Great Lakes Maritime Task Force Newsletter

June

2008

In This Issue

Ballast Legislation Advances

Testimony on Dredging Crisis

Seaway Begins 50th Season

Great Lakes Maritime Task Force 

Eighty-three shippers, carriers, port authorities, shipyards, vessel pilots, longshore labor, shipboard unions and others are currently members of the Great Lakes Maritime Task Force, an organization devoted to promoting all aspects of the Great Lakes shipping industry.

 

 

Congresswoman Stephanie Tubbs Jones (D-OH, second from left) accepts her Great Lakes Legislator of the Year award from GLMTF.  Joining the Congresswoman were (from left) Mark Barker, Interlake Steamship, Pat O'Hern (Bay Shipbuilding Company, Congresswoman Marcy Kaptur (D-OH), and Dan Smith, American Maritime Officers. 

 

GLMTF Annual Washington Briefing Focuses on Dredging

 

The 13th Annual Informational Briefing for the Great Lakes Delegation was held on April 2 with five members of Congress in attendance including Stephanie Tubbs Jones (D-OH), Jim Oberstar (D-MN), Marcy Kaptur (D-OH), Vern Ehlers (R-MI) and Dennis Kucinich (D-OH).  


Stephanie Tubbs Jones
The Task Force recognized Congresswoman Stephanie Tubbs Jones as the "Great Lakes Legislator of the Year" and applauded her efforts to advance legislation providing a waiver of the harbor maintenance tax for Great Lakes short sea shipping. 


Keynote address
Daniel J. Cornillie, manager of marine and raw material logistics for ArcelorMittal USA at Indiana Harbor, discussed the impacts of the dredging crisis on his company in his keynote address.
 
Cornillie said the lack of adequate dredging means that it takes a vessel six trips to deliver what it did in five trips 20 years ago. He said the constraint is the draft available and the"culprit is deferred dredging in the context of low lake levels". This is impacting the North American steel industry.  Cornillie explained that it takes 26 million tons a year of Lake delivered materials to sustain ArcelorMittal's production and jobs at its mills along the Great Lakes and without Great Lakes shipping the mills would not be located in the Region. 
 

 

Legislative Update

 

Ballast Legislation Advances

  

On April 24, the U.S. House of Representatives passed H.R. 2830, the Coast Guard Authorization Act of 2008.  Title V of the legislation establishes a comprehensive new program within the U.S. Coast Guard to regulate the ballast water discharges of commercial vessels visiting U.S. ports.
 
The legislation establishes ballast water quality standards and would require all ocean-going vessel operators to install environmental technology to meet those standards. The existing U.S. Laker fleet is exempted from ballast water exchange and ballast water treatment requirements. 

  
While the bill does not directly exempt Canadian Lakers, it allows the Coast Guard to conduct a rulemaking to determine if the Canadian Laker trade poses a threat of introducing invasive species.  If the rulemaking determines that such vessels do not pose a threat, then the Coast Guard may exempt them from the ballast exchange and treatment requirements of the bill.
 
The bill sets a schedule of deadlines for ballast water treatment system installation:
 
At the ship's first dry docking after January 1, 2009, a treatment system that meets the IMO standard must be installed.
 
At the ship's first dry docking after January 1, 2012 - but no later than January 1, 2014 - a treatment system that meets the new U.S. standard (as defined in the bill) must be installed.
 
Any installed treatment system is "grandfathered" for 10 years.  If adequate treatment system technologies do not exist, the Coast Guard is to require vessel operators to install the "best available technology."
 
Vessel operators may only install "approved" ballast water treatment systems.  The Coast Guard is directed to establish a process for approving ballast water treatment systems.
 
The bill clarifies that if enacted, it will be the sole federal statute governing the regulation of ships' ballast water (i.e.: the U.S. Clean Water Act will not govern ballast discharges).
Generally, the bill pre-empts any state law that is inconsistent.  State laws that existed as of January 1, 2007 (i.e.: Michigan and California) will not be pre-empted until January 1, 2012.
 
While passage of the House ballast water legislation is encouraging, similar legislation is still stalled in the U.S. Senate.
 

Short Sea Shipping Provision Considered 


Legislation to provide a limited waiver of the U.S. Harbor Maintenance Tax (HMT) for Great Lakes short sea shipping services was briefly considered by the U.S. Senate during the first week of May.  The HMT waiver language was included in H.R. 2881, legislation reauthorizing the programs of the Federal Aviation Administration.  Unfortunately, after four days of debate, the bill was pulled from the Senate floor by Majority Leader, Harry Reid (D-NV) due to controversy over other provisions.
 
During Senate debate on the FAA bill, Senator Charles Schumer (D-NY) announced his intension to amend the Great Lakes HMT language in order to expand its scope to include all U.S. coastal areas.  The Schumer amendment was cosponsored by Senators Hillary Clinton (D-NY), Frank Lautenberg (D-NJ), Robert Menendez (D-NJ), Marie Cantwell (D-WA), Patty Murray (D-WA), and Gordon Smith (R-OR).  Although the Schumer amendment was never formally voted on, it is now apparent that a broader base of support exists for HMT modifications to encourage short sea shipping services.
 
Efforts to advance the HMT waiver language will continue as Congress considers other tax-related legislation later this year.

 

Shipping Interests Testify on Dredging Crisis

 

On April 30, a national coalition of maritime users and shipping interests told the U.S. House Water Resources and Environment Subcommittee that the dredging crisis is crippling the nation's ports and waterways.  In 2007 the Federal government collected $1.4 billion in Harbor Maintenance Taxes, but spent only $751 million to maintain the nation's deep-draft ports. The Harbor Maintenance Trust Fund currently holds a $4.7 billion surplus.

 

Jim Weakly, President of the Lake Carriers' Association and Second Vice President of GLMTF, told the committee that there is a "dredging crisis" and that "ensuring adequate dredging" would lead to more efficient domestic and international trade.

 

March U.S.-Flag Great Lakes' Cargos Stagnant 

 

March cargos of the U.S.-Flag Great Lakes fleet equaled 2.5 million tons, matching the totals of March 2007.  March is not a full month of navigation with many fleets not underway until the Sault Ste. Marie locks opened March 25.  Rampant lightloading was a major factor in the static total.

 

Coal shipments up

Coal shipments on the Great Lakes totaled 1.6 million net tons, a gain of 27 percent compared to last year. Strong demand for coal loaded at Lake Erie ports and destined for Canada drove the surge.  However, the largest load in March was only 58,944 net tons, on a 1000 foot vessel that could carry nearly 71,000 tons if the Lakes were dredged to project dimensions.

 

Dredging issue

These cargo loads are significantly below rated capacity because of the dredging crisis. When current cargos are compared to the record cargos during the period of high water in 1997, they are up to 17 percent lower.  An estimated 18 million cubic yards of sediment would need to be removed to restore the Great Lakes navigation system to project dimensions at an estimated cost of $230 million.

 

Congress increased the Army Corps of Engineers' FY08 dredging budget for the Lakes to $138 million, which should enable the Corps to remove one million cubic yards of backlog this year.  For FY09, the proposed Administration budget cuts Lakes dredging funds to less than $90 million.

 

 

Canadian Firm to Begin Short Sea Service

 

Great Lakes Feeder Lines has announced a deal for a vessel it plans to use in a short sea service connecting Halifax and Montreal and possibly other ports.  The multipurpose ship, Dutch Runner, has been in Spain undergoing maintenance and repairs before making her way to Canada where she will operate on the St. Lawrence and Great Lakes starting in May.  The ship has both roll-on/roll-off capabilities, is ice classed and has its own cranes.  It has 221 TEUs container capacity.

 

Seaway Marks 50th Navigation Season 

 

When the navigation season began on March 26 at the St. Lambert Lock, it marked the start of the 50th season for the Great Lakes St. Lawrence Seaway system.

 

At opening ceremonies, Richard Corfe, President and CEO of the St. Lawrence Seaway Management Corporation (SLSMC), discussed the recently completed Great Lakes St. Lawrence Seaway Study.  The study identified opportunities to utilize the system's present locks and channels to alleviate congestion in an era of rapidly rising fuel prices. The importance of revitalizing Seaway infrastructure was also noted in the study.

 

Saint Lawrence Seaway Development Corporation Administrator Collister "Terry" Johnson, Jr. discussed the importance of its new asset renewal plan that will provide substantial capital investments if fully approved by Congress.  The requested funds to modernize the U.S. Seaway assets will help follow the SLSMC's lead in renovating the Seaway.

 

The SLSMC, with the support of Transport Canada, will invest $270 million to refurbish the system over the next five years.

 

The system's official 50th anniversary will take place next year.  The Seaway was commissioned in 1959.

 

Compact Passes In Wisconsin
 

Wisconsin lawmakers passed the Great Lakes Water Resources Compact and implementation language by an overwhelming margin in both State houses on May 14. Wisconsin is the fifth state to pass the Compact.  There was only one vote against the Compact in each house. Governor Doyle signed the legislation ratifying the Compact on May 27.

 

The Compact is designed to protect the Great Lakes and to prohibit future diversions of Great Lakes water outside the basin. It ensures that each Great Lakes state will be have the same protections while allowing each state the flexibility to manage its own water use. The Compact was signed by all eight Great Lakes Governors and two Canadian premiers in 2005 following five years of negotiations.

 

Minnesota, Illinois, Indiana and New York have all passed the Compact. The passage is close in Michigan, Ohio and Pennsylvania.  To have the force of law, the Compact must pass in all the Great Lakes states before being ratified by Congress.
 

 

New Briefs

 

New Members Welcomed

Fraser Shipyards in Superior, Wisconsin; AGP Grain, Ltd. in Duluth, Minnesota; and Dock 63 in St. Joseph, Michigan have joined the GLMTF.

 

U.S.-Flag Lakes Fleet at Nearly Full Strength

Seventy-four U.S.-Flag Lakers were in service on May 1.  Only one vessel has yet to sail this year.  On May 1, 2007, the active fleet totaled 70 vessels.

 

Slow Start for Limestone Trade

With harsh winter conditions extending well into March, the Lakes' limestone trade got off to a slow start.  Shipments from U.S. and Canadian ports totaled only 160,000 tons.

 

 

Shipping in the News

 

News articles

Muskegon Chronicle, April 9, Zebra. Quagga mussels called the most harmful exotic species

Sarnia Observer, April 9, Huron, Erie almost tied

WSJM - St Joseph, MI, April 9, Upton Expects Dredging State of Emergency

Standard Freeholder, Cornwall, Ontario, April 10, End of ocean vessels not that bad

Hamilton Spectator, April 12, Great Lakes invaders

Wisconsin State Journal, April 10, Ratify pact to protect Great Lakes

WKYC-TV, Cleveland, April 10, Costa Rica may start shipping to Port of Cleveland

The Plain Dealer, April 13, Water may freshen Northeast Ohio's future

Watertown Daily Times, April 13, Ballast water bill may be voted on next week

Business North, April 14, 50th International Shipping Season Christened

Business North, April 15, Anti-terrorism measurers mean expense, complications for shipping

MLive, April 15, Scientists coming to Bay City to discuss low water levels

WCCO & Duluth News Tribune, April 16, Minnesota to press ballast regulation

SooToday, April 16, Ice jams shipping lanes at Whitefish Bay

GoErie, April 17, Shipping season sets sail with Stellanova

Cheboygan Daily Tribune, April 18, Whitefish Bay ice forces cutter to do overtime

Chesterton Tribune, April 18, First load of imported steel arrives at Port

MLive, April 19, Congressional panel hears of Great Lakes needs

Detroit News, April 21, Internet bonding buoys Great Lakes ship lanes

Green Bay Press Gazette, April 22, Dredging pushed on Great Lakes

Detroit Free Press, April 23, Bush threatens to veto rules on ships' ballast water

Oshkosh Northwestern, April 22, Bay dredging to help Port of Green Bay

Duluth News Tribune, April 22, Judge orders PCA to regulate ballast water

The Nature Conservancy, April 24, The Nature Conservancy Urges House to Pass Ballast Legislation

Milwaukee Journal Sentinel, April 24, Final interchange girder is in place

Milwaukee Journal Sentinel, April 25, House passes bill to treat ballast water on ships

MLive, April 28, How low will lake levels go?

Port Huron Times Herald, April 28, Scientists wade into water level worries

Windsor Star, April 30, 'Dithering' to blame for Great Lakes invaders

Toledo Blade, April 30, Ohio's Fisher urges OK of Great Lakes Compact

The Chronicle Herald, April 30, Cleveland deal may have positive port spin-offs for Halifax

Duluth News Tribune, May 1, Local conservation groups sue feds over ballast regulations

Reuters, May 2, Rain and snow spell relief on Great Lakes

Toledo Blade, May 4, City could benefit if shipping project sails in Nova Scotia

Windsor Star, May 5, Great Lakes: recognizing the resource

Mlive.com, May 7, Ballast water regulation may get more stringent

DetNews.com, May 7, Pests may cost Great Lakes shippers

Detroit News, May 8, McCain: No Great Lakes water diversion

The Plain Dealer, May 10, Cleveland port hears pitch on Canadian project's potential

Twin Cities Planet, May 10, Great Lakes enviro battle over invasive species

Milwaukee Journal Sentinel, May 11, A busy world pivots around the port

CBC,Toronto, May 12, Microwaves could nuke aquatic invasive species

Minnesota Public Radio, May 12, New hints for Duluth's harbor rust mystery

Ecolog.com, Toronto, May 16, Canada-US ballast water inspections protect Great Lakes

Mlive.com, May  16, Deeper shipping channel promises healthier ports

Cleveland Scene Weekly, May 16, Moving port will cost $600 million

The Bay City Times, May 17, Michigan can show the need for ballast water treatment

Muskegon Chronicle, May 20, Lake Michigan's water level rises six inches

Petoskey News-Review, May 20, Captain Little steps down from USCG Cutter Mackinaw

Toledo Blade, May 20, Port of Toledo considers 'short-sea' trips; Hartung:Refinery site will spur jobs

Hamilton Spectator, May 21, HMCS Kingston

Toledo Free Press, May 23, Transportation is economic backbone of NW Ohio

Watertown Daily Times, May 25, New rules help stop invasive species

 

Editorials

Traverse City Record Eagle, April 15, Forum: Court ruling could doom boating

Lake County News Chronicle, April 25, Viewpoint: Ballast treatment issues a long time coming

Duluth News Tribune, May 8, Our view: Lake Superior rebounds! But does Congress know?

Detroit Free Press, May 16, Rochelle Riley, Maritime academy seems a sound idea