CLIMATE CHANGE AND POTENTIAL IMPACTS ON GREAT LAKES WATER LEVELS WHAT CAN WE DO? Chicago, Illinois March 30, 2001 Presentation By: Wayne A. Smith Vice-President & General Manager SEAWAY MARINE TRANSPORT

WHO ARE WE AND WHY ARE WE HERE? Largest fleet operating on Great Lakes/ St. Lawrence Waterway (43 vessels). Over 1 million tonnes single voyage cargo capacity Over 45 million tonnes cargo carried in 2000 –27% coal –26% iron ore –21% aggregate –9% grain –9% salt –8% other

WHERE DO WE OPERATE?

GREAT LAKES/ ST. LAWRENCE WATERWAY - PROFILE

REGULATION OF GREAT LAKES/ ST. LAWRENCE WATER LEVELS Boundary Waters Treaty of 1909 International Joint Commission –International Boards of Control Superior Niagara St. Lawrence River Lake Ontario Regulation Plan –Maintain adequate water flows for Hydro power production sufficient depths and acceptable current velocity for navigation protection of shoreline from flooding

LAKE ONTARIO REGULATION PLAN 1958-D Designed using Water Supplies for Lake Ontario Specifies weekly outflows based on Lake Ontario levels, trends in water supplies and conditions in St. Lawrence River Flow specified by regulation plan is released unless: –Board directs specific regulation strategy –dictated by ice conditions in St. Lawrence River –changes needed to reduce flooding (e.g. Ottawa R freshnet) –emergencies, for example ship grounding

WHAT'S NEW REGARDING LAKE ONTARIO AND ST. LAWRENCE RIVER WATER LEVEL REGULATION Studies are presently underway to assess the feasibility of deepening vessel operating drafts in the St. Lawrence Seaway from 26'3" to 26'6" Canada and the United States have agreed to initial funding of a proposed $20 million, five-year study by the IOC to review the regulation of Lake Ontario and St. Lawrence River levels and flows

DEEPENING THE ST. LAWRENCE SEAWAY On-the-fly vessel squat measurement study The field data was collected for 33 ship transits between St. Lambert lock and Lower Beauharnois lock, and 4 ship transits were tested between Upper Beauharnois Lock and Iroquois Lock to validate the model developed for the lower area to the upper area. Actual vessel squat measurement testing was completed November 14, Based on field testing, vessels operating is expected, therefore no increases can be made to operating drafts until the final model is completed.

REVIEW OF LAKE ONTARIO AND ST. LAWRENCE RIVER LEVELS AND FLOWS First comprehensive assessment of water levels and flows regulation of Lake Ontario - St. Lawrence River system in nearly 50 years. Objectives include a review of concerns about the present system of regulation of Lake Ontario outflows, environmental concerns and climate change issues.

WHY IS IT IMPORTANT TO PROTECT MARINE TRANSPORTATION SYSTEM? Studies have shown that marine transportation is the most environmentally friendly and safest of all transportation modes ( Great Lakes Commission) Later studies continue to show the environmental advantages of marine transportation

THERE IS AVAILABLE LOW COST MARINE INFRASTRUCTURE In the late 1970's about 65% more cargo was shipped through the St. Lawrence Seaway The Canadian bulker fleet, used primarily to carry grain and iron ore, has a summer utilization rate of close to 50%

WE NEED GOVERNMENTS TO DIRECT COMPREHENSIVE POLICY INITIATIVES THAT RECOGNIZE THE VALUE OF MARINE TRANSPORTATION There continue to be gains made by rail and truck moving cargoes off the Great Lakes and St. Lawrence River, despite the higher cost of infrastructure, safety and pollution Government's must address this situation to ensure there is a level playing field between modes and through policies which recognize the advantages of marine transportation over other modes, and support the greater use of the marine transportation system The Association of Great Lakes and St. Lawrence Mayors have endorsed this plan and have called on governments to help support a healthy marine transportation industry