North Star Port

orth Star Port: What is your key takeaway from conferences you attended this year? D e b D e Luc a : W h i l e a few c o n s i s te nt themes emerge, one in particular stands out. Decarbonization of the shipping industry is a key focus for several reasons. Nations and international ship- ping organizations are setting goals for the industry and groups of shippers are seeking low-carbon emission supply chains in the interest of lowering Scope 3 emissions. In order to meet overarching carbon emission goals, potential short-term and long-term technological solutions need to be refined, tested and scaled. Vessel companies, ports and terminals are tracking these developments to determine their path to decarbonization, while at the same time planning for the significant associated capital investment that will be required to meet industry goals. From the Port Authority perspective, we are working with regional partners on the implications of the clean energy transi- tion for regional economic development. The National Renewable Energy Laboratory, for example, has identified Minnesota as a sweet spot for industrial decarbonization and the production, storage and trans- portation of hydrogen-based fuels. The port is central to this strategy as the key transportation hub for these efforts, with direct access to domestic and international markets. From a terminal operations perspective, we completed our climate action plan (read more about this on page 15), which sets the strategic direction for our decarbonization. We also applied for significant funding for the purchase of a variety of electrical lift equipment and associated charging infrastructure through the U.S. EPA's Clean Ports grant program; we applied as part of a statewide ports coalition strate- gically coordinated by the Minnesota Pollution Control Agency. Port: As part of your Port Authority duties, you also serve on numerous boards and committees. What lessons have you learned through those activities? DeLuca: I greatly appreciate the opportunity I've had to serve on various boards and committees over the years. Before and during my Port Authority tenure, I've been a board member at all organizational life phases, including startup, change in leadership, strategic direction/plan development, and during opportunities and challenges having to do with growth, failure to thrive, financial status, or relationships with partner orga- nizations. I have learned a great deal through this involvement. The importance of good governance to organizational effec- tiveness and vigor rises to the top of this list. Whole books are written on this topic, but here a handful of lessons: • Bylaws are important. Revisit and modernize them regu- larly, and use them. I have participated in multiple bylaw revi- sions that have reinvigorated organizational leadership and direction. I have seen the route forward to seemingly intracta- ble situations become clear upon revisiting or revising bylaws. • A well-functioning board is critical to the health of the organization. Board members must mind their role, which is to help set the organization's strategic direction, mission and vision. They hire, evaluate and fire the chief executive. They approve the budget and major purchases/expenditures. They do not operate the organization or direct the staff, but they are ultimately responsible for supporting the chief executive in achieving operational sustainability and, ideally, excellence. • The corollary to the above bullet is that the chief execu- tive must prioritize taking care of the board and keeping its members informed. They should build relationships with their board members and honor their individual strengths and networks. They should remember to pull in board members to help in advocacy, to celebrate a win, or to aid in crisis. Port: If you had one wish for the Port of D uluth-Superior in the second half of 2024, what would it be? DeLuca: Clearly that the port's tonnage increases. Through June, our total tonnage was track- ing about 2.5 percent behind the five-year average. Bright spots included the broad "other" cargo category running 5.7 percent ahead of the five-year average, with particularly strong show- ings for cement, limestone and general cargo. I am reluctant to state this as a "wish," because that implies that our strategy to bolster tonnage is simply hope. Nothing could be further from the truth. We are working with agricultural interests on moving new cargoes through our port and working on devel- oping trade opportunities along specific trade lanes, includ- ing Morocco, the United Kingdom, the Mediterranean, and broadly, Europe. Moreover, we are setting the table for long- term plays, such as the possible future movement of clean fuels through the Port of Duluth-Superior. A second wish is that fed- eral agencies award grants to several Duluth-Superior termi- nals that submitted applications this past spring. We should receive news in September or October on the success of port infrastructure and clean ports applications. Ultimately, these two wishes are linked. In order to provide the services neces- sary to grow tonnage through our port, which in turn support affordable supply chains for our state and regional industries, we need significant capital for infrastructure maintenance, improvement and expansion. N DULUTHPORT.COM | 1 THE HARBOR LINE Deb DeLuca Executive Director Q&A with "DECARBONIZATION OF THE SHIPPING INDUSTRY IS A KEY FOCUS."

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