portside magazine - winter 2010

www.portsofindiana.com

A Ports of Indiana Publication · Winter 2010

3 ports – 2 waterways – 1 man: CGB’s Gary Hosack has had a colorful career at all three of Indiana’s ports, pg. 6

Evansville Western Railway grows business by keeping things personal, pg. 7

HWY H2O connects the world to the Midwest, pg. 10

3 ports – 2 waterways – 1 man:

iNSiDe tHiS iSSUe:

Shipments hit 15-year high at Mount Vernon port

Shipments hit

YEAR INREVIEW

www.1si.orgWant some help in taking your business to the next level?

Contact Kathleen Crowley at [email protected] or call 812-945-0266

Tie-in to business resources.

“1SI helped tie us into the tax credits, tax abatement programs and workforce training grants we needed to expand our business at the Port of Indiana-Jeffersonville.”

Chuck Moore, President, Eagle Steel Products, Inc.on completion of $3 million expansion at the company’s 270,000 square foot riverfront facility in Jeffersonville.

www.portsofindiana.com · Winter 2010 3

tABLe oF coNteNtS

PORTS OF INDIANA CONTACT INFORMATIONRich Cooper, Chief Executive Offi cer(317) 232-9200; rcooper@portsofi ndiana.com

Matt Smolek, Port Director - Jeffersonville(812) 283-9662; msmolek@portsofi ndiana.com

Phil Wilzbacher, Port Director - Mount Vernon(812) 833-2166; pwilzbacher@portsofi ndiana.com

Peter Laman, Port Director - Burns Harbor(219) 787-5101; plaman@portsofi ndiana.com

Jody Peacock, Director of Corporate Affairs(317) 233-6225; jpeacock@portsofi ndiana.com

David Haniford, General Counsel(317) 232-9204; dhaniford@portsofi ndiana.com

Tony Walker, Controller(317) 233-6227; twalker@portsofi ndiana.com

Liz Folkerts, Communications Specialist(317) 232-9205; lfolkerts@portsofi ndiana.com

John Hughes, Engineering Director(219) 787-8045; jhughes@portsofi ndiana.com

Warren Fasone, Security Manager(219) 787-5056; wfasone@portsofi ndiana.com

150 W. Market St., Ste. 100, Indianapolis, IN 46204(317) 232-9200 / fx (317) 232-0137 / info@portsofi ndiana.com

www.portsofi ndiana.com www.indianalogistics.com

SUBSCRIBE TO PORTSIDE!Sign up now and receive your free copy of Portside Magazine. Register online at www.portsofi ndiana.com or contact Liz Folkerts (317) 232-9205; lfolkerts@portsofi ndiana.com

FROM THE CEO2009: A year in review ...................................................................................................... 4

NEWS & NOTES ........................................................................................................ 5Threat of Asian Carp in Great Lakes stirs debateMarkland Lock reopening scheduled for MarchIn Memoriam

3 ports – 2 waterways – 1 man: CGB’s Gary Hosack has had a colorful career at all three of Indiana’s ports ........ 6Evansville Western Railway grows business by keeping things personal ............... 7

FROM THE BOARD ROOM .......................................................................................... 8Commission approves $10.5 million for dock work at Burns Harbor

ENVIRO•FOCUSFederal Marine Terminals charting a course for “greener” seas ............................... 9

PORT REPORTSBurns Harbor: HWY H2O connects the world to the Midwest .................................. 10Mount Vernon: Shipments hit 15-year high in 2009 .................................................... 11Jeffersonville: OmniSource recycles scrap steel from port companies .................. 12

FOREIGN TRADE ZONES Ports of Indiana makes FTZ history ........................................................................ 13

Ports of Indiana Directory ...................................................................................... 14

Th e Port of Indiana-Jeff ersonville not only has year-round waterborne access to world markets via the Ohio and Mississippi Rivers, it also connects to I-64, I-65 and I-71 via I-265, is served by CSX and Louisville-Indiana rail service and is less than 15 miles from both Louisville International Airport and Clark Regional Airport.

4 · Winter 2010 PORTSIDE MAGAZINE

2009: A Year in ReviewShipments increase despite challenging economy

Last year was one of those years we’ll long remember, but unfortunately not necessarily for all the right reasons. It was one of the most diffi cult business environments anyone can remember. But thanks to innovative and determined port companies and plenty of hard work, the Ports of Indiana fi nished the year with slight increases in tonnage over 2008. Th e Port of Indiana-Mount Vernon led the way, with a nearly 20 percent gain over last year due to increases in coal, steel and grain shipments.

In Mount Vernon, the port had its highest annual tonnage in 15 years and third highest total since opening in 1976. Coal, the port’s largest cargo, was up 32 percent over 2008. Steel tonnage was up six times 2008’s total thanks to a combined eff ort between the port and Consolidated Terminals and Logistics Co. in developing new steel business.

Overall, the Ports of Indiana ended the year nearly 7 percent ahead of 2008 in tonnage and fi nished the year with its highest shipping volume for a quarter since 2006. Th e two

largest cargoes to move through Indiana’s three ports – grain and coal – had signifi cant increases. Twenty-seven percent more coal and coke passed through the Burns Harbor and Mount Vernon ports in 2009 than 2008 and grain was up across the board; 15 percent ahead of last year. Salt was also up considerably at all three ports – a 53 percent increase over the previous year.

Th e Port of Indiana-Jeff ersonville fi nished the year with 1.4 million tons, roughly the same as its 2008 total. Salt imports were the highest ever for the port. Shipments were up by 62 percent due to the restocking of supplies wiped out by the previous harsh winter. More than 50 percent of the cargo that moves through the port is grain, which increased 18 percent from the previous year.

At Burns Harbor, grain shipments were six times the 2008 total. As salt prices decreased by almost half, the tons moving through the port increased by 42 percent.

While the numbers say a lot, bright spots for our organization went beyond tonnage fi gures. Th e Burns Harbor port showed its innovation and

expertise in handling unusual project cargoes as wind turbines and a giant cancer-fi ghting cyclotron were moved across its docks in 2009. At the Port of Indiana-Mount Vernon, rail storage was doubled with the addition of three new storage tracks. In Jeff ersonville, we welcomed Matt Smolek as the new port director and in his short time he’s brought new energy and new ideas to grow our business.

Recently, we have had more inquiries from businesses considering our ports and this is encouraging. It appears our economy may be ready to turn the corner. Th e Ports of Indiana weathered the storm with some of Indiana’s fi nest companies and together, with our world-class business partners, look forward to the opportunities in front of us in 2010.

FROM THE CEO

Rich CooperChief Executive Offi cer, Ports of Indiana

Th e Port of Indiana-Burns Harbor handled two shipments of wind turbines in 2009. Each blade measured 132-feet long by 10-feet high by 6-feet wide.

In Memoriam:Commissioners and port staff extend their heartfelt sympathy to Commissioner Marvin Ferguson and family on the recent passing of his daughter Joni Lee Ferguson. She was born May 2, 1956, in Beech Grove, Ind. She was a 1976 graduate of the University of Indianapolis nursing program, and she loved the water. She was a competitive swimmer in her childhood and later became a certifi ed scuba driver. Services were held Jan. 12 in Indianapolis.


Asian Carp have been moving up the Mississippi River system for decades. Currently, there are electric barriers on the Chicago Sanitary and Ship Canal to prevent the fi sh from migrating into Lake Michigan. No carp – dead or alive – have been found north of the barriers in Romeoville, Ill., but recently traces of carp DNA were found between the barriers and Lake Michigan. Th is discovery prompted some groups to call for closing of the shipping locks connecting the Great Lakes to the Mississippi River system, which would stop all barge shipments between the two waterways and deal a devastating blow to the already struggling regional economies. Known for their voracious appetites, Asian Carp were originally brought to the U.S. in the 1970s to help prevent algae buildup. Th ere is concern the carp would overrun native species if they reach Lake Michigan, disrupting the fi shing industry. Michigan’s attorney general fi led a lawsuit in December against Illinois and the U.S. Army Corps of Engineers to immediately and temporarily close the canal. Th e U.S. Supreme Court denied the request to take immediate action in January. Federal legislation is also being proposed to close the locks. Th e canal moves millions of tons of cargo each year. Between 1990 and 2009, the Port of Indiana-Burns Harbor handled 439 barges that moved through the Chicago-area locks, with a business revenue impact of more than $351 million. Th e American Waterway Operators and Waterways Council Inc. released a statement in January that said, “Th e regional economy would be devastated if the Chicago-area locks were closed. Millions of tons of critical commodities, such as coal for utilities, petroleum for heating homes and fueling vehicles and airplanes, and road salt, currently move through the Chicago-area locks, and thousands of American jobs depend on regional waterborne commerce. Closing the locks will also strike a blow to regional air quality because commodities will be shifted onto trucks and rail, which are much less fuel-effi cient than barge transportation.” Built in 1900, the canal was meant to prevent pollution in Lake Michigan by reversing the fl ow of the Chicago River. It was named a “Monument of the Millennium” by the American Society of Civil Engineers in 2001. Experts have stated that closing the canal could cause regional fl ooding in Chicago and northwest Indiana. Steve Fisher, executive director for the American Great Lakes Ports Assoc., sent a letter to the U.S. Army Corps of Engineers voicing strong opposition to the closure of Chicago’s navigation infrastructure because of its importance to regional economies. He also pointed out there are four other non-navigable waterways connecting to Lake Michigan that are not regulated. “While non-native carp present a unique challenge to resource managers, we urge the federal government to resist the hysteria surrounding this issue and move cautiously and thoughtfully to address this problem,” Fisher said. “Construction of electronic barriers on the Chicago Sanitary and Ship Canal are an important eff ort to protect the Great Lakes. We urge the Corps to prioritize and fund additional solutions that protect the Great Lakes while also maintaining navigation.”

NeWS & NoteS

Ports employees celebrate milestones Four Ports of Indiana employees reached signifi cant anniversaries with the company in 2009. Brian Seig, operations manager at the Port of Indiana-Jeff ersonville, started at the company in 1989. Regina Alexander, Executive Assistant, celebrated 10 years. Randy Kennedy, operations manager at the Port of Indiana-Mount Vernon, and Bonnie Underwood, administrative assistant at the Jeff ersonville port, each marked fi ve years.

Markland Lock reopening scheduled for March According the U.S. Army Corps of Engineers, the main chamber at Markland Locks and Dam on the Ohio River will reopen in March if repairs continue on course. Located near Louisville, Ky., the lock has been closed since Sept. 27 when a gate collapsed. Since then, the 600-foot auxiliary lock, which is half the size of the main chamber, has been handling all river traffi c. Approximately 1,200 vessels have moved through the locks since its closure. “A lot of progress has been made and commerce continues to move on the river,” said Gene Dowell, the locks and dam operations manager for the U.S. Army Corps of Engineers’ Louisville District. “Th e entire team has been working really hard to ensure the auxiliary lock stays open and to repair the gate leaves.” Th e Markland Board of Investigation found the lock failure was caused by a valve malfunction that allowed water to fl ow into the lock chamber while the gates were closing. Th e gates were not completely sealed and diff erences in water pressure forced the gates past the closed position, which ultimately caused the failure. Since the gate leaves were damaged in the failure, the Corps says welders and repair crews have worked two 10-hour shifts 13 of every 14 days to complete the structural repairs. “If the river continues to run low, we plan to fi nish the work, rehang the gates and return the lock chamber to service by March 1,” said Louisville District Commander Col. Keith Landry.

Between 1990 and 2009, 439 barges moving to or from the Port of Indiana-Burns Harbor went through the Chicago-area locks.

Threat of Asian Carp in Great Lakes stirs debate

Brian Seig 20 years

Regina Alexander10 years

Randy Kennedy5 years

Bonnie Underwood5 years


CGB’s Gary Hosack has had a colorful career at all three of Indiana’s ports

CGB terminal manager Gary Hosack has worked at all three of Indiana’s ports. He moved to the Port of Indiana-Jeff ersonville late last year.

(Clockwise from left) Th e Port of Indiana-Jeff ersonville, the Port of Indiana-Burns Harbor circa 1983 (Photo courtesy of Gary Hosack) and the Port of Indiana-Mount Vernon.the Port of Indiana-Burns Harbor circa 1983 (Photo courtesy of Gary Hosack) and the Port of Indiana-Mount Vernon.

3 Ports · 2 Waterways · 1 Man

Gary Hosack’s career in the grain industry and logistics has taken him many places: Illinois, Virginia, Louisiana, Kentucky... and all three of Indiana’s ports. Hosack recently completed the Ports of Indiana trilogy when he became the manager of Consolidated Grain and Barge (CGB) at the Port of Indiana-Jeff ersonville in October of 2009. Hosack also worked for CGB at the Mount Vernon port and with Cargill at the Port of Indiana-Burns Harbor. “To the best of our knowledge, Gary is the fi rst person we know of who has worked at all three of our ports,” said Ports of Indiana CEO Rich Cooper. Hosack fi rst began his career with Cargill in 1974 at its Chesapeake, Va., facility. He moved around to various Cargill facilities, landing at the Port of Indiana-Burns Harbor as plant manager in 1983. Th e facility just opened a few years before and one of Hosack’s projects was to add winches on the dock. One of his most memorable moments came during a February storm in 1984. “After we loaded two barges, we checked the weather and a storm was coming in straight out of the north,” Hosack said. “Th e storm kept coming closer and closer. We began calling any tug service, including Great Lakes Towing which usually came to pick up the big ships. Even the Coast Guard. No one could help us out. We had 15 foot swells inside the port walls.” According to Hosack, waves were so high that instead of crashing into the port’s breakwall, they rolled right over it. Winds were up to 70 mph and the overspray from the waves was freezing on land, creating an ice slick. “Two other guys and I tried to keep the barges tied, but as they rode the waves, the lines would snap,” Hosack said. “We would have

to crawl on our bellies 40 or 50 feet because it literally was a sheet of ice. I lay on my stomach and the boys held my ankles so I could lasso the cleats. We went through 70 or 80 lines that day.” Th roughout the day, the barge companies kept bringing them more ropes. Hosack and his coworkers put on new lines every 45 minutes from 6 a.m. one morning to 1 a.m. the next day. “By 1 a.m. that morning, the last barge broke away,” Hosack said. “Th e lids came off , they took on water and down they went.” Hosack began working with CGB in 2004. In 2008, he became the regional operations manager at Mount Vernon where he found an old buddy from his Cargill days – Phil Wilzbacher, who had since became port director at the Port of Indiana-Mount Vernon. “I fi rst met Gary in the mid-1980s when we both were with Cargill,” said Wilzbacher. “Over time and transfers, we were off in diff erent directions, but after 20 years, our paths crossed again. It’s been my pleasure to have the opportunity to work with him again. Gary’s still a take charge, make a decision and get the work done type but with an ability to have some fun while doing business.” During his time in Mount Vernon, Hosack was involved in the addition of a grain loading conveyor, 651,000 bushel grain bin and about 6,000 feet of rail track to the port’s infrastructure. “Having now worked in all three of Indiana’s ports the thing that stands out most in my mind is the working partnership between the companies, the port personnel and the companies’ staff ,” Hosack said. “Th ey work together for the common goal of increasing business opportunities and improving the facility, and often working for solutions to do both.”


EVANSVILLE WESTERN RAILWAY GROWS business by keeping things personal

3 Ports · 2 Waterways · 1 Man

In a time when many businesses were struggling to stay on track, Evansville Western Railway broke the trends by keeping things simple: emphasize customer service and invest in infrastructure. Th e strategy paid off . Business grew by 13 percent in 2008 and last year the railway was recognized by CSX for the highest carload growth out of the 220 short-line railways that connect to CSX. While carloads declined across the industry in 2009, Evansville Western’s numbers fell nearly 10 to 20 percent less than the industry average. Th e Evansville Western Railway is a full-service railroad operating on 125 miles of rail between Evansville, Ind., and Okawville, Ill. Evansville Western is headquartered and managed from Mount Vernon, Ind., which is its main terminal for origin and destination of trains. Th e Port of Indiana-Mount Vernon is served by the railroad, with 7-day-a-week switching service available to all port tenants. In 2009, the railroad moved 30,000 railcars through the port. Evansville Western off ers Class I interchanges with Union Pacifi c, BNSF and CSX and has potential interchanges with Canadian National and Norfolk Southern. “Th e Ports of Indiana view the Evansville Western not just as a vital service provider but a crucial business partner,” said Phil Wilzbacher, port director at the Port of Indiana-Mount Vernon. “In 2009, 4.58 million tons moved through the port – seventy-fi ve percent of this tonnage involved rail. We have a very cooperative working relationship.” When setting out to grow its business, Evansville Western looked to companies that

were already customers. Th e focus on customer service allowed the railroad to increase shipments in the coal and grain industries through existing customer channels. “Th e people make a diff erence,” said Larry Davis, vice president of marketing and sales at Evansville Western. “Customer service has to do with the willingness of the employees to go the extra mile and do the right thing. Th ere is an entrepreneurial spirit here. I believe that attitude permeates the entire organization top to bottom.”

Another element of Evansville Western’s service is real-time event reporting. Each locomotive has an on-board computer where the train crew enters data. Th e data is transmitted wirelessly to the company’s host computers and put on the website: www.evwr.com. “Th e information is immediately available in our system for billing, inventory control and status checks, and on the website,” Davis said. “From the website, customers can inquire about car locations,

view their railcar inventory, request switch movements and bill cars, not unlike shopping on the internet.” Th e company expects further growth in 2010. Abengoa Bioenergy recently opened an ethanol plant east of Mount Vernon and shipped its fi rst cars via the railroad in November. Evansville Western also expects to open a connection to a new coal mine later this year. Th e business has 41 employees, most who live in Posey County. “It is a small company,” Davis said. “Employees live there, work there. I liken small railroads to boutique shops. Both are small, local and dedicated to customer service. Both want to better the community.” Since its inception in 2005, Evansville Western Railway has invested $18.5 million in track, structures and equipment to provide safe and effi cient service, but also with future growth in mind. “We needed to spend money to get the railroad up to speed,” Davis said. “It was sorely needed.” Some of Evansville Western’s current capital improvement projects include additional sidetracks which will lighten congestion. Th e company is also reinforcing bridges and track structure. Th is will increase the track’s weight limit from 263,000 pounds to 286,000 pounds across the majority of its track. Currently, 286,000-pound track is only available from Evansville to Woodlawn, Ill. “We are investing in the future,” Davis said. “Th is railroad is in an area that is very attractive to industrial development. If we succeed, that area succeeds. If the port can grow, we can grow. We want to be ready.”

Evansville Western Railway is a full-service railroad operating on 125 miles of rail between Evansville, Ind., and Okawville, Ill. Photos courtesy of Evansville Western Railway and Brian Wiggins.


Commission approves $10.5 million for dock work at Burns Harbor

Offi cers for 2010 were elected at the Ports of Indiana commission meeting in December. Ken Kaczmarek was re-elected as chairman. Greg Gibson was elected vice-chairman after Marvin Ferguson stepped down from the position. Ferguson had served as secretary treasurer, vice-chairman and chairman over the past 14 years. Jay Potesta and Ports of Indiana Controller Tony Walker retained the positions of secretary/treasurer and assistant secretary. Ken Kaczmarek was appointed to the commission by Gov. Mitch Daniels in 2005 and has served as chairman of the commission since February 2006. A South Bend native, he is a partner with Elliott & Associates, an investment fi rm in Bloomington. Kaczmarek holds a bachelor’s degree in accounting and a M.B.A. from Indiana University. He is a certifi ed public accountant and a member of the American Institute of Certifi ed Public Accountants and the Indiana CPA Society. Kaczmarek played football at Indiana University and was an All-American on the Hoosiers’ 1968 Rose Bowl team, ranked fourth in the nation. In his last game at Bloomington, he caused a fumble near the goal line in the fi nal seconds to secure Indiana’s victory over Purdue University and seal their Rose Bowl bid. He is married to Linda Whitlow Kaczmarek and they have three children. Greg Gibson was fi rst appointed to the Ports of Indiana commission by Gov. Mitch Daniels in 2006. A resident of Terre Haute, Ind., Gibson has owned and developed several privately held companies which were later sold to publicly owned companies located throughout the United States. He has served on the Indiana Judicial Commission, which is responsible for the nomination of judiciary candidates for the Indiana Supreme Court and the Indiana Court of Appeals. Gibson has a bachelor’s degree in civil engineering from Rose Hulman Institute of Technology and serves on the board of trustees of Rose Hulman. He also currently serves on the board

Ken Kaczmarek Marvin Ferguson Ramon Arredondo David Fagan H.C. “Bud” FarmerGreg Gibson Phil McCauley Jay Potesta

In December, the Ports of Indiana commission awarded $10.5 million in contracts for repair and reconstruction of the west arm dockwall at the Port of Indiana-Burns Harbor.

INDIANAPOLIS – Th e Ports of Indiana commission approved contracts for one of the largest infrastructure projects in recent history at its December meeting. Two contracts totaling $10.5 million were awarded for dock work at the Port of Indiana-Burns Harbor. Albin Carlson & Co. of Addison, Ill., was awarded a $6.8 million contract to repair 260 feet of dockwall and reconstruct an additional 1,600 feet on the west harbor arm of the port. Th e bid also includes placing stone on the harbor bottom of the entire 1,860 foot span. L.B. Foster Co., of Oak Brook, Ill., was awarded a contract for the purchase of steel sheet piling used in the dockwall repair. Both contracts were awarded to the lowest bidders. A contract was approved with Martin Associates for a comprehensive economic impact study of Indiana’s three ports. Th e Ports of Indiana conduct an economic impact study every four to six years. Martin Associates has developed more than 250 studies for ports throughout the U.S. and Canada. Th e commission ratifi ed a utility agreement between the U.S. Steel Corp., Northern Indiana Public Service Co. and the Ports of Indiana involving the 57-acre tract of available land at the Port of Indiana-Burns Harbor.

Th e Ports of Indiana 2010 operating budget and the annual audit were also approved at the meeting. Crowe Horwath will perform the audit, which it has done since 1993.

Commission offi cers elected; Gibson new vice-chairof directors for First Financial Bank and its holding company First Financial Corp. He is involved in several charitable organizations including the Methodist Health Foundation, the Bird-Gibson Sports Center, Hospice of the Wabash Valley and the Vigo County Convention and Visitors Bureau. Jay K. Potesta was elected secretary/treasurer for the Ports of Indiana commission in 2005 and serves as a special advisor to the board. Potesta was previously a commissioner for the Ports of Indiana and he currently serves as business manager and fi nancial secretary for Sheet Metal Workers Local Union No. 20. A native of Northwest Indiana, he has a bachelor’s degree in music education from VanderCook College and an associate’s degree in labor studies from Indiana University. Now a resident of Indianapolis, he and his wife Pamela have two children and two grandchildren. Potesta is a vice president of the Indiana State Building Trades Council and the Indiana State AFL-CIO. He is president of the Great Lakes States Council of Sheet Metal Workers. Potesta serves as trustee or on the board of many organizations, including the Statewide Health & Welfare Fund and the Statewide Joint Apprenticeship and Training Trust. He is a Master Mason and a Shriner with the Orak Shrine in Michigan City. “Th e governor has appointed some of Indiana’s best and experienced business leaders to our board,” Ports of Indiana CEO Rich Cooper said. “Ken and Jay have served in leadership roles on our board for several years now and re-election by their peers validates the outstanding job they’ve been doing. Marvin’s experience as a steel executive and CEO carried over in his role as chair and vice-chairman of our board. Greg hit the ground running as soon as he joined us and we are lucky to have someone of his caliber to follow Marvin Ferguson as vice-chairman.”


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Environmental issues are very important to the Ports of Indiana.As a port authority, the Ports of Indiana has the dual responsibilityof protecting and enhancing our environment while building infrastructure that facilitates economic development.

Federal Marine Terminals charting a course for “greener” seasPort stevedore launches plan to reduce emissions and prevent pollution

E n v i r o • F o c u s

Federal Marine Terminals is working to make the blue seas “greener”.... environmentally-speaking, of course. Federal Marine Terminals (FMT) recently announced a new environmental policy that outlines methods to reduce the environmental impact of moving cargoes. Th e company has served as the stevedore at the Port of Indiana-Burns Harbor since 1999, and its parent company, Fednav, is the largest international shipper on the Great Lakes. While environmentally-conscientious actions are not new to FMT, this is the fi rst time it has been spelled out in a fi rm and formal policy, which can be viewed online at www.fmtcargo.com. “We believe in it,” said Michel Tosini, executive vice president of FMT. “It is part of the philosophy of the company. We are committed to reducing our environmental footprint.” According to Tosini, newly-purchased equipment is required to have the latest emission technology in an eff ort to minimize greenhouse gases. Older equipment is being retro-fi tted or retired. Th ese upgrades will continue as new technologies are developed. “Our fl eet in Burns Harbor is as clean as it can get,” Tosini said. “We’ve already installed catalytic muffl ers to our folk lifts that reduce emissions. We are using equipment that has the latest technology.” A “no-idling” policy has also been enacted in FMT terminals.

Th is applies to the company’s equipment as well as trucks loading cargo at FMT’s facilities. “We have signs at the terminals stating ‘No idling’ and we actively enforce this,” Tosini said. “Th e policy may be considered a pain, but it is required at our terminals.” Each FMT terminal also has a spill management plan designed to avoid runoff of hazardous material into nearby waterways. Machinery is washed in a containment area with a wash pad and is refueled in a designated area. FMT has also been working to reduce dust emissions by keeping outside bulk cargoes covered or spraying them with a fi ne mist as needed. Handling will even stop if it is deemed too windy. “Waterborne shipping is the most environmentally-friendly mode of transportation and it’s important to have sound operating policies so we can keep it that way,” said Peter Laman, port director at the Port of Indiana-Burns Harbor. “FMT has set the standard for being an environmental steward on the Great Lakes.”

Federal Marine Terminals (FMT) operates 10 terminals across the Great Lakes and Eastern Seaboard, including one at the Port of Indiana-Burns Harbor. With over four decades of experience operating stevedoring facilities, FMT is an industry leader handling breakbulk, bulk, contain-erized, project and general cargos. www.fmtcargo.com


PORTAGE, Ind. - HWY H2O is not your typical highway, but it moves cargo just the same. It is made up of the St. Lawrence River, the St. Lawrence Seaway and the Great Lakes and links the Midwest to the outside world. While more than 300 million tons of cargo travel the “highway” each year, it is currently only at 50 percent of its capacity. Th e HWY H2O organization helps develop its global connection with representatives working to promote the highway’s benefi ts in Europe and China. As with any HWY H2O representative, the overseas reps’ tasks include promoting the facilities, working with seaway stakeholders and building strategic alliances. HWY H2O’s China representative is Naran Andreyev. An American, Andreyev spent most of his life in New Jersey, but Shanghai is now home. London native Alan Taylor is the European representative. “On a day-to-day basis, I am available to fi eld inquiries and queries from potentially new and existing customers and with up to a seven-hour time diff erence between continental Europe and some of the port partners, a European offi ce can be a distinct advantage,” Taylor said. According to Taylor, other benefi ts to his location just outside of London are that he can arrange and attend meetings throughout Europe more quickly and less expensively than other HWY H2O staff . He also keeps up on changing European Union and local state legislation and so he can lobby when necessary. While Taylor is the sole HWY H2O rep in Europe, Andreyev works with the staff of Logistics Plus China. He is the managing director of the freight forwarder and logistics provider. Th e business acts as the Asia corporate offi ce for HWY H2O. “I have a staff of nine in Shanghai, two in Shenzhen and two in Kazakhstan,” Andreyev said. “Th is diversity really helps us as together we speak seven diff erent languages and represent the cultures of Asia, the Americas and Europe.” Th e location does have its challenges. According to Andreyev,

his staff still works everyday to educate Asia on the benefi ts of the St. Lawrence Seaway. “Th e biggest challenge so far has been to help people to see the world as a global environment,” Andreyev said. “In essence, we are showing them the viability of a system 8,000-plus miles away and localizing the value of this system to them. Like people everywhere around the globe, their focus is usually based on tangibility or what is directly in front of them.” For Taylor, people involved in the shipping industry are familiar with the Seaway system, but it is often overlooked. He says it is a matter of getting people outside of their comfort zone. “Companies with limited shipping experience and seeking to ship products to or from North America will not normally know too much about the system at all and would therefore traditionally gravitate towards the large East Coast or U.S. Gulf ports,” said Taylor. “Educating them is of paramount importance.”

To learn more about HWY H2O, visit www.hwyh2o.comContact Peter Laman at (219) 787-5101; plaman@portsofi ndiana.com

PORT OF INDIANA – BURNS HARBOR

Highway H2O connects the world to the Midwest

HWY H2O overseas representatives Naran Andreyev (left) and Alan Taylor speak at the 2009 HWY H2O Conference at Toronto. Photo courtesy of the St. Lawrence Seaway Management Corp.

PORTREPORT

Peter LamanPort Director

(Right) Th e St. Lawrence Seaway, referred to as HWY H2O, extends 2,340 miles from the Atlantic Ocean to its western point at Duluth, Minn. Image courtesy of the St. Lawrence Seaway Management Corp.


MOUNT VERNON, Ind. - Th e Port of Indiana-Mount Vernon shipped more cargo across its docks in 2009 than any other year since 1994. Th e Ohio River port handled about 4.6 million tons in 2009, a 20-percent increase over the previous year and the third-highest total since the port opened in 1976. Th e increase was driven by a 32-percent increase in coal shipments but there were also signifi cant increases in grain and steel. For the fourth consecutive year, Consolidated Grain & Barge has reported an increase in business for the company’s soybean processing facility at the port. During 2009, CGB completed replacement of key processing equipment that further improved the plant’s effi ciency. In 2009, steel shipments were six times the previous year’s total. Th e increase was a result of an alliance between Consolidated Terminals and Logistics Co. and the Ports of Indiana. CTLC operates the port’s 58,000-square-foot overhead crane terminal, and the two organizations jointly market the facility to attract new business.

Kenco celebrates 60 years in business Kenco Logistic Services, which operates the Mead Johnson Nutrition facility at the port, celebrates its 60th anniversary this year. Founded in 1950 in Chattanooga, Tenn., the company is now one of the nation’s leading third-party logistics providers with over 200 clients. Th e 600,000 square-foot facility at the port was built in 1999 and serves as a distribution center for the Mead Johnson Nutrition plant in Evansville, Ind. Th e facility employs 127 people and moves more than 30 truckloads daily. Th e company was started by brothers-in-law Jim Kennedy, Jr., and Sam Smartt, Sr., with one 100,000 square-foot facility. Today Kenco owns over 100 facilities with more than 25-million square feet in 32 states and Canada. Th e business has stayed in the family, with the founders’ son and nephew, Jim Kennedy III, at the helm as an owner and chairman.

Contact Phil Wilzbacher at (812) 838-4382; pwilzbacher@portsofi ndiana.com

PORT OF INDIANA – MOUNT VERNON

PORTREPORT

Phil WilzbacherPort Director (Above) Th e Port of Indiana-Mount Vernon handled six

times more steel in 2009 than the previous year.

(Above) Kenco Logistic Services, which operates the Mead Johnson Nutrition facility at the Port of Indiana-Mount Vernon, celebrates its 60th anniversary in 2010. Founded in Chattanooga, Tenn., with one facility, the company now owns over 100.

Coal Shipments increased by 32 percent at the Port of Indiana-Mount Vernon last year.

Shipments hit 15-year high in 2009


JEFFERSONVILLE, Ind. - Th e Port of Indiana-Jeff ersonville really is a one-stop steel shop. With more than a dozen companies providing a range of complementary steel processing and handling services, there is bound to be plenty of scrap. You may not see its signs all over the port, but OmniSource is almost omnipresent when it comes to steel recycling at the Port of Indiana-Jeff ersonville. OmniSource Corp. is one of North America’s largest processors and distributors of scrap and secondary metals. It is a wholly-owned subsidiary of port company Steel Dynamics Inc. (SDI) and operates out of the SDI location at the port. Founded in Fort Wayne, Ind., more than 65 years ago, OmniSource has more than 70 locations in the U.S. and Canada – including 22 throughout Indiana. Scrap metal recycling is big business. According to OmniSource, it is estimated to be a $20 billion industry in the U.S., with metal recyclers handling roughly 120 million tons of materials each year. Th e manufacturing and construction industries create scrap metal as a by-product. Scrap metal processors take this by-product and recycle it into new raw materials. It is cheaper than mining new materials, more environmentally-friendly and can be reused numerous times. OmniSource recycles almost all of the steel scrap generated at the port. It collects the material and sends it by rail to one of SDI’s processing facilities. Company-wide, OmniSource handled 5.6 million tons of recycled steel in 2008. Along with OmniSource and SDI, seven other port companies either create scrap, process steel or use steel-derived scrap iron in their manufacturing process. New Face at SDI Jordan Breiner became the new plant manager at Steel Dynamics in November. He has been with Steel Dynamics for 13 years and prior to that he worked for National Steel. Most recently he was the casting manager of SDI’s Flat Roll Division in Butler, Ind. Breiner enjoys cycling and he and his wife Julie will be relocating to the Jeff ersonville area in the near future.

International demand drives increase in CGB grain shipments In 2009, Consolidated Grain and Barge (CGB) handled 26.6 million bushels of grain – its highest total since 2006. According to Gary Hosack, manager of the Jeff ersonville CGB facility, the reason for this successful year is the shifting worldwide supply and demand for agricultural products. Th e U.S. had more grain volume due to larger crops than many other countries. Th e low shipping rates, due to the economic downturn, also kept grain moving. CGB is a grain and bulk commodities stevedore which also provides an array of services for farmers, including fi nancing, risk management, buying, storing, selling and shipping of grain. Th e company has more than With 70 locations throughout the middle section of the country, including the ports in Jeff ersonville and Mount Vernon.

Contact Matt Smolek at (812) 283-9662; msmolek@portsofi ndiana.com

OmniSource recycles scrap steel from port companies

PORT OF INDIANA – JEFFERSONVILLE

PORTREPORT

Matt SmolekPort Director

Jordan BreinerSteel Dynamics

CGB handled 26.6 million bushels of grain of at the Port of Indiana-Jeff ersonville in 2009.

(Right) OmniSource, which operates out of the SDI facility at the port, recycles scrap steel.


The Ports of Indiana is the first foreign-trade zone (FTZ) grant-ee in the nation to file more than one application for the new Alter-native Site Framework (ASF) designation. As an FTZ grantee, our organization is submitting ASF applications for each of our three FTZs to the U.S. Foreign Trade Zones Board. We are one of only six organizations in the nation to act as grantee for multiple FTZs and one of only three to manage three – the most handled by one grantee. FTZs are restricted access areas that, while on U.S. soil, are considered outside of U.S. Customs and Border Patrol territory. This status allows companies within an FTZ to delay or reduce the amount paid in customs duties. This program, started in 1934, al-lows U.S. companies to be more cost-competitive with those located in other countries. The ASF designation makes it easier for companies to join an FTZ. Once each zone’s ASF application is approved, companies can be added to the FTZ in as little as 30 days. This process can take a year for traditional FTZs. With ASF designation, a multi-county service area is established, made up of specific counties that meet adjacency requirements to current FTZs. Out of the more than 250 FTZs nationwide, roughly 15 ASF applications have been submitted, but there are many more in the works.

FTZs provide a formula for success in international business Have you ever wondered if being part of an FTZ would benefit your company? There are several formulas to find out. The Ports of Indiana can help a business determine its FTZ savings potential by completing an FTZ financial savings analysis worksheet. The worksheet includes formulas to determine the FTZ savings toward your cash flow, in duties, reduced fees and more. Here are three examples from the FTZ worksheet. The “Widget Co.’s” average on-hand imported merchandise inventory is $25,000,000 and the average customs duty rate for its

product is 6 percent. Borrowing the money to pay the customs duty would cost the Widget Co. 5 percent per year in interest. But if the product remained in an FTZ for a full year, the Widget Co. could postpone the payment and calculate its savings in interest expenses as follows: $25,000,000 x 6% x 5% = $75,000 In another example, out of the Widget Co.’s $100 million in annual imports of foreign parts and materials, 3 percent becomes scrap ($3 million). In an FTZ, companies could avoid paying customs duties (6 percent in this example) on any material that is destroyed or damaged during processing. The company’s annual FTZ savings on this scrap material could be: $3,000,000 x 6% = $180,000. In a third example, qualified companies in an FTZ are only required to submit one customs entry on imported and exported materials per week, as opposed to individual or daily customs entries required of companies not in an FTZ. Not only will this weekly entry greatly reduce paperwork, it will save the Widget Co. in customs broker fees. Currently, the Widget Co. files about 20 customs entries per week, or 1,040 per year. Its customs broker entry fee is $125 per entry, which costs the company $130,000 annually. In an FTZ, the company would only have to file a weekly customs entry, or 52 per year. This takes its annual custom broker fee down to $6,500, saving the company $123,500 a year. With these three equations, it appears the Widget Co. could save $378,500 in one year by participating in an FTZ. If you would like to receive a copy of the formula worksheet to determine the potential FTZ financial savings for your business, please contact [email protected] or go to www.portsofindiana.com/ftzworksheet.

Contact Jody Peacock at (317) 233-6225; [email protected] David Haniford at (317) 232-9204; [email protected]

Ports of Indiana makes FTZ history

David Haniford General Counsel

Jody PeacockDirector of Corporate Affairs

(Right) Port of Indiana-Burns Harbor general cargo stevedore Federal Marine Terminals (FMT) takes advantage of the port’s FTZ status in handling steel-related projects.


DirectoryListed below are all companies located at Indiana’s three ports

150 W. Market St., Suite 100, Indianapolis, IN 46204(317) 232-9200 / fx (317) 232-0137 / [email protected]

www.portsofindiana.com www.indianalogistics.com

ADS Logistics Roll & Hold Division725 George Nelson DrivePortage, IN 46368219-787-5015Transportation, warehousing, inventory mgmt.

Aqua-Land Communications Inc.60 Stagecoach RoadPortage, IN 46368219-762-1541Communications provider

ArcelorMittalBurns Harbor250 W. U.S. Highway 12Burns Harbor, IN 46304219-787-2120 Steel mill

Behr Iron & Steel6735 Waterway DrivePortage, IN 46368219-787-1020Scrap bailing operation

Beta Steel Corp.6500 S. Boundary DrivePortage, IN 46368219-787-8200Hot-rolled steel processing

Calumite Co.900 George Nelson DrivePortage, IN 46368219-787-5045Calumite processing

Cargill Inc.6640 Ship DrivePortage, IN 46368219-787-9461Grain handling and ag products

Carmeuse Lime and Stone165 Steel RoadPortage, IN 46368219-787-9190Limestone processing

Central Coil Processing501 George Nelson DrivePortage, IN 46368219-787-5000Steel processing

Federal Marine Terminals Inc.415 Salmon DrivePortage, IN 46368219-787-1017Stevedoring and trucking

Feralloy Midwest Portage6755 Waterway DrivePortage, IN 46368219-787-9698Steel processing

Feralloy Processing Co.600 George Nelson DrivePortage, IN 46368219-787-8773Steel processing

Frick Services800 Sun DrivePortage, IN 46368219-787-9475Dry/liquid bulk storage/distribution

Great Lakes Towing Co.1800 Terminal Tower, 50 Public Sq.Cleveland, OH 44113216-621-4854Tugboat, towing, barge services

Hoosier Healthcare Northwest6615 S. Boundary DrivePortage, IN 46368219-787-8662Occupational healthcare facility

Indiana Pickling & Processing6650 Nautical DrivePortage, IN 46368219-787-8889Steel pickling

International Longshoremen’s Assoc. Local 19696031 Melton RoadU.S. Highway 20Portage, IN 46368219-764-9715

Lakes and Rivers Transfer4600 E. 15th Ave.Gary, IN 46403219-787-9280Bulk stevedoring, trucking

Leeco Steel1000 E. Boundary RoadPortage, IN 46368800-621-4366Steel plate service center

Levy Co.900 George Nelson DrivePortage, IN 46368219-787-8666Aggregate processing

Metro International Trade Services LLC345 Salmon DrivePortage, IN 46368219-787-8690Metals distribution and storage

Mid-Continent Coal & Coke Co.915 W. 175th St.Homewood, IL 60430708-798-1110Steel processing and distributor

Precision Strip Inc. 6720 Waterway DrivePortage, Indiana 46368219-787-1602

S&L Great Lakes Transportation 1175 George Nelson DrivePortage, Indiana 46368219-764-3700

Steel Warehouse Co. Inc.6780 Waterway DrivePortage, IN 46368219-787-8887Liquid storage, handling

Tanco Terminals Inc. 400 E Boundary DrivePortage, Indiana 46368219-787-8159

Tube City IMS Division by Beta Steel6500 S. Boundary DrivePortage, Indiana 46368219-787-0004

Walsh & Kelly24358 State Road 23South Bend, IN 46614574-288-4811Asphalt processing

Agrium U.S. Inc.2501 Bluff RoadMount Vernon, IN 47620812-838-9779Fertilizer distribution

CEMEX/Kosmos Cement3301 Port East-West Road 570Mount Vernon, IN 47620812-838-3465Cement distribution

CIMBAR Performance Minerals2700 Bluff RoadMount Vernon, IN 47620812-838-5236Minerals processing

Consolidated Grain & Barge Co.Merchandising Division2801 Bluff RoadMount Vernon, IN 47620812-833-3214Grain terminal

Consolidated Grain & Barge Co.Soybean Processing DivisionP.O. Box 547Mount Vernon, IN 47620812-838-3214

Consolidated Terminals & Logistics Co.P.O. Box 547Mount Vernon, IN 47620812-833-3208General cargo stevedoring and logistics

Mead Johnson Nutrition/Kenco Logistic Services3101 Highway 62 EastMount Vernon, IN 47620812-833-3416Distribution and warehousing

Mount Vernon Transfer Terminal3300 Bluff RoadMount Vernon, IN 47620812-838-5532Coal transloading to barge

TPG Mount Vernon MarineMount Vernon Barge ServiceP.O. Box 607Mount Vernon, IN 47620812-838-4889Towing, fleeting, barge cleaning/repair, stevedoring

Tri-County Agronomics1711 Bluff RoadMount Vernon, IN 47620812-838-1755Liquid fertilizer, pesticide and herbicide distribution

Airgas Specialty Products5142 Port RoadJeffersonville, IN 47130812-283-6932Chemical mfg. and distribution

Chemtrusion Inc.1403 Port RoadJeffersonville, IN 47130812-280-2910Plastic resin processing

Consolidated Grain & Barge Co.5143 Port RoadJeffersonville, IN 47130812-283-9500Grain terminal, bulk stevedore, logistical services

Consolidated Terminals & Logistics Co.5143 Port RoadJeffersonville, IN 47130812-283-9500General cargo stevedoring and logistics

Cylicron Engineered Cylinders5171 Maritime RoadJeffersonville, IN 47130812-283-4600Industrial cylinder mfg.

Eagle Steel Products Inc.5150 Loop RoadJeffersonville, IN 47130812-282-4770Steel processing and distributor

FedEx Ground5153 Maritime RoadJeffersonville, IN 47130812-218-0781Parcel distribution logistics

Flexible Materials Inc.1202 Port RoadJeffersonville, IN 47130812-280-7000Wood-panel processing

Green Lines Transportation Inc.702 Port Road Jeffersonville, IN 47130812-258-3515 Transportation, common carrier

Idemitsu LubricantsAmerica Corp.701 Port RoadJeffersonville, IN 47130812-284-3300Lubrication for auto industry

Interstate Structures - A division of Mid-Park Inc.1302 Port RoadJeffersonville, IN 47130812-284-6430Steel fabrication

Jeffersonville River Terminal5130 Port RoadJeffersonville, IN 47130812-282-0471Steel galvanizing

Kasle Metal Processing5146 Maritime RoadJeffersonville, IN 47130812-282-0471Metal Processing

Kinder Morgan5146 Loop RoadJeffersonville, IN 47130812-282-4938Warehousing, stevedoring, logistics

Metals USA702 Port RoadJeffersonville, IN 47130812-288-8906Metals processing, distribution

MG Rail 5130 Port RoadJeffersonville, IN 47130812-288-8906Rail services

Mytex Polymers Inc.1403 Port RoadJeffersonville, IN 47130812-280-2900Plastic resin distribution

Namasco5150 Maritime RoadJeffersonville, IN 47130812-284-4141Steel warehousing and distribution

Nova Tube Indiana1195 Port RoadJeffersonville, IN 47130812-285-9796Steel tube mfg.

OmniSource – A division of Steel Dynamics Inc. 5134 Loop Road Jeffersonville, IN 47130812-280-2268 Scrap metal processing

Roll Forming Corp. Indiana1205 N. Access RoadJeffersonville, IN 47130812-284-0650Roll-forming of steel components, structural tubes

Steel Dynamics Inc.5134 Loop RoadJeffersonville, IN 47130812-218-1490Steel coils galvanizing

Tanco Clark Maritime5144 Utica PikeJeffersonville, IN 47130812-280-7300Liquid storage, handling

TMSi1251 Port RoadJeffersonville, IN 47130812-280-5850Distribution and warehousing

Valmont Industries Inc.1117 Brown Forman RoadJeffersonville, IN 47130812-284-5241Steel galvanizing

Vitran Express1402 Port RoadJeffersonville, IN 47130812-280-7211Freight services, distributions

Voss/Clark Industries701 Loop RoadJeffersonville, IN 47130812-283-7700Steel processing and distributor

PORT OF INDIANAMOUNT VERNON2751 Bluff Road,

Mount Vernon, IN 47620812-838-4382

PORT OF INDIANAJEFFERSONVILLE

5100 Port RoadJeffersonville, IN 47130

812-283-9662

PORT OF INDIANABURNS HARBOR

6625 S. Boundary DrivePortage, IN 46368

219-787-8638


www.portsofi ndiana.com | 800.232.PORT [7678]

INDIANA RANKS…· 1st in pass-through interstates· 1st in movement of primary metals· 3rd in number of railroads· 5th in truck tonnage· 5th in rail carloads· 7th in U.S. waterborne shipping· 15th in foreign and domestic waterborne shipping

Moving more freight per capita than any state with at least 3 million in population

Burns Harbor | Jeffersonville | Mount Vernon

PORTS OF INDIANA PRSRT STD150 W. Market St., Ste. 100 US POSTAGE PD Indianapolis, IN 46204 MUNCIE, IN PERMIT 860

portside magazine - winter 2010

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