Presentation on theme: "2013 Annual Waterways Symposium “Goin’ With the Flow” Presented by: Jim Scharner The David J. Joseph Company October 2 nd, 2013."— Presentation transcript:
2013 Annual Waterways Symposium “Goin’ With the Flow” Presented by: Jim Scharner The David J. Joseph Company October 2 nd, 2013
2 The DJJ Family of Companies
4 Click to edit Master text styles –Second level Third level –Fourth level »Fifth level 4
5 Click to edit Master text styles –Second level Third level –Fourth level »Fifth level 5 STEEL MILLS 5 Sheet MillsCastrip Mills Plate Mills Bar MillsBeam Mills Nucor Corporate Office
Selected Major Consumers Located on the Inland Waterway System and East Coast
Selected Barge Suppliers Located on the Inland Waterway System and East Coast
Historically, GDP below 2.93% has resulted in a contraction in steel usage. 10 steel consumption-gdp scatter
U.S. Steel Operating Rate 11 operating rate
U.S. Steel Operating Rate 12 operating rate
DJJ Barge Volume 13
WRDA Vital for US Manufacturing Deep water ports and inland waterways are an important source of efficient and cost effective transportation for Nucor. WRDA is a job creation bill. Our ports and waterways create jobs and revenue around the country. Failure to upgrade and maintain our ports and waterways will force manufacturers like Nucor to look to alternative modes of transportation that will be less efficient and more costly. An important provision in the WRDA bill is full dedication of revenue from the Harbor Maintenance Trust Fund for its intended use. –Currently, only about 60% of the annual $1.3 billion in Harbor Maintenance Tax collections are spent on federal channel maintenance and related costs. –To adequately address our waterway infrastructure needs and remain competitive we need full dedication of the revenue from this fund.
WRDA Vital for Nucor Steel Production In 2012, Nucor recycled over 19 million tons of scrap metal and turned it into new steel 60% of our steel mills have access to deep water. –Functioning waterways are vital for bringing raw materials to our facilities and to get finished products to market. Nucor is currently building a direct reduced iron (DRI) facility in South Louisiana on the Mississippi River. –DRI is an important feedstock our company uses at our steel mills, along with scrap metal, to produce steel products. –Location was selected because its river access will allow DRI to be shipped to several Nucor facilities around the country. –New facility reduces our need to import iron from other countries to our mills. Right now, 5 Nucor mills receive DRI by barge. Locating this new facility on the Mississippi River means two more Nucor mills can receive DRI. The company is considering a second DRI plant on the Louisiana site.