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Archive for June, 2008

Lake Michigan salmon fishery on brink of collapse? Lake Huron’s has already crumbled

June 30, 08 by TheFleet

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by Dan Egan | Source: Milwaukee Journal-Sentinel

The salmon fishery has collapsed on Lake Huron, and it happened in just a few years. In 2003, Michigan’s 10 busiest ports on Lake Huron saw about 1.2 million recreational fishing hours, according to the Michigan Department of Natural Resources. Last year, that number dropped to approximately 300,000 - a decline of 75%.

And the effects of that collapse have crashed onto the streets of Deaton’s Harbor Beach, a town of about 1,800 along Michigan’s Lake Huron coast.

“As you’re driving through town, just look side to side,” says tackle shop owner Art Farden. “We’ve lost three grocery stores in the last five years.”

…it’s no stretch to say the salmon collapse has been catastrophic to the local economy.

The problem is the little fish that sustained the big salmon have disappeared.

…The worry now is the troubles will spill into the much more heavily populated - and heavily fished - Lake Michigan.

It might already be happening. The numbers of forage fish that sustain the salmon on Lake Michigan are dropping like the cannonball-sized sinkers that charter boat captains use. The estimated volume of forage fish in 2007 was at a record low of about 31,000 tons, a 93% decline from the late 1980s.

“I’m waiting for the other shoe to drop. I’m really concerned,” says Dan Thomas, president of the Great Lakes Sport Fishing Council.

… Six summers ago, the U.S. Army Corps of Engineers explored the idea of expanding the St. Lawrence Seaway to accommodate bigger oceangoing vessels to attract more business to the underused nautical highway.

The agency scoffed at worries that opening the Great Lakes to more overseas freighters would lead to more ecological chaos.

“The most dramatic impacts to the ecosystem have likely already occurred,” the Corps stated in a nearly 500 page report released in June 2002.

Those words proved ludicrously wrong.

Just five months after the report was published, researchers at the University of Wisconsin-Milwaukee discovered a fistful of suspicious mussels during a fish survey on the lake’s open waters, about 20 miles northeast of downtown Milwaukee.

The cluster of fingernail-sized shells turned out to be the scientists’ first encounter with the previously obscure quagga mussel, yet another invader that made its way into the Great Lakes as a stowaway aboard an ocean freighter.

In just six years, those filter feeders have gone from a curiosity to a cancer, smothering the lake bottom in a manner the zebra mussel never came close to doing and forever changing the way energy flows through Lake Michigan.

Asked how the lake could recover to something resembling its natural state, UWM senior scientist and quagga mussel expert Russell Cuhel responds:

“It can’t. It’s a new lake.”


Charts, photos, much more to this critical story at the Milwaukee Journal-Sentinel >>

Lakshmi Mittal joins Goldman Sachs board

June 30, 08 by TheFleet


Source: Associated Press

NEW YORK (AP) — Goldman Sachs Group Inc. said Sunday that billionaire steel magnate Lakshmi Mittal has been elected as an independent director at the world’s largest investment bank.

Mittal, who is chairman and chief executive of the world’s largest steel producer, ArcelorMittal SA, joined Goldman Sachs’ 13-member board Saturday…

Read the full story at the AP >>

Sector Snap: Analyst says steel prices yet to peak

June 30, 08 by TheFleet

See Also: No End In Sight To Commodity Inflation - an excellent detailed, more in-depth analysis at Oxford Analytica/Forbes

Source: Forbes

Barclays Capital analyst Amrita Sen said demand for the commodity has yet to peak - which means this year’s price increases will likely be followed by more such gains.

“The recent surge in steel prices can in no sense be seen to have peaked, given the tightness in the scrap and raw material market,” the analyst wrote.

Full story at Forbes >>

Great Lakes compact focus shifting to Congress

June 30, 08 by TheFleet

by John Flesher | Source: Mlive/Environment

Now the deal to govern nearly one-fifth of the world’s fresh surface water is close to ratification at the state level, and supporters are beginning to plot strategy for the final step: winning approval from Congress and the White House.

“There’s a sense of urgency because this is an increasingly valuable natural resource at a time when significant growth is taking place in water-short areas,” said David Naftzger, executive director of the Council of Great Lakes Governors.

The governors were jolted into action a decade ago when a Canadian company obtained a permit from Ontario to ship tankers of Lake Superior water to Asia. The company dropped its plan in the face of withering criticism. But legal experts said the lakes needed stronger protection.

Read the full story at Mlive/Environment >>

Dock project to add wharf $4M addition would help during low water

June 30, 08 by TheFleet

by Bill Shea | Source: Crain’s Detroit Business

Detroit’s $15 million effort to build a new public passenger ship terminal and dock will also see an additional $4 million to $5 million spent to construct an offshore wharf in the Detroit River.

Such a wharf would offer access to deeper water in times of low water levels, said John Kerr, economic development director for the Detroit/Wayne County Port Authority, the agency building the new facility and dock.

State and federal approvals are in hand, along with the money, to build a 21,000-square-foot terminal and dock on 1.3 acres southwest of the Renaissance Center and near Hart Plaza off Atwater Street. The site currently is fenced and is home to overflow parking for Detroit police cars.

… The authority’s project is aimed at turning the city into a port of call for cruise ships, naval vessels, tall ships, day tours and other craft that ply the Great Lakes. A ferry service to Windsor and water taxi are also possibilities.

“There’s demand for more waterfront traffic, recreational or tourism,” Kerr said, adding that a group of tour operators from the U.S. and Europe visited the city last week and was interested in the terminal and dock project.

The two-story terminal will house a processing area for tourists, ticket counters, the authority’s headquarters and a public plaza. Space will be set aside for future use by U.S. Customs and Border Protection.

Read about the detailed, involved plans at Crain’s Detroit Business >>

Nucor Steel chief predicts decades of high commodity prices

June 27, 08 by TheFleet


By Steve James | Source: Reuters

The price of steel-making raw materials such as iron ore, coal and scrap metal will continue to rise for several years, keeping pressure on manufacturers and consumers, the head of U.S. steelmaker Nucor Corp said on Wednesday.

“The bull market for commodities will last for decades to come, and our customers need to get used to it,” Dan DiMicco, the company’s chairman, president and chief executive, told a steel conference.

His comments, at the American Metal Market’s Steel Success Strategies conference, echoed those of U.S. Steel Corp’s Chief Executive Officer John Surma on Tuesday.

Full story at Reuters >>

Severstal Boosts Esmark Offer; Wins Board Support

June 27, 08 by TheFleet


By Dale Crofts | Source: Bloomberg

OAO Severstal, Russia’s largest steelmaker, boosted its takeover offer for U.S. producer Esmark Inc. by 13 percent to $775 million and entered a merger agreement with the target company.

Investors will receive $19.25 for each Esmark share, up from an earlier bid of $17, Cherepovets, Russia-based Severstal said today in a statement. Esmark’s board of directors will recommend shareholders tender their shares, the company said in a separate statement.

Read the full story at Bloomberg >>

ArcelorMittal chief sees global steels shortage as demand increases

June 26, 08 by TheFleet

Related Must-Read: Heavy Industries Joining Stampede to Raise Prices; Posco and Dow Chemical Follow ‘Global Trend’ - RedOrbit

Stewart Bailey and Dale Crofts | Source: LiveMint

Chief executive of ArcelorMittal Lakshmi Mittal said the world may be facing its first steel shortage in decades because of accelerating demand and a lack of investment when the metal was trading at lower prices.

“There is short supply; all steel companies are running at full capacity,” Mittal said in an interview in New York. “We’re facing for the first time in decades a potential shortage of steel.”

The “volatile years of boom and bust” in steel prices have been relegated to the past, Mittal said. Users of steel will have to “adjust to the new reality and the new pricing environment.”

Mittal discusses current company strategy at LiveMint >>

Michigan Compromise Reached On Compact & Water Management Bills

June 26, 08 by TheFleet

Source: Great Lakes Environment

Senator Patty Birkholz (R-Saugatuck Twp) and Representative Rebekah Warren (D-Ann Arbor) announced that they had reached consensus on Michigan’s landmark water protection legislative package to adopt the Great Lakes-St. Lawrence River Basin Water Resources Compact and implement a new standard for evaluating large quantity water withdrawals.

While most interest groups are pleased with the compromise, the major unsettled issue remains the lack of a “public trust” doctrine provision that was the central concern of former Governors William Milliken (R) and James Blanchard (D) and many environmental interests.

Excellent detailed story at the Great Lakes Environment >>

The Demand for Ore is Robust but Cargo Movement Slips

June 26, 08 by TheFleet

Source: Seaway Channel

Even though there was an 8 percent increase in iron ore tonnage, total cargo movement by U.S. flag laker vessels on the Great Lakes dropped by 2 percent in the month of May compared to last year’s figures. On the bright side however, the 5-year average for the May tonnage float (approximately 11.9 million net tons) was met this past month according to the Lakes Carriers’ Association (LCA).

The downturn was more painfully felt in terms of stone and coal tonnage …

Full story, causes and statistics at the Seaway Channel >>

Lake Michigan up 5 inches for June

June 26, 08 by TheFleet


Brian Mulherin | Source: Ludington Daily News

Lake Michigan, which normally comes up 2 inches in June, is up 5 inches through 22 days.

Lake Michigan is by no means at or even near its long-term average, but it’s getting closer every month. Right now, the lake is about 14 inches below the average June level from 1918-2007. The lake’s current elevation, 578.1 feet above sea level, is 4 inches above last year’s water height.

Higher lake levels mean Great Lakes shippers can carry more freight and might mean easier recreational boating for many.

More details, quotes from USACE at the Ludington Daily News >>

Disagreements abound over Saginaw River Dredging facility; hearing

June 25, 08 by TheFleet


by Jeff Kart | Source: The Bay City Times (See photos, map)

The [Dredged Material Disposal Facility] - a 200-acre clay pit built in Frankenlust and Zilwaukee townships to hold dredgings from the Upper Saginaw River - was discussed Tuesday night at a public meeting at Saginaw Valley State University.

Disagreements were everywhere among the 50 people who attended.

… Residents who live across from the site in Zilwaukee Township, which also includes hundreds of acres of constructed wetlands, don’t think either agency has done enough to deal with their concerns.

They worry that the DMDF was built in a flood plain that was underwater in 1986 and will hold levels of dioxins and furans far above the state residential contact criteria for the compounds, of 90 parts per trillion.

Dioxin levels in the Saginaw River, blamed on historical discharges by Dow Chemical in Midland, have been measured at 1.6 million parts per trillion, the highest in the nation.

Terry Miller, chairman of the local Lone Tree Council environmental group, said the Corps should conduct environmental dredging, with a vacuum and hose, rather than standard dredging, with a crane and bucket, to minimize the spread of contaminants.

But Leady said his agency has determined that “standard mechanical dredging is a safe practice here.”

… The Corps plans to award a contract in August, and conduct the dredging throughout the rest of the year, putting in the most contaminated materials first, based on sediment testing.

Solids in the dredgings, which will be mostly water, will settle out in three cells of the facility over a number of months.

Water will be discharged back to the river once it’s been tested and shown to meet DEQ water quality standards.

Excellent detailed story, see photos and map at The Bay City Times >>

Shell still assessing damage to freighter fueling dock

June 25, 08 by TheFleet


BY JESSE MCLEAN | Source: The Observer (Sarnia, Ont.)

Shell Canada is still assessing the damage to its massive refueling dock after a freighter crashed into the structure Friday morning.

The north end of the dock on the St. Clair River remains closed, said Shell spokesperson Kristina Zimmer, adding it’s unclear how long the investigation will take.

Repairs have not yet begun and the the company doesn’t know the cost of the damage yet, Zimmer said.

Ships are being diverted to other refueling docks throughout the Great Lakes.

Read the full story at the Observer >>

EPA proposes new discharge permit for all vessels on lakes, not just ships

June 25, 08 by TheFleet

By JEFF KART | Source: Bay City Times

The U.S. Environmental Protection Agency released a formal proposal last week to require commercial and recreational boaters to get pollution discharge permits similar to those issued to wastewater treatment plants.

The permits would cover everything from deck and hull cleaning to fueling, trash management and graywater discharges, with categories for boats under 79 feet long, and boats 79 feet and longer.

The proposal is the EPA’s response to a 2005 ruling by a California district court in a case focused on invasive species that can travel in the ballast water of large ships.

The court ruled that the EPA had overstepped its authority in not requiring Clean Water Act permits for discharges from the normal operation of vessels.

The agency estimates that 91,000 domestically flagged commercial vessels would be affected by the permits, along with 13 million recreational boats and 8,000 foreign flagged vessels. There are more than 1 million recreational boats in Michigan waters.

“This is the result of Michigan and several other states suing the EPA over the need to regulate ballast water from the ocean-going ships,” said DEQ spokesman Robert McCann.

“This is EPA’s approach they want to take and it’s actually not an approach we agree with.”

More about proposed legislation and comments from boating groups, at the Bay City Times >>

ArcelorMittal to buy Appalachian-area coal producer Mid Vol Coal Group

June 25, 08 by TheFleet


by Tim Huber | Source: Forbes

ArcelorMittal said Monday it has agreed to buy Mid Vol Coal Group, which owns approximately 85 million tons of reserves in Central Appalachia. ArcelorMittal is already the largest customer of Mid Vol, which produced 1.5 million tons of coal last year from West Virginia and Virginia mines, ArcelorMittal said.

ArcelorMittal’s U.S. acquisition focuses on metallurgical-grade coal, which is used to make coke for steelmaking. Metallurgical coal prices have soared from less than $100 a ton a year ago to as much as $250 a ton this year.

“This acquisition further increases our upstream self sufficiency in a primary raw material during a time when metallurgical coking coal demand on a global scale remains strong,” Chief Financial Officer Aditya Mittal said in a statement.

Read the full story at Forbes.com >>

Marine Safety Unit Duluth Change of Command

June 25, 08 by TheFleet

Cmdr. Michael Lebsack will relieve Cmdr. Gary Croot as Commanding Officer Marine Safety Unit Duluth at the Duluth Entertainment and Convention Center Thursday, June 26. Captain Mark Huebschman, Commanding Officer of Sector Sault St. Marie, Mich. will preside over the ceremony.

During the ceremony Commander Croot will be recognized for his superior leadership and service while serving as Marine Safety Unit Duluth’s Commanding Officer from June 2005 to June 2008. Highlights during Commander Croot’s tour included:

  • Championed dramatic improvements to the Port’s Area Maritime Security Committee process and built strong partnerships critical to the success of many highly visible joint exercises.
  • Directed a comprehensive in-depth investigation aboard the S/S KAYE E. BARKER ultimately leading to dramatic fleet-wide improvements of propulsion boiler safety.
  • Aligned scientific authorities and natural resource trustees to assist in the development of ballast water treatment regulations; mitigating future environmental damage to the Great Lakes’ ecosystem.
  • Oversaw 646 domestic and foreign vessel inspections, 238 waterside facility inspections, 86 marine casualty investigations, and 72 pollution responses.
  • Implemented the Transportation Worker Identification Credential enforcement requirements for the western Lake Superior area.
  • Port Huron, Mich. could be called a Ship-Watching Capitol

    June 23, 08 by TheFleet

    See Also: Freighter Frank’s website (great photos — great recipes!)

    By ERICA BLAKE | Source: Toledo Blade

    “At one time, they called it the Venice of the U.S.,” Alan Konop said of Port Huron, a Michigan city on the shores of Lake Huron.

    Along the St. Clair River, just south of where the river meets Lake Huron, the once-industrial riverfront is becoming a place to boat-watch.

    Visitors and locals alike go to the Great Lakes Maritime Center to have a cup of coffee, eat their favorite doughnut, and watch the massive freighters of the inland seas go by.

    According to Frank Frisk, who spent years as a crew member on freighters of the Interlakes Steamship Co., Port Huron is the best place on the lakes to witness one of the area’s oldest industries.

    “I just think [people] are mesmerized by the size and the fact that they float,” he said while seated near the center’s windows, which overlook the swiftly moving river.

    “On average, 900 to 1,100 ships go through here in a shipping season,” he added. “A lot of people have their favorite ship and they follow it all summer long.”

    Read the full story at the Toledo Blade >>

    US steel industry wins trade case against China

    June 23, 08 by TheFleet

    By MARTIN CRUTSINGER | Source: Yahoo News

    U.S. steel pipe manufacturers, who have been battling a surge in imports from China, won a major victory Friday when the International Trade Commission cleared the way for the imposition of stiff penalty tariffs for the next five years.

    The commission voted 5-0 that the U.S. industry was being harmed by the import of circular steel pipe. The decision marked the first time a U.S. industry has won a decision to impose tariffs on a Chinese product based on the argument that the Chinese government was unfairly subsidizing a Chinese industry.

    The ruling means penalty tariffs ranging from 99 percent to 701 percent will be imposed on Chinese imports of circular welded pipe.

    Read the full story at Yahoo News >>

    Circa-1880s depth chart of Saginaw River found in attic

    June 23, 08 by TheFleet

    by Barrie Barber | The Saginaw News

    Richard C. Curry unearthed a 123-year-old map of the murky bottom of the Saginaw River.

    No one knows the origins of the map, which shows how deep the water was along about a mile of the serpentine waterway.

    But it’s signed by O.M. Poe, a “Lieut. Colonel of the Engineers and C.”

    … “I just thought it would be a nice piece to donate,” Curry said.

    The cartographic drawing suggests that sailors and business barons considered the depth of the river, which floated legions of logs during the booming lumber era, as important as modern-day mariners do in 21st century Saginaw, Mudd said.

    “The navigation corridor was there even in the 1880s,” he said. “They most likely were dredging at that time.”

    Read the full story and see a picture of the old map at the Saginaw News >>

    Another fire battled at Port of Indiana-Burns Harbor Friday

    June 23, 08 by TheFleet

    Source: Post-Tribune

    Firefighters battled a three-alarm structure fire for nearly four hours Friday evening at the Port of Indiana in Burns Harbor.

    Portage Assistant Fire Chief Mike Bucy said firefighters heard the alarm at 9:50 p.m.

    Upon arrival, Bucy said there was heavy smoke and flames coming from a building that stores fertilizer.

    “It appeared the fire had been burning for a while,” Bucy said.

    Bucy said the 11,000-square-foot building and its contents were a total loss. He didn’t have an estimate. The building is owned by Frick Services.

    Read the full story at the Post Tribune >>