Combine the sliced shallots, salt and water in the All-Clad 3 qt. Sauce Pot and cover it with the lid. Bring the pot to a boil and steam the shallots for 5 minutes or until the shallots no longer have a crunch when tasted.
Remove the lid and add the red wine, port, sugar, bay leaf and black pepper. Bring to a gentle boil and cook, stirring occasionally until most of the liquid has been reduced. Reduce the temperature to low when you begin to see large bubbles forming in the liquid.
Continue to cook until the liquid has almost completely evaporated and is very syrupy. Stir in the red wine vinegar and remove from heat. Transfer the marmalade to a cutting board and chop it to a relish like consistency. The marmalade can be served hot as a condiment for red meats or cold with cheeses or on sandwiches. The marmalade can be stored in the refrigerator for up to a week.