A Ports of Indiana Publication · Winter 2012

• MountVernonhandleslargestannualtonnagesince1994,pg.10

2011 Year in Review Indiana’s three ports ship largest annual tonnage in five years

• CommunityPartnerships-AValuedTreasure,pg.4• StewarthonoredbyNationalGuard,pg.5

InsidethisIssue:

www.portsofindiana.com · Winter 2012 3

150 W. Market St., Ste. 100, Indianapolis, IN 46204317-232-9200 | www.portsofindiana.com

For advertising or subscription information, contact Liz Folkerts, (317) 232-2905; lfolkerts@portsofindiana.com

TO REGISTER

Table of ConTenTs

FROM ThE CEO ...................................................................................................4Community Partnerships – A Valued Treasure

NEWS aNd NOTES ......................................................................................................5Arredondo named Distinguished Hoosier Stewart receives surprise from National Guard “Our” Bruce Willis celebrates 30 years at Port of Indiana-Mount Vernon

FEaTuRE STORY .............................................................................................6-7Ports of Indiana handles largest annual tonnage in five years Unusual Visitor: First January lake vessel since 2006

PORT REPORTSBurns Harbor: Fast start carried through 2011 ..............................................................9 Mount Vernon: New cargoes help port to highest tonnage since 1994 .......................10Jeffersonville: Port companies increase investments in 2011 ....................................11

4 · Winter 2012 PORTSIDE MAGAZINE

FROM THE CEO

Have you ever heard the old proverb, “A good neighbor is a found treasure”? I’ve attended port meetings all across the U.S. and it’s not uncommon to hear a port executive or board member comment on the ‘less than favorable’ relationships they have with their surrounding communities – it makes me count our blessings. The Ports of Indiana is very proud of the communities we call home. The feedback we receive from the communities makes us believe they are also very proud of their ports. Our ports are strategic assets that serve businesses throughout our state and neighboring states, and our cities recognize the benefits of having a port in the community. Maritime activities at our three ports generate more than 43,000 jobs and $5.4 billion in annual economic activity for the local economies. Port businesses also contribute $2.4 billion in personal income, $732 million in local purchases and $224 million in state and local taxes each year. Portage Mayor Jim Snyder visited our Indianapolis office just weeks after he won the election in November to ask what he could do to help port business. The former mayor of Jeffersonville, Tom Galligan, would trip over himself to ask the port what else the city could do for us to help grow business. Tom has since left office and shortly thereafter, the team of his successor, Mayor Mike Moore, was calling the port to offer assistance in any way to help us attract new business or grow business with existing port companies. In Mount Vernon, Mayor John Tucker has always been a strong port advocate and was a key player in bringing Aventine Renewable Energy to the port. The owners of the local hotel are always challenging us to bring that next “new” company to town that will hopefully fill their units with construction workers and the next new management team. Elected officials in Posey County have watched the business at their port more than double in the last decade and have extended a helping hand regarding traffic flows in and around their town. We are also thankful for the support of the local economic development groups in our ports’ regions. One Southern Indiana promotes the Jeffersonville port as a strong economic asset not just to the cities of Jeffersonville and New Albany, but to the region. The Northwest Indiana Forum worked closely with the Burns Harbor/Portage port to take a stand in support of waterborne freight in the Asian carp issue. The Economic Development Coalition of Southwest Indiana and the Posey County Economic Partnership have only been in place a few short years, but quickly developed a strong working relationship with the port in Mount Vernon. We are fortunate to have these and other hard-working organizations as our allies. Yes, we truly are blessed to have our ports located in the most business friendly state in the U.S. and we count our blessings everyday for having the best neighbors in Indiana. Our communities are “key influencers” when it comes to attracting new business at the ports and, in turn, we want our ports to be valued treasures to their neighbors.

Community PartnershiPs – a Valued treasure

Rich CooperChief Executive Officer

Ports of Indiana

Mayor Mike Moore - JeffersonvilleMayor Mike Moore was elected in 2011. a Jeffersonville native, Mike served as clark county coMMissioner for five years and is a forMer sMall business owner. until shortly after his election as Mayor, Mike owned and operated Jerry’s restaurant, which had been in the faMily since 1963. he and wife vicki have three kids, shelby, ally and Gerrin.

Mayor JiM snyder - portaGeMayor JiM snyder was elected in 2011. a Graduate of fairhaven colleGe, JiM started his own coMpany, first financial trust MortGaGe, in 2006. despite the nuMber of MortGaGe coMpanies in indiana droppinG froM 5,000 to 500 over the last four years, his office has thrived. JiM also served on the portaGe plan coMMission and the indiana departMent of natural resources advisory council. he and his wife deborah have three children.

Mayor John tucker - Mount vernonMount vernon Mayor John tucker beGan servinG his first terM in 2008 and was re-elected in 2011. John served as a city councilMan for 12 years and retired froM the police departMent after servinG for 33 years. he has aGGressively pursued Grant opportunities which has benefited the citizens of Mount vernon, receivinG $10 Million in federal Grants for Much-needed proJects around the city.

MEET THE MayORs

4 · Winter 2012 PORTSIDE MAGAZINE

www.portsofindiana.com · Winter 2012 5

Stewart receives surprise from National GuardINDIANAPOLIS – The element of surprise… The Indiana National Guard took advantage of this ancient military tactic when presenting the Indiana Distinguished Service Medal to Scott Stewart in December. The medal is the highest military honor bestowed to civilians and it was presented by Maj. Gen. R. Martin Umbarger, Adjutant General of Indiana. Before becoming port director of the Port of Indiana-Jeffersonville, Stewart worked closely with the Indiana National Guard while he was a staff member to Gov. Mitch Daniels. Stewart helped coordinate an effort to obtain a 1,250 acre parcel of land for Camp Atterbury, the Indiana National Guard’s training center in Edinburgh, Ind., for expanded training areas and development for the U.S. military. Stewart and Ports of Indiana CEO Rich Cooper were at the guard headquarters in Indianapolis for a meeting when Umbarger invited the pair to his “holiday message” to the troops. “As Maj. Gen. Umbarger spoke, it became clear this was not his holiday message,” Stewart said. “As the project he described began to sound familiar, I felt my blood pressure rise.” The award states that Stewart’s “Wisdom, advice and mentorship are trademark talents which has helped the Indiana National Guard achieve many operational goals.” “I was honored to be in the position to be helpful,” Stewart said. “The Indiana National Guard is one of our state’s greatest assets.”

Arredondo named Distinguished HoosierINDIANAPOLIS – Gov. Mitch Daniels recognized Ports of Indiana Commissioner Ramon Arredondo for his dedication and service to northwest Indiana with one of the state’s highest tributes – the Distinguished Hoosier Award. The award was presented by State Senator James Merritt in December. Recently, Arredondo and his wife, Trisha, wrote a book titled “Maria’s Journey,” which chronicles the story of his mother as she emigrated from Mexico to raise her family in northwest Indiana. The book has been used as core curriculum for various schools and proceeds from its sales are used for scholarships. Arredondo was born in East Chicago, Ind., the ninth child of a family of 10. After high school, he was employed by Inland Steel Co. until entering in the U.S. Army where he served during the Vietnam conflict. Arredondo also served on the East Chicago Police Department. He earned both his bachelor’s in criminal justice and his master’s in public policy at University of Central Florida in Orlando, Fla. – the first Hispanic-American to do so at the university. Arredondo has extensive experience in government, having served at local, state and federal levels. In the mid-1970s, he helped secure funds to establish one of the first domestic abuse shelters in the U.S. He also was instrumental in the installation of the first computerized criminal justice information system in Indiana. Prior to retirement in 2005, he was employed by NiSource as governmental affairs advisor to the chairman. Gov. Daniels first appointed Arredondo to the Ports of Indiana commission in 2006.

of cargo we move today, it’s very impressive. I’m proud of the role I’ve played at this port.” And about that famous name… “Yeah, I get comments all the time,” said Willis. “Especially over the phone, making reservations and things. I’ve come to expect it.” Phil Wilzbacher: 10 years Phil Wilzbacher, port director at the Port of Indiana-Mount Vernon, celebrated 10 years with the organization in January. Since Wilzbacher started, annual tonnage at the port steadily increased to now more than double. A southwest Indiana native, Wilzbacher previously worked in the shortline railroad and grain industries. He and his wife Katie have two grown children and are proud grandparents to twin grand-daughters.

Ed Piatek: 5 years In January, Ed Piatek, assistant security manager for the Ports of Indiana, marked five years of service. Piatek is a veteran of the U.S. Army where he was awarded the Silver Star and Purple Heart Medals and retired from the Porter County Sheriff’s Department. He and his wife Julie have been married for 17 years. “We feel very fortunate to have a law enforcement professional like Ed as a key member of our security team,” said Ports of Indiana CEO Rich Cooper.

MOUNT VERNON, Ind. – Straight out of a Hollywood blockbuster – Bruce Willis sweeps in, fixes everything and saves the day. This isn’t “Die Hard,” but rather the Port of Indiana-Mount Vernon where Bruce Willis has been playing a “leading role” maintaining the port for 30 years. “Bruce hasn’t been involved in rescuing hostages – that I know of – but we do consider him to be a ‘local hero’ around the port,” said Phil Wilzbacher, port director at the Port of Indiana-Mount Vernon. “Bruce keeps the port grounds well-maintained year around in addition to helping build a strong relationship between port companies and the Ports of Indiana. If you happen to bump into him, you may want to ask for his autograph.” Over the years, Willis has done almost everything at the port from answering phones and fixing jammed copiers to operating a crane and running a locomotive. Willis started at the port working part-time in 1979 while a junior at Mount Vernon Senior High School before joining full-time in 1982. He also worked at the Port of Indiana-Jeffersonville when the ports shared a staff for a time in the 1980s. Willis has two daughters, Brandy, 24, and Catlin, 18. He and his “significant other” Linda Fox have been together for 10 years. In his free time, he enjoys fishing, hunting and NASCAR. “I’m glad I’ve been here this long and had the chance to see how much the port has grown,” Willis said. “When I look at the amount

NEWS & NOTES

Wilzbacher

State Senator James Merritt presents Ports of Indiana Commissioner Ramon Arredondo with the Distinguished Hoosier Award in December.

Piatek

Gen. Umbarger with Scott Stewart at Camp Atterbury

Willis

“Our” Bruce Willis celebrates 30 years at Port of Indiana-Mount Vernon

6 · Winter 2012 PORTSIDE MAGAZINE

The Ports of Indiana handled 8.1 million tons of cargo in 2011, the largest annual tonnage since 2006. New ethanol and dried distillers

grains (DDGs) shipments combined with gains in limestone, salt and steel cargoes fueled a 5 percent increase in total shipments moving through Indiana’s three ports. “Despite continued economic uncertainties, this was the fourth consecutive year our ports experienced growth,” said Ports of Indiana CEO Rich Cooper. “Our 2011 shipments were nearly a million tons higher than the five year average. We’ve also seen a significant increase in capital investments by our port companies as they prepare for future growth. This is a harbinger of good things to come.” The Port of Indiana-Mount Vernon handled its largest annual tonnage since 1994 and the third highest in the port’s 36-year history. The port handled 4.7 million tons in 2011, an increase of 12 percent over 2010 figures. Ethanol-related shipments played the biggest role in the increase, with Aventine Renewable Energy operating in its first full year at the port and other ethanol producers taking advantage of the

PortsofIndianahandleslargestannualtonnageinfiveyears

port’s new rail-to-barge transloading facility, owned and operated by Consolidated Terminals and Logistics Co. Ethanol shipments were five times the previous year’s total and DDGs were 10 times greater than 2010. “This past year represented a diversification of cargoes moving through the port,” said Phil Wilzbacher, port director at the Port of Indiana-Mount Vernon. “Coal and grain remain our highest volume commodities but with Aventine’s ethanol facility reaching full production, DDGs and ethanol rocketed from minimal numbers in 2010 to the port’s third and fourth highest volume cargoes in 2011.” In addition, Mount Vernon steel shipments were seven times greater than the 2010 total and the port experienced gains in shipments of coke (188%), fertilizer (6%) and soy products (4%). The Port of Indiana-Burns Harbor moved 2 million tons of cargo in 2011, an increase of 10 percent over 2010 which was fueled by shipping increases in limestone (23%), steel (18%), fertilizer (61%), coal (44%) and salt (18%).

2011 Year in Review

www.portsofindiana.com · Winter 2012 7

Unusual VisitorFirst January lake vessel since 2006PORTAGE, Ind. – The Port of Indiana-Burns Harbor welcomed a rare January lake vessel to its docks. The “James Kuber” carried approximately 16,000 tons of local corn from port company Cargill to Ontario, Canada. “This is the first lake vessel that we’ve had call on the port in January since 2006,” said Peter Laman, port director at the Port of Indiana-Burns Harbor. “The mild weather has kept ice from forming on the lakes, which generally limits shipping this time of year. The international shipping season officially closed last month, but the port is open year-round. Businesses can still ship and receive cargo on river barges or lake vessels, as long as the weather and ice allow them to get through.” The “James Kuber” vessel was built in 1953 as a steamship but, in 2008, it was converted into a self-unloading Articulated Tug/Barge (“AT/B”). The conversion removed nearly 70 feet of the ship’s length, including the engine room and living area, and added a V-shaped notch at the back of the vessel where a tugboat locks into place. AT/Bs have the hauling capacity of large ships but are powered by tugboats, a common method for rehabilitating older ships. The port’s international shipping season officially ended on Dec. 30, when locks on the St. Lawrence Seaway were closed for the winter. Weather-permitting, vessels can continue to run limited routes within the Great Lakes that do not pass through locks. The seaway reopens to ocean vessels in late March. Cargill joined the Port of Indiana-Burns Harbor in 1979. The company operates a 7-million bushel grain elevator, primarily exporting corn, wheat and soybeans from local farmers to world markets. Cargill is an international producer and marketer of food, agricultural, financial and industrial products and services. Founded in 1865, the privately held company employs 142,000 people in 66 countries. For more information, visit www.cargill.com.

The Port of Indiana-Jeffersonville handled 1.4 million tons in 2011 with salt shipments increasing 17 percent over 2010 figures. There were also small increases in coke and steel cargoes. The Ports of Indiana is a statewide port authority that operates a system of three ports on the Ohio River and Lake Michigan. The mission of the Ports of Indiana is to develop and maintain a world-class port system that operates as an agile, strategically-driven, self-funded enterprise dedicated to growing Indiana’s economy. More than 60 companies operate at Indiana’s three ports. The Ports of Indiana manages approximately 2,600 acres of property along the Ohio River and Lake Michigan - and has 800 acres available for future development. For more information, visit www.portsofindiana.com.

Top left: Great Lakes Towing brings the Federal Patroller into the Port of Indiana-Burns Harbor in August. Summer shipments were up nearly 50 percent in 2011. Above top: Aventine Renewable Energy’s ethanol plant helped increase 2011 tonnage at the Port of Indiana-Mount Vernon by 12 percent over the previous year. Above bottom: Barge shipments of salt, coke and steel increased at the Port of Indiana-Jeffersonville during 2011.

Unseasonably warm weather allowed the Port of Indiana-Burns Harbor to handle a rare vessel in January as Cargill exports local grain to Canada via the ‘James Kuber.’

8 · Winter 2012 PORTSIDE MAGAZINE

Any Cargo. Your Destination.McKeil Marine is the reliable tug and barge company that specializes in customized cargo shipping into the Great Lakes. With over 50 years of providing innovative marine solutions, you can trust McKeil Marine to move any cargo to your destination.

Innovative Marine SolutionsToll Free: 1.800.454.4780 • mckeil.com

www.portsofindiana.com · Winter 2012 9

Any Cargo. Your Destination.McKeil Marine is the reliable tug and barge company that specializes in customized cargo shipping into the Great Lakes. With over 50 years of providing innovative marine solutions, you can trust McKeil Marine to move any cargo to your destination.

Innovative Marine SolutionsToll Free: 1.800.454.4780 • mckeil.com

PORTAGE, Ind. – The Port of Indiana-Burns Harbor wasted no time jumping into the 2011 shipping season. Tonnage figures were up more than 55,000 tons in the first quarter alone over the same period of 2010 and in March, the first ship to enter the St. Lawrence Seaway headed straight to our port carrying wind turbine blades from Denmark. This early momentum continued through the year as the port moved 2 million tons of cargo in 2011 – up 10 percent from the previous year. There were increases in shipments of limestone (23%), steel (18%), coal (44%), fertilizer (61%) and salt (18%). The port also handled multiple shipments of project cargo for the BP Whiting Refinery, currently undergoing a multi-billion dollar modernization, and the first export shipment of steel since 2008. Nearly 20,000 tons of northwest Indiana steel was shipped to the Republic of Macedonia in September. In February, Norfolk Southern became the port’s dedicated, onsite rail-switching provider – a first in the port’s more than 40-year history. Rail traffic for the year increased 27 percent over 2010 due in part to Norfolk Southern’s additional crews and improved service. We recently completed a two-year, $11.2 million project to improve nearly 2,000 feet of dockwall along the west harbor. The

port offers more than 8,200 feet of dockwall and 17 berthing areas allowing for loading of many ships and barges at the same time. The new dockwall is open for business and will allow us to continue efficient cargo handling operations for many years to come.

Port welcomes new health clinic CEO I’d like to offer a warm welcome to the

new president and CEO of port company HealtheACCESS Clinic, William Cummins. Bill’s healthcare experience spans 28 years, with previous stints as CEO for Regency Hospitals in Portage and East Chicago and chief operating officer for Porter Hospital in Valparaiso. He started his new position in December as previous President and CEO Don Kiger became chairman of the board.

HealtheACCESS operates four clinics, including the port location, offering primary and urgent care, diagnostic services and occupational health and wellness. The company opened its port location in 2004. For more information on HealtheACCESS clinics, visit www.haclinics.com.

Fast start carried through 2011

The Jumbo Spirit – operated by Jumbo Shipping – de-livers oversized “project” cargo to the Port of Indiana-Burns Harbor for BP’s multi-billion dollar expansion in Whiting, Ind.

PORT REPORT - BURNS HARBOR

William CumminsHealtheACCESS Clinics

Column by

Peter LamanPort Director

Contact Info:(219) 787-5101

plaman@portsofindiana.com

PORT REPORT

OvERSizEd CARgO

In 2011, Norfolk Southern became the Port of Indiana-Burns Harbor’s dedicated, onsite rail-switching provider helping to increase port rail shipments by 27 percent for the year.

10 · Winter 2012 PORTSIDE MAGAZINE

MOUNT VERNON, Ind. – Diversify, diversify, diversify… This strategy applies just as strongly to growing a port as it does to growing an investment portfolio. The Port of Indiana-Mount Vernon recently added two commodities to the port and, as a result, we handled the highest annual tonnage since 1994. The opening of Aventine Renewable Energy’s new ethanol plant changed the face of the port in 2011. This 112-acre facility is not only the largest at the Mount Vernon port, but the largest single facility at any of Indiana’s three ports. One of the key goals in the Ports of Indiana strategic plan is to attract new cargoes and with Aventine’s arrival, ethanol and dried distillers grains (DDGs) joined coal and grain as the top four highest volume cargoes moving through the port. The ethanol and DDG boom extends beyond Aventine. Consolidated Terminals and Logistics Co. (CTLC) opened a rail-to-barge transloading facility to handle ethanol and DDGs, moving the cargoes for Aventine as well as other ethanol facilities. Other cargoes contributed to the port’s 12 percent increase in tonnage over 2010. Steel shipments were seven times greater than the previous year and we experienced notable gains in shipments of coke (188%), fertilizer (6%) and soy products (4%). New company joins the port Crop Production Services (CPS) joined the port in October. CPS acquired approximately eight acres of land from its parent company Agrium to operate a dry bulk and liquid fertilizer distribution terminal for its retail locations. The port facility receives various types of dry and liquid fertilizers by barge and distributes the products in southwestern Indiana, southern

Illinois and western Kentucky. CPS provides custom blending of fertilizers and serves customers throughout the U.S. and Canada. A new company brings new faces around the port. Steve Warren is CPS’s operations/project manager. A graduate of Western Kentucky University, Steve supervises the daily operations and capital projects for the company’s eastern cornbelt terminal division. He and his wife Jennifer have two children, Jack and Ann Katherine.

Facility manager Kevin Broster oversees the port location’s daily operations. Kevin graduated from Wabash Valley College in Mount Carmel, Ill., and is engaged to Debra Bullock. He has two sons, Rylie and Bryan. Russ Mothershead II is a Purdue University graduate. As the company’s eastern cornbelt terminal division manager, he directs five facilities in the region. Russ and his wife Trisha have a daughter, Amelia. For more information on CPS, visit www.cpsagu.com.

Steve WarrenCrop Production Services

New cargoes help port to highest tonnage since 1994

Crews work on a conveyor at new port company Crop Production Services at the Port of Indiana-Mount Vernon.

NEW COmPANy

PORT REPORT - mOUNT vERNON

Column by

Phil WilzbacherPort Director

Contact Info:(812) 833-2166

pwilzbacher@portsofindiana.com

PORT REPORT

Kevin BrosterCrop Production Services

Russ Mothershead IICrop Production Services

www.portsofindiana.com · Winter 2012 11

JEFFERSONVILLE, Ind. – While the U.S. economy struggled to recover in 2011, the Jeffersonville port showed many signs of growth. Multiple port companies planted seeds in 2011 that will grow in 2012 and beyond with investments in equipment and buildings designed to fuel future development. In a somewhat mixed bag, the port’s rail shipments increased by 10 percent versus 2010, driven by continued strength in the steel sector, while barge tonnage dropped 18 percent, largely due to decreased grain shipments. However, overall barge shipments would have been up roughly 10 percent had a loading conveyor not been shut down for about six weeks while improvements were made to increase its throughput capacity. Investments extended far beyond a single conveyor. With one of the largest capital investments of the year, Idemitsu Lubricants America Corp. began a $21 million project to expand its facility, increase storage capabilities and add 23 new jobs. Idemitsu’s port facility produces high-performance lubricants for automotive, motorcycle and industrial use. This long-standing port company is a subsidiary of one of Japan’s largest oil and energy companies, Idemitsu Kosan Co. Consolidated Grain & Barge (CGB) added 550,000 bushels of storage capacity as well as equipment designed to expedite inbound shipments, processing and loading of grain and soybeans. These major investments by CGB, and its sister company Consolidated Terminals and Logistics, demonstrate the importance

of the Jeffersonville port as a key player in the 70-site portfolio of this outstanding company, now celebrating 40 years of consistent growth. Steel processor Voss Clark made major investments in its port facility to address changes in the auto industry with new fuel-efficiency requirements and moves toward ultra-high strength steel. In anticipation of this growing need, Voss Clark upgraded its equipment to process this strong but thin and lightweight steel. The company also added a

new 44,000 square-foot warehouse, an overhead crane and upgraded process control and surface inspection systems. We also welcomed two new arrivals at the port last year. Arctic Minerals, a manufacturer and supplier of industrial minerals, opened a distribution center and processing plant in April. Stainless steel scrap processor Cronimet Corp. joined the port in August. A number of port companies are considering what moves should be taken near term to accommodate anticipated increased demand.

As 2012 begins, even a causal drive through the port shows positive signs of continued economic recovery.

Thanks from the new guy I’d like to extend a hearty thank you for the warm welcome I’ve received since joining the port in October. We have world-class companies at the port I’ve enjoyed getting to know. The outlook for 2012 and beyond is positive and I’m delighted to be part of the team.

Consolidated Grain and Barge added 550,000 bushels of grain storage at the Port of Indiana-Jeffersonville in 2011.

iNCREASEd CAPACiTy

PORT REPORT - JEFFERSONviLLE

Port companies increase investments in 2011

Column by

Scott StewartPort Director

Contact Info:

(812) 283-9662sstewart@portsofindiana.com

PORT REPORT

Port company Voss Clark added this 44,000 square-foot warehouse and new steel processing equipment in 2011.

PORTS OF INDIANA 150 W. Market St., Ste. 100 Indianapolis, IN 46204