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PERMIT NO. 1635 THE MARITIME EXCHANGE Serving Delaware, New Jersey and 240 Cherry Street BEACON , PA 19106 Fall 2012 ADDRESS SERVICE REQUESTED Volume 22, No.3 http://www.maritimedelriv.com w [email protected]

Delaware Deepening: Progress Interview with Made on Multiple Fronts Kevin Castagnola Executive Director and CEO With work well underway, project proponents con- Ballard Spahr attorney Harry Weiss, who argued tinue to rack up key victories to advance the deepening the appeal for the Philadelphia Regional Port Author- South Jersey Port Corporation of the main shipping channel from 40 ity (PRPA), said that “This decision is legally signif- to 45 feet. Included among these are a critical favor- icant because for the first time a court has analyzed a able federal court ruling, the surety of additional fund- provision of the Clean Water Act that clears restric- ing, and a contract award that initiates the third phase tions that might otherwise apply to projects [like the of the dredging project by summer’s end. 45’ project as opposed to routine maintenance dredg- On July 3, a three-judge panel of the Third Circuit ing] that are deemed necessary to maintain naviga- Court of Appeals upheld separate rulings by Federal tion.” District Judges in Delaware and New Jersey stating the “This is a major milestone toward completion of U.S. Army Corps of Engineers had complied with all the channel deepening project,” said Maritime Ex- state and federal environmental laws and could move change President Dennis Rochford, “and it clears the forward to continue to deepen the 102-mile shipping way as we move forward on securing additional funds channel between Philadelphia and the sea. Circuit for the project and dredging additional sections of the Judge Anthony J. Scirica, who authored the 67-page river.” opinion, wrote, “For over twenty years, the Corps has State and federal funding for this project through devoted substantial efforts to evaluating the proposed early summer totals just over $75 million. This in- five foot deepening project [of] the Delaware River. It cludes $30 million released from Pennsylvania, $16.8 has published three comprehensive National Environ- million in the Corps’ FY12 Work Plan, and approxi- mental Policy Act reports, received multiple rounds of mately $30 million of proposed federal funding that public comments, and had immeasurable communica- tions with relevant state and federal agencies.” continued on page 11 Kevin F. Castagnola, a 25-year veteran man- ager of the South Jersey Port Corporation (SJPC) was named by the SJPC Board of Direc- TRACS Goes Live on ACE tors at its meeting in January to head the corpo- ration as Executive Director and CEO. The On August 7, the Maritime Ex- System (M1). The migration marked a September 29, 2012 end-of-life Beacon caught up with him to discuss a range of change successfully converted the end of a multi-year project that in- cycle for its aging Automated Mani- issues important to our local port community. TRACS, its community based cargo cluded several months of develop- fest System (AMS) for ocean and rail manifesting and release system, to ment and over a year of testing. manifests. By that date, all AMS fil- Q: What are your short and long-term objec- the Automated Commercial Environ- Earlier this year, Customs and ers would have to convert their sys- tives as Executive Director and CEO for the South ment (ACE) Multi-Modal Manifest Border Protection (CBP) announced tems to ACE. By the end of July, Jersey Port Corporation? approximately 53% of all ocean and A: For over 25 years, I had the privilege to work rail manifest submissions were being under the tutelage of Joseph A. Balzano, who provided PA Governor Tom Corbett Supports processed through ACE M1. the vision and stability in leadership to grow the South 45’ Channel Project at Press Conference The TRACS migration involved a Jersey Port Corporation’s mainstay terminals in Cam- coordinated effort between the Ex- den, New Jersey, later in Salem, New Jersey, and the change, its developers, and CBP. To current major expansion at the Paulsboro Marine Ter- most participants, the migration was minal with the support from the SJPC Board of Direc- virtually transparent, as most of the tors. Following Mr. Balzano’s passing late in 2011, I modifications to the TRACS system was appointed as the Executive Director by the SJPC to meet the ACE requirements were Board and Governor Chris Christie. “behind the scenes.” After a brief Recognizing the uncertainty of a global rebound maintenance window, TRACS users and a return to a robust recovery, prudently, the SJPC were reconnected to the system and right-sized its staffing, trimmed operational costs and were active in ACE M1. made management decisions that have resulted in Among the most substantial greater efficiencies and increased operational rev- changes were the accommodations enues, thus positioning the agency to be prepared to for the multitude of new status mes- foster growth, enhance public/private partnerships and Pennsylvania Governor Tom Corbett addressed more than 200 regional business sages (e.g., holds and releases) that serve to improve New Jersey’s intermodal transporta- and labor stakeholders at an August 7 Philadelphia Regional Port Authority (PRPA) can be generated through ACE. As tion infrastructure. Additional efforts for the near term press conference applauding the progress of the Delaware River Main Channel part of the International Trade Data include leveraging new technologies to bring efficien- Deepening Project. The event, held at Packer Avenue Marine Terminal, was at- System (ITDS) initiative, conceptu- cies and real-time responsiveness in managing data tended by more than a dozen federal, state and local officials and legislators. alized as single portal through which relative to cargo movements through the port, as well Shown on the dais in this photo behind Corbett on his left are (left to right) Senator trade and federal agencies communi- as enhancements for improved overall port security. Bob Casey (D-PA) and Pennsylvania Lieutenant Governor Jim Cawley, and to the Governor’s right, (right to left) PRPA Chairman Charles G. Kopp, Esq., Represen- cate, participating government agen- Our rivers and connections to the ocean are high- tative Bob Brady (D-PA), and PRPA Executive Director James McDermott. Others cies such as Coast Guard, the ways of international trade that are no less important attending the press conference but not shown in this photo included: Senator Pat Environmental Protection Agency, than the interstate highway system. No civilization that Toomey (R-PA); Representative Patrick Meehan (R-PA); State Representative and the National Marine Fisheries hopes to tap into a global economy can prosper without William Keller (D-PA); Captain James Roche, President, Pilots Association for the Service will begin to communicate leveraging its capabilities, so expanding the port assets Bay and River Delaware; Dennis Rochford, Maritime Exchange President; and cargo hold and release messages di- Boise Butler, President, ILA 1291. continued on page 3 continued on page 10 The Beacon 2 Fall 2012

Overcoming Significant Challenges

vicinity of the Philadelphia International Airport additional market share once the economy re- and the , with work expected bounds. This is a prudent strategy. to begin in September. It is expected that Reach No doubt, a weak economy will stretch out the “D,” a 14-mile stretch of the channel in Delaware, timeframe within which new investments are con- will be deepened beginning December, 2012. sidered and made. Future global economic In September of last year, in what was consid- growth, along with the expansion of the Panama At this ered a thunderbolt to both our regional port and Canal, are two factors driving investments in in- point in time economy, it was announced that three oil refineries frastructure projects at ports up and down the East last year, our port located in Pennsylvania would be sold or shuttered Coast. As an example of expected growth, Ja- was confronted with a number of uncertainties, by summer’s end, 2012. The challenges to our re- maica, already a major trans-shipment hub for Far challenges and opportunities. Twelve months gion to deal with this issue were of a monumental East container traffic coming through the Panama later, these issues are now being resolved in a man- nature, to say the least. Industry, labor, and all lev- Canal for East and Gulf Coast ports, plans to ex- ner where we can be cautiously optimistic about els of elected officials came together to save re- pand its annual capacity from the current 2.5 M the future of our port. gional jobs. In the end, of the three refineries, two TEUs to 5 M TEUs. One issue that continues to be front and center will continue to operate and process crude oil and Here on the Delaware River, the building for our port community is the deepening of the blocks are in place to capitalize on these opportu- produce refined products. The Trainer facility Delaware River main shipping channel to 45 feet. nities. A new South Jersey Port Corporation cargo comes back on line this fall as Monroe Energy, and This time last year, after over 20 years of collective terminal is under construction in Paulsboro, New the Sunoco Philadelphia facility will continue to effort to secure federal funding for the project, the Jersey. Private investors are looking at the oppor- operate in partnership with the Carlyle Group as final push was being made to include funding in tunities to invest in a new Philadelphia Regional the FY12 Corps of Engineers budget. The logjam the joint venture Philadelphia Energy Solutions. Port Authority container terminal at the Philadel- broke in February of this year when federal funds The final disposition of the Sunoco Marcus Hook, phia Navy Yard. And the Port of Wilmington is were secured for FY12 and included in Appropri- Pennsylvania refinery remains to be seen. exploring opportunities to partner with a private ation Bills for FY13. And earlier this summer, a While the petroleum and chemical processing entity to invest in port infrastructure projects. Federal Appeals Court ruled in favor of the Corps, industries will continue to face economic and reg- So yes, if the past 12 months are any indicator, clearing the way to continue deepening the chan- ulatory challenges for the foreseeable future, par- cautious optimism is certainly warranted for our nel. ticularly throughout the northeastern U.S., our regional port community in the coming year. Time Uncertainty with respect to the future of this regional port complex surely benefits from the new will tell. project has now been replaced with a sustainable life breathed into this vital sector of our economy. path forward to complete this project by 2016. A And as current economic conditions are also contract has been awarded for the deepening of the adversely impacting global trade, the shipping in- next section of the Delaware known as Reach “A,” dustry dependent on this trade continues to look an 11-mile stretch of the channel located in the for opportunities to invest in port infrastructure in order to be positioned to both recover and capture The Beacon 3 Fall 2012 Carlyle Group/Sunoco Partnership Keep Refinery Open The oldest and largest refinery on the East Coast In April, Sunoco and Carlyle released a state- interest and oversee day-to-day operations. The remains operational as a result of a joint venture ment naming the joint venture Philadelphia Energy company plans on $200 million worth of capital im- between Sunoco and global asset manager Carlyle Solutions, and stating that not only would the provements at the site, along with a new leadership Group. newly-created entity retain current refining jobs, team. “We could not be more pleased with this out- The Philadelphia refinery, which has about 850 but that up to 200 more could be created as the re- come,” said Michael Nesbitt, Manager, Marine workers and produces up to 330,000 barrels a day, finery is updated and expanded. Services for Sunoco and Maritime Exchange Board was originally scheduled to close in August. How- According to officials, under terms of the agree- Member. “Existing jobs will be preserved. New ever, earlier this year, Sunoco announced that dis- ment, Sunoco will contribute its refinery assets to jobs may be created. What better reasons could cussions with Carlyle Group were underway about the joint venture in exchange for a non-operating there be for celebration of this business develop- the plant remaining viable. minority interest. Carlyle will have the majority ment?” Delta Subsidiary Monroe Exchange Chairman Visits Rhoads Maritime Industries Energy Acquires Trainer Refinery Complex

On April 30, Monroe Energy, a ment reached with the United Steel wholly-owned subsidiary of Delta Air Workers, Delta said. Lines, reached an agreement with Monroe is partnering with leading Phillips 66 to acquire the Trainer Re- energy companies to supply crude oil finery Complex south of Philadel- and receive jet fuel in exchange for phia. The acquisition includes Trainer’s non-jet fuel outputs. Under pipelines and transportation assets a three-year agreement, BP will sup- that will provide access to the deliv- ply the crude oil to be refined at the ery network for jet fuel reaching facility. Monroe Energy will ex- Delta’s operations throughout the change gasoline and other refined Northeast, including its hubs at La- products from Trainer for jet fuel Guardia and JFK. from Phillips 66 and BP elsewhere in After receipt of $30 million in the country through multi-year agree- Chairman John Reynolds (left) and his business partner, Nick Manzi, pictured beneath state government assistance for job ments. the Aegis Destroyer Yorktown at Rhoads Inc. new graving dock, during a recent inspec- creation and infrastructure improve- Trainer will be run by a seasoned tion visit hosted by Board Member Admiral Joseph C. Hare. ment from the Commonwealth of leadership team headed by 25-year Pennsylvania, Monroe’s investment refinery veteran Jeffrey Warmann. to acquire the refinery will be $150 Trainer will be Monroe’s only refin- Harbor Maintenance Tax Update million. Monroe will spend $100 ery, and not part of a larger system. million to convert the existing infra- Because of this, Monroe can focus House and Senate conferees have This year, funding for dredging is structure to maximize jet fuel pro- solely on optimizing Trainer and its concluded work on H.R. 4348, Moving expected to increase to $1 billion from duction. Production at the refinery contribution to Delta rather than opti- Ahead for Progress in the 21st Cen- $850 million last year. While clearly an combined with multi-year agree- mizing its contribution to a much tury (MAP-21). improvement, the total collected by the MAP-21, also known as The High- HMTF is expected to be $1.5 billion, ments to exchange gasoline, diesel, larger integrated oil system. way Bill, was passed by both the meaning the surplus in the fund will and other refined products from the Monroe expects changes to the House and Senate, and then signed have grown to $7 billion by the end of refinery for jet fuel will provide 80 plant infrastructure to increase jet fuel into law by the President on July 6. the year. percent of Delta’s jet fuel needs in the production to be complete by the end On the critical issue of ensuring Kevin Castagnola, Executive Di- U.S. of the third quarter, resulting in ex- that funds in the Harbor Maintenance rector and CEO of the South Jersey Former Trainer workers would be pected 2012 fuel savings of more Tax Fund (HMTF) are used for their in- Port Corporation and Chairman of the offered jobs under a tentative agree- than $100 million. tended purpose of dredging and main- American Institute for International taining coastal ports, harbors and Steel’s (AIIS) newly-formed Ports waters, an issue championed by the Committee, stated, “We thank those Realize America’s Maritime Promise AIIS members who took the time to in- (RAMP) Coalition, this bill falls short. form their Senators and Representa- It does not provide for full funding of tives of the HMTF funding issue, and HMTF for dredging purposes. the criticality of these funds being What MAP-21 does do suggests made available for their intended pur- Dennis Rochford, Exchange Presi- pose, which is keeping our waterways dent, is to “give the impression that the navigable and safe.” Like the Ex- Administration should request, and change, AIIS has made HTMF one of that the Congress should expend, all its key agenda issues. the monies collected via the HMTF for their intended purpose.”

TRACS Converts to ACE continued to do so until the first production release of of Maritime On-Line. The system was enhanced to ACE M1 in December 2011. provide filers with greater flexibility to submit stow continued from page 1 “The entire process of developing specifications, plans for vessels with multiple manifests. The Stow programming, testing, and debugging has been very Plan system includes functionality to import contain- rectly through ACE. CBP continues to work with the intense for Exchange IT and Operations staff,” said ers from TRACS manifests to help eliminate re-key- federal agencies that have the authority to place such IT Director Michael Fink. “Of course, we are very ing efforts, and also accommodates BAPLIE imports holds in the system to implement the technical and familiar with large migration projects as demonstrated from versions 1.x, 2.x, and 3.x. legal framework to accomplish this, and the Exchange by the periodic upgrades to Maritime On-Line we “We’ve improved on the system and have worked modified TRACS code to accommodate the many po- have implemented over the years. We had a good plan with our users to redevelop the Stow Plan module to tential messages it could receive. and talented staff working on all aspects of the tran- Beyond its own efforts to prepare for the ACE M1 better accommodate all of the community’s needs,” sition which contributed to the success of the project conversion, the Exchange was selected to be one of Fink said. “We’ve always adhered to the ‘commu- as a whole.” the early adopters to test CBP’s initial rollout of ACE. nity-based’ system approach, and that means listen- Beginning in May of 2011, the Exchange and a select ing to the participants who are actively engaged in group of other participants representing a cross-sec- Major Stow Plan Enhancement Released Maritime On-Line on a daily basis. The users’ sug- tion of the trade community assisted CBP in debug- In addition to the TRACS migration, the Exchange gestions and comments have been invaluable through ging the earliest version of the software, and also released its new version of the Stow Plan module all of our development processes.” The Beacon 4 Fall 2012

A River Runs Through It! Capt. Moore Assumes Command of By: CAPT Kathleen Moore, USCG Sector Delaware Bay short time in New Orleans and the time in Corpus Sector Delaware Bay Christi truly exploded my appreciation for the inland tug and barge business and the national treasure that The Delaware River runs through it! When I first is our Intracoastal Waterway. learned I would be making my way northeast from Texas to lead the team at CG Sector Delaware Bay, Responding to Natural Disasters and Casualties my non-Coast Guard, South Texas friends could not I must admit, there is one thing I don’t miss about fathom where I was actually going. The Coast being on islands: the vulnerability of island infra- Guard has an office in Delaware? What port is there structure to catastrophes! Oh, I do love the tropics, at the Delaware Bay? Leave it to the Coast Guard but it seems islands are more-often-than-not in the and its process of trying to name Sectors that they path of some storm that threatens to level the place! struggled to find a name that would encompass the Hurricane Georges did a number on Puerto Rico in complexities of an area that includes the world’s 1998 and Super Typhoon Ioke rolled Wake Island as largest freshwater port, and most of the recreational a Cat V storm in 2006. I’m certainly grateful for the bays and beaches of New Jersey and all of Delaware. experience I’ve had in responding to big storms, but I was delighted by so many aspects of the assign- I am also grateful for now being nestled on the East ment and the chance to knit together many of the les- Coast where the infrastructure is more robust and the sons learned during the experiences of my career! other modes of transportation give us certain recov- On May 24, at a U.S. Coast Guard Change of Com- Let’s see if I can describe to you what I mean. ery options that islands just don’t have. I’m also mand ceremony held at the Sheet Metal Worker's quite grateful to be so close to the Atlantic Strike Union Hall, Capt. Kathleen Moore assumed command The Coast Guard’s Role in a Diverse Port of Sector Delaware Bay. Pictured (l-r): Maritime Ex- Community Team and the states of Pennsylvania, New Jersey and Delaware with talented, well equipped and practiced change President Dennis Rochford, Capt. Moore, and I spent 1994-1998 in Vessel Inspections and In- emergency responders. I am also happy to have had Rear Admiral Steven H. Ratti, Commander, 5th Coast vestigations in the ports of Los Angeles and Long some fantastic experience in responding to vessel ca- Guard District. Beach. While many people know the location as a sualties, including a Russian cement carrier aground high-volume container port, it also had a significant off San Juan, Puerto Rico for four and a half months Enduring Port Partner Relationships amount of bulk cargo, break bulk traffic and included in 1999, and a certain U.S. Navy cruiser that went tanker and LPG traffic supporting the refineries of aground in front of Honolulu Airport in 2009. As I begin to recognize the names and faces of Wilmington (California…eerie, right?). This port the maritime community throughout the Delaware complex provided an exceptional foundation for my Port Security Post 9-11 River and Bay, I never forget that you all have early operational career in Marine Safety. These Both the time in Hawaii and two years in Corpus known and worked with one another for decades. I were the early days of Port State Control and a Christi, whose area boasts both significant petroleum know that we’re just getting to know one another and tremendous growth period for our inspectors to un- and chemical tanker traffic and facilities, have pro- that I need to earn your trust. I know many of you derstand the impacts of control measures on ships, vided fantastic environments for problem-solving still cringe at the thought of a new Captain of the agents, owners and facilities. Three-year tours on the challenges of vessel and facility security, under- Port every three years. Thank you, from the bottom two island archipelagos, on Puerto Rico in the standing the trade-offs of Safe Refuge and dealing of my heart, for the warm welcome so many of you Caribbean and on Oahu in Hawaii, gave me a deeply with the needs of seafarers and shore access. When have extended. I also echo the high praise many of rooted understanding of how dependant many com- it comes to our military port players, Hawaii’s Pearl you have expressed for the talented professionals munities and businesses are on the marine trans- Harbor was a great tutor and the military outloads of that are the men and women of CG Sector Delaware portation system. While I was in Puerto Rico, we Corpus Christi provided a great learning opportunity Bay. We’re committed to serving this area following commissioned the EcoElectrica LNG import termi- as well. the very best traditions of our Service, with profes- nal supplying natural gas for power to the island. A sionalism and integrity. The Beacon 5 Fall 2012

Pennsylvania Governor Tom Corbett Steps Philadelphia Welcomes Down from DRPA Board Lt. Col. Becking Pennsylvania Gov. Tom Corbett mitted to that mission, and the time flat annual operating budgets for announced that he would be step- has come for me to leave it in the two years in a row. ping down in August as chairman of board’s care.” The incoming chairman and the the Delaware River Port Authority Gov. Corbett appointed himself governor’s latest board appointment (DRPA) Board of Commissioners. to the board and was subsequently both have extensive experience in The governor also announced elected chairman in March 2011. government, trial law and non- that he would name Andrew J. During his tenure, the DRPA has profit corporate governance. Reilly of Middletown Township, ended the controversial policy of is- “As chairman, Gov. Corbett has Pennsylvania to succeed him on the suing bonds to fund economic de- given the DRPA every tool it needs board. The governor recommended velopment projects unrelated to to become one of the most efficient, that the board elect sitting Commis- transportation, reduced its aggre- customer-focused and respected sioner David F. Simon of Gwynedd gate debt to just over $1.2 billion transportation agencies in the coun- Valley, Pennsylvania to serve as from a high of about $1.45 billion, try,” Simon said. “I intend to put chairman. moved forward on the Walt Whit- those tools to work. We will con- “Leading the DPRA through a man Bridge redecking and PATCO tinue to focus our mission on trans- period of transition has been a wel- passenger car renovation projects, portation. We will continue to come challenge,” Gov. Corbett said. decreased the authority’s 2012 debt strengthen management controls “When I joined the Board of Com- service by approximately $2.5 mil- and pursue management efficien- missioners last year, I said I would lion per month, increased its opera- cies. Most importantly, we will add remain only as long as it took to re- tional liquidity, created the DRPA value on our customers’ terms, not turn the authority to its core mis- Office of the Inspector General to our own.” The U.S. Army Corps of Engineers Philadelphia sion: Providing safe, reliable, fight waste and abuse, completed its The Exchange congratulates District ushered in new leadership as Lt. Col. customer friendly transportation to first reverse auction for electricity Governor Corbett on a job well John C. Becking assumed command from Lt. Col. the people of southeastern Pennsyl- at an estimated annual savings of done and looks forward to continu- Philip M. Secrist, III during a June 26 ceremony vania and southern New Jersey. I about $1.3 million and kept spend- ing to work with the DRPA on is- in the Wanamaker Building's Crystal Tea Room. believe the board is reliably com- ing in check by submitting nearly sues of mutual interest and concern. The Beacon 6 Fall 2012 The Intersecting Roads of Tax and Customs in Related Party Pricing

mensely complicated tax transfer pricing Eventually Customs found authority in rules was irrelevant to a determination of a rarely utilized provision of the regula- By: John P. Donohue, Esq. the integrity of a transfer price for Cus- tions which recognized a price if it were Thorp Reed & Armstrong, LLP toms purposes. fixed by a “formula.” The term was not oth- A crack in the wall of the separation erwise defined in the regulation, but the apart from every other entry.” International between the two agencies began to show example that it gave was clear. Assume in Trade lawyers could recite the mantra by in 1993, when the Congress enacted into January A agrees to sell and B agrees to heart. And importers who had spent hun- the Customs law a notion known as “entry buy a product sold on the London Com- dreds of thousands of dollars fashioning reconciliation.” For the first time, Customs modity Market for delivery in June. As- a transfer pricing policy to comply with the departed from the notion that every entry sume that both parties agree that they will IRS standards were told that those stan- stood apart from every other entry. Cus- not fix a price until the date of export, and dards were irrelevant in determining Cus- toms allowed importers to make one value that the price will reflect the price then toms valuation compliance. Forget for a at entry, subject to that value being later quoted on the London Market. Even minute that we are one nation; managed adjusted when certain elements of value though, at the time of the agreement, no by one federal government; under one set ultimately were resolved. So for example, price is fixed, the ultimately derived price of federal laws; subject to the jurisdiction if in calculating the value of his product for is defensible, according to the regulation of one Treasury Department; selling to a John P. Donohue, Esq customs purposes, an importer of auto- because the formula is fixed. From this customer at only one sales price. De- mobiles wanted to take an exemption for starting point, Customs concluded that a pending upon the hat worn that day by It had been the mantra of the U.S. Bu- U.S. origin tires and windshields, but price arrived at by a transfer pricing for- Uncle Sam, compliance with one set of lacked the specifics from his supplier as mula could nonetheless qualify as a valid reau of Customs and Border Protection for laws did not mean compliance with an- years. Whenever an importer, facing a to the value of those American compo- price, even if later adjusted by the terms of other. nents, the Customs entry reconciliation that formula. And when the formula was challenge by Customs to his related party To the executives running international pricing, argued that his transfer pricing law would let the importer hold open the created to comply with the tax laws, the businesses, this refusal by government to final valuation of all of the entries until the had been reviewed by the IRS, Customs two roads, heretofore running only paral- recognize the common objective of com- importer got the documents supporting lel, actually merged. And the merger be- would steadfastly announce: “We will not plying with two laws made no sense. Nor the exact value of the U.S. origin compo- came far more palatable if the entries accept proof of IRS compliance as proof did it make any more sense to their nents. And one “reconciliation entry” was were subject to reconciliation, and the val- of Customs compliance. We are two dif- lawyers, who would explain the distinc- filed to adjust the pricing of all automobiles ues were left open with an intention of ferent agencies. We enforce two different tions, but would not defend the position. containing those components. All of a later adjusting them. Thus the notion of laws. Tax valuation is not the same as If a price were acceptable to the IRS, sudden, every entry did not stand sepa- reconciliation, in harmony with the broader Customs valuation. Our perspectives are the lawyers would argue, why would not rate and apart from every other entry. view of the notion of tax law compliance, very different. Tax law looks to annual that same price be acceptable to Cus- As the pricing of related party goods created the outcome that the legal and statements of profit and loss. We at Cus- toms? And if Customs disregarded a increased in complexity, importers and re- business community had been seeking for toms look at a transaction-by-transaction transfer price, what would be the impact lated party sellers were not simply adjust- years. profitability because Customs entries are on that decision for tax purposes? Rou- ing for items such as American origin In a ruling issued on May 30, 2012 and presented on a shipment-by-shipment tinely importers would be told that proof of components. They were adjusting prices effective on July 30 of this year, that os- basis. Each entry stands separate and federal tax compliance with the im- to ensure that each party to the interna- tensibly revoked a single ruling issued to tional transaction had an appropriate level one chemical company denying it post of profitability to satisfy the taxing author- entry downward adjustments, Customs ities in both buyer’s and seller’s countries. agreed that a post entry downward ad- In short, they were adjusting transfer justment to price could be legally recog- prices to ensure tax compliance. In some nized. And it gave substantial credibility to instances, the import values of the goods the impact of IRS compliance when it went up, to ensure adequate profitability ruled that a price decrease that was to the seller, and in other instances they prompted to ensure compliance with the went down, to ensure adequate profitabil- tax transfer pricing rules could be recog- ity to the importer. nized for Customs purposes as a “formula How were such adjustments to prices, price” if a five part test was met. The price many of which were made after entry, to would be respected if: be treated? The initial reaction by Cus- 1. The transfer pricing policy was in toms was simple. When a post entry price effect before the date of importation of the was increased, Customs simply included goods; the upward adjustment in dutiable value 2. The pricing policy, including the pol- and announced it to be part of the “total icy prompting the adjustments, was used price paid or payable, whether direct or in- in the preparation of U.S. tax returns; direct,” as the law states. However, when 3. The transfer pricing policy specifi- the post entry adjustment prompted a de- cally states how such prices are to be de- crease in entered values, Customs was termined; less certain. Generally the downward ad- 4. The company can support the ad- justments were disallowed and duty re- funds were denied, leading those who justment from its books and records; and study such things to recall the July, 1961 5. No other conditions exist that would comment by President Kennedy about the affect the acceptance of the transfer price. Soviets: “We cannot negotiate with those Johnny Mercer would have been who say ‘what’s mine is mine and what’s happy. The irresistible force of the Cus- yours is negotiable.’” But as the number toms mantra finally met the old immovable of downward adjustments increased and object of tax compliance, and something the refusal to recognize them became eventually did give. Customs found solid more untenable, Customs, to its credit, authority in a reconciliation law actually began to examine more closely if there enacted for other reasons, and in a the- could be authority to both recognize the ory of “formula” that gave the Agency the IRS compliance work and in so doing, rec- flexibility that it both wanted and needed. ognize the downward adjustments that And a common sense intersection of the were prompted by those who were only laws of tax and customs has been ad- trying to abide by the tax laws of several vanced. Maybe President Kennedy was nations. It literally took years for the no- right. Maybe what’s ours really is ours. tion to crystallize, but eventually it did. The Beacon 7 Fall 2012 Marcus Hook Facility Hosts USCG/DBRC Exercise The Sunoco Marcus Hook Facility recently hosted recent oil spills have shown that working together and the U.S. Coast Guard Atlantic Strike Team (AST) and pooling assets towards a common goal have signifi- the Delaware Bay & River Cooperative (DBRC) for cant advantages over separate operations and con- an emergency response exercise. flicting objectives. Therefore, the DBRC members The exercise simulated an emergency product and the USCG are committed to continuing joint lightering operation: the transfer of oil or hazardous training, and working together on projects that en- material from a stricken vessel to another vessel, hance the regional ability to prepare for and respond barge, or temporary storage device. to oil spills on the waters of the Delaware River and In this simulated vessel casualty, a self-contained Bay. Sunoco is a long standing member of DBRC and hydraulic pumping system was positioned on Marcus fully supports this kind of activity; this is a great op- Hook’s 2B Dock area to provide hydraulic pressure portunity for all involved, according to Bill Kelly of to power a portable viscous oil pumping system posi- Sunoco Marcus Hook. tioned on the simulated stricken vessel. The system The Delaware Bay and River Cooperative is a long was used to transfer water, as ‘simulated oil’ from a standing oil spill preparedness and response asset for simulated stricken vessel (the Oil Spill Recovery Ves- users of the Delaware River and Bay. The DBRC, a sel DELBAY) onto a DBRC barge. In an emergency, non-profit corporation, is fully funded by the petro- DRBA and AST joint exercise simulating an emergency this process would prevent oil or other material from leum and transportation industries, and is organized lightering operation. Their common mission: Oil Spill leaking into the surrounding water via a ruptured tank, to respond to and protect the environment from oil Response. or from tanks that are in jeopardy of being ruptured. spills on these waters with pre-staged equipment No actual oil was moved during the exercise, but throughout the area. The DBRC has been providing weapons and radiation. The other two national teams team members successfully tested their readiness, these services since 1977 and can respond to spills in are based in Mobile, Alabama and Novato, Califor- equipment, and ability to work together. The partici- the 110 mile area from the Betsy Ross Bridge in nia. The exercise demonstrated the advantages of in- pants included 24 members of the USCG Atlantic Philadelphia to the offshore areas outside the dustry and government working together towards a Strike team and six members from the DBRC. The Delaware Bay. common goal. The petroleum and transportation in- DBRC and AST have a common mission – oil spill The USCG Atlantic Strike team, based in Fort Dix, dustries and the DBRC have always enjoyed a very response, so it makes sense to train together and share New Jersey, is one of three in the country. These good working relationship with the USCG, and this expertise and techniques, said Rich Schultz, Com- teams are designed to rapidly deploy to emergencies exercise is just one example of the efforts to maintain manding Officer of the AST. Lessons learned from including oil spills, hazardous materials, biological that relationship. The Beacon 8 Fall 2012

Von Dreele Retiring from SCI The Rev. Canon James D. Von ered to phone home, surf the Internet Dreele, a veteran Episcopal priest, has and relax over games and television announced his retirement as Executive programs. Director of the Seamen’s Church Insti- Now the ministry is increasingly tute of Philadelphia and South Jersey mobile, providing services aboard ships (SCI) and Chaplain to the Port. His re- and transportation ashore. It helps sea- tirement is effective November 30, farers manage under tightened security 2012. and still have their needs met, to use The announcement was made by personal laptops and cell phones to Marylou Robinson, an executive with communicate with friends and families CSX Intermodal and president of the back home. 169-year-old nonprofit organization’s The Seamen’s Church is an ecu- board. She has appointed a committee menical and independent locally gov- that includes people from erned organization key areas of the local affiliated with the Epis- maritime industry and copal Diocese of Penn- church community to sylvania. It is part of a search for a successor and global network of simi- plan the transition. lar ministries in virtually Since taking the helm every port, working to- of Seamen’s Church in gether to make seafarers 1996, Father Von Dreele’s allies in the efforts to work has touched virtu- keep commerce flowing ally every area of the in a safe and secure local maritime industry, a manner. powerful engine of the re- Father Von Dreele gional economy which has been an ordained Father James Von Dreele now includes shipbuild- priest in the Episcopal ing and repair as well Church since 1971. He 1,500-plus cargo ships and tankers. spent the first 25 years in the priesthood Speaking at local churches and local serving parishes in northern New Jersey civic organizations, he has been an ad- and Pittsburgh. vocate for the maritime industry as well After retiring from Seamen’s as for the crews aboard the ships that Church, Father Von Dreele will con- dock on the Pennsylvania and New Jer- tinue serving as a priest, mainly assist- sey banks of the Delaware River each ing the rector at St. David’s Episcopal year. Church in Wilmington, Delaware, Father Von Dreele has managed one where his family was a founding mem- issue after another in a long series of ber of the parish in 1954. difficult transitions in global seafarer Please join the Exchange in thanking ministry. Locally, the Seamen’s Center Fr. Jim for his service and wishing him was once the focal point of the work. It the very best upon a well-deserved re- has been a place where seafarers gath- tirement. The Beacon 9 Fall 2012

Ringing in Revised Garbage Regulations With the New Year By: Timothy M. Gerland, Senior Vice President charge garbage. That method of dis- pliance with the regulations and also Hudson Marine Management Services charge can be either at sea provided carry out the review and approval of that the required discharge parame- shore-based reception facilities. At In January 2013, we will not only the past MARPOL Annex V estab- ters are met, or to an approved shore present, it is not expected that the be celebrating the New Year, we will lished parameters for discharging side reception facility. Those recep- USCG intends any major changes to also be facing the implementation of certain garbage into the sea based on tion facilities are regulated under how it verifies and enforces the amended garbage regulations for the the type of garbage and the distance part 158 of Title 33 of the Code of garbage regulations, other than mak- Prevention of Pollution from Ships from the nearest point of land. The Federal Regulations which provide ing sure that the Reception Facilities (MARPOL 73/78 Annex V), which discharge of plastics material con- the parameters for facility approval under 33 CFR 158 have adequate applies to ship-generated garbage. taining plastics was prohibited. upon verification by the U.S. Coast capacity to accommodate vessels In the United States MARPOL Under the revised regulations, the Guard. and their refuse. Although one can 73/78 Annex V is regulated under discharge of virtually all garbage Additional requirements include never rule out changes in the future. the Marine Plastic Pollution Re- (with limited exceptions) is prohib- a Garbage Record Book and Man- We would anticipate seeing an search and Control Act of 1987 ited. The exceptions to these regula- agement Plan for every ship certi- increase in the amount of garbage (MPPRCA) which is codified in 33 tions include emergency and fied to carry 15 or more persons, being landed to the approved shore- U.S.C.§1901 et seq. The imple- non-routine situations, “generally” every ship 400 gross tons and above side facilities and the authorities to menting regulations are included in the discharge is restricted to food (100 gross tons and above for the closely inspect the vessel’s records the U.S. Code of Federal Regula- wastes, identified cargo residues, Garbage Management Plan) and regarding their garbage records and tions Title 33 part 151. It is impor- animal carcasses, and identified every fixed and floating platform. management plan to ensure compli- tant to note that within the United cleaning agents and additives and Enforcement of the garbage reg- ance with the new regulations. States the regulations are applicable cargo residues found in wash water ulations in the U.S. is the responsi- So as you are ringing in the New to ALL recreational, fishing, unin- which are not harmful to the marine bility of the U.S. Coast Guard, Year remember to keep all the trash spected and inspected vessels, and environment. The regulation further which is authorized to ensure com- inside the rails. foreign flag vessels on the navigable requires ships to follow garbage waters and other waters subject to management procedures onboard to the jurisdiction of the United States, minimize the garbage generated, HELP WANTED out to and including the Exclusive collect, process and store onboard Did you know... industry job postings and Economic Zone (200 miles). and discharge as appropriate either resumes are posted on the The revised regulations prohibit overboard if the garbage and vessel Maritime Exchange Web site at the discharge of virtually all types of position meet the exception param- www.maritimedelriv.com/Jobs/jobs.htm garbage, with limited exceptions, eters or to an approved shoreside re- Please visit often to check out the latest into the sea unless explicitly permit- ception facility. opportunities! For information on listing your ted under the MARPOL 73/78 As noted previously one method resume or job posting, please contact Annex V. One of the primary of garbage management onboard Donna Stargell, 215-925-2615 x 208 changes to the regulation is that in ships is to segregate, store, and dis- or [email protected] The Beacon 10 Fall 2012

Q&A With Kevin Transportation Investment Generates Eco- at the entrance to the terminal along with ap- pacts and lead to prosperity. The State of nomic Development (TIGER) Round III proximately six turn-outs and nearly 11,000 New Jersey created the SJPC as an engine Castagnola grant. The program represents a significant linear feet of rail track and sidings within the of economic growth through the develop- public and private partnership between the terminal to accommodate inbound and out- ment and operations of marine terminals for continued from page 1 South Jersey Port Corporation, Conrail and bound cargoes. the seven southern counties of the state that Salem County, New Jersey. The project in- Q: The completion of the Panama comprise the Port District. The success of along the Delaware River in southern New cludes a selection of major rehabilitations to Jersey means added value for both the Canal expansion is expected in 2014. this charge can be measured in many ways. key portions of the existing 43-mile network What economic impact do you see this One example is shown in a recent report pre- economy and the regional workforce. of existing rail lines in southern New Jersey, development having on our region? pared by the Rutgers University’s highly re- The leading economic development pro- and targeted investments in a new dockside spected Edward J. Bloustein School of gram for the SJPC is the creation of the rail capacity that will provide direct transload- A: The current expansion of the Panama Planning and Public Policy. The report, pre- Paulsboro Marine Terminal in Gloucester ing of international cargoes at the Port of Canal will double the Canal’s capacity and pared on behalf of the New Jersey Depart- County, New Jersey, from several historical Paulsboro. Each of these improvements will the resulting economy of scale advantage for industrial sites into a state-of-the-art port fa- enhance intermodal connectivity for rail larger ships is anticipated to change the lo- ment of Transportation, identified that in cility. As the economy continues its slow users and port facilities throughout Camden, gistics chains for both U.S. imports and ex- 2010, SJPC supported 1,101 direct jobs, climb out of recession, New Jersey is opti- Gloucester and Salem Counties. ports. Despite the recent worldwide 2,028 total New Jersey jobs with a New Jer- mistic that as the new terminal in Paulsboro recession, the expected general trend for in- sey annual payroll of $99 million, and net The project is divided into three distinct comes online, the economy will continue its ternational trade is one of continued growth business income of $298 million. Even in the components: (1) Approach upswing and the ports in Camden, Salem as the world’s population and standard of liv- midst of an economic recession, the ports Trestle Rehabilitation; (2) Oldman’s Trestle and Paulsboro will be poised for the incre- ing grow. The port capacity to receive the Rail Bridge and Critical Repairs to the Salem continue to support jobs and generate busi- mental growth that is sure to follow the bur- largest ships able to fit through the Canal is ness revenue. geoning of existing trade lanes and new Running Track; and (3) Paulsboro At-Grade based on a number of elements including global markets. Rail Infrastructure. The Delair Bridge is the channel depths, channel widths, turning Looking ahead, a major challenge to principal rail link between Pennsylvania and growing commerce and jobs on the water- The Paulsboro Marine Terminal, a new basin size, sufficient bridge heights, as well New Jersey and carries approximately front is also one of our major assets. That is 200-acre facility, is scheduled to be ready for as port infrastructure including dock and 98,000 carloads of freight annually, connect- crane capacity. With the current capacity of the Delaware River maritime complex that is port operations in 2014. Through the imple- ing all of southern and central New Jersey to mentation of the varied construction activi- the Delaware River limiting the size of ships comprised of three states: New Jersey, the national rail network. The rehabilitation transiting the river, there may be opportuni- Pennsylvania and Delaware. Although each ties, the terminal project has already created of the Delair Bridge Approaches will consist nearly 260,000 worker-hours or nearly 130 ties for East Coast ports similar to those state has a colloquial responsibility to grow of the replacement of deck girder spans and full time equivalent jobs of on-site construc- ports on the Delaware River to receive trans- business for its own domain, those unique associated steel work on the structure to ac- tion activity. Completion of fill material place- shipments where the largest ships would un- assets and resources each state deploys fo- commodate industry standard 286,000 lb. ment and the commencement of wharf load containers/cargo at a transshipment cused on economic development ultimately rail cars. The Oldmans Trestle Rail Bridge construction and associated terminal infra- hub located in the Caribbean or a large U.S. benefit the greater region. If a particular is the pivotal structure along the 18 mile rail structure, such as utilities, rail track and in- port for reloading on smaller feeder vessels line from Swedesboro, New Jersey to Salem business opportunity is not a good fit for our ternal roadways are expected for the for delivery to ports with less channel ca- City, New Jersey. The 100-year old trestle own facilities, we would much rather see the balance of 2012 through to the completion of pacity such as the Delaware River ports. will be reconstructed. In addition, 1.05 miles business go to one of our neighboring facili- Phase I construction. of 86 lb. track within Salem County will be re- Q: What challenges do we as a region ties than see the business leave the Our second major economic develop- placed with 136 lb. track, thereby ensuring need to address to grow commerce and Delaware River all together. Developing ment program is the Southern New Jersey ongoing operability of the rail system. Lastly, jobs in our port community? complementing facilities and partnering on Regional Intermodal Rail/Port Improvement to augment port operations in Paulsboro, a A: Seaports are powerful economic en- various initiatives can result in positive project, funded in part through the Federal new at-grade rail crossing will be constructed gines which create significant economic im- growth for the region.

The Beacon 12 Fall 2012

Morton Joins DSPC Board finance legislation but also serves on several committees and boards on be- half of the legislative branch. These include the Delaware Economic and Financial Advisory Committee, the Cash Management Policy Board, the Group Life and Group Health Com- mittees, and the Delaware Stadium Corporation. Also, the Office of the State Controller General provides staffing for the Delaware General As- sembly and, specifically, the Joint Fi- nance Committee and the Joint Legislative Committee on the Capital Improvement Program. Mr. Morton has served in the Con- Delaware’s Legislative Council of troller General’s Office since 1988, the General Assembly approved the most recently as the Deputy Controller appointment of Michael L. Morton as General. He is a graduate of the Uni- Delaware’s new State Controller Gen- versity of Delaware with a B.S. degree eral and confirmed his appointment to in Economics and a Masters Degree in the board of directors of the Diamond Public Administration. State Port Corporation (DSPC) effec- “We welcome Mr. Morton to the tive July 1, 2012. Established as a state DSPC board of directors and to the corporation in 1995, the DSPC owns Port of Wilmington, Delaware,” re- and operates the Port of Wilmington, marked Gene Bailey, executive direc- Delaware. An economic engine, tor of the DSPC. “From his years of Delaware’s seaport is responsible for service in the Controller General’s of- 4,300 family-sustaining jobs, generat- fice, Mr. Morton brings a wealth of ing $365 million in business revenue, knowledge and experience in state fi- $340 million in personal income and nancial policies, procedures and strat- $31 million in State and regional taxes egy formulation that will be of annually. invaluable assistance to the Port in our The Office of Controller General is role as an economic engine for the the fiscal oversight arm of the State of Delaware. We look forward Delaware General Assembly. As such, to his valuable guidance and counsel the Office not only prepares the State’s in the future.” The Beacon 13 Fall 2012

Exchange Annual Database Update Underway

Most readers of The Beacon have heard this request many times: please help us keep our lists current. To meet our goal of facilitat- ing communications among maritime stakeholders in our region and beyond, the Exchange has developed a database containing contact information for over 5,000 maritime professionals, legisla- tors, federal and state officials, and members of the press. We also maintain a significant number of committee and subject-related dis- tribution lists, and keeping the information current can be a daunt- ing task. Although we update our database throughout the year as infor- mation changes, we recognize that some individual updates will be missed. So each fall, we reach out to our entire constituency to ask for the latest contact information. In addition to keeping our data- base current, the information is used to publish the annual Delaware River Port Directory. As we did last year, the Exchange contacted everyone in the sys- tem via email to request confirmations or updates. The response has been very positive, and to those who have already replied, we thank you. If our email didn’t get through to you, or you haven’t yet re- sponded, we would appreciate your sending us your current contact information, including name, company, phone/fax numbers, email addresses, mailing address, web addresses, etc. And if someone forwarded a copy of this newsletter to you, and you’d like to be added to the list directly, please let us know. Send info to [email protected].

THANK YOU!!! The Beacon 14 Fall 2012 Editorial TWIC: A Tin Anniversary CG Guidance on Crew Hard to believe, but it’s true. It’s been 10 years. On August 14, 2002, the Transportation Security Administration TWIC program team first came to the Detentions is Welcome Delaware River region to meet with stakeholders to discuss the implementa- In early August, RDML J. A. Servidio, Assistant Commandant of the tion of the Transportation Worker Identification Credential project in what Coast Guard for Prevention Policy, issued an ALCOAST bulletin provid- would become the first of the two TWIC pilot programs. ing additional guidance on processing of ‘detain on board’ crew members. Many of us still remember that original three-phase pilot: TSA first mapped out the “as is” and “to be” business processes, then different card This is an important issue, and the guidance summary bears technologies were tested, and finally a prototype phase attempted to test how repeating here: the cards would work in an operating environment. Foreign national crew members may be restricted to their vessels Many of the early issues we tackled – such as which biometrics to use, while in port for either administrative or security reasons. When an card topology, scope of the background checks, liability, and cost sharing – individual is restricted for only administrative reasons, existing se- have since been resolved, though not necessarily to everyone’s satisfaction. curity requirements, including vessel and facility security plans are After publication of the TSA final rule on card issuance in 2007, we dealt sufficient and neither operational controls nor additional security with a whole host of new challenges. None of us needs to be reminded of the requirements are appropriate (emphasis added). pains – and cost – associated with enrolling in the program and activating our TWIC cards during those early months. Over time, many of those issues, too, In cases where a restriction is due to security concerns, the Captain ultimately were resolved. of the Port (COTP) shall impose operational controls requiring the vessel owner/operator to develop and implement a security plan as Yet here we are – 10 years later and facing our card renewals. And the described in Ref (A) and this message. biggest issue of all remains outstanding. There is still no requirement to use these inordinately expensive cards in This ALCOAST comes as a direct result of discussions at the National a reader. Maritime Security Advisory Committee and addresses concerns about non- Coast Guard’s latest estimate has a final TWIC reader rule at least a year standard practices at U.S. ports. If implemented uniformly, the guidance and a half away, at best. will go a long way toward aiding ship agents, owners and operators in planning their port calls. And after the more recent TWIC reader pilot program ended last year, se- rious questions remain about the reliability and performance of the card it- As industry has requested, the Coast Guard distinguishes between a self. crew member who may be a security threat and require external guards, The Maritime Exchange has always supported the TWIC concept – and and those who are detained for administrative reasons, such as lack of visa. it’s as valid today as it was in 2002. If maritime facilities are all going to re- If administrative, the guidance holds that existing vessel and facility se- quire IDs, there should be a standard such that truckers, longshoreman and curity plans are sufficient and “crew member security plan provisions . . . others who need to access multiple facilities are not required to obtain sepa- do not apply.” rate IDs for each terminal. But after all this time, expense, and imposition on In the Delaware River area, where a large number of ship calls are tram- maritime businesses and workers, it’s appropriate to question whether we pers, this is a real issue. Many arriving crew members do not have visas. should pursue the program set out all those years ago. Detaining these mariners on board is hard enough; treating them as crim- At this juncture, a decade later, modifying the path forward in a collabo- inals by posting third party guards – armed or otherwise – is uncon- rative effort among policy makers and maritime interests must and should be scionable. considered. Since the enabling regulations for the Maritime Transportation Security This new Coast Guard guidance is an excellent first step in the effort to Act were promulgated, each maritime facility has made significant improve- balance security concerns with humanitarian, operational and economic ments in its security posture. Facilities are physically harder, security train- concerns. But there is more that can be done. ing is more comprehensive, and technologies such as video analytics have The next step is to ensure Coast Guard and Customs adhere to the guid- enhanced detection capabilities. ance at the ports of entry. In addition, in concert with the ALCOAST, in Rather than investing hundreds of millions of additional dollars to acquire May, the NMSAC adopted a series of recommendations directed at ad- biometric readers and associated infrastructure, we need to evaluate alterna- dressing arriving and repatriating crew processing. (click here to view tives that include those core TWIC components which complement the other recommendations). Coast Guard and Customs have to yet to respond to facility security improvements put in place over the past ten years. We need the request for a joint meeting to further the dialogue. to eliminate those measures that are both technologically and operationally unworkable — and all too costly to be justified. There is room and justification for modifying current procedures – and This 10-year landmark is significant. We should take advantage of this regulations if necessary. The federal agencies must be willing to work opportunity to have a meaningful and fruitful discussion. Let’s make sure we with industry to identify mutually acceptable solutions to today’s prob- get it right! lems.

The Beacon is the official newsletter of the Maritime Exchange for the Delaware River and Bay. The Exchange encourages its readers to submit letters to the editor at any time in response to articles that appear in The Beacon or to address other topics of interest to MARITIME EXCHANGE the port community. for the Delaware River and Bay Please direct any correspondence or inquiries regarding the contents of this newsletter to: Leading the Way to John Reynolds, Chairman Port Progress Uwe Schulz, Vice Chairman MARITIME EXCHANGE Dennis Rochford, President for the Delaware River and Bay Lisa B. Himber, Vice President 240 Cherry Street, Philadelphia, PA 19106 A. Robert Degen, Esq., Secretary/Solicitor tel: 215-925-2615 w fax: 215-925-3422 James F. Young, Esq., Assistant Secretary [email protected] w www.maritimedelriv.com Dorothy Mather Ix, Treasurer The Beacon 15 Fall 2012

New Energy Contract Generates Savings for Port and Tenants The South Jersey Port Corporation energy distributor which means that (SJPC) recently completed a reverse the savings it realizes through actions auction that will save $231,700 in en- such as this reverse auction also bene- ergy costs through 2014 for the Joseph fits its tenants who purchase their elec- A. Balzano Marine Terminal and the tricity directly from SJPC. Broadway Terminal in Camden, New Eighteen companies participated in Jersey. The agency has utilized the re- the electrical energy reverse auction verse auction for electrical energy sev- bidding process hosted by World En- eral times in the past reaping similar ergy that included an option for 10 per- results. cent of green renewable energy. “We will be getting our energy Direct Energy Business with a cheaper and from more green and re- $0.0713 per kilowatt hour rate and newable sources and that means re- 10% of the energy supply coming from duced energy costs for the terminal’s green renewable sources won the auc- operations as well as those of our ten- tion. The new rate will take effect on ants,” said Executive Director Kevin the first metering reading in January Castagnola. The SJPC is an electrical 2013. The Beacon 16 Fall 2012

Notes & News The Exchange sends out best wishes for a speedy recovery to one if its own. Upcoming Events Operations Specialist Pat Newcomb, who has been a member of our staff for 21 years, recently underwent major surgery and will be out on recovery for sev- eral weeks. Get well soon, Pat! 09/10/12 Traffic Club of Philadelphia Fall Golf Outing The Springhaven Club, Wallingford, PA The Delaware River and Bay Authority (DRBA) Commission welcomes new Contact Rian Nemeroff: [email protected] or 215-914-0392 board member Richard S. Mroz, Esq. as Vice Chairman. Commissioner Mroz, 09/11/12 Seamen’s Center of Wilmington Fall Fundraiser who was confirmed by the New Jersey State Senate on June 28 to replace Mr. Firestone Restaurant, Wilmington, DE Niels Favre, will serve a term that extends to July 1, 2015. “I am honored that Contact Joan Lyons: 302-575-1300 or [email protected] Governor Christie chose to appoint me to serve the residents of the State of New Jersey as an Authority Commissioner,” Mroz stated. “As former Chief Coun- Tri-State Maritime Safety Association Board Meeting sel to the New Jersey Governor, I am very familiar with the Delaware River and 09/12/12 Maritime Exchange Board Meeting Bay Authority – its organization and operation. With its family of transportation facilities, the Authority plays a key role in the economic future of South Jersey 09/14/12 Ports of Philadelphia Maritime Society Annual Golf Outing and I look forward to working with my fellow Commissioners and management Springfield Country Club to continue to maximize the Authority’s full potential.” The Commission is com- Contact Mike Scott: 215-426-2600 prised of twelve commissioners, six each from Delaware and New Jersey, who Ports of Philadelphia Maritime Society Annual Crab Feast are appointed by their respective state Governors. Deck at Harbor Point, Essington, PA Contact Theresa Penot: 484-496-7305 or visit www.portsofphilamaritimesociety.com Welcome Aboard 09/18/12 Seamen’s Center of Wilmington Board Meeting Marine Depot and Service, LLC Warehousing by JPS, LLC 09/19/12 DRPA/PATCO Board Meetings, Followed by Committee Meetings 62 Washington Avenue, Suite 7 2996 Samuel Drive Dumont, NJ 07628 Bensalem, PA 19020 Philadelphia Regional Port Authority Board Meeting Phone: 201-676-4670 Phone: 215-639-8800 09/20/12 Port of Wilmington Annual Golf Classic Fax: 201-648-2016 Fax: 215-639-8868 DuPont Country Club, Wilmington, DE portservice@marinedepotandser- [email protected] Contact Vered Nohi-Becker: 302-472-7819 or [email protected] vice.com www.whsebyjps.com 09/27/12 World Trade Association of Philadelphia Annual Banquet Cescaphe Ballroom, Philadelphia, PA Contact Deborah Ingravallo: [email protected] or 856-642-3957 10/10/12 Maritime Exchange Executive Committee Meeting 10/17/12 DRPA/PATCO Board Meetings, Followed by Committee Meetings Philadelphia Regional Port Authority Board Meeting 10/25/12 Ports of Philadelphia Maritime Society Past Presidents’ Dinner 10/26/12 Area Maritime Security Committee Managing Board Meeting USCG Sector Delaware Bay

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