Boatnerd Discussion Forum

Just to be clear, I have no inside knowledge, I don't know anyone in any shipyard and I'm not on any social media. My proposal is purely speculation and wishful thinking.

Since they aren't moving the Blough, perhaps CN has found a buyer.

I recall when these large companies were fast moving away from vertical integration. What makes it so attractive today? Seems to me that only reason Cliffs bought into the manufacturing end was to shore up their raw material supply business.

I think if you were to ask the management at VTB or Interlake if they saw Cliffs as competitors you would get a resounding NO. All three companies have had a strong working partnership with Interlake serving Dearborn, Torco and Indiana Harbor.
VTB did not build the Michigan Trader on speculation. They had a nice contract to service Ironville, Torco and Cleveland Bulk Terminal.
None of those contracts are threatened by Cliffs buying the Blough.
GLF cant be considered competition with 3 boats at the wall and their boats carrying non Ciffs pellets to non Cliffs customers.If GLF is unable or unwilling to fix the Blough why continue pouring money into a losing propostion.
Interlake and VTB have shown bold leadership and continue to upgrade their fleets with an optomistic eye on the fure of Great Lakes Shipping.
This too would be a bold move by Cliffs to snatch up a valuable asset for pennies on the dollar and invest in repowering/reconfiguring the Blough into the profitable workhorse it could be for the next 30yrs.
It would solidify their Vertical Integartion with a versatile boat that could fill the role that the American Spirit played this past season. It was able to load at Marquette and also hauled limestone on occassion.

"They are not in competition at all. CML hauls Cliffs pellets to Cliffs end users. GLF is not in the mix"

Sure they are. Around 50 million tons of iron ore are shipped in a year. American/Interlake/VanEnkevort/GLF/Grand River all haul pellets for Cliffs. A rebuilt Blough would have to be take cargoes away from those companies.

So with St.Clair and Belle River power plants shutting down soon, along with the possible shut down of USS Pittsburgh works, rebuilding the Blough would put pressure on rates for all companies.

That’s a nice thought on the the reconstruction of the blough but your talking millions of dollars in work to be done taking out the shuttle conveyor welding plates over the open sides of the hull where the shuttle conveyor comes out and not to mention moving everything aft then put a unloading tower and boom plus new engines. And the list goes on as to everything else that has to be fixed wiring,electrical panels,tubing,etc... I for one would be all for seeing the blough fixed and sailing again as it’s always been my favorite ship. It’s always fun to speculate and easy to spend other people’s money on what could or should be done but I don’t see it happening. Time will tell.

Guest wrote:Hi Jon Paul,

I like your thinking in regards to the Roger Blough, but do others, such as CML even realize the jewel the Blough is?

When you write about reconstructing the stern, are you talking about shifting the aft cabins, rearward so as to fill the space that is now occupied by the shuttle conveyor? I do have plans of the Roger Blough, if I get a chance on Tuesday or Wednesday, I'll scan or photograph the inboard profile drawing I have.

- Brian

Hi Brian. I think a lot depends on the condition of the stern hull. If the hull integrity is fine then cleaning out the aft end of all the old machinery and the convoluted unloading system with shuttle boom is a start.
I'm not a marine architect or engineer but they have a lot of room to work with in their redesign. They could fix a lot of the old problems that haunted the Blough along the way.
It may even be possible to eliminate excess weight and increase her carrying capacity another 1000 tons by reconfiguring the engine room and unloading system without the shuttle boom.
The Blough has far more potential and upside than the other boats in long term layup....Ryerson, Sherwin, American Valor....and far cheaper than a new build.

Guest wrote:IMO not sure CN would want to sell a single boat to someone that could compete with the fleet they are trying to sell. It might be all or nothing.

They are not in competition at all. CML hauls Cliffs pellets to Cliffs end users. GLF is not in the mix.
If the Blough is bleeding GLF out with dockage fees and not bringing in revenue...it is a negative asset.
Sell the Bough at basically scrap value, take the insurance settlement and clear the books of dead wieght.

My buddy over there at the yard said that the repairs to the Blough will be $29-32,000,000 just to get her back in service as she currently is. Rumor he heard going around the yard the Calloway's boom may be installed on the Blough. The Blough's value was estimated at $40 million.

IMO not sure CN would want to sell a single boat to someone that could compete with the fleet they are trying to sell. It might be all or nothing.

Hi Jon Paul,

I like your thinking in regards to the Roger Blough, but do others, such as CML even realize the jewel the Blough is?

When you write about reconstructing the stern, are you talking about shifting the aft cabins, rearward so as to fill the space that is now occupied by the shuttle conveyor? I do have plans of the Roger Blough, if I get a chance on Tuesday or Wednesday, I'll scan or photograph the inboard profile drawing I have.

- Brian

I have a bold plan that would provide a win/win/win scenario for the disposition of the Roger Blough...

GLF takes the insurance settlement and then clears their books of dead non revenue producing wieght on their ledger by selling the Blough at a fire sale price.

CML buys the Blough for the following reasons;
-The Bough is an excellant ice and heavy weather boat capable of sailing 12months of the year.(something that may become useful when Poe#2 comes online and 12 month navigation is possible)
-Low mileage hull which has sat extended periods at the wall due to economic issues and it being limited to 2 unloading ports.
-After the grounding @ Gros Cap in '16, the hull was completely surveyed and repaired and has only had a few years of service since
-Cliffs has plenty of pellets to deliver and lots of customers to use them unlike GLF
-If the hull is undamaged then gut the after end and reconfigure the self unloading system to be routed to a stern mounted boom. (flush with the spar deck as no trunk house is neccessary).This will allow the Blough to unload at any dock except Dearborn and Ironville, thus vastly increasing its versatility.
-with the new deck boom and its 41' depth, the Blough is now available to load limestone and backhaul increasing its profitability.
- repower with a low emissions high efficiency diesel plant that will be compliant to future EPA standards
Cliffs/CML would now have a strong asset that would in theory provide 30 yrs of dependable service on their investment.

Bay Shipbuilding gets the contract to reconstruct and repower the Blough thus continuing their role as an innovative leader and showing that ship construction/rebuilding is far from dead on the Great Lakes.

...and the Blough would look mighty handsome sporting the classic CML livery!

Looks like the blough is staying put in sturgeon bay now that the callaway is rafted to the blough. I know they could easily still pull the blough out but would have thought they would have done so already to save more work!

Outside of the Badger, don't the steamers have a emissions drop dead date?

Dan wrote:It wasn't a statement, but a serious question. If an individual had the money to buy the fleet, would CN be willing to sell to say an 18 year old kid, or would it have to be someone in the industry that meets certain requirements beyond the money? Just curious.

As far as I am aware, the only requirement as to the purchase of a vessel that falls under Jones Act rules that is to continue trading under the Jones Act (that is between one US port and another) is that it must be owned by an American citizen or American business entity. So yes, an 18 year old kid with money could in theory buy a ship or an entire fleet of them. I suspect that in that kind of situation all financing would have to come from the buyer as getting any outside money from a bank or other source would be... unlikely. Also I'm not sure how much confidence ones new employees would have in their new boss, but age does not automatically translate in ability. Plenty of companies have been run into the ground by experienced management. Just remember, buying a ship or fleet is only the first part of the job. It takes a lot more money to crew, supply, and maintain them to a minimum standard, much less a good one. Good luck.

DCN

isnt the ss wilfred sykes the 5th steamer and you could count the ss badger as the 6th none on the canadian side

Guest wrote:GLF has 3 of the last 4 steamers, yes?
Alpena being the other

Wasn't there phase out date for their operation?

You're missing the Sykes. Also, Ryerson.

Guest wrote:GLF has 3 of the last 4 steamers, yes?
Alpena being the other

Wasn't there phase out date for their operation?

The EPA had a program to encourage US Great Lakes ship owners to repower their existing steam turbine vessels with Tier 2 or higher marine engines.

https://www.epa.gov/regulations-emissio ... -incentive

- Brian

It wasn't a statement, but a serious question. If an individual had the money to buy the fleet, would CN be willing to sell to say an 18 year old kid, or would it have to be someone in the industry that meets certain requirements beyond the money? Just curious.

GLF has 3 of the last 4 steamers, yes?
Alpena being the other

Wasn't there phase out date for their operation?