Hallett relocating dock to Superior

March 22, 2006
By RON BROCHU
Superior Daily Telegram

More than $2.2 million will be invested in the Port of Superior as Hallett Dock Co. relocates its upstream West Duluth bulk terminal to Wisconsin.

Gov. Jim Doyle was scheduled to announce the project this afternoon in Superior, presenting city officials a $1.8 million Harbor Assistance (HAP) grant to help complete harbor improvements for Hallett, which will contribute more than $400,000.

The bulk commodities transshipment firm is being forced out of Slip 6, located just upstream for the former Arrowhead Bridge in West Duluth, because the slip has become part of the Stryker Bay cleanup project. Contaminated sediment in the Stryker Bay Superfund site is being dredged and deposited in Hallett’s slip, where it will be permanently capped. Hallett will retain its upstream West Duluth property, however, for development into a non-maritime industrial park, and continue to operate its terminal near the DM&RI docks.

Moving to Superior “gives us an opportunity to expand,” said Hallett Operations Vice President Bill McGiffert. Dock and channel improvements will allow larger vessels to have better unloading access to the property, said Jason Serck, Superior Port and Planning Director.

For more than a decade, access to Hallett’s West Duluth dock has been hindered by insufficient St. Louis River channel depth, limiting the amount of cargo that visiting ships could load. A plan to dredge the channel was rejected when Superiorites objected to having the dredge spoils deposited in the city’s Municipal Forest.

“It will enable larger ships to come in, and it couldn’t be done without state help,” said Rep. Robert Jauch, D-Poplar, who encouraged Doyle to support the investment.
The HAP grant, according to a statement released by Doyle’s office, will fund the construction of dock walls and pay for dredging the harbor channel to 27 feet.

Hallett is providing the required 20 percent local match. Work on the project should be completed by this fall.
“Through my Grow Wisconsin plan, we’ve put a strong emphasis on strategically investing in our transportation infrastructure so that we can support economic growth,” Doyle said in a news release before his 2 p.m. scheduled appearance at the Hallet site. “And the investments we’re making here in Superior offer tremendous economic benefits, not only for Hallett Dock, but for the entire region.”

Initially, Hallett will handle three commodities, McGiffert said:
• Blast furnace slag from the Lower Great Lakes, which is needed in the Twin Cities.
• Limestone for sugar beat processing along Minnesota’s Red River Valley.
• Road salt for use during the winter.

“We hope to add more products over time.” McGiffert said. “We’ll retain our current jobs and hopefully add more.”

Hallett is confident about the investment.

“We think railroads are having problems moving products, and traffic is moving toward ships,” McGiffert said.

That’s becoming a growing problem, said Dr. Richard Stewart, director of the Transportation and Logistics Research at the University of Wisconsin-Superior.

“Right now, many railroads on several corridors are operating at or near capacity,” he said, noting the United States currently has just half of the railroad track it had in the 1960s. Also during that period, little capacity has been added to the interstate highway system. Today, the cost to build four lanes in a rural area is $25 million per mile.

“In comparison, we have a 100-lane highway called the Great Lakes that costs the state nothing to build or maintain,” Stewart said.

Some development already has occurred at the site, formerly used by the Incan Superior, with a scale house and shop in place. A rail connection to existing Burlington Northern Railroad tracks is part of Hallett’s expansion plan.

Doyle has put a focus on Superior’s harbor-related industry during his administration. In 2004, he announced a $1.1 million HAP award to help complete dredging and rebuild a 1,250-foot pier at the General Mills grain elevator in the Port of Superior. He also helped the city secure terminal tax payments for the first time in more than 30 years. The 2007 payment is estimated to be more than $600,000, and will increase to more than $1 million in 2008. The governor also helped restore nearly 17 full-time Department of Transportation positions in Superior.

He credited Jauch and Rep. Frank Boyle for assisting with the initiatives. In 1985, Jauch, as a member of the Joint Finance Committee, worked with Gov. Anthony Earl to increase the Harbor Assistance Program by $500,000, clearing the way for the approval of a $1.75 million grant to Superior for dock wall rehabilitation. At the time, it was the largest grant in the program’s history.