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

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. Great Lakes Shipping – A Vital North American Asset. Carmeuse Lime & Stone - Operations

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

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  1. 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

  2. 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) • R&D Technology Center (Neville Island, PA)

  3. 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

  4. 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

  5. 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)

  6. Great Lakes Shipping – A Vital North American Asset • Specific Carmeuse examples of lost tonnage due to draft:

  7. 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

  8. GreatLakes 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.

  9. 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

  10. 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)

  11. 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

  12. 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

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