Steel industry is bouncing back, causing more iron ore needed in lower lakes
SAULT STE. MARIE, MI -- You can't stop a good thing!
That's what the Army Corps of Engineers agreed on when they chose to keep the Soo Locks in Sault Ste. Marie open three days longer than usual.
Three extra days might not seem like a lot, but they will create more than a months worth of work for people in the steel industry, an industry that has found a way to bounce back from a dismal year in 2009.
The iron ore industry was frozen in 2009, slammed by the recession. But in 2010 and the early parts of this year, it's seemingly "thawing" out.
"The American Steel Industry is operating at very high rates and going into the winter here, they didn't have enough stockpiles to continue their operations," said Glen Nekvisil of the Lake Carriers’ Association.
The Lake Carriers' Association is the representative of the US vessel operators of the Great Lakes. Nekvisil says in 2009, the lowest total of iron ore was processed since 1938. It has bounced back, up 67 percent in 2010. And because the industry is locked in right now, the association has asked for the locks to stay open for a few more days.
"We will be staying open until midnight on the 18th," explained Steven Rose of the Army Corps of Engineers.
The Army Corps of Engineers have agreed to stay open an extra three days, and according to the Lake Carriers' Association, these days could be vital.
“We've done a survey of companies here, and if everything goes according to plan, it looks like we'll move another 530,000 tons of Iron Oar and about another 60,000 tons of coal," said Nekvisil.
And to focus on iron ore, Nekvisil says 60,000 tons typically is enough to keep a steel mill going for four days, so doing a little simple math, a month of work will be created by the locks staying open an additional three days.
“We are definitely talking about keeping people employed at steel mills this winter," said Nekvisil.
“It means the economy is starting to pick up, so I would say that's a good thing," said Rose.
With the extension, it'll shorten the amount of time crews have to do maintenance on the locks, but Steven Rose says it's nothing they can't overcome, especially when they can help the economy continue to grow.
Rose says numbers overall at the Soo Locks increased in 2010.
The total number of passages is up 34 percent, and the total tonnage of material is up 39 percent.
The locks will close on January 18th, and will open back up on March 25th.
