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The St. Lawrence Seaway System The Gateway to North America’s Heartland

The St. Lawrence Seaway System The Gateway to North America’s Heartland. New Toll Structure. Effective March 2008, our Toll Structure has been modified offering New Business Incentives Broader Classification for Domestic Cargo Variable Lockage Fees

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The St. Lawrence Seaway System The Gateway to North America’s Heartland

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  1. The St. Lawrence Seaway SystemThe Gateway to North America’s Heartland

  2. New Toll Structure Effective March 2008, our Toll Structure has been modified offering New Business Incentives Broader Classification for Domestic Cargo Variable Lockage Fees Volume Incentives for Existing Cargo Customers Toll Freeze From 2008 to 2010

  3. Objectives:In consultation with our stakeholders, a number of key priorities were identified as being important for the development of new business, the maintenance and development of our existing business and to increase the utilization of the Great Lakes Seaway System • Key Priorities • New business development for domestic and international carriers and customers • Recognition of existing customers and their business • Alignment of lockage fees to benefit all carriers (big, medium, small) • Promotion of Short Sea Shipping within the Great Lakes System • Need for cost stability to assist our stakeholders with long term planning and the allocation of resources

  4. Toll Freeze 2008-2009-2010 • Our stakeholders advised that toll stability will assist in the development of new business, the expansion of existing business and planning for the future in the following areas: • Resource and asset planning • Business plan development and implementation • Medium-long term planning for cargo owners

  5. New Business Incentive • A 20% reduction on tolls for cargo approved as New Business • One of the following criteria will qualify cargo as New Business: • Commodity has not been shipped through the Seaway in the last 5 years in an amount larger than 10,000 tonnes • Cargo comes from a new origin • Cargo goes to a new destination • Cargo was previously moving via another mode

  6. Volume Incentive We value our present customers and their business. Volume incentives have been implemented to assist in the growth of existing commodities/business. • A retroactive 10% rebate on applicable cargo tolls on the Incremental Volume • Incremental Volume is the portion of tonnage of a specific cargo shipped by a shipper/receiver above a pre-approved maximum volume. • Shippers/receivers must submit for approval their proposal before June 30th • It must include the cargo, its origin and destination, and the maximum volume achieved during the previous five (5) years

  7. Reduced Lockage Fees To diversify our cargo mix and assist all vessel operators we aligned our lockage fees to a cost based on per GRT. This change has provided savings to all vessel operators.

  8. Modified Domestic Cargo Classification

  9. Application Process • New Business • Submit application outlining the cargo/origin/destination combination to the SLSMC for approval • Volume Rebate • Submit application by June 30th to SLSMC for approval • Application form and details available on our website: www.greatlakes-seaway.com

  10. Contact Information • Incentive programs • Pierre Cécile • Manager, Revenue & Forecast • (450) 672-4115 (2376) • Bruce Hodgson • Director, Market Development • (905) 641-1932 (5436) • tariff@seaway.ca • Questions or additional information

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