GLIN==> Lake Carriers' Association Hails Effort To Build New Coast Guard Icebreaker for Lakes Service

Submitted by Glen Nekvasil <nekvasil at lcaships.com>


Lake Carriers' Association

For Immediate Release

September 24, 2009

Lake Carriers' Association Hails Effort To Build

New Coast Guard Icebreaker for Lakes Service

CLEVELAND-The much-needed new Great Lakes icebreaker took a giant step toward reality

today thanks to legislation passed by the House Committee on Transportation and Infrastructure.

Rep. James L. Oberstar (D-MN), Committee Chairman, included a provision in the Coast Guard

Authorization Act directing the service to spend $153 million to build a new heavy icebreaker for

assignment to the Great Lakes.

"We are deeply appreciative of the Congressman's efforts," said James H.I. Weakley, President of

Lake Carriers' Association, the trade association representing U.S.-Flag vessel operators on the

Great Lakes. "When the economy is hitting on all cylinders, our members can move 20 million

tons of cargo during periods of ice cover. Those cargos of iron ore, coal, and other commodities

are key to keeping the economy strong."

The U.S. Coast Guard has eight vessels stationed on the Great Lakes with icebreaking

responsibilities. The newest, the MACKINAW, was launched in 2006 and has performed

admirably. Two other vessels that were built this decade have proven less effective. Five other

vessels date from the 1970s and are now subject to frequent breakdowns.

"We know the Coast Guard crews are doing their very best, but in particular, the vessels built in

the 1970s just can no longer reliably meet the needs of commerce," said Weakley. "In March and

April of 2008, our members suffered more than $1.3 million in ice-related damages to their vessels

because the Coast Guard could not adequately maintain the shipping lanes."

Weakley also noted that as the United States looks explore new opportunities in the Arctic, it is

imperative the Coast Guard maintains a cadre of sailors with icebreaking experience. This new

Great Lakes icebreaker will improve the efficiency of Great Lakes winter sailing and at the same

time improve the nation's ability to operate in the polar regions.

Shipments of dry-bulk cargos on the Great Lakes generally begin in early March and extend until

the end of January. The ice that forms can be 3-4 feet thick. Windrows, slabs of ice piled atop

one another by the wind, can be 12-15 feet high. Although some vessels have ice-strengthened

hulls, commerce cannot move with any certainty unless the Coast Guard is breaking ice.

"Cargos carried during the ice season are key to keeping American industry competitive," said

Weakley. "The steel mills and power plants need to keep stockpiling costs to a minimum."

The new icebreaker is also needed to help offset the lack of Canadian icebreakers on the Great

Lakes. Canada used to have seven icebreaker of its own on the Lakes. The county now stations

but two icebreakers on the Lakes.

"Icebreaking is a key Coast Guard mission," said Weakley. "It is conducted under the authority of

a 1936 Executive Order from President Roosevelt. The first MACKINAW was launched in 1944 to

ensure that American steel mills got the iron ore the country needed to build the tanks, warships,

and bombers that won World War Two. Now as we fight an economic war every bit as

threatening, the nation must have reliable shipping on the Great Lakes. Again, we thank

Congressman Oberstar for his never-ending commitment to Great Lakes shipping and a strong

America."

Lake Carriers' Association represents 18 American companies that operate 55 U.S.-Flag vessels

on the Great Lakes and carry the raw materials that drive the nation's economy, including iron ore

and fluxstone for the steel industry, limestone, and cement for the construction industry, and coal

for power generation. Collectively, these vessels can transport more than 115 million tons of

cargo a year when high water offsets lack of adequate dredging. More information is available at

www.lcaships.com.

Source: Lake Carriers' Association.

Contact: Glen G. Nekvasil, Vice President - Corporate Communications (440-333-9996).

-30-

Information based on data from knowledgeable sources. However, accuracy cannot be guaranteed. Lake Carriers'

Association assumes no legal responsibility for the outcome of decisions or commitments made on the basis of this

information. This report represents the views of Lake Carriers' Association and may not necessarily represent the

views of its individual members.
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