Inland Port Magazine November / December Issue

New Capital Program for the Alabama State Port Authority

Inland PortNovember/December 2010

AAPA’s Kurt Nagle Weighs in on Port Investment

Industry Wish Lists and New Year’s Resolutions

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INLAND PORT MAGAZINENovember/December 2010

Volume II, Number VIISSN 2156-7611

Published bimonthly by

Hudson Jones Publications, LLCHouston, Texas • Tulsa, Oklahoma

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eDItorDaron Jones

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Entire contents ©2010, all rights reserved. Reproduction in whole or in part, without writ-ten permission of Hudson Jones Publications, LLC, is prohibited. The publisher accepts no responsibility for content of any advertisements solicited and/or printed herein, including any liability arising out of any claims for infringe-ment of any intellectual property rights, patents, trademarks, trade dress and/or copyrights; nor any liability for the text, misrepresentations, false or misleading statements, illustrations, such being the sole responsibility of the adver-tisers. All advertisers agree to defend, indemnify and hold the publisher harmless from all claims or suits regarding any advertisements. Due to printing and ink variances, the publisher does not guarantee exact color matching. Opinions expressed by writers are not necessarily those of the publisher or staff. Readers’ views are solicited ([email protected]). Publisher reserves the right to publish, in whole or in part, any letters or correspondence received. Publisher assumes no responsibility for unsolicited material.

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michael mcQuillanInland rivers, Ports & terminalsVice President, Hanson Professional Serviceswww.irpt.net

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rd Jennifer carpenterAmerican Waterways operatorsSr. Vice President-National Advocacy, AWOwww.americanwaterways.com

michael gerhardtDredging contractors of AmericaAssistant Executive Director, DCAwww.dredgingcontractors.org

Keith garrisonNational Waterways conferenceExecutive Director, Arkansas Waterways Commissionwww.waterways.orgwww.waterways.dina.org

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maurice owenInland rivers, Ports & terminalsVice-President, Sales and Marketing Yellow Banks River Terminal, LLCwww.irpt.net

ON The COveRIn our exclusive interview,

Judith Adams describes how new investments at the

Alabama State Port Authority will spur growth in the region.

Port-Related Infrastructure Investments Aid US EconomyBy Kurt J. Nagle, President & CEO, American Association of Port Authorities

4

Inland PortNovember/December 2010 • Volume II, Issue VI

THE LAST WORDInterview with Cornel MartinPresident and CEO, Waterways Council, Inc.

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IRPT Weighs in on Federal Funding Program for Ports9

RIsk aND REWaRDCargo Screening: Is the Container Next on the List?By C. Daniel Negron, of Thomas Miller (Americas)

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Alabama State Port Authority Approves Capital ProgramInterview with Judith Adams10Dear Santa: AWO’s Holiday Wish ListBy Jennifer A. Carpenter11WCI’s New Year’s Resolution: Invest in Our WaterwaysBy Debra Colbert16

An Open Letter from NWCNWC President Amy Larson addresses the National Commissionon Fiscal Responsibility and Reform

21Milestone for Port of Duluth-Superior24Woodruff Testifies on Critical Role of Waterways in America25Tackling the Lower Mississippi’s Budgetary Shortfall27St. Lawrence Seaway Cargo Up28Industry Notebook30

November/December 20104 www.inlandportmagazine.com

Investments in America’s port infrastructure and intermodal connections—both land and waterside—help the nation prosper and provide an

opportunity to bolster the country’s slow economic and employment recovery.

Compared with 2009, US waterborne exports in the first eight months of 2010 grew 24.6 percent in value and 17.4 percent in volume. Investments in port and connecting infrastructure help exporters of American products, such as farmers, while US manufacturers benefit from import and export transportation savings because they often rely on imported parts, components and bulk commodities.

Today, 99.6 percent of Us overseas trade moves

For centuries, United States seaports and the waterways that connect them have served as a vital economic lifeline by bringing goods and services to people around the world. These waterways have literally delivered prosperity to our nation. As the primary gateway for overseas trade, seaports are a critical link for access to the global marketplace and enable America’s exports to compete on an international basis.

By Kurt NaglePresident & CEOAmerican Association of Port Authorities

Port-Related InfrastructureInvestments Aid US Economy

5November/December 2010 www.inlandportmagazine.com

through seaports and international trade accounts for more than a quarter of america’s Gross Domestic Product (GDP). Approximately 15,000 jobs are created for every $1 billion in goods exported and seaport activities support more than 13 million jobs. What’s more, about $3.8 bil-lion worth of goods move in and out of US seaports each day.

Given their importance for moving people and freight, creating jobs and raising our standard of living, it’s often surprising that seaports and their connect-ing intermodal infrastructure are given

relatively scant attention when it comes to federal funding and transportation policy legislation.

AAPA RECOMMENDATIONSTo help counter this imbalance in

federal transportation priorities, AAPA recommends a number of steps that we believe would create and sustain jobs, assist in our economic recovery, answer President Obama’s call for doubling exports, and improve Americans’ quality of life, while ensuring that US port system remains competitive.

1. encourage use of short sea shipping on America’s marine high-ways.

To provide incentives for removing cargo from America’s most congested roadways and putting it on the water, AAPA advocates exempting the domestic US port-to-port portion of the federal Harbor Maintenance Tax (HMT). Doing so will make shipping domestic freight by wa-ter more affordable, promoting the more environmentally-friendly option of using short sea shipping while reducing conges-tion and increasing the capacity of some of

Offloading cargo at the Port of Benton. AAPA encourages the

use of short sea shipping on America’s marine highways.


the nation’s busiest roads.Although well developed in Europe,

this type of shipping is only in the evolu-tionary stages in the US

In recent years, transportation plan-ners have been struggling to identify ways to move people and goods more efficiently. Because expansion of highway and rail infrastructure is expensive, difficult and time consuming, there’s a real concern that our nation’s transportation system is constraining economic growth.

The federal HMT has long been an impediment to greater utilization of our nation’s inland and intracoastal waterways for domestic cargo movements. That’s because the 0.125% ad valorem tax, which is assessed on cargo value, must be paid by importers and domestic waterborne cargo shippers. However, no such freight tax is levied on those who use landside transpor-tation systems.

To further support development of America’s marine highways, AAPA also advocates:

• Federal funding support for short sea shipping services.

• Establishment of a new program, similar to the ferry boat discretionary program, and encouraging more utiliza-tion of current federal programs such as

the Congestion Mitigation and Air Quality Improvement Program.

• Incentives for shippers that utilize America’s marine highways, such as a green tax credit.

• Development of expertise at the state/Metropolitan Planning Organization level on marine highway alternatives and benefits.

• Reassessment of federal shipbuilding programs and exploring how they could support marine highway development.

2. Make full use of the federal hMT.

The US Army Corps of Engineers is responsible for improving and maintain-ing the nation’s water access to ports. The money to maintain these channels is col-lected from cargo owners via the federal Harbor Maintenance Tax. Nevertheless, the federal government spends only about half of the tax collected for its intended purpose—deep-draft navigation mainte-nance. since its inception in 1986, a $5.6 billion surplus has accumulated in the Harbor Maintenance Trust Fund while se-rious dredging needs have been neglected.

Insufficient appropriations make it im-possible to maintain most federal naviga-tion channels at their authorized dimen-

sions. Projects to maintain these critical waterways would create jobs immediately and would provide transportation savings to benefit Us businesses. With decreases in the cost of freight transportation, these sectors can enhance their global competi-tiveness and can create more jobs. aaPa has recommended that Congress take ac-tion to ensure 100% of the annual amount collected from the HMT is utilized to maintain federal navigation channels.

Today, America’s federal navigation channels have their authorized depths and widths available less than 35 percent of the time, which means channels narrowed by eroding sediment may be restricted to one lane of travel, while unremoved sediments on channel bottoms may mean the ships that are moving cannot carry full loads of cargo due to insufficient channel depth.

AAPA believes that these investments aren’t only critical from efficiency, safety and environmental standpoints. They will create US jobs for the maritime industry and help construction and engineering businesses, small and large, immediately.

3. Dedicate at least 25 percent of discretionary transportation capital project funds to port-related infra-structure.

The Port of Memphis. AAPA believes that inland port invest-ments aren’t only critical from efficiency, safety, and environ-mental standpoints. They will create US jobs for the maritime industry and help construction and engineering businesses, small and large, immediately.


In the first two rounds of the ameri-can Reinvestment and Recovery Act’s multimodal discretionary grant program known as TIGER (Transportation Invest-ments Generating Economic Recovery), seaports were under-represented com-pared to other transportation modes. Ports and their connecting infrastructure garnered only 8 percent of the available funds in the first round, but the percent-age of funding for port-infrastructure—including money for America’s marine

highways—more than doubled in the second round, which moved us closer to the 25 percent of overall TIGER grant funding we believe is appropriate.

Since port infrastructure investments are one of the four eligible areas (along with highways/bridges, transit, and freight/passenger rail) for this discretion-ary capital funding program, and other modes have received significant federal funds through other programs, AAPA recommends that at least 25 percent of the

funding be awarded to port-related infra-structure projects.

To that end, we are urging Congress to provide additional TIGER funding in fiscal 2011 appropriations and we believe this type of program should be a permanent part of the overdue surface transportation reauthorization.

4. Pass a new surface transporta-tion reauthorization bill that priori-tizes freight.

The Port of Detroit. AAPA urges lawmakers to pass a new surface transporta-tion reauthorization bill that prioritizes freight.

http://marinesonic.us/

THE AUTHORKurt J. Nagle is the President and Chief Execu-tive Officer of the American Association of Port Authorities. He has over 30 years of experience in Washington, DC, related to seaports and international trade. Since 1995, Mr. Nagle has served as Presi-dent and Chief Executive Officer for the American Association of Port Authorities (AAPA). Mr. Nagle began working at AAPA, the alliance of the leading public port authorities throughout the Western Hemisphere, in 1985.

Prior to joining AAPA, Mr. Nagle was Di-rector of International Trade for the National Coal Association and Assistant Secretary for the Coal Exporters Association.

Previously, he worked in the Office of Inter-national Economic Research at the US Depart-ment of Commerce.

Mr. Nagle serves on the Executive Commit-tee of the Propeller Club of the United States and is a former commissioner of PIANC, the International Navigation Congress.

Mr. Nagle holds a Master’s Degree in Eco-nomics from George Mason University.

AAPA urges the House, Senate and Administration to work together on legislation in 2011 to craft a final surface transportation reauthorization bill that gives a higher priority to the efficient movement of freight and includes the marine highway provisions noted earlier.

Current transportation programs do not address freight needs adequately. Changes are needed to decrease road congestion due to freight movement, which will result in decreases in fuel use, pollution and transportation costs. Surface transportation improvements in and around seaports will positively im-pact immediate and long-term prosper-ity, the environment and livability.

Chief among the changes we recom-mend in the next bill is establishment of a national freight program, which is critical to developing a well-planned, world-class surface transportation system. Other countries throughout the world have robust government policies to address freight mobility. The Us pro-gram must address large national freight movement improvement needs, as well as require that state highway programs address more local and regional inter-modal freight mobility improvements, including those at and near seaports.

Because port freight movement needs are multimodal, changes need to

be made in both transportation policy and funding to address the intermodal nature of freight movement. solutions should include funding and tax incen-tives to improve road, rail and marine highway movement of freight. In order to coordinate oversight of the freight transportation system, we endorse establishing an Office of Intermodalism that reports directly to the transporta-tion secretary.

IT’S TIME TO ACTWithin the Administration and

Congress, Republicans and Democrats need to work together to find more efficient ways to fund bridges, roads, rails and runways. We believe this must be a bipartisan priority, and ports and seaport-related infrastructure, including marine highways, should be included in that modal list.

Now is the time to move forward to develop and implement policy and pro-grams that will effectively and efficiently sustain and improve America’s critical gateways for global trade. By raising the priority of seaports and their connecting infrastructure in the program and policy areas I’ve noted above, america can achieve modern, navigable seaports that are safe and environmentally sustain-able, while creating jobs for both today and the future. IP


The Port of Memphis. It’s time for the administra-tion to act. Republicans and Democrats need to work together to find more efficient ways to fund bridges, roads, rails and runways. This must be a bipartisan priority, and ports and seaport-related infra-structure, including marine highways, should be included in that modal list.


The Inland Rivers, Ports & Terminals (IRPT) Board of Directors recently an-

nounced its position on federal funding for inland ports and terminals.

The Board, led by Chairman Jerry Sail-ors (Coosa-alabama River Improvement Association) and President Maurice Owen (Yellow Banks River Terminal), promotes federal funding for ports and terminals through a reauthorization of the federal transportation bill. The following is a sum-mary of IRPT’s official position.

Funding of Ports in the Transportation Bill Re-Authorization

1. The Us DOT provides federal funds through specific programs to support con-struction of roads, bridges, and airports.

2. The Us army Corps of Engineers uses federal funds through a specifically authorized program to construct, main-tain and operate locks, dams and channels on our inland rivers, and to deepen and maintain deep draft harbors along the US coastline and Great Lakes.

3. The inland river system is a valuable national asset, providing marine highways for low-cost, environmentally efficient transportation.

4. Ports are the on-off ramps for freight moving on the inland waterway system.

5. Unlike the other components of the U.s. marine transportation system, there is no specific federal funding assistance program for shallow draft ports.

6. Ports are multi-modal centers of commerce and distribution which are vital to the economic health of our nation. Ports are surge bins in the flow of commerce between modes, and often include indus-trial parks and distribution centers which provide multi-modal transportation access to private sector tenants which in turn provide family wage jobs and pay taxes in port communities.

7. IRPT supports stronger programs for efficient freight transportation, job creation and economic development.

Specific RecommendationsIRPT recommends that a specific fund-

ing assistance program for shallow draft ports be authorized in the next Transpor-tation Bill re-authorization.

The US DOT may administer indi-vidual grants directly or may delegate such administration to State Departments of Transportation, or other designated State entities such as appropriately chartered State Port Authorities, State Port Commis-sions or state Waterway(s) Commissions. Eligible grant recipients shall include public port authorities chartered under applicable state statutes, as well as other state and local government entities, and appropriate public/private partnerships.

Eligible projects shall include capital costs for infrastructure such as docks, wharves, mooring structures, dredging, bank stabilization, buildings used for port

activities, storage facilities for goods and commodities, equipment and technology required for port operations, construction of utilities to sustain port operations, on-site and nearby offsite roads and railroads to facilitate the flow of commerce through the port, improvement of port industrial sites, master plans, strategic plans, market assessments, engineering, surveying, permitting, construction phase services and other professional services related to the above. New construction projects as well as major replacement or repair proj-ects and related professional services are eligible. Routine operations, maintenance and repair activities are not eligible.

Project funding for shallow draft ports shall be provided from highway fuel tax revenues, customs revenues or other general fund sources. Inland waterway transportation and coastwise short-sea shipping reduce highway congestion and reduce costs for highway and bridge repair and maintenance. Data published by the US DOT shows inland waterway transpor-tation uses less fuel and generates less air pollution than rail or truck modes. Ports provide significant public benefits which do not accrue to those ports as revenue.

A federal-state-local funding match-ing formula assistance program should be considered. IP

For more information on Inland Riv-ers, Ports & Terminals, visit them online at www.irpt.net.

IRPT Weighs in on Federal Funding Program for Ports


Judith Adams Describes How the New InvestmentsWill Spur Job Growth and Transportation Efficiency

The Alabama State Port Authority Board of Directors recently approved a port-

wide infrastructure investment program geared toward stimulating the economy and implementing efficient transportation solutions for one of the nation’s busiest seaports. The $360 million (Us) Capital Program identifies key public investment needs at the Port of Mobile to attract new industry, create new jobs and increase Alabama and regional ship-per competitiveness through efficient transportation and terminal solutions.

“Back in 2000, the state docks identified a series of new infrastructure and sea-port modernization programs that successfully leveraged an $100 million infusion of capi-tal into $700 million worth of port improvements and attracted new manufacturers to our region,” said Jimmy Lyons, director and chief ex-ecutive for the Alabama State Port authority. “That funding over the past 10 years not only modernized or created new public port assets, but also was integral to attract-ing global players like APM Terminals, International shipholding Corporation, Hyundai, Thyssenkrupp, ssaB, Berg spiral Pipe, INEOs Phenol, and aker solu-tions. These companies in turn generated tens of thousands of construction jobs and an estimated 7500 permanent jobs in our region. Now, we need to look forward to the next ten years.”

The program is a comprehensive seaport investment package to construct new interchange and intermodal rail yards, a new warehouse and cargo yard improvements to serve a burgeoning steel business, cargo terminal improvements that will accommodate growing regional exports and deepwater oil- and gas-field production service industries, and to secure deepwater land to accommodate future public seaport expansions.

“The program’s estimated $360 million would be expended in phases over the next five years as needed to accommodate our growing business,” noted Lyons.

The Capital Program was recom-mended by staff and was based on the Port Authority’s market assessments for growth with some projects generating 2,000 per-manent new jobs within the port alone.

The Port of Mobile is currently ranked

9th largest Us seaport in total volume. The Alabama State Port Authority owns and operates the State of Alabama’s deepwater port facilities at the Port of Mobile. The Port Authority’s statewide economic im-pact totals $7.9 billion and has a direct and indirect jobs impact of nearly 67,000 jobs. The Port Authority’s container, general cargo, Ro/Ro, and bulk facilities have im-mediate access to two interstate systems, five Class 1 railroads, and nearly 15,000 miles of inland waterway connections.

Inland Port Magazine turned to Judith adams, Vice President of Marketing for the Alabama State Port Authority, to get the inside story on the new Capital Pro-gram and what it will mean to the region.

What specifically did the Board identify as “key public investment needs” for the port? There are several projects in the ASPA

Capital Program that modernize and ex-pand the market capability of the publicly owned deepwater seaport assets. some of the critical components include the Inter-modal Container Transfer Facility Phase I and II; Phase II of Mobile Container Terminal; a Distribution & Logistics Park; both Rehabilitation and new warehousing to address our expanding steel business; a railroad interchange improvement project,

to name a few. all of these would extend the market reach and expand business. More than 7,000 permanent jobs were created with the last capital infusion. How many jobs overall are you projecting this time around? The Alabama State Port Authority’s port-wide activi-ties generate 66,617 direct and indirect jobs and $7.9 billion in economic impact on the re-gional economy. The cumula-tive jobs and economic impact stemming from a $356.5 million Capital Program has

been quantified by the well respective transportation and maritime economists at Martin associates. Martin concluded that the Port Authority’s Capital Program would generate $267 million in construc-tion expenditures, 6,353 construction jobs and generate an estimated $18.4 million in tax revenue. Martin further concluded the potential total annual economic impact of the proposed program would generate over 12,500 direct, indirect and induced jobs with over $800 million in personal income and local consumption impacts. The state and local tax benefit from the program was projected to total $70.1 million. some of the key projects have significant economic impact numbers, as well.

How quickly will your region feel the economic effects of this measure? The region could feel immediate jobs and tax revenue impacts associated with

Alabama State Port AuthorityApproves Capital Program

ThyssenKrupp, along with other major players, generates tens of thousands of construction jobs and an estimated 7,500 permanent jobs in the region.


construction once one or more of the project components are launched. More permanent impacts are associated with the business stream itself. The asPa Capital Program is a blueprint of potential capital projects over the next five years funding permitting. Can you outline what exactly will be tack-led in each of the phases going forward over your five-year plan? Not really. Funding is key to all of these projects. The ICTF is certainly a prior-ity so as to capitalize further on not only the marine terminal but the new turning basin constructed to handle post-Panamax vessels. You are currently ranked 9th in the US in total volume. Do you see a move up in

the rankings as one of the results of this investment plan? Not at this time. In fact, we may in fact drop in ranking due to the global recession impacts. Many ports saw cargo declines which will certainly impact the next round of rankings. What is certain is that the Port of Mobile is one of the nation’s largest seaports, with a significant export lift to attract carriage, and has one of the best inland transportation networks (5 Class I railroads, two interstate systems, and 15,000+ miles of inland and Intracoastal waterway connections). Rankings are good to impress your audience, but any deep-water seaport, particularly the top 20, is critical to serving the nation’s trade needs. With Mobile’s new modern infrastructure serving both containerized, bulk and break-bulk cargoes, its strong manufac-

turing base, and its flexibility to adapt to changing market conditions, we think we will remain a major Us port. What are your thoughts on the new Ma-rine Highway initiatives that have been rolled out over the past year? Hooray! The US needs to invest more in its capacity laden inland waterways. Freight congestion on highways and railways will only get worse. Moving freight off the roads and onto waterways not only reduces that congestion, but also increases fuel efficiency and air quality by moving more freight tons per mile thereby reducing emissions. IP

For more on the Alabama State Port Authority, contact Judith Adams via email at [email protected] or visit asdd.com.

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The Alabama State Port Authority’s Pinto Steel Terminal recently took its

first shipment of Brazilian-made steel slab bound for the Thyssenkrupp steel Usa multi-billion dollar steel processing facility at Calvert, ala.

Just over 50,000 metric tons, or 2,216 individual slabs, were manufactured by Thyssenkrupp Csa siderúrgica do Atlântico steel production mill located on Sepetiba Bay in the state of Rio de Janeiro, Brazil.

Thyssenkrupp Csa will serve as the primary source of carbon steel slab for the Thyssenkrupp steel Usa state-of-the-art steel mill, and will deliver an estimated three million metric tons annually through the Port authority’s Pinto steel Terminal.

Jimmy Lyons, director and chief executive officer for the Port authority, commented on the significance of the first shipment of Brazilian produced product.

“The successful ramp-up of both the Brazilian and Alabama mills, along with the first delivery of Brazilian carbon slabs, demonstrates how well these new facilities are performing. The second shipment is already en route and Pinto Terminal is pre-pared to handle the volume,” said Lyons.

The inbound slabs were discharged from the M/V Hermann S, a U-sEaBULk operated vessel. Page & Jones, LLC served as the vessel’s agent.

The Alabama State Port Authority, which owns and operates the new $110 million steel handling terminal, offloaded

the steel using three wide-span gantry cranes, each of which have a maximum lift capacity of 74 metric tons. Premier Bulk Stevedoring, LLC provided shipboard cargo handling services.

“This is another important milestone for our project,” stated Scott Posey, direc-tor of communications for Thyssenkrupp steel Usa, LLC. “With the arrival of these slabs from our newly sister company in Brazil, we’re inaugurating the supply chain that will enable us to provide our custom-ers with the highest quality products and fulfill our vision of becoming the premier steel producer in the NaFTa market. Our close and successful partnership with the Alabama State Port Authority has made this possible.” IP

Alabama’s Pinto Steel Terminal Handles First Shipment of Brazilian Steel Slab


WIsH #1: To tell the industry’s story in a compelling way to educate and impress upon key audiences

the value of the industry to the nation. The barge industry provides family-wage jobs for Americans, carries American cargoes for export – something President Obama recent-ly said we desperately need more of – and transports vital commodities safely and in an environmentally-friendly way. But for many Americans, the barge industry is largely invisible. aWO aims to remove the invisibil-ity cloak from the industry by promoting its value to the nation’s economy, environment, national security, and quality of life.

WIsH #2: To ensure that AWO members lead the marine transportation industry in safety and environmental stewardship over the next decade. aWO has a longstanding history of safety leadership, as demonstrated by the award-winning AWO Responsible Carrier Program and the first-of-its-kind Coast Guard-aWO safety Partnership. Draw-ing on input from government partners, in-dustry customers, and other respected safety experts, a senior-level Task Force on the Future of AWO Safety Leadership is work-ing now to develop a fresh vision of what it means for AWO to be a safety leader in 2011 and beyond.

WIsH #3: For the US Department of Homeland Security to publish the towing vessel inspection notice of proposed rule-making. This historic regulation will help take the industry to the next level of safety and environmental protection. It has been stuck at DHs for over 18 months despite calls for its publication by key members of Congress and industry. On October 15, President Obama signed into law the Coast


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AWO’s Holiday Wish ListDear Santa...

In the spirit of the season, Jennifer A. Carpenter, Sr. Vice President of National Advocacy for the

American Waterways Operators (AWO), offers this holiday Wish List of results AWO would like to

achieve for America’s tugboat, towboat, and barge industries in 2011. Of course, they’re not leaving

it all up to Santa – they will be bringing all of AWO’s staff, member, and partner resources to bear

in working to accomplish these priority goals for the New Year.

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Guard authorization act of 2010 (P.L. 111-281), which requires DHs to issue a notice of proposed rulemaking on towing vessel inspection no more than 90 days from the date of enactment, a step AWO strongly supports.

WIsH #4: For Congress and the Ad-ministration to adopt the Inland Water-ways Capital Development Plan, which was developed by a public-private partnership to ensure adequate funding and efficient delivery of much-needed improvements to the nation’s inland waterways infrastruc-ture of locks and dams. This infrastruc-ture allows for the efficient transportation

of 800 million tons of cargo per year, including:

• More than 60% of Us export grain, helping American farmers compete with foreign producers;

• Coal to power plants for electricity production;

• Petroleum products and chemicals for essential industries;

• Home heating oil to warm american homes;

• Gasoline to keep our cars running;• salt for our winter roads;• Wheat to feed americans and the

world.

WIsH #5: To secure a uniform and practical national approach to the regu-lation of ballast water and other ves-sel discharges. Currently there exists a confusing patchwork of state standards that undermine interstate commerce and environmental protection. Historically, the Environmental Protection Agency (EPA) exempted discharges incidental to normal vessel operations, including ballast water, from the National Pollutant Discharge Elimination System (NPDES) permit program. a 2005 court decision eliminated that exception, and today, vessel discharges are regulated under the NPDES program, which was designed for fixed facilities and is an extremely poor fit for mobile assets like vessels. While aWO is working through the regulatory process and the courts to make compliance with the Vessel General Permit more practical for vessel owners, only Congress can solve the root problem by establishing a uniform national framework for the regulation of vessel discharges.

WIsH #6: To achieve a practical, science-based approach to crew endur-ance, work and rest issues. aWO has been focused on the issue of crew alertness


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since 1997, working in cooperation with the Coast Guard. The Coast Guard-aWO cooperation has focused on the Crew En-durance Management System (CEMS), a holistic approach to addressing job-related environmental, operational, physiological and psychological factors that may impact crew endurance. Recent Nasa-funded research has shown that obtaining sleep in two periods – a longer “anchor” sleep and a substantial “nap sleep” period – is just as effective as an equivalent period of uninterrupted sleep. aWO has engaged Northwestern University’s Center for Sleep and Circadian Biology in a multi-year study aimed at developing strategies to build on CEMS and ensure that towing vessel crewmembers get 7-8 hours of healthy sleep each day.

WIsH #7: To build support for the Jones Act with Congressional and Admin-istration policymakers and prevent erosion of the cabotage laws. The Jones act re-quires that US domestic waterborne com-merce be carried on Us-flagged vessels that are owned by US citizens, built in US shipyards and crewed by Us citizens. simi-lar statutes govern the domestic passenger, dredging, fishing and salvage industries. The Jones Act ensures jobs for American workers, and contributes to the economy while protecting the environment. In the wake of the Deepwater Horizon incident, unfounded criticism of the Jones Act as an impediment to oil spill cleanup led to

the introduction of legislation to waive or repeal the Jones act. No less an authority than retired Coast Guard Admiral Thad allen, the National Incident Commander for the Deepwater Horizon response, pub-licly affirmed in June that “we at no time in the course of this response have been inhibited by anything [having] to do with what we call [the] Jones Act or Jones Act waivers.” aWO and the Maritime Cabo-tage Task Force (MCTF) will be working hard in 2011 to educate new and returning Members of Congress on the value of the Jones Act to US jobs and the security of our homeland.

WIsH #8: To prevent harmful changes to the maritime liability and oil spill prevention and response regimes. In the wake of the Deepwater Horizon incident, Congress introduced more than 62 pieces of legislation and held three dozen hear-ings on issues related to the spill. some of these laws would have impacts far beyond offshore drilling, threatening jobs and un-dermining American businesses in all seg-ments of the domestic maritime industry, despite the existence of a comprehensive body of law and regulation that has helped to make the tugboat, towboat and barge in-dustry the safest, most efficient and most environmentally friendly mode of freight transportation.

Tank barge spills have plummeted by 99.6 percent in the last 20 years, reaching their lowest recorded level – 4,347 gallons

– in 2009. at the height of the Deepwater Horizon spill, that same quantity of oil was esti-mated to be escaping from the ocean floor every two minutes. Congress’s legislative response to the Deepwater Horizon should focus on reducing the risks of deepwater offshore drilling and not on maritime transportation.

WIsH #9: To eliminate the requirement for a second trip to the TWIC enrollment center and ensure that TWIC card readers are not required on towing vessels. aWO has worked hand in hand with maritime labor unions to make the Transportation Worker Identification Credential (TWIC) program more prac-ticable for mariners. The 2010

Coast Guard Authorization Act requires a study of the feasibility of a secure TWIC-by-mail process and, if such a process is determined to be feasible, the develop-ment of a process that would eliminate the requirement for a second trip to an enrollment center to pick up a TWIC. aWO is also working through the Coast Guard regulatory process to ensure that forth-coming requirements for TWIC card read-ers do not require readers to be carried on small vessels where their use would have minimal security value.

WIsH #10: To ensure that navigation and vessel operations are regulated by the federal government and to prevent state attempts to usurp the authority of the US Coast Guard or other federal agencies. The US Constitution and longstanding federal law give the federal government the authority to regulate vessel design and operations and related issues like crew qualifications. The uniformity provided by federal regulation is essential for the safe and efficient flow of critical maritime commerce. aWO will strongly resist state efforts to regulate vessel operations and create a confusing and counterproductive patchwork of state-specific requirements.

Jennifer Carpenter and American Waterways Operators hereby wishes all Inland Port Magazine readers happy holi-days and best wishes for the New Year! IP


Losing that weight gained from the holidays, hitting the gym more regularly, getting finances in order. all good New Year’s resolutions we are familiar with around this time of year.

But what if we decided to commit to one that actually paid us back? Our nation should consider investment in our waterways infrastructure

for one of the best returns on investment going today. It may be preaching to the choir, but the facts

about the value of our nation’s rivers system must be repeated in hopes that those in government will hear them, understand and appreciate the critical importance of our waterways and the lock and dam infrastructure that requires recapitalization and reinvestment.

Our nation’s shippers – our farmers and others – rely on a modern, well-maintained system of locks and dams to facilitate the transport of America’s vital products such as grain, coal, petroleum products, iron and steel, feedstocks, and aggregate materials.

Our nation’s inland waterways are envied by the world because this natural “water highway” running throughout our country provides key ac-cess for commerce. Modern lock and dam infrastructure means the United States can remain competitive in the world marketplace, better safeguard its environment, be more energy efficient, enjoy traffic congestion relief, and create and sustain well-paying jobs for americans.

At a recent US Army Corps of Engineers’ Ohio River Navigation System Annual Regional Stakeholders Meeting in Pittsburgh, several panels focused on the waterways system’s reliability and efficiency. Those from the Corps, stakeholders, economists, researchers and others assessed the navigation system, addressing known Operations & Maintenance problems that will result in a “Fix as Fails” to “Fail to Fix” approach unless efficient funding levels can be increased and maintained.

There was also a focus on dams, with those from the Corps’ Lakes & Rivers Division noting that 50% of the highest-risk dam projects in the nation reside in this division. Unscheduled lock outages have increased by 200% over the last 10 years, according to officials at the meeting. The aver-age life cycle of a lock dam is 50 years, but there are many on the system between 90 and 100 years old. sobering information indeed.

at the meeting, Michael B. White, who retired at the end of 2010 after 38 years in various positions within the Corps most recently as Director of Programs for the Great Lakes and Ohio River Division, said of the water-ways, “I can’t think of any proposition that has made america greater.”

He is right.Our growers, shippers, and those who enjoy the recreational benefits of

the waterways appreciate this sentiment. Now it’s time for our government to realize the waterways system’s value to our country’s jobs, exports, traf-fic congestion relief, and environmental stewardship.

Investing in our nation’s waterways transportation infrastructure now will keep america moving into the future. and that’s the way to go! IP

By Debra ColbertDirector of Communications & Media RelationsWaterways Council, Inc.waterwayscouncil.org

Invest in Our WaterwaysNew Year’s Resolution


Norwegian Cruise Line’s 2,018-passenger Norwegian Spirit arrived at her new homeport of New Orleans in November. It is the first time

Norwegian will homeport a ship year-round in New Orleans, with weekly seven-day Western Caribbean cruises. Norwegian has homeported cruise ships in New Orleans seasonally since 2003 and was the first line to return to New Orleans following Hurricane Katrina. IP

Norwegian Spirit Makes Home at Port of New Orleans

http://www.5star-marine.com/


RISK AND REWARD

By C. Daniel NegronVice President,Thomas Miller (Americas) Inc.

The recent attempt by Al Qaeda to detonate two par-cels onboard air cargo flights over America has once again thrown the question of the screening of cargo

into sharp focus. On November 24, 2010, Representative Edward

Markey introduced a bill which effectively says all cargo-only aircraft must be screened for deadly devices. Representative Markey originally introduced the 2007 law requiring 100% screening of all air cargo transported on domestic passenger planes and all international passenger planes entering the United states.

But so far, there has been no general requirement for the screening of ocean freight carried in containers. The Container security Initiative (CsI), launched in 2002 by the U.s. Bureau of Customs and Border Protection (CBP) was designed to increase security for container cargo shipped to the United states. as the CBP put it, the intent was to “extend [the] zone of security outward so that American borders are the last line of defense, not the first”. However, this initiative is by no means a blanket requirement for the automatic screening of all cargo con-tainers.

INTERNATIONAL OUTCRYThere is, however, the prospect of container screening

becoming mandatory in the Usa by 2012. This is one of the provisions of the US Homeland Security Bill passed in 2007, requiring all US-bound containers to be screened for nuclear devices at the port of shipment.

This caused an outcry from the international shipping community. The then General secretary of the European Shippers’ Council, Nicolette van der Jagt, said that “busi-ness will be paying the lion’s share of providing the equip-ment, but I suspect the biggest cost to shippers will be the cost of delays. One can only imagine the huge queues that will form when every container has to run through radia-tion and image scanners”.

According to the World Shipping Council, this move would affect about $500 billion in annual American com-merce; and a study by RaND Corp. in June 2006 found that 100% container scanning could slow each twenty-foot equivalent unit (TEU) by as much as 5.5 hours, depending on the scanning method used.

In its publication, ‘supply Chain security’, the TT Club warns that ports which do not comply with this legislation may find themselves barred from shipping to the USA alto-gether, although the legislation does allow for a two-year period of grace before it is fully implemented. The TT Club adds that there is still considerable opposition in the world shipping community to the American legislation, and the EU is planning reciprocal action, requiring all Europe-

Cargo Screening: Is the Container Next on the List?

The recent attempt by Al Qaeda to detonate two parcels onboard air cargo flights over America has once again thrown the question of the screening of cargo into sharp focus.

bound containers from the USA to be screened at the port of origin.

A VALUABLE ExERCISENevertheless, there is a view that

container screening is a valuable exercise in itself, not only to detect possible weap-ons of mass destruction, but also to root out, through legislation, non-compliance among shippers of hazardous cargo. The TT Club cites a recent report by the National Cargo Bureau on the findings of a survey in which 25,000 containers were opened to check their contents against their cargo declarations. The survey showed that approximately 32% of those containers were found to be flouting the rules on hazardous cargoes to such an extent that the authorities halted their movement. In the view of the NCB, too many operators fail to pay enough atten-tion to security issues.

Worldwide, there are a considerable number of initiatives and legislation, voluntary and mandatory, which seek to improve supply chain security. There is no doubt that the events of September 11th 2001, and the vulnerability of the mari-time supply chain to terrorist attacks, will eventually mean that governments will lean heavily on the ports and shipping industries to improve their act in terms of security.

TT Club takes a realistic approach and encourages port and terminal operators to make a virtue of necessity:

“Many ports have been forced to put in security measures for fear of check-ups by regulatory bodies, not because they actu-ally wanted security to work”, explains TT Club’s Risk Management Director, Peregrine storrs-Fox . “But if you look at security from a management, rather than an operational perspective, and integrate it with your management systems, then you can start to see how it can work for your and bring benefits. It’s a question of making security part of the way you man-age your business, rather than ticking the boxes demanded by a regulator.”

COST IMPLICATIONSIn the final analysis, port operators

and shippers are naturally concerned at the cost implications for container screen-ing for whatever purpose, and the effect that additional costs and delays may have on their business. some have yet to be convinced that the time and energy spent on security initiatives can make good business sense.

But breaches of a routine security standard can, in fact, have significant cost

implications. Delays and losses caused by security lapses can result in loss of business, damage to goodwill and the imposition of significant direct costs. But regardless of whether security measures are aimed at preventing loss or damage to goods, or the introduction of illegal contraband, or the execution of a criminal act, the fact remains that the industry will have a financial stake in its success in the long run.

The TT Club regards regulations under cargo screening legislation as relating to export and import of cargo and will insure on this basis liabilities arising from breaches of the legislation under its fines and duty cover.

In today’s security-conscious envi-ronment, the transportation industry’s financial interests will best be served by collaborating, both within the business community as well as with its law-enforce-ment counterparts, to ensure that the flow of commerce moves safely as well as expe-ditiously. IP

C. Daniel Negron is an attorney with more than 20 years of experience in the transportation industry. He is Vice President of Thomas Miller & Co., the manag-ers of TT Club Mutual Insurance Limited, a specialist insurer to ports, terminal and logistics operators. Email: [email protected]


http://www.sharkmarine.com/

The Obama Administration’s continuing commitment to a more efficient and green Us transportation system moved

forward recently as Maritime administrator David T. Matsuda joined other federal, state and local officials at the Port of stock-ton to officially break ground on California’s new Green Trade Corridor.

The $30 million Transportation Investment Generating Economic Recovery (TIGER) grant will help develop a viable waterborne shipping route between Oakland, Stockton and West Sacramento, which immediately creates a new transporta-tion alternative to conventional freight and cargo movement in Northern California.

“The Green Trade Corridor project will demonstrate the environmental benefits of freight transportation on america’s Marine Highways, not only for California but for all of America,” said Us Transportation secretary Ray LaHood. “It will also create good, solid transportation jobs for today and far into the future.”

Currently, international trade, imports, and exports, are moved almost exclusively by truck or rail in California. The TIGER grant to the ports of Oakland, West sacramento, and Stockton enables a partnership that will use barges to move cargo along the inland waterway system from Stockton and West Sacramento to Oakland for ultimate shipment to the Far East. Vessel operations are scheduled to begin in early 2012.

“Not only will this project ultimately reduce air emissions from trucks on Interstate 580, it will also create new alterna-tives throughout Northern California to transport exports to the Far East,” said administrator Matsuda.

Federal grants will be used to purchase or upgrade port fa-cilities and the equipment needed to make the marine highway system a reality, including:

• the construction of a staging area at the Port of stockton for cargoes dedicated to the new marine highway, and the pur-chase of two cranes and a barge to support the service;

• the construction of a distribution center and the purchase of a crane in West Sacramento where freight, mostly agricultur-al products from California’s Central Valley, will be “re-packed,” into larger containers for transport on water; and

• the installation of electrical supply at ship berths in the Port of Oakland, which will allow operators to shut down an ocean-going vessel’s diesel engines while in port, further reduc-ing the air emissions in this “green trade corridor.”

The TIGER program, part of the american Recovery and Re-investment Act, is designed to promote innovative, multi-modal and multi-jurisdictional transportation projects that provide significant economic and environmental benefits to an entire metropolitan area, region or the nation.

The America’s Marine Highway program is a new Con-gressionally-authorized initiative to move more cargo and passengers, when possible, on water routes to relieve landside congestion on the roadways and reduce emissions. Nationwide, 18 rivers and coastal routes have been identified to participate in the program. More information about the america’s Marine Highway program can be found at www.marad.dot.gov. IP


Federal Recovery Act Dollars Pay for New Three-Port PartnershipPhiladelphia Mayor, Michael Nutter, along with City and State Officials, visited

the construction site at Race Street Pier on Tuesday, November 9th, for a groundbreaking ceremony. Race Street Pier, formerly known as Pier 11, is pres-ently being reconstructed into a one-acre public park for Philadelphia residents and tourists.

Built circa 1900 at the foot of the Benjamin Franklin Bridge, Pier 11 was once used by national and international steamships carrying fruit, salt, and cargo. Tom Corcoran, President of the Delaware River Waterfront Corporation, says “the new Race Street Pier is an early action project of the Civic Vision which will set new standards of excellence in design and public input and will have far reaching impact beyond this new park.”

W.J. Castle & Associates, P.C. began engineering and design work on the Race Street Pier rehabilitation in 2009. A veteran port, pier, and harbor engineering firm, this project was much different from previous Castle projects. “Typically, our reha-bilitation projects are for the purpose of a structure regaining its original function. The Race Street Pier rehabilitation is unique in that the function of the structure will be changing completely,” said Castle’s Richard Parisi, P.E. In the first stage of the project, Castle performed an inspection of the entire 80’ x 540’ pier, both above and below the water’s surface. Some of the findings included deteriorated steel trusses, timber splitting among the piles, and spalling on the concrete decks which needed patching.

After Castle’s rehabilitation design was submitted, Hydro-Marine Construction cleaned the debris from the pier and demolished the unused fender system. Once these were completed, Hydro then rehabilitated the steel support trusses, timber piles, pile caps, and concrete decks, followed by prep work for the upcoming landscaping.

Civil engineers Langan Engineering & Environmental Services and landscape architects James Corner Field Operations were contracted by DRWC and the City of Philadelphia for park designs and planning. Castle helped with the pier structure modification in order to accommodate the park designs. This included designing the support in the deck for 12 tree boxes, reshaping of the decking and pier nose, and the support for the edges of the pier for the walkway pavers. For more on the project, visit www.wjcastlegroup.com. IP

Castle Engineers Philadelphia Pier Rehab Project

Sennebogen’s green line scrap

handlers will now be offered with its new green line orange peel grapples for use in recycling yards and steel mills.

Sennebogen grapples are avail-able in 4-tine and 5-tine models and in sizes from 0.5 to 5 cubic yards. Manufactured to match Sennebogen’s renowned standard of robust strength and reliability, the new grapples feature a high performance design for extreme duty cycles under the most difficult applications. Cylinders are provided with heavy-duty protection while hoses are fitted with optimized routings and steel guards.

According to John Van Ruitenbeek, Vice President Sales and Marketing at Sennebogen LLC, “These grapples are a logical step for us to simplify the pur-chasing process for customers who already appreciate the value of Sennebogen quality and service.”

Sennebogen grapples are available exclusively through authorized Sen-nebogen distributors throughout United States, Canada and South and Central America. For more, visit www.sennebogen-na.com. IP

New Grapples from Sennebogen

As a guiding principle, we believe that our nation must sustain investment in its natural resources, including its water resources, wherever the net economic, environ-

mental and social benefits warrant. Given this, we also believe a comprehensive and rigorous consideration of economic justifica-

tion would materially alter the recommenda-tions to terminate low-priority Army Corps of Engineers construction projects (draft proposal 13) and to require the inland waterways system to be entirely self-funded (draft proposal 34).

Reliable, well-main-tained water resources infrastructure is funda-mental and critical to America’s economic and environmental well-being, and is essential to maintaining our nation’s competitive position within the global econo-my. Our water resources infrastructure provides life-saving flood control,

abundant water supplies, shore protection, water-based recre-ation, environmental restoration, and hydropower production. Moreover, waterways transportation is the safest, most energy-efficient and environmentally sound mode of transportation.

Regrettably, there is an unfortunate perpetuation of the color-ful but inaccurate account of the Army Corps’ water resources program as the locus of nothing but projects meeting pork-barrel criteria that are funded at the whim of powerful members of Con-gress and special interests. Today, nothing could be further from the truth. Congress and various administrations have progres-sively implemented changes and reforms that make this program one of the most scrutinized of any capital investment programs in the government. The Water Resources Development act (WRDa) of 1986 imposed significant increases in non-Federal cost-sharing and items of local cooperation, and WRDa 1996 increased these non-Federal cost-sharing burdens. Congress authorizes projects that meet a very rigorous test: non-Federal governments must be willing to put up substantial shares of project costs. In addition, recommendations for project authorizations from the Chief of

Engineers are based on extensive economic and environmental analysis, and since WRDa 2007, external peer review.

Even with these significant hurdles, our nation has faced a growing backlog of authorized and unfunded projects. Over the last decade, the Administration has responded with rigorous bud-getary criteria that projects must meet for the President to include them in his budget. all projects are prioritized and subjected to strict economic, environmental and safety criteria. Those projects with a benefit cost ratio of 2.5 or greater are given top priority for budgeting purposes.

The simplistic notion that projects included in the Corps of Engineers construction budget are “low-priority” and are easily expendable defies the reality that these projects are the absolute best water resources projects from a $70 billion backlog.

The prioritization process is grounded upon the economic and environmental benefits to the nation’s economy. By way of


This letter to the National Commission on Fiscal Responsibility and Reform (Co-Chairmen Simpson and Bowles) is in response to the draft Co-Chairs’ Proposal issued on November 10, 2010, setting forth various recommendations designed to balance the budget and improve our nation’s long-term fiscal outlook. NWC appreciates the Commis-sion’s service in laboring over painful choices to ensure our nation’s fiscal well-being, reduce deficits and debt.

An Open Letter from NWC

By Amy Larson, Esq.PresidentNational Waterways Conferencewaterways.org

http://www.dredgingcontractors.org/

example, in the case of deep draft navigation, the modernization and maintenance of our ports are inextricably linked to our economic prosperity.

More than 95% of Us imports and exports moves through our nation’s harbors. Our people cannot afford the higher costs and diminished export competiveness we would experience by reducing investment and maintenance of our ports. Moreover, we will simply not achieve the President’s goal of doubling our exports in the next five years if our ports are not modernized and maintained to accommodate the modernization of the world’s merchant fleet. Nor would we welcome the negative employment impacts engendered by driving down the efficiency of our international transportation.

Given the linkages of our ports and wa-terways, the inland waterways have a criti-cal share in supporting our nation’s interna-tional trade. Today, the costs of transporting freight over inland waterways is two to three times less than other modes of transporta-tion, translating into an annual savings of $7 billion for american businesses.

Making our inland waterways system self-funding would ignore the external contributions of this system to our national well-being. Indeed, the Us Department of Transportation recognizes that our water-ways contribute to substantially reducing congestion on our highways and, because of relative energy efficiency among modes, to reducing emissions of both traditional air pollutants and green house gases. The reduction in congestion makes our high-ways safer and lower emissions mean a healthier people. In addition, transportation of certain goods is simply safer by inland waterways.

Numerous other benefits accrue from a robust and healthy water infrastructure. We cannot afford to ignore these benefits when deciding how much to invest in their modernization and maintenance.

Moreover, the proposal to impose on the towing industry 100% of the cost of con-struction and maintenance of the waterways ignores these other benefits and is manifest-ly unreasonable. The nation’s water storage and supply system is a critical component of our economic strength, public health and environmental sustainability.

The army Corps of Engineers’ flood damage reduction program saves lives and has prevented more than $700 billion in riv-erine and coastal damages – saving almost $6 in damages for each dollar spent.

We cannot stop construction of flood


http://www.irpt.net/


damage reduction projects in Southeast Louisiana, sacramento, Ca; Fargo, ND; Cedar Rapids, Ia and scores of other com-munities without significant risk to the lives, homes and property of real American families.

Managing water and water resources is often one of the larger costs facing local governments as they seek to provide flood protection to their citizens while also meeting water quality regulations, that if not met can result in additional costs. Fed-eral investment in flood damage reduction projects creates an incentive for communi-ties to take on those projects in addition to meeting their water quality requirements, thereby further improving public safety.

Additionally, the Mississippi Rivers and Tributaries Project is one of the most suc-cessful public works projects in our history and the backbone of the economies and way of life of numerous states and millions of americans.

Hydropower facilities built and main-tained by the Corps alone produce nearly a third of the nation’s total hydropower output: enough energy to serve about ten million households. Equally imperative is the continued investment in restoring and defending precious aquatic ecologies like the Florida Everglades, the Gulf Coast, the California Delta and other ecosystems that are significant to our environmental well-being even if these systems are not household names.

We understand that the Commission is scheduled to meet on November 30th and December 1st, with a final vote on the proposal likely scheduled on the 1st. We urge you to consider the long-term benefits that investments in water resources infra-structure provide our people as well as the rigorous criteria imposed on the Corps’ budget.

We believe that with a comprehensive understanding of the extensive economic and environmental cost-benefit analysis and budgetary criteria imposed on Corps projects, you will decline to adopt these recommendations. You may even want to recommend that other government pro-grams be prioritized with the same rigor.

again, we appreciate the very difficult job the Commission faces in putting our nation on the path to better fiscal disci-pline. Thank you for your consideration.

Sincerely,Amy W. Larson. Esq.President, NWC

MetalCraft Marine, a leading manufacturer of custom, high-speed aluminum fire, patrol and work-boats for the North American market, has chosen the state-of-the-art Zeus night-vision camera

manufactured by OceanView Technologies for its new 70-foot FireStorm fire boat. Representing the top of Ocean-

View’s extensive night-vision camera line, the Zeus, features three camer-as in one robust unit: thermal zoom, low-light zoom and color zoom. The Zeus also offers highly innovative fiber-optic image-stabilization and lock-on object tracking. Lock onto any object – aircraft, buoys, naviga-tional hazards, a man overboard or a vessel in distress – and the Zeus will keep the object steady in the center of the picture.

Mike Bader, CEO of OceanView Technologies, based in Boca Raton, Florida. “Given the exacting demands of a vessel like the amazing new FireStorm 70, the engineers at MetalCraft expected only the finest equipment on board. Our Zeus night-vision camera fit that need.”

Based in Kingston, Ontario, with a US office in Clayton, NY, MetalCraft has been building high-speed custom aluminum patrol and work boats since 1987. The new FireStorm 70 runs at a top speed of 42 knots (46 mph) and can pump up to 14,000 gallons of water per minute.

The Zeus builds on the features of OceanView’s other popular night-vision models, including the Apollo II, Triton, Atlas and Poseidon cameras. They all provide crisp images in any light or environmen-tal conditions. IP

OceanView Night-Vision Camera Installed on Fire Boat

http://www.divecommercial.com/

A milestone in project cargo movement was recently achieved at the Head of the Lakes as crews handled the heaviest Ca-

nadian Pacific (CP) direct, single-line rail move from the Port of Duluth-superior to western Canada.

Two, 300-ton dimensional transformers arrived at the Clure Public Marine Terminal in Duluth on Friday, Nov. 5. Both units were manufactured in Germany and shipped from Rotterdam aboard the BigLift freighter Tracer, along with multiple crates of accesso-ries. Crews from Lake superior Warehousing Co. discharged the high/wide/heavy cargo directly onto specialized railcars waiting dockside

One of those specialized cars, a brand new 20-axle rail-car managed by SRT, was just recently introduced into american service. a train comprised of this car and eight others (including a 16-axle railcar) left Duluth Tuesday and is making its way along a 1,200-mile CP clearance

route northwest to Lethbridge, Alberta, where the transformers will be installed and eventually power the Montana Alberta Tie Line – the first international merchant transmission line in North america.

“When fully operational next year, the 214-mile transmis-sion line will interconnect the electricity markets of Alberta and Montana,” said Paul kos, Direc-tor of Engineering for Montana Alberta Tie Ltd, “opening up a huge potential for development in renewable energy projects in both countries.” MaTL is a wholly owned subsidiary of Tonbridge Power, Inc., headquartered in Toronto.

“The Port of Duluth factored strategically in this single-line rail move,” said David Walker,

senior Manager, CP Logistics solutions. since 2005, CP has han-dled the majority of wind energy components inbound to south-ern alberta for wind energy projects in that region. “It’s great to see all of these projects finally getting connected,” added Walker. “This transmission line will transform renewable energy into power for customers on both sides of the border. CP is equally excited to have brought the two heaviest transformers through the Port of Duluth, one of our premier transloading partners.”

CP completed upgrades to bridge infrastructure in Minneap-olis-st. Paul a couple of years ago in order to accommodate the movement of more oversized/dimensional cargo through Duluth. “When it comes to designing an end-to-end transportation solu-tion,” noted Walker, “utilizing Duluth’s multimodal facility makes possible a single-line, cross-border rail haul that creates huge benefits for our customers.”

“This is a CP-served facility, with on-dock rail and intermodal transloading capabilities – the farthest inland port on the Great Lakes st. Lawrence seaway,” said Jonathan Lamb, Vice President and General Manager of Lake superior Warehousing Co., termi-nal operator for the Duluth Seaway Port Authority’s Clure Public Marine Terminal. “Our location enables us to collaborate with key marine and railway companies involved in transportation logistics, not only for a transmission line project like this but also for renewable energy customers across the heartland.”

Lamb touted the Port of Duluth’s proven track record in han-dling dimensional freight for a number of energy-related projects, including nearly a million freight tons of wind turbine compo-nents delivered to projects in several countries including the U.s. and Canada.

“This move has proven to be a great example of the innova-tive collaborations being forged today,” added Walker, “shared efforts to provide solutions for the efficient, specialized transport of high/wide and heavy project cargo from its point of origin to an installation site halfway around the world.” IP


Milestone for Port of Duluth-Superior

http://www.waterways.org/


Matt Woodruff, a member of the Inland Waterways Users Board, the Wa-terways Council Board of Directors, and Director of Government Affairs

for kirby Corporation in Houston, Texas, recently testified before the senate Committee on Environment & Public Works about the essential value of the waterways system to the nation’s economy, jobs and America’s continued com-petitiveness.

He specifically addressed the Inland Waterways Capital Development Plan, a comprehensive, consensus-based package of recommendations formulated by an industry and US Army Corps of Engineers working group to improve the reliability of the US inland navigation system and its infrastructure over the next 20 years.

Last april, the final report and recommendations of the Capital Development Plan were ratified unanimously by the Users Board and submitted to Congress. If adopted, this plan would better address the needs of the entire inland naviga-tion system and provide more efficient funding for critically needed waterways infrastructure improvements that also benefit non-transportation users and the nation as a whole.

The waterways system provides stable pools of water for industrial, municipal and agricultural use, creates recreational opportunities and enhances property values along waterfronts.

Modern commercial lock and dam infrastructure is critical to US competitive-ness in the world market, to environmental protection, to energy efficiency, to the sustainment of well-paying american jobs and to congestion relief. america’s inland waterways are a precious resource, and the envy of the world because of the natural “water highway” the waterways system provides for domestic and export commerce.

specifically, the Inland Waterways Capital Development Plan:· proposes a national prioritized list of navigation projects based on objective

criteria such as economic benefit and project condition;· offers a path forward to more efficiently completing 25 navigation projects in

six years rather than just six projects under the current broken business model, better utilizing tax-payer dollars and completing projects on time and on budget;

· seeks standardization and design centers of expertise;· creates jobs and allows for increasing exports to market. “The inland waterway modernization challenge going forward is the need to

create and implement an improved program for the future. We have an aging sys-tem that needs recapitalization. We have a project funding and delivery system that is too inefficient, resulting in much wasted time and money. While we now have invested the surplus in the Inland Waterways Trust Fund, that has resulted in too few finished projects. and all of this comes in the face of an unprecedented economic crisis that is severely stressing our waterway industry and the nation,” Woodruff testified.

“What’s at stake if we turn our back on our waterways? If we’re prepared to turn off the lights in portions of America, stop feeding the world, cripple our manufacturing base and deprive consumers of essential goods and services, we can stop worrying about the waterways,” he continued.

To date, the Capital Development Plan is supported by more than 200 indus-try stakeholders including national organizations, state, regional and local or-ganizations, and companies. among those which have endorsed the plan are the United States Chamber of Commerce, the National Association of Manufacturers, American Land Conservancy, National Corn Growers Association, National Grain & Feed Association, Steel Manufacturers Association, National Mining Associa-tion, National Council of Farm Cooperatives, and many others from diverse seg-ments of the waterways transportation industry.

The complete list of supporters can be found at www.waterwayscouncil.org. IP

Woodruff Testifies on Critical Role of Waterways in America

Kirby Corp.’s Matt Woodruff


Inland barge transportation produces far feweremissions of carbon dioxide for each ton of cargo moved. Transport by rail emits 39% more CO2,and by truck emits 371% more CO2 compared to barges, according to a recent study by the TexasTransportation Institute.

Inland barges produce less carbon dioxidewhile moving America’s important cargoes.

Waterways Council, Inc.801 N. Quincy St., Suite 200 | Arlington, Virginia 22203703-373-2261 | www.waterwayscouncil.org

BARGES: The Greener Way to Go

The Tennessee and Cumberland River Valleys have been blessed with an abundance of

natural resources. The Tennessee River Valley Association recognizes the tremendous benefits and opportunities that our river systems provide for navigation, recreation and the environment. TRVA will occasionally highlights these valuable benefits through an email feature they call Pic of the Valley. To receive these beautiful testimonies to the grandeur of the Tennessee and Cumberland Valley Region, email Cline Jones, Executive Direc-tor of the Tennessee River Valley Association and Tennessee-Cumberland Waterways Council, at [email protected], or visit www.trva-tcwc.org.

This particular Pic of the Valley is of the legendary Delta Queen, now moored on the Ten-nessee River in Chattanooga, Tennessee at Coolidge Park Landing. The last fully operational, overnight passenger steamboat in the country, is the newest landmark Chattanooga hotel. This grand lady had logged over two million miles, carried over half a million passengers, and is the only boat to be inducted into the National Marine Hall of Fame while still in service. She has entertained presidents, foreign dignitaries, and a multitude of celebrities. In addition to being one of the most unique Chattanooga hotels, the Delta Queen features live music and romantic views overlooking the Tennessee River. Group tours are available, allowing visitors to learn first-hand about steam technology and the colorful history of a legendary paddleboat. IP

The Pic of the Valley

http://www.waterwayscouncil.org/

http://www.waterwayscouncil.org/

The ports on the Lower Mississippi River have faced challenges with fund-

ing for operations and maintenance of the channel in the past. Industry has always been able to resolve these issues by working coop-eratively with the Corps and Congress.

We are confident that with the continued help of the lead-ership of the Corps, Congress and the Obama Administration, we can keep a waterway that supports 413 million tons of do-mestic and international cargo annually fully operational.

While the maritime com-munity is concerned about a potential shortfall in the opera-tion and maintenance of one of the world’s greatest avenues of commerce, the situation has not yet led to significant navigation impacts.

The president’s budget allocates $63 million (including $10 million in Corps Administrative costs) for the Lower Mis-sissippi River operation and maintenance. Over the last several years, the annual expense to maintain the channel has been $104 million.

During a meeting with Major General Michael J. Walsh, commander of the Mississippi Valley Division, the maritime community requested the Corps continue to maintain the channel at its authorized dimensions with the available funding while industry seeks support for addi-tional Corps operation and maintenance funding.

The navigation interests are concerned that if the channel dimensions are allowed to deteriorate in order to stretch the cur-rently available funding over the length of the year, then it will cost more to re-es-tablish channel dimensions than it would have to maintain them.

Meanwhile, navigation interests are pursuing supplemental appropriations that would benefit shippers throughout the United States who use the Mississippi River to export their products or crops and import their raw materials.

Navigation BasicsThe Lower Mississippi River is cur-

rently maintained to a 45-foot channel depth and the channel is normally dredged to 51-foot depth to make allowances for the quick siltation of the River.

The channel width varies in different

sections of the river but is maintained to a width that allows for safe passage of two-way traffic. Most of the lower Mississippi

is naturally deeper than 47 feet; however, there are several sections that require regular maintenance in order to maintain channel depth.

A reduction in channel will limit the amount of cargo that can be safely loaded on ships. a reduction in channel width can increase transit times and make it more difficult to navigate the River safely.

Commerce on the RiverThe Port complex on the lower Mis-

sissippi River is of strategic national importance to the US economy and has a substantial impact on the world economy because a large portion of key commodi-ties, such as grain, petroleum products, coal, chemicals, steel and other industrial raw materials are transported on the waterway.

The fact that the river and its tributar-ies comprise more than 14,000 miles of navigable waterways makes it a natural distribution system that covers a wide stretch of the continental United states. key inland markets that rely on the Mis-sissippi and its tributaries to import raw materials and export their goods include Tulsa, st. Louis, Minneapolis, Chicago, Pittsburgh, Nashville, knoxville and Memphis.

There are five public port authorities located along 250 river miles in Louisiana. Additionally, several of world’s largest companies in agri-business, petroleum refining and chemical manufacturing operate private docks attached to process-ing plants or grain elevators located within this port complex.

about 413 million tons of domestic and

international cargo annually is moved on the Lower Mississippi River.

The New Orleans District of the US Customs and Border Protec-tion Agency handles between $85 billion to $104 billion worth of foreign trade per year, and consistently ranks as the highest or second highest US Customs District.

Louisiana ports exported about $13.4 billion worth of agricultural products in 2009, including grain that is harvested in the Midwest and shipped to Louisiana via barge so that it can be exported to world markets.

4,860 vessels called on Lower Mississippi port facilities in 2009.

The Obama Administration has set a goal of doubling exports within the next five years. The users of the Lower Mississippi River agree that increasing exports is a productive way to improve the economy. In order to meet the goal, the Us should be making smart investments in its export capacity, not restricting one of its most productive arteries of exports and trade.

Long-Term SolutionsWhile the immediate efforts are fo-

cused on obtaining the funding or flexibil-ity needed to maintain the River for this fiscal year, the users of the Lower Missis-sippi River are also interested in pursuing reform of the Harbor Maintenance Trust Fund (HMTF), which should provide a dedicated source of funding to ensure that commerce flows freely from Us ports.

The HMTF is funded by a .125 percent tax on imports arriving in the US in order maintain federal waterways.

In a typical fiscal year, only 50 percent to 60 percent of the funds generated by the import tax are spent on dredging and related harbor maintenance expenses. at this time, almost $6 billion of tax proceeds are available in the HMTF and are not be-ing spent for their intended purpose.

Despite the surplus funds generated, it’s not uncommon for large US ports to experience reductions in the authorized dimensions of the federal waterways they depend on.

Congress should establish a firewall around the HMTF to ensure that funds collected for the purpose of maintaining federal waterways are actually used to maintain federal waterways. IP


Port and waterway users alongthe Lower Mississippi River are working to resolve a potential

shortfall in the US Army Corps of Engineers’ budget for maintaining a navigation channel that is crucial to

the commerce of the nation.

Tackling the Lower Mississippi’s Budgetary Shortfall


St. Lawrence Seaway Cargo Up

The st. Lawrence seaway has reported a significant rise in iron ore, coal

and grain shipments as it enters the final stretch of the shipping season. Total cargo shipments in November jumped by 28 per-cent to 4.8 million metric tons compared to the same period last year, with some sections of the Seaway seeing the highest number of ship transits for this time of the year in more than a decade.

Year-to-date total cargo shipments for the period between March 31 and Novem-ber 30 were 31.9 million metric tons, up 19 percent compared to 2009.

The seaway expects that figure will hit 35 million metric tons before the shipping season concludes at the end of the month.

The Montreal-Lake Ontario section of the seaway saw more than 407 ship tran-sits in November — the highest number for that month in 12 years — as ships brought iron ore and other cargo into the Toronto/Hamilton area and vessels transited through the system with US and Canadian grain destined for overseas markets.

“The double digit tonnage increases we saw in November confirm that an econom-ic rebound from a deep recession is un-derway,” said Rebecca McGill, Director of Trade Development for the Saint Lawrence seaway Development Corporation.

“The North American steel industry is faring much better than last year with strong numbers reported for iron ore, coal, coke and limestone cargoes, while U.s. grain exports are having their best season in more than a decade.”

In November, coal shipments were up 92 percent to 481,000 metric tons com-pared to the same month in 2009.

Coke, which is used as a fuel in blast furnaces during the manufacture of steel, was up 28 percent to 130,000 metric tons.

Iron ore shipments remained strong during the month, up 25 percent at 981,000 metric tons.

Total grain shipments increased by 29 percent in November to 1.8 million metric tons compared to 2009.

Year-to-date figures showed iron ore shipments up 49 percent to 8.9 million metric tons, while grain had increased by 9 percent to 7.8 million metric tons com-pared to 2009.

McGill added, “The Great Lakes ports of Burns Harbor, Indiana and Duluth, Minnesota are regularly seeing ships loaded with wind components as the tonnage for this fast-growing renewable energy industry has more than quadrupled in the Great Lakes Seaway System for 2010 over the preceding year.”

“We’ve seen significant increases in coal, grain and steel movements during 2010,” said Peter Laman, port director for the Port of Indiana-Burns Harbor. “But our biggest increase is in project cargo shipments which are 10 times last year’s totals. This was driven by a few large tank and wind farm construction projects, including one that brought in 11 ships of windmill components. We also had our first exports of U.s. manufactured wind-mills, which were shipped to Nova scotia.”

The Port of Oswego received three large shipments of aluminum from Sept Iles in November alone.

Jonathan Daniels, executive director of the Port said, “Those shipments accounted for nearly double the amount of alumi-num we usually move through our port. We serve as a distribution center for four companies and the aluminum will be used by the food and beverage industry, and in the manufacture of automobiles and appli-ances – a positive economic indicator.”

The Great Lakes-st. Lawrence seaway is responsible for approximately 75,000 jobs in Canada and 150,000 in the Us. It annually generates more than $4.3 bil-lion in personal income, $3.4 billion in transportation-related revenue, and $1.3 billion in federal, state and local taxes. IP


Truly Portable Shallow Water Swath Bathymetry for Small Boat Operations at Port and Harbor Facilities

GeoAcoustics, a leading manufacturer of sonar seabed survey equipment, released the GeoSwath Plus Com-

pact for wide swath bathymetry earlier this year. Ideal for inspection and maintenance surveys for port authorities on a budget, the shallow water multibeam and side scan system is based on one of the most successful phase measuring bathy-metric sonars on the market, the Geoswath Plus.

Geoswath Plus Compact offers efficient simultaneous swath bathymetry and side scan seabed mapping with accu-racies that have been shown to exceed the sP-44 ed.5 special Order IHO standards for hydrographic surveys. available in three frequency versions, 125, 250 and 500 kHz, the system has depth performance of 200m, 100m and 50m respectively.

The applied phase measuring bathymetric sonar tech-nology provides data coverage of up to 12 times the water depth, giving unsurpassed survey efficiency in shallow water environments for hydrographic mapping, dredging, environ-mental and inspection surveys, as well as military applica-tions like rapid environmental assessments and mine counter measures.

The system’s splash protected deck unit is designed to be deployed on small vessels like dinghies and jet skis. The deck unit operates on 24 V power supply with only 40 W consump-tion and connects to the operator’s laptop computer.

The wet-end consists of an integrated mounting for the newly designed dual transducer head and all ancillary sen-sors. It can be pre-calibrated, allowing for fast installation on the smallest boats of opportunity, ensuring the user spends time on the water, getting the survey done.

Geoacoustics is a wholly owned subsidiary of kongs-berg Maritime and GeoSwath Plus Compact completes the company’s portfolio of multibeam systems, ranging from the full ocean depth to this truly portable solution for small craft shallow water operations. IP

GeoSwath Plus Compact Ideal for Small to Mid-Sized Port Surveys

(Above) The Wet End: The compact unit for over-the-side mounting holds the dual head transducer together with the ancillary sensor. It can be pre-calibrated and weights as little as 17 kg.

(Below) The Dry End: GeoSwath Plus Compact splash protected deck unit. The unit connects to the operator’s laptop or directly to monitor and keyboard. It operates on 24 V with 40 W consumption.

Cs Unitec’s Model 2 2406 0010 Hydraulic Rotary Hammer Drill delivers 3,400 blows per minute for percussion drilling of concrete,

rock and masonry. This tool uses sDs-Plus shank carbide tipped bits up to 1” diameter for cost-effective drilling of concrete anchor holes and thru-holes. additional applications include piping and mechanical openings, as well as other construction and repair work. This versatile hammer drill can also be switched to a rotary mode for drilling of steel and wood.

Ideal for use in marine utility and construction environments, this Hydraulic Rotary Hammer Drill is especially suitable for port and harbor maintenance, as well as municipalities and power transmission and distribution applications, as well as other industries where hydraulic power is the norm.

Features of this hydraulic powered drill include a safety clutch that protects against overloads and jamming; an adjustable side handle with depth gauge; and sealed gears with permanent lubrication. It weighs only 15 lbs. Cs Unitec supplies the drill with a water flushing attachment that suppresses concrete dust.

The Hammer Drill works at 1450 PsI up to 2000 PsI operating pressure. The flow range is 5.8 to 13.2 gpm. The unit includes hy-draulic hoses with 3/8” Flush-Face (FF) connectors for supply and return, an adjustable grip handle and a carrying case. IP

New Concrete Hammer DrillAffordable for Ports on a Budget


The US Department of Transportation’s Maritime Administration (MARAD) is providing $4 million to help prevent the spread of aquatic invasive species found in cargo ships plying the Great Lakes and America’s inland waterways. “This funding demonstrates the Obama Admin-istration’s commitment to protecting the Great Lakes while supporting economic revitalization of the entire region,” said Secretary of Transporta-tion Ray LaHood.

The funding is part of the administration’s Great Lakes Restoration Initiative, the largest federal investment in the Great Lakes in 20 years. The initiative’s priorities for action—developed by a task force of 16 federal departments—are combating invasive species, cleaning up toxics, protecting wetlands from pollution, and restoring wetland and habitats.

“As the largest freshwater system on Earth, the Great Lakes are a national treasure, and the foundation of a multi-billion dollar regional economy. Working together, we will protect this essential resource for the benefit of communi-ties throughout the region, and the Nation as a whole,” said Maritime Administrator David T. Matsuda.

Through a cooperative agreement with the Northeast Midwest Institute, MARAD is providing funding and technical expertise to help upgrade the Great Ships Initiative (GSI) ballast water treatment technology testing facility. The GSI facility, located in the Duluth-Superior Harbor of Lake Superior and the only one in North America, is being used to test promising water treatment technologies designed to remove unwelcome species “hitch-hiking” in ballast water tanks onboard cargo ships.

The Maritime Administration also awarded a $834,000 contract to ABS Consulting of Hous-ton, Texas, along with Great Lakes Maritime Re-search Institute and other partners, to conduct a year-long study reviewing investment options for the revitalization of the US-flagged Great Lakes fleet and related regional maritime infrastructure. More extensive and stringent environmental regu-lations slated for the Great Lakes region will likely require additional private and public investment to upgrade and/or refit vessels, ports and other infrastructure to ensure new standards are met. The study will also include an overview of existing market conditions, an inventory of the US-flagged Great Lakes vessels and regional port infra-structure, an examination of private/public sector financing options, and a benefit-cost analysis for each of the investment options.

The Port of Lake Charles has launched a vessel cleaning project involving at least 1,000 new jobs will begin almost immediately at the port’s Industrial Canal facilities. The venture, under-taken by the port, in conjunction with British Petroleum (BP) and Dynamic Industries, Inc. (DII), will provide a state of the art facility for the final cleaning vessels employed as part of the massive response to last summer’s Deepwater Horizon oil spill. According to the port, it will have an immediate positive economic impact on the area, including hiring personnel and spending at local suppliers, service providers, restaurants, and hotels.

The work entails final (Stage III) detailed cleaning of the vessel hulls, superstructures, decks, and confined spaces. The vessels will have undergone two levels of decontamination (Stage I and Stage II) prior to arrival at the Lake Charles facility. Each vessel must pass a Coast Guard inspection and received a certification as being properly clean before being allowed into the Lake Charles channel.

An estimated six to eight million man-hours of work will be performed at Lake Charles before the project concludes. Operations at the site will take place 24 hours a day, seven days a week over the next three to six months.

The port says the operation will adhere strictly to a waste management plan approved by the US Environmental Protection Agency and

the Louisiana Department of Environmental Quality. Additionally, BP and DII are upgrading the sanitary facilities at the site, making it poten-tially “more attractive,” the port says, “for future possible projects.”

The Port, in conjunction with BP, the United States Coast Guard, DII, and the Lake Charles Pilots, Inc. are working together to ensure that navigation of the channel will not be impaired.

Similar large-scale, professional decontami-nation sites for final stage cleaning of response fleet ships are also being established at the ports of Pascagoula and Port Fourchon.

The President of Colombia recently announced a plan to increase the permanent depth of the Magdalena River by nine feet in the sector of Puerto Salgar (Multipuerto). This will increase the depth to three times its current state, enabling oil transportation from Multipuerto in annual amounts that may reach 10 million tons in the mid-term. This depth increase will also enable transporting large amounts of coal, grains, fertiliz-ers, and other container cargo by an amount of 5 million tons. All of this represents more than what is currently being transported through the three sea ports of the Colombian Caribbean (Carta-gena, Barranquilla and Santa Marta).

The passage of the Diesel Emissions Reduc-tion Act (DERA) by the US Senate Environ-ment and Public Works Committee (EPW) is being hailed as a major step in continuing “a vital clean air program that has benefited communities in every single state in the nation,” according to Allen Schaeffer, the Executive Director of the Diesel Technology Forum (DTF).

DERA (S. 3973) is a five-year reauthoriza-tion of the highly-successful program created in 2005 to establish voluntary national and state-level grant and loan programs to reduce diesel emissions by upgrading and modernizing older diesel engines and equipment. The bipartisan legislation was introduced on November 18th by US Senators George Voinovich (R-OH) and Tom Carper (D-DE) and cosponsored by several of their colleagues including EPW Chair Barbara Boxer (D-CA) and Ranking Member James Inhofe (R-OK).

“Chairwoman Boxer and Ranking Member Inhofe are to be commended for their bipartisan work on DERA to help modernize older diesel engines and improve America’s air quality,” Schaeffer said.

“DERA has helped clean up tens of thousands of diesel engines. It’s been incredibly cost-effective—EPA estimates that every federal dollar invested in DERA translates into at least 13 dollars in health benefits. This cost effective-ness is actually higher thanks to state and local matches that stretch the federal DERA dollars.

Industry Notebook Let us spread your message!Email your company or organization news

to [email protected]

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DERA funds also support new and existing jobs in clean diesel manufacturing, as well as local jobs in installing and maintaining the new diesel technologies.

DERA is one of the few environmental is-sues to gain bipartisan support. “While it’s been difficult lately to find environmental issues that have near-universal bipartisan support among Democrats and Republicans, DERA has proven to be one program to do so,” Schaeffer said. “In addition, a unique and diverse coalition of more than 500 environmental, health, industry, labor and government organizations are actively work-ing for DERA’s reauthorization. We are hopeful the full Senate and US House will continue this bipartisan effort and reauthorize DERA during the lame duck session.”

Why is DERA important? DERA funds are used to clean up the nation’s older, dirty diesels, by retrofitting or replacing them with new tech-nologies that significantly reduce the soot and emissions from an estimated 11 million of our oldest diesel trucks, buses, and equipment.

Since 2005, the federal government has invested roughly a half-billion dollars through DERA to improve America’s air quality by upgrading and modernizing older diesel engines and equipment through engine replacements and retrofits that would include new pollution-cutting filters and catalysts.

Diesel engines are the workhorses of our nation. They are reliable, efficient, and durable. That’s why diesel engines power most of the trucks that deliver our goods, the buses that take us to work and get our kids to school, the farm equipment that harvests our crops, and even the trains and ships that carry containers and other cargo to our cities. Our hospitals, airports and law enforcement rely on diesel generators for emergency power, as do local and regional power companies.

Roughly a decade ago, EPA adopted the first of a series of diesel rules that have led to an unprecedented investment in cleaner diesel fuels and pollution control technologies. These rules have taken the sulfur out of diesel fuel, and have included pollution-cutting standards that are reducing emissions from new diesel engines by more than 90 percent.

When all of today’s older diesels have been replaced by new models that meet these standards, at least 110,000 tons of particulate matter (or soot) and 2.6 million tons of smog-forming nitrogen oxides will be eliminated from the nation’s air.

To put it another way, replacing or retrofit-ting the nation’s older diesels with these newer, cleaner models will be the clean-air equivalent of taking 13 million of today’s trucks off the roads.The Shipowners’ Club has published its first half-yearly financial report and advised its members that no general increase will be imposed for the next policy year, 2011/12. Strong underwriting performance coupled with a small investment return result in a US$23.9M overall surplus, increasing free reserves to

US$159.2million.Shipowners’, the mutual P&I Club which

specializes in providing liability insurance to smaller and more specialised vessels, has for the first time made public results of its half-year performance. At the same time the Club has also confirmed that no general increase will be applied to Members’ premiums at the 20th February 2011 renewal.

Commenting on the recent Board decision, Charles Hume, CEO stated, “We have applied general increases during recent renewals but in view of our encouraging first half results and the challenging operating environment still be-ing experienced by many of our Members, we are pleased to announce now that no general premium increase will be applied for the 2011 policy year. That said, underwriters will be look-ing closely at the claims record and premiums paid by each Member and also assessing closely the risks associated with every vessel type. It is through this sort of prudent underwrit-ing that the financial stability of the Club will be maintained.”

The results in question are indeed encour-aging with the unaudited figures for the six-month period showing gross earned income of US$ 96.3M, which represents a 14% increase in debited income over the same period last year. In keeping with the experience of other P&I insurers, Shipowners reports a reduction in the number and value of claims despite the total number of vessels entered with the Club being reasonably constant at around 28,000 since 2007.

With claims reduced and income increas-ing, the six-month underwriting performance is predictably strong. In this regard, Shipowners reports an anticipated technical account surplus of US$21.1M, producing a combined ratio of 75.4%.

The Shipowners’ Club is a mutual marine liability insurer, providing Protection & Indem-nity insurance to small vessels since 1855. The Club currently covers over 28,000 vessels from 6,322 Members worldwide and is a member of the International Group of P&I Clubs. The Club has regional offices located in Luxembourg, London, Singapore and Vancouver. IP


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The L

ast W

ordA Revealing Look at Industry Leaders

How did you become involved in this industry?I grew up on Bayou Lafourche, South Louisiana, in an area where the inland towing industry is very important in supporting the oil and gas in-dustry. My dad owned small passenger ves-sels that carried oilfield workers and towing vessels that pushed barges supporting that important part of the South Louisiana economy.

Upon graduating from Nicholls State Univer-sity in South Louisiana, I was offered an opportunity to come to Wash-ington to work for our local congressman, Billy Tauzin, as his Legislative Assistant for Maritime Affairs. I handled all matters relating to the Coast Guard, the Corps of Engineers, and the maritime industries. Over the last nearly 29 years, I’ve always worked on behalf of, or in one of, our maritime industries.

What exciting things is Waterways Council currently working on?Our number one priority at this time is seeking the adoption and implementation of the Inland Waterways Capital Development Plan. This plan was created after more than 18 months of effort by industry and Corps of Engineers experts. It is designed to resolve shortfalls in the Inland Water-ways Trust Fund, improve the Corps’ process for managing and delivering projects, and set priorities for waterways infrastructure improvements across the entire system. This plan can set the course for investment in our inland waterways infrastructure for the next 20 years.

Brag on your family a bit.My wife of 28 years, Cindy, is an RN and currently manages the outpatient surgery unit in an urgent care facility in downtown Los Angeles.

My daughter, Samantha Elizabeth, studied theatre at The Catholic University of America and the film and television industry at the New York School for Film and Television. She currently works for a very successful producer in Hollywood and is currently working on several big projects that are sure to be big hits in the next year. She is also helping to produce a major charity gala at this year’s Kentucky Derby.

My oldest son, Cornel James, Jr., is a pilot. He completed his training and earned his multi-engine commercial license at Delta Connection Academy in Sanford, FL. He flies for a business owned by my brother and sister in South Louisiana.

My next son, Graham Patrick, is an actor. He has been working professionally since he was 11 years old. Currently, he has a role as a recurring guest star, Eldridge McKelroy, Jake’s friend, on the CBS

hit comedy, Two-and-A-Half Men. He first appeared at the end of season seven earlier in 2010, and his character has continued with regular appearances

in season eight in the fall of 2010 and into 2011.

My youngest son, Duncan Alexander, is a Sophmore at Notre Dame High School in Sher-man Oaks, CA. He is a defensive lineman on the football team, plays tuba in the band, studies Kung Fu at a local Shaolin Temple, and is an active Boy Scout.

What was your favorite project or assignment you’ve been involved in during your career, and why?Prior to this year’s effort on the Inland Waterways Capital Develop-ment Plan, which

is critical to the future of all who depend on our inland waterways, it would have to be my work for American Classic Voyages, which was the parent company of The Delta Queen Steamboat Company. While there, I worked on efforts to successfully secure a 10-year extension of the Congressional exemption that allowed the Steamboat Delta Queen to continue operating until November 2008, and The Project America legislation which allowed the reflagging of a large cruise ship into the US Fleet and construction of two other large cruise ships to be added to the US fleet. One of those vessels still operates in Hawaii today.

What was your least favorite?I really can’t think of a project that I didn’t enjoy over the last nearly 29 years, but the one I am most disappointed in was my inability to secure investors to acquire and keep the vessels of the Delta Queen Steamboat Company operating after the bankruptcy immediately following the tragedy of 9-11-2001. The loss of those steamboats was a loss of part of our heritage.

What’s the last song that played on your CD or MP3 player?I’m more of a talk radio person. I know, “boring!” It drives my wife and kids nuts. I do love all kinds of music, but if I had to pick, probably something by Frank Sinatra or Harry Connick, Jr.

What accomplishments are you most proud of?I was actually very proud to be selected as CEO of Waterways Council, Inc. After having been away from Washington for several years, I was honored to be asked to come back to DC to represent our industry at this critical time.

If you could go back and tell your teenage self one thing, what would that be?Don’t ever let geography limit your goals and desires. I guess I’ve successfully taught my kids that, which is why we’ve lived in New Orleans, New

York, and now Los Angeles in support of our kids’ goals and desires.

Without naming names to protect the innocent (or guilty), what is the single most unbelievable thing you have seen happen on a project in your career?Impossible to protect the innocent, so I’ll pass on this one.

What do you want to be when you grow up?Captain of my own boat (yacht) touring America by water.

Tell us something no one knows about you.I can’t think of anything that no one knows about me.

If you could make those in power at the local, state, and federal levels understand one thing about the inland port and waterways industry, what would it be?There are many beneficiaries of our inland water-ways, including recreational boaters, utilities and manufacturers who use water in their manufacturing process; municipal water supplies, farmers and others who rely on low cost waterways transporta-tion; and those who benefit from flood control, hydropower, and the steady reliable pools of water created by our locks and dams. We must invest in our inland waterways infrastructure to continue to enjoy these benefits.

If you make the general public understand one thing about the inland ports and waterways industry, what would it be?We must invest in our ports and inland waterways because they are good for our environment, help our farmers and many other exporters to be more competitive in world markets, create and support good American jobs, and are critical to the future economic well-being of our country. Our inland waterways “Keep America Moving!”

What’s your favorite?Movie: Animal HouseBook: The BibleTV Show: Two-and-A-Half-Men, of course!Sport: New Orleans Saints and LSU football

What piece of equipment has not been invented yet, but will revolutionize the inland port industry when it is?A lock that doesn’t fail.

If you could change one thing about yourself, what would it be?I’d be younger.

What was the first concert you ever attended?Sonny and Cher at the Illinois State Fair in the late 60s or early 70s.

Give us your thoughts on the current state of the inland port waterway industry, where it has been, and where it is going. How can a publication like Inland Port Magazine help?We are in desperate need of investment in our inland waterways infrastructure in new construction, major rehabilitation, and operations and mainte-nance. We must dredge our ports and waterways to there authorized depths and expand those needed to support expanded exports.

We have a great story to tell about the value and importance of our ports and waterways and their contribution to America. Inland Port Magazine can help by telling our story over and over again until our leaders in government and our citizens finally get it. IP

Cornel MartinPresident and CEO, Waterways Council, Inc.

http://www.inlandportmagazine.com/

http://www.americanwaterways.com/

Inland Port Magazine November / December Issue

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Transcript of Inland Port Magazine November / December Issue