Great Lakes Ports Work On Building Cargo Diversity

Project cargo’s growing diversification role

Throughout the vast Great Lakes-St. Lawrence Seaway system in the United States and Canada, most ports seek to diversify their customer base by developing new business beyond traditional bulk markets. Front and center in their efforts are project cargoes, especially wind energy components destined to meet the rising demands of utilities. On the horizon, too, is a project in Ohio that could soon become the first offshore wind facility in the Great Lakes.

 

Wind energy has been a key component of the Port of Duluth’s diversification strategy.

Wind Energy Powers Diversification

At the Port of Duluth, the top tonnage port on the Great Lakes (32 million metric tons), the Clure Public Marine Terminal handles high-value general cargo as well as project and dimensional cargoes.

Deb DeLuca, port director of the Duluth Seaway Port Authority, recently stated that “cargo diversity is important to any port and its catchment area. A mix of cargo spells economic stability.”

The port on Lake Superior along the border of Minnesota and Wisconsin has strong expectations for 2020 after shattering a wind energy cargo record last year. In total, Duluth welcomed 306,000 tons of wind energy cargo in 2019. This eclipsed the previous summit of 302,000 tons in 2008. Duluth Cargo Connect managed the unloading, storage and dispatch of the cargo to various sites in the Midwest.

Such a banner performance was termed “no accident” by DeLuca. “We’ve made more than $25 million in strategic investments to the terminal in the past four years, enhancements that help support the excellent work Duluth Cargo Connect does in handling these oversize wind cargoes.”

Indeed, the tower sections are long, but the blades are even longer – with some well past 200 feet.

“Wind energy has been an important part of our cargo portfolio, dating back to our first shipments more than a decade ago,” noted Jonathan Lamb, president of Duluth Cargo Connect. “As the farthest inland port in North America, we’re geographically well situated to support wind farm installations in the Upper Midwest and central Canada. We pride ourselves in providing a seamless connection between modes of transportation for our wind energy customers.”

Strapped for space and needing more laydown area, the port is adding 50,000 square feet of warehouse space and rebuilding two dock walls at a cost of $21 million, with construction planned for 2021-2023. Beyond wind components, Lamb says that Clure Terminal is targeting dimensional cargoes including transformers, reactors, pressure vessels and similar equipment serving mining, manufacturing, and oil and gas industries.

A number of U.S. Great Lakes ports are developing reputations for the efficient handling of project and heavy lift cargo. The Port of Bay City, Michigan on Lake Huron handled five wind energy cargoes in 2019. And the Port of Indiana-Burns Harbor handled one of the more unique project cargoes in 2019 when it moved two huge rubber-tired gantry cranes (RTG) from the port to the CSX Intermodal Terminals’ facility in nearby Chicago. The 68-piece cargo arrived at the Indiana port in June aboard the HC Melina and was discharged from the vessel by Federal Marine Terminal’s (FMT) shore crane for transport to the CSX Intermodal Terminals’ Bedford Park facility, which handles domestic and international freight.

Port of Indiana-Burns Harbor

Ian Hurt of the Port of Indiana-Burns Harbor, said FMT, the general cargo stevedore at the port, could perform two-crane lifts of nearly 200 metric tons, or 440,000 pounds, nearing the top of any port’s capabilities in the U.S. Great Lakes or Canada. “Intermodal transport requires all modes to work together seamlessly, and the gantry crane shipment is an example of the efficient transportation attributes and its connectivity in the Midwest,” Hirt explained.

At the Port of Monroe, Michigan’s only port on Lake Erie, coal remains the top commodity, but Port Director Paul Lamarre III has been a strong proponent of cargo diversity. And this strategy’s success is borne out by growing imports of project cargo and exports of wind tower sections manufactured at the port. More than a dozen BigLift vessels carrying wind components are expected in 2020.

 

More than a dozen BigLift vessels are expected at Port of Monroe in 2020.

 

Project cargo and heavy machinery are also handled at such ports as Detroit, Toledo and, of course, Cleveland where the Cleveland-Europe Express service operated by Spliethoff has concluded its sixth season hauling containers and breakbulk cargo between Cleveland and Antwerp.

David Gutheil, chief commercial officer of the Port of Cleveland, told the American Journal of Transportation that the port handles a significant amount of non-containerized steel, heavy lift, heavy machinery and capital equipment. Customers include General Electric, Siemens and Alcoa. He welcomed the contribution of Logistec, which has completed its first year as the general cargo terminal operator.

Proposed Offshore Wind Project on Lake Erie

Looking several years down the road, Gutheil evoked the big potential for the Port of Cleveland of a proposed offshore wind project on the shores of Lake Erie that would constitute the first freshwater wind farm in North America. Known as Icebreaker Wind, the $126 million pilot project consists of six 3.45MW turbines located 8 miles north of Cleveland. LEEDCo, a non-profit PPP, is co-developing the project with Norwegian equity investor Fred Olsen Renewables. Cleveland Public Power has committed to buying 63% of output over 16 years.

The project has won federal approval and has encountered no major public opposition (a good measure of public support, in fact). Assuming the Ohio Power Siting Board gives the green light, possibly by this spring, construction could start in 2021 and commercial operation in 2022. Ultimately, analysts suggest it could transform Ohio into a regional offshore wind-supply chain hub.

“We see much potential for us as a staging center for the energy components,” Gutheil told AJOT.

New Laydown Areas Benefit Canadian Ports

Meanwhile, officials at the U.S. and Canadian Seaway corporations are continuing to put strong emphasis on the Great Lakes/Seaway System as a non-congested and strategically-located alternative to gateways on the U.S. East Coast and Gulf for project and heavy lift cargoes.

Among Canadian ports on the Great Lakes, the newly-merged Lake Ontario ports of Hamilton and Oshawa (now called the Hamilton Oshawa Port Authority, or HOPA) are continuing to develop project cargo and breakbulk business.

 

Spliethoff has completed six years of its Cleveland-Europe Express service.

 

On the tip of Lake Superior, the investments by the Port of Thunder Bay (mainly a grain export gateway) on a new laydown area, railway yard as well as a new warehouse scheduled for completion this May are paying off with two large wind turbine projects in Western Canada slated to use the port’s Keefer Terminal for oversized cargo.

We are also handling more structural steel and railway track for Western Canada as a result of our new laydown area,” indicated Tim Heney, chief executive of the Thunder Bay Port Authority.

Another Canadian port focused on bulk shipping that has significantly diversified its customer base due to investments in bigger laydown areas is Johnstown in eastern Ontario. Last year, it welcomed 13 multi-purpose vessels carrying 29 full sets of turbines for a regional wind farm. The laydown areas have likewise accommodated steel construction beams, and steel pipes will start later this year.

 

Source: American Journal of Transportation

Port of Monroe

Shipping Milestone: Cargo Diversity Up Across Docks

The Port of Monroe is celebrating another milestone year.

This time it comes in the form of cargo diversity.

“The port is as vibrant as it ever has been despite rapid changes in cargo transportation,” port Director Paul C. LaMarre III said. “Cargo diversity across our docks is up.”

Despite some challenges early in 2018, the port continues to thrive. This shipping season saw the opening of the riverfront intermodal dock. The dock, a $3.6 million investment, saw its first ship in April. The Huron Spirit brought a load of steel coils for the automotive industry.

“We had an agreement to handle loads of steel coils, but only got that one shipment because of the steel tariffs,” LaMarre explained. “Effectively that business evaporated overnight.”

But LaMarre did not get discouraged.

“We are a nimble organization,” he said. “We adapt to change.”

LaMarre forged a deal with the Great Lakes Towing Co. and Great Lakes Shipyard to establish towing and shipyard services at the port.

As part of the partnership, Great Lakes Towing relocated the tug Wisconsin to the port to help with ship assistance. The tug is the oldest commercially operating tug boat in the world. It was built in 1897 in Buffalo, N.Y., by the Union Dry Dock Co.

International shipping returned to the port after a nearly two-year battle. International cargo was not able to call upon the port based on issues not related to the port.

Earlier this year, the U.S. government intervened and reopened international shipping to the Port of Monroe and the Port of Toledo.

During the 2014 shipping season, the port set tonnage records and nearly set another one the following season. LaMarre said this year the tonnage figures will be down, but the port’s diversification of cargo is up.

“ We continue to move a wide variety of cargo through the port,” he said. “ We are moving more gypsum on the dock and by rail.”

The port also is handling all the bottom ash from DTE Energy’s Monroe Power Plant, along with components for wind towers and natural gas pipeline sections.

LaMarre said this year the port’s season will continue through the winter due to a new development related to liquid asphalt.

The M/V Iver Bright, owned by Varoon, a company in the Netherlands, began calling on the port recently. The Iver Bright is an asphalt tanker that recently made its first voyage from Montreal to Monroe.

“The single voyage qualified the port for its fourth Seaway Pacesetter Award in six years,” LaMarre said.

The vessel is unique, La-Marre said, because it was built in 2012 and is an ice class vessel, meaning it can operate year-long.

“It will likely call upon the port all year, primarily between Sarnia, Ontario and Monroe,”

“When you couple our cargo activity with our industry leadership, it is evident that the port … continues to be seen as one of the most impactful ports on the Great Lakes,” LaMarre said. “It can also call upon Detroit and Toledo.”

The director anticipates this new aspect to the business will drive up the port’s tonnage in the coming year.

“It’s a significant boost during what is typically the slowest time of the year for the port,” LaMarre said.

Though many said it is LaMarre’s leadership that has driven the growth and success of the port, he credits the port’s business partners and DRM. That success will continue into 2019, he said.

“ When you couple our cargo activity with our industry leadership, it is evident that the port, though not large in tonnage, continues to be seen as one of the most impactful ports on the Great Lakes.”

The port wants the community to be involved in its operations. It launched a new website, www. portofmonroe.com, and a Facebook page where it shares its activity.

 

SOURCE: Monroe Evening News