Portside Magazine - Summer 2013

www.portsofindiana.com · Summer 2013

A Ports of Indiana Publication · Summer 2013

• Commissionwelcomesnewcompanies,approves$1.7Minrail,sewerwork,pg.5• Studyshowsenvironmentalbenefitsofships,pg.6• SteelDynamicsinvests$7.1Mintogalvanizingline,pg.14

Criticalconditionsoninlandwaterways

InsidethisIssue:

Recent events highlight challenges for vital transportation system

011-POI_Portside-Summer2013_FINAL.indd 1 7/26/13 12:00 PM

Summer 2013 · PORTSIDE MAGAZINE


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TABLE OF CONTENTS

3

Ports of Indiana Mission“To develop and maintain a world-class port system that operates as an agile, strategically-driven, self-funded enterprise dedicated to growing Indiana’s economy.”

www.portsofindiana.com · Summer 2013

FROM THE CEO ....................................................................................................... 4Going ‘green’ to improve bottom line Economic and environmental advantages of marine shipping

FROM THE BOARD ROOM ......................................................................................... 5Commission welcomes new companies, approves $1.7M in rail, sewer work

ENVIRO FOCUS ....................................................................................................... 6 Study shows environmental benefits of shipsGreat Lakes shipping is 7-times more fuel efficient than truck transportation

GUEST COLUMN ..................................................................................................... 7 A fresh perspective: The Ports of Indiana through the eyes of a newcomer

FEATURE ........................................................................................................... 8-11Critical conditions on inland waterwaysRecent events highlight challenges for vital transportation system

PORT REPORTSBurns Harbor: Floating laboratory hosts educational cruises at port ......................... 12Mount Vernon: Evansville Western adds interchange with Norfolk Southern ............... 13Jeffersonville: Steel Dynamics invests $7.1M into galvanizing line ...............................14

Ports of Indiana Directory ……................................................................................ 15



We all know that the ‘bottom line’ is what drives most business decisions today. And, more and more businesses are committed to improving their ‘bottom line’ in an environmentally friendly way. They will also go on to confirm that there are few variables that can influence their bottom line as much as transportation costs. Those costs are buried in the selling price of everything we buy, whether it’s paper, pacifiers, or Porsches. The in-bound costs of raw materials used to produce these products and the out-bound costs to get them to the marketplace represent a significant portion of the selling price. When consumers believe the selling price is too high, they buy elsewhere or don’t buy at all. It’s this behavior that causes companies to drive costs from their supply chains to remain competitive, and it’s a sure-bet that companies whose products were transported via water versus other modes were done so at a lower cost and a lower carbon footprint.

Our nation has a well-established transportation infrastructure system that consists of 25,000 miles of navigable waterways, 4 million miles of public roads and 160,000 miles of rail. Across these modes, the country moves 1.9 billion tons of cargo each year and 75 percent of that cargo is transported on the waterways. In 2011, these transportation-related goods and services contributed $1.6 trillion to the $15.6 trillion U.S. GDP, roughly 10 percent.

Located at the “Crossroads of America,” Indiana is ideally positioned to optimize the transportation network by providing multimodal connections for domestic and international commerce. Accessibility to 80 percent of the U.S. population within a one-day drive provides businesses and shippers a variety of options for moving cargo.

Indiana is surrounded by 400 miles of navigable waterways providing access to the Atlantic Ocean and Gulf of Mexico via Lake Michigan and the Ohio River. Nearly 750 million tons of raw materials, agricultural commodities and manufactured products are moved on the Great Lakes-St. Lawrence Seaway System and the Inland Waterways. Indiana accounts for almost 70 million tons of those maritime shipments.

Indiana industries such as agriculture, steel, manufacturing, power generation and construction directly benefit from the marine connections of the Ports of Indiana. In fact, the economic impact of our state’s three ports is $6.4 billion annually, which includes $895 million in local purchases and $271 million in state and local taxes. In most instances, our ports are not the final destination for cargoes we handle. Cargo movement at the port is multidirectional – where goods can be unloaded from a ship or barge onto rail or truck; or unloaded from rail or truck onto a ship or barge. It is the essence of being multimodal.

There is absolutely no question that “water” becomes the mode of choice for hauling large volumes of bulk material and even steel. It’s these multimodal capabilities that make our ports a vital link in the supply chain. Take for example the cost of moving steel from Northwest Indiana to the Gulf Coast. The approximate cost per ton of freight plus fuel surcharges for each mode would be: truck ($140), rail ($70) and barge ($35), not including handling charges. When you consider the cost for each mode to move 1,500 tons of steel, you can quickly see the maritime advantage. In this shipment, barge shipping would be over $50,000 cheaper than rail and $150,000 cheaper than truck.

According to a recent study by Marine Delivers, a bi-national organization promoting Great Lakes shipping, the combined Great Lakes-Seaway fleet can move cargo 38 percent farther than rail and 83 percent farther than truck, per gallon of fuel. A separate study conducted by the Texas Transportation Institute shows that with one gallon of fuel river barges move a ton of freight 576 miles compared to rail at 413 miles and truck at 155 miles. Think of the economies of scale when the largest Great Lakes vessel can carry 62,000 tons of cargo, which equates to 35 barges, 564 railcars or 2,340 trucks.

The ability of marine transportation to move cargo more efficiently in greater volumes minimizes transportation costs while also reducing air emissions. The emissions of rail and truck exceed of those of the average Great Lakes Seaway vessel by 19 percent and 533 percent respectively. Given the option, marine transportation can provide some seriously green advantages for the environment, improve a company’s ‘bottom-line’ and lower the costs consumers pay for their everyday purchases.

GoinG ‘Green’ to improve bottom lineEconomic and environmental advantages of marine shipping

4 Summer 2013 · PORTSIDE MAGAZINE

FROM THE CEO

Rich CooperChief Executive Officer, Ports of Indiana

Cost ComparisonEstimated costs for a sample shipment of steel from Northwest Indiana to the Gulf of Mexico (not including handling charges):

1,500 tons of steel

•Barges – 1 - $35 per ton = $52,500•Trucks – 68 - $140 per ton = $210,000•Railcars – 18 - $70 per ton = $105,000


www.portsofindiana.com · Summer 2013 5

INDIANAPOLIS - The Ports of Indiana Commission approved agreements with three new port companies and launched two major infrastructure projects in April and June meetings at the two Ohio River ports.

Agreements were finalized for NIPSCO and The Franciscan Alliance to join the Port of Indiana-Burns Harbor, while Walsh Construction will be opening multiple facilities at the Port of Indiana-Jeffersonville in preparation for construction of the massive Ohio River Bridges project.

Commissioners launched two construction projects that will have major impacts on the Port of Indiana-Burns Harbor: a main line rail reconstruction and sanitary sewer system replacement.

The main line rail reconstruction at Burns Harbor is part of a multi-phase rail improvement project at the port. The project includes the reconstruction of portions of the main line rail at the port, including the rehabilitation of 2,500 feet of rail at three priority areas and the replacement of 1,000 crossties. Upon completion, approximately half of the three-mile rail loop, completed in 1980, will have been reconstructed since 2010. A contract in the amount of $508,000 was awarded to Tranco Industrial Services Inc.

Sanitary sewer improvements include the replacement of approximately 1,900 lineal feet of pipe, which will pass under the freight and commuter rail lines. The commission awarded a contract to LGS Plumbing Inc. in the amount of $1.2 million. Additional improvements at the port include a contract awarded to Maris and Sons of Hobart, Ind., for the replacement of roofing on four buildings.

Joining the Port of Indiana-Burns Harbor is The Franciscan Alliance. The former healthcare provider at the port, HealtheACCESS, located in the William N. Kenefick

Administration Building, recently sold its business to The Franciscan Alliance.

At the Port of Indiana-Jeffersonville, a special-use permit and lease agreement for Walsh Construction Co. were also approved by the commission. Walsh is leading the design and construction of the Downtown Crossing of the Ohio River Bridges Project. The special-use permit and lease are for the purpose of staging and assembling steel girders for the bridge. Earlier in 2013, Walsh and joint venture partner VINCI Construction Grands Projets Inc. received approval to lease Port Building #2, where they will locate their design and construction team for the East End Crossing portion of the Ohio River Bridges Project.

The Ports of Indiana will also be collaborating with the Indiana Economic Development Corporation, the Indiana Department of Transportation, the City of Jeffersonville, Clark County and the River Ridge Development Authority, as the commission approved a transportation corridor study to identify the route of a rail connection between the Port of Indiana-Jeffersonville and River Ridge, along with a proposed heavy haul highway.

The commission also received an update on a memorandum of understanding that has been established between the Port of Indiana-Mount Vernon and the Indiana Department of Transportation to develop a new roadway for westbound traffic exiting the port. The new roadway will alleviate the City of Mount Vernon’s concerns about truck traffic from the port moving through residential areas.

The commission also approved the 2012 audit conducted by Crowe Horwath LLP, which has served as the independent auditor for the Ports of Indiana since 1993.

The Ports of Indiana will hold its next commission meeting on August 15 at the Port of Indiana-Burns Harbor.

Commission welcomes new companies, approves $1.7M in rail, sewer work

Ken Kaczmarek Greg Gibson Marvin Ferguson Ramon Arredondo David Fagan Phil McCauley Christine Keck Jay Potesta

For registration and sponsorship details visit:

www.IndianaLogistics.com

Join us for the11th Annual

Indiana LogisticsSummit

Indiana Convention Center October 9-10, 2013



A recent bi-national study outlined the advantages of utilizing marine shipping in the Great Lakes-St. Lawrence Seaway region, providing further support for the importance of investments in marine technology and infrastructure.

The report, titled “The Environmental and Social Impacts of Marine Transport in the Great Lakes-St. Lawrence Seaway Region,”

was conducted by Ontario-based transportation consultants Research and Traffic Group and peer-reviewed by industry experts in both the U.S. and Canada.

According to the study, Great Lakes ships are more environmentally-friendly than land-based transportation modes – they use less fuel and emit fewer greenhouse gases than trains and trucks. The study also concluded that a shift from marine to truck or rail transport would have numerous disadvantages for society, including an increase in traffic congestion, infrastructure maintenance costs and noise levels along highways.

Key findings in the study included:• The Great Lakes-Seaway fleet is almost seven times more

fuel-efficient than trucks and 1.14 times more efficient than rail.• Whencarryingthesameamountofcargothesamedistance

as the Great Lakes-Seaway fleet, trucks would emit 533 percent more greenhouse gases, while rail would emit 19 percent more.

• IfGreat Lakes-Seaway shipments were switched to trucktransportation, it would lead to a $4.6 billion increase in highway maintenance costs over 60 years.

• Itwould require7.1million truck trips to carry the cargoshipped by the Great Lakes-Seaway fleet in 2010, increasing existing truck traffic on various highways anywhere from 35 to 100 percent.

• Similarly,itwouldtake3milliontraintripstocarrythesameamount of cargo as the Great Lakes-Seaway fleet in 2010.

Long-term environmental effects of the Great Lakes-Seaway fleet were also examined as they pertain to meeting new regulatory standards and using low sulfur fuels and new technology, including the repowering of steam-powered vessels, satellite navigation, electronic 3-D charting and propulsion upgrades. It found that from 2012 to 2025, greenhouse gas emissions by ships would be reduced by 32 percent, nitrogen oxide emissions would be reduced by 86 percent, sulfur oxide emissions would be reduced by

99.9 percent and emissions of particulate matter would be reduced by 85 percent.

Marine industry experts say the results of this study provide further basis for continued investment in Great Lakes-Seaway shipping.

“The study findings present a more complete picture of shipping in the Great Lakes in terms of the benefits of this mode of transportation,” said Steve Fisher, executive director of the American

Great Lakes Port Association. “Data from the study will help inform future decisions on subjects ranging from investments in new technologies, budget allocations for infrastructure projects, and appropriate levels of regulation, to name a few. The marine industry now has the information it needs to address questions by federal and state governments on the value of

shipping to its constituents.”According to Marine Delivers’ website, the economic impact of

Great Lakes shipping in Indiana is greater than any other state, and more than the next two states combined.

“Marine shipping offers many solutions for our regional transportation system,” said Rick Heimann, port director for the Port of Indiana-Burns Harbor. “Water transportation, whether it is by inland barges, ocean-going ships or lake vessels, has historically shown great cost efficiencies. Marine shipping should be fully utilized whenever possible or whenever the supply chain allows for its inclusion. Water transportation systems hold fantastic advantages both economically and environmentally.”

Gordon English, a co-author of the study, added that further investments in marine shipping will help the industry continue to compete with other forms of shipping. “The rest of the competing modes are changing, and the marine world will also have to invest and improve performance going forward to maintain its advantage,” he said.

According to Marine Delivers, the Great Lakes-Seaway shipping industry supports 227,000 jobs in the U.S. and Canada while generating $35 billion in business revenue and transporting 164 million metric tons of cargo per year. When compared to the alternative land-based transportation options, this trade route saves companies $3.6 billion per year in transportation costs.

For more information, visit www.marinedelivers.com.

E n v i r o • F o c u sEnvironmental issues are very important to the Ports of Indiana. As a port authority, the Ports of Indiana has the dual responsibility of protecting and enhancing our environment while building infrastructure that facilitates economic development.

Article by Evie Schultz

6

Study shows environmental benefits of shipsGreat Lakes shipping is 7-times more fuel efficient than truck transportation

A fresh perspectiveThe Ports of Indiana through the eyes of a newcomer

Photo: St. Lawrence Seaway Management Corporation



We watched as Federal Marine Terminals, the port stevedoring company, unloaded steel coils from the ship. I had never been on a bulk carrier before, so I didn’t realize that the ship actually has

several holds below deck which are covered by hatches. These holds are where the cargo is stored when transported.

In this case, when the Federal Yukon arrived at the port, a front-loader was lowered into each hold to move the cargo. Then, a huge crane was used to lift the cargo up and out of the ship onto the dock. After watching how the process works, we met several of the ship’s crewmembers who very graciously showed us their accommodations and the ship’s wheelhouse. I was surprised to learn

that the captain’s family lives on the ship with him, which I was told isn’t typical.

Later in the day, we climbed five stories to the top of the Cargill grain tower which provides fantastic views of the rest of the port, the steel mills in the area, Lake Michigan and the Chicago skyline. The massive ship, cranes and all the big port equipment looked much smaller from this vantage point, and it was amazing to look down on the port and see everything happening at once. I was also especially excited to be able to wear a hardhat, neon safety vest and protective glasses – I felt so official!

Port of Indiana-Jeffersonville During my visit to Jeffersonville, I attended my very first

Ports of Indiana Commission meeting and took a tour of the port with Operations Manager Brian Sieg. I enjoyed meeting the commissioners and being able to listen to a discussion of port operations. Then during my port visit, I was able to meet the president of Voss/Clark, Joe Rhodea, and get a firsthand view of how his steel is pickled, slit and blanked for use in household items such as water heaters.

Steel plays such a huge role at this port that it is often referred to as a “Steel Campus.” The port boasts over a dozen steel processing and handling companies that work alongside each other to provide a one-stop shop for auto and appliance manufacturers that require all shapes and sizes of steel components.

I’ve spent most of my life in Indiana, and I’ll admit that at times I’ve felt, well, landlocked. But after getting the opportunity to travel to and explore each port as an intern with the Ports of Indiana, it is much clearer to me how the ports connect our state to our waterways and, in turn, the world around us. And by doing so, they are helping Indiana’s economy to grow and thrive.

Before I began working at the Ports of Indiana, I knew very little about how the ports actually function. I was aware of the basics, of course, but I had never been to a port or seen what goes on at one on a daily basis. But within a month of starting my internship at the Indianapolis office for the Ports of Indiana, I was lucky enough to be able to visit all three of the state’s ports and gain a firsthand view of their operations and purpose.

I had heard from staff members that each port is unique, with its own “personality.” They were correct – the ports all boast their own distinct characteristics. From size and location to the type of cargo handled, each Indiana port differs from the next. However, the ports share one common purpose: they are part of a world-class ports system that is striving to grow Indiana’s economy. Here’s a bit of what I learned on my visits:

Port of Indiana-Mount VernonThe first port I visited, Mount Vernon felt expansive and

spacious. It is the largest of Indiana’s ports and has the most land available for development. On my visit, I learned that this port moves more cargo by water and rail than any other Indiana port.

Randy Kennedy, Mount Vernon’s operations manager, was kind enough to give me a thorough tour of the port. At the docks, Randy pointed out CTLC’s overhead crane, which is able to directly transfer cargo between barges, trains and trucks to a huge warehouse totaling 58,000 square feet. He also showed me large piles of talc outside of Cimbar, a minerals processing company, and even offered to let me keep a small piece. Talc rocks are easily scratched with a fingernail, and can be processed into a powder that is often used in paints and makeup.

Before my visit, I did not realize that the Mount Vernon location has so much room to expand. Randy drove me past fields which are all available for use by potential tenants. I learned this port has grown significantly over recent years, so adding new land was important to make room for future tenants.

Port of Indiana-Burns HarborAt Burns Harbor, Operations Manager Nick Szymarek also had

a full day planned for me so that I could experience and learn as much as possible about Indiana’s first public port.

The first matter of business was boarding and touring the bulk carrier Federal Yukon, which was docked in the West Harbor Arm.

Column by

Evie Schultz

Summer Intern for the Ports of Indiana

Evie will be a sophmore at Butler University and is majoring in Journalism, Spanish and Economics.

GUEST COLUMN

A fresh perspectiveThe Ports of Indiana through the eyes of a newcomer

A Great Lakes Towing tugboat helps the Federal Yukon leave the harbor at the Port of Indiana-Burns Harbor.

Mount Vernon Transfer Terminal’s 1,000-foot conveyor transfers coal from rail to barge at the Port of Indiana-Mount Vernon.


Summer 2013 · PORTSIDE MAGAZINE8

NewOrleans

Upper St. Anthony Falls Lock

MarseillesLock and Dam

Port of IndianaJeffersonville

Port of IndianaMount Vernon

Port of IndianaBurns Harbor

CriticalconditionsoninlandwaterwaysThis incident magnifies the ongoing battle being waged on

inland navigational structures by the wrath of Mother Nature and the deteriorating effects of Father Time.

More than half of the locks and dams on the inland waterways are more than 50 years old, well past the intended design life. Thirty-four locks exceed 80 years of age.

“The infrastructure is susceptible to more severe damage because of its age,” Heimann said. “The older the infrastructure, the greater the chance for a catastrophe – there’s a better chance for a structure to crumble and fall apart completely. When you take seven barges moving 10,000 tons in the river current, and you hit a structure that doesn’t move, there will always be a problem. But newer, improved designs and well-maintained infrastructure will have fewer problems, reducing the chance of a closure and delays.”

According to the Army Corps of Engineers, maintaining the waterway at current operational standards will require more than $13 billion by 2020, billions more than current funding levels being appropriated by Congress. The Corps currently has 22 maintenance and improvement projects in the works that will not be completed until 2090 if funding levels are not increased.

Historic flooding. Record drought. Crumbling infrastructure. Insufficient funding. Invasive carp. Closure debates. One of America’s vital transportation systems is facing critical conditions on many fronts.

The inland waterways provide 38 states direct access to the most efficient, environmentally-friendly and safest mode of transportation. More than 550 million tons of cargo travel by barge on the 12,000 miles of inland rivers each year. Recent events highlight the fragility of this unsung logistics hero and further emphasize the need for long-term strategies that will allow the U.S. waterways to keep the economy moving in the right direction.

Mother Nature vs. Father TimeOn April 18, the Dale H. Heller towboat was pushing 14 barges

along the Illinois River with some cargoes loaded at the Port of Indiana-Burns Harbor. Torrential rains had caused flood waters to reach historic levels at Marseilles, Ill., roughly 75 miles southwest from Chicago. While approaching the Marseilles lock canal, the towboat lost control in the swift current and seven barges broke free from the tow striking the Marseilles Dam. Four barges partially submerged as all seven were pushed against the 80-year-old structure.

The dam held, but river traffic was shut down for approximately 14 days.

“Two of the barges involved with this tow were from ArcelorMittal,” said Rick Heimann, port director at the Port of Indiana-Burns Harbor. “Many of our port companies had barges that were delayed en route. Had the closures lasted longer, companies may have started to cancel barges in favor of other transportation modes.”

After four days of flooding, the water receded and it was determined that out of the dam’s eight gates, two were broken from the incident and an additional three were inoperable due to the location of the barges against the dam. The lock, located two miles downstream from the dam, only sustained minor damage.

Had the damage been more severe, barge shipments through this area could have been shut down for months, which would have caused major problems for businesses on both sides of the lock. In the 2012 closure of a Mississippi River lock near St. Louis, the economic impact was estimated at $2.8 million per day.

Recent events highlight challenges for vital transportation system

The U.S. Inland Waterway System spans 12,000 miles and connects to the Gulf of Mexico in New Orleans. Indiana’s ports and businesses depend on access to these rivers to move commerce, but recent events in Illinois and Minnesota have caused critical conditions on this important transportation system.



Criticalconditionsoninlandwaterways

According to Allan Marshall, corporate communications with the U.S. Army Corps of Engineers Rock Island District, temporary repairs to the dam are underway. A dike was built using 42,000 tons of rock to help reduce river flows and facilitate repairs.

“The repairs are going to be ongoing for a while,” Marshall said. “The longer plan for permanent repairs will take a couple of years.”

An investigation is currently underway and a public announcement will be made with the findings.

“We’ll know more about this specific incident when the investigation goes through the whole process – what exactly happened and what factors came into play, whether nature or human,” said Haraf.

At the other end of weather extremes, droughts can also impact river commerce. A dry winter season in 2011 and 2012 led to the most severe drought conditions in more than 50 years. Mississippi River navigation was delayed due to low waters south of St. Louis and barges carried less cargo due to shallow drafts.

“Mother nature is not to be controlled,” Marshall said.The ASCE graded the Inland Waterways a D- in its 2013 Report

Card for America’s Infrastructure, noting the age of most locks and the number of service interruptions throughout the system. The ASCE made several recommendations including establishing a national multimodal freight strategy, increasing overall spending on the inland waterways, prioritizing financing for key projects, and considering risk and economic return in project evaluations.

The Inland Waterways Trust Fund finances half the cost of waterway infrastructure maintenance and construction, but the balance has steadily declined from an all-time high in 2002. The fund is supported by a fuel tax of 20 cents per gallon which is paid by barge and towing operators. To keep projects funded, the barge industry supports increasing the tax to 29 cents because of the pressing need for infrastructure improvements.

The American Society of Civil Engineers (ASCE) found in its 2013 Failure to Act report that merely keeping waterborne infrastructure funding at current levels would ultimately result in hefty losses by 2020: $700 billion in national GDP, $1.3 trillion in business sales, $270 billion in export value and 738,000 fewer jobs. By 2040, the numbers skyrocket: a $4 trillion hit to the GDP, $7.8 trillion of lost sales, $2 trillion in fewer exports and 1.4 million people out of work.

After the Marseilles accident, a unified command comprised of the U.S. Coast Guard, U.S. Army Corps of Engineers and Ingram Barge Co. quickly descended upon a nearby hotel conference room to hash out a game plan, according to Alan Haraf, chief public affairs specialist with the U.S. Coast Guard, 9th District. Ingram focused on how to refloat the barges. The Corps concentrated on the dam, evaluating damage and maintaining river flow. The Coast Guard managed river navigation, establishing safety zones around the recovery operations and keeping vessels moving through the area.

The U.S. Army Corps of Engineers recently completed a rock dike near the Marseilles Dam to facilitate repairs after barges came to rest against the dam on April 18. Photo courtesy of the U.S. Army Corps of Engineers (above) and U.S. Coast Guard (Page 8).



Small Lock Raises Big QuestionsIn Minneapolis, a different navigational obstacle has presented

itself: public opinion. Government officials have proposed permanently closing a lock because they don’t believe there are significant benefits from continuing river shipments in the area. This issue poses several questions: •Whatcriteriashouldbeconsideredforclosinglocks? •Whatprecedentdoesthissetforotherlocks? •Whatroleshouldlocalauthoritiesplayinalteringmulti-state transportationsystems? •Howwillthisaffectbusinessesthroughouttheriversystem? •Whatimpactswillthishaveonhighwaycongestion? •Whatarethelong-termeffectsonthenation’stransportation systemandfutureeconomicdevelopment?

The City of Minneapolis sprouted from the river system when Fort Snelling was established in 1819 at the confluence of the Mississippi and Minnesota Rivers, and soldiers began using the falls for waterpower.

The section of river that flows through the city’s downtown was once home to the only natural waterfall on the upper Mississippi, the Falls of St. Anthony. Once dubbed “Mill City,” due to the flour mills that sprung up along the river for access to water power, the city’s commerce necessitated locks to maneuver around the falls.

A series of three locks - Upper St. Anthony Falls Lock, Lower St. Anthony Falls Lock and Dam, and Lock and Dam 1 - were put into operation between 1932 and 1963. One of these, the Upper St. Anthony Falls Lock, is at risk for closure.

“Close one lock, you essentially close all three,” explained Russ Snyder, project manager at the St. Paul District of the U.S. Army Corps of Engineers.

No terminals exist in the pools between the locks, so any cargo that moves through the locks goes through the entire series of three.

Newspapers reported public efforts to close the locks as far back as the early 2000s, when a small number of environmentalists called for reverting the river and falls back to their natural state. According

to Snyder, some proposals to restore the limestone falls are unlikely to be feasible because much of the manmade infrastructure is holding the waterway together and protecting against erosion. Snyder said actions by the Corps of Engineers prevented a total collapse of the limestone-capped falls in the late 1800s.

Three terminals use the locks commercially – two private companies and one terminal owned by the city of Minneapolis. City leaders support the lock closure and plan on closing its terminal to redevelop the 48-acre property and nearly mile-long section of riverfront into a business park and recreational space. Minnesota senators have cosponsored the Upper Mississippi Conservation and River Protection Act calling for a feasibility study for closing the lock, and half of

the state’s congressmen cosponsored the related bill in the House. Minnesota Gov. Mark Dayton and the state’s Department of Natural Resources are also supportive of closing the lock. However, not everyone shares that position.

“If the locks closed, we would have to use trucks,” said Mark Duncan, plant manager at Aggregate Industries, one of the two private companies that ships barges through the locks. “It would put an awful lot of trucks on the road every day.”

Aggregate Industries ships a combination of sand and gravel used in construction from its Minnesota mine to the riverside facility.

A 2012 economic impact study commissioned by the Metropolitan Council of the Twin Cities found that closing the Upper St. Anthony lock would result in an increase of 21,316 additional trucks on the road and the permanent loss of 72 jobs. The study also estimates moving aggregate by truck would raise transportation costs by $5 to $7 per ton, ultimately increasing the cost of concrete in Minneapolis by 9 percent.

According to maritime industry standards, one barge can haul 70 truckloads of cargo, and one towboat with a standard 15-barge tow has the same capacity as 1,050 truckloads.

Closure of Minneapolis’ Upper St. Anthony Falls Lock and Dam is currently being debated by public officials. Photo courtesy of the U.S. Army Corps of Engineers.

One inland waterway barge can move the same amount of cargo as 70 trucks. A towboat with 15 barges can move the equivalent of 1,050 truckloads. Photo courtesy of American Commercial Lines.



is present, let alone one capable of reproducing. The reproductive population in the Mississippi River exists south of the state, in Iowa. Snyder said the falls were once a natural barrier to fish migration, and now the concern is the locks could potentially allow fish through.

“Locks are important transportation connections that were not built to control the movement of fish, organisms or invasive species,” said Heimann, whose port depends on barge shipments through the Chicago locks for 30 percent of its shipments. “Various types of fish barriers have been extremely successful at controlling the movement of Asian carp around working locks, and additional control methods and tactics are currently being developed.”

Bright Future for Waterways Despite all the challenges facing shipping interests on the inland

river system, the industry appears to be optimistic about the future.In Jeffersonville, Ind., the largest inland shipyard in the U.S. - Jeff

Boat - is currently ramping up barge building operations to fill orders placed through mid-2015. To meet demand the company is adding 110 jobs. Kim Durbin, manager of corporate communications with the company, said demand for liquid transportation on the inland waterways is driving the production boom.

“Looking into the future, we believe that expanding our nation’s use of maritime transportation will provide significant economic, social and environmental solutions to many problems facing our region, much the same way it has in Europe and other more congested areas of the world,” the Ports of Indiana’s Cooper said. “As you know, we cannot just keep adding lanes to our highways, but our waterways do have significant capacity for future growth.”

As the nation struggles to recover from a major economic recession and freight shipments slowly build toward pre-recession levels, many industry insiders believe talk of underfunding or closing any segments of the nation’s waterways network would be short-sighted when other transportation modes are facing serious constraints, including truck driver shortages, highway and rail congestion, funding shortages for new infrastructure and air emission restrictions.

“For hundreds of years, this country’s maritime highways have provided critical shipping connections for goods and materials, employing tens of thousands of Americans who work in businesses that rely on marine transportation,” Cooper said. “These same waterways possess great potential to provide even greater contributions by solving major transportation congestion dilemmas that are facing this nation in the not-so-distant future. Now is the time to make sure our waterways are ready for that challenge so our economy can remain competitive in a global marketplace.”

The U.S. Army Corps of Engineers controls the navigation of lock operations. Action for a permanent lock closure must stem from Congress.

“Because this issue relates to an entire federal transportation system, we are concerned that any lock closure must be evaluated beyond local perspectives to clearly determine its impacts on the national system,” said Rich Cooper, CEO of the Ports of Indiana. “The strength of waterborne shipping is that it can move specialized cargoes with greater efficiency, less fuel and fewer emissions than other transportation modes.”

Cooper says a wide range of factors must be analyzed before lock closures should be considered since even low-use waterways play a pivotal role in the national transportation system.

“Waterways handle critical cargoes that fit on the water better than anywhere else,” Cooper explained. “Even low-use channels provide vital contingency options for supporting other transportation modes during emergencies or fluctuations in market conditions, and as redundancies to major waterway channels with aging infrastructure.”

The Water Resources Development Act of 2013, which passed the Senate in May, includes Sec. 5021, Upper Mississippi River Protection. The act states the Upper St. Anthony Fall Lock and Dam would close if the five-year average of cargo shipments through the locks is less than 1.5 million tons. As of press time, the House had taken no action on the Water Resources Development Act.

“The tonnage figure of 1.5 million is more than we currently handle and have averaged over the past five years,” said Snyder, who has worked with the St. Paul district for 32 years.

In 2012, 810,000 tons of cargo moved through the locks, which is slightly higher than the five-year average of 773,000 tons. Since a peak of 3 million tons in 1976, the amount of cargo moving through the locks has trended downward, with 2007 as the first year it was less than 1 million tons. Future volume is estimated to be between 500,000 and 1 million tons.

Mark Biel, chairman of UnLock Our Jobs, said industry concern is high because the closure is tied to tonnage requirements.

“Using tonnage as the barometer for closures does not take other factors into consideration, such as recreational vessels and national significance of waterways,” Biel said. “Because of this precedent, one could make the same argument for the Chicago Lock, despite handling more recreational vessels; it handles less cargo than the O’Brien Lock in the Chicago Area Waterway System.”

Much of the debate about closing locks has been driven by the threat of Asian carp migrating into an area and wreaking havoc on native environments.

According to Snyder, individual big head, silver and grass carp have been captured in Minnesota waters, but no substantial population

Jeff Boat, which operates the nation’s largest inland shipyard in Jeffersonville, Ind., is adding 110 jobs to meet building demand. Photo courtesy of the American Commercial Lines.



PORTAGE, Ind. – It’s not often you encounter “critter pickers” aboard a marine vessel, but then again the W.G. Jackson is not an ordinary boat.

Instructor Shirley McIntire asked for “critter pickers” during the boat’s recent educational cruise at the Port of Indiana-Burns Harbor.

Two camp counselors from the Dunes Learning Center in Chesterton, Ind., eagerly volunteered, and after a small Ponar dredge dumped a muddy pile onto the deck, the young women dug in and began to sift through the gray sediment in search of any signs of life.

The Port of Indiana-Burns Harbor welcomed this unique research vessel for free public cruises and an open house in June. The visit was coordinated by the Indiana Department of Environmental Management with funding from an Environmental Protection Agency Grant for water quality outreach through the Great Lakes Restoration Initiative.

The W.G. Jackson vessel is part of Grand Valley State University’s Annis Water Resources Institute and houses an onboard lab for adults and children ages 10 and up to conduct hands-on science experiments. Guests work with the ship’s staff, made up mostly of retired educators, during a 90-minute cruise to learn how to monitor water quality, gather water samples and collect data on pH, oxygen levels and microscopic organisms.

The visit was part of the W.G. Jackson’s annual summer time “Making Lake Michigan Great” tour, which has brought the vessel to 33 ports of call on the lake since 1998. This was the vessel’s first visit to the Port of Indiana-Burns Harbor since 2001.

The W.G. Jackson’s home port is at the university’s Lake Michigan Center in Muskegon, Mich. Since its launch in 1996, the W.G. Jackson has hosted more than 2,700 events, reaching over 65,000 visitors.

According to Janet Vail, Ph.D., who manages the institute’s outreach and education programs, the university frequently has incoming students that were inspired by a childhood visit to the ship.

Onboard the vessel, visitors collected samples of water, sediment and plankton from both within the port boundaries and out on Lake Michigan. They then moved to the onboard lab to test the samples for pH, conductivity (ability to conduct electricity), turbidity (how cloudy the water is) and other water quality data. At the end of the trip, guests looked at their findings to determine the biological productivity of the lake. Vail explained that parts of Lake Michigan are “oligotrophic,” which means low biomass and nutrient levels with high oxygen concentration and transparency. This results in a lake with low algae counts, clear waters and high drinking-water quality. Oligotrophic lakes are typically deep and found in cold areas, which makes them perfect homes for a variety of fish species.

Andthosecritterpickers?Well,thecatchofthedaywasalonebloodworm and pieces of shell. According to McIntire, bloodworms – excellent fish food – are typically found in “biologically productive” lakes, or lakes capable of sustaining life.

For more information on the W.G. Jackson and the Annis Water Resources Institute, visit www.gvsu.edu/wri.

Floating laboratory hosts educational cruises at port

Column by

Liz FolkertsCommunications Specialist

Contact Info:(317) 232-9205

[email protected]

PORT REPORT - BURNS HARBOR

PORT REPORT

Water qualityThe Port of Indiana-Burns Harbor hosted the W.G. Jackson on a foggy June day. The research vessel educated guests on water quality monitoring techniques and uses .

W.G. Jackson deckhand Bob Marx helps visitors deploy water sampling equipment to demonstrate how researchers study levels of oxygen, pH and conductivity in Lake Michigan.



Evansville Western adds interchange with Norfolk Southernevolves, the amount of rail shipments moving in unit trains will continue to increase. Because of EVWR’s continued investments, the railway, its customers and the Port of Indiana-Mount Vernon are well-positioned looking forward.

EVWR’s new connection makes the port even more marketable for industrial development by providing customers with more flexibility and rail interchange options.

Rail plays a vital part in our port’s logistic operations that combine with barge and truck. We have over six miles of track within our port complex. Eighty percent of the rail volume at the port is made up of coal, grain and grain products, but ethanol, fertilizer and steel are transported through the port by rail as well. On average, 26,000 railcars move through the port each year. We greatly appreciate the close working relationship we have with Evansville Western, and we are extremely confident that this essential partnership can only add to our mutual growth and success.

For more information on Evansville Western, visit www.evwr.biz.

PORT REPORT - MOUNT VERNON

MOUNT VERNON, Ind. – Evansville Western Railway’s new connection with Norfolk Southern could lead to opportunities for the Port of Indiana-Mount Vernon. The new interchange is a result of $36 million in infrastructure investments that improve the potential for port companies to connect to new markets and industries.

Evansville Western (EVWR) invested the $36 million over the course of about seven years, from its start-up in 2005 through 2012. These investments focused on improving the track’s weight capacity, train speed and, first and foremost, the safety of the railroad.

In order to improve the railroad’s capacities even more, the company will spend approximately $8 million in 2013. These investments focus on accommodating new customers. One of these customer-driven investments included the new connection with Norfolk Southern just east of Mount Vernon, Ill., about 60 miles west of the port.

According to Larry Davis, vice president of sales and marketing at Evansville Western, this project provided for the construction of a new two-mile connection track, which was built in order to move unit trains of coal more quickly and efficiently between the two railroads.

EVWR is now able to interchange unit trains with Norfolk Southern, CSX and BNSF Railway, in addition to less-than-unit train interchanges with BNSF, CSX and Union Pacific Railroad. EVWR is also working with Norfolk Southern to establish an interchange for less-than-unit train traffic.

Davis explained that the recent enhancements of EVWR provide additional options for the company’s customers and expand its service area to attract new business. As the railroad industry

Column by

Phil WilzbacherPort Director

Contact Info:

(812) [email protected]

PORT REPORT

An Evansville Western coal train unloads at Mount Vernon Transfer Terminal.

New interchange increases rail capacity for Evansville Western.On average, 26,000 railcars move through the port each year.

On a neW track



JEFFERSONVILLE, Ind. – Steel Dynamics Inc. (SDI) recently announced a $7.1 million investment in new machinery at its Port of Indiana-Jeffersonville facility.

The facility galvanizes steel produced at the company’s mill in Butler, Ind., and is known for its specialty steels in unusual widths, from 36 to 61 inches, and gauges, from 0.012 to 0.45 inches. It also offers painted steel and steel coated in GALVALUME, an aluminum-zinc blend alloy that offers greater corrosion resistance than zinc-only coatings.

According to SDI Plant Manager Jordan Breiner, the new machinery replaces obsolete equipment and will produce a higher quality product at a faster rate. The new machinery includes high-pressure, high-temperature cleaning equipment with a four-stage rinse, automation systems and more efficient motors, with an expected production increase of 24 percent.

Breiner expects the demand for GALVALUME will grow, since the construction market is likely to recover shortly. The product is frequently used in roofing and sheeting for industrial buildings.

SDI also galvanizes steel from fellow port companies Metals USA and Ohio River Metal Services. The Port of Indiana-Jeffersonville truly is a steel campus – 11 of our port companies provide complementary steel services.

Headquartered in Fort Wayne, Ind., SDI was founded in 1993 and today is one of the largest steel producers in the U.S., with a total estimated steelmaking capacity of 6.4 million tons. The company previously completed a $40 million expansion of its Jeffersonville operation in 2007 and added a warehouse in 2010.

The value of SDI’s new investment in its operations at our port can be measured in more than dollars. SDI is a blue-chip company with a solid reputation for quality and reliability. It recognizes that investing in new equipment of this kind offers major value for its employees, customers and shareholders. The attention paid to quality

and performance is SDI’s greatest competitive advantage. We could not be more proud that SDI calls the port home.

For more information, visit www.steeldynamics.com.

Airgas builds new port facility Steel Dynamics isn’t the only company making facility improvements. Airgas Specialty Products recently invested $1.1 million in a new facility on Maritime Road at the port.

The company produces blends of aqueous ammonia and distributes bulk anhydrous ammonia. The chemicals are used in a variety of industries, including refrigeration and pollution reduction.

Airgas is a leading supplier of industrial ammonia and diesel exhaust fluid, with 27 distribution facilities nationwide.

The new port facility includes a more efficient production process, a highly integrated process-control system and a larger, improved leak detection system.

Airgas Regional Manager Russ Zintak said the company’s decision to locate here was easy because the port is well-operated and the two organizations share similar goals in safety, customer service and providing a consistent, competitive value to customers.

The port infrastructure allows Airgas numerous distribution options to service a wide range of customers, which has been a key factor in its success.

To learn more about Airgas Specialty Products, visit www.airgasspecialtyproducts.com.

PORT REPORT - JEFFERSONVILLE

Steel Dynamics invests $7.1M into galvanizing line

Column by

Scott StewartPort Director

Contact Info:

(812) [email protected]

PORT REPORT

neW machinerySteel Dynamics recently invested $7.1 million into equipment that will increase its production capacity by 24 percent.

Airgas Specialty Products recently built a new $1.1 million facility at the port.



ADS Logistics Roll & Hold Division725 George Nelson DrivePortage, IN 46368219-787-5015Transportation, warehousing,inventory management

Aqua-Land Communications Inc.60 Stagecoach RoadPortage, IN 46368219-762-1541Communications provider ArcelorMittal Burns Harbor250 W. U.S. Highway 12Burns Harbor, IN 46304219-787-2120Steel mill Calumite Co.900 George Nelson DrivePortage, IN 46368219-787-5045Calumite processing Cargill Inc.6640 Ship DrivePortage, IN 46368219-787-9461Grain handling and ag products Carmeuse Lime and Stone165 Steel RoadPortage, IN 46368219-787-9190Limestone processing Central Coil Processing501 George Nelson DrivePortage, IN 46368219-787-5000Steel processing Federal Marine Terminals Inc.415 Salmon DrivePortage, IN 46368219-787-1017Stevedoring Feralloy Midwest Portage6755 Waterway DrivePortage, IN 46368219-787-9698Steel processing Feralloy Processing Co.600 George Nelson DrivePortage, IN 46368219-787-8773Steel processing The Franciscan Alliance6615 S. Boundary DrivePortage, IN 46368219-787-8662 Occupational healthcare facility

Frick Services800 Sun DrivePortage, IN 46368219-787-9475Dry/liquid bulk storage/distribution Great Lakes Towing Co.1800 Terminal Tower,50 Public Sq.Cleveland, OH 44113216-621-4854Tugboat, towing, barge services Indiana Pickling & Processing6650 Nautical DrivePortage, IN 46368219-787-8889Steel pickling

International Longshoremen’sAssociation Local 19696031 Melton RoadU.S. Highway 20Portage, IN 46368219-764-9715Maritime union

Agrium U.S. Inc.2501 Bluff RoadMount Vernon, IN 47620812-838-9779Fertilizer distribution

Aventine Renewable Energy7201 Port RoadMount Vernon, IN 47620812-838-9840Ethanol production CEMEX/Kosmos Cement3301 Port East-West Road 570Mount Vernon, IN 47620812-838-3465Cement distribution CIMBAR Performance Minerals2700 Bluff RoadMount Vernon, IN 47620812-838-5236Minerals processing Consolidated Grain & Barge Co.Merchandising Division2801 Bluff RoadMount Vernon, IN 47620812-833-3214Grain terminal Consolidated Grain & Barge Co.Soybean Processing DivisionP.O. Box 547Mount Vernon, IN 47620812-833-3214Soybean processing plant Consolidated Terminals &Logistics Co.P.O. Box 547Mount Vernon, IN 47620812-833-3208General cargo stevedoring, rail-to-barge bulk terminal and logistics

Crop Production Services2900 Bluff RoadMount Vernon, IN 47620812-838-4533Retail Fertilizer Distribution Evansville Western Railway724 W. 3rd St.Mount Vernon, IN 47620866-812-3897Full-service railroad Mead Johnson Nutrition/KencoLogistic Services3101 Highway 62 EastMount Vernon, IN 47620812-833-3416Distribution and warehousing Mount Vernon Transfer Terminal3300 Bluff RoadMount Vernon, IN 47620812-838-5532Coal transloading to barge TPG Mount Vernon MarineMount Vernon Barge ServiceP.O. Box 607Mount Vernon, IN 47620812-838-4889Towing, fleeting, barge cleaning/repair, stevedoring Tri-County Agronomics1711 Bluff RoadMount Vernon, IN 47620812-838-1755Liquid fertilizer, pesticide andherbicide distribution

Airgas Specialty Products5133 Maritime RoadJeffersonville, IN 47130812-283-6932Chemical mfg. and distribution

Arctic Minerals5140 Maritime RoadJeffersonville, IN 46130812-283-6616Mineral processing and distribution Chemtrusion Inc.1403 Port RoadJeffersonville, IN 47130812-280-2910Plastic resin processing Consolidated Grain & Barge Co.5130 Port RoadJeffersonville, IN 47130812-283-9500Grain terminal, bulk stevedore,logistical services Consolidated Terminals &Logistics Co.5143 Port RoadJeffersonville, IN 47130812-283-9500General cargo stevedoring and logistics

Cronimet5147 Loop RoadJeffersonville, IN 47130812-284-4448Stainless steel scrap processing Cylicron Engineered Cylinders5171 Maritime RoadJeffersonville, IN 47130812-283-4600Industrial cylinder mfg. FedEx Ground5153 Maritime RoadJeffersonville, IN 47130812-218-0781Parcel distribution logistics FedEx Home1202 Port RoadJeffersonville, IN 47130812-288-2915Parcel distribution

Green Lines Transportation Inc.702 Port RoadJeffersonville, IN 47130812-258-3515Transportation, common carrier Idemitsu LubricantsAmerica Corp.701 Port RoadJeffersonville, IN 47130812-284-3300Lubrication for auto industry

Jeffersonville River Terminal5130 Port RoadJeffersonville, IN 47130812-282-0471Steel galvanizing Kasle Metal Processing5146 Maritime RoadJeffersonville, IN 47130812-280-8800Metal Processing

Kinder Morgan5146 Loop RoadJeffersonville, IN 47130812-282-4938Warehousing, stevedoring, logistics

Legacy Supply Chain Services 1251 Port RoadJeffersonville, IN 47130812-280-5850Distribution and warehousing

Metals USA702 Port RoadJeffersonville, IN 47130812-288-8906Metals processing, distribution Metals USA, Ohio River Metal Services5150 Loop RoadJeffersonville, IN 47130812-282-4770Steel processing and distributor MG Rail5130 Port RoadJeffersonville, IN 47130812-218-1137Rail services Mytex Polymers Inc.1403 Port RoadJeffersonville, IN 47130812-280-2900Plastic resin distribution

OmniSource –A division of Steel Dynamics Inc.5134 Loop RoadJeffersonville, IN 47130812-280-2268Scrap metal processing

Revere Plastic Systems5171 Maritime RoadJeffersonville, IN 47130419-603-2483Plastic injection molding Roll Forming Corp. Indiana1205 N. Access RoadJeffersonville, IN 47130812-284-0650Roll-forming of steelcomponents, structural tubes Steel Dynamics Inc.5134 Loop RoadJeffersonville, IN 47130812-218-1490Steel coils galvanizing Tanco Clark Maritime5144 Utica PikeJeffersonville, IN 47130812-280-7300Liquid storage, handling Valmont Industries Inc.1117 Brown Forman RoadJeffersonville, IN 47130812-284-5241Steel galvanizing

Voss/Clark Industries701 Loop RoadJeffersonville, IN 47130812-283-7700Steel processing and distributor

Walsh/Vinci1302 Port RoadJeffersonville, IN 47130812-202-4077Construction operation center for East End Crossing

DIRECTORYPorts of Indiana-Central Office150 W. Market St., Ste 100, Indianapolis, IN 46204(317) 232-9200 / fx (317) 232-0137 [email protected]

Listed below are companies with facilities and services at Indiana’s three portsPort of Indiana Jeffersonville1402 Port Road

Jeffersonville, IN 47130812-283-9662

Port of IndianaBurns Harbor

6625 S. Boundary Drive Portage, IN 46368

219-787-8636

Port of Indiana Mount Vernon

2751 Bluff RoadMount Vernon, IN 46720

812-838-4382

Lakes and Rivers Transfer4600 E. 15th Ave.Gary, IN 46403219-787-9280Bulk stevedoring, trucking Leeco Steel1000 E. Boundary RoadPortage, IN 46368800-621-4366Steel plate service center Levy Co.1000 E. Boundary RoadPortage, IN 46368219-787-8666Aggregate processing

Metro International Trade Services LLC345 Salmon DrivePortage, IN 46368219-787-8690Metals distribution and storage Mid-Continent Coal & Coke Co.915 W. 175th St.Homewood, IL 60430708-798-1110Coal, coke and petroleum coke processor

NLMK Indiana6500 S. Boundary DrivePortage, IN 46368219-787-8200Hot-rolled steel processing

Phoenix Services1190 E. Loop Road Portage, IN 46368219-787-0010Aggregate producer/steel mill services P.I. & I. Motor Express1005 Sun DrivePortage, IN 46368219-850-1274Flat bed trucking Precision Strip Inc.6720 Waterway DrivePortage, IN 46368219-787-1602Steel coil processing

Ratner Steel Supply655 George Nelson DrivePortage, IN 46368219-787-6700Steel producer SMS Mill Services6735 Waterway DrivePortage, IN 46368219-787-1020Scrap bailing operation Steel Warehouse Portage6780 Waterway DrivePortage, IN 46368219-787-8887Steel service center

Tanco Terminals Inc.400 E. Boundary DrivePortage, IN 46368219-787-8159Liquid storage, handling Tube City IMS Division by NLMK Indiana6500 S. Boundary DrivePortage, IN 46368219-787-0004Transportation United States Steel Corp.U.S. Highway 12Portage, IN 46368219-762-3131Steel mill



PORTS OF INDIANA 150 W. Market St., Ste. 100 Indianapolis, IN 46204


Portside Magazine - Summer 2013

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