John Sherwin

[Captain Crunch]

So as you can see, the EPA is shutting down coal plants and mines as fast as it can in the name of greenhouse gases, while on the other side of the planet they are burning it faster than we are and with no environmental regulation. No net gain "saving the planet."

I don't believe coal use will actually be reduced. I was reading an article from Bottom Line Vol.33 Number 7 April 1, 2012 titled Old-Fashioned Coal is the Hot New Investment. It confirmed that the US is reducing use but growing China gets 80% of its electricity from coal and India is 65% dependant. The US Department of Energy estimates world comsumption will increase by 50% by 2035. More importantly Total anual exports are expected to triple by 2014 to about 200 million tons. The article didn't say what date it was tripling from which seems to be an incomplete number.

Even though the current administration's EPA is heavily against domestic use the current polical trends may change that. Coal actually looks promising for a good future. We may even see some of the older seaway size boats out or more foreign loads.

[intermodalres]

The Sherwin's future is mostly tied to Severstal. If/when they rebuild "B" Furnace, they will need her tonnage to help feed two, brand new, high capacity furnaces. The 1000 footers would not be useable for this trade.

[Chet]

You may very well be right, but my point is that Interlake 1,000-footers might not be carrying that coal if American and Canadian power plants significantly reduce their use. Some of the Canadian plants already have stopped using coal and two American plants on Lake Superior are under pressure to switch fuels. Therefore Interlake could have a lot of tonnage available and may not need the Sherwin for a while.

[Guest]

I don't believe coal use will actually be reduced. I was reading an article from Bottom Line Vol.33 Number 7 April 1, 2012 titled Old-Fashioned Coal is the Hot New Investment. It confirmed that the US is reducing use but growing China gets 80% of its electricity from coal and India is 65% dependant. The US Department of Energy estimates world comsumption will increase by 50% by 2035. More importantly Total anual exports are expected to triple by 2014 to about 200 million tons. The article didn't say what date it was tripling from which seems to be an incomplete number.

Even though the current administration's EPA is heavily against domestic use the current polical trends may change that. Coal actually looks promising for a good future. We may even see some of the older seaway size boats out or more foreign loads.

[Chris M]

I don't think you will see the Sherwin barged. At a presention at Gales of November a few yrs back Interlake did a presentation on the repowering of the Lee A. Tregurtha and they did shows some plans on bargeing her but realized she wouldn't be as efficient on long runs like to Two Harbors and the Twin Ports. Correct me if I'm wrong but the Patherfinder rarely comes to or never has been to the Twin Ports.

[Chet]

Hard to say. I think the decline in coal consumption by power plants around the lakes is going to free up a lot of Interlake tonnage over the next few years. The fleet will want to keep those 1,000-footers busy before they can bring out another boat. However, steamers and older diesels are going to be facing pressure in the next few years to clean up their emissions. So the next few years might be a good time for Interlake to re-power the Sherwin with the latest, compliant engine.

[LeoA]

Several repowering projects by Interlake over the past half decade disproves that notion if you ask me. I've even spoken to someone there fairly high up that spoke with some regret that the Mauthe was barged with today's fuel prices, smaller crew sizes, and more stringent requirements on barges that has narrowed or even removed the financial advantage that once existed.

And a ship of the size of the Sherwin is going to be spending even more time out on the open lake which swings the equation even more towards a more efficient ship that burns less fuel going through the water. And fuel cost is just going to keep rising in the coming years and since they're not just looking at today when considering such a project, but the next 30 or 40 years as well, it's quite clear that they think remaining a powered vessel makes financial sense.

They wouldn't be repowering ships like the Beeghly, Tregurtha, and Barker if they thought converting them to integrated tug/barges made financial sense. Why would they think so suddenly with the Sherwin?

[harold]

A better question might be with all the ships that are available will there be work for them?

[ashland69]

Is there any possibility the John Sherwin will be refurbished within the next year or two? Or is the economy still not good enough to do it? TIA Andrew

I don't see enough of an improvement in the economy to warrant bringing the Sherwin out. Personally, if and when it does return to service, I suspect it'll come out as a self-unloading barge.

[LeoA]

Still US flagged ships at the wall not expected to sail this year, a new large tug/barge (Chartered I believe by ASC), and Lower Lakes is bringing to the lakes an ocean going integrated tug/barge to replace the capacity they lost with the retirement of the Maumee.

Until you see everything out there sailing or you hear about Interlake landing a large contract without enough capacity to handle it (and being unable to charter something like the American Valor which I suspect they would try before giving the Sherwin project the green light), it's safe to say the project reminds on hold.

Not enough cargos now just for the vessels considered active but laid up due to lack of demand. But on the bright side, I saw that a Class 1 railroad announced a few days ago that their business was nearly back to the level it was before the economy imploded in 2008. Continued growth to pre recession levels and hopefully past that in the next few years is the sort of thing needed before Interlake would even consider this project again.

[Andrew]

Is there any possibility the John Sherwin will be refurbished within the next year or two? Or is the economy still not good enough to do it? TIA Andrew