On behalf of the Toledo Lucas County Port Authority I would like to welcome you to Toledo and to the Ohio Freight Conference! There is a lot happening in NW Ohio related to transportation and logistics. This conference is a testament to that. The Port Authority is proud to play a major role in these initiatives as we continue to work in our communities to support development through the formulation of modern facilities and supply chains that can efficiently move people and cargo throughout the region.
My career at the Port Authority began in 2004 as a major modernization initiative for the Seaport was launched. Midwest Terminals had just taken over the general cargo facility from Toledo World Industries and Ironhead was about to take over the operation of the Toledo Shipyard from Manitowoc Marine. It was very exciting to work with the new operators as they began to aggressively grow their Toledo based businesses. Many site improvements were made immediately to the general cargo facility and shipyard. In 2009 I wrote a paper for the American Association of Port Authorities that summarized the developments titled “The Modernization of a Great Lakes Seaport” which was a case study on the past, present and future of the Port.
The Port of Toledo is continuing to grow! Toledo ranked second in the U.S. in 2010 in tonnage shipped and received on the Great Lakes. 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 U.S. Department of Transportation. The Port of Toledo registered nearly 4.8 million metric tons of overseas cargo through the St. Lawrence Seaway during the 2010 navigation season, over 16 percent more than in the 2009 season, earning the Toledo-Lucas County Port Authority its 11th Pacesetter award. In total, the Port of Toledo registered more than 9.8 million metric tons for the entire season via 576 vessel calls.
Today I would like to focus on looking ahead as we consider innovation within the Port of Toledo which in turn brings innovation to HWY H2O. I’ll discuss the outlook for the Great Lakes shipping industry as it relates to the Port, recent terminal enhancement and expansion projects and some key studies that are underway that could provide direction for future investments and business opportunities. After all, innovation requires constant research and development. I’ll also discuss some new communications tools that we are using in Toledo to share information and promote HWY H2O.
No matter how what type of equipment and facilities a Port might have, it can not be successful unless the industries that it supports are in operation. As the economy begins to recover steel mills, utilities and manufacturing facilities are resuming production driving increased demand on our system. In Toledo, as in other ports along HWY H2o we are tracking 14% ahead of the same period in 2010. Equipment acquisitions and new rail and roadway configurations along with the expansion of our port’s footprint have positioned us well to increase our capacity for handling traditional cargos and also enable us to handle project cargo for the wind industry and the missing component from our cargo mix, containerized products.
Now, I’d like to tell you about some recent innovations taking place at the Port’s general cargo facility operated by Midwest Terminals of Toledo International. In 2010, the terminal received two new Liebherr LHM 280 cranes. Each crane has a lift capacity of 84 metric tons, and can handle all types of commodities including bulk, break bulk, project cargo and containers. These cranes complement two existing cranes capable of 99 metric ton and 65 metric ton lifts. These cranes were delivered with two 17 cubic meter grabs and two Bromma spreaders capable of lifting both 20ft and 40ft containers. In order to be able to handle pig iron and similar cargoes, Midwest Terminal received two Peiner HMRG grabs for use with the Liebherr 280 cranes; it already has two similar grabs that are being used with the older cranes. Other acquisitions include a new Mantsinen RB 200 material handler with multiple attachments including grabs, magnet, pallet spreader etc, as well as a new 42” ship-loading conveyor capable of loading at speeds up to 1,000tph (tons per hour). This is in addition to an existing ship-loading conveyor with similar capacity. The addition of this new equipment allows Midwest Terminals to work vessels faster, more efficiently and more safely than ever before. Here are some pictures of the new equipment in action- on the left both Liebherr cranes and the material handler are discharging a vessel of pig iron- What used to take a period of 5 to 6 days with the older equipment now takes 36 hours or less. On the right is a Liebherr crane loading a hub for a wind turbine onto a truck. The Port is perfectly positioned to handle wind related cargo and has been working with ODOT and others in the transportation industry to establish routing to and from the port facilities for oversize cargo. The Gamesa products are shipped to Toledo for a NW Ohio wind project directly from Spain.
The Toledo Shipyard was established in 1888 and has constructed hundreds of vessels throughout its history, most notably the USCG Icebreaker Mackinaw in 1944. The Port Authority took over operations of the yard in the mid 1980s and has partnered with multiple ship repair firms to ensure the sustainability of the yard. Since 2006 Ironhead has been the operator of the yard and is working with the Port Authority to modernize the yard. Ironhead has constructed a 20,000 s.f. high bay facility and the entrance, fencing, and lighting will be reconstructed this fall with the assistance from port security grant funding. Unfortunately, the yard is in need of millions of dollars of additional improvements including dock wall repair, pump house reconstruction, and dry dock work and there is very little assistance available for shipyards in the United States. The Port is committed to continue to seek new opportunities to modernize the yard and at the same time assist Ironhead in marketing the shipyard and growing the annual book of business. In 2010/2011 Ironhead performed three major dry dockings for the CSL Niagara, CSL Tadoussac and the Arthur Anderson.
Since 2008, the Port Authority has sought funding for the redevelopment of Ironville, a former Chevron oil refinery site. In addition to the $5 million Jobs Ready Sites Grant (JRS) Funding, the Ironville Terminal also benefits from $7.4 million in grant funding via a State of Ohio Logistics and Distribution Stimulus (LDS) grant and a $3.1 million award from the U.S. Department of Commerce Economic Development Administration (EDA) is currently pending. The awards are unique as several local entities partnered on each application to ensure our region had the best chance in receiving each award. Phase One of the development utilizes the JRS funding for the rail installation. Phase Two will involve improvements to the dock face, dredging and associated site work and is funded through both the EDA and LDS sources. The final phase, Phase Three, is focused on the installation of bulk material handling and conveyor infrastructure and will utilize the remaining LDS funds. It is anticipated that the implementation of all three grants will be complete by 2014. Ironville Terminal is currently in Phase One – Rail Installation. The JRS grant funding reduced the planned development window by seven years and this was the first time that Lucas County received a JRS award. Approximately 7,200 linear feet of rail and eight switches are being installed and will connect the facility to Norfolk Southern.
Ironville is not the only Port owned waterfront property being prepared for expansion. The Front Street properties known as Beazer and Heidtman Steel have superior highway and water access and are zoned as M-2 Industrial. These sites are located adjacent to the Norfolk Southern Class 1 railroad and Heidtman has a marine dock that will accommodate large ships. There is sufficient room for manufacturing facilities, outdoor storage of bulk material, and space for constructing warehouses and other facilities and infrastructure for indoor storage and processing. The sites are on a designated heavy haul truck route allowing for loads up to 154,000 lbs. gross into Michigan and Canada with nearby interstate access to I-75, I- 280 and I-80/90. The Beazer site is undergoing a remediation with assistance from the Clean Ohio Revitialization Fund and is a prime example of the Port’s leadership brown-field reclamation. (Click Picture to Play Movie). We are even incorporating dredged material in the redevelopment of Beazer as a prime example of beneficial reuse.
While not located directly on the waterfront, the Jeep parkway site is a key strategic acquisition of the Port Authority that may one day be home to hundreds of advanced manufacturing jobs in production facilities served by multiple modes of transportation. The Port Authority officially acquired the historic 111 acre Jeep Parkway property on Oct. 3, 2010 for a purchase price of $95,000. Consistent with its mission in the economic development delivery system, the Port Authority had been attempting to acquire the property for several years based on its proximity to I-75 and the vast amount of land available for development. The property is served by Class I rail, offers easy access to the interstate system, and is seen by as many as 125,000 passing motorists each day, providing it to be attractive to many potential end users. The Jeep Parkway property is one of the oldest manufacturing sites in the nation and has been home to a host of manufacturing entities. This site was home to manufacturing that produced much of the equipment that helped the U.S. win World War II including the famous Jeep. The Jeep Parkway property has benefited from state and local remediation funds, most recently receiving two Clean Ohio Revitalization Fund (CORF) Grants totaling $4,499,859 million. The Clean Ohio Council awarded the funds to the Port Authority on June 29, 2011 as two of 17 brownfield clean-up project awards throughout the state to benefit from the $27 million in CORF funding. CORF funding allows for the reuse of commercial and industrial properties that are currently idle. The Port Authority received two grants – one for $2,999,869 and a second for $1,499,990 to remediate impacted soils and demolish existing building foundations. The Port Authority’s grant submittal to CORF included plans to develop a portion of the property along the Ottawa River into an urban waterfront park as well as State Paper and Metal Co. Inc., plans to expand and build a 45,000-square-foot building on the property, creating 22 jobs. The Port Authority also received a $1.3 million Housing and Urban Development - Economic Development Initiative grant to cover some of the expenses associated with the purchase and remediation of the site. The City of Toledo also provided a $340,000 revolving loan fund grant which was utilized for the removal of a hazardous substance, trichloroethylene, (TCE) from the site.
Here’s another example of how we are making even the very old new again - the On July 1 at 11:30 a.m., at the exact moment that his mother broke a bottle of champagne across the bow of the same vessel 100 years prior, James M. Schoonmaker II and his wife Treecie rechristening Toledo’s museum ship under its original name. (Click Picture to play movie). The rechristening of the Schoonmaker brought the community together to celebrate Toledo’s maritime history. Now the community is looking forward to the development of a modern National Great Lakes Maritime Musuem which will be relocated to Toledo’s waterfront from Vermillion Ohio.
Whether you are enhancing an existing facility by adding road, rail or new equipment or building a new facility with warehousing, vessel berths and material handling equipment, you can count on one thing- it’s going to be expensive. With funding for transportation infrastructure in scarce supply, port communities must look to innovative funding streams to remain innovative. One potential source of funding in Ohio would come through revenue generated by Turnpike tolls. Other states have pursued this strategy with mixed results. An advantage of state funding for port infrastructure is that is could be leveraged with federal money through the US Army Corps of Engineers of other federal agencies.
The results of this study will have multiple uses. I believe that most people that believe the Great Lakes St. Lawrence Seaway System is obsolete will be surprised by the economic impact HWY H2O has, and will also note the system’s growth potential. Port Communities will be able to show the measured return on investment in dredging and facilities. States in the Midwest will be able to prove that they are in fact, Maritime states and should be funded like coastal neighbors and other inland waterway systems. The message is simple, HWY H2O provides a great economic and environmental value to industries that depend on it.
The Ohio Department of Transportation has played a major role in the development of the Port of Toledo in recent years. The state recognizes that transportation is the backbone of economic development and a multi modal approach is needed. Ohio’s Lake Erie ports on HWY H2O are home to many of the state’s most important transportation assets and this study will identify how those assets can work together. The data collected will lead to new cargo handling opportunities and will also guide transportation investment choices to support Ohio’s key industries.
New communications tools are collecting and providing data that can drive continued innovation in HWY H2o. Online calculators can provide cost estimates for bringing vessels into the system. AIS tools allow anyone to see vessel positions on the Great Lakes and potentially match empty vessels to cargo loads in the future. Marine Delivers serves as a great tool for reaching out through traditional media and social networks to share success stories and the advantages of utilizing HWY H2O. Finally, better mapping technology and interactive applications and interfaces allow customers to take virtual tours of facilities and see pictures and videos of equipment and facilities. We believe the tour the port website is the first of its kind and has already come in handy when discussing new opportunities.
I would like to thank you for the opportunity to speak to you about our Port’s innovations. We have always been an innovative system- after all, we invented the first self unloading vessels on the Great Lakes, engineered a lock system that elevates huge vessels hundreds of feet above sea level and are now on the leading edge of developing new ballast water treatment systems. I believe the future of HWY H2O can be very positive and robust so long as we continue to invest in our infrastructure and are willing to take on new cargo and opportunities.
TMACOG Ohio Freight Conference 2011
Ohio Conference on Freight 2011 Joe Cappel, Director of Cargo Development September 21, 2011 St. Lawrence Seaway, Innovation within HWY H 2 O
Rebuilding Toledo- the modernization of the Port
2010 Pacesetter Award <ul><li>The Port Authority earned the Robert J. Lewis Pacesetter Award from the SLSDC for increasing international tonnage through the seaway in 2010. The Port ranked second in the U.S. in 2010 tonnage shopped and received on the Great Lakes. </li></ul>
Looking Ahead… <ul><li>Industry Outlook </li></ul><ul><li>Terminal Enhancement and Expansion </li></ul><ul><li>Research & Development & Communications </li></ul>
Industry Outlook and Opportunities <ul><li>The 2011 season is off to a good start through July with a 14% increase over the same period in 2010. Increases in petroleum, coal, ore general cargo and other bulk products have been strong and the port is utilizing the new equipment to handle the additional cargo more efficiently than ever, particularly wind components. </li></ul><ul><li>The new equipment and infrastructure improvements at the general cargo dock have positioned the Port well for handling containerized products should a scheduled short sea service develop. The port is currently and has been in discussions with several interested partners and continues to evaluate the business case for launching the service. </li></ul>
Terminal Enhancement: General Cargo Dock (Midwest Terminals of Toledo International)
Terminal Enhancement: Toledo Shipyard <ul><li>Capital Improvement Plan </li></ul><ul><ul><li>Yard requires major investment in infrastructure including dock wall, pump house and dry docks </li></ul></ul><ul><li>Marketing Outreach </li></ul>
Terminal Expansion: Ironville Terminal Development <ul><li>Phase 1: Rail Installation </li></ul><ul><li>Phase 2: Dock Face Improvements, Dredging, Site Work </li></ul><ul><li>Phase 3: Bulk Material Handling & Conveyor Infrastructure </li></ul>
Expansion: Col. James M. Schoonmaker Restoration & National Great Lakes Maritime Museum
Research & Development: The Ohio Turnpike Issue <ul><li>TMACOG has issued a position paper on this issue with recommendations and considerations related to this issue </li></ul><ul><li>TLCPA is in support of lease if revenue is used for state infrastructure projects such as matching federal dollars for harbor dredging and beneficial reuse and economic development </li></ul>
Research & Development: The Martin & Assoc. G.L. Seaway System Economic Benefits Study <ul><li>For the first time a comprehensive Economic Benefits Study will be available for the entire Great Lakes St. Lawrence Seaway System. The Study is currently being peer reviewed and will be officially launched at DOT Headquarters in October. Each Great Lakes State will hold its own media event rolling out the study thereafter. Toledo will team up with Cleveland and others for a media event in Columbus. </li></ul>
Research & Development: Ohio Freight Study <ul><li>The Ohio Depart. Of Transportation has selected Parsons Brinckerhoff to study how Ohio’s freight infrastructure is being utilized. It will identify modal freight volumes, commodities and origins / destinations. The report will be used to plan and prioritize future strategic investments and guide economic development activities to make the most of existing infrastructure. Anticipated completion date is Sept. 1, 2012. </li></ul>
New Communications Tools <ul><li>AIS: You can now track vessels in real time in the Great Lakes system on http://ais.boatnerd.com </li></ul><ul><li>Marine Delivers : www.marinedelivers.org launches end of August- promotes positive side of marine transportation and combats negative stories and perceptions. </li></ul><ul><li>Tourtheport.com: This site provides an interactive virtual tour of the Port of Toledo complete with photos and video clips featuring our new equipment. The site works great on an ipad or other tablet device. </li></ul>
Thank You <ul><li>Toledo-Lucas County Port Authority </li></ul><ul><li>One Maritime Plaza, 7 th Floor </li></ul><ul><li>Toledo, OH 43604 </li></ul><ul><li>P: 419-243-8251 </li></ul><ul><li>W: www.toledoportauthority.org </li></ul><ul><li>www.toledoexpress.com </li></ul><ul><li>www.toledoseaport.org </li></ul><ul><li>www.tourtheport.com </li></ul>