The Greatest Ships on the Great Lakes

LAKE CARRIERS’ ASSOCIATION

™

Help you appreciate marine transportation by:

• Discussing a critical driver to the region’s economy.

• Providing a global perspective on marine transportation.

• Looking at a model maritime transportation policy.

• Understanding the Big Picture – Different market segments, modes, and cargos.

• Call for action.

OBJECTIVE

TRANSPORTATION ECONOMICS&

BASIC NAVAL ARCHITECTURE

• Place Value — Things have different value in different places.

• Mode Selection — Value/weight of cargo determines the mode. (TVM > Trns Cost?)

• Ship Design is a Trade-Off.

• Tons Per Inch Immersion (TPI) Why we need deep water:

250 — 270 TPI……… 1,000’ Laker

70 — 120 TPI……… other Lakers 100 TPI……….“saltie”

ECONOMICALLY SOUND

• 95% of U.S. trade moves by ship ($742 billion).

• Vessels move 24% of the domestic U.S. cargo for less than 2% of the total costs.

• One 1,000-footer = 47 river barges = 700 rail cars = 2,800 trucks.

• Can move 1 ton 800+ miles (i.e., Duluth to Cleveland) for the cost of lunch at a fast food restaurant.

• 1.7 tons of raw materials to make 1 ton of steel.

• $32 million to build 1 mile of freeway.

ENVIRONMENTALLY FRIENDLY

• Produce Fewer Emissions:– Half of Rail– 10% of Truck

• Consume Less Energy:– Tons moved 1 km by 1 liter of fuel

Truck = 50 Rail = 97 Water = 127

ENVIRONMENTAL GROUP’SSUPPORT FOR SHIPPING

• Section 7 Water TransportA. Introduction“TR400 Water transport is energy efficient, usually has a low environmental impact, andcan offer significant benefits to the economy. Well-managed ships generally cause less environmental damage than other motorized methods for the transportation of goods. Ships compare favorably in respect of air pollution, noise and use of land for infrastructure.”

The Green Party http://policy.greenparty.org.uk/mfss/transprt.html

SOCIALLY RESPONSIBLE

• Vessel to rail shift:– 36 more rail crossing accidents.– 14 derailments.– 1 train collision.

• Vessel to truck movement:– 141 more truck / car accidents.– 35 additional fatal traffic accidents.

TRADE PATTERNS

REGION’S ECONOMY

• 70% of U.S. steel capacity.

• 60% of North America’s steel capacity.

• 60% of North America’s auto manufacturing.

• 55% of Ohio’s jobs are manufacturing.

• $4.3 billion (U.S.) in personal income from Great Lakes shipping.

IMPACT OF REGIONAL TRADE

• U.S.-Flag Lakers typically haul 120 million tons.

•Canadian-Flag Lakers ... 60 million tons.

•Salties ... 20 million tons per year.

•The 70,000-ton iron ore cargos the 1,000-footers haul when water levels permit are enough product to keep a major steel mill in operation for 4 to 5 days.

• A 70,000-ton coal cargo will supply Greater Detroit’s electricity needs for a day.

1 SHIP = 2,800 TRUCKS. = 25 tons per truck

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MARINE TRANSPORTATIONIT’S THE GREASE THAT KEEPS THE ECONOMY MOVING !

• 95 percent of the tons and 75 percent of the value of all cargo moves by marine transportation.

• Soo Locks handle more tonnage than the Panama Canal.

• Most environmentally friendly – less pollution.

• Most economical.

• Does not congest our highways or overburden our aging railbeds.

DO YOU WANT?

• A Strong Regional Economy with National Impacts.

• Electricity.

• Construction.

• Healthy Environment.

• National Security.

Quality of life begins with a job!

The Greatest Ships on the Great Lakes

LAKE CARRIERS’ ASSOCIATION

™