2012 Position Paper

Construction of a New Great Lakes Heavy Icebreaker

GOAL: Seek legislation in the 112th Congress authorizing construction of a second Great Lakes heavy icebreaker.

BACKGROUND:Five of the U.S. Coast Guard's eight Great Lakes icebreakers are rapidly nearing the end of their useful lives. Construction of a twin to the Mackinaw, the new heavy icebreaker launched in 2006, will immediately re-employ 150 laid-off shipyard workers and ensure Great Lakes shipping can continue during the long ice season. In years with heavy ice cover, U.S.-flag lakers have suffered more than $1.3 million in damages to their hulls because the U.S. Coast Guard did not have enough assets available to keep the shipping lanes open.

Ice begins to form on the Great Lakes in early December and stays well into April. In fact, a harsh winter once kept the U.S. Coast Guard breaking ice in the St. Marys River until May 18.

Cargos that move during the ice season include iron ore for steel production, coal for power generation, and limestone and cement for the construction industry. During the 2007/2008 ice season (December 16 - April 15), the last before the recession hit, shipments of iron ore, coal, and limestone approached 20 million tons, or 15 percent of the annual total for the Lakes that year. U.S.-flag lakers hauled three-fourths of those tons. Even with the economy still fighting to right itself, cargo movement during the 2010/2011 ice season topped 11 million tons.

Shipping must continue during the ice season for a number of reasons. First and foremost, the companies that rely on Great Lakes shipping to deliver their raw materials must keep stockpiling costs to the bare minimum. Also, during periods of peak demand, customers are using virtually all the product as it is mined and shipped ("current production" in industry terms). There is little excess capacity at the mines and quarries, so production cannot be ramped up significantly during the summer. The Great Lakes fleet does not have reserve capacity and cannot deliver customers' annual requirements unless able to operate in ice.

The U.S. Coast Guard's Great Lakes icebreaking fleet is rapidly aging and unable to reliably perform its mission. While the new Mackinaw dates from 2006, five other vessels were built in the 1970s. Despite the crews' best efforts, breakdowns are not uncommon. And since these vessels are rather old, it is not always easy to get replacement parts. Two other vessels built earlier this decade were not designed for icebreaking and experience difficulty in heavy ice. The Great Lakes shipping industry needs reliable Coast Guard icebreakers to meet the needs of commerce.

A second heavy icebreaker is also critically needed to offset the downsizing of Canada's icebreaking fleet on the Lakes. Whereas Canada once had seven icebreakers stationed on the Lakes, it now has but two. It is not easy to understand this decision. Canadian-flag vessels operate in ice, but are assisted mostly by U.S. icebreakers.

Reliable icebreaking also benefits shipping through the St. Lawrence Seaway. Even though the Seaway closes in late December, ocean-going vessels need to know icebreaking assets are reliable, otherwise they will not come to the Lakes for those last cargos. The risk of being trapped on the Lakes over the winter is too great.

BENEFITS: Once a new Mackinaw is authorized and funded, construction can begin immediately. The new Mackinaw has proven quite effective. There is no need to make significant modifications to the design or specifications. The project would immediately re-employ 150 shipyard workers. Too, the Great Lakes region is home to 50 percent of the nation's steelmaking capacity, an industry that generates roughly 1 million jobs and needs iron delivered during periods of ice cover. Utilities in the U.S. and Canada also require significant amounts of coal during the ice season.