Posted: September 2, 2010

AMO supports TIGER grant application for upgrades to Lake Michigan car ferry S/S Badger


American Maritime Officers has offered its strong support for the Michigan City of Ludington's application to the Department of Transportation for a TIGER II grant to help fund the replacement of the coal-fired steam engines with diesel engines aboard the historic Lake Michigan car ferry S/S Badger.

In a letter sent to Secretary of Transportation Ray LaHood and Maritime Administrator David Matsuda, the AMO national president noted the approval of this "grant - to be supplemented by an investment of $2 million by the vessel's owner and operator, Lake Michigan Car Ferry Service - would allow the S/S Badger to comply fully with the U.S. Environmental Protection Agency's requirement that the ship end its discharge of coal ash in Lake Michigan by December 2012 under the EPA's 2008 Vessel General Permit.

"Refitting the S/S Badger with diesel engines would also allow the vessel to meet the EPA's air quality standards through cleaner fuel exhaust," he wrote. "These new engines would be Tier III, which would meet current and foreseeable EPA air emission requirements. The S/S Badger, which provides daily direct round-trip service across Lake Michigan between Ludington and Manitowoc, Wisconsin, represents a significant measure of economic life in both communities - an estimated $21 million a year in Ludington and an estimated $14 million a year in Manitowoc, according to reliable data compiled locally."

The DOT's TIGER II (Transportation Investment Generating Economic Recovery) grant program provides funding for individual projects to enhance and expand the use of America's Marine Highways.

The AMO national president pointed out that the "S/S Badger today accounts for an estimated 200 direct jobs aboard the vessel (including jobs held by members of American Maritime Officers) and ashore in the company office and an estimated 500 indirect jobs in the service and supply businesses that count Lake Michigan Car Ferry Service as a customer.

"In addition, the S/S Badger sustains jobs in Midwest and nationwide industries that use the ferry to move more than 1,000 commercial trucks across Lake Michigan each year as an extension of Interstate 10, as opposed to driving these vehicles around the lake in either direction at greater expense," he continued. "This cross-lake option also results in less highway congestion and less air pollution from truck fuel exhaust.

"New employment would result as well from the S/S Badger diesel conversion project - up to 70 jobs at Bay Shipbuilding Co. in Sturgeon Bay, Wisconsin, where the new engines would be installed, and additional jobs in the companies providing the diesel engines and their component parts."

The AMO national president noted: "Despite expressed concern that this TIGER II grant would give Lake Michigan Car Ferry Service an artificial advantage over a second company providing round-trip Michigan-Wisconsin service across Lake Michigan, competition is not an issue here.

"The S/S Badger - which would actually cost more to operate with diesel engines, given the comparative coal-diesel fuel costs - and the Lake Express (operated by Lake Express LLC) operate on different direct routes between different points in Michigan and Wisconsin. These vessels do not compete head-to-head.

"Moreover, the S/S Badger - by virtue of its size and configuration - can provide important specific commercial services that the Lake Express is incapable of," he wrote. "The S/S Badger can transport trucks, buses and oversized loads, while the Lake Express can accommodate only standard-sized passenger cars, vans and sport utility vehicles.

"In our view, the TIGER II grant application filed by the City of Ludington in the legitimate interest of preserving the S/S Badger as an economic, historic and cultural asset meets the grant criteria and stands squarely on merit, and we urge respectfully that it be approved."