Saint Lawrence Seaway Development Corporation

1. Saint Lawrence Seaway Development Corporation Seaway “101” Briefing September 2016

2. What is the SLSDC? Created by Congress in 1954 as the U.S. federal agency responsible for the operations and maintenance of the U.S. portion of the St. Lawrence Seaway between Montreal and Lake Erie. Mission is to serve the marine transportation industry by providing a safe, secure, reliable, and competitive deep draft international waterway, in cooperation with the Canadian St. Lawrence Seaway Management Corporation (SLSMC). The SLSDC is permanently authorized by the Wiley-Dondero Act of May 13, 1954 (33 U.S.C. 981), as amended. 1

3. SLSDC Primary Responsibilities U.S. lock operations and maintenance Vessel traffic control Vessel safety and environmental inspections Trade promotion and economic development Capital infrastructure renewal 2

4. The SLSDC: A Model of Efficiency Benefiting customers through organizational excellence 3

5. A Model of International Partnership President Eisenhower and HRH Queen Elizabeth II open the Seaway on June 26, 1959 4

6. Binational Operations with the SLSMC • A seamless waterway system • Jointly-issued “Seaway Regulations” • Single foreign-flag vessel inspection program in Montreal, Quebec • Binational trade and economic development initiatives • Fully integrated - U.S./Canadian Vessel Traffic Control system 5

7. A Connection between theAtlantic Ocean and the Great Lakes Lake Superior Gulf ofSt. Lawrence Lake Huron Lake Ontario Lake Michigan Lake Erie North Atlantic A vessel transiting the Seaway crosses the international border 27 times between Montreal and Lake Erie 6

8. What is the Great Lakes Region TODAY? • Great Lakes Seaway System is 2,342 miles long and borders two countries, eight U.S. states, and two Canadian provinces. • Home to one-quarter of North America’s population. • Produces 70 percent of total U.S. steel production. • Headquarters for one-half of the Fortune 500 industrial companies. 7

9. The Great Lakes Regional Economy • $5.8 trillion in annual economic output • 30% of U.S.-Canada economic activity • Seaway System maritime commerce sustains 227,000 jobs, $35 billion in business revenue, $14 billion in personal income 8

10. An Engineering Marvel Eisenhower Lock – October 1956 9

11. St. Lawrence Seaway Locks • There are 15 Seaway locks (2 U.S. locks located in Massena, N.Y.). • Maximum allowable vessel size is 740 feet long and 78 feet wide. • Each lockage empties or fills 22 million gallons of water and takes approximately 10 minutes to raise or lower a vessel. 10

12. Primary SLSDC Infrastructure Seaway Locks Eisenhower Lock Tunnel Seaway International Bridge 11

13. Asset Renewal Program • The SLSDC ARP program was launched in FY 2009 to renew the SLSDC’s infrastructure. • ARP projects and equipment address various needs for the two U.S. locks, the Seaway International Bridge, maintenance dredging, operational systems, and Corporation facilities and equipment. • In the first seven years of the ARP (FYs 2009-2015), the SLSDC obligated $109 million on 48 separate projects. 12

14. Environmental Gatekeeper 13

15. Seaway Ballast Water Regulations • The Seaway Inspection Program is unique: • Ballast Water Exchange and Salt-Water Flushing required for all oceangoing vessels • 100% of ballast tanks are targeted for inspection • Effectiveness of program confirmed by scientific analysis • Gray et al. 2007: Efficacy of open-ocean ballast water exchange as a means of preventing invertebrate invasions between freshwater ports • Bailey et al. 2011: Evaluating Efficacy of an Environmental Policy to Prevent Biological Invasions 14

16. Great Lakes / Seaway Ballast Water Efforts • New report highlights the continued effectiveness of the current Great Lakes Seaway System ballast water management regime during the 2015 season. • In 2015, 100% of vessels bound for the Great Lakes Seaway from outside the Exclusive Economic Zone (EEZ) received ballast management exams on each Seaway transit. In total, all 8,361 ballast tanks were assessed during the 455 vessel transits. • The effectiveness of the Seaway’s ballast water inspection program has been publicly credited as a key factor in preventing the discovery of establishment of any new species in the Great Lakes since 2006 – the longest such period of non-detection on record. (Source: NOAA Great Lakes Aquatic Nuisance Species Information System) 15

17. Benefits of Great Lakes/SeawayCommercial Shipping • Commercial shipping on the Great Lakes Seaway System provide approximately $4 billion in annual transportation cost savings compared to the next least expensive mode of transportation. • The Great Lakes/Seaway fleet is nearly 7 times more fuel-efficient than trucks and 1.14 times more fuel-efficient than rail. Moreover, it would take 3 million railcars or 7.1 million trucks to carry the total cargo transported by the Great Lakes/Seaway fleet. 16

18. FY 2018 “Current Services” Budget Request • SLSDC funding is derived from an annual appropriation from the Harbor Maintenance Trust Fund (HMTF). • FY 2018 “CURRENT SERVICES” BUDGET REQUEST- $29.23 million • ● $18.88 million for Agency Operations • ● $10.35 million for Asset Renewal Program (ARP) 17

19. SLSDC Historic Funding Levels 18