committee to and success. If done correctly, free trade provide more funding to harbor agreements will enable companies to maintenance. I will continue to monitor reach new customers, which will help this issue closely, but I think we are create jobs in the manufacturing sector making good progress in effectively and grow business at our ports. To do allocating harbor maintenance this, it’s critical that trade agreements resources. are a two-way street and that barriers to trade be lowered for both the U.S. Q: What can Congress do to increase and for our trading partners. trade in a way that will benefit the The Beacon 11 Fall 2014

The Act also made the use of VHF Even though radio procedures are Del. River key to VHF Channel 13 compliant with the Rules of governed by CFR Title 47, Subpart C Bidding adieu to Channel 13 the Road whistle signals requirements 80.88 to 80.103, the general usage and required floating plants, dredges of VHF Channel 13 is self-regulated a good friend continued from page 5 and draw bridges to monitor and use by pilots and masters of commercial VHF Channel 13. vessels. VHF Channel 13 is a business- As a general practice, the C&D only navigational safety frequency for the transmitter. There is a story about Canal control (using their old call letters regulated commercial vessels, and any one of these radios catching fire in WB-33) and the Cape Cod Canal control other usage is strongly discouraged. a pilot’s bag due to the push to talk (using their old call letters WUA 21) However, recreational and other non- button getting accidentally depressed used VHF Channel 13 for management required vessels are encouraged to and activated. The button worked even of canal traffic. Prior to the use of monitor this frequency and to answer when the radio was turned off. VHF Channel 13, traffic coordination when called, especially when navigating Technology improved quickly and, was accomplished with use of the close to main channels, at night and/or in the mid-1960s, Motorola developed designated AM frequency 2350 KHz during times of reduced visibility. the HT220, a truly portable unit that and traffic lights at each end of both The maritime industry has changed looked similar to, but still larger than, canals. The old AM radios using 2350 in many ways over in the past 50 years what is generally available today. I KHz are gone, but the traffic lights are VHF Channel 13 has been used. The bought one of these units in 1969 – I still there. vessels have become larger and more Exchange staffer Scott Anderson still have it and it still works. The use of In the 1970s, the use of the efficient. The crews have become joined several members of the port VHF Channel 13 expanded greatly, and VHF band increased to the point smaller and more highly trained. The community to wish Mesfin Ghebre- was completely voluntary, although the of congestion, especially with only volume vessels carry into and out of woldi a rousing “bon voyage” on his Rules of the Road still required whistle three available public access (Marine our ports has increased dramatically retirement from the Seamen’s Church signal proposal and acknowledgement. Operator) channels. In 1979, the FCC and will continue to increase, especially Institute of Philadelphia and South In the early 1960s, tide gauge cut the 50 MHz bandwidth between with the expansion of the Panama Canal. Jersey. “It has been a joy to work with readings were becoming very important allotted frequencies to 25 MHz, and Coastwise ships and tug/barge units Mesfin, and he will be sorely missed,” with the increase of maximum draft sandwiched an additional 28 channels will possibly be used to augment the Anderson said. vessels utilizing the Delaware Bay (60-88) between the existing 1-28 existing road and railroad infrastructure and River, so the Delaware Pilots’ Mesfin, who speaks seven languag- channels. Since the advent of the cell that is becoming very overloaded. es, was a pillar within the SCI family Association developed a system for tide phone, there is very little need for all the To make things even more gauge reporting using VHF Channel 14. for over 35 years – visiting ships, help- public access duplex (duel frequency) complicated, many traditional routes ing the seafarers with needs great and This information reporting function was channels presently available, so some along the Atlantic Coast used by small, training others, and generally shifted to the Maritime Exchange, which of these frequencies may be re-allotted vessels in the past will change with adopted VHF Channel 14 for vessel to other uses. the development of wind energy on handling whatever came his way with reporting. The Exchange eventually It used to be that only a few the Continental Shelf. The “Bridge to a smile. retired its lookout towers and flashing frequency selections were available Bridge” communication system, which In a recent tribute article, SCI lights system. when purchasing a marine VHF radio, has worked so well for so long, will Board member Henry Holcomb noted Most ports, using the Delaware and a technician had to install crystals be even more important for collision that what truly amazes people who Pilots’ model, adopted the VHF Channel to change them. Now, any marine VHF avoidance and navigational safety in work with him day in and day out is 13 “Bridge to Bridge” system, but this radio has all-channel capability. Portable the future. the durability of his passion for help- was still on a voluntary basis. Finally, in equipment has become smaller, lighter ing seafarers. The Exchange staff is 1972, the Ports and Waterways Safety and much less expensive to the point Capt. Broadley is a former Ship’s grateful to have had the opportunity to Act required installation and monitoring where some pilots will board a vessel Master and recently-retired Federal of VHF Channel 13 on vessels over 20 know and work with such a dedicated with several portable radios so that they Pilot with Interport Pilots Agency. advocate. meters in length, over 100 tons when can simultaneously monitor traffic, Thanks are also due to Capt. Paul Ives, carrying passengers for hire, and Fair winds and following seas, VTS, and direct tugs during a docking retired Delaware River pilot, for his Mesfin. We wish you the best! vessels over 26 feet engaged in towing. or undocking operation. contributions to this article. The Beacon 12 Fall 2014

SCW annual fundraiser sure to be a good time On September 9 from 4:30-7:30 pm the Seamen’s Center of Wilmington will hold its Fall Fun(d) Raiser at Firestone restaurant in Wilmington. Highlights of the evening will be the Silent Auction, raffle and, new this year, a limited raffle to win an 8-day stay on Grand Cayman Island. Sponsorship opportunities are available. For more information contact the Center at 302-575-1300 or [email protected]. New Contact Information for SCW SCW has changed its email addresses. The new email address for Executive Director Joan Lyons is [email protected] and the general email address for the Seamen’s Center is now [email protected]. Palaima honored by the Chapel of Four Chaplains The Chapel of Four Chap- lains honored Exchange Board member and President of Delaware River Steve- dores, Inc. Robert Palaima with its prestigious Legion of Honor Humanitarian Award on July 13. The award recog- nizes outstanding members of society whose lives model the giving spirit and uncondi- tional service to community, nation, and humanity without regard to race, religion, or creed exemplified so dramatically by the Four Chaplains. Michelle Dur- ham of KYW Newsradio also received the award. On hand for the ceremony at the Navy Yard chapel were (l-r) Com- mander Arno Vorwerk, USN (ret.), Michelle Durham, Chapel Executive Director Christine Beady, Chapel Coordinator Michelle Nolfi, Robert Palaima; Chapel Chairman Capt. Louis A. Cavaliere, USN (ret), and Maj. Lawrence Herrmann, board member. The Beacon 13 Fall 2014

Bliss assumes command of Corps district Hanson takes the helm BN, Giessen, GE; Assistant S3(Training) and B Company Commander, 11th EN BN, Fort Stewart, at DRPA GA; Project and Deputy Resident Engineer, Ft. Riley Earlier this year, the Field Office, Kansas City USACE District; S3 for 1st Commissioners of the Special Troops Battalion, 1st Brigade Combat Team, Delaware River Port 101st Airborne Division (AA); Executive Officer, Authority named John T. 1st Brigade Combat Team, 101st Airborne Division Hanson as the agency’s (AA); Communications Director, Soldier for Life Chief Executive Officer. Office, Office of the Chief of Staff. His operational Since November of deployments include: Bosnia Herzegovina, Kosovo, 2004, Hanson served as Iraq, and Afghanistan. Several members of the port community recently the Authority’s Chief Bliss holds a B.S. in Chemical Engineering joined the newly-installed District Commander for Financial Officer, stepping an inspection tour of the hopper dredge “McFar- from Clarkson University in New York, an M.S. land.” Shown here on the bridge are (l-r) Lt. Brennan in Engineering Management from the Missouri in as Acting Director Dougherty of the Coast Guard, Exchange President Science & Technology University, an M.S. in Civil upon the departure of Dennis Rochford, Capt. Jonathan Kemmerley of the & Environmental Engineering from the Virginia John Mattheusen. He was Mariners Advisory Committee, Nick Walsh of the Polytechnic Institute and State University, and is a Commissioner on the Board and Chairman of the Philadelphia Regional Port Authority, Ward Guilday, a registered professional engineer in the state of Finance Committee from 2002 through 2004. Pilots’ Association, and Lt. Col. Bliss. Kansas. His military education includes: United Hanson is a Certified Public Accountant (CPA) States Army Winter Mountain Warfare School (‘93); As the 58th Commander of the Philadelphia licensed in the State of New Jersey and a Chartered Engineer Officer Basic Course (‘96); Engineer Global Management Accountant (CGMA). District, Lt. Col. Michael A. Bliss has taken the helm Officer Advanced Course (‘00); Combined Arms Additionally, he has earned certificates in management of a 500-person Corps of Engineers district office. Its & Services Staff School (‘00) Intermediate-Level missions include dredging waterways for navigation, Education Common Core and Qualification Courses from Cornell University: “Executive Leadership” protecting communities from flooding and coastal (‘09); and the Air Assault School (‘12). (2008), “Change Management” (2009), and “Leading storms, responding to natural and declared disasters, Among his awards and decorations are the Management Teams” (2009). remediating environmental hazards, providing Bronze Star Medal (w “V” & 1OLC), Defense He graduated magna cum laude from Drexel services for other government agencies upon Meritorious Service Medal, Meritorious Service request, and a host of other responsibilities. University in 1990 with a B.S. in Accounting and Established in 1866, the U.S. Army Corps of Medal (w/2 OLC), Army Commendation Medal earned an MBA from St. Joseph’s University in May, Engineers’ Philadelphia District encompasses the (w/1 OLC), Army Achievement Medal, National 2007, graduating with honors. 13,000-square-mile Delaware River Basin and the Defense Service Medal (w/1 BS), Armed Forces Hanson is currently the Chairman of the Board of Atlantic coast. Within its boundaries are more than Expeditionary Medal, Kosovo Campaign Medal, Trustees of Camden County College in Blackwood, Afghanistan Campaign Medal (w/1 BS), Global War eight million people. NJ. He served as the Deputy Mayor of the Borough of on Terrorism Expeditionary Medal (w AHD), Global Bliss was commissioned into the U.S. Army Audubon, New Jersey from 1997 to 2001 and joined Corps of Engineers in 1996. Prior to serving with the War on Terrorism Service Medal, Armed Forces New Jersey government under former Governor USACE Philadelphia District, he was the northeast Service Medal, Army Service Ribbon, Overseas region director for the Solider for Life Program Service Ribbon, Presidential Unit Citation, Army Christie Whitman in 1998. within the Office of the Chief of Staff. Superior Unit (w/1 OLC), Combat Action Badge, The Exchange extends its sincere congratulations His previous assignments include: Assault and and Air Assault Badge. to John and wishes him great success in his new Obstacle Platoon Leader, Company Executive Please join the Exchange in welcoming Lt. Col. position. Officer, and Battalion Adjutant, 23rd/16th EN Bliss to the Delaware River port community. The Beacon 14 Fall 2014 Editorial USDA “cold treatment pilot Russian cyber attack program” misstep raises reminds us to be questions vigilant As we’re putting this issue of The Beacon to bed, news of the latest A June announcement by the U.S. Department of Agriculture, cybercrime is breaking. According to an August 5 report in the New York Animal and Plant Health Inspection Services about a new pilot program Times, a Russian crime ring has stolen 1.2 billion (yes, that’s billion) in the Port of Savannah generated widespread reaction among shippers user name and password combinations and more than 500 million email and carriers involved in the all-important perishable products market. addresses. On June 24, USDA/APHIS announced that it would begin accepting The facts are still emerging – we don’t yet know what web sites or applications for several cold-treated commodities from Peru, Chile and users were targeted. And this attack follows directly on the heels of an Brazil destined for Savannah. early August announcement by the P.F. Chang restaurant chain that debit/ The announcement seemed to imply that the importation of those credit card machines at as many as 33 of its U.S. restaurants may have been products was somehow unique to Savannah. The notice also created compromised during a breach discovered in June. another broad misconception: that cold treatment is a substitute for Earlier this year, Microsoft was taken to task for vulnerability flaws fumigation. Neither of these statements is correct. in its Internet Explorer web browser. One of the most severe defects While we don’t believe it was USDA’s intention to suggest either allowed hackers to gain rights to personal computers, and all of the of these ideas, the wording the agency chose effectively created that personal information stored on them, by luring unsuspecting searchers to impression. We’re not sure why a federal agency would allow itself to compromised web pages. be put in that position. And as most of us know, Target retail stores were hit hard when cyber The announcement was picked up by a number of trade publications, thieves stole credit card and personal information from over 100 million and the coverage it generated has created a misconception among the customers last December. Target is recording recovery costs, which include shipping community. Exchange members received numerous questions a year of free credit monitoring for customers, at $148 million as of the end from shippers, importers, exporters and growers. of June. These costs are still climbing. The Maritime Exchange has asked USDA/APHIS to issue a public As if visiting web sites and opening emails were not enough to worry clarification. about, scammers have upped their game and are making phone calls posing The pilot program as described in one article is limited to fresh as Microsoft technicians. They claim the victim’s computer is at risk and fruit from South America arriving in containers that have completed pressure the user to allow the “technician” access to the computer to “fix” in-transit cold treatment as a condition of entry. With that limitation, the issue for a fee. If successful, the cyber criminal not only has the victim’s the entry of Chilean fruit, which is subject to a mandatory fumigation credit card information but may have opened up the PC to future attacks. treatment, would not be authorized under the pilot program. However, These are only a few examples from among the many incidents recorded Chile is included with the countries of Peru and Brazil in the article, due in just the last year alone. to inaccuracies in the announcement. In its 2014 Internet Security Threat Report, computer security giant Delaware River ports have strong relationships with Chilean growers. Symantec Corporation reported that Internet security breaches in 2013 were We know that Chile has a long-standing and successful program of fruit 62% greater than in 2012, and the number of identities stolen in 2013 was fly eradication and is not required by APHIS to cold treat its exports to twice that of 2011. the United States. These crimes are financially devastating to corporations and individuals The various articles also suggested that cold treatment is an alike, and some whose identities are stolen never fully recover. environmentally-friendly alternative to fumigation-based pest control This is the reality in which we live, and it will not change for the and that there is “increasing acceptance by the U. S. Department of foreseeable future. We will continue to make on-line purchases, use our Agriculture and other import authorities around the world” for its use. credit cards in stores and at restaurants, and pay our bills via on-line banking. This is clearly not the case. Cold treatment is not a broad spectrum And hackers will continue to find new ways to steal our money and personal treatment option for quarantine pests. On the contrary, the use of cold data. Every time a breach is plugged, criminals will adjust strategies and treatment is very targeted and limited, and it cannot arbitrarily replace look for the next hole. fumigation as a quarantine alternative to protect U.S. agriculture. But not all is bleak. On our behalf, an army of public and private sector Unlike southern ports, Delaware River ports can accept containers professionals is battling these threats, and many good products are available under cold treatment, and they can be discharged during any stage of to mitigate the risks. the treatment to have the cold treatment completed dockside. Further, There are also some low-tech steps we can take to protect ourselves. as a general rule, transit times to the Delaware River area coincide more closely with required cold treatment time frames – no vessel operator First, change passwords often, don’t use the same password for every, or even multiple accounts, don’t share passwords – ever – and use passwords would want to see a ship lay in wait while cold treatment continues for that contain a variety of upper and lower case letters, numbers and symbols. the proscribed time periods, as is more likely the case at southern ports. The Delaware River been the destination of choice for break bulk Do not post personal data on social media sites, and certainly do not let imported perishable commodities for over 30 years. And the volume the World Wide Web know when the family will be on vacation. It is the same thing as hanging a sign on the front door announcing that no one will of these products moving through our ports in containers is increasing be home – except that now hundreds of people, or more, will see that sign. exponentially. This is a result of our proximity to northern markets which have traditionally paid higher prices for imported produce, Though we cannot control what protections are in place at the places we linkages to a transportation network that can reach two-thirds of the U.S. go to dine, shop and be entertained, these simple measures are within your control and can help make you less of a target. population in two days, extensive cold storage facilities, experienced port operators who have built strong relationships with partners over As an organization dedicated to providing online services, the Maritime time, and a trained and capable labor force. Exchange is keenly aware of the risks. We encourage you to take all steps No other port can make the same claims, regardless of what pilot possible to protect yourself from this increasing threat. programs they may start.

The Maritime Exchange encourages readers of The Beacon to comment and give us your thoughts on any MARITIME EXCHANGE article we have published or other maritime-related issues. for the Delaware River and Bay Please send us your “Letters to the Editor” John Reynolds, Chairman Via email to [email protected] Uwe Schulz, Vice Chairman Via mail to: Dennis Rochford, President Maritime Exchange Lisa B. Himber, Vice President Attn: Beacon Editor A. Robert Degen, Esq., Secretary/Solicitor 240 Cherry Street, Philadelphia, PA 19106 Dorothy Mather Ix, Treasurer The Beacon 15 Fall 2014 The sun-setting life of the generalized system of tariff preferences and the real cost of congressional inaction address GSP expiration during the 314- day period of the automatic delay, or by June 10, 2014. That date has now come and gone, and Congress has not acted. By: John P. Donohue, Esq. The question then became how Customs Clark Hill Thorp Reed would treat the entries that, after June 10, were available for liquidation. Anyone who listens to radio or extended, and the benefits of the bill were Customs could have approached this television talk shows will hear the uninterrupted. In the later years, the law circumstance in one of two ways. Under participants bemoan the inability of was allowed to expire, but Congress another provision of the law, Customs the Federal Government to get things fairly promptly introduced renewal is allowed to extend the liquidation done. Those complaints are now so measures and made the provisions date by one year, up to a total of four commonplace and widespread that retroactive to the date of the expiration years. So an entry made in July 2013 they cross party lines. To those of of the law, curing any defects that were could be extended to no later than July us who work daily with the rules of created by congressional inaction. In 2017, and the law allows Customs international trade, there is no better those instances, the benefits of the law to grant such an extension whenever example of the real costs of inaction than were interrupted, but corrected. “the information needed for insuring liquidated without benefit of GSP and the death last year of the Generalized But with the expiration of the GSP compliance with applicable law is not the denial is not protestable. System of Preferences (GSP) and our law on July 31, 2013, Congress has yet available to … Customs.” Had Customs Congress’ failure to extend this Government’s inability to revive it. to act on extension legislation, and now invoked the extension law, it would popular and progressive legislation, have kept all entries alive until at least The GSP law was originally enacted importers are losing the benefits of the and Customs’ failure to invoke the as part of the Trade Act of 1974, and it bill, from which they will not likely be the adjournment of the 113th Congress. extension provision which would keep granted duty free treatment to a wide able to fully recover, even if the GSP The second course would be to allow the entries alive, will adversely affect array of goods imported into the United is eventually extended and even if the the entries to liquidate without the States from underdeveloped countries. law is made retroactive. Some benefits benefit of GSP and act as if the issue did the poorer nations like Egypt, Kenya The goal of the legislation was to will simply be lost, and the Bureau not exist. and Ecuador, and a trade program that boost the lives of those in the poorer of Customs and Border Protection Customs chose this latter course. On has been part of the international trade nations by making it easier to sell their signaled that fact in a message to the May 16, 2014 it issued a notice to both landscape for almost forty years is now products here at a price that would be port community in mid-May. the import community and the ports wholly inoperative. By simply invoking more competitive by the elimination of When GSP expired last July, Customs that it would not honor any requests to an extension statute that was already duties. instructed the import community to flag extend the liquidation dates pending the on the books, Customs could have kept The 1974 GSP law contained within GSP-eligible products at the time of outcome of the extension debate (which the door open on these entries until the it a sunset provision – language that entry but to calculate duties without it clearly could have done under the law end of the congressional session. But allowed the bill to die if Congress took regard to GSP benefits. Customs could because GSP availability was an issue Customs acted too precipitously, and of “compliance with applicable law”). no action to extend it. How Congress no longer admit the merchandise Congress acted too slowly, and the It further announced that it would not managed (or failed to manage) this duty free, but it could put in place a poorer nations lost. sunset provision is emblematic of how mechanism by which the duties could accept any importer’s protest to the our government has lost its ability to be refunded if the bill were revived and denial of GSP benefits, since, as of the John P. Donohue is a Partner in the manage its problems as a whole. the benefits made retroactive. Generally, date of entry, no GSP benefits were In the early days of this law, as the Customs delays the liquidation (i.e. the available and therefore the refusal to firm of Clark Hill/Thorp Reed and is sunset date approached, Congress took final assessment) of entries for 314 days grant GSP benefits was not an error a member of the Firm’s International up the matter well before its planned from the date of entry, so the thinking of law. Entries made in August and Trade Practice Group. He is member expiration. Congress voted, the bill was at the time was that Congress would September of 2013 are now being of the Board of the Exchange. The Beacon 16 Fall 2014

Notes & News Michael Mattioni, president of Mattioni, Ltd., was elected Chancellor Calendar of Events of the Justinian Society on Monday June 2, 2014. He was a long term member of its Board of Directors, and served as Vice-Chancellor for the 08/25/14 National Harbor Safety/Area Maritime Security Committee Conference, Hosted by the Mariner’s Advisory Committee past two years. , an associate attorney at Mattioni, Jennifer Popelack Hyatt Regency Philadelphia, Penn’s Landing Ltd. was also elected as a member of the Board. Congratulations to Visit www.trb.org/Main/Blurbs/168413.aspx both! 09/09/14 Seamen’s Center of Wilmington Fall Fun(d)Raiser, Fireston, Michael J. Lovejoy retired from Customs and Border Protection on Wilmington, DE. Contact: 302-575-1300 or [email protected] July 3. Many readers of The Beacon will remember working with Mike Tri-State Maritime Safety Association Board Meeting when he was Port Director in our region. Since he left the area, he has been serving as Director of Field Operations for Customs in Baltimore, 09/10/14 Maritime Exchange Board Meeting where he continued to provide his assistance to the Exchange and its members when needed. Best wishes on your retirement, Mike! 09/12/14 Ports of Philadelphia Maritime Society Russ Larsen Memorial Golf Outing Springfield Country Club, Springfield, PA In May, the Delaware River Port Authority conferred the annual Contact Mike Scott: [email protected] Officer Christopher Milito Award toOfficer Jessica Gabe, who was named 2013 Police Officer of the Year. Officer Gabe was selected for Ports of Philadelphia Maritime Society Annual Crab Feast her leadership, work ethic, academic achievements and consistently The Deck at Harbor Pointe, Essington, PA superior professional performance. Other honorees were commended Contact Theresa Penot: 215-783-9484 or [email protected] and recognized for heroism, bravery and meritorious service. 09/16/14 Seamen’s Center of Wilmington Board Meeting

Welcome Aboard Philadelphia Regional Port Authority Board Meeting 09/17/14 World Trade Association of Philadelphia Annual Banquet Anchor Consultants Cory Brothers (USA) Inc. Cescaphe Ballroom, Philadelphia, PA 1224 Baltimore Pike 10000 Memorial Drive Contact Deborah Ingravallo: 856-642-3957 Suite 205 Suite 100 10/06/14 Traffic Club of Philadelphia Golf Outing Chadds Ford, PA 19317 Houston, TX 77024 Radnor Valley Country Club, Radnor, PA 610-945-1839 713-688-5353 Contact Maureen Waddington: [email protected] [email protected] [email protected] 10/08/14 Maritime Exchange Executive Committee Meeting www.anchor-consultants.com www.corybrothers.com 10/15/14 DRPA/PATCO Board Meeting The Chapel of Four Chaplains Holiday Inn Express Penn’s 10/17/14 Seamen’s Church Institute Annual Fall Gala Navy Yard, Building 649 Landing Adventure Aquarium, Camden, NJ 1201 Constitution Avenue 100 North Columbus Boulevard Contact Joan Andrel: 215-940-9900 or [email protected] Philadelphia, PA 19112 Philadelphia, PA 19106 10/21/14 Philadelphia Regional Port Authority Board Meeting 215-218-1943 215-627-7900 [email protected] [email protected] 11/12/14 Maritime Exchange Board Meeting www.fourchaplains.org www.hiepennslanding.com For a complete schedule and event details, visit www.maritimedelriv.com