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[2] The Port of Baltimore ■ September/October 2013 To subscribe or renew, visit www.marylandports.com

LIEUTENANTGOVERNOR

Anthony G. Brown

Peta RichkusRev. Donte Hickman

MARYLAND PORT ADMINISTRATIONWorld Trade Center Baltimore

401 E. Pratt St., Baltimore, MD 21202Toll Free 1-800-638-7519

Executive Director James J. White – 410-385-4401

Deputy Executive DirectorM. Kathleen Broadwater – 410-385-4405

Director of OperationsDave Thomas – 410-633-1043

Director of MaritimeCommercial Management

Michael Miller – 410-385-4747

Director of SecurityDavid Espie – 410-633-1153

OFFICE OF COMMUNICATIONS

410-385-4480

Director of CommunicationsRichard Scher

Printed in U.S.A.

SECRETARY, MARYLAND DEPARTMENT OF

TRANSPORTATIONJames T. Smith, Jr.

EXECUTIVEDIRECTOR

James J. White

GOVERNORMartin O’Malley

William Dockser Donald C. Fry Theodore G. Venetoulis Charles H. White, Jr.

TRADE DEVELOPMENT

NORTH AMERICA: Director

Richard Powers – 410-385-4731

Deputy Director / ContainersJoseph M. Greco – 410-385-4464

Latin America and BulkRick Schiappacasse – 410-385-4453

BALTIMORE:Cruise Maryland / Customer Service

Cindy Burman – 410-385-4458

AutoLarry Johnson – 410-385-4472

Ro-Ro / Project CargoSteve Jarczynski – 410-385-4474

UNITED STATES:New York / New Jersey

Charlie McGinley – 908-964-0772

Pittsburgh / CincinnatiRick Pagley – 724-657-6805

INTERNATIONAL:Taiwan

Shin-I Lin – 886-2-2314-8952

PUBLISHER

TODAY MEDIA CUSTOM COMMUNICATIONS

1014 W. 36th St., Baltimore, MD 21211410-828-0120 | Fax: 410-825-1002

www.todaymediacustom.com

ChairmanRobert F. Martinelli

PresidentJonathan Witty

General ManagerKim Fortuna

Advertising DirectorSteve Lassiter

EditorBlaise Willig

Art DirectorDarby Lassiter

Graphic DesignerChris Boyd

Staff WritersNancy Menefee Jackson,

Kathy Bergren Smith, Merrill Witty

Staff PhotographerKathy Bergren Smith

Traffic CoordinatorChris Milton

Please address all advertising inquiries toToday Media Custom Communications, attention

Steve Lassiter ([email protected]). Please address all editorial inquiries to Today Media Custom

Communications, attention Blaise Willig ([email protected]). Material in this magazine may be reproduced in whole or part with a credit line reading

“Reprinted from The Helen Delich Bentley Port of Baltimore Magazine.” The Maryland Port Administration is an equal

opportunity affirmative action agency.

MARYLAND PORT COMMISSIONERS

http://www.todaymediacustom.com

http://www.mpa.maryland.gov/

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COVER: Maryland’s two U.S. Senators and eight members of the House of Representatives have a lot to do with helping make the Port of Baltimore one of Maryland’s top economic assets.

DEPARTMENTSGovernor’s MessagePort’s Success Spotlights Teamwork

Executive ViewCongressional Delegation Comes Through

SoundingsBy The Numbers / Funding / In Memoriam / Newsmakers / Organizations / Shipping

GreenPortScrubbers Help Ships Clean Up Emissions

Port PersonSchuman Ensures Pleasant Cruise

Maiden VoyagesFirst Look at Bahri and NYK Line Vessels

Port ViewIce Doesn’t Stall WWII-era Tugs

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FEATURESCalling on CongressSupport for the Port Comes From the Hill

Keeping Track of Trains Update on Double-stack and Direct-to-Rail Capabilities

Another Automaker ArrivesMazda Shifts Imports Through Baltimore

Distribution SolutionsTerminal Corp. Strong After 120 Years

King of CoalEnergetic CNX Setting Export Records

1826303438

The latest news about the Port of Baltimore can be found on Twitter. Users should go online to twitter.com/portofbalt.

www.marylandports.com

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September/October 2013CONTENTS

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To subscribe or renew, visit www.marylandports.com September/October 2013 ■ The Port of Baltimore [7]

GOVERNOR’S Message

Thanks to our dynamic private sector and the strong partnerships we have forged with our growing business community, Maryland has recovered the jobs lost in the national recession. Successful cooperation between the

public and private sectors is key to our ongoing efforts to expand opportunity and grow our increasingly diverse middle class. Few places in Maryland highlight this cooperation better than the Port of Baltimore. The public and private marine terminals at our bustling Port routinely welcome massive cargo and cruise vessels that bring business and tremendous economic opportunities to our state. The Port has seen record-setting growth — growth that is directly attributable to the support and commitment of the best congressional delegation in the nation. Dredging is the lifeline of the Port of Baltimore. Simply put, without properly maintained shipping channels, the huge ships of today, and the supersized ones of tomorrow, could not safely travel to the Port on import or export voyages. If ships are not able to come here, then those good-paying, family-supporting jobs that our Port is known for would be lost. Dredging doesn’t happen without our hard-working congressional leaders. Led by our esteemed senators, Barbara Mikulski and Ben Cardin, “Team Maryland” has been successful over the years in securing targeted

federal investments to properly deepen and widen the waterways leading to the Port. Our congressional members have been equally successful in obtaining scarce federal funding to help make the Port of Baltimore one of the most secure ports in the nation. They have helped the Port receive security grants for everything from closed-circuit cameras to mobile sonar intrusion detection. Their work has helped make the Port a safer workplace for the thousands of people who work there every day, and a secure gateway to our State and our Country. Maryland is fortunate to have a united and driven congressional delegation fighting for middle-class jobs at the Port of Baltimore and throughout the State. We know we can count on them to make sure the Port remains competitive, and that Maryland’s private sector continues to create prosperity from the middle out.

Martin O’Malley, Governor

EXECUTIVE View

Cooperation Remains the Key for Continued Economic Growth

‘Team Maryland’ Helps to Keep the Port Competitive

I’m going to echo Governor O’Malley’s thoughts on our congressional delegation: the Port of Baltimore would not be as successful as it is today without the hard-working men and women on Team Maryland.

From matters as diverse as dredging to port security, I feel very confident that our two senators and eight congressmen and women are always doing what they can to keep the Port of Baltimore competitive. As Senator Mikulski herself said when she recently visited the Port of Baltimore, the congressional delegation is “no Johnny or Janey come lately when it comes to fighting for the Port.” I couldn’t agree more. This true team understands what the Port of Baltimore is all about and what it really means — which are jobs. They understand how fortunate we all are in Maryland that we have one of the busiest U.S. seaports right in our own backyard. They understand that we cannot take that for granted. We need to continue to push forward and do things to strengthen it. In addition to the Port’s role as an economic engine for our state, our congressional team understands the importance of port

security. The MPA cannot thank them enough for their hands-on involvement in securing federal port security grants for us over the past several years. These grants have greatly helped to secure the Port itself and the thousands of people who work here every day. I have often said that the success of the Port of Baltimore depends on many people working together for the good of the Port. It is tremendously reassuring to me to know that we can depend on our outstanding congressional team to lead the effort in making our Port one of the best in the nation.

James J. White, Executive DirectorMaryland Port Administration

www.mpa.maryland.gov


The happenings in and around the Port > > > > > > > > >

FUNDING

TIGER Grant Program HelpsTo Increase Port’s Cargo Capacity

President Biden noted, “This grant is going to help take this historic port to a new level.”

The Port of Baltimore’s application for TIGER funding was among 568 national applications requesting more than $9 billion. The total estimate for the project is $29 million, with the Maryland Department of Transportation agreeing to fund the other $19 million.

“I want to thank our congressional delegation for all of their hard work to secure these federal dollars for one of our state’s greatest economic engines, the Port of Baltimore,” said Maryland Governor Martin O’Malley. “These dollars will allow us to continue to grow our busy cargo business while also maintaining and growing good-paying, family-supporting, blue-collar jobs.”

The bulkheads at the Fairfi eld Marine

Vice President Joe Biden visited the Port of Baltimore’s Seagirt Marine Terminal in

early September to announce that the Port has secured $10 million in federal funding through the U.S. Department of Transportation for a project to increase its cargo handling capacity and provide rail access at its Fairfield Marine Terminal. The project, funded through the Transportation Investment Generating Economic Recovery (TIGER) grant program, will use dredged material from the Port’s main access channel to fill an obsolete and dilapidated basin and create a new 7.6-acre cargo staging area in a prime location near the vessel berth.

While acknowledging that Port activities “have fueled in large part the continued growth of our economy,” Vice

Terminal’s basin are more than 60 years old and at the end of their useful life. The dredged material that will fi ll the basin will come from the 50-foot-deep channel leading to the Seagirt Marine Terminal. While the channel is currently deep enough to accommodate supersized container vessels, portions need to be widened so that larger ships have easier access. Material placed in the basin will create additional cargo lay-down land.

Rail access will also be added to Fairfi eld, enhancing the effi ciency of handling autos and roll-on/roll-off (ro/ro) equipment such as farm and construction machinery. The Port of Baltimore currently ranks fi rst among all U.S. ports for handling autos and ro/ro.

“Through a solid partnership with the federal government, we are ensuring that the Port of Baltimore is well positioned for the future,” said Senator Ben Cardin, who is Chairman of the Senate Environment and Public Works Water Subcommittee and a member of the Transportation and Infrastructure Subcommittee. “Such investments translate into greater activity for the Port and more jobs for Marylanders.”

Senator Barbara Mikulski, who is Chairwoman of the Senate Appropriations Committee, which funds the Department of Transportation, noted, “This public investment in the Port of Baltimore is about jobs, jobs, jobs. … Through construction jobs today, preparing the Port for the bigger ships that will soon be sailing through the widened Panama Canal, we are supporting jobs tomorrow that will keep Maryland’s economy rolling.” �

To read more about the ongoing efforts of Maryland’s congressional delegation to support the Port, see “Taking Charge” on page 18.

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PORT SOUNDINGS

NEWSMAKERS

Coast Guard Yard UndergoesChange in Command

Capt. George Lesher of the United States Coast Guard recently assumed command of the U.S. Coast Guard Yard in Baltimore,

becoming the 41st Commanding Officer in the 114-year history of the shipyard, the Coast Guard’s only shipbuilding and major ship repair facility. Lesher took over upon the retirement of Capt. Richard Murphy, a 30-year Coast Guard veteran who had served as the shipyard’s Commanding Officer since May 2010.

A Change of Command ceremony took place in June at the Yard’s Columbus Recreation Center. Rear Admiral Ronald Rábago, Assistant Commandant for Engineering & Logistics, pre-sided over the ceremony while U.S. Rep. John Sarbanes was among the guest speakers. The Old Line

Brass Quintet of the 229th Army Band, Maryland National Guard provided music.

A native of Schaefferstown, Pa., Lesher joined the Coast Guard as a Direct Commission Engineer after his undergraduate education. Among his many subsequent assignments, he was Commanding Offi cer of the CGC Dependable from 2009 until 2011, when he became the Coast

Guard Yard’s Industrial Manager.Lesher’s personal decora-

tions include two Meritorious Service Medals, four Coast Guard Commendation Medals (with Operational Distinguishing Device), an Achievement Medal (with Operational Distinguishing Device) and several unit awards.

The Coast Guard Yard is an industrially funded, $86 million annual gross revenue business with a workforce of 593 civilian employees and 75 military members. Founded in 1899, the full-service shipyard is responsible

for the repair and modernization of a variety of Coast Guard cutters and for the manufacturing of Coast Guard equipment that provides critical service to the Coast Guard fl eet. �

Before a crowd of 500 guests and the workforce ofthe U.S. Coast Guard Yard, Capt. George Lesher, left,

assumed command of the Coast Guard Yard fromCapt. Richard Murphy, right, in June. Presiding over

the ceremony was Rear Admiral Ronald Rábago,center, Assistant Commandant for Engineering &

Logistics, U.S. Coast Guard.

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SHIPPING

WWL Expands Ocean Service from Mexico

Wallenius Wilhelmsen Logistics (WWL)

has expanded its ocean transportation service from Veracruz, Mexico. As of September, WWL

is offering two to three sailings per month from Veracruz to service the Port of Baltimore and other U.S. East Coast ports. The vessels will then proceed to Europe, calling Antwerp, Bremerhaven and Southampton. The service also offers the capability to connect to routes across WWL’s network

around the world.“WWL is

excited to support manufacturer needs for ocean transportation from Mexico to the U.S. East Coast and beyond,” said Rich Heintzelman, Executive Vice President for Wallenius Wilhelmsen Logistics Americas. “As we see a shift toward greater domestic

manufacturing in Mexico, it will become increasingly important to strengthen export-bound ocean services from Mexico around the globe.” �



ORGANIZATIONS

Council Shares Ideas About Supply Chain Management

Anyone working in the constantly evolving field of supply chain management knows how difficult

it can be to keep up with what’s going on. However, the perfect organization exists here in Baltimore to share pertinent knowledge on an ongoing basis.

It’s the Council of Supply Chain Management Professionals, a national organization that, according to former Baltimore Chapter President Mary Jane Norris, is “committed to keeping those of

Soundings

NEWSMAKERS

Alston Retires Amid Praise for ILA Contributions

The Port community gathered in July to honor the retiring Vice President of the International Longshoremen’s Association (ILA) Local 953, Horace

Alston. The gala luncheon was held at Jimmy’s Seafood Restaurant in Dundalk, a fitting location for its proximity to the marine terminals.

The honoree was joined by family and representatives from every aspect of the Port of Baltimore to pay tribute to Alston’s influential voice for labor.

“As the top African-American official in the Port of Baltimore for more than 25 years, Horace Alston continues to build upon the excellent foundation of his predecessors, Jefferson Davis and Bill Haile,” said Helen Delich Bentley, port consultant and former U.S. Maritime Administration Director. “Every minute of Horace’s union executive position was devoted to keeping labor relations in this port running smoothly.”

Dining on prime rib, crab cakes and Jimmy’s famous seafood pasta, the guests, numbering nearly 100, recalled Alston’s important leadership.

“With his calm demeanor and soothing hand, he resolved many fractious moments without explosive inter-ruptions,” Bentley said. “His presence will be missed by all.” �

IN MEMORIAM

Long-time Union Leader Had Vast Accomplishments

Richard P. Hughes, Jr., who rose from a dockworker in the days before containers and forklifts to lead the International Long-shoremen’s Association (ILA), died in September. He was 79.

“Richie was fearless, but his legendary toughness was always moderated by a classic Irish-American wit,” said Maryland Gov. Martin O’Malley. “He was both a fierce negotiator and caring friend.”

Hughes served as the eighth president of the ILA from July 2007 to July 2011 and then was elected President Emeritus.

“Since beginning his career working on the docks at the Port of Baltimore, Richie Hughes always cared deeply for the men and women of the ILA,” said Maryland Port Administration (MPA) Executive Director James J. White. “As his career advanced within the ILA, he always had the best interests of the rank and file long-shore workers at heart. He had a tremendous amount of industry knowledge and always wanted to get the best deal for the longshore worker without hurting the business. He will be greatly missed.”

A Baltimore native and third-generation dockworker, Hughes began working on the docks in 1954, following in the footsteps of his father, a grain trimmer, clerk and checker at the Port of Baltimore. Back then, goods were shipped in crates that were unloaded by hand. Hughes joined ILA Local 953 in 1957, and was involved in union leadership positions for five decades. He also served for 18 months in the U.S. Navy on the U.S.S. Juneau.

In 1990, Hughes led a strike that protested the layoffs of dozens of checkers; some of those jobs were then restored.

“Rich Hughes’ accomplishments throughout his long career with the ILA were vast and his memory will endure,” current ILA President Harold J. Daggett said.

Hughes and his wife, Wilma Anna “Babe” Hughes, had five children, eight grandchildren and four great-grandchildren, the ILA said. �

us involved in transportation and supply chain management educated and up to date on the latest developments and issues that impact our industry.”

Norris, who is Manager of Port Operations Services for the Maryland Port Administration (MPA), added, “Because we have a diverse membership base, we also have the opportunity to network and learn from each other.”

The Baltimore Chapter, currently led by Houston Mason of McCormick & Co., consists of more than 70 members linked by their shared interest in the herding of freight. Occasionally, members go on tours of such companies as Under Armour, Fila, Clipper City Brewery and Merchants Terminal Corp. (MTC) in order to gain new insights about supply chain management.

Meetings are held once a month

from September to May, during which time a guest speaker is usually present. Past speakers have included Anne Ferro, Federal Highway Safety Administrator; John Porcari, Deputy Secretary of the U.S. Department of Transportation; and Rick Lidinsky, former chairman of the Federal Maritime Commission.

Mel Bafford, Membership Committee Chairman for the Baltimore Chapter, said that monthly meetings are a good opportunity “to network and meet the people who work in the business, from the service to the manufacturing side.” He also noted, “As a major port and distribution area (here in Baltimore), we need to expand our membership and get the word out about us.”

For more information, visit the Council’s Baltimore chapter website, http://baltimorecscmp.org. �


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Soundings

IN MEMORIAM

Former MPA Executive Director Oversaw Opening of Seagirt

Brendan William “Bud” O’Malley — whose term as Executive Director of the Maryland Port Administration

(MPA) coincided with the opening of the Port of Baltimore’s Seagirt Marine Terminal — passed away July 6 at the age of 77.

The $250 million Seagirt terminal opened in 1990, one year after O’Malley had become MPA Executive Director. Previously, he had spent 28 years as Deputy Director of the Port Department at the Port Authority of New York and New Jersey.

After stepping down from his position with the MPA in 1991, O’Malley accepted a spot at Hobelmann Port Services in Baltimore.

Born in Braddock, Pa., O’Malley was a U.S. Army veteran and a husband, father of four and grandfather of eight. �

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SHIPPING

P3 Alliance has Big Potential to Aid Port

The world’s three largest shipping companies — Maersk Line,

Mediterranean Shipping Co. (MSC) and CMA CGM — have announced an alliance dubbed the P3 Network that would boost fleet capacity and reduce operating costs, provided the move passes anti-trust reviews. The alliance could aid the Port of Baltimore with more container traffic, according to Port officials.

Along with Evergreen Shipping Agency America Corp., MSC helped account for a large majority of Baltimore’s container traffic in 2012. The proposed alliance would have a combined fleet of 255

vessels capable of transporting 2.6 million containers, the companies said. If regulatory approvals are obtained, operations will be expected to start sometime next year.

P3 Network shippers would utilize a joint operating center overseeing three trade routes: Asia-Europe, trans-Pacific and trans-Atlantic. A larger percentage of the new network’s capacity is expected to be handled by the Maersk Line, followed by MSC and then CMA. By sharing vessels, the alliance hopes to reduce the number of canceled sailings and offer more direct ports of call.

“Declining volume growth and overcapacity in recent years have underlined the need to improve operations and efficiency in the industry,” the carriers said in a joint statement. “P3 will create value by allowing partners to operate with larger vessels while


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It is with great pleasure that Mitsui O.S.K. Bulk Shipping (MOL) announces the appointment of Mr. Joseph Wojciechowski, as our full-time representative in the Port of Baltimore, effective Monday, 7/29/2013.

Mr. Wojciechowski comes to MOL with a solid background and years of experience in stevedoring and terminal operations. His responsibilities will cover the full scope of MOL’s RORO/Car operations in Baltimore, vessel and terminal operations, equipment control and

customer and vendor relations. In addition to Baltimore, Mr. Wojciechowski will be responsible for MOL’s RO/RO operations in the ports of Philadelphia, Wilmington and Newport News.

Mr. Wojciechowski’s appointment is driven by MOL’s continued growth in the Port of Baltimore and the need for full-time direct involvement in the Port. Mr. Wojciechowski will report directly to MOL’s regional head offi ce in New Jersey.

Please join us in welcoming Mr. Joe Wojciechowski, Port Captain, and Operation Coordinator - Mitsui O.S.K. Bulk Shipping (USA) Inc./Mid-Atlantic area.

Mr. Wojciechowski will be domiciled in the port and can be reached by:

Email: [email protected]

Cell: 732.306.3685

JOSEPH WOJCIECHOWSKI | Baltimore Representative

BY THE NUMBERS

Cargo RecordsThe Port of Baltimore enjoyed another record-setting performance in Fiscal Year 2013 (July 2012-June 2013). “Progress is a choice, and we have made the better choices to invest in the Port of Baltimore,” said Governor Martin O’Malley. “This record-breaking progress demonstrates that the Port continues to be one of Maryland’s greatest economic engines, supporting tens of thousands of jobs for Maryland families.”

9.55 million tons

of general cargo handled by the Port’s public marine terminals (compared to the

previous record of 9.33 million tons set in FY 2012).

direct jobs generated by

business at the Port of Baltimore,

which in turn supports more

than 40,000 jobs (approximately 108,000 jobs in Maryland are linked to port

activities).

for the Port of Baltimore among all 360 U.S. ports for handling autos and light trucks, farm and construction machinery, imported forest products, imported sugar, imported aluminum and imported gypsum. (Baltimore ranks second in the U.S. for exported coal and imported iron ore.)

FY 2013

#1 ranking

14,630improving utilization, leading to significant environmental benefits from reduced bunker consumption.”

While all three shippers would share each other’s vessels, independent sales would be maintained, as would customer service and marketing operations. Furthermore, full ownership of each vessel would be retained.

MSC currently has two years remaining on its contract to bring no fewer than 100,000 containers per year through Baltimore. Officials hope the pending alliance could encourage its two members that don’t yet have a presence here to utilize the Port.

At the very least, Maryland Port Administration (MPA) Executive Director James J. White said he could envision “MSC ships coming here carrying Maersk and CMA cargo in addition to its own,” meaning “more business for us.” �

22,997

exported from Baltimore’s public piers in June 2013 (100

more cars than the record-setting performance of the

previous month).

CARS



Environmental Stewardship at the Port of Baltimore >>>GreenPortBY NANCY MENEFEE JACKSON

Royal Caribbean,WWL Stack the Deck to Reduce Emissions

Royal Caribbean’s Grandeur of the Seas is part of a grand experiment — adapting scrubber technology, which has been used in smoke stacks on land, to

reduce the emissions from a ship’s stack.When the popular 2,200-passenger ship cruises from the Port

of Baltimore up and down the Chesapeake Bay, she is within 200 miles of land. Ships are required, under International Maritime Organization standards, to reduce emissions when they are in an Emissions Control Area (ECA); in the United States and Canada, the ECA encompasses all waters within 200 miles of the coast.

The regulations are aimed at reducing sulfur-oxide emissions from ships.

To date, ships meet the emissions standards by burning a cleaner fuel — but the cleaner fuel is more expensive. Scrubbers might provide a less expensive and more effi cient way to reduce emissions.

“This technology has real potential,” said Rich Pruitt, the Associate Vice President of Safety and Environmental Stewardship for Royal Caribbean Cruises, Ltd. “We think this is superior to shore power.”

Pruitt said that two ships sailing under the company’s Royal Caribbean International brand, Independence of the Seas and Liberty of the Seas, have each had a scrubber installed on one of their six engines.

“It’s a relatively immature technology,” Pruitt said. “On a ship, you have a very, very tight space in which to use it. It’s something that’s relatively new.”

The scrubbers work in a manner similar to a power plant smokestack. Water is sprayed from lots of nozzles, not unlike a shower. The water falls inside the stack, and as it falls, it captures pollutants. The water is collected, and then the pollutants are fi ltered out, after which the cleaned water is discharged overboard. Salt water can be used in the open ocean.

The scrubbers can be installed while a ship is in service, but that requires careful planning. “The Grandeur of the Seas has

four engines, so taking any one out of service is obviously a concern,” Pruitt said. “It’s not off-the-shelf technology — it’s a tremendous job.” He added that the designs of the Liberty and Independence ships’ scrubbers are being reworked, based on real-world experience.

Installation of Grandeur’s scrubber is planned to start sometime next year.

“We’re making sure we’re doing what we can to preserve and protect the natural beauty of the places we take people to,” Pruitt said. “If we’re a party to degrading the beautiful reefs, the tropical islands or the Chesapeake Bay with its blue crabs, then all we’re doing is hurting ourselves — we’d be like a farmer poisoning our fi elds.”

Pruitt pointed out that Royal Caribbean has spent large amounts of money building and retrofi tting its ships with advanced wastewater treatments. It’s all part of the company’s commitment to the environment.

“I live in Florida,” he said. “I swim and I fi sh — the last thing I want to do is damage the environment I live in.”

The technology is also being trialed on cargo ships. A similar system, covering the main engine and fi ve auxiliary engines, was already installed onboard the Wallenius Wilhelmsen Logistics (WWL) M/V Tarago earlier this year. The Port’s largest roll-on/roll-off (ro/ro) carrier, WWL sees the potential for the scrubber both within the ECAs and beyond.

Unlike the cruise lines, WWL operates in an ECA for only

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a portion of its “round-the-world” service. However, future regulation will necessitate the use of compliance solutions, like scrubbers, on the high seas, too.

“While the basic technology is well proven, there is no operational experience with the size and kind of installation required for our type of vessels” said Per Brinchmann, Vice President Technical for Wilh. Wilhelmsen ASA. “So, in line with our continuous effort to explore new technology, we are conducting a pilot project over 2012-2014 to evaluate the design, technical, operational, safety, environmental and regulatory matters related to the scrubber solution.”

Mike Derby, General Manager for WWL’s Environmental Affairs in North America, elaborates further. “WWL is taking a four-stream approach to finding the most sustainable solutions to the sulfur regulation challenge,” Derby said. “Leveraging our years of experience in low-sulfur operation and being proactive in the search for solutions prepares us for a constantly changing regulatory and cost environment and reduces the risk of service disruption when new regulations are implemented.”

In addition to Exhaust Gas Cleaning Systems, such as the one installed onboard Tarago, WWL is examining upstream (fuel) solutions including distillates and <0.5% bunker oil. “The fourth approach,” said Derby, “focuses on alternative energy sources and is what really gets everyone’s imagination going. It includes a wide range of emerging technologies such as solar power and fuel cells, which hold the promise of eventually being able to decouple from fossil fuels altogether. However, the most short- to medium-term potential is thought to lie with natural gas. There are major challenges to be met with each of the four streams, but we believe that by adopting a ‘why not’ mentality we are most likely to find the solutions needed.”

The future of sulfur regulation compliance is not likely to be a one-size-fits-all solution. With forward-thinking companies such as Royal Caribbean and Wallenius Wilhelmsen Logistics, the Chesapeake Bay watershed and the residents of Maryland will benefit from environmental innovation for years to come. �



GREENPORT

The Baltimore Port Alliance (BPA) Environmental Committee led a harbor tour for officials from

the U.S. Environmental Protection Agency (EPA) and the Maryland Department of the Environment (MDE) in July to educate them about the Port of Baltimore’s operations and environmental initiatives.

The daylong tour, which began at C. Steinweg (USA) Inc. and was conducted on a McAllister Towing tugboat, promoted a waterside perspective, highlighting terminals operated by Rukert and CNX, as well as Maryland Port Administration terminals, including North and South Locust Point, the Dundalk Marine Terminal and the cruise ship terminal. Attendees also saw the Masonville Cove dredged materials containment facility.

The tour included a stop for lunch and

a roundtable discussion at the Seagirt Marine Terminal.

Capt. Mike Reagoso, who chairs the BPA Environmental Committee, said the objective of the tour was to build relationships with EPA and MDE staff and educate them about the proactive and sustainable activities that BPA members are undertaking. Participants enjoyed a chance to understand how the Port of Baltimore works and how it differs from other ports, and committee members learned what offi cials see as their objectives for ports. The tour produced a spirit of collaboration, which has already resulted in additional dialogue on emerging port environmental issues.

Participants included: Chris Grundler, EPA Director, Offi ce of Transportation and Air Quality; Karl Simon, EPA Director, Transportation and Climate

Harbor Tour Provides Different Perspective

Division; Jim Blubaugh, EPA Deputy Director, Transportation and Climate Division; Jennifer Keller, EPA Center Director, Legacy Fleet Incentives and Assessment Center; Diana Esher, EPA Region 3 Director, Air Protection Division; Bill Jones, EPA Region 3, Offi ce of Partnership Programs; Kathy Kinsey, MDE Deputy Secretary; Angelo Bianca, MDE Deputy Director, Air and Radiation Management Administration; Marcia Ways, MDE Director, ARMA Mobile Source Program; M. Kathleen Broadwater, Maryland Port Administration (MPA) Deputy Executive Director; Rod Pickens, Wallenius Wilhelmsen, Manager MAT; Eric Nielsen, President, Association of Maryland Pilots; Rupert Denney, General Manager, C. Steinweg; Mike Reagoso, Vice President, McAllister Towing; Barbara McMahon, MPA Manager, Environment and Risk Management; Solomon Egbe, Director, Health, Safety and Environment, Ports America; Dan Spack, Consultant to the MPA, EcoLogix Group; and Steve Pattison, Consultant to the MPA, EcoLogix Group. �

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PORT ADVOCACY

Maryland’s Congressional Delegation Works

Hard to Get Federal Support for the Port

CHARGE Taking

hen Vice President JoeBiden came to the Dundalk

Marine Terminal in early September to announce

that the Port of Baltimore had received $10 million

in federal grant money, he wasn’t alone. Several members of Maryland’scongressional delegation joined him at the podium to be acknowledged for their hard work securing the funding, which is just the latest show of Port support from the delegation and the Obama-Biden Administration. A few months earlier, President Barack Obama was speaking before a crowd gathered at Ellicott Dredges’ South Baltimore headquarters when he, too, took a moment to offer praise. “All of your members of Congress, every single day, are working, fi ghting on your behalf in terms of making sure that we’re growing an economy that creates out-standing middle-class jobs,” President Obama told the crowd. “We’ve got just some extraordinary folks here.” The President then proceeded to outline various economic growth measures, such as boosting efforts to export more goods and services, investing in high-tech manufacturing centers and speeding up the approval process for important infrastructure enhancements. In Maryland, it is a given that any serious con-versation about economic growth must include the Port of Baltimore, which continues to enjoy record-setting cargo numbers. The Maryland

September/October 2013 ■ The Port of Baltimore [19]


congressional delegation recognizes that the Port has long been a valuable economic asset. “We are no Johnny or Janey come lately when it comes to fighting for the Port,” said Sen. Barbara A. Mikulski. “Our delegation has fought over the years for nearly $1 billion covering everything from annual dredging to security. … And why do we fight so hard? Because we believe in jobs. We believe that it is in the Port of Baltimore, the port that has built a city.” Sen. Ben Cardin identified the Port as “a bellwether for our nation’s economic health.” “It handles nearly $60 billion in import and export commerce and is a national leader in automobile imports and exports, as well as handling millions of tons of coal, petroleum, ore and steel each year,” Senator Cardin said. “Through a solid partnership with the federal government, we are ensuring that the Port of Baltimore is well positioned for the future. Consistent federal investments translate into greater activity for the Port and more jobs for Marylanders.” The Port of Baltimore generates more than 14,600 direct jobs, while about 108,000 jobs in Maryland are linked to port activities. The Port accounts for $3 billion

in personal wages and salary and more than $300 million in state and local taxes. It’s a force to be reckoned with. “The Port of Baltimore is a tremendous economic engine that supports over 100,000 jobs and keeps Maryland’s economy on the move,” said U.S. Rep. John Sarbanes (Dist. 3). “I will keep fighting for federal investments in dredging the harbor and related infrastructure projects so the Port can continue to thrive and keep its spot

has a significant impact on the economy of the entire East Coast,” Congresswoman Edwards said. While tackling issues such as dredging, homeland security and the environment, Maryland’s congressional delegation remains committed to working hard on Capitol Hill for the Port of Baltimore. “Maryland’s members of Congress each have individual strengths, but their ability and desire to work together as a team

“And why do we fight so hard? Because we believe in jobs. We believe that

it is in the Port of Baltimore, the port that has built a city.” ~ Senator Barbara A. Mikulski

U.S. Rep. Elijah Cummings spoke when Vice President Biden came to the Port of Baltimore, while seated behind him were, from left, Baltimore Mayor Stephanie Rawlings-Blake, U.S. Rep. John Sarbanes and U.S. Rep. C.A. Dutch Ruppersberger.

as one of the most productive on the East Coast.” U.S. Rep. Donna F. Edwards (Dist. 4) praised the Port’s public marine terminals for handling a record 9.55 million tons of cargo in fiscal 2013. “With such volume, the Port plays a vital role in Maryland’s economy, and also

makes them one of the strongest and most productive congressional delegations in the country,” Governor Martin O’Malley said. As a senior member of the Committee on Transportation and Infrastructure and former Chairman of the Subcommittee on Coast Guard and Maritime Transportation, U.S. Rep. Elijah E. Cummings (Dist. 7) said

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he understands how important America’s ports and merchant marine are to the success of the nation’s economy. “Nationally, I have authored legislation to strengthen the application of the Jones Act that ensures cargoes carried between U.S. ports move on U.S. vessels and I am hopeful that the Transportation Committee will consider a long overdue Water Resources Development Act this fall” Congressman Cummings said. “Closer to home, I was very pleased to support the development of the University of Maryland’s Maritime Environmental Resource Center, which is one of only a handful of centers in the United States, working to test systems being developed to reduce the spread of invasive species in ships’ ballast water.” U.S. Rep. Andy Harris, M.D. (Dist. 1) recalls serving on the Maryland State Senate Education, Health and Environmental Affairs Committee that oversaw issues related to the Port. “I saw firsthand how critical the Port of Baltimore is for the well-being of Marylanders,” said Congressman Harris. “Now, in Congress, I see how critical the Port is for the nation, and I’m glad to be continuing my advocacy on behalf of the Port of Baltimore.” Among 360 U.S. ports, Baltimore is the top-ranked handler of roll-on/roll-off (ro/ro) cargo, trucks, imported forest products and

imported gypsum and sugar. As Senator Cardin mentioned, it also stands as the largest automobile exporter and importer in the country. But what’s next? How is the Port being impacted by the President’s National Export Initiative? How prepared is the Port to handle the larger ships soon to arrive via the expanded Panama Canal? And what are the major challenges the Port faces to remain competitive regionally and globally? These are just some of the questions being addressed by Maryland’s congres-sional delegation.

NATIONAL EXPORT INITIATIVE

As outlined in the President’s 2010 State of the Union address, the National Export Initiative makes it a priority to remove trade barriers overseas and overcome hurdles for American companies entering new markets. The President has mandated twice as many exports by 2015. “One essential part of the federal government’s responsibility to enable international trade is to provide ample resources that ensure our transportation infrastructure — not only our ports, but our roads and rails — are ready and able to handle an expanded flow of goods,” Senator Cardin said. “We can’t double

our exports unless U.S. companies are physically able to get their products out the door. This is what makes the passage of the WRDA [Water Resources Development Act], which supports our port and inland waterway infrastructure, essential to our export economy.” Along with the making the WRDA a reality, U.S. Rep. C.A. “Dutch” Ruppersberger (Dist. 2) noted several other actions that Congress can take, such as: protecting “common-sense investments” like adequate funding for dredging and maintenance, ensuring that funds from the Harbor Maintenance Trust are used only for their intended purpose, and adopting a national strategy to incentivize U.S. manufacturing and train workers for the modern economy. “Especially during these difficult economic times, we must focus on expanding our exports to create and retain high-quality, high-paying jobs here in Maryland and the United States,” Congressman Ruppersberger said. “The government has a role to play in maintaining sound trade policy, opening new markets and in supporting infrastruc-ture,” said U.S. Rep. John Delaney (Dist. 6). “My top priority in Congress is making our economy more competitive globally, and that will require training world-class workers, allowing our businesses to thrive, and

Announcements of federal support for the Port of Baltimore have resulted in appearances by U.S. Rep. C.A. Dutch Ruppersberger (at left

behind Gov. Martin O’Malley) and Sen. Barbara Mikulski.

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an ability to transport goods.” According to U.S. Rep. Chris Van Hollen (Dist. 8), the federal government plays a critical role in supporting the National Export Initiative, which includes “the crafting and implementation of international trade policies that promote the export of American-made goods and services, enforce international agreements, investigate unfair trade practices to protect U.S. companies both here and abroad, and advise U.S. companies on the beneficial provisions of trade agreements.” While encouraged that “we are nearly halfway there” toward the Initiative’s goal of doubling exports by 2015, U.S. Rep. Steny Hoyer (Dist. 5) would like to move the process along with the adoption of his “Make It In America” plan. “This plan includes a range of bills that would make it easier for manufacturers to access domestic and international markets by investing in infrastructure, enforcing trade laws and providing targeted assistance to help businesses compete successfully in global markets,” Congressman Hoyer said. “I’m hopeful that the House will take up Make It In

America legislation this Congress so we can meet the President’s goal and help businesses access and move their products to new markets.” PANAMA CANAL EXPANSION

During his Ellicott Dredges trip, President Obama reiterated the importance of investing in American shipping channels and ports so that the country will be ready for the new business from the expanded Panama Canal. “The Panama Canal is being revamped … so that it can accommodate even bigger ships,” said President Obama, “and these cargo ships are so big that if we don’t remodel our ports here in the United States, they can’t dock at our ports. They’ll dock someplace else. We’ll lose that business.” Thanks to the public-private partnership between the Maryland Port Administration (MPA) and Ports America, Maryland’s congressional delegation is confident that improvements recently made at the Seagirt Marine Terminal have put Baltimore in a great position to pick up that business. “Many of us have worked with five governors to deepen our channels, to make

sure these super ships could come to the Port,” Senator Mikulski said. “We have this harbor that is open to the world, and we’re going to make sure it stays open. … We are ready to rock and roll, and to roll on and to roll off. We are ready!” “Currently, two East Coast ports, including the Port of Baltimore, have the 50-foot-deep channel and 50-foot-deep berth needed to accommodate large ‘mega-ships,’” Congressman Hoyer said. “I believe we must continue making the investments needed to accommodate this new business. Maryland’s commitment to the expansion of the Port of Baltimore, especially the public-private partnership that led to the new 50-foot-depth berth and supersized container cranes, ought to serve as a model for other states.” “Led by Senator Mikulski and Senator Cardin, Team Maryland works hard every day to improve Maryland’s Transportation network from fighting for funds to keep our shipping channels open to investing in critical highway and transit projects,” said Maryland Transportation Secretary James T. Smith, Jr. “All of these projects work together to create jobs and spur economic development throughout the State.”

Left, U.S. Rep. John Sarbanes speaking at Masonville Cove.

Above, Sen. Ben Cardin (at far left) during a cruise-related event.

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Senator Barbara A. Mikulski (D)

Committee on Appropriations – Chairwoman

Subcommittee on Commerce, Justice and Science – Chairwoman

Subcommittee on Defense

Subcommittee on State, Foreign Operations and Related Programs

Subcommittee on Transportation, Housing and Urban Development

Subcommittee on Labor, Health and Human Services, Education and Related Agencies

Committee on Health, Education, Labor and Pensions

Subcommittee on Children and Families

Subcommittee on Primary Health and Aging

Select Committee on Intelligence

Senator Benjamin Cardin (D)Committee on Environment and Public Works

Subcommittee on Water and Wildlife – Chairman

Subcommittee on Clean Air and Nuclear Safety

Subcommittee on Transportation and Infrastructure

Committee on Foreign Relations

Subcommittee on East Asian & Pacifi c – Chairman

Subcommittee on African Affairs

Subcommittee on Near Eastern and South and Central Asian Affairs

Committee on Finance

Subcommittee on Health Care

Subcommittee on Taxation and IRS Oversight

Subcommittee on Social Security, Pensions and Family Policy

Committee on Small Business and Entrepreneurship

Commission on Security and Cooperation in Europe – Chairman

Congressional Committee Work

Here is information regarding committee assignments for Maryland’s U.S. Senators and Congressional Representatives as part of the 113th Congress:

Both Congressman Sarbanes and Congressman Delaney echoed the importance of investing in dredging and the transportation infrastructure. “Working with my colleagues in the Maryland congressional delegation, we will provide federal resources to keep the Port properly dredged so that modern cargo vessels can enter and exit safely,” Congressman Sarbanes said. “We are also committed to eliminating chokepoints

in the rail and highway infrastructure that service the Port. By making these investments now, we can help secure our economic future.” “From the beginning, our state has prospered when we’ve had the ability to connect the coast with the interior, right back to the days of the C&O Canal.” Congressman Delaney said. “I introduced bipartisan legislation, the Partnership to Build America Act, to help fi nance

infrastructure projects like these. This will increase economic effi ciency and make the U.S. more competitive in global trade.”

REMAINING COMPETITIVE

Even with record-setting cargo numbers, important upgrades at the Seagirt Marine Terminal, heightened environmental aware-ness, improved processes that make it one of the

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District 5

District 6

District 7

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most secure ports in the nation and other successes, the Port of Baltimore can’t be taken for granted if it is to remain competi-tive with other East Coast ports. “One of the major challenges facing the Port of Baltimore has been the lack of steady funding from the Maryland Transportation Trust Fund to help meet its capital needs,” Congresswoman Edwards said. “For example, the Howard Street Tunnel is too small toaccommodate double-stacked rail cars, thus limiting the amount of goods that can be transported out of the Port. Hopefully, federal, state and local funding, as well as public-private partnerships, will focus on providing dedicated revenue streams to address such capacity-limiting issues.” MPA Executive Director James J. White spoke of the tremendous amount of gratitude owed to “our very hard-working congressional delegation.” “They are a very important part of pushing this Port forward,” White said. “We’ve become a national leader in the benefi cial use of dredge material and have become one of the most secure seaports

DISTRICT 1

CongressmanAndy Harris (R)

Committee on Appropriations

Subcommittee on Commerce, Justice and Science

Subcommittee on Labor, Health and Human Services, Education and Related Agencies

Subcommittee on Legislative Branch

Congressional Ports Opportunity, Renewal, Trade and Security (PORTS) Caucus

DISTRICT 2

Congressman C.A.Dutch Ruppersberger (D)

House Permanent Select Committee on Intelligence – Ranking Member

Congressional Ports Opportunity, Renewal, Trade and Security (PORTS) Caucus – Co-Chair

DISTRICT 3

CongressmanJohn P. Sarbanes (D)

Committee on Energy and Commerce

Subcommittee Commerce, Manufacturing and Trade

Subcommittee on Health


DISTRICT 4

CongresswomanDonna F. Edwards (D)

Committee on Transportation and Infrastructure

Subcommittee on Highways and Transit

Subcommittee on Water Resources and Environment

Subcommittee on Economic Development, Public Buildings and Emergency Management

Committee on Science, Space and Technology

Subcommittee on Space – Ranking Member

Subcommittee on Environment

in the U.S. thanks in large part to their as-sistance. We’re very fortunate in Maryland to have a lot of our congressional team in critical leadership positions on Capitol Hill as well. That’s not only good for the Port of Baltimore, it’s good for our state.” The MPA-Ports America partnership that produced the 50-foot-deep berth at

Engineers, continue to invest in these types of improvements throughout the country to maintain international competitiveness.” “Maryland has a geography and topog-raphy which makes the Chesapeake Bay particularly susceptible to the adverse effects of erosion,” Senator Cardin said. “Every year, the U.S. Army Corps of

“Keeping this Port open and the channels dredged is essential not just for Maryland

but for the nation.” ~ Senator Ben Cardin

Seagirt is a key step toward remaining competitive. “Maintaining the 50-foot depth is essen-tial, however, widening the channel to allow for two-way traffi c of the larger ships will continue to be a challenge,” Congressman Ruppersberger said. “It is important that Congress, through the Army Corps of

Engineers clears tons of eroded sediment from the federal navigation channels that lead into and out of the Port of Baltimore. Keeping this Port open and the channels dredged is essential not just for Maryland but for the nation.” “I am concerned that funds collected through the Harbor Maintenance Tax, being



held in the Harbor Maintenance Trust Fund, have not been allocated,” Congressman Harris said. “Realizing the importance of this issue, especially to Marylanders, I remain committed to mitigating the damage caused by shallow boating chan-nels and utilizing resources available to the [Army Corps of Engineers].” Congressman Harris said he supports the Realize America’s Maritime Promise (RAMP) Act, which would essentially mandate that the Corps use those trust fund dollars “for dredging projects instead of holding onto the funds or using them for other things.” “Maryland has worked to increase public-private partnerships, but the federal government needs to maintain its invest-ments in infrastructure and port security,” Congressman Van Hollen said. “Congress must pass a Water Resources Development Act to continue funding the Poplar Island environmental restoration project and allow for continued maintenance dredging in the Port’s shipping lanes.” The Maryland Congressional Delegation

is working together in support of legislation like the RAMP Act and WRDA that benefi ts Maryland’s high priority dredging projects, such as Poplar Island and Poplar Island Expansion. They know that these dredging projects are crucial to maintain the 50-foot deep channels so the new Panamax ships can reach the Port’s new 50-foot berth and the 400-foot cranes. Their efforts also helped the Port receive a $10 million in federal grant through the U.S. Department of Transportation’s Transportation Investment Generating Economic Recovery (TIGER) program. When Vice President Biden visited in September to announce that the Port had secured the TIGER grant, he was joined by U.S. Transportation Secretary Anthony Foxx and Deputy Secretary John Porcari, as well as Senators Cardin and Mikulski and Congressmen Cummings, Ruppersberger and Sarbanes. “This investment, which will expand the movement of freight while supporting jobs and adding to our State’s economic growth, is precisely the kind of improvement the

DISTRICT 5

CongressmanSteny Hoyer (D)

Minority Whip

DISTRICT 6

CongressmanJohn Delaney (D)

Committee on Financial Services

Subcommittee on Financial Institutions and Consumer Credit

Subcommittee on Oversight and Investigations

Joint Economic Committee

DISTRICT 7

CongressmanElijah E. Cummings (D)

Committee on Oversight and Government Reform – Ranking Member

Committee on Transportation and Infrastructure

Subcommittee on Coast Guard and Maritime Transportation

Subcommittee on Highways and Transit

Joint Economic Committee


DISTRICT 8

CongressmanChris Van Hollen (D)

Committee on Budget – Ranking Member


TIGER program was created to make,” Congressman Cummings said that day. “I’m on the Appropriations Committee,” said Chairwoman Mikulski, “and we’ve put the Port in the federal checkbook.” “We appreciate the grant today, we’re going to work for funding tomorrow and we’re going to keep at it,” Senator Mikulski said. “We’re going to keep at it by working with President Barack Obama and his team to make sure that we’re number one in in-frastructure and number one in the world.” But the Senator also noted that it takes more than dollars to make a business successful. “We’re proud of the men and women of the Port of Baltimore — the tugboat operators, the longshoremen, the crane operators, the truckers, all of those who every day in every way are out there working hard, sweating to get the job done, to make sure that we send cargo out there and unload cargo back here,” Senator Mikulski said. �

READ MORE about Vice President Biden’s Port visit on page 8.


Railroad PORT INTERMODAL

Port and Rail Partners Keep Improving Cargo Movement

[26] The Port of Baltimore ■ September/October 2013

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BY NANCY MENEFEE JACKSONTies

September/October 2013 ■ The Port of Baltimore [27]

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Railroads are one of the ties that bind a ship’s cargo to its shore-side destinations. While a major seaport certainly needs deep-water berths and channels, the rail lines that carry everything from automobiles and farm machinery to coal and grain are equally vital for a successful port.

The Port of Baltimore and its rail partners, CSX and Norfolk Southern, are constantly looking for innovative ways to improve the movement of cargo, whether it’s adding track that can withstand unusually heavy cargo or creating a new intermodal facility.


Dundalk Heavy-Lift Berth Upgraded With‘Direct To Rail’ Feature

Shippers often ask a port if they can go “direct to rail,” meaning they are able to hoist their heavy cargo from a

ship directly to a rail line built to handle it. At the Port of Baltimore, the answer was always a qualifi ed yes: The Dundalk Marine Terminal offered a heavy-lift berth with a heavy rail track, but to get to that berth, the trains needed to cross other rail lines that weren’t as heavy. For such project cargo, port offi cials calculated the weight per axle. If the weight per axle was too heavy for those crossings, more axles could be added — but that cost the shippers more money. Now, the answer to the “direct to rail” question is an unequivocal yes: At the end of July, the Maryland Port Administration (MPA) opened its new fast-land track — a separate heavy rail spur that runs along Dundalk Berth 5/6 without crossing other tracks

and also surpasses the tonnage capacity of the Class 1 railroads that serve the Port. “This completes our heavy-lift berth at the Dundalk Marine Terminal and allows direct rail loading to and from ships,” said Sam Azzarello, General Manager of Logistics for the MPA. “Shippers routinely ask if they can do direct rail, which saves the shipper a lot of money.” The new E80 track on the

terminal supports a railcar at 80,000 pounds per axle (a Class 1 railroad maximum load is 71,500 pounds per axle), providing a seamless connection from ship to rail and vice versa. Dundalk Berth 5/6 has deep water, more than 2,000 feet of railroad track and accepts rail service 24 hours a day. Both CSX and Norfolk Southern move cargo through the terminal. �

On average, each person in theU.S. requires the

movement of approximately

40 TONS OF FREIGHTEVERY YEAR.

[Source: U.S. Department of Transportation Federal Railroad

Administration]

DidYou KNOW?

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The planning process for the proposed intermodal container transfer facility at the existing CSX Mount

Clare rail yard is nearly done — and, if approved, the facility should be completed by 2015 and begin operating by 2016. “The current schedule still projects a 2015 opening,” said Leif A. Dormsjo, Deputy Secretary of the Maryland Department of Transportation (MDOT). “However, the schedule for a project of this complexity and with so many de-velopment partners is, by its very nature, dynamic.” The two-year construction phase is not expected to create any service interruptions for customers. Following the selection of the Mount Clare site, CSX continues to work closely with the City of Baltimore, State of Maryland and community and business leaders on plans to transform the existing rail yard into an intermodal facility that features the latest in cutting-edge technology. The proposed facility will allow cargo that moves through the Port of Baltimore to be loaded onto double-stacked trains, effectively bypassing the antiquated Howard Street railroad tunnel. The tunnel, built in 1895, is too low to accommodate double-stacked containers. The world has changed considerably since that tunnel was built, and containerized cargo has

prompted the development of the National Gateway, a track network that can accommodate double-stacked rail cars. “The terminal will open new markets for shippers through the Port of Baltimore and will contribute to improve effi ciency throughout the Mid-Atlantic region,” said Louis Renjel, Vice President, Strategic Infrastructure Investment, CSX. When CSX was looking for sites for the facility, Baltimore Mayor Stephanie Rawlings-Blake supported the project and invited CSX to explore city locations. “Over the last several months, CSX, along with the City of Baltimore and MDOT, have engaged in a high level of dialogue with local property owners and stakeholders to complete a number of planning activities,” said Dormsjo. “These activities include the completion of planning-level design plans, traffi c impact study and other similar activities.” The plans now call for CSX to expand the footprint of the existing rail yard. The expansion will contain a number of elements, including the facility entrance; additional rail lines; truck routing and parking; and stormwater management facilities. Development of the intermodal terminal will create jobs and economic development opportunities throughout construction and operation of the new facility. Dormsjo noted that early in the planning process, the surrounding

community expressed concern that the original proposal for the truck entrance would route trucks through predominately residential streets. After working with the City in examining the alternatives, CSX revised the project’s design to keep trucks away from residential streets and instead route them through existing industrial areas. The next step is permitting, which is expected to take about nine months, and then construction could begin in early 2014. CSX has chosen Milord as the design-build contractor to develop the terminal. As an additional benefi t, by relocating the intermodal facility, the Port of Baltimore will be able to redevelop the Seagirt property for denser container storage. “When completed, the new facility will allow containers coming into the Port of Baltimore to travel on CSX’s double-stacked National Gateway into Midwestern markets currently much more diffi cult to reach,” Dormsjo said. “This Gateway project will increase the attractiveness of the Port to shippers seeking to reach these markets. The benefi t also extends to exported containers originating in these Midwestern markets and leaving from the Port of Baltimore.” Said Renjel, “CSX looks forward to working with its shipping part-ners, local business leaders and the Port of Baltimore to fully leverage this expanded gateway to the import and export markets.” �

Plans Continue For Intermodal Facility With Double-Stacking Capability


[30] The Port of Baltimore ■ September/October 2013

Already ranked first among 360 U.S. ports for the

number of automobiles and light trucks it handles, the Port of

Baltimore recently welcomed yet another major auto customer.

Mazda North American Operations (MNAO) arrived in September

after agreeing to a five-year contract with auto processor AMPORTS.

The agreement will bring approximately 65,000 vehicles per year to

Maryland from Mazda’s assembly plants in Japan. >>>

MazdaMakesMove

PORT AUTOS

Japanese Automaker’s Agreement with AMPORTS Shifts Imports Through Baltimore


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“Mazda is honored to call the Port of Baltimore its new home for all of its vehicle imports in

the Northeast.”


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The addition of Mazda, which had been previously imported through New Jersey, is expected to create 450 new jobs in Baltimore, including 160 direct jobs. “We are very happy to welcome Mazda to the Port of Baltimore,” said Maryland Transportation Secretary James T. Smith, Jr. “As the number-one auto port in the nation, the Port of Baltimore is also one of our state’s leading economic generators. As Maryland’s economy continues to grow, the Port is again demonstrating why it is a leader in our state for bringing in new business and jobs.” Mazda vehicles that are expected to come through Baltimore include the MX-5 Miata, Mazda 2, Mazda 6, and the Mazda CX-5 and CX-9 SUV lines. The vehicles will be handled at the 109-acre, AMPORTS-owned Chesapeake Auto Terminal in Fairfield. “Mazda is honored to call the Port of Baltimore its new home for all of its vehicle imports in the Northeast,” said Robert Davis, MNAO Senior Vice President, Operations. “The decision for Mazda to move ports makes sense for our business, and we look forward to growing this relationship.” AMPORTS President and CEO Steven E. Rand commented, “We are thrilled to have Mazda in Baltimore,” and added that AMPORTS has a “long-standing relationship with Mazda” that includes back-of-plant operations at the automaker’s soon-to-open Salamanca, Mexico, plant. Baltimore’s automobile imports were up 9 percent in the first six months of 2013 compared to the same period in 2012. Last year, the Port’s public and private terminals handled a nation’s-best 652,000 vehicles. “All the major Japanese automakers now use the Port of Baltimore as a port of entry to distribute their vehicles,” noted Larry Johnson, Maryland Port Administration (MPA) Trade Development, Autos. “The addition of Mazda will increase ship calls, provide more hours for the International Longshoremen’s Association and more business for auto haul-away trucking. This move reinforces the fact that Baltimore is the best location for the automotive business in the country.” �


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PORT BUSINESS

BY NANCY MENEFEE JACKSON Photography by Kathy Bergren Smith

How do you transition a historic company with revenues of $1 million into a $20 million force in today’s global market?

Scott Menzies, CEO and President of The Terminal Corporation, cites an early embrace of technology, good labor relations, diversification and a little luck: “Part of it is being in the right place at the right time with the right solutions,” said Menzies, who owned the company with his brother, John “Jock” Menzies, III, until Jock’s death in a tragic accident this summer. The Terminal Corporation started in 1893 as a Pennsylvania Railroad subsidiary, with warehouses in Fells Point, downtown and East Baltimore. In the 1960s, Terminal

TERMINAL VELOCITYWarehousing and Logistics Company is Fast to Find Solutions for Customers

was purchased by Scott and Jock’s uncle, Allen Menzies, and their father, John T. Menzies, Jr., who had worked for a food company that used Terminal to warehouse canned goods. In 1981, Scott and Jock bought the company, which was selling its

more modern, single-story warehouses, where Jock indulged his interest in technology. “Jock was a real pioneer,” Menzies recalled. “He was adamant that we go from pencil and paper to a computerized

The Terminal Corporation has 125 employees whose average tenure is more than 10 years, and operates 65 trucks, 22 of which it owns.

older, multi-story warehouses, from their father and uncle. “We always tell everybody that they sold the assets and we bought the liabilities,” Menzies said. The brothers moved the company into

system.” Jock implemented software on an IBM System 3 Model 6 computer, and the brothers later started a company, T-Logic, to sell one of the first public warehouse management systems nationally to other warehousing companies.



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Although that software is outdated today, The Terminal Corporation continues to embrace the latest technology, offering customers a sophisticated warehouse management system using real-time radio frequency scanning for inventory management and control. Success also resulted from solid relationships with labor. The Terminal Corporation has 125 employees whose average tenure is more than 10 years, and operates 65 trucks, 22 of which it owns. “People know what they need to do and they just do it,” said Thomas Huesman, President, Terminal Transportation Services. “We’re a family of employees, not a number.” As Menzies noted, “Jock and I took a teamwork approach. Anybody can rent buildings and forklifts, but it’s the people who make it happen on the floor. We always had a partnership with our associates, whether it was union or non-union. We always treated everyone as equal business partners. A service industry is driven by its people.” Under the brothers’ stewardship, the company expanded into forest products. In 1988, they started Tartan Terminals, a stevedoring business specializing in forest products. “We were having issues with quality and damage control,” Menzies said, “and

Scott Menzies, above, is CEO and President of The Terminal Corporation. Opposite page, Terminal Transportation Services President

Thomas Huesman, right, talks with Lead Company Driver Randy Evans.


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we felt that if we were going to have all of these forest products, we had better be able to handle the paper products from producer to consumer.” The brothers also owned 50 percent of Balterm, which handles pulp and paper products. By 2008, The Terminal Corporation had grown to a $28 million business, with Balterm doing another $28 million. Scott was the managing partner of Balterm for 20 years until they sold their share of it to their Canadian partners, Logistec Stevedoring, in 2009. But a housing crash was looming, one that would slash the demand for forest products. “One of the mandates Jock and I gave to each other was to diversify,” Menzies said. The Terminal Corporation added a robotic packaging line for bagged salt and expanded into handling metals, grains and spirits. That diversity allowed the company to survive the recession. Today, Terminal has long-standing relationships with South American and European companies and runs a contract operation for CEVA, which handles BMW parts. It boasts 1.5 million square feet of storage space, with warehouses in Canton, Dundalk, Jessup and Southeast Baltimore, where it has a contract operation for Northrop Grumman. Just as Terminal once embraced tech-nology, today it implements environmental initiatives, using “super singles,” light-weight trailers, and electric- or propane-powered forklifts. The company is studying the use of natural gas-powered trucks. No matter how successful, though, a warehousing and distribution company needs a strong port, and the Port of Baltimore is key to Terminal’s growth. “Baltimore is the perfect import/export port,” Menzies said. “Baltimore is a great gateway, being 150 miles inland.” Added Huesman, “The Port of Baltimore has a great location in terms of its connec-tion to the Midwest. You’re served by two major railroads, and scores of trucking companies run to the Midwest.” Menzies also praised the Maryland Port Administration for its investment in both strategy and infrastructure. “The Port administration has a strate-gic planning entity that does a wonderful job of creating the infrastructure you need


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to stay ahead of the curve,” he said. “When we were building our business and focus-ing on paper products, at the same time the Port spent $200 million on berths and buildings and improvements.” Both Menzies and Huesman praise the Port community’s cooperation. “Anytime the Port community comes together to address or strategize about

Jock Menzies’ Humanitarian Legacy

While the Port of Baltimore community mourns the loss of John “Jock” Menzies, III, his legacy lives on in a humanitarian relief group he helped to organize. After Hurricane Katrina, Jock used his expertise in logistics to co-found The American Logistics Aid Network (ALAN), a nonprofi t organization that facilitates a smooth supply chain for relief efforts following natural disasters and enlists the help of major corporations. ALAN was most recently involved in efforts to assist the New York-New Jersey region following “Superstorm Sandy” in October 2012. Jock died in an accident at his home in August. He was 69.

an issue, they seem willing to do that,” Menzies said. “What really makes it work is the community itself, both the maritime community and the trucking companies,” Huesman said. “We work together closely. Freight-forwarders from other markets are amazed because we get it done and they don’t have to worry about their cargo.”. �


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4TH IN AN OCCASIONAL SERIES

PORT PRIVATE TERMINALS

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Terminal Director Patrick Mangin, above, oversees the conveyors and

chutes that move coal on the CNX Marine Terminal.


The Port of Baltimore and its rail network have long connected America’s heartland with the global marketplace. Nowhere is this link more solid than between the coal mines of Appalachia and the CNX Marine Terminal. Each day, hundreds of

railcars arrive at the waterfront direct from the coalfi elds for unloading and exporting.

CNX Setting Records for Coal Exports

From Mine To Marine Terminal


http://www.consolenergy.com

STORY AND PHOTOGRAPHY BY

KATHY BERGREN SMITH


The CNX Marine Terminal, owned and operated by CONSOL Energy, is the largest exporter of any cargo in the Port of Baltimore, in 2012 topping 12 million tons. Based in Pittsburgh, Pa., CONSOL Energy is the largest producer of coal east of the Mississippi River. The CNX Marine Terminal is the only coal terminal on the U.S. East Coast served by two railroads, Norfolk Southern and CSX. A recently completed expansion of rail access at the Canton facility has increased effi ciency and capacity at a terminal that is setting records for coal exports. “This is a very exciting time to be working here,” said Patrick Mangin, who was recently named Terminal Director at the 700-acre facility, which employs 75 CONSOL Energy workers and about 25 contractors in specialized trades. The rail expansion resulted in the addition of a fourth outbound track to the terminal to balance the four inbound tracks. The railroads made far-reaching adjustments in order to accommodate the increased traffi c as coal exports have grown in recent years. Norfolk Southern has invested millions of dollars in lighter-weight rail cars to carry more coal to the piers. A sophisticated inventory tracking system can now save workers from checking each car as it arrives in Baltimore to identify its contents. All of this is to support a global demand for the coals that CONSOL Energy’s long-wall mines produce, deliver, blend and load onto ships bound

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for 17 different countries. Meanwhile, CONSOL Energy is matching its investment in infrastruc-ture improvements with an investment in safety and environmental stewardship that has created a culture of personal responsibility and ownership among the employees. Mangin, a recently retired U.S. Army officer, noted that amid all the action of a 24/7 operation, the terminal does not lose sight of its core values of safety and compliance. “CONSOL Energy’s corporate culture is one of values, not priorities,” he said. “Priorities change, values do not.” The CNX Marine Terminal has com-pleted a water treatment system that captures all the water on the terminal, directs it to limestone-lined ponds and runs it through baffle curtains to separate coal finds from the water so that it can be safely discharged into the Patapsco River after testing. This innovative system is one of many high-tech improvements to the terminal. The water captured by the ponds is generated by a system of sprayers that are activated based on wind direction and speed to keep dust down. Soon, that water will be pumped from the river rather than taxing the Baltimore City supply, thanks to a new system of pumps the terminal has devised. “People view coal as a primitive commodity that is handled using low-tech methods that have not changed in a century,” said Mangin. “Nothing could be further from the truth.” Mangin explained that the huge quan-tities of coal that move from the rail cars to ships must be first sorted and stored on the yard. Moving the coal around the yard is a series of conveyors that meet at two transfer stations. Here, the coal can be moved to the ship loader or to the stacker conveyor for storage. CONSOL Energy noted that some grades of coal tended to get clogged in the chutes of the transfer stations. Using 3D modeling, engineers found the choke points in the chutes and recommended redesigned chutes lined with ceramic tile to keep the coal flowing. “It is much safer now that the inci-dences of clogging are reduced by the new chutes,” said Mangin, “and efficiency is increased.” Mangin added, “I am proud to be part of a team that takes such pride in its accomplishments and holds itself to high standards.” �

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PORT PERSON

Having worked in the cruise industry in Baltimore for 11 years, Cindi Schuman is sure about one thing. “I love my job,” she said. “Cruising

and cruise ships have a glamorous appeal. People are always interested in what I do.” Schuman is Operations Manager for Intercruises Shoreside & Port Services, a company that provides comprehensive turnaround, port agency and shore excursion operations to cruise companies throughout the world. Having begun as a check-in agent, Schuman has worked her way up to the point where she now oversees all matters relating to cruise ships calling in Baltimore. “On a daily basis, we strive to provide our cruise line customers with a smooth and seamless turnaround operation,” she said. “On the ground-handling side, the cruise line guests are very important to us. Baltimore has a very loyal cruising population, so their boarding experience is our number-one priority.” As the ground handler, Intercruises

BY MERRILL WIT T YPhotography by Kathy Bergren Smith

SMOOTH CRUISE OPERATORSchuman Handles Passengers with Care

“On a daily basis, we strive to provideour cruise line customers with a smooth and

seamless turnaround operation.”



handles all guest services, such as airport transfers, check-in and boarding, while maintaining the cruise lines’ policies. “We aim to provide the guests with a pleasant arrival and departure experience,” Schuman said. On the port agency side of the operation, Intercruises offers all modes of shoreside support to cruise line customers and their crew. “For example, we oversee the pierside operations like provisioning of the ship, bunkering, dealing with CBP [U.S. Customs and Border Protection] and USCG [U.S. Coast Guard], and coordinating labor, security and pilots,” Schuman said. “We assist with all matters concerning the crew members, including transportation, crew medical appointments, etc. We often serve as a personal shopper for the ship, sourcing last-minute items or products they need.” Prior to working in the cruise sector of the maritime community, Schuman, a Maryland native who is married and living in Sykesville, was a travel agency owner. When Intercruises bought the company that was handling cruise operations in Baltimore, she was already in the position. In 2011, Intercruises won a local cruise line’s award for Best Guest Logistics Staff of the Year, and Schuman was singled out. At the time, Maryland Port Administration (MPA) Executive Director James J. White congratulated not only Schuman and Intercruises, but also “all of our International Longshoremen’s Association labor and security cruise terminal partners.” “A lot of people work very hard to enhance the overall cruising experience and make sure our cruise terminal is a safe and easily accessible facility,” White said. “We will continue to do whatever needs to be done to maintain the high level of expectations that guests expect from us.” Schuman called the award “quite an honor,” and she’ll never shrink from high expectations. “I am excited about the future of the cruise industry in Baltimore,” she said. “We provide an exceptional product that has been proven successful to our cruise line customers and their guests. These operational successes make Baltimore a perfect homeport location and have us poised for future growth.” �

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Sentosa Leader ArrivesFor Loading of Cargo

A pure car and truck carrier in the NYK Line (North America) fl eet, the M/V Sentosa Leader loaded cargo at Baltimore’s Dundalk Marine Terminal in July. Flying the fl ag of Singapore, the vessel measures 179.9 meters in length and 32.2 meters in width, and has a cargo capacity of 5,195 standard car units.

Agent: Inchcape Shipping ServicesStevedore: Ceres Marine TerminalsTowing Company: Moran Towing of Maryland

New Bahri VesselComes to Baltimore

The M/V Bahri Hofuf, built by Hyundai MIPO in South Korea and put into service in April, arrived for the fi rst time at the Port of Baltimore in July. The vessel has a size of 26,000 DWT and is one of a new breed of “RoCon” ships that are lighter weight and consume 45 percent less fuel than their predecessors, yet have more cargo-lifting capability. The Bahri Hofuf carried general cargo — roll-on/roll-off, breakbulk and containers.

Agent: Bahri General CargoStevedore: Ports AmericaTowing Company: Moran Towing of Maryland

Attending the Bahri Hofuf wheel ceremony were, from left, Chief Engineer Dmytro Bozhek, MPA’s Rick Schiappacasse, Master Ramadan Hashhoush, National Sales Manager Charles Atkinson and Chief Offi cer Patryk Krasowski.

The NYK Sentosa Leader wheel ceremony included, from left, Matthew Lyneis of Inchcape, Capt. Subrata Mallick Eden, MPA’s Lawrence Johnson, Bill Wade of Ceres and NYK’s Scott Senko.

MAIDEN VOYAGES

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port VIEW

In the icy waters of the Patapsco River, Baltimore Gas and Electric tugboats are shown here making their rounds to the various power plants in the harbor. The fi rst tug, likely the G&E #2, is breaking a path for the second tug and two

coal-laden barges. Built in 1910, the #2 was 80 feet long and powered by steam. Baltimore Gas and Electric operated its own fl eet of tugs and barges delivering coal and oil from the company’s base in

STORY BY KATHY BERGREN SMITH

The above photograph is provided courtesy of the Baltimore Museum of Industry and is part of the museum’s BGE collection. Visit the Baltimore Museum of Industry at 1415 Key Highway on the south side of the Inner Harbor; check out

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Tugs Tackle Icy Patapsco

Westport throughout the 20th century. This photo, taken circa 1944, shows a typical winter harbor view of the tugs delivering coal to the coal-fi red plants in Pasadena and Baltimore. Today, coal is still delivered by barge, but BGE has contracted with independent tugboats to make the deliveries. The last of the G&E tugs, #4, is still in service in the harbor, owned by Vane Brothers.


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