The Great LakesSt' Lawrence Marine Highway

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The Great Lakes/St. Lawrence Marine
Highway Fitting the Pieces Together October 1,
2009 Paradigm Shifting New Thinking/New
Technologies
James H. Hartung, Partner Exec
V.P. Chairman of the Board
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Seasnake World-Wide Marketing LLC The Marketing
Affiliate for Seasnake LLC, which holds majority
ownership, rights and proprietary patents for the
Seasnake design and associated technologies.
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SEASNAKEAhead of the CurveGreen by Design

• To create new building and operating cost
  efficiencies
• To further enhance environmental advantages of
  maritime transport
• To expand cargo carrying diversity

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Cargo Carrying Capabilities

• Liquid Bulk
• Dry Bulk
• Break Bulk
• Containers
• RO/RO (Currently in RD phase)

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Applications for

• Commercial Shipping
• Military
• FEMA
• Homeland Security

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SEASNAKE

• Vessel Configuration
• Consists of a Traction Unit, a series of
  cargo-modules and a caboose that are linked in an
  articulated arrangement that allow each unit to
  move independently thus dramatically reducing
  hull stress. Seasnake design and operating
  characteristics are more comparable to that of a
  train than any maritime transport system
  currently in use.

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SEASNAKE

• Originally designed as a tanker
• Initial review by naval architects and continued
  research and development concluded that design
  variation and function applications were almost
  unlimited
• Great Lakes design and operating concepts were
  developed by Seasnake World-Wide Marketing, LLC
  in cooperation with Seasnake, LLC

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Video Presentation
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SeasnakeA contributing factor to revitalize
maritime shipping on the Great Lakes to

• Restore Viability
• Expand economic impacts
• Protect Great Lakes Eco-Systems

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When President Eisenhower and Queen Elizabeth II
sailed into the Lakes on the Royal Yacht
Britannia in 1959, expectations of the economic
impact were extraordinary for United States and
Canadian Great Lakes coastal cities.
Circumstantial evidence of

• Time
• Location
• Economic Prosperity
• World Politics

Who could deny the excitement?
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St. Lawrence Seaway
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50 Years Later
The Seaway has fallen far short of
expectationexplosive growth did not occur.
Reasons? Numerous but any list would include

• Shift in world agricultural sourcing
• Deindustrialization of America
• Growth of world economic competition

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Systemic Issues/Challenges to Growth
SEASONALITY

• Nine month operating system inhibits Seaway
  growth
• Customers need uninterrupted reliability
• GL Trade routes only allow 75 operating time for
  a vessel

TOLLS Artificially imposed costs added to
total voyage cost

• There is always an additional cost no matter how
  competitive
• Originally viewed as an irritant by shippers and
  vessel operators, but when profit margins are
  compressed tolls have become increasingly
  impactful.
• U.S. tolls were eliminated in the 90s but
  continue in Canada

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CAPACITY SIZE LIMITATIONS

• System was built too small
• Seaway Maximum 730x78x263
• The enormous impact of the Container Revolution
  in the 70s brought about continual growth in
  ship size.
• The Seaway could not compete in a maritime market
  dominated by the practice of
• Stuffing cargo into boxes
• Stacking them into and onto humungous ships and
• Delivering them to select ports

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Invasive Species
Seasonality, tolls and size restrictions are
historic, but the greatest immediate danger is
invasive species. Species not indigenous to the
Great Lakes that have been introduced through the
discharge of ballast water from international
vessels that enter the system.
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YES
There are issues ---serious issues But, not
insurmountable.
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Shifting The ParadigmNew Thinking

• The future belongs to those who can see the
  opportunities before they become obvious
• John Scully, Former Apple CEO

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There is a necessity to reinvent how we view and
use the Seaway System.
There needs to be unified Industry commitment
that Will initiate Zero-Based Thinking No
Assumptions No Preconceived Notions.

• To clearly and candidly identify problems and
  limitations
• To craft potential solutions or adaptations
• To explore ALL options
• To seek new initiatives or
• Review old initiative that had been set aside
• Explore new technologies and new cargo
  opportunities
• To end the decline and restore the optimism of
  1959
• To develop and invest in a plan supported by a
  unified industry and political will (local, State
  and Federal) to sustain energy and work the plan

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Paradigm Shifting/New Technologies
Seasnake an important technology with strong
applications to Great Lakes Shipping but it is no
panacea and cannot replace the process Ive just
described. However, Seasnake will

• Enhance GL opportunities for Container Feeder
  Services/Short Sea Shipping
• Dramatically impact the issue of invasive
  species.

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Short Sea Shipping
Primary advantages of Short Sea Shipping

• Alleviation of congestion
• Decrease of air pollution
• Reduction of theft and damage to cargo
• Increased highway safety
• Overall reduction in transportation cost

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SEASNAKEIdeally suited for Great Lakes-Short Sea
Shipping

• Seasnake SS 26.5 specifically designed for Seaway
  Passage
• Cargo-modular design Seasnake-Train can carry
  vast diversity of cargo types to different ports
• Seasnake train can move through system delivering
  cargo-modules and picking up cargo modules
  without delays at port waiting for cargo to be
  unloaded or loaded.

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Seasnake - Green by Design

• Seasnakes modular cargo handling design
  dramatically reduces potential environmental
  impacts caused by accident, collision or acts of
  terrorism
• Seasnakes propulsion/hull design further
  improves the air emission reduction and fuel
  economy advantages of maritime shinning over
  other transportation modes.
• Seasnake has been designed as a Ballast-Free
  vessel thus eliminating the danger of invasive
  species being introduced into the eco-system of
  any venue in which Seasnake will operate.

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Ballast Free
Due to the low length height ratio of the
Seasnake units, trim control is of little
importance. The propellers in the traction unit
are placed centrally and sufficiently low to
prevent undesirable propeller emergence. By the
same token steering and bending stress in the
hull due to uneven loading is not an issue.
Carlos Kountz Wiernic
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SEASNAKE - A well conceived, researched vessel
design

• Invented by Carlos Kountz Wiernic, an
  international recognized industrial engineer
• Patented worldwide for its hull design and
  bumper and module connection systems
• Structural Design Analysis, Rosenblatt Son
• American Bureau of Shipping, Advanced Analysis
  and girder load stress
• Tank tested at University of Michigan for
  resistance and powering, course-keeping stability
  and Seaworthiness under unlimited ocean
  conditions
• C.R Cushing, naval architect, conducted an in
  depth feasibility analysis of the Seasnake concept

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Throughout my career Ive been both praised and
condemned for being a visionary and I am guilty
of that. But in response, for as long as I can
remember. Ive used a quote by Henry David
Thoreau Dont stop building your castles in
the air, thats where they belong, now build the
foundations beneath them.
James H. Hartung
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