Projects have been good for St. Lawrence Seaway
Massive future projects could bring even more business
By Peter A. Buxbaum, AJOT
The St. Lawrence Seaway has emerged as a desired route for projects and heavy pieces, cargo that could cause problems if transported over the road. Equipment for wind generation is one growth area, with components offloaded in Duluth, Burns Harbor, and other ports making their way to new wind farms from Minnesota to Colorado.
Potential future growth for the Seaway and the Great Lakes is not limited to alternative energy. Major oil exploration in Alberta and huge mining infrastructure projects in Quebec are expected to yield large volumes of cargoes in coming years.
The St. Lawrence Seaway experienced strong growth during 2010 navigation season, with a 15 percent increase in total cargo volumes. While shipments of iron ore and grain posted healthy increases, the most dramatic area of growth was a 63 percent surge in general cargo, which consists of iron and steel break-bulk shipments and project cargo. Cargo levels for 2011 duplicated 2010’s numbers.
The Seaway stretches 2,500 miles and connects the Atlantic Ocean with the Great Lakes with a system of locks, canals, and channels, permitting ocean going vessels to reach Lake Superior and the North American heartland. The Seaway is managed binationally by the Canadian St. Lawrence Seaway Management Corp. and the U.S. St. Lawrence Seaway Development Corp., an agency of the U.S. Department of Transportation.
According to a new study released October 18, the Great Lakes-St. Lawrence Seaway navigation system supports over 225,000 jobs and generates billions of dollars in income and revenues annually in both the U.S. and Canada. Analysts found that maritime commerce on the Great Lakes Seaway System generated $34 billion in business revenue, $14 billion in personal income, and $4.6 billion in federal, state, provincial, and local tax revenue.
“We have seen project cargo volumes steadily rise over the last ten years except in during 2009, when the economic downturn impacted everyone,” said Bruce Hodgson director market development St. Lawrence Seaway Management Corp. “Volumes in 2010 rebounded to pre-2010 levels and 2011 saw the same levels as 2010. Considering the state of the economy we think that is a a good indicator of the Seaway’s robustness.”
“The Seaway has become a leader in handling wind energy components,” said Terry Johnson, Administrator of the U.S. Saint Lawrence Seaway Development Corporation. “The first ship coming through the locks this year carried wind energy equipment.”
“Duluth and Thunder Bay have been handling a lot of wind energy components,” said Hodgson. “Those components have been traveling as far west as Colorado. We have seen refinery projects and a variety of projects destined for the Great Lakes region coming through the Seaway.”
Components for a refinery project in Michigan came through the Seaway and were offloaded at Burns Harbor earlier this year. The project, which also included shipments of platforms, flame gas burners, piping, and beams, were shipped primarily from the Philippines and elsewhere in the Far East. The shipments, loaded on heavy lift vessels, crossed the Pacific Ocean, traversed the Panama Canal, and transited down the St. Lawrence Seaway to the Great Lakes.
“Close behind wind components is equipment for oil sands exploration in Alberta,” said Johnson. “Because of their size and weight they often need to come at least part of the way by water. We also have some pipeline projects under way.”
Alberta has proven oil reserves of over 170 billion barrels, the world’s third largest. The Canadian Energy Institute estimates investment of $218 billion in the region over the next 25 years. Hodgson believes equipment shipments to that region will represent a major growth area for the Seaway.
That the Seaway attracts large volumes of project cargo is no coincidence. The Seaway markets itself worldwide as an advantageous route for heavy and project cargo under the banner, “Highway H2O.” The campaign promotes S
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