[Federal Register Volume 59, Number 86 (Thursday, May 5, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-10568]


[[Page Unknown]]

[Federal Register: May 5, 1994]


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DEPARTMENT OF TRANSPORTATION
Saint Lawrence Seaway Development Corporation

33 CFR Part 402

 

Tariff of Tolls: Proposed Revision

AGENCY: Saint Lawrence Seaway Development Corporation, DOT.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Saint Lawrence Seaway Development Corporation and the St. 
Lawrence Seaway Authority of Canada have jointly established and 
presently administer the St. Lawrence Seaway Tariff of Tolls. This 
Tariff sets forth the level of tolls assessed on all commodities and 
vessels transiting the facilities operated by the Corporation and the 
Authority. To improve the competitiveness of the Seaway, the 
Corporation and the Authority are proposing that the Tariff be amended 
to provide that the charges for the 1994 season under the Tariff 
Schedule be the same as for the 1993 season, except the toll for steel 
slab. In an effort to increase steel slab shipments, the Corporation 
and the Authority are proposing a separate, lower toll for this 
commodity, which is now included under the general cargo rate. In 
addition, the Corporation and the Authority are proposing for 
competitive purposes that the Incentive Tolls Program be continued and 
be revised by increasing the amounts of the discounts and rebates and 
their applicability.

DATES: Any party wishing to present views or data on the proposed 
revision may file comments with the Corporation on or before June 6, 
1994.

ADDRESSES: Send comments to Marc C. Owen, Chief Counsel, Saint Lawrence 
Seaway Development Corporation, 400 Seventh Street, S.W., Washington, 
DC 20590.

FOR FURTHER INFORMATION CONTACT: Marc C. Owen, Chief Counsel, Saint 
Lawrence Seaway Development Corporation, 400 Seventh Street, SW, 
Washington, DC 20590, (202) 366-0091.

SUPPLEMENTARY INFORMATION: In and effort to improve the Seaway's 
competitiveness, it is proposed to amend Sec. 402.8, the Schedule of 
Tolls, to provide the charges for the 1994 season under the Tariff 
Schedule be the same as for the 1993 season, except the toll for steel 
slab. In an effort to increase steel slab shipments, the Corporation 
and the Authority are proposing a separate, lower toll for this 
commodity, which is now included under the general cargo rate. This 
separate toll would be a 25 cents per metric ton reduction for each of 
the two Seaway segments, a net reduction of 50 cents per metric ton for 
vessels transiting both segments. As a conforming amendment, paragraph 
(i) of Sec. 402.3, the definition of ``general cargo'' would be amended 
to reflect that steel slab is no longer included in this category. The 
Corporation and the Authority also are proposing, for competitive 
purposes, that the Incentive Tolls Program be continued and be revised. 
Section 402.9 would be amended to provide that a new business incentive 
of a 50% discount would be granted to a carrier immediately upon 
application before transit or upon arrival at its destination. In 
addition, North American origins and destinations will be grouped into 
five geographic regions to discourage cargo diversions. It is 
additionally proposed to amend Sec. 402.11 to provide that volume 
rebates of 50% would be available to both shippers and receivers of 
cargoes with a satisfactory three year traffic history for the 
commodity involved. When a particular shipper's or receiver's shipments 
of a specific commodity exceed their highest single season tonnage 
amount of that commodity of the previous three seasons by at least 
25,000 metric tons, the rebate would be applied to all tons exceeding 
that previous high. This change will target to rebates more directly to 
shippers and receivers. The alternate use of bulkers program (section 
402.13) would be continued, but amended to include steel slab as a 
separate commodity. That section would also be amended to make 
clarifying, editorial changes that have proved necessary from 
experience, but the manner in which the provisions is interpreted and 
administered would not change. Finally, a new section 402.15 would be 
added to clarify that carriers, shippers, or receivers would be 
eligible to receive only one of the incentives, i.e., new business, 
discount, bulk trade discount, or volume rebate, for any one shipment.

Regulatory Evaluation

    This proposed regulation involves a foreign affairs function of the 
United States, and therefore, Executive Order 12866 does not apply. 
This proposed regulation has also been evaluated under the Department 
of Transportation's Regulatory Policies and Procedures and the proposed 
regulation is not considered significant under those procedures and its 
economic impact is expected to be so minimal that a full economic 
evaluation is not warranted.

Regulatory Flexibility Act Determination

    The Saint Lawrence Seaway Development Corporation certifies that 
this proposed regulation, if adopted, would not have a significant 
economic impact on a substantial number of small entities. The St. 
Lawrence Seaway Tariff of Tolls relates to the activities of commercial 
users of the Seaway, the vast majority of whom are foreign vessel 
operators. Therefore, any resulting costs will be borne mostly by 
foreign vessels.

Environmental Impact

    This proposed regulation does not require an environmental impact 
statement under the National Environmental Policy Act (49 U.S.C. 4321, 
et seq.) because it is not a major federal action significantly 
affecting the quality of human environment.

Federalism

    The Corporation has analyzed this proposal under the principles and 
criteria in Executive Order 12612 and has determined that this proposal 
does not have sufficient federalism implications to warrant the 
preparation of a Federalism Assessment.

List of Subjects in 33 CFR Part 402

    Vessels, Waterways.
    Accordingly, the Saint Lawrence Seaway Development Corporation 
proposes to amend 33 CFR Part 402 as follows:

PART 402--TARIFF OF TOLLS

    1. The authority citation for 33 CFR part 402 continues to read as 
follows:

    Authority: 68 Stat. 93, 33 U.S.C. 981-990.

    2. Section 402.3 would be amended by revising paragraph (i) to read 
as follows:


Sec. 402.3  Interpretation.

* * * * *
    (i) General cargo means all goods not included in the definitions 
under paragraphs (b), (g), (h), and (j) of this section, but excluding 
steel slab;
* * * * *
    3. Section 402.8 would be revised to read as follows:


Sec. 402.8  Schedule of Tolls.

------------------------------------------------------------------------
                                              Tolls (Effective 1994)    
                                         -------------------------------
                                                           Lake Ontario 
                                          Montreal to or    to or from  
                                             from Lake       Lake Erie  
                                          Ontario (MLO)      (Welland   
                                                              Canal)    
------------------------------------------------------------------------
(a) For transit of the Seaway, a                                        
 composite toll, comprising:                                            
    (1) A charge in dollars per gross                                   
     registered ton, according to                                       
     national registry of the vessel,                                   
     applicable whether the vessel is                                   
     wholly or partially laden, or is in                                
     ballast. (All vessels shall have an                                
     option to calculate gross                                          
     registered tonnage according to                                    
     prescribed rules for measurement in                                
     either Canada or the United                                        
     States.)...........................            0.11            0.13
    (2) A charge in dollars per metric                                  
     tons of cargo as certified on                                      
     ship's manifest or other document,                                 
     as follows:........................                                
        Bulk Cargo......................            1.10            0.55
        Food Grains.....................            0.68            0.55
        Feed Grains.....................            0.68            0.55
        Coal............................            0.65            0.55
        General Cargo...................            2.66            0.88
        Steel Slab......................            2.41            0.63
        Containerized Cargo.............            1.10            0.55
        Government Aid..................            0.00            0.00
    (3) a charge in dollars per                                         
     passenger per lock.................            1.18            1.18
    (4) a charge in dollars per lock for                                
     complete or partial transit of the                                 
     Welland Canal in either direction                                  
     by cargo vessels, which may be                                     
     shared by cargo vessels in tandem:.                                
        (i) loaded per: lock............             N/A          440.00
        (ii) in ballast: per lock.......             N/A          325.00
(b) For partial transit of the Seaway:                                  
    (1) between Montreal and Lake                                       
     Ontario, in either direction, 15                                   
     percent per lock, of the applicable                                
     toll...............................                                
    (2) between Lake Ontario and Lake                                   
     Erie, in either direction, (Welland                                
     Canal), 13 percent per lock of the                                 
     applicable toll....................                                
(c) Minimum charge in dollars per vessel                                
 per lock transited for full or partial                                 
 transit of the Seaway:                                                 
        Pleasure craft\1\...............           10.00           10.00
        Other vessels...................           15.00           15.00
------------------------------------------------------------------------
\1\Includes Federal Taxes where applicable.                             

    4. Section 402.9 would be revised to read as follows:


Sec. 402.9  Incentive tolls.

    (a) Notwithstanding anything contained in this Tariff, the portion 
of the composite toll related to charges per metric ton of cargo 
charged on new business shall be reduced by fifty percent for a Seaway 
transit beginning and ending during the 1994 navigation year.
    (b) The discount mentioned in paragraph (a) of this section shall 
be granted for the remainder of the navigation season if:
    (1) A vessel carries, for each transit, 1,000 metric tons or more 
of new business or a minimum of 1,000 cubic meters of new business 
project cargo; and
    (2) A complete and accurate application for a new business discount 
is submitted to the Authority or the Corporation, on the form provided 
by the Authority or the Corporation, for evaluation and audit by the 
Authority or the Corporation prior to the beginning of a Seaway 
transit.
    (c) For the purposes of this section, ``new business'' means cargo 
that has not moved through a Seaway lock between an origin and a 
destination as defined in this paragraph (c) during the navigation 
seasons of 1991, 1992, and 1993 or cargo that has moved through a 
Seaway lock in quantities representing less than five percent of the 
average of Seaway traffic between an origin and a destination during 
the navigation seasons of 1991, 1992, and 1993. For the purposes of 
this paragraph (c), ``origin'' and ``destination'' mean the country in 
which the cargo is loaded or unloaded, but if the cargo is unloaded in 
North America, ``origin'' and ``destination'' mean the geographic 
region in which the cargo is unloaded, those geographic regions being 
as follows:
    (1) The Gulf of St. Lawrence and St. Lambert Lock;
    (2) St. Lambert Lock to Cape Vincent on the St. Lawrence River, 
Lake Ontario and the Welland Canal;
    (3) Lake Erie, Lake Huron, and connecting waters;
    (4) Lake Michigan;
    (5) Lake Superior and St. Mary's River; and
    (6) Ports elsewhere in North America in regions not specifically 
described in paragraphs (c) (1) through (5) of this section.
    5. Section 402.11 would be revised to read as follows:


Sec. 402.11  Volume discount.

    (a) A volume rebate shall be granted to a shipper of downbound 
cargo or to a receiver of upbound cargo at the end of the 1994 
navigation season after payment of the full toll specified in the 
schedule under the tariff in section 402.8 if shipments of a particular 
commodity during 1994 exceed by a minimum of 25,000 tons the shipper's 
or receiver's highest tonnage for that particular commodity during 
1991, 1992, or 1993 in the Seaway. Shippers will be qualified based 
upon the particular commodity loaded at their port of origin and 
receivers will be qualified based on the particular commodity unloaded 
at their port of destination. Shippers and receivers located within the 
Seaway will be qualified based on the total of their upbound and 
downbound shipments or receipts of the particular commodity. Should a 
shipper or receiver of the same commodity qualify for a volume rebate, 
the rebate will be divided equally between the shipper and receiver.
    (b) Volume rebates shall be granted only with respect to 
commodities whose shipper and receiver have shipped or received the 
subject commodity in the years 1991, 1992, and 1993 and have not been 
subject of a merger or take-over during 1991, 1992, 1993, or 1994.
    (c) The volume rebate shall be equal to a 50 percent reduction of 
the portion of the composite toll related to charges per metric ton of 
cargo paid for the shipments that surpass the shippers or receiver's 
highest tonnage for that commodity during 1991, 1992, or 1993. Payment 
of rebates will be made directly to the qualified shipper or receiver.
    (d) The Seaway traffic history describing the shipper's or 
receiver's tonnage shall be submitted by the shipper or receiver prior 
to the end of 1994 and shall be subject to audit by the Authority.
    (e) Cargoes having been the subject of a new business discount or 
an alternate use of bulker discount described in section 402.13 of this 
Part shall be excluded from the statistics used for calculation of 
volume rebates.
    6. Section 402.13 would be revised to read as follows:


Sec. 402.13  Vessels engaged primarily in the bulk trade.

    Notwithstanding anything contained in this Tariff, the toll for 
steel slab, general, or containerized cargo for any vessel documented 
under the laws of the United States or registered in Canada in 
accordance with the laws of Canada that has been engaged primarily in 
the bulk trade within the St. Lawrence Seaway/Great Lakes system during 
the three navigation seasons immediately preceding the applicable 
season shall, upon written application to the Authority or the 
Corporation prior to the beginning of a Seaway transit, be the toll 
charged for food grains specified in the schedule under the Tariff in 
Sec. 402.8 of this part.
    7. A new Sec. 402.15 would be added to read as follows:


Sec. 402.15  Single season discounts or rebate for same shipment.

    Notwithstanding anything in the Tariff, a carrier, shipper, or 
receiver shall obtain during a single navigation season, with respect 
to the same shipment, only one of the following three: A new business 
discount, as described in Sec. 402.9; a bulk trade discount, as 
described in Sec. 402.13; or a volume rebate, as described in 
Sec. 402.11.

    Issued at Washington, DC on April 25, 1994.

    Saint Lawrence Seaway Development Corporation.

Marc C. Owen,
Chief Counsel.

[FR Doc. 94-10568 Filed 5-4-94; 8:45 am]
BILLING CODE 4910-61-M