Great Lakes in dredging crisis, says iron ore executive

Great Lakes in dredging crisis, says iron ore executive    A 'dredging crisis' that prevents ships plying the Great Lakes from loading to full capacity is directly impacting North America's largest iron ore producer's ability to efficiently meet its customers' requirements, said the president of Cleveland-Cliffs.
   'Although U.S.-flag vessel operators on the lakes have ships that can carry 70,000 tons of iron ore or more each trip, full loads are a distant memory,' said Joseph A. Carrabba, president and chief executive officer of Cleveland-Cliffs, in a lunchtime address to the Great Lakes Maritime Task Force Wednesday. He pointed to recent loadings of ships in Superior, Wis., last month where one ship could only load to 83 percent of capacity and another to 87 percent.
   In Huron, Ohio, where some cargo is delivered, 'the channel is so clogged that the first cargo of 2007 represented only 77 percent of the vessel's rated capacity,' he said. 'With water levels plunging on some of the lakes this year, the problems will become even more acute.'
   Cleveland-Cliffs, he noted, has not operated vessels since 1984, but, 'our fortunes hinge on the continued efficiency of Great Lakes shipping.' Ninety-six percent of the pellets it produced last year moved in Great Lakes vessels.
   'Few of our steel mill customers have the ability to receive iron ore by train, and even if the railroads had enough rolling stock, the delivered cost would be significantly higher,' he observed.
   He said the Bush administration must commit itself to restoring the Great Lakes navigation system to 'project dimensions,' which he said would cost an estimated $200 million.
   Noting that there is a $3.3 billion surplus in the Harbor Maintenance Trust Fund, he said, 'this is not a case of lack of funds. It's a lack of understanding the vital role Great Lakes shipping plays in our nation's economy, and a flawed system for allocating those monies that are released from the Harbor Maintenance Trust Fund.'