the great lakes & st. lawrence seaway...
TRANSCRIPT
1
The Great Lakes & St. Lawrence
Seaway System
A User’s Perspective
Corus - US Gov. & Reg. Affairs
Stephen Wilkes
October 1, 2009
2
Background information Corus Group / Tata Steel
• Corus Group became an operating business of Tata Steel on April 2, 2007
• The Tata Steel group, including Corus, is the world’s 5th-largest steel company by volume
• Annual steel production: abt. 25 million metric tonnes
3
Background information Corus Group
• Large production sites in the Netherlands and United Kingdom
• Specialized sites in Belgium, Canada, France Germany & U.S.A.
• Annual steel production: 18 million metric tons
• Almost 40,000 employees in more than 40 countries
• Corus Group is a leading supplier to many of the most demanding markets: construction, engineering, automotive, packaging, yellow goods and white goods
4
Background information Corus IJmuiden, The Netherlands
• Surface: 1854 acres
• Abt. 9,000 employees • Inbound: 14 mill metric
tons raw materials: iron ore and coal
• Outbound: 7 million mt steel products
• Its own deep water harbors and inland waterway harbors
5
245 1638
590
876 1588
174
216
671
441 convent. 155 contain.
249
64
113
184
225
116
90 N.America
Greece & Turkey
E.Europe
Outbound 2006 Total: 7.6 million mt Volumes in metric kton 7
Outbound volumes 2006 Corus IJmuiden
9
7
6
Volumes to Great Lakes Corus IJmuiden
Volumes to Great Lakes
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Year
Tonn
age
7
Volumes to Great Lakes by port Corus IJmuiden
Cleveland
5.100
Detroit
70 Chicago
840
Milwaukee
755 Hamilton Ont.
850
Burns Harbor
3.300
Volumes in ‘000 metric tons
(1991-2006)
8
Volumes to Great Lakes by port Corus IJmuiden
Volumes to North-America by port (1991-2008)
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
Cleveland Burns Harbor Milwaukee Detroit Chicago Hamilton,Ont.
Port
Tonn
age
9
Volumes to Great Lakes by port Corus IJmuiden & UK
Volumes to North-America (1991-2007)
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
Clevela
nd
Burns
Harb
or
Milwau
kee
Detroit
Chicag
o
Hamilto
n, Ont.
Montre
al
Port
Tonn
age
UK
IJmuiden
10
Principal Logistic Service Provider: Shipowners Polsteam, Poland
• The biggest dry bulk ship-owner and ships’ operator in Europe
• One of the ten biggest ship-owners in the world
• 75 vessels totalling about 2.1 million dwt
• New building investment program until 2015 of 34 bulk carriers, including handy-size and panamax vessels
11
Great Lakes St. Lawrence Seaway Advantages
Direct access to US & Canadian Midwest customers
• Inland transport readily available • Excellent port & stevedoring performances in Great
Lakes
• Transport quality paramount importance
• Long established partnership with carriers, stevedores, terminals, ports, Seaway authorities and US & Canadian Coastguard
• Confidence in route by customers
12
Great Lakes St. Lawrence Seaway Challenges - 1
Challenge: • Shipping season: mid-March to mid-December → during winter
Corus has to deliver via US East coast (100 – 200 thous tons) and get to midwest customers by rail / truck
Negative consequences:
– Much longer lead times to customers – Greater pressure on demand forecasting
– Need spike in production prior to close of navigation – Additional transport costs
– Inventory carrying costs
– Increased handling damage – Poor delivery performance (capacity problems with
railroads & trucks)
13
Great Lakes St Lawrence Seaway Challenges - 2
• Regulatory – Aquatic Invasive Species & Ballast Water regulation
• Regulatory – Emission controls & Low sulfur bunkering
• Safety & Security - Adequate funding of US Coastguard hardware and operations
• Infrastructure – Harbor maintenance funding
• Infrastructure – Dredging (continued long-term health of the system depends on robust freshwater and salty traffic)
• Governmental/QANGO – Cleveland Port relocation – Asset maintenance (Seaway)
14
Opportunities
• Maximize use of environmentally friendly maritime routes
Short-sea shipping? Ro-ro?
Container traffic?
• Optimize intermodal interface → better performance to customers
• Ramp up US export performance
15
The information contained herein is confidential and must not be used or disclosed by anyone without the express permission of Corus.
Neither Tata Steel Europe Limited nor any of its subsidiaries can accept any responsibility for any use or misuse of the information by anyone. No warranty, representation, statement or undertaking is given regarding such information as to its accuracy or other attributes, nor is any implied by statute, custom or otherwise.
Nothing contained herein shall be deemed to be either any advice of a financial nature to act or not to act in any way whatsoever or any invitation to invest or deal in any form of investment, including stocks, bonds, ADRs or securities.
Copyright on all images is owned by Tata Steel Europe Limited or others and used under license.