The Great Lakes & St. Lawrence Seaway System - Amazon Web ...
The Great Lakes & St. Lawrence Seaway System A User’s Perspective
Corus - US Gov. & Reg. Affairs Stephen Wilkes October 1, 2009 1
Background information Corus Group / Tata Steel • Corus Group became an operating business of Tata Steel on April 2, 2007 • The Tata Steel group, including Corus, is the world’s 5th-largest steel company by volume • Annual steel production: abt. 25 million metric tonnes
2
Background information Corus Group • Large production sites in the Netherlands and United Kingdom • Specialized sites in Belgium, Canada, France Germany & U.S.A. • Annual steel production: 18 million metric tons • Almost 40,000 employees in more than 40 countries • Corus Group is a leading supplier to many of the most demanding markets: construction, engineering, automotive, packaging, yellow goods and white goods 3
Background information Corus IJmuiden, The Netherlands • Surface: 1854 acres • Abt. 9,000 employees • Inbound: 14 mill metric tons raw materials: iron ore and coal • Outbound: 7 million mt steel products • Its own deep water harbors and inland waterway harbors 4
Outbound volumes 2006 Corus IJmuiden 9
225
Outbound 2006
184
Total: 7.6 million mt Volumes in metric kton
7
116 1638
245
E.Eu
1588
N.America
876
rope
90
671 590 441 convent. 155 contain.
7
174 216
249 64 Greece & Turkey
113 5
Volumes to Great Lakes Corus IJmuiden Volumes to Great Lakes 900,000 800,000 700,000
Tonnage
600,000 500,000 400,000 300,000 200,000 100,000 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Year
6
Volumes to Great Lakes by port Corus IJmuiden Volumes in ‘000 metric tons (1991-2006)
Milwaukee 755 Hamilton Ont. 850 Detroit Chicago
Burns Harbor
840
3.300
70 Cleveland 5.100
7
Volumes to Great Lakes by port Corus IJmuiden Volumes to North-America by port (1991-2008) 6,000,000 5,000,000
Tonnage
4,000,000 3,000,000 2,000,000 1,000,000 0 Cleveland
Burns Harbor
Milwaukee
Detroit Port
Chicago
Hamilton,Ont.
8
Volumes to Great Lakes by port Corus IJmuiden & UK Volumes to North-America (1991-2007) 450,000 400,000 350,000
250,000
UK
200,000
IJmuiden
150,000 100,000 50,000
l re a on t
am
M
C
il t on ,O nt .
hi ca
go
oi t et r D
il w au ke e M
ar bo r H ur ns
H
B
le ve la nd
0
C
Tonnage
300,000
Port
9
Principal Logistic Service Provider: Shipowners Polsteam, Poland • The biggest dry bulk shipowner and ships’ operator in Europe • One of the ten biggest shipowners in the world • 75 vessels totalling about 2.1 million dwt • New building investment program until 2015 of 34 bulk carriers, including handy-size and panamax vessels
10
Great Lakes St. Lawrence Seaway Advantages Direct access to US & Canadian Midwest customers • Inland transport readily available • Excellent port & stevedoring performances in Great Lakes • Transport quality paramount importance • Long established partnership with carriers, stevedores, terminals, ports, Seaway authorities and US & Canadian Coastguard • Confidence in route by customers 11
Great Lakes St. Lawrence Seaway Challenges - 1 Challenge: •
Shipping season: mid-March to mid-December → during winter Corus has to deliver via US East coast (100 – 200 thous tons) and get to midwest customers by rail / truck
Negative consequences: – Much longer lead times to customers – Greater pressure on demand forecasting – Need spike in production prior to close of navigation – Additional transport costs – Inventory carrying costs – Increased handling damage – Poor delivery performance (capacity problems with railroads & trucks)
12
Great Lakes St Lawrence Seaway Challenges - 2 • Regulatory – Aquatic Invasive Species & Ballast Water regulation • Regulatory – Emission controls & Low sulfur bunkering • Safety & Security - Adequate funding of US Coastguard hardware and operations • Infrastructure – Harbor maintenance funding • Infrastructure – Dredging (continued long-term health of the system depends on robust freshwater and salty traffic) • Governmental/QANGO – Cleveland Port relocation – Asset maintenance (Seaway)
13
Opportunities • Maximize use of environmentally friendly maritime routes Short-sea shipping? Ro-ro? Container traffic? • Optimize intermodal interface → better performance to customers • Ramp up US export performance 14
The information contained herein is confidential and must not be used or disclosed by anyone without the express permission of Corus. Neither Tata Steel Europe Limited nor any of its subsidiaries can accept any responsibility for any use or misuse of the information by anyone. No warranty, representation, statement or undertaking is given regarding such information as to its accuracy or other attributes, nor is any implied by statute, custom or otherwise. Nothing contained herein shall be deemed to be either any advice of a financial nature to act or not to act in any way whatsoever or any invitation to invest or deal in any form of investment, including stocks, bonds, ADRs or securities. Copyright on all images is owned by Tata Steel Europe Limited or others and used under license.
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Corus - US Gov. & Reg. Affairs Stephen Wilkes October 1, 2009 1
Background information Corus Group / Tata Steel • Corus Group became an operating business of Tata Steel on April 2, 2007 • The Tata Steel group, including Corus, is the world’s 5th-largest steel company by volume • Annual steel production: abt. 25 million metric tonnes
2
Background information Corus Group • Large production sites in the Netherlands and United Kingdom • Specialized sites in Belgium, Canada, France Germany & U.S.A. • Annual steel production: 18 million metric tons • Almost 40,000 employees in more than 40 countries • Corus Group is a leading supplier to many of the most demanding markets: construction, engineering, automotive, packaging, yellow goods and white goods 3
Background information Corus IJmuiden, The Netherlands • Surface: 1854 acres • Abt. 9,000 employees • Inbound: 14 mill metric tons raw materials: iron ore and coal • Outbound: 7 million mt steel products • Its own deep water harbors and inland waterway harbors 4
Outbound volumes 2006 Corus IJmuiden 9
225
Outbound 2006
184
Total: 7.6 million mt Volumes in metric kton
7
116 1638
245
E.Eu
1588
N.America
876
rope
90
671 590 441 convent. 155 contain.
7
174 216
249 64 Greece & Turkey
113 5
Volumes to Great Lakes Corus IJmuiden Volumes to Great Lakes 900,000 800,000 700,000
Tonnage
600,000 500,000 400,000 300,000 200,000 100,000 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Year
6
Volumes to Great Lakes by port Corus IJmuiden Volumes in ‘000 metric tons (1991-2006)
Milwaukee 755 Hamilton Ont. 850 Detroit Chicago
Burns Harbor
840
3.300
70 Cleveland 5.100
7
Volumes to Great Lakes by port Corus IJmuiden Volumes to North-America by port (1991-2008) 6,000,000 5,000,000
Tonnage
4,000,000 3,000,000 2,000,000 1,000,000 0 Cleveland
Burns Harbor
Milwaukee
Detroit Port
Chicago
Hamilton,Ont.
8
Volumes to Great Lakes by port Corus IJmuiden & UK Volumes to North-America (1991-2007) 450,000 400,000 350,000
250,000
UK
200,000
IJmuiden
150,000 100,000 50,000
l re a on t
am
M
C
il t on ,O nt .
hi ca
go
oi t et r D
il w au ke e M
ar bo r H ur ns
H
B
le ve la nd
0
C
Tonnage
300,000
Port
9
Principal Logistic Service Provider: Shipowners Polsteam, Poland • The biggest dry bulk shipowner and ships’ operator in Europe • One of the ten biggest shipowners in the world • 75 vessels totalling about 2.1 million dwt • New building investment program until 2015 of 34 bulk carriers, including handy-size and panamax vessels
10
Great Lakes St. Lawrence Seaway Advantages Direct access to US & Canadian Midwest customers • Inland transport readily available • Excellent port & stevedoring performances in Great Lakes • Transport quality paramount importance • Long established partnership with carriers, stevedores, terminals, ports, Seaway authorities and US & Canadian Coastguard • Confidence in route by customers 11
Great Lakes St. Lawrence Seaway Challenges - 1 Challenge: •
Shipping season: mid-March to mid-December → during winter Corus has to deliver via US East coast (100 – 200 thous tons) and get to midwest customers by rail / truck
Negative consequences: – Much longer lead times to customers – Greater pressure on demand forecasting – Need spike in production prior to close of navigation – Additional transport costs – Inventory carrying costs – Increased handling damage – Poor delivery performance (capacity problems with railroads & trucks)
12
Great Lakes St Lawrence Seaway Challenges - 2 • Regulatory – Aquatic Invasive Species & Ballast Water regulation • Regulatory – Emission controls & Low sulfur bunkering • Safety & Security - Adequate funding of US Coastguard hardware and operations • Infrastructure – Harbor maintenance funding • Infrastructure – Dredging (continued long-term health of the system depends on robust freshwater and salty traffic) • Governmental/QANGO – Cleveland Port relocation – Asset maintenance (Seaway)
13
Opportunities • Maximize use of environmentally friendly maritime routes Short-sea shipping? Ro-ro? Container traffic? • Optimize intermodal interface → better performance to customers • Ramp up US export performance 14
The information contained herein is confidential and must not be used or disclosed by anyone without the express permission of Corus. Neither Tata Steel Europe Limited nor any of its subsidiaries can accept any responsibility for any use or misuse of the information by anyone. No warranty, representation, statement or undertaking is given regarding such information as to its accuracy or other attributes, nor is any implied by statute, custom or otherwise. Nothing contained herein shall be deemed to be either any advice of a financial nature to act or not to act in any way whatsoever or any invitation to invest or deal in any form of investment, including stocks, bonds, ADRs or securities. Copyright on all images is owned by Tata Steel Europe Limited or others and used under license.
15
