Direct, regularly scheduled cargo service between Cleveland and Europe is expected to swell exports, boost the Cleveland economy and create jobs.
CLEVELAND, Ohio -- Cleveland business leaders are applauding plans by the Port of Cleveland to launch direct, regularly scheduled cargo shipping between Cleveland and northern Europe, the first such service available on the Great Lakes.
Many predicted an increase in Ohio exports and a boost to the regional economy when the Cleveland-Europe Express begins with the spring opening of the Saint Lawrence Seaway.
At a press conference Wednesday, port officials shared details of a plan that includes a partnership with the Netherlands-based Spliethoff Group, one of the largest shippers in Europe. Spliethoff will provide the ships and crew for a monthly or biweekly steam from Cleveland to a port city like Rotterdam.
The so-called liner service will allow Ohio manufacturers to skip crowded East Coast ports and instead export direct from Cleveland, avoiding truck and rail costs and shaving three to four days off the voyage, port officials say.
Business and industry leaders have been asking for such an option for years.
"It's cheaper, it's faster, it's greener and it's competitive," Joe Roman, president of the Greater Cleveland Partnership, told a conference room full of business and civic leaders at the Aloft hotel on the East Bank of the Flats.
Directing people's attention out the windows toward a shimmering blue lake, Roman said, "It's connected to every place our manufacturers want to sell their goods."
Ralph Skrobacs, the director of logistics for Tremco, a subsidiary of RPM International, told The Plain Dealer he expects his company to be one of the first to come aboard. Cleveland-based Tremco manufactures sealants, paints and roofing products that it ships all over the world, typically via New York, Baltimore and Montreal, he said.
"There's a lot delays at those ports. Montreal is expensive," he said. "To be able to ship direct, for us, is a huge savings. As long as it's reliable."
The Port of Cleveland occasionally offers what's called "spot shipping" of products, offering space on transatlantic ships as it becomes available. But that's not something a company can plan on.
Regularly scheduled cargo service disappeared from the Great Lakes 40 years ago, with the emergence of container shipping on huge ocean freighters. Great Lakes ports handle primarily steel and bulk cargo, like grain and iron ore.
Transatlantic shippers have avoided introducing container service -- which allows a wider array of goods to be shipped--because of the expense and the challenges of Great Lakes shipping. Those include narrow locks, tolls and a seaway that closes for winter.
Will Friedman, president of the Port of Cleveland, said he and his staff designed a plan that enticed a private shipper to give it a go.
The port authority will charter the Dutch ships and handle loading and unloading of cargo at a cost estimated at $500,000 to $1 million a month, he said. By charging importers and exporters, the port expects to break even after two or three months and then turn a profit.
"We see this as a revenue generator," Friedman said.
The port expects to handle up to 400,000 tons of additional cargo a year, which could double its current cargo volume and create more than 100 jobs.
Bart Peters, manager of the Spliethoff Group's America Service, said in a statement his company already owns freighters that fit the Seaway and sees an opportunity to reach "America's industrial heartland" via Cleveland.
The proposed agreement allows the port to opt out of the venture with 30 to 60 days notice, said Chris Ronayne, the vice chairman of the port's board of directors. He sees a good risk.
"We're a public agency making a calculated assessment," Ronayne said. "This is opening a door in Cleveland to the world."
The board was briefed on the plan Wednesday morning. Friedman said he expects to come back to the board with a final contract for it to authorize in about 30 days, in time to start signing up customers for spring.
The sober backdrop to the celebratory news was the coming November election. The Port Authority is asking voters to renew a five-year, 0.13-mill tax levy that provides about 35 percent of its budget. The tax, which costs the owner of a $200,000 home about $7 a year, is the smallest of the countywide tax issues but is appearing on a crowded ballot.
Marc Krantz, the chairman of the port board, said the new service is not dependent on the levy passing but that other plans might be.
"If we're going to look to expansion, we need these key dollars," he said.
Cleveland Mayor Frank Jackson, speaking before the press conference, said the Cleveland-Europe Express should lend momentum to the levy campaign.
"It proves the port is important," Jackson said. "It supports our economy. It helps us to be competitive in the world."