Great Lakes coal shipments fall 8.2% in 2012

Washington (Platts)--9Jan2013/1221 pm EST/1721 GMT

Coal shipments on the Great Lakes in 2012 fell to 25,347,709 short tons compared with 27,616,116 st in 2011, an 8.2% decline, according to figures released Wednesday by the Cleveland-based Lake Carriers' Association.

The 2012 total was the least amount shipped in the last six years, and 36.3% off the peak 39,790,490 st shipped in 2008.

The association does not comment on its figures, but did cite falling water levels and a lack of adequate dredging as a growing hindrance to lake shipping.

Citing estimates from the Army Corps of Engineers, the association said 17 million cubic yards of sediment must be removed from ports and waterways on the lakes before vessels will again be able to carry full loads.

The largest coal terminal on the lake, Superior Midwest Energy Terminal, in Superior, Wisconsin, shipped 14,258,905 st in 2012, down 0.2% from 14,285,053 st shipped in 2011.

The terminal, which lost Ontario Power as a major customer due to the utility's decision to shutter its coal-fired power plants, recently began a three-year contract to ship Powder River Basin coal to Europe.

The terminal at Thunder Bay, Ontario, owned by Thunder Bay Terminals Ltd., shipped 836,416 st in 2012 compared with 913,099 st in 2011, an 8.4% decline. The terminal handles thermal coal as well as met coal for domestic and international use, according to its website.

Terminals in Chicago, including the KCBX Terminal and DTE Coal Services, shipped 3,243,434 st in 2012 compared with 3,795,445 in 2011, a 14.5% decline.

The Sandusky, Ohio, terminal owned by Norfolk Southern shipped 3,032,083 st in 2012 compared with 2,942,869 st in 2011, a 3% increase. The terminal primarily ships domestic thermal coal, but also met coal destined for Canada, according to the railroad.

The terminal at Ashtabula, Ohio, also owned by Norfolk Southern, shipped 1,662,189 st in 2012 compared with 2,082,986 st in 2011, a 20% decline. The terminal ships domestic thermal coal.

The Toledo, Ohio terminal, owned by CSX, shipped 2,314,682 st in 2012 compared with 3,596,664 st in 2011, a 35.6% decline. The terminal also handles domestic thermal coal.

--Andrew Moore, andrew_moore@platts.com
--Edited by Katharine Fraser, katharine_fraser@platts.com