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Cargo numbers on Seaway plummet

FEWER SHIPS PASS: Biggest drop, 64 percent, comes in transits of iron ore; official says it's worst he's seen
By LORI SHULL
TIMES STAFF WRITER
THURSDAY, JUNE 4, 2009
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MASSENA — Fewer ships with far less cargo are churning up and down the St. Lawrence Seaway so far this year.

Cargo numbers are down 40 percent compared with the first two months of last year's shipping season. The total number of transits is down 32 percent, according to numbers released by the Seaway.

"I've been here eight years. I've never seen anything like this, but people older than me say this is the worst recession since the Great Depression," said Timothy D. Downey, spokesman for the Seaway. "Therefore, it's understandable that you would see some not-very-robust figures."

Before the Seaway opened at the end of March, Seaway officials said they expected to see a decrease in shipping numbers for the 50th season, though the predictions were for a 4 percent or 5 percent change.

"We were sad to see that, but not surprised," spokeswoman Joy Pasquariello said. "It's big."

Shipping numbers have been going down for the past two years. Last year, the beginnings of the economic downturn were affecting cargo transports, and the year before, a drop in water levels forced shipping companies to carry less cargo.

The biggest drop came in transits of iron ore, which is used to make steel. Iron ore is one of the highest volume cargoes to sail through the system and over the past two months, it has dropped 64 percent, according to Seaway data. The turmoil in the steel and manufacturing industries explains why the numbers for both iron ore and coal have dropped.

Officials refused to predict what might happen over the rest of the season. They are taking the data month by month and waiting to see if any improvement will come this year, Mr. Downey said.

Despite the decrease in shipping, a massive improvement project is under way and will continue at the St. Lawrence Seaway Development Corp. facilities. Congress ratified a budget that is nearly double what the Seaway has received since it was built. It will receive $32 million this year, as opposed to the $17 million it operated on last year. The additional money will go to the completion of 50 projects, from roads and buildings belonging to the Seaway to the locks themselves, over the next decade.

The American investment mirrors a similar investment program that began in Canada a couple of years ago.

"The Seaway has been a vital transportation route for both nations. We are determined to make it as good as it can be, without enlarging the locks," Mr. Downey said. "The ink is dried; we have seen essentially a doubling of our budget."

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