Subcommittee hears industry plea to boost Michigan maritime grant fund for dredging, terminals

The Appropriations Subcommittee on State and Local Transportation heard industry testimony urging lawmakers to increase funding for the Michigan maritime and port facility assistance grant program to support dredging, terminal repairs and other port infrastructure.

The request came during a presentation by industry representatives, who described how Michigan’s ports move heavy construction materials and other freight and warned that maintenance needs — especially dredging as lake levels fall — threaten capacity. Presenters said a one-time $5 million FY24 appropriation was fully awarded by the newly created office and recommended adding at least $10 million to the fund in the next budget.

Why it matters: Michigan presenters stressed that ports move bulk materials used by construction and the auto industry and that existing port infrastructure is durable but costly to maintain. Kyle Burleson, director of state advocacy for the American Waterways Operators, told the panel that maritime transport is a low-emissions, cost‑effective option for heavy goods and highlighted the industry’s regional economic footprint. “Moving cargo on barges generates about 15 grams of carbon dioxide per ton mile,” Burleson said, contrasting that with rail and truck emissions.

Andrew Shepherds, regional manager for government public affairs for Wholesome, and Chuck Reszak, Wholesome’s marine operations director, gave the subcommittee a company-level view of port use. Shepherds and Reszak said Wholesome ships nearly 2 million tons of material annually on the Great Lakes, including cement from its Alpena plant and slag from South Chicago, and that roughly 90 percent of Alpena’s material moves by water. Reszak described vessel and terminal operations, noting that some vessels in use are decades old; he said one ship, the SS Alpena, is 83 years old and undergoing repairs.

Presenters outlined how the maritime and port facility assistance program can be used: matching federal funds, dredging, seawall repair, decarbonization projects and other capital work intended to increase port activity. The presenters said the grant program, created by state law in 2022, set a maximum award of $2.5 million per applicant; the office administered a single $5 million round in FY24 and awarded the full amount.

On specific port needs, Reszak and others described dredging as a growing priority because lake levels are on a multi‑year downswing. Reszak said Wholesome is pursuing its own dredging at Alpena and that, because of lower depths, the company must limit vessel loads: “We can load to 15,000 but we’re only loading them to 12.5 max,” he said, adding that the business impact is that the company is “not maximizing what we can bring to market.” Committee members asked about typical channel depth needs; Reszak said fully loaded cement vessels generally require roughly 26 feet of water plus about 1 foot of keel clearance (about 27 feet).

Burleson urged full funding of the grant program and pointed to out‑of‑state models. He described how Wisconsin and Ohio have long‑standing port programs and higher funding flexibility for port authorities. He also recommended dedicated staff at MDOT to track maritime businesses and coordinate dredging and infrastructure projects; he said MDOT placed the new maritime office within the department but had assigned it to a single employee pulled from freight rail responsibilities.

Several industry and infrastructure constraints were raised. Presenters said federal dredging dollars are key but limited; Burleson warned that proposed state PFAS testing and disposal requirements for dredge spoils could increase project costs and reduce the number of federal dredging projects. Reszak noted that some ports require significant investment — “about another $5 million to $15 million” at a port to establish a terminal able to receive cement barge traffic in some cases — and that many terminals in the Port of Detroit are privately owned and operated.

No formal legislative action was taken at the meeting. Representative Borton moved to adopt the April 30 meeting minutes; the motion prevailed by unanimous consent. Industry presenters asked the subcommittee to consider a budget line item of at least $10 million for the maritime assistance fund and answered members’ questions about dredging depths, vessel types and workforce training.

Direct quotes in context: Kyle Burleson, director of state advocacy for the American Waterways Operators, said, “Moving cargo on barges generates about 15 grams of carbon dioxide per ton mile.” Andrew Shepherds, regional manager for government public affairs for Wholesome, said about Alpena shipments, “we move 90% of our material from Alpena goes by water.” Chuck Reszak, marine operations director for Wholesome, said of loading limits caused by lower depths, “we are not maximizing what we can bring to market.”

What’s next: Presenters asked the committee to consider increased, recurring funding and a staffed maritime office at MDOT to coordinate grants, dredging and port development; no funding decision was made at the meeting. Committee members signaled interest in further discussion about dredging needs and the structure of state support for ports.

(Reporting based on testimony and Q&A at the Appropriations Subcommittee on State and Local Transportation.)