Great Lakes Maritime Task Force 14th Annual Informational Briefing for the Great Lakes Delegation

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Great Lakes Maritime Task Force 14th Annual
Informational Briefing for the Great Lakes
Delegation

• Tom Buck, C.E.O.
• Carmeuse Lime and Stone
• April 2, 2009  Washington DC

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Great Lakes Shipping A Vital North American
Asset

• Carmeuse Lime Stone - Operations
• 18 Lime Plants (8 dependent on Great Lakes)
• 3 Lake Stone Quarries
• 16 Inland Stone Quarries/Mines
• 7 Sand Processing Facilities
• 10 Inland Terminals
• 3 Bulk Lake Terminals
• Corporate Headquarters (Pittsburgh, PA)
• RD Technology Center (Neville Island, PA)

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Great Lakes Shipping A Vital North American
Asset

• Carmeuse Lime Stone Employees
• 2,443 in North America
• Associated Payroll Taxes 13 Million per year
• 807 on Great Lakes
• Associated Payroll Taxes 4.3 Million per year

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Great Lakes Shipping A Vital North American
Asset

• Carmeuse Lime Stone Markets Served
• Steel Production
• Flue Gas Desulfurization
• Construction (Road and Land Development)
• Glass Production
• Water Treatment
• Waste Treatment
• Environmental Treatment
• Paper Production
• Chemical Production
• Masonry, Mortars and other Building Materials
• Oil and Gas Production

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Great Lakes Shipping A Vital North American
Asset

• Carmeuse Lime Stone Great Lakes Operations
  2008
• 14,000,000 Tons Outbound Stone Aggregates(Lake
  Quarries)
• 80 Years of Reserves
• 3,700,000 Tons Inbound Stone (Lake Plants)
• 400,000 Tons Kiln Fuel (e.g., Coal)

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Great Lakes Shipping A Vital North American
Asset

• Specific Carmeuse examples of lost tonnage due to
  draft

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Great Lakes Shipping A Vital North American
Asset

• Carmeuse The same number of vessels needed to
  deliver Carmeuse 2008 annual tonnage could have
  delivered the following additional tonnage if the
  lakes had been dredged to project dimensions
• Outbound Limestone 1,500,000 tons
• Inbound Limestone 400,000 tons
• Kiln Fuel (e.g. Coal) 50,000 tons

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Great Lakes Dredging Crisis Impact on Industry

• Top Three Trades in 2008
• Iron Ore - 59.2 Million Tons
• Coal 39.8 Million Tons
• Stone 32.4 Million Tons
• In 2008, it is estimated that shippers forfeited
  10,or 12-13 million tons of the above listed
  commodities.
• Over 100 ports are served on the U.S.
  andCanadian sides of the Lakes
• 65 U.S.-Flag vessels transported dry-bulk
  products. Canadian Flag Vessels numbered around
  60.

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Great Lakes Dredging Crisis Impact on Industry

• Higher water levels are expected in 2009.
  Thismitigates a small percentage of the
  problem,but comes nowhere near solving it.
  Theincreased water levels are measured in
  inches,while the vessels are losing feet of
  draft
• The Harbor Maintenance Trust Fund collects 1.1
  Billion per year. Only 700 million is spent on
  dredging. The balance is used to paper balance
  the budget

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Why is Great Lakes Shipping Important to North
American Economies?

• Corps of Engineers recently determined that GL
  shipping annually saves its customers 3.6
  billion per year in transportation costs vs.
  land-based modes
• Potential savings much greater if the Lakes were
  dredged to project dimensions
• America is not fully utilizing this great asset
• Today, the importance of the efficiencies of
  Great Lakes commerce is even greater given the
  struggling economy
• Lakes shipping is also the most
  environmentally-friendlymode of transportation
• Ships use less fuel and produce lower emissions
  than trains and trucks
• Important to Carmeuse, and in line with our
  efforts tofind cleaner ways to run the business
  (currently usingbio-diesel in much of our mobile
  equipment, as well as several different
  alternative fuels to replace coal in our kilns)

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How can we protect and fully utilize the Great
Lakes to the benefit of North American economies?

• Increased Congressional Appropriations We need
  approximately 200 million to clear backlog
• Ensure Harbor Maintenance Trust Fund is used for
  its intended purpose
• Dredging of deep-draft ports and waterways
• Fund collects 1.1 billion annually,while only
  spending 700 million
• Leaves a current surplus of nearly 5 billion
• Time to put the TRUST back in the Trust Fund

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Great Lakes Shipping A Vital North American
Asset

• Again We implore Congress to use the Harbor
  Maintenance Trust Fund for its intended purpose
  fund dredging on the Lakes
• Thank you