GOVERNOR MARKELL VISITS THE PORT OF WILMINGTON

F I S K E R A U T O M O T I V E S E L E C T S D E L A W A R E

S P E C I A L P O I N T S O F I N T E R E S T :

• Governor visits Port

• Fisker Automotive

• Delaware deepening

• Chilean relief

• Exports to Chile

• Connie Award

• New mooring dolphin

• Bulk salt

• Sub-Saharan Delegation

• New Security Manager

• Upcoming events

G O V E R N O R M A R K E L L V I S I T S T H E P O R T O F W I L M I N G T O N

On Friday, December 4, 2009, Governor Markell v is i ted the Por t o f Wilmington and received an in-depth briefing on port operations, the Port’s customer base, and the scope of their businesses. This was followed by a driving tour over the 308 acres of the Port’s footprint and a frank conversation on infrastructure needs and opportunities. His visit wrapped up wi th a roundtable meeting with all major Port stakeholders. The conversation with De laware’s CEO was energizing, constructive, and very positive. Wide-ranging t o p i c s i n c l u d e d t h e deepening of the Delaware River and the need for more

capital funding for the Port.

Governor Markell made it very clear to all that he valued the Port as one of the State’s most important assets and acknowledged its e n o r m o u s e c o n o m i c contribution as well as that

of its many loyal stakeholder companies to the State of Delaware. The Governor stressed that jobs, jobs, and more jobs for Delawareans are the single most important priority of his administration. His business development team in Dover, lead by DSPC

Chairman and Delaware’s Director of Economic Development, Alan Levin, is working to bring more businesses to Delaware and to make it easier for companies in the State to grow and create more employment. The Governor emphasized that all options were on the table when it came to helping the Port to retain and expand its customer base and to position itself for growth in the out years.

Governor Markell closed the meeting by thanking all for their contribution to Delaware and pledging to visit the Port again in the near future.

On the 21st of January, the Governor announced in his State of the State Address a capital appropriation of $10 million for the Port in the State’s FY 2011 budget.

Thank you Governor Markell!

(L-R) Governor Jack Markell; Chiquita Fresh North America’s General Manager at the Port of Wilmington, Tom Avino; Dole Fresh Fruit Company’s Terminal Manager, Sean Clancy; and Delaware Economic Development Director and DSPC Chairman, Alan Levin

Fisker Automotive, a manufacturer of upscale plug-in hybrid electric cars based in Irvine, CA, commenced negotiations in early 2010 to purchase the idled GM Boxwood plant near Wilmington, DE. Fisker solidly believes in the future of “green” automobiles and plans to eventually build more than 100,000 vehicles annually at the Boxwood plant for domestic and overseas markets. As Fisker’s business plan calls for exporting the majority of these new autos, the proximity of the Boxwood plant to the Port of Wilmington was a key factor in its decision to buy the former GM plant. The Port of Wilmington offers decades of experience in the finished vehicle logistics business and frequent service by vessel owners offering specialized vehicle transportation to overseas markets.

Continued on page 4

Fisker’s Karma is an upscale plug-in hybrid that will initially be assembled in Finland and shipped to U.S. retailers beginning in early 2011.

A Pullen dredging boat dredges in the Delaware River near Delaware City. Thursday, March 18, 2010. John Ziomek/ Photo by the Courier-Post Newspaper/www.courierpostonline.com

1,000 houses before winter’s arrival.

The DSPC established a relief fund, and reached out to the local maritime community for support. More than $42,000 has been collected so far. On March 16, four containers loaded with relief cargo were shipped to the Port of Valparaiso, Chile onboard Pacific Seaways’ m/v Cold Stream. The cargo included 500 sheets of Galvalume roofing, nearly 20,000 sf in tota l , for res ident ia l construction, along with securing materials. These customized sheets are thin, light, and easy to install. Fifty

D E L A W A R E R I V E R D E E P E N I N G T O 4 5 F T . B E G I N S !

determine if it was in the federal interest to deepen the existing 40 ft Delaware River main shipping channel. Since then many studies have been conducted on the economic and environmental impacts the deepening would have on the region. The project is vital to keep the river's ports competitive and protect good paying maritime jobs. The widening of the Panama Canal scheduled for completion in 2014 will make it more economically feasible for all-water services from the Far East to call the U.S. East Coast ports that have deepwater channels.

The combined ports of the Delaware River currently support an estimated 75,000 jobs, generating billions… Continued on page 4

Beginning in December and running through April, Pacific Seaways’ specialized refrigerated vessels (reefer ships) discharge Chilean winter fruit at the Port of Wilmington. The utilization of large capacity reefers loading in Chile for Wilmington provides excellent opportunities for return cargo. Shippers read-ily take advantage of Pacific

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W I L M I N G T O N ’ S M A R I T I M E C O M M U N I T Y S U P P O R T S C H I L E

S O U T H B O U N D C H I L E A N H E A V Y L I F T

Seaways’ direct transit to Chile and over the years have found their southbound service particularly attractive for exporting a variety of heavy lift pieces such as fire trucks, farm equipment, rock crushers and buses.

In February, the M/V Comoros Stream loaded a 58-ton self-propelled Grove crane. Murphy Marine Services’ longshoremen

portable toilets were also shipped.

Many thanks to Barthco In ternat iona l , Murphy Marine Services, Pacific Delaware, Royal Fumigation, Terminal Shipping, the DSPC and others for organizing and coordinating this relief shipment. Contributions for additional relief cargo are still being accepted. Checks can be made payable to DSPC and sent to:

Wilmington Trust Company Attn: Danielle Quinnette, D/C1300 0000 1100 North Market Street Wilmington, DE 19890

You may also wire your

The local maritime community cheered when on the 25th of February, after nearly three decades of delay and controversy, the Third Circuit Court of Appeals l denied a request to stop the Delaware River deepening project. The U.S. Army Corps of Engineers (USACE) commenced deepening the first 12 miles on March 1. The project will include deepening from 40 to 45 ft approximately 102 miles of the main navigation channel stretching from Philadelphia, PA/Camden, NJ harbors to the Delaware Bay. It will cost over $330 million with nearly two-thirds funded by the federal government and the remainder by the Philadelphia Regional Port Authority.

In 1983, Congress directed the Philadelphia District of the USACE to begin a study to

carefully guided this 45 ft long heavy lift onto the cover of the ship’s number 3 hatch, landing it on empty container flat racks, previously positioned to better distribute the Grove crane’s weight. The Port’s C4 gantry crane, with its 75 long tons capacity was used to lift it from the berth 1 apron onto the vessel’s deck.

Port of Wi lmington’s maritime community was saddened by the news of the horrific earthquake that hit Chile on February 27. Within days, the Diamond State Port Corp. (DSPC) c o n t a c t e d F r a n c i s c o Labarca, Executive Director of Pacific Seaways, the shipping line that carries Chilean fruit to the Port, and expressed an offer to assist. Mr. Labarca invited our community to join Pacific Seaways’ efforts to rebuild Peralillo, a town of 9,000 people located about 250 kilometers south west of Santiago in the Colchagua Valley. Perillio needs to build

Pacific Seaways’ M/V Comoros Stream loading a 58-ton self-propelled Grove

crane for southbound voyage to Chile

contribution to Wilmington Trust using the ABA routing number: 031100092, A c c o u n t n u m b e r : 2988-7381.

All contributions are tax deductible.

Thank you for your support!

Chilean relief cargo leaving Wilmington

MAY PURCHASE A

NEW PHOTO

The new mooring dolphin will enable the berthing of vessels up to 900 ft long at the Auto Berth on the Delaware River

The Diamond State Port Corporation has recently completed the construction of a new $1 million mooring dolphin for the Auto Berth on the Delaware River. The mooring dolphin will allow larger car carriers to dock at the Port’s dedicated RoRo (Roll-on-Roll-off) Berth, which is also the Port’s first berth on the Delaware River.

As reported in the summer issue of Port Illustrated, Höegh Autoliners has recently “stretched” 10 of its Pure Car and Truck Carriers by 100 ft, increasing each vessel’s carrying capacity to 7,000 CEUs (car equivalent units). These vessels call at the Port of Wilmington regularly and require the additional capabilities of the new mooring dolphin.

James E. Butcher, Chairman of Höegh Autoliners, Inc. was presented with the 2009 Connie Award at the C o n t a i n e r i z a t i o n & Intermodal Institute’s Annual Dinner on December 7. Butcher was honored for his significant contribution to the development of worldwide trade and transportation.

Jim Butcher joined Höegh Autoliners as Operations M a n a g e r w h e n t h e Norwegian carrier first opened its U.S. offices in 1973.

Butcher became Vice President in 1977, was promoted to Executive Vice President in 1993, and became President in 1999. He was named Chairman of Höegh Autoliners Inc. in April 2009 and also serves as Chairman of two other Höegh companies - Al l iance Navigation LLC and Port Dolphin Energy LLC.

Under his leadership, Höegh Autoliners became one of the world’s leading providers of RoRo (Roll-on-Roll-off) transportation services. The company operates 70

J I M B U T C H E R — R E C I P I E N T O F T H E 2 0 0 9 C O N N I E A W A R D

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James E. Butcher, Chairman of Höegh, Autoliners, Inc.

B U L K S A L T I N U R G E N T D E M A N D

P O R T P L A C E S N E W M O O R I N G D O L P H I N I N T O S E R V I C E

Pure Car and Truck Carriers (PCTSs) which are managed from 31 offices world wide. Höegh has been calling at the Port of Wilmington since the early 70’s and became a Port tenant in 2009.

Höegh Autoliners Inc. is the U.S. subsidiary of Höegh Autoliners AS, an Oslo, Norway-based global ocean carrier and logistics services company specializing in the transportation of vehicles, rolling stock and high and heavy cargo.

P O R T I L L U S T R A T E D — V O L . 1 7 N O . 1

At the Port of Wilmington,

winter is associated with

Chilean fruit imports.

However, winter also means

the handling of bulk salt

cargoes, including Chilean

road salt which is needed to

defrost ice on roadways. In

CY 2009, the Port handled

nearly 300,000 tons of bulk

salt, and between January

and March 2010 alone

about 130,000 tons.

This winter’s record snow storms resulted in two State of Emergency declarations in Delaware in February and u s e d u p t h e l o c a l municipalities’ salt reserves. The unrelenting storms did not allow sufficient time to schedule additional typical foreign re-supply, so within a week, two “rush” barge shipments were arranged from Newark, NJ to the Port.

GT Cargomaster , a gearless, covered hopper barge operated by Gateway Towing of New Haven, CT, discharged 11,071 net tons of bulk road salt using the Port’s gantry crane on the 13th and 16th of February. The salt was supplied by International Salt Company and was received and stored briefly by Port Contractors, Inc. Because the barge was in a domestic trade, jurisdiction for the barge

Congratulations to our friend Jim Butcher!

GT Cargomaster discharging urgent delivery of bulk road salt destined for the local municipalities this winter

walkway to the berth. Solar panels generate the electricity to power the unit itself and its lights. Whitney, Bailey, Cox & Magnani designed the project and Atlantic Subsea, Inc. oversaw its construction.

“The new mooring dolphin coupled with Wilmington’s dedicated Auto Berth and storage facilities on the Delaware River provide unmatched loading and discharge infrastructure for shippers of automobiles and RoRo cargoes,” said Scott Cornell, General Manager, Operational Area Americas for Höegh Autoliners. “Moreover, it supports our cargo growth out of the Port of Wilmington,” he added.

The mooring dolphin is located 235 ft south of the berth and was designed to allow berthing of vessels with length up to 900 ft. It is connected by an access

operations fell to Port labor, ILA 1694-1.

Their initial vehicle at the Boxwood plant, code named “Project Nina”, will use Fisker’s plug-in, range

F I S K E R A U T O M O T I V E — C O N T I N U E D F R O M P A G E 1

For info and to subscribe or unsubscribe:

Vered Nohi-Becker Phone: 302-472-7819 [email protected]

U P C O M I N G E V E N T S

• 5th Annual Experience the Taste of Chile 5:00 pm, April 28 University & Whist Club Info: 215-790-3627

• The Port of Wilmington Maritime Society’s Mix & Mingle 4:00—7:00 pm, May 5 Big Fish Grill Info: 302-656-7905

V I S I T B Y S U B - S A H A R A N P O R T L E A D E R S

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P O R T ’ S N E W S E C U R I T Y M A N A G E R

The Diamond State Port Corporation (DSPC) has recently welcomed aboard Jerry Custis as its new Security Manager, replacing Pat Hemphill who recently retired after three decades of service at the Port.

Jerry is also be the Port’s Facility Security Officer (FSO) and will oversee the implementation of the Port’s security plan. He is supported by 23 in-house security officers and staff and reports to DSPC’s D i r e c t o r o f H u m a n Resources, Sylvia Floyd-Kennard.

Prior to joining DSPC, Jerry served as a Captain in the W i l m i n g t o n P o l i c e Department (WPD) and lead its Office of Professional Standards (Internal Affairs). During his 25 years with the W i l m i n g t o n P o l i c e Department, Jerry spent 13 years as a supervisor or manager in all divisions of the Department. Previously he served as the Harbor Master for the WPD’s Maritime Unit and worked

P O R T I L L U S T R A T E D Quarterly publication of the Diamond State Port Corp.

Port executives from Sub-Saharan countries visited the Port of Wilmington

closely with the U.S. Coast Guard in providing support services to them. For the past decade, he served as the liaison officer between the WPD and the Port of Wilmington and has assisted in the planning, coordination, and implementation of secu-rity for special events at the Port.

P O R T I L L U S T R A T E D — V O L . 1 7 N O . 1

The Port of Wilmington hosted a group of 24 Sub-Saharan maritime executives on the 18th of February as part of a four week US Trade and Development Agency (USTDA) sponsored education program designed to expose delegates to “best practices” in port transportation, operations, management, and technology. Wilmington was considered a “must see” for the visiting port representatives because its operations were deemed to be an example of what is needed in their countries and because the Port handles a similar cargo mix. The delegation, representing Tanzania, Ghana, Liberia, and Kenya, had a very diverse background and included the operations, accounting, marketing, maintenance, engineering, safety, and logistics disciplines. Accordingly, a multiphase program addressed the varying group interests, including customized breakout sessions with Port directors to allow for detailed discussions and the chance to get specific questions answered.

Jerry Custis DSPC Security Manager

extending electric technology that eliminates the range limitation of pure electric vehicles. This vehicle

will have the capability to recharge batteries both from the grid and from an onboard power source.

...of dollars of economic activity and wages, and contributing more than $150 million in annual state and local taxes.

Not only will the deepening ensure the retention of good paying blue collar jobs in this region, it is also expected to directly create 8,000 new jobs which are critical to the future economic prosperity

D E L A W A R E D E E P E N I N G — C O N T I N U E D F R O M P A G E 2

of the Delaware River ports.

On April 2, the Government Accountability Office (GAO) released a statement requiring further examination of the project’s economic benefits due to recent changes in the local economy as well as questioning changes in regional shipping patterns. The USACE is in the process

of providing the GAO with the requested information. In addition, the State of New J e r s e y a n d l o c a l e n v i r o n m e n t a l g r o u p s continue to pursue litigation to stop the work on the balance of the project.

Port Illustrated will continue reporting on the progress of the project in its Summer issue.