Seaway system in 2022 provided some stability amid global supply chain woes

Jan. 31—More than 36 million tons of cargo transited the Great Lakes-St. Lawrence Seaway system last year, with much of that tonnage an example of the critical role the system plays in the shifting global supply chain.

"Seaway traffic results show positive trends amongst certain commodities, which demonstrates our system's ability to quickly adapt to changes in the market," Terence F. Bowles, president and CEO of the St. Lawrence Seaway Management Corp., said in a news release. "It's this agility that enables the Seaway to respond to changes and act on emerging opportunities, such as shifting trade patterns resulting from global events."

The 36 million ton figure for 2022 compares to 37.7 million tons shipped on the system in 2021. The primary driver for lower tonnage is traced to lower grain exports. In 2021, Canadian grain harvests fell dramatically, driven by hotter and drier conditions which resulted in lower production. The 2022 harvest was a significant improvement.

Potash, used for fertilizer, recorded some jaw-dropping numbers on the system in 2002. The Seaway moved 514,000 tons of potash in 2021 compared to 1,046,000 tons in 2022, a nearly 104% increase.

Other highlights for 2022 in data released jointly by the management corporation and the U.S. Great Lakes St. Lawrence Seaway Development Corp. include:

—Petroleum products were up nearly 28% over last year, due to increased passenger travel.

—U.S. grain exports increased, and although month-over-month Canadian grain performed well, it did not match last year's results. The effects of the 2021 drought in the Canadian prairies impacted export movements at the beginning of the 2022 season. However, the improved 2022 grain harvest is expected to result in a strong start for 2023.

—An increase of vessel transits, including expanded cruise ship activity in the Great Lakes, helped contribute to tourism and economic development in the U.S. and Canada.

—Dry bulk commodities, including coke, salt and potash, contributed over 11 million tons of the 2022 total.

"Through decades of investment and reliability, the Great Lakes are uniquely positioned to weather upheavals in the global supply chain," said Adam Tindall-Schlicht, administrator of the Great Lakes St. Lawrence Seaway Development Corp. "The Seaway System is a leading example of a worldwide economically-resilient and environmentally-sustainable shipping corridor, and optimism is high for expansion of trade on the Great Lakes in 2023."

The last commercial transit of the 2022 navigation season through the Montreal-Lake Ontario section of the Seaway occurred on Jan. 1. As for the Welland Canal, connecting Lake Ontario and Lake Erie, it closed on Jan. 9, marking the conclusion of the fourth year of the Welland Canal season extension pilot program.

area ports of call

The Port of Ogdensburg recorded a slightly above-average year in activity for 2022, according to Ogdensburg Bridge and Port Authority executive director Steven J. Lawrence.

The port's activity included the arrival of five vessels dropping off road salt and six vessels unloading windmill components.

"It was a little above average because there were two different projects," Mr. Lawrence said. "Normally, we usually get one large one and a couple of things, but these were two pretty substantial projects. It required a lot of storage area."

The port's storage area is scheduled to receive a boost.

In April, the OBPA board passed a resolution acknowledging that financial difficulties are preventing it from moving forward on a $29.5 million harbor deepening project that was initially estimated at $11.4 million. The focus now, Mr. Lawrence said, is a state-funded dock extension project. The port's current dock is 1,200 feet. An extension of 550 feet is planned.

"It would give us more storage area and allow us to move salt farther westward as it relates to the current dock," Mr. Lawrence said. He anticipates bidding for the project will happen later this year, with the project completed sometime next year.

The road salt dropped off and stored at the port is resourced in Canada. "But they're U.S. companies, with operations in Canada," Mr. Lawrence said. "As the orders come in, we handle that through the salt companies. We load out to a lot of municipalities, some up in the Adirondacks, and mostly in Northern New York. We do have one product, a blended salt, and more environmentally friendly for areas up in the Adirondacks."

record year in oswego

The Port of Oswego recorded a record year in 2022. Port executive director William W. Scriber said that shipping alone was up over 300% compared to 2021.

"Our performance in 2022 firmly establishes us as a Great Lakes commerce force and a gateway to the world," Mr. Scriber said.

He added that Oswego is also gateway from Lake Ontario to the New York State Canal system with the first marine entrance at Oswego's Lock 8.

Port of Oswego officials noted that in 2022, a historic agreement was signed between the port and the U.S. Army Corps of Engineers to deepen the port's harbor, expand its capabilities to ignite new growth and be accessible to Seawaymax container ships — the largest traveling the Great Lakes. The project may also help Oswego to attract cruise ships.

"Seawaymax" refers to vessels which are the maximum size that can fit through the canal locks of the St. Lawrence Seaway.

The port also secured funding for a $754,000 reach stacker that expands its capability to enter national containerized cargo movement with lower cost, and as a more environmentally sustainable alternative to trucking, Mr. Scriber said.

"Oswego's history is maritime and boating. A key focus for our board is always bringing commerce and jobs to Oswego," Francis Enwright, chairman of the Port of Oswego Authority board, said in a news release. "The economic numbers from the past year bear this out and tell a remarkable success story of how we've transformed the port into an international grain export center, a wind turbine component import hub, a vital aluminum receiver for Novelis, and a major innovator in Great Lakes shipping. This positions us a key player in economic development this year with the advent of new potential customers like Micron."

In October, Micron officials announced they reached a deal to build a $100 billion computer chip manufacturing facility in Clay, just outside the city of Syracuse.

The Port of Oswego, Mr. Scriber said, is self-sustaining.

"We receive no state budget and no local tax revenue," he said. "We operate as a business and that means we contribute to the local economy. We own all our own equipment, from forklifts to cranes, and we have the added cost of a marketing budget to generate business. We also support our own infrastructure needs, from roofs, to rails, to computer software, and we have specific labor agreements/contracts and hire our own labor."

He said the port's $15 million Regional Agricultural Export Center expansion project — the largest in the Port's history — provides Central New York access to the world.

The facility can store up to 22,000 metric tons, and officially opened a state-of-the-art, U.S. Department of Agriculture grain testing lab in May 2022.

"It's the only such lab in all of upstate New York," Mr. Scriber said. "It's part of a sustainable revenue model for the port to spur future additional commercial and job growth."

Port of Oswego officials said that in 2022, the port was the first to ship grain out of the St. Lawrence Seaway and is New York's only grain exporter by water on Lake Ontario. Grain shipments went to the Middle East and Europe and helped offset the disruption in the global supply chain by the war in Ukraine, Mr. Scriber said, and added that more than 100 local farmers use the port for export at a reduced shipping cost when compared to trucking to ports like Baltimore of Cincinnati.

The port handled more than 300 wind turbine tower sections, blades, and other components in 2022. Aluminum is another major import that supplies the Novelis plant in Oswego, Mr. Scriber said.

"We're the second largest importer of prime aluminum on the Great Lakes," he said. "In 2022, we received multiple shipments of aluminum slabs. Each slab weighs more than 26 tons and we handled close to 500 of them."

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