Hwy H2O: keeping North American bulk moving

The Great Lakes St. Lawrence Seaway System is a deep draught waterway extending 3,700km (2,340 miles) from the Atlantic Ocean to the head of the Great Lakes, in the heart of North America. The St. Lawrence Seaway portion of the System extends from Montreal to mid-Lake Erie. Ranked as one of the outstanding engineering feats of the twentieth century, the St. Lawrence Seaway includes 13 Canadian and 2 US locks.

A VITAL WATERWAY

The Great Lakes and St. Lawrence River have been major North American trade arteries since long before the US or Canada achieved nationhood. Today, this integrated navigation system serves miners, farmers, factory workers and commercial interests from the western prairies to the eastern seaboard.

Virtually every commodity imaginable moves on the Great Lakes Seaway System.Annual commerce on the System exceeds 200 million net tonnes (180 million metric tonnes), and there is still ample room for growth. Some commodities are dominant:

• viron 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 v
• cement, salt and stone aggregates for agriculture and industry.

• 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 New York City for nearly a month.

For every tonne of cargo, there are scores — often hundreds — of human faces 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 St. Lawrence Seaway, which lift/lower ships 99.4 metres (326 feet); and v one lock at Sault Ste. Marie, Michigan, which lifts/lowers ships 9.2 metres (30 feet). Three distinct vessel-operator groups serve the waterway.

These include American and Canadian domestic carriers transporting cargo between ports within the system, and international ocean-going vessel operators that operate between ports within the system and ports located overseas.

Every year, more than 160 million metric tonnes of raw materials, agricultural commodities and manufactured products are moved on the Great Lakes–St. Lawrence Seaway System. Dominant cargoes include iron ore for steel production, coal for power generation, limestone and cement for construction, and grain for both domestic consumption and export.

This marine highway supports the activities of more than 100 ports and commercial docks located in each of the eight Great Lakes states, and the provinces of Ontario and Quebec. It is also a crucial transportation network for commerce moving between North America and more than 59 overseas markets.

The Port of Thunder Bay is located at the head of the Great Lakes/St. Lawrence Seaway System. A one- way voyage through the Seaway to Thunder Bay takes about five days with ships 228.6 metres in length, 23.8 metres in width with a draught of 8.2 metres being elevated some 180 metres through 16 of the most efficient locks in the world.

SUPERB RESULTS IN MAY AND JUNE

The Port of Thunder Bay is experiencing very high levels of traffic at the moment. In May, it had its strongest month since the 1990s, handling more than 1.5 million tonnes of cargo during the month — the largest tally in any single month since 1998. Grain shipments were particularly strong: over 1.3mt (million tonnes) of grain were exported through the port’s eight grain elevators.

Despite record-breaking ice conditions that set back the port’s opening date by an unprecedented four weeks, the port managed to make-up and even surpass last May’s year-to-date grain volumes. Other cargoes with strong monthly comebacks included coal and dry bulk.

Vessel calls for the month were up sharply over last year and included 26 foreign ‘saltie’ vessels — the most in any single month since 2000. Salties transported a third (33%) of the port’s grain during the month, much higher than the five-year average of 15%.

Overall monthly tonnage for the port surpassed 1mt for the second month in a row, with potash and bulk commodities also seeing increases over 2013 volumes. The last time both May and June shipments were over 1mt was 2001.

Thunder Bay Port Authority expects shipments to remain strong through the summer as Western Canada’s record grain harvest from 2013 continues to move the market.

Lake Carriers’ Association (LCA) represents US-flag vessel operators on the Great Lakes. The Association’s 17 member companies operate 57 US-flag self-propelled vessels and tug/barge units (lakers) ranging in length from 494 to 1,013.5 feet. These vessels can carry more than 115 million tonnes of cargo in a year. Iron ore, limestone and coal are the primary commodities carried by LCA members. Other cargoes include cement, salt, sand and grain. The vast majority of cargoes carried by US-flag lakers move between US ports, in what is commonly referred to as the Jones Act trades.

America can take pride in the US-flag Great Lakes fleet. No other maritime nation has assembled such a modern, productive fleet of self-unloading vessels.The thirteen 1,000-footers flying the US flag on the Lakes are longer than most of the grandest ocean liners.

So technologically advanced are these vessels that they can discharge 70,000 tonnes of iron ore or coal in 10 hours or less without any assistance from shoreside personnel or equipment. The industry’s carbon footprint is the smallest of any of the major transportation modes.

LAKES WATER LEVELS COMING BACK, BUT NOT FULL LOADS

As of 11 July, the rise in Great Lakes water levels has yet to translate into full loads for the US-flag freighters moving iron ore, coal, limestone, cement and other cargoes. Vessels continue to routinely leave port with less than a full load on board.

The largest iron ore cargo moved by a US-flag laker through the Soo Locks in June totalled 69,576 tonnes. The record iron ore cargo for the ‘Head-of-the-Lakes Trade’ is 72,300 tonnes and was carried in 1997, a period of near record-high water levels.

The deepest draught ever recorded for a transit of the Poe Lock is 29’03” in 1986. If a 1,000-foot-long US-flag laker could transit the lock that deep today, the vessel would be carrying 72,727 tonnes.

Vessels in the coal trade continued to depart loading docks with capacity to spare. The largest coal cargo through the Soo Locks totalled 67,992 tonnes, nearly 5% less than the record of 70,903 tonnes.

Vessels in the short-haul trades below the Soo Locks likewise are still unable to maximize their carrying capacity. A river-class laker that delivered 13,000 tonnes of limestone to a dock along the Saginaw River was still 3,000 tonnes short of its rated capacity. A 14,000-tonne cement cargo discharged in Detroit and Cleveland represented only 80% of the vessel’s rated capacity.

“The rise in water levels has allowed vessels to carry larger cargos than a year ago,” said James H.I.Weakley, President of Lake Carriers’ Association. “However, water levels will begin their seasonal decline in the fall, so the fact even more carrying capacity will be unusable makes the recent passage of the Water Resources Reform and Development Act even more important to the Great Lakes Navigation System. That legislation designates the Lakes as a system in terms of dredging and increases spending from the Harbor Maintenance Trust Fund. Passage could not have come at a better time, for it is clear higher water levels cannot themselves restore the Great Lakes Navigation System to even functional, let alone project dimensions. Only increased funding will end the dredging crisis on the Great Lakes. It was gratifying to see the House of Representatives add nearly $58 million to the Corps’ national budget yesterday. Surely some of those dollars will come back to the Lakes.”

The US Army Corps of Engineers estimates approximately 18 million cubic yards of sediment clog Great Lakes ports and waterways and pegs the cost of dredging that volume at more than $200 million. The Harbor Maintenance Trust Fund, the depository for a tax levied on cargo to pay for dredging, has a surplus of more than $8 billion.

US AND CANADIAN GREAT LAKES VESSEL OPERATORS ANNOUNCE JOINT BALLAST WATER PRINCIPLES On 11 June this year, Lake Carriers’ Association (LCA) and Canadian Shipowners Association (CSA), the trade associations representing US- and Canadian-flag vessel operators on the Great Lakes, released the five principles they believe should guide the US and Canadian governments as they regulate the ballast water on their vessels. The five principles should govern their vessels operating in the Great Lakes, St. Lawrence River, Gulf of St. Lawrence, Canadian eastern and Arctic waters to the limit of the Canadian exclusive economic zone (Operating Area).

Agreed Principles of the LCA/CSA

1. Single Ballast Water Rule for all Canadian and US flag domestic

Operating Area should continue implementing Best Management Practices as they have since 1993, and not be required to install ballast water treatment systems.

2.Any Rule must recognize the unique operating requirements and diversity of environmental conditions faced by Domestic Vessels. The IMO rule should not be the basis for governing a ballast water treatment rule for DomesticVessels.The IMO rule does not recognize the unique operating requirements and diversity of environmental conditions faced by Domestic Vessels within the Operating Area. The cost of compliance given these challenges and constraints could impose substantial economic harm. Furthermore the IMO rule does not recognize the difference between the risk of AIS transfer versus the risk of AIS introduction by foreign vessels.

3.The US Coast Guard’s Alternative Management System cannot

be endorsed as a solution for Domestic Vessels. The AMS program was only intended to be as protective as salt- water exchange/flushing for Foreign flag vessels and therefore must not be viewed as an endorsement of any foreign type- approved ballast water treatment system for use by Domestic Vessels.

4. LCA and CSA Members have a common interest to advocate for a single rule in the Operating Area to Governments and Regulators. LCA and CSA Members agree to jointly and severally advocate for Canadian Ballast Water regulations for Domestic Vessels that incorporate the principles espoused herein and advocate for recognition of such Canadian regulations by the US Coast Guard and Environmental Protection Agency.

5. LCA and CSA Members have a common interest to promote ballast water research and technological evaluation aimed at the unique requirements of Domestic Vessels operating in a unique environment.

Participation in shared research and evaluation is a priority of both the LCA and CSA. These efforts shall be aimed at determining the potential risk of AIS transfer from the ballasting operations of Domestic Vessels within the operating area and to assess ballast water treatment technologies for the development of best management practices and to assess the feasibility of such technologies for domestic vessels.

vessels in the Operating Area (Domestic Vessels). There are a multitude of jurisdictions that exercise authority over the bi-national waterway within the Operating Area. Domestic Vessels should operate under a uniform single standard or compatible set of national rules that are fair and rationally based, that result in requirements that are technically and operationally achievable, considering vessel age, type, and operating characteristics, and are economically feasible resulting in a positive benefit to cost ratio. Since treatment systems do not currently exist and are not expected to exist in the near future, Domestic Vessels operating exclusively within the Operating Area should continue implementing Best Management Practices as they have since 1993, and not be required to install ballast water treatment systems.

2.Any Rule must recognize the unique operating requirements and diversity of environmental conditions faced by Domestic Vessels. The IMO rule should not be the basis for governing a ballast water treatment rule for DomesticVessels.The IMO rule does not recognize the unique operating requirements and diversity of environmental conditions faced by Domestic Vessels within the Operating Area. The cost of compliance given these challenges and constraints could impose substantial economic harm. Furthermore the IMO rule does not recognize the difference between the risk of AIS transfer versus the risk of AIS introduction by foreign vessels.

3.The US Coast Guard’s Alternative Management System cannot be endorsed as a solution for Domestic Vessels. The AMS program was only intended to be as protective as salt- water exchange/flushing for Foreign flag vessels and therefore must not be viewed as an endorsement of any foreign type- approved ballast water treatment system for use by Domestic Vessels.

4. LCA and CSA Members have a common interest to advocate for a single rule in the Operating Area to Governments and Regulators. LCA and CSA Members agree to jointly and severally advocate for Canadian Ballast Water regulations for Domestic Vessels that incorporate the principles espoused herein and advocate for recognition of such Canadian regulations by the US Coast Guard and Environmental Protection Agency.

5. LCA and CSA Members have a common interest to promote ballast water research and technological evaluation aimed at the unique requirements of Domestic Vessels operating in a unique environment.

Participation in shared research and evaluation is a priority of both the LCA and CSA. These efforts shall be aimed at determining the potential risk of AIS transfer from the ballasting operations of Domestic Vessels within the operating area and to assess ballast water treatment technologies for the development of best management practices and to assess the feasibility of such technologies for domestic vessels.

“For one client, we run a truck service seven days a week, 24 hours a day to keep raw materials flowing to his production site. He told us he’d shut down within 12 hours if we don’t deliver on time,” says Alain Lefebvre, General Manager at Rideau Bulk.

“Clients really appreciate our ‘one-stop shop’ approach, and trust our door-to-door service to get cargo where it needs to go — on time and on budget,” he adds. “We can discharge a vessel at one of our port terminals, arrange for storage or prepare the shipment for export, then have our trucks deliver it to a destination of the customer’s choice.”

As an example, Rideau Bulk handles approximately 1.5 million tonnes of salt every year, and provides vessel loading and unloading, stockpiling, storage, and truck loading services for the three major salt companies serving Eastern Canada. At its inland terminals, Rideau Bulk manages road salt distribution for local de-icing operations, large and small.

The company also handles forest products (lumber, wood pulp, paper rolls), aggregates, and fertilizers at its six locations along the St. Lawrence Seaway, between Montreal and Toronto. Because Rideau Bulk is a subsidiary of Logistec Stevedoring, it also has access to 29 additional terminals in Eastern Canada and the United States. At the Port of Johnstown (formerly the Port of Prescott), the

township and various levels of government have been working for the last two years on a $35 million expansion of the primary wharf, as well as new berthing and storage areas. The port was already well equipped to handle grain and other bulk commodities, and Rideau Bulk is looking forward to bringing new types of cargo to town.

In addition to considerable storage space throughout its network, Rideau Bulk has trucks and quality equipment at its port terminals, such as loaders and a new, fully automatic conveyer stacker for charging vessels and stockpiling bulk commodities up to 70 feet.

“Customer service is at the heart of our operations,” says Marc Yelle, Director of Operations at Rideau Bulk. “We have large clients who call us when they’re in a bind and need extra manpower or machinery, but we also work with small and medium-sized businesses, who rely on us for advice and cost- effective options for all their logistics.”

At its inland terminal in Ottawa, which is served by CN Rail, Rideau Bulk handles general cargo, landscaping supplies, and forest products, including chipboard panels and pulp for local mills. It also delivers lumber to local Rona stores, moves 100–150 cars of roof shingles per year, and has worked closely with its clients to double the amount of fertilizer it distributes to farming co-ops in the Ottawa Valley.

Whether by vessel, by rail, or by truck, Rideau Bulk Terminals has the answer!

Bulk operations at the Georgia Ports Authority’s (GPA) Marine Port Terminals in Brunswick are currently leased and operated by Logistec USA Inc., the American subsidiary of Montreal-based Logistec Corporation. With a deep draught of 36 feet at the terminal, Logistec handles approximately one million tonnes of cargo annually and expects continuous growth in its local bulk operations.

Since 1997, Logistec has handled a variety of cargoes in Brunswick, such as wood pellets, peanut hull pellets, salt, aggregates, dry and liquid fertilizers, perlite, and animal feed.

Logistec is known for its expertise and professionalism, providing specialized cargo handling and value-added logistics services to marine and industrial customers.

Fednav is Canada’s largest ocean-going dry-bulk shipowning and chartering group. For 70 years, it has been delivering practical, innovative maritime transportation solutions as a pioneer in the international shipping industry.With offices on four continents and a reputation built on a commitment to customer care and reliability, Fednav is a leader in international shipping to and from the St. Lawrence River and the Great Lakes, as well as the Canadian Arctic, boasting the world’s largest fleet of ice-class bulk carriers.

Federal Marine Terminals, Inc. (FMT) has been handling cargoes in the Great Lakes and St. Lawrence River and along the East and Gulf coasts since 1960 and is recognized as an industry leader servicing breakbulk, bulk, specialized, and general cargo needs.

In a recent interview, Mark Pathy, President and Co-CEO said,“The Seaway will remain a critical gateway for trade with Europe, the Americas and Africa. In addition, we’re witnessing a growing need for project cargo associated with the development of energy resources in North America, including the Alberta oil sands and wind farms.”

In a world of continuously evolving commodity markets, Quebec Stevedoring Company Ltd (QSL), based in Quebec City, Canada, is adding a new ‘feather to its cap’. Through the first six months of 2014, QSL has conceived, designed and is building a state-of- the-art storage and shiploading facility for the export of wood pellets in bulk to the ‘green energy’-hungry nations of Europe and beyond.

Before the actual construction started this new opportunity went through an extensive risk-assessment process. Through an elaborate research project, QSL learned how the handling of wood pellets was done in the past and how the methods have improved. What were the impacts, during each part of the operation, such as; dust and noise pollution and even spontaneous combustion? The findings were combined with information from similar projects either currently on the drawing board or in the construction phase, and through other bulk material handlers whose products have similar characteristics.

All precautions currently available within the material handling equipment and technology industry worldwide were brought together to make this terminal a global reference for the handling of wood pellets.

The highest risk prevention technology has been put in place to ensure the compliance with the top security standards. One of the most important systems integrated into the new construction will replace all of the air within the domes with a non-flammable gas at the first sign of conditions that could lead to ignition. This will remove the oxygen necessary for combustion and avert events that have been witnessed elsewhere in the handling of wood pellets and other biomass based products. Great efforts were made to find the safest solutions that were also the least intrusive in terms of design. QSL is very much aware of its location near to the historic centre of picturesque Quebec City and they have worked very hard to create both an efficient operations facility and the most visually appealing structure. The total private investment for this state of the art terminal is approximately 25 million dollars.

The wood pellets will arrive by train, be fed to an underground conveyor system for transfer to the storage domes. After the safe transfer and storage of the pellets, inventory will be accumulated and then loaded on either Handymax or Panamax-type vessels. With 12.2m of depth at low tide at the wood pellet terminal, shipments of 60,000 tonnes should not be uncommon, depending on the vessels loaded.

This new activity will be added to the other products handled within QSL, and its affiliates. Over 20 different items are handled within the bulk infrastructure such as raw sugar, rock salt, cement, iron ore (pellets, chips and fines), coal, grains and meals and mineral concentrates.

The fact that the Port of Quebec is the last deep water port before entering the St- Lawrence Seaway and Great Lakes system and can be considered the gateway to and from the central section of North America means it is an ideal choice for both bulk commodities and specialties imported and exported.

QUEBEC STEVEDORING COMPANY

• founded in 1978, Quebec Stevedoring is a privately owned company dedicated to providing customized solutions for preparing, handling, transshipment and storage of dry cargoes;
• through acquisitions and new start-ups, QSL has grown to include ten subsidiaries;
• more than 25 terminals are part of QSL’s ever growing network from Chicago, IL to Argentia in Newfoundland;
• QSL’s workforce consists of ±350 staff members and 1,200 longshoremen and contributes to the creation of approximately 3,500 direct and indirect employment opportunities;
• the economic activity generated by QSL in the Quebec City area surpasses $300 million above and beyond the tax revenues that are paid to the three levels of government;
• yearly, QSL’s highly versatile network of maritime terminals accommodates over 1,000 inbound and outbound vessels arriving from or going to destinations around the world;
• over 20mt (million tonnes) of dry bulk and general cargo are handled annually, safely and effectively;
• QSL’s network offers 19 million square feet of outdoor storage and 2 million square feet of indoor storage;
• continuous investments are made to remain at the cutting edge of technology;
• QSL’s engineering team ensures that the proper technology is customized to meet the client’s needs; and
• comprehensive services are offered to build long term relationships with QSL’s clients.

PORT OF QUEBEC

Open year round, the port of Quebec offers world-class port and marine services, and can accommodate vessels with draughts of up to 15m. All terminals have efficient rail and road connections.

The port is located 1,300km from the Atlantic Ocean and less than 200km from the beginning of the St. Lawrence Seaway, giving easy access to the Great Lakes and Mid-west markets. A total of 25mt are handled annually and approximately 1,000 vessels (cargo and cruise ships) dock year round.

The Port of Quebec is composed of 15 different terminals (public, single product, multi-commodities, private and dedicated terminals).

Commodities such as iron ore (fines, pellets and chips), a variety of concentrates, grains, chemicals, and petroleum products, fertilizers, sugar, cement, scrap metal, coking coal and coal are transshipped in tremendous volumes every year.