Highway H2O is a 3,700km marine highway that offers shippers direct access to the commercial, industrial and agricultural heartland of North America. It extends from the Atlantic Ocean to the head of the Great Lakes, in the heart of North America.
Highway H2O is strategically positioned, with access to a market of over 150 million people and a vast network of over 40 ports with key intermodal connections
The Great Lakes St. Lawrence Seaway System is serviced by a variety of international and domestic vessels that contribute to the efficiency of the System. These include multi-purpose ocean vessels, tug and barge units, and a specialized lake fleet, of which many ships are equipped with self-unloading devices.
Virtually every commodity imaginable moves on Highway H2O. Annual commerce exceeds 200mt (million net tonnes),
and there is still ample room for growth. Some commodities are dominant:
- iron ore for the steel industry;
- coal for power generation and steel production;
- limestone for construction and steel industries;
- grain for overseas markets;
- general cargo, such as iron and steel products and heavy machinery; and
- cement, salt and stone aggregates for agriculture and industry.
Short sea shipping is gaining momentum and Highway H2O delivers new supply chain solutions.
Highway H2O is an alliance of transportation stakeholders in the Great Lakes/Seaway System region, working to develop business and deliver greater awareness about the System locallyand internationally. Working with its members and partners in a stewardship capacity, Highway H2O leverages its collective knowledge about the System to offer innovative services and incentive programmes to ensure the System remains a competitive gateway into the future.
The primary carrier vessels fall into three main groups: the resident Great Lakes bulk carriers or ‘lakers’; ocean ships or ‘salties’; and tug-propelled barges. US and Canadian lakers move cargo among Great Lakes ports, with both nations’ laws reserving domestic commerce to their own flag carriers. Salties flying the flags of other nations connect the Lakes with all parts of the world.
To realize the magnitude of this commerce, consider the impact of some typical cargoes: one 1,000-foot-long Great Lakes vessel carries enough iron ore to operate a giant steel mill for more than four days. A similar ‘super laker’ carries enough coal to power Greater Detroit for one day.
A Seaway-size vessel moves enough wheat to make bread for every resident of NewYork City for nearly a month.
For every tonne of cargo, there are scores — often hundreds — of human faces working behind the scenes. On board, there are the mariners themselves, while shore side there are lock operators and longshoremen, vessel agents and freight forwarders, ship chandlers and shipyard workers, stevedores and terminal operators, Coast Guard personnel and port officials, railroad workers and truck drivers — a wide web of service providers.
Opened to navigation in 1959, the St. Lawrence Seaway part of the system has moved more than 2.5 billion metric tonnes of cargo in 50 years, with an estimated value of more than $375 billion. Almost 25% of this cargo travels to and from overseas ports, especially Europe, South America, the Middle East, and Africa.
From Great Lakes/Seaway ports, a multi-modal transportation network fans out across the continent. More than 40 provincial and interstate highways and nearly 30 rail lines link the 15 major ports of the system and 50 regional ports with consumers, products and industries all over North America.
The St. Lawrence Seaway Management Corporation, on behalf of the Government of Canada, and the Saint Lawrence Seaway Development Corporation, on behalf of the United States Government, are dedicated to managing the Seaway channels and locks.
REDUCING CONGESTION ON LANDA single Seaway-sized laker can carry about 25,000 tonnes of cargo. To carry an equivalent amount of cargo, you would need to assemble a fleet of 870 large trucks or 225 rail cars.
Moving more cargo via the marine mode provides the opportunity to reduce the amount of congestion on today’s busy highways and railroads.
MOVING CARGO SAFELYThe marine mode of transportation is the clear winner when it comes to levels of safety. Accident definitions and reporting criteria differ somewhat by mode as well as in the reporting methods employed in Canada and the United States.
However, estimates of standardized frequencies of accidents and their consequences in terms of deaths and injuries are published by the US Bureau of Transportation Statistics (National Transportation Statistics Report), from which it is clear that moving cargo via the marine mode is the safest means available.
MINIMIZING SPILLS,NOISE,AND CONGESTIONQuality of life cannot be defined strictly by the price of goods on a supermarket shelf. It is important to consider what it takes to get the goods to market. These factors include not only energy efficiency, emissions, and safety, but also factors such as spills, noise and congestion that the movement of goods brings about in our day to day lives. ‘Spills’ in this context refers to harmful discharges into the environment occurring as a consequence of freight transportation. Within this definition, we include cargo leakages, accidental or deliberate spills, and discharges of materials used in the transportation process — most prominently fuels or lubricants used by vehicles or vessels.
Noise from transport is commonly held to be a nuisance, particularly by those living near airports, rail marshalling yards, and highways. Noise is difficult to measure in ways which represent the nuisance that it produces. In the absence of any quantitative evidence, it can only be conjectured how noise nuisance differs among the three freight modes. However, in view of the relative proximity of transport operations to residential areas, as well as the nature of the transportation equipment and engines, it is proposed that trucks impose the greatest noise nuisance per tonne-km while vessels impose the least amount of noise nuisance.
Traffic congestion impacts a number of factors, including delays in shipments, increased greenhouse gas emissions, higher air contamination, and increased noise. In the absence of quantified estimates for average traffic conditions in the region bordering the Great Lakes and the St. Lawrence Seaway, only conjecture of qualitative rankings is possible. It is clear from the nature of marine traffic that there are few, if any, delays on the water.
GREEN MARINE – AN INDUSTRY FIRSTThe St. Lawrence and Great Lakes marine industry is taking action to strengthen its environmental performance. For the first time in North America, all sectors of the marine industry have united to voluntarily adopt an environmental programme designed to drive a process of continuous improvement along this major maritime corridor.
The programme, entitled, ‘Green Marine’, is being spearheaded by an alliance of the marine industry associations in Canada and the United States: y American Great Lakes Ports Association; y Canadian Shipowners Association; y Chamber of Marine Commerce; y Ontario Marine Transportation Forum; y Shipping Federation of Canada; y St. Lawrence Economic Development Council (SODES); y St. Lawrence Shipoperators; and y United States Great Lakes Shipping Association.
Both Seaway entities have been members of Green Marine community since its inception.
GREEN POWER FROM SEAWAY WATERSEvery avenue is being explored in the Seaway’s quest to exhibit the highest standards in building a sustainable business. One example of this commitment to sustainable development is the construction of three hydroelectric power plants on the Welland Canal adjacent to Locks 1, 2 and 3 by Rankin Renewable Power Inc. Enough energy will be generated by these stations to power nearly 5,000 homes, reducing greenhouse gas emissions by 38,900 tonnes of carbon dioxide per year, the equivalent of taking 8,420 passenger cars off the road.
Dry bulk behind increased shipments at award-winning Toledo-Lucas
The Toledo-Lucas County Port Authority registered strong increases in international cargo shipments during the 2010 navigation season, earning it the prestigious Robert J. Lewis Pacesetter Award from the Saint Lawrence Seaway Development Corporation (SLSDC), an agency of the US Department of Transportation. SLSDC Administrator Terry Johnson presented the award on 28 July to the president and CEO of the Port Authority, Paul Toth, during the summer meeting of the American Great Lakes Ports Association in Toledo.
The port registered nearly 4.8mt (million metric tonnes) of cargo during the 2010 navigation season, over 16% more than in the 2009 season, earning the port its eleventh Pacesetter award.
“This impressive economic performance highlights the importance of marine transportation to Toledo, the Midwest and the nation,” said Administrator Johnson. “As the port continues its facility improvements and modernization projects, I anticipate that strong traffic numbers will be realized this year as well.”
“The reasons for the increase in tonnage include a rebounding economy resulting in more coal, iron ore, and pig iron moving through the Seaway,” said Toth. “Our cargo volumes are currently outpacing the volume from our last several years. We are fully utilizing our new equipment to handle additional cargo, particularly wind components.”
Last year, the Port of Toledo acquired two mobile harbour cranes to replace their existing
World War II-era cranes. The new cranes, which are used to handle bulk and project cargo, are twice as productive and 75% more fuel-efficient. The port has also reconstructed and enhanced on-dock rail at Midwest Terminals allowing for more rail cars to be stored on-site and has installed a new rail branch line at the Toledo Shipyard, providing for an intermodal connection with the Norfolk Southern system.
The Pacesetter Award is presented annually to US Great Lakes Seaway ports that register increases in international cargo tonnage shipped through the Seaway during the navigation season. Originally known simply as the Pacesetter Award, the name change honours long-time Seaway trade analyst Bob Lewis who passed away in 2001.
Port of Thunder Bay: largest outbound port on the Lakes and Seaway System
The Port of Thunder Bay is located at the head of the Great Lakes/St. Lawrence Seaway System on Western Lake Superior. It is Canada’s ‘gateway to the west’ providing access to international markets for Western Canada. The port is the largest outbound port on the Great Lakes/St. Lawrence Seaway System.
GRAINThe Port of Thunder Bay has eight grain terminals with a total storage capacity of 1.2mt (million tonnes); details of the port’s facilities are below:
Facility Storage capacity (Tonnes)
coal for Ontario and international markets, as well as other dry bulk commodities such as potash, urea and various agri-products.
It has a 262-metre berth available for ships, and it is serviced by road and CP Rail, with CN Rail access for all commodities. Valley Camp Inc. is a division of Synfuel Technologies LLC,
and has three cargo handling areas — a free-flowing, dry bulk transfer system, a bulk commodity dock with cranes and a dry bulk handling facility. It accommodates the largest Seaway-sized vessels at its docks, which are 550 metres and 200 metres in length. It handles potash and dry bulk products such as salt and steel. Valley Camp Terminal is currently expanding its paved storage area to accommodate more salt storage. It will now be able to handle in excess of 100,000 tonnes from the previous limit of 60,000 tonnes. This product comes in by self-unloader and goes out by truck for use on the highways in northern Ontario.
GENERAL CARGOKeefer Terminal is a full-service domestic and international freight transport facility. The terminal features dockside rail, heavy lift capabilities, an intermodal yard, storage facilities and laydown areas for staging and storage. It has 750 metres of marine berth, and a dimensional project cargo railway track running within three metres of the dock face. Keefer Terminal is directly serviced by CN and CP railways, and has direct access
Aerial view of Thunder Bay Terminals.
to TransCanada Highway and US highways. The terminal specializes in handling general and project cargo such as heavy lifts, wind turbines, forest products and machinery destined for Western Canada.
WATERFRONT SITE AVAILABLE FOR DEVELOPMENT
A 16-hectare waterfront site is available for development. It has a 61 metre dock, rail access and an operational 173,000-tonne grain elevator is available for grain related to biofuels production or wood pellet storage.
Canada Malting Co. Ltd. 62,800
Cargill Ltd. 176,020
Mission Terminal Inc. 119,672
Parrish & Heimbecker Ltd. 40,000
Richardson International 208,505
Viterra A&B 362,648
Viterra C 231,000
Western Grain By-Products Storage Ltd. 30,000
Wheat, durum, coarse grains, oilseeds, feed grains, peas and other pulse crops as well as various grain by-products are handled annually by the terminal operators.
The port offers the fastest grain ship turnaround time of any western Canadian port, and loading rates at its terminals range from 1,000tph (tonnes per hour) to 3,400tph.
COAL, POTASH AND OTHER DRY BULKS
Thunder Bay Terminals Ltd. provides the link between rail and vessel for the movement of low-sulphur bituminous and lignite coal from mines in British Columbia, Alberta, and Saskatchewan, destined for Ontario Hydro's thermal generating stations.
It also handles metallurgical coal for Ontario and international markets, as well as other dry bulk commodities such as potash, urea and various agri-products.
It has a 262-metre berth available for ships, and it is serviced by road and CP Rail, with CN Rail access for all commodities. Valley Camp Inc. is a division of Synfuel Technologies LLC,
and has three cargo handling areas — a free-flowing, dry bulk transfer system, a bulk commodity dock with cranes and a dry bulk handling facility. It accommodates the largest Seaway-sized vessels at its docks, which are 550 metres and 200 metres in length. It handles potash and dry bulk products such as salt and steel. Valley Camp Terminal is currently expanding its paved storage area to accommodate more salt storage. It will now be able to handle in excess of 100,000 tonnes from the previous limit of 60,000 tonnes. This product comes in by self-unloader and goes out by truck for use on the highways in northern Ontario.
GENERAL CARGOKeefer Terminal is a full-service domestic and international freight transport facility. The terminal features dockside rail, heavy lift capabilities, an intermodal yard, storage facilities and laydown areas for staging and storage. It has 750 metres of marine berth, and a dimensional project cargo railway track running within three metres of the dock face. Keefer Terminal is directly serviced by CN and CP railways, and has direct access
Aerial view of Thunder Bay Terminals.
to TransCanada Highway and US highways. The terminal specializes in handling general and project cargo such as heavy lifts, wind turbines, forest products and machinery destined for Western Canada.
WATERFRONT SITE AVAILABLE FOR DEVELOPMENT
A 16-hectare waterfront site is available for development. It has a 61 metre dock, rail access and an operational 173,000-tonne grain elevator is available for grain related to biofuels production or wood pellet storage.
Port of Sept-I^les: a forerunner on the tides of change
The Port of Sept-I^les is a major ore handling port in Canada. Open year-round, the port is characterized by its deep waters and 10km-wide semi-circular bay. These natural advantages allowed it to become the preferred site for coal transshipment from ship to ship. The port was also used for stability tests of the Petrobas 36 drilling platform and its subsequent loading to a heavy carrier destined for Brazil.
The Port of Sept-I^les is comprised of 13 docks, eight of which belong to it. Each year, nearly 23mt (million tonnes) of merchandise is handled, comprising mainly iron ore, alumina, aluminium, petroleum coke and limestone. Other merchandise also transits through the port, as well as more than 400,000 tonnes of petroleum products.
The Port of Sept-I^les is well-positioned on the national arena, either by the nature and importance of its business activities, or its role of transition zone for different export and import products.
Its privileged location, at the heart of the main maritime routes between North America, Europe and Asia, as well as year round access to the St Lawrence, are at the origin of its rating
amongst the most important Canadian ports and of its traffic of nearly 85% of its merchandise destined for international markets.
The Port of Sept-I^les is located at the forefront of the regional economy, and is a major player in its economic development.
From its development and business diversification standpoint, the port favours the arrival of major industries, attracted by the economic potential of the area. Its contribution consists of offering appropriate infrastructure to current and potential users, as well as promoting the development of strategic projects.
FUTURE GROWTHAccording to the port authority’s Carol Soucy, chairman of the board and Pierre D. Gagnon, chief executive officer, growth at the Port of Sept-I^les is inevitable. “We have geographic advantages of course,” they say,“but geography alone does not explain everything.” In a message in the annual report, they reveal that the port has, in the last year, reported the best
throughput of the last 30 years. They also detail expansion plans for this year, which include the construction of a new world-class deepwater dock.
If anticipated throughput of 32mt is reached in 2011, this will officially make the Port of Sept-I^les the second largest port in Canada.
MAJOR ACHIEVEMENTS IN THE PAST YEARAs noted above, in the past year, the Port of Sept-I^les achieved its highest volume in 30 years. Specifically, there was an increase of 5.2mt (27%). In early July 2010, Consolidated Thompson Iron Mines began its shipments of ore to Asia, resulting in an additional 2.4mt handled at Pointe-Noire terminal. During this period the railcar ferry between Sept-I^les and Matane handled 100,000 tonnes, an increase of 85%. Route 138 saw relief with one fewer truck per hour.
Another major achievement is the massive $60 million invested by the port which, combined with private sector contributions, resulted in an impressive total of $250 million invested in port properties in 2010. This represented an all-time record with investments that put 700 people to work on major sites: Pointe-Noire and La Relance terminals, the Consolidated Thompson mining site, and the cruise ship dock.
TWO EXCELLENCE AWARDSThe Port of Sept-I^les won The St. Lawrence Award from SODES (Socie´te´ de de´veloppement e´conomique du Saint- Laurent), which recognizes maritime industry businesses and entities that succeed in developing the St. Lawrence with respect for its integrity. The award was given for the port’s projects as a whole. The second win was the Transportation Excellence Award given by AQTR (Association que´be´coise du transport et des routes) recognizing brilliant and original initiatives aimed at optimizing transportation in Quebec. The duo of CN and Port of Sept-I^les received the award in 2010 for the innovativeness of the railcar ferry linking Co^te-Nord to Matane, an economical and ecological solution for big industry in the region, based on constructive intermodality.
HIGHLIGHTSThere were many highlights for the Port of Sept-I^les over the last year.
Notable among these are:
- two new rock-solid partnerships: the mining companies Labrador Iron Mines Limited and New Millennium Capital Corp. signed a rate agreement with the Port of Sept-I^les. Future impact: additional +7mt anticipated for the port.
- $5 million contribution for the Pointe-Noire terminal: the federal government’s contribution to the work to optimize the Pointe-Noire terminal will allow the new producer, Consolidated Thompson, to set up operations there.
- a leader in exports to Asia: in July, the first ship transporting iron ore for Consolidated Thompson Iron Mines Ltd left the Port of Sept-I^les with 165,225 metric tonnes. Its destination was China, more specifically Wuhan, where the precious cargo was awaited by its Asian partner Wisco. This is another destination for the port, where more than 85% oftraffic is bound for other countries.
- visit by Prime Minister Stephen Harper: in September, Prime Minister Stephen Harper inaugurated an additional storage silo at La Relance terminal and also announced the second phase in work to boost the terminal’s capacity. Many regional dignitaries and developers were present as Harper inaugurated the new silo, which is part of an initial $30 million project.
- Phase 2 of the project to increase the capacity of La Relance terminal: this represents a $14 million investment. The federal government is contributing up to $7 million or 50% of the costs. This optimization is essential for Aluminerie Alouette to ensure its expansion potential and remain a leader in terms of global competitiveness. The project includes a logistical centre for aluminium management, improvements to docking systems, an increase in electrical capacity, and the construction of a new service building.
Fednav Group brings new green ship to the Great Lakes
Montreal-based Fednav Group, which owns Federal Marine Terminals (FMT), the leading terminal operator at the Port of Hamilton, has invested in three new state-of-the-art vessels to trade on the Great Lakes-Seaway System.
The first of these ships, the Federal Yukina, arrived at Federal Marine Terminals, Hamilton, at the beginning of June. The vessel came from Japan, carrying industrial slag, a material used in steel production. The vessel, which was delayed by the Japanese earthquake and tsunami, travelled to Australia and transited the Panama Canal to then call at New Orleans and Baltimore, before reaching Hamilton. It then loaded cargo in Hamilton destined for Mobile,Alabama.
The new ship was welcomed on June 9 in a special gift- exchange ceremony between Hamilton Port Authority officials and Fednav executives.
The Federal Yukina, built in Japan in 2010, adds capacity to Fednav’s fleet of Seaway-sized bulk carriers that regularly transport cargo from overseas such as steel and specialized cargo into the Great Lakes while shipping US and Canadian grain, along with other bulk material, to foreign markets. The second and third vessels of the series will arrive in the Great Lakes in 2012 and 2013, respectively.
Privately owned Fednav Group is the largest ocean-going user of the St. Lawrence Seaway, with an average of 100 trips each year.
From Paul Pathy, President and co-CEO of Fednav Group:“We’re increasing the capacity of our fleet in the Great Lakes as we believe there are opportunities in the region, and are very positive about the long-term significance of the St. Lawrence Seaway. It remains the most economical and environmentally friendly way to move bulk cargo to and from the North American heartland.”
The Federal Yukina has been built with the latest technology, which brings a number of environmental benefits:
- the vessel is 12% more fuel efficient than Fednav’s previous class of ships and will save 770 tonnes of fuel per year, while preventing the emissions of 2,500 tonnes of carbon dioxide from the atmosphere per year — the equivalent of planting close to 5,000 Canadian trees.
- the Federal Yukina and its sister ships are equipped with Tier II engines, which reduce nitrogen oxide (NOx) emissions that contribute to acid rain formation and global warming. Fednav committed to the installation of these types of engines a full two years before international regulations require it for new ships.
- the design incorporates more powerful ballast pumps and enough space to enable the installation of ballast water treatment equipment. This equipment, which will be installed once the US Coast Guard sets the standard and type approval of equipment for the cold water of the Great Lakes, will further reduce the risk of introducing invasive species. To help facilitate this process, Fednav will be testing a new ballast water treatment system on one of its vessels in the Great Lakes this year.
Pathy explained:“The environment is one of our top priorities when we consider the design of a new vessel. It is
important to us and also to our customers that our vessels are as fuel- efficient as possible. This fuel efficiency, along with new engine technology, significantly reduces air emissions.”
At a shipboard ceremony on June 9, Bruce Wood, president and CEO of the Hamilton Port Authority, presented a commemorative gift to Federal Yukina Captain Sikander Mushtaqali Kazi.
Wood said:“Fednav ships regularly bring vital raw materials to the port, which are used by Hamilton steel manufacturers, along with other commodities, such as gypsum for dry wall manufacturing and fertilizers for agricultural purposes. Federal Marine Terminals has also been a key port tenant since 1992, when it bought the
facility from Seaway Terminals, keeping the Hamilton operations alive for well over 40 years, providing stevedoring and logistics services to domestic Lakers and overseas ships. FMT is the busiest general cargo terminal out of all the Canadian Great Lakes ports. This latest Fednav investment is great news for the port and the overall Great Lakes-Seaway System.”
ABOUT THE FEDNAV GROUPFednav Limited, owned by the Pathy family, is Canada’s largest ocean-going, dry-bulk shipowning and chartering group. Its primary activities are in the transportation of bulk and breakbulk cargoes on a worldwide basis. Headquartered in Montreal, the group has offices in Antwerp, Brisbane, Hamburg, London, Rio de Janeiro, Singapore, and Tokyo, as well as a number of local offices in the US and Canada. The group is also engaged in the servicing of vessels and handling of cargo through its terminals and by its agencies.
New Picadilly potash mine on schedule to double shipments at St John by 2014
otash Corporation of Saskatchewan Inc. (PotashCorp) is the world’s largest fertilizer company by capacity and one of the Port of Saint John’s biggest shippers. The construction of its new potash mine known as the Picadilly
Project, near Sussex, New Brunswick, is expected to more than double potash exports from the Barrack Point Potash Terminal at the port which receives the pink fertilizer product for export as well as de-icing salt.
“We expect to start commissioning the Picadilly mine in 2013,” estimates Stewart Brown, general manager of PCS Potash — NB Division, one of six Canadian PotashCorp facilities in Canada and the only one not found in Saskatchewan. The Picadilly project has an estimated cost of $1.6 billion which includes sinking of two new shafts and development of a new mill site.
Brown, who took his new post in March, has worked in the Canadian mining sector for 35 years. He recently moved to Sussex with his wife Diane and is excited about coming aboard in the home stretch of the expansion project. “The new compaction plant at our Penobsquis site was completed in March and by end of April it was operational allowing us to produce up to 100% of granular product, if required to meet market conditions, which is a significant milestone for the project,” states Brown.
Further to the construction of Picadilly’s two concrete head frames, work continues on two shafts at the site. The production shaft is more the 750 metres deep and should be
completed later this summer. “That will be another major milestone,” says Brown,
who also noted that the project’s service shaft progress was delayed due to grouting needed to secure a fractured zone.“We needed to take the time to ensure integrity by
sealing off water from the shaft. It’s a long term facility and we must tend to any details as we advance the
shaft.” The next phase of mine
development is to tunnel from one shaft to the other.“Crews will work
from that tunnel to open up the ore body over the next-year-and-half,” notes Brown.
NEW MINE NOW BUSTLING WITH MECHANICAL WORKPicadilly, where a potash deposit was discovered while drilling for natural gas in 2002, has also reached the stage where the site is bustling with mechanical work. “Piping is being fitted inside the new mill and pumping equipment and electrical systems are associated with this phase of construction right through 2012,” Brown observes from his office overlooking the hive of activity.
Concurrently, upgrades are underway in the existing Penobsquis mine where a new product dryer will be commissioned this summer. “Potash is wet when it comes out of the process in the mill and needs to be dried, so a new dryer is required to handle our additional production.” he describes. A new centrifuge and precipitator will also be commissioned at the Penobsquis mill this summer.
Over the next year, a number of PotashCorp employees will transition from the Penobsquis site to the Picadilly site a short distance away to prepare for production. “Assembling new mining machines which do the tunneling means plenty of action for mechanics, welders and electricians.”
An earlier construction phase saw a new 30km brine pipeline built from the Penobsquis mine site to the brine pond at PotashCorp’s Cassidy Lake Division. This pipeline not only provides additional brine disposal capacity but has reduced the daily volume of brine hauled by trucks to less than half the 2008 volume.
Brown’s role in New Brunswick is like conducting an orchestra.“Many different types of work need to be done in different places at the right time to phase in the new process equipment for the next two years. We are continuing to hire workers to fill those positions.” He is very pleased that the employees of New Brunswick division achieved 1 million hours without a lost time accident on 8 April, as safe production is a priority for all PotashCorp employees and contractors working on the site.
Brown replaced Mark Fracchia who had been the General Manager at PCS Potash – NB Division for four years. Now based in Saskatoon, Fracchia was recently promoted to the position of Vice President of Safety, Health and Environment and oversees those activities for all PotashCorp operations.
The Picadilly project is major economic boost to the region. On 16 May, New Brunswick Premier David Alward toured the existing underground mine with his guest Nova Scotia Premier Darrel Dexter. At the time,Atlantic Canada’s four premiers and their senior staffers had gathered in Sussex to discuss federal transfer payments and other issues.
When the new mine is in full production, total annual potash and salt shipments through the Port of Saint John are expected to increase from 1mt (million tonnes) per year to roughly 2.5mt per year. “Even this year, we are expected to have strong shipments through the terminal,” adds Brown. “Last year 772,000 tonnes of potash were shipped out of Saint John which was above forecast. “We also shipped 231,000 tonnes of salt so that totaled about a million tonnes through the port during the year.”
CUSTOMERS ARE IN CENTRAL AND SOUTH AMERICAMost of the product is shipped by rail from Sussex to
PotashCorp’s terminal at the Port of Saint John for export. Remaining product is shipped by truck to domestic customers. Increased demand for potash in off-shore countries strategically positions the port’s Barrack Point Terminal as the perfect marine launching pad. Potash can be loaded aboard ships at a rate of 2,000tph (tonnes per hour) from two massive storage sheds at the terminal. Barrack Point also meets all requirements of the Department of Environment’s Certificate of Approval.
“As I mentioned to the premiers when they toured the mine,” relays Brown,“PotashCorp’s primary markets from New Brunswick are Brazil, the Caribbean and the Eastern US. That makes the Port of Saint John a valuable resource to reduce our transportation costs. Our short rail time to the port is an advantage we have over other producers who have longer rail hauls. The port is instrumental in effectively servicing our customers.”
From the Port of Duluth-Superior to the world
The Seaway provides export opportunities for western US coal plus iron ore and grain from North America’s Heartland. And the Port of Duluth-Superior (USA) — strategically located at the western terminus of the Great Lakes St. Lawrence Seaway system — plays a key role in those international trade patterns.
COAL EXPORTS ON THE RISEMidwest Energy Resources Company (MERC) has a major coal transshipment terminal located in the Port of Duluth-Superior. Its Superior Midwest Energy Terminal is fast becoming a vibrant player in northern European markets thanks to marine transportation efficiencies offered by the terminal and by the Seaway.
Partnering with Quebec Stevedoring’s Beauport Sector dock in Quebec City, MERC’s Superior Midwest Energy Terminal has created a seamless supply mechanism for customers across the Atlantic.Together, they offer a ‘one-stop package rate’ for all rail/vessel transport and dock services from coal mines in Wyoming and Montana through Duluth-Superior to the transshipment facility in Quebec en route to final destinations in Europe.
“Midwest Energy Resources has been able to capitalize on the increased demand for US low-sulphur coals in international markets,” said Fred Shusterich, MERC President. “The world wants US coal, but there are capacity issues at US coastal ports. Our mechanism puts us one-third the ocean distance of the Gulf ports to Europe, so we are well positioned to be a strong player in the coal export market.”
Shusterich, whose goal was to handle one export cargo this shipping season, will likely export 200,000 metric tonnes of coal to Europe by year-end. MERC has already moved one Capesize shipload to Spain (five smaller shuttles from Superior to Quebec City via Canadian lakers). Another cargo is on the books for this fall — loading 75,000 metric tonnes into a Panamax vessel for delivery to Rotterdam. And looking ahead, MERC currently has an agreement in principle to move a further 1.5mt (million metric tonnes) of coal in each of the next three years to Rotterdam.
“Continued growth, exploring new markets and responding to changes in the North American energy market provides impetus to expand our service area,” added Shusterich.“To slingshot to 1.5mt in coal exports by end of next year is testimony to the ingenuity of our staff and the flexibility of our terminal and the Seaway. It truly is a global gateway.”
Superior Midwest Energy Terminal (SMET) is owned and operated by Midwest Energy Resources Company (MERC), a wholly owned subsidiary of Detroit Edison. The coal blending and transshipment terminal, with an annual capacity of 25.5mt in Superior,Wisconsin, will continue to serve the domestic needs of Detroit Edison power plants and other industries along North America’s Great Lakes while expanding its international trade patterns.
Iron ore bound for China via inland US port
It is an exciting time for Cliffs Natural Resources, with global demand for high-quality iron ore concentrate on the rise — particularly in China, India and other countries with emerging economies.
That demand is coupled with higher international iron ore prices. As a result, Cliffs can afford to get ore from its mines in Minnesota and Michigan to Quebec City via the Great Lakes St. Lawrence Seaway system. From that Canadian port, oceangoing vessels can transload/transport pellets to steelmakers worldwide.
“It’s a unique venture, with the pellets going to Canada first, then China. The cost of freight is far outweighed by the profit,” said Don Gallagher, Cliffs’ executive vice president and president Global Commercial. “Demand is strong. We are marketing globally, because that’s where the higher demand is.”
Cliffs has indicated that the company will ship 1mt of pellets to China alone this year. The CSL Assiniboine was at BNSF Railway Dock 5 in the Port of Duluth-Superior on 30 March, loading the first shipment of Minnesota iron ore this season bound for China via the Seaway.
Duluth-Superior sees grain export growth
There has been a surge in Seaway grain exports through the Port of Duluth-Superior, the farthest inland port on the Great Lakes St. Lawrence Seaway
America remains the No. 1 exporter of wheat globally, and Midwestern farmers play a prominent role in that story. The Minnesota Association of Wheat Growers’ executive director Dave Torgerson says the Port of Duluth-Superior is a big reason why.
“We are located about as far away from our export customers as any farmers in the United States,” Torgerson said. “But, with the Seaway and the Port of Duluth-Superior, we have a direct water link to markets around the world (in particular, Europe and North Africa), which keeps transportation costs competitive and enables North Dakota and Minnesota farmers to compete globally. The farmers rely on the Seaway to provide that service.”
The largest grain terminal at the Port of Duluth-Superior is operated by CHS, a Fortune 100 farmer-owned cooperative. “In 2010, CHS moved 60 million bushels of spring wheat and durum from Minnesota and North Dakota farmers through Duluth-Superior, and through its entire upper-Midwest origination platform, the equivalent of 1.6mt [million metric tonnes],” says Tim Paurus, CHS vice president of terminal operations.
Ship loading wheat at CHS, the largest grain terminal in the Port of
Duluth-Superior.
He says grain traffic through the region last year was up slightly from 2009, due to the Russian wheat export embargo and a poor Australian crop.
After the Russians announced a ban on grain exports last summer, the Port of Duluth-Superior as a whole experienced a surge in grain shipments — ending the 2010 navigation season at 2.5mt in grain exports — nearly 90% ahead of the previous year. That pattern has continued through the start of this shipping season, as well. Through 30 June 2011, Duluth-Superior’s grain shipments had more than doubled from the same timeframe last year.
Demand may stay strong for the remainder of the year, depending on the quality of Russian wheat being made available for export and harvests across America’s heartland after early spring floods. “While our early grain totals remain up, the full scenario will not unfold until grain harvests are assessed later this summer in Europe, Australia, and North and South America,” noted Adolph Ojard, Duluth Seaway Port Authority Executive Director. “There’s no way to accurately forecast year-end tonnage this far ahead because of fluctuations in currency values, anticipated worldwide harvests, and availability of backhauls along the Seaway. We’ll just have to wait and see if this robust start continues throughout 2011.”
Major bulks buoy the Port of Hamilton
Traditional bulk cargoes continue as the mainstay in Hamilton, affirming the port’s position as a pre-eminent Canadian Great Lakes commercial harbour. An ambitious 2008 strategic plan developed by the Hamilton Port Authority (HPA) targeted $500 million in infrastructure investments and improvements to the port by 2020. At a recent HPA general meeting, directors were thrilled to announce that 2010 saw the port surpass projected development growth. In fact, 47% of investments outlined in the strategic plan are now completed, committed or in negotiation.
Still a prominent steel centre, the port helps feed the steel industry through operations such as LaFarge-Hamilton Slag, an essential part of the logistics chain for steel by-product and bulk raw material. Lafarge expects volumes to increase in 2011 over the previous two years, partially due to infrastructure building in the United States and Canada.The terminal handles pelletized slag.
Grain continues the resurgence experienced in 2010. Between Pier 10’s Parrish and Heimbecker (P&H) terminal and Richardson International Limited, Hamilton’s port is home to two of the most advanced and versatile grain facilities in the Great Lakes. Richardson has experienced one of its most successful 18-month timeframes in its Hamilton history. New capacity has been added at P&H’s new Pier 10 terminal, where twin monolithic domes combine to house 60,000 tonnes of material. Internal conveyor systems within the domes allow for flexibility and the unique ability to handle protein meals, sugar, salt and granular fertilizer, in addition to coarse grains.
Salt shipments have risen substantially in the port, with major suppliers Canadian Salt, Sifto and Cargill all operating out of Hamilton. Given its advantageous geographic location, the port offers a desirable location for regional consolidation of bulks for companies looking to access to markets in southern Ontario and across the American border in Buffalo and Detroit.
The port is home to two major stevedoring operations
who manage a number of bulk movements. Fednav-owned Federal Marine Terminals (FMT) which handles gypsum for nearby Georgia Pacific as well as clear stone, and Great Lakes Stevedoring (GLS), the local office for Quebec Stevedoring Limited which are closely tied to bulk raw material movements at US Steel Canada in Hamilton. Both have a long history in the port and continue to provide expertise in the handling, staging and transfer of many cargoes.
Connecting Hamilton to the Eastern Seaboard through the Seaway System has been achieved through a new short sea shipping service initiated by Hunt’s Transport Limited last season. The service, utilizing the McKeil Marine operated barge, will sail the round trip route a minimum of nine times between Newfoundland and Hamilton throughout the 2011 season. Hunt’s Transport charters the vessel for the eastbound leg and Federated Cement charters the westbound leg, moving their bagged cement from the East coast into Hamilton. New terminals from previously noted Parrish and Heimbecker, as well as McAsphalt Industries and Vopak Terminals, have Hamilton well placed to realize additional dry and liquid bulk cargo volume this year.
Next-generation of CSL self-unloaders will be known as Trillium Class vessels
CSL is embarking on an exciting multi-ship newbuilding programme. The ships — two Lakers for Canada Steamship Lines and three Panamaxes for sister company CSL International (CSLI) — are unique in their design and provide benefits for both customers and communities alike. They will be known as Trillium Class vessels.
ABOUT TRILLIUM CLASSBoth the Canada Steamship Lines and CSL International vessels will feature designs and systems that benefit the environment and customers alike, and will forevermore be known under the CSL trademark Trillium Class.
The trillium is a flower native to North America (it’s the official flower of Ontario and the official wildflower of Ohio) and Asia, including China, where the ships are being built. Its name, originating in Latin, and custom logo, speaks to the flower’s three-petal and three-stalk characteristics.
Symbolically, this lends itself to the three legs of CSL’s sustainability philosophy, and also represents the three advantages the vessels provide, namely in the areas of Energy, Efficiency and the Environment.
TRILLIUM CLASS FEATURESThe Trillium Class vessels will boast technology that will provide them with industry-leading benefits and advantages.
Construction at Chengxi Shipyard has already begun on the the second Laker, bringing to three the number of CSL vessels currently in various stages of construction — two Lakers and one Panamax vessel for CSLI.
“I guess you can say we’ve ratcheted things up a notch with the simultaneous construction of
three vessels,” said Kevin Begley, director of Engineering Projects. “It means more co-ordination on the part of the Newbuilds Team, but we’re up to the task. We have a good project management system, good people and good communication skills. We’re pretty well equipped.”
Maria Danilenko, On-Site Support Manager with CSL’s Newbuilds Team, had the honour of activating the shipyard’s state-of-the-art plasma torch and watching it cut a precise line in the plate for the first vessel, a 35,500-deadweight-tonne Laker for the domestic fleet.
“It was a thrill to press the button that kicked off a project that means so much to our company,” said Danilenko.“I was proud to represent our team.”
While the cutting of the first steel is typically the ceremonial start of a shipbuilding project, work at the yard has been ongoing for months, including settling in the staff, many of who transferred from overseas. Chengxi is located at Jiangyin City on China’s Yangtze River.
“The team is pretty much in place and we’re on schedule,” said Begley. “On projects of this size and scope it’s important to find your rhythm early so that you can remain efficient throughout. We’ve had a good start.”
The newbuilding programme is a major investment for the CSL Group, for both its international and domestic businesses. “The decision is a reflection of the confidence our customers continue to show us in international trades and on the Great Lakes-Seaway,” said CSL Group President and CEO Rod Jones. “It also speaks to our corporate commitments of fleet modernization and sustainability. These ships will be the most advanced, and environmentally friendly, self-unloaders in the trade.”
As with any project of this size, the lead-up involved several years of research and development in new vessel design, working with Deltamarin of Finland, CSL Naval Architect (consultant) Garry Cooke and other CSL staff, and included a bid-selection process with some of the biggest shipbuilders in the world taking part. Chengxi Shipyard of Jiangyin, China, eventually won the contract. “CSL has had a long-term relationship with Chengxi that dates to 2004 and includes the delivery of many of our international forebody vessels from the yard,” said Louis Martel, vice president, of Technical Operations at CSL International. “We’re confident in the experience they have to build quality self-unloaders.
New York’s Port of Ogdensburg offers multi-modal service
The Port of Ogdensburg, New York is the first port of call on the US side of the St. Lawrence Seaway system. Located in Northern New York, the port provides easy access to major markets in Canada and the United States. As a multi-modal terminal, the port can provide access to CSX rail as well as convenient truck access to Ontario and Quebec over the Ogdensburg-Prescott International Bridge.
The Port of Ogdensburg handles roughly 200,000 tonnes of bulk products annually, largely inbound road salt shipments for New York roads. In addition, it handles roughly 15,000 tonnes of agricultural products that is shipped in by rail for distribution to dairy farms and feed dealers in Northern New York State and Canada.
The facility is also equipped for breakbulk and project cargo. For example, the port received 11 inbound vessels of wind turbine components from Denmark in 2008. The turbines were reloaded onto trucks and then shipped on 80 barges to a project on Wolfe Island, Ontario. The marine terminals’ Foreign Trade Zone designation was used for this project, saving the shipper considerable duty expenses, as the product never technically entered the commerce of the United States. Future wind turbine cargo is predicted for 2012 and 2013 for projects in Northern NewYork.
To facilitate the movement of this oversized cargo, the Port of Ogdensburg will be constructing a new port access road during 2011/12, which will provide improved access to state highways. This $2.5 million project is slated to begin in the fall of this year.
Other bulk cargo handled by the port over the years includes: zinc concentrate, marble chips, wollastonite, transportation equipment and agricultural feeds.