BC Shipping News - December 2017 / January 2018

Legal Affairs: Proposed Oceans Act amendments

Shipping & Terminals: First potash shipment a success

Exercise Salish Sea: The many benefits of practice

BC SHIPPING Commercial Marine News for Canada’s West Coast.

Volume 7 Issue 10

www.bcshippingnews.com

NEWS December 2017/January 2018

Industry Insight

Leo Stradiotti North Arm Transportation

B.C. Tug Update Lack of skilled labour a common issue

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Contents

NEWS

December 2017/January 2018 Volume 7 Issue 10

Cover Story

26

7

Editor’s note

8

In brief

By Jane McIvor

Industry traffic and news briefs

14 Industry insight

A lifetime in B.C.’s tug industry Leo Stradiotti, North Arm Transportation Few in British Columbia’s tug industry can claim more experience than Stradiotti.

And that experience is put to good use for both North Arm Transportation and the Council of Marine Carriers.

20 History lesson

The history of whitewater rafting From necessity to adventure

By Lea Edgar A new era for Island Tug and Barge

26 Tugs & barges

48 Canada C3 voyage

To seek the Northwest Passage

By Ken Pittman

If it ain’t broke, don’t fix it

By Captain Don Rose

34 Tug design

52 Ports & terminals

New tug designs for river and near coastal work

By Mark Mulligan

The Vancouver grain trade turns 100

By David Hill-Turner

35 Pilotage waivers

12

44 Exercise Salish Sea

50 Sea stories

B.C. tug industry update Lack of skilled labour a common issue

Tug industry deals with stricter waiver criteria

39 Legal affairs

First potash shipment a success

The many benefits of practice

22 Tugs & barges

42 Shipping & terminals

44

Proposed Oceans Act amendments focus on environmental protection and enforcement

By David K. Jones

On the cover and above: Seaspan tugs at Ogden Point, Victoria (photo: BC Shipping News); right: BC Ferries’ Coastal Renaissance during Exercise Salish Sea (photo courtesy Canadian Coast Guard and Canadian Armed Forces); left: Leo Stradiotti (photo: BC Shipping News) December 2017/January 2018 — BC Shipping News — 5

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Contributing Writers Lea Edgar David Hill-Turner David K. Jones Jane McIvor Mark Mulligan Kevin Obermeyer Ken Pittman Leo Stradiotti Editorial Assistant Amanda Schuldt

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Proud member of: 300 – 1275 WEST 6TH AVENUE, VANCOUVER, BC V6H 1A6 T: 604-893-8800 / F: 604-708-1920 E: JANE@BCSHIPPINGNEWS.COM 6 — BC Shipping News — December 2017/January 2018

International Sailor’s Society Canada

EDITOR’S NOTE Photo: Dave Roels

Best line in the magazine highlights a scary scenario

T

he award for the best line in the entire magazine goes to David Jones with Bernard LLP. This month’s Legal Affairs article, written by David, outlines the ammendments proposed to the Oceans Act. But a bit of context before noting the line...

Bill C-55, An Act to Amend the Oceans Act and the Canadian Petroleum Resources Act, was introduced earlier this year by the Federal Government. Amendments include environmental protection provisions that will allow the government to act more quickly in designating marine protected areas; it also significantly increases the level of fines and strengthens the enforcement provisions of the Act. David describes these changes in detail, such

as the amendment that authorizes the government to order an Interim Marine Protection Area, essentially freezing the level of human activity in any area deemed necessary. The order would have a fiveyear time limitation to allow for interim protection while studies, consultations and risk assessments are carried out.

The other significant aspect of Bill C-55 relates to enforcement and penalties. I had to read this part twice — it didn’t seem right but Jones assures me it is. If a person is convicted of an offence involving “more than one animal, plant, other organism or object, the fine imposed may be assessed as if each separate animal, plant, organism or object was the subject of a separate offence.”

Now the line: “Woe to the person prosecuted for damaging a plankton colony!”

As incredulous as this sounds, once Bill C-55 gets approved, this is the scenario that would face the shipping industry. Fines for ships over 7,500 tonnes deadweight or more could be hit with a maximum fine of $4 million.

There are additional amendments that are just as extreme and illogical. I encourage you to read David’s article (page 39) and then imagine how this could impact on your business. But, following on the heels of Bill C-48, the Oil Tanker Moratorium Act, I guess this is just the next step in shutting down the shipping industry on the West Coast.

— Jane McIvor

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INDUSTRY TRAFFIC

First BC Shipping Industry Luncheon a success

T

he inaugural BC Shipping Industry Luncheon was a great success with over 40 attendees meeting at the Terminal City Club to network and discuss issues relevant to their businesses. The informal gathering — a result of discussions at the Vancouver International Maritime Centre’s World Maritime Day session in late September — was organized by Vancouver ShipInvest and Management’s Haijun Yu and Bernie

Jones who are to be congratulated for a successful launch of the initiative.

“We hope that you all found it useful to meet some new people and, hopefully set up some networking opportunities,” said Yu. “We welcome your suggestions about format, venue, etc. As suggested earlier, it would be interesting for one or two of the participants to stand up and give a short presentation on some aspect of their business or something that they hope to achieve.”

Yu went on to say that: “This is an ‘open forum’ event meant to create a solid shipping community and opportunity to meet regularly and interact with members of our industry with whom we might not otherwise connect.”

The next luncheon will be held on December 6. Yu encouraged attendees to help grow attendance by inviting colleagues and friends. To receive information about the next luncheon, please contact: info@vanshipinvest.com.

Daryl Raibl (CTL Westrans), Haijun Yu (Vancouver ShipInvest and Management Ltd.) and William Jones (Inter-ocean Shipping).

Bernie Jones (Sealink Holdings), Glen Krueger and David Jones (Bernard LLP), Bonnie Gee and Denien Ford (Chamber of Shipping).

Samuel Tang (Fairmont Shipping) and Shelley Chapelski (Norton Rose Fulbright).

Photos: BC Shipping News

F.Tai (Waterfront Shipping) and Erik Knoph (Oldendorff).

Bill McFetridge (Norton Rose Fulbright), Yvonne Rankin Constantine (Vancouver International Maritime Centre), David Bain (NRF) and Kaity Arsoniadis-Stein (VIMC).

8 — BC Shipping News — December 2017/January 2018

NEWS BRIEFS Canada Metal (Pacific) appoints new CFO

I

n their continuing efforts to enhance their growing portfolio of manufacturing facilities Canada Metal (Pacific) is very pleased to announce the promotion of Theo Vanden Hoven to the position of Chief Financial Officer (CFO). Theo has been with CMP for over nine years and, in that time, has been responsible for Finance, IT and Supply Chain. As CFO, Theo will continue to oversee Finance and IT functions as well as supporting CMP’s new focus on growth through mergers and acquisitions.

Theo has been a Chartered Professional Accountant, CPA, CGA for over 20 years. He received his Bachelors of Business Administration (BBA) from Simon Fraser University (SFU) in 1992 and has worked in a finance role for the last 25+ years, with experience in the both software and manufacturing industries.

Theo said: “The last nine years with CMP have been an exciting ride packed with significant growth and all the challenges that come with it. I look forward to the next nine years as we continue our voyage towards growth and prosperity.”

Theo’s wealth of experience and industry knowledge has established him as a key member of our CMP Management team.

Sea Sunday celebrated

O

n October 22, St. David’s Anglican Church in Tsawwassen celebrated Sea Sunday. From the church narthex to the sanctuary, a maritime theme served to remind parishioners and visitors of the vital place the sea and those who sail it have in our lives.

The Rev. Peter Smyth, Senior Port Chaplain (Vancouver and Delta Port), was guest preacher where the Order of Service included the reading of “In Waters Deep, a few words from Captain John Horton and a solo tribute by parish director of music ministries, Sara Ciantar.

Later that day, a wreath in memory of souls lost at sea was cast afloat in the main channel of the Fraser River.

The ceremony took place from the upper deck of the Delta Lifeboat ‘to the sound of the Bosun’s call’ and prayers by the Rev. Tim Dutcher-Walls.

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INDUSTRY TRAFFIC

Ontario Government awards two ferry contracts to Damen

T

he Government of Ontario and Damen Shipyards Group have signed a contract for the design, build and delivery for two “road” ferries to operate in the Canadian waters of the Great Lakes. The ferries will be a 68-metre Damen Road Ferry 6819 and a 98-metre Damen Road Ferry 9819.

Although one vessel is 30 metres longer than the other they will share many design features and equipment specifications. Both will also be hybrid-ready, enabling them to be fitted with batteries when required. Both vessels are being designed in-house by Damen and will be fully customized for the local infrastructure.

The ferries will be based in Kingston and Loyalist Township, Ontario, at the north-eastern end of Lake Ontario. The new ferries will be significantly larger than the existing vessels and will create more economic benefits — helping more people, vehicles and goods travel to and from the islands. The larger of the two new ferries will serve the nearby Wolfe Island while the smaller will serve Amherst Island, just a few kilometres to

Mark Gerretsen (MP for Kingston and the Islands), Leo Postma, (Sales Manager, Damen Shipyards Gorinchem), Sophie Kiwala (Member of Provincial Parliament), Mike Bossio (MP of Hastings-Lennox and Addington).

the west. The new ferries are expected to make crossings faster for the one million passengers and 500,000 vehicles which travel annually between Wolfe Island

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and Kingston, and the 270,000 passengers and 130,000 vehicles which travel to and from Amherst Island each year.

Leo Postma, Damen Sales Manager, commented after the signing ceremony: “We are very happy and very proud to have this opportunity to further expand Ontario’s fleet of ferries. A rigorous tender process is always a test of how competitive we are and we are very pleased with the result. This new contract is a continuation of successful sales into Canada by Damen and the two new ships will take the number of Damen ferries operating in the country up to eight, along with other Damen workboats.

More are also currently under construction. As a result of orders such as these, Damen Shipyards Galati is becoming an international centre of excellence for the production of ferries.”

Steven Del Duca, Minister of Transportation, issued a statement on the announcement: “In addition to moving people to and from Wolfe and Amherst Islands, these new ferries will generate local economic opportunities and growth that will benefit all residents.”

The ferries are scheduled for delivery at the end of 2019 (Amherst) and at the end of 2020 (Wolfe).

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INDUSTRY TRAFFIC

Robert Allan receives the Meritorious Achievement Award from EGBC

C

ongratulations goes out to Rob Allan who was presented with the Meritorious Achievement Award as one of the President’s Awards conferred by Engineers & Geoscientists British Columbia (EGBC) on October 20, 2017, at their Annual Award Gala held in Whistler, B.C. This award is given annually to a member of the Association who has achieved distinction and outstanding goals associated with his/her profession.

Rob Allan has over 45 years of experience in the design of commercial workboats of all types, but especially high-performance tugboats for tanker escort and offshore terminal operations.

From 1981 until 2008 when company ownership was transferred to a cadre of senior employees, he led Robert Allan Ltd. to a position of international prominence in this field.

Notable achievements under his leadership include; major ice-breaking vessels for the Beaufort Sea and more recently the Caspian Sea and offshore Sakhalin; the Red Dot Award-winning Z-Tech ship-handling tug concept; and the development of the RAstar concept of escort tug which has revolutionized the conduct of tanker escort operations.

In the course of his career, Rob Allan has authored many dozens of papers for international industry technical conferences, and contributed chapters on tug and workboat design to

Bob Stewart, P.Eng., President of EGBC with Rob Allan. (Mike Crane Photography)

the major textbooks of SNAME. He is the recipient of the Small Craft Group Medal from the Royal Institution of Naval Architects (UK) for significant lifetime achievements in naval architecture; the Beaver Medal for significant contributions to the maritime industry of British Columbia; and he is the only Canadian to have been awarded the David W. Taylor Medal from SNAME for notable achievement in naval architecture.

In accepting this award, Rob Allan paid tribute to the many talented employees of Robert Allan Ltd., past and

present, whose hard work and commitment have enabled the company’s success. In particular, he acknowledged the significant contributions to the company of long-time colleagues Hans Muhlert and Ken Harford.

The receipt of this major award from EGBC caps a significant and fulfilling career, as Rob Allan announced his retirement from full employment in June of this year. He remains as Executive Chairman of the Board and as “Ambassador at Large” for Robert Allan Ltd., the company founded by his Grandfather in 1930.

BC SHIPPING NEWS

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12 — BC Shipping News — December 2017/January 2018

NEWS BRIEFS

Global Marine technology conference coming to Vancouver in 2018

T

he Transas mission to explain the true benefits and impacts of digitalization to the maritime world will be given new impetus by staging its 2018 global conference in Vancouver, one of North America’s top technology hubs.

The three-day event, which will take place at the Marriott Parq Hotel Vancouver, March 6 - 8, 2018, has been christened ‘THESIS18 — Enterprise Change’ to focus minds on the steps Transas believes are necessary if its pioneering THESIS vision for a connected maritime operational environment is to become reality.

The equivalent 2017 event in Malta won plaudits for both the scope and depth of its coverage, with maritime executives, research institutions, classification societies and training organizations joined by leaders from other industries, in a free-flowing dialogue that challenged

shipping orthodoxies. With the Editorat-large of Wired Magazine suggesting that emerging technologies would disrupt the assumptions upon which today’s industry is based, THESIS17 set the tone for debate within industry circles, on social media and in the trade press for months after the event.

“We are looking forward to three days in Vancouver where key stakeholders can once more connect around powerful ideas and inspired conversations,” said Frank Coles, Transas CEO. “With so much noise in the industry about technology, we seem to have forgotten the ‘why,’ as well as the benefits and impacts of change. THESIS18 will bring together maritime industry experts and those from adjacent business and technology disrupters to discuss the real enterprise challenges posed by digitalization to the maritime industry.”

Enterprise change requires the maritime industry to be open to fresh ideas, understand fully the digital solutions available, and be prepared to learn from outside its own experience how to maximize the benefits of technology investments, he said.

The THESIS18 agenda will also include scrutiny of misunderstandings pervading the industry when it comes to best practice on cybersecurity, added Coles, where the Transas CEO believes that greater realism will require a “total attitude change.”

Preparations are now well underway to replicate and build upon the successes of 2017 to ensure that the gathering on Canada’s West Coast next spring is equally, if not more, thought-provoking and inspirational.

To learn more, sign-up for updates and register your place, visit www. thesis2018.com

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INDUSTRY INSIGHT

A lifetime in B.C.’s tug industry Leo Stradiotti North Arm Transportation

Photo: BC Shipping News

W

hen asked about his background and when he first joined North Arm Transportation (NAT), Leo Stradiotti held up a photo of himself at the approximate age of four or five, standing on the dock that could be seen from where we now sit. While technically “retired” from day-to-day operations at North Arm, he still spends his time split between NAT, the Council of Marine Carriers where he has held the position of Chairman for the past nine years and Langara Island Lodge. Few in British Columbia’s tug industry can claim more experience than Stradiotti.

BCSN: You and North Arm Transportation are inextricably linked.

Perhaps we could tackle both backgrounds at the same time.

LS: My Father and his two brothers started Stradiotti Brothers (SB) in the very early 1940s. At that time, the work focused on the river, towing logs and fish buying. In the late 1950s, when that business started to change, they incorporated North Arm Transportation which, at that time, focused primarily on fuel and small freight deliveries. SB was eventually folded into NAT. I’ve worked here all my life — on the boats; in a little shipyard we used to

Few in British Columbia’s tug industry can claim more experience than Stradiotti. operate; in the maintenance shop; and in the office. I was in my mid-30s when I took over as President. Today, my son Mike and my cousin Gino are in charge.

BCSN: Could you tell me about today’s operations at NAT. Also, could you describe your fleet?

LS: Both operations and fleet have changed considerably over the years and continue to do so today, mostly in response to the changing business climate. Currently, we have five tugs that range in age from 10 to 30 years; two Class A (by Lloyd’s Register) doublehull combination fuel/deck freight barges (the Genesis is about five years old and the Pioneer was rebuilt and doublehulled about three years ago); eight single-hull barges ranging from 125 feet to 250 feet for general freight; and an oil storage barge with a tank which is permanently secured.

Our main business is transporting fuel along the coast to communities, villages and logging camps. NAT is the largest independent marine re-seller of fuel on the West Coast and has a fleet of combination fuel barges, storage barges and

14 — BC Shipping News — December 2017/January 2018

trucks that can provide fuel to anywhere on the coast.

In addition to fuel transportation, NAT also provides tug and barge services to move equipment and commodities up and down the coast — for example, they are involved in several run-of-theriver hydro-electric projects and short sea shipping routes, including container transportation between Vancouver Harbour and Nanaimo. That activity in particular has the potential to grow significantly.

We have our Mitchell Island facility. This has a shore-side ramp with a 100-ton capacity, multiple forklifts ranging from 8,000 to 30,000 pounds’ capacity and a crane service that includes an 80-ton Manitowoc crane. All of our facility crew are fully licensed and certified to handle dangerous goods as well.

We also have the Masset Division of North Arm which provides and delivers fuel to the communities of Haida Gwaii, including the Masset area and Graham Island. The fuel storage barge located in Masset, has a 1.2 million-litre capacity.

And just south of Masset, we operate

INDUSTRY INSIGHT Photo: BC Shipping News

a bulkhead for loading and unloading freight.

BCSN: Could you describe the trends in activity you’ve seen?

LS: Over the last number of years, the work climate has been quite stable in the sense that there have not been extremes in the level of activity. However, at one time, towing logs was the main activity of the tow boat industry. SB/NAT used to have booming grounds and storage facilities which supported the log towing business. As the logging industry changed the towing industry changed, moving away from f lat booms towards bundles of logs and self-loading log barges to accommodate that kind of work.

Today, we see a lot of other activities — for example, cement barges to Kitimat; heli-logging support operations which may include a fuel barge or landing pad, as well as activity related to the NAT fuel station in Masset. Twenty years ago, no one would have ever thought of doing run-of-the-river electric projects, it wasn’t even on anyone’s radar. The NAT loading facility on Mitchell Island

As Chairman of the Council of Marine Carriers, Leo works closely with Captain Phill Nelson, the CMC’s President.

is very useful for projects like these that need a constant supply of materials and supporting fuel supplies.

Looking at the level of business, last year was great and this year is equally good. In the near future, forecasts still

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BCSN: What about the trends in tug design and capabilities?

LS: Obviously, there have been major changes in tug design. Tugs in the 1950s

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INDUSTRY INSIGHT

Donald Roussel, Associate Assistant Deputy Minister, Safety and Security, Transport Canada, shown here with Leo, is a frequent keynote speaker at CMC’s Towboat Conference.

were sleeker, built with wood and had single screw propulsion. Today, most are twin screw and made with steel. They have so much more power today and are much safer in terms of maintaining their stability. The changes in engineering and design have changed the whole concept of small vessels dramatically.

BCSN: What about today’s fleet, industry wide? Do you have an idea of the average age?

LS: In general, the fleet is fairly old — on average, it’s in the range of 30 years. Having said that though, there are a number of new builds — new tractor tugs, ship docking tugs and some general

towing vessels built in local yards over the last few years. So, the average age is getting younger but the trend is toward more purpose-built vessels — for ship docking and ship escort, for example.

BCSN: And of course, technologies have changed quite a bit as well. What sort of impact has this had on crews?

LS: Back in the 1950s, radar was virtually unheard of and now, most tugs have at least two radars along with GPS, Internet availability, AIS, Autopilot, Bridge Watch Navigational Alarm Systems, ECDIS systems and the list goes on. The technology is much more dependable today and even though we

16 — BC Shipping News — December 2017/January 2018

still use paper charts in the smaller fleets, I would say that in most cases, technology has tended to make boats safer. You still have to look out the window though.

It’s not just the technology that has changed. New operating procedures are continually changing as well. When I started, no one even wore a life jacket.

Now, people accept that and expect the provision of Personal Protective Equipment of all types. Today, crew members are more skilled and comfortable in the use of electronics and you don’t need that ‘ear and eye’ that the old timers used to have because it’s not necessary when the electronics are monitoring the machinery.

BCSN: I’d like to spend some time discussing the Council of Marine Carriers (CMC). What sort of issues is the Council addressing today?

LS: First, I should note that the CMC is a responsive organization focused on addressing the needs of its members.

With that in mind, some of the things we’re dealing with include Transport Canada’s certification program, the condition of the North Arm and navigation issues in the Fraser River.

We’re also working on a co-operative, industry-wide recruitment/apprenticeship program. These days, finding skilled crew is an issue for every company. Many companies already invest in some form of training, but that is very specific to their needs and activities. The concept that CMC is proposing is a new recruitment and training program, to be administered by the Council and that will place trainees in participating companies to provide them with a wide range of skills. It is proposed that individual trainees will be CMC employees during the course of their training and will be rotated for seagoing assignments on the vessels of participating marine companies. At the end of their training, apprentices will have the basic experience and qualifications to enable them to be placed anywhere within the industry.

In the past, if someone wanted to do barge towing, they would work at Island Tug and Barge or Vancouver Tug; if they wanted to do log towing, they’d go to Rivtow or Kingcome Navigation. That was basically a training program in hiding — it wasn’t intended to be that but people gained a lot of coastal experience from this. This new program is intended to recreate that — starting out with

INDUSTRY INSIGHT skilled deckhands who can move along the educational and certification chains at a pace that keeps up with the supply needs of the industry.

We’re just in the planning stages currently and there are still details to work out but our vision is a program aimed at reflecting the needs of the entire industry. Initially, the program is seeing wide support from both regulators and from the marine industry, including employers, pilots and educational institutes. The marine unions are involved and are providing their thoughts and feedback.

And then there’s the pilot waiver issue. The Nathan E. Stewart incident off Bella Bella underscored the need for an effective pilotage waiver system.

There have been significant changes to the process of obtaining a waiver since the Nathan E. Stewart, but the jury is still out on whether or not those changes will realize an improvement in the system. At the moment, the requirement to obtain a waiver remains status quo but the Pilotage Act review is just beginning and we’re paying very close attention to developments.

The concept that CMC is proposing is a new recruitment and training program ... that will place trainees in participating companies to provide them with a wide range of skills.

So, those are just three examples of issues but there are many others. Another one, for example, is the fact that some rail bridges crossing the North Arm are being operated by remote-control now rather than having a bridge tender onsite. It’s much safer if there is someone who’s able to see and hear what is happening on the water in the location of the bridge.

We also have our Conference in 2019 at the Empress Hotel in Victoria. It’s still early stages for planning but we usually tailor the agenda to current issues so it’s always top of mind as we work through the year.

BCSN: A few years back, CMC conducted a pilot project on Safety Management Systems. Could you tell me the results of that?

LS: Yes, we were approached by Transport Canada to undertake a twoyear Domestic Safety Management System program. We had five companies

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participate. There were several more companies from across Canada who wanted to participate but Transport Canada limited the project to the original five. The program was designed around the business needs, safety culture and best practices of each particular company — for example, North Arm’s approach, related to our oil transportation business, would be different from another company that was in the log-towing business.

The participants felt that the program was very successful but Transport Canada eventually decided not to carry on with it. We’re hopeful that at some point, they will revisit that decision.

Those companies that participated still maintain the process that was set in place, or they have slightly adjusted it to their current needs. We have helped other member companies who were interested in implementing safety management programs on a voluntary

INDUSTRY INSIGHT basis. So overall, the pilot program was extremely helpful. It reinforced our belief that SMS is an effective and sound approach to vessel operations and that every size and type of operation can benefit from the same, even if the actual program didn’t go beyond the two years.

BCSN: Looking at safety, there was the sinking of the Nathan E. Stewart this past year and there have been a few other incidents that were surprising to see happen. Do you find any commonality in issues related to accidents?

LS: No, not really. Each incident will have different variables and you can’t summarize and point to one specific cause. You have to look at the specific circumstances of each. We’re not seeing anything that would point to a systemic problem within the industry, especially in the coastal towing venue. Having said that, the poor condition of the North Arm of the Fraser River has resulted in several incidents that have had some commonality. Towboats have increasingly experienced debris fouling their propeller and causing those tugs to run

aground or to become dead in the water and overrun by their tow.

BCSN: What about environmental sustainability? Are you finding issues related to meeting new regulations?

LS: If you ask the average tugboat operator, I don’t believe he would make a distinction between ‘environmental’ and ‘regulation.’ The industry has typically been environmentally friendly — for example, a version of “cold ironing” applicable to the individual boat, no overboard discharge of black water or bilges, and upgrading our machinery by installing environmentally friendly engines as per International Convention.

CMC member companies are encouraged to comply with the regulations and most operators do so. But there are those who fly under the radar and don’t follow the regulations and you end up with an unlevel playing field. But the average tugboat today is more regulated than ever before and that leads to more expense for those who are adhering to the rules.

It’s difficult for compliant companies to compete when that happens, but more

often than not, we find that those who aren’t complying with the rules are less safe and that can ultimately cost more in the long run.

BCSN: I’d like to wrap up by looking at future trends and issues — for example, cabotage or the use of autonomous vessels.

Cabotage is an issue that we’re constantly watching. We are concerned that the review of the Canada Transportation Act recommended the government lessen cabotage requirements, thus removing the protection of the right of Canadian companies to have sole access to the Coasting Trade of Canada. And the Canadian-European Free Trade Agreement (CETA), while mostly applying to the East Coast at this time, by allowing containers to be moved between ports in Canada on foreign flag vessels, could potentially impact the West Coast by allowing a European owned or controlled dredging company to bid on dredging the Fraser River.

This is a significant issue for our industry. If the regulations are relaxed any further, it will be very detrimental, so yes, we’re constantly discussing this

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INDUSTRY INSIGHT with regulators in Ottawa and any further incursions into the Coasting Trade Act could be extremely detrimental to the Canadian industry.

Regarding autonomous tugs, although the technology is available to have some form of an autonomous tug today, I don’t think we’ll see that here on the West Coast any time soon.

The complexity of the coast means that

there are too many variables and you need someone on the bridge, looking out the window.

BCSN: Any last comments on the future of the tug industry in British Columbia?

LS: I think the future is very bright and feel that the industry has pretty well finally recovering from the 2008 recession. From my perspective, the industry is so much better than it was 40 years

ago in many ways. Although we have lost a lot of unique personalities and characters in regard to people and tugs, no one would have predicted the advances we’ve seen in technology and design and I look forward to see what the future brings in terms of even more features that will only add to the safety, efficiency and the well-being of the industry.

BCSN

About Leo Stradiotti

L

eo Stradiotti has worked at North Arm Transportation his entire career. Working his way through the various departments — both on the boats and in the office — he became President of the familyowned business in his 30s and continued in that role until his recent retirement. Stradiotti has maintained an active participation in the industry through his various positions on the Council of Marine Carriers — a director for 22 years; Chairman for the past nine years; and Conference Chair for the last five events.

He also heads up the Port Metro Vancouver Nominating Committee.

Leo is involved in the ownership and management of two sport fishing lodges, one in the Chilcotin Region of British Columbia and the other located on Langara Island in the Queen Charlotte Islands.

Leo is one of that rare breed of mariners, having obtained both his Master’s papers as well as marine engineering qualifications.

His lifelong attraction to the ocean has led him and wife Judy to live aboard a float home on the Fraser River waters of Ladner Reach.

About North Arm Transportation

N

orth Arm Transportation is a comprehensive, full-service marine transportation company headquartered on the North Arm of the Fraser River with an office in Masset and loading facilities in Richmond on Mitchell Island.

Using the best practices, people, and equipment to operate a fleet of tugs and barges, they provide marine towing, fuel sales, and freight/equipment hauling services to all parts of the B.C. coast, from Vancouver to small, coastal communities.

As a family owned and operated business, North Arm Transportation is well established and backed by more than 50 years of expertise with a skilled workforce built on trust and service excellence.

They are dedicated to personal service and an unwavering focus on meeting customers’ needs. As a vital link in the supply chain, their expanded customer reach includes land-side deliv-

eries to Haidi Gwaii, and dozens of other coastal locations. The use of ramps on their barges allows them to gain access to areas and provide service to locations that are otherwise inaccessible.

North Arm Transportation operates two regulatory compliant, double-hull, freight and machinery combination barges servicing the coast. Both meet the prescribed standards by Lloyd’s Register and Transport Canada. Unique to Canada, they are the only company nationwide with Class A certification combination double-hull fuel and freight barges.

As a recognized leader in the industry, North Arm Transportation is uniquely positioned with their freight-handling yard and diverse fleet of vessels to support camping operations, small communities, and unique projects.

For more information, visit: www.northarm.bc.ca

Photo: From the archives of Dave Roels

The North Arm Wrestler with the Genesis and Pioneer, both double-hulled fuel/deck freight barges.

December 2017/January 2018 — BC Shipping News — 19

HISTORY LESSON

The history of whitewater rafting:

From necessity to adventure Photo: Dave Roels

By Lea Edgar Librarian & Archivist, Vancouver Maritime Museum

W

hitewater rafting had a slow evolution into the extreme sport it is today. Humans have used rudimentary rafts for thousands of years. Even imagery from the ancient Assyrians depicts rafts built with inflated animal skins. But these rafts were designed out of necessity, not amusement. It was the colonization, exploration, and thrill seekers of North America that truly inspired the sport of whitewater rafting.

Some date the first attempt at whitewater rafting back to 1811 when the first recorded attempt to navigate the Snake River in Wyoming was planned.

However, the river was deemed too dangerous and that rafting trip never took place. In the United States, a variety of rafts evolved over time. First came the pirogue which was a flat-bottomed boat. Another type of early raft used was a bateau which was made of planks on a frame. But the most advanced design of the early years was the keelboat. The famed Lewis and Clark expedition used this type of raft while travelling through Idaho and Oregon. Besides having a keel to steer with, it also had a streamlined

It was the colonization, exploration, and thrill seekers of North America that truly inspired the sport of whitewater rafting. hull and enough room to carry both people and supplies. But these designs did not tend to fare well in whitewater.

For example, in 1869, John W. Powell set out to navigate the Colorado River with four wooden boats. As his party went down the Grand Canyon, three of the four boats and four men were lost.

Whitewater rafting could not have become the sport it is today without the invention of the rubber raft. This invention is attributed to John Fremont and Horace H. Day and is thought to have been built in the 1840s. Prior to this, rubber vessels were experimented with by various navies. In addition, rubber pontoon bridges were tested over rivers in the United Kingdom and United States. But in 1842, John C. Fremont purchased a rubber raft from Horace Day and used it to survey the Platte River. Although it f lipped several times, Fremont was impressed by

Two men on a raft during flooding of the Fraser River. City of Vancouver Archives: AM54-S4-2-: CVA 371-463.

20 — BC Shipping News — December 2017/January 2018

its performance. In 1846, Horace Day received a patent for the raft which was essentially a sheet of India rubber cloth wrapped around several air-filled rubber cylinders to create a frame.

Also in the early 1840s, Peter Halkett of the Royal Navy designed a boat using “Macintosh cloth” which was a type of rubberized fabric. It was one oval-shaped cylinder that had four air compartments.

Many early Arctic explorers carried Halkett boats on their ships including Sir John Franklin and John Rae. By 1851, Charles Goodyear was leading the industry with his award-winning rubber rafts and the invention of vulcanized rubber. The late 1800s saw numerous uses of rubber pontoon bridges and a rubber raft called the Nonpareli even successfully crossed the Atlantic. By 1900, the advances in rubber manufacturing allowed for more durable and creative raft designs. In 1913, Albert Meyer introduced a new design he dubbed the “pneumatic boat.” These rafts were used by the German military in the First World War. Rubber inflatable rafts continued to be used by various militaries into the Second World War. Meanwhile, in 1929, Amos Burg navigated the Alaskan Bell and Porcupine rivers on a small inflatable boat. Then, in 1934, the inflatable kayak was designed

by Pierre Debroutelle. But it was in 1937 that Debroutelle designed the familiar u-shaped boat that would become known as a Zodiac. At this time, more and more explorers were using rubber rafts to navigate and ford rivers around the world.

It wasn’t until 1940 that the first commercial rafting trips took place. In 1940, Clyde Smith made a successful trip

VANCOUVER MARITIME MUSEUM through the Snake River Canyon. After the Second World War, Albert Quist, John Cross, and Malcom Ellington started guiding Boy Scouts through Glen Canyon. John D. Rockefeller Jr.’s resort hotel in Grand Teton National Park started offering rafting trips to its visitors in the late 1950s. The rafts were actually surplus army rafts and not custom-built river rafts. Sadly, the idea failed to attract visitors. In 1955, Georgie White Clark strapped together three Second World War-surplus bridge rafts to create one large raft, complete with an outboard motor, with which she took visitors through the Grand Canyon. She was the first woman to run a commercial business in the Grand Canyon, although her methods were controversial to say the least. She also had the first commercial rafting fatality.

Finally, in the 1960s, specialized whitewater rafting companies began doing business in earnest. By 1967, companies such as the Becker-Cooke Expeditions, Grand Canyon Youth Expeditions, and Western River Expeditions were well known. In the mid-1960s, companies

Whitewater rafting is now a mainstream popular sport thanks to earlier innovations. Photo courtesy of Michelle “Make Lemons” via Flickr.

moved away from using surplus pontoons and specialized whitewater inflatable boats began to be designed.

In 1972, whitewater rafting was included as an Olympic sport in Munich.

This act truly spread rafting’s popularity and lent it legitimacy as a sport. From there, the sport has grown significantly.

It has been used from people seeking

thrilling adventures, to scientists, to those seeking to conserve the natural environment. All of these activities are thanks to the versatility and durability of the rubber raft.

Lea Edgar started her position as Librarian and Archivist for the Vancouver Maritime Museum in 2013. She can be contacted at archives@vanmaritime.com.

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www.johnhorton.ca (604) 943-4399 / john@johnhorton.ca December 2017/January 2018 — BC Shipping News — 21

TUGS & BARGES

A new era for Island Tug and Barge

F

or the first time in over 50 years the Shields family has handed over the helm of their marine businesses to a new owner. Island Tug and Barge was acquired by Tidewater Transportation and Terminals in September this year. ITB Marine Group and its divisions of Island Tug and Island Subsea are now effectively owned by Stonepeak Infrastructure Partners, a New York-based private equity firm whose portfolio includes Tidewater and a number of other transportation, energy and power companies. During an exclusive interview with BC Shipping News, Tidewater President and CEO Bob Curcio describes the motivation behind the acquisition and what the future holds for one of the West Coast’s most recognizable company names.

Background

Tidewater itself has a long history in the Pacific Northwest. Dating back to 1932, when Lew Russell Sr. set the framework for Tidewater Barge Lines, the company has gone through a succession of acquisitions and today, encompasses four subsidiaries — Tidewater Barge Lines, Tidewater Terminal Company, Tidewater Environmental Services, and now Tidewater Canada, Inc. Tidewater Barge Lines handles grain, petroleum products, wood products, liquid and dry fertilizers, and all types of containerized freight with boats, personnel, and specialty barges that are capable of accommodating a wide range of other transportation needs over the full length of the Columbia-Snake River System.

Tidewater Terminal Company operates five strategically located terminals

“We found that they were very effective at managing their business and managing to the regulations. It fit well as a metrics-driven organization as we are at Tidewater.”

— two in Washington State, two in Oregon and one in Idaho. The Pasco operations (located on the Snake River) provide terminal services and storage for petroleum, fertilizer, chemicals and bio-fuel; the Vancouver Washington Terminal houses a container handling facility, diesel storage tanks, and marine equipment maintenance facilities; Boardman Terminal, located in the Port of Morrow in Oregon, houses a container facility equipped to handle both dry and refrigerated containers for import, export, solid waste transport, drop space for handling intermodals, and a loop track for handling grain unit train transloads to barge; the Umatilla Terminal, located on the Oregon-side of the Columbia River (just upstream of the McNary Dam), handles, stores and blends various fuels and fertilizers; and a Lewiston Idaho Terminal, which has liquids storage, truck racks, and fertilizer manufacturing facilities.

Tidewater Environmental Services, operating as West Coast Marine, provides a comprehensive range of services, including ocean-going vessel cleaning services, hazardous and non-hazardous marine and industrial services and waste transportation, throughout Oregon, Washington, Idaho and California.

Photo: Carolyn Matt

22 — BC Shipping News — December 2017/January 2018

Since 1996, ownership of Tidewater has fallen under various investment groups — first, an East Coast investment group, but later acquired by Endeavor Capital, and finally by Stonepeak Infrastructure Partners in December 2012. Stonepeak’s primary investment focus is on infrastructure assets with leading market positions in Energy, Power and Renewables, Transportation, Utilities and Water and Communications.

Bob Curcio was brought in as President and CEO in June 2013. Prior to joining Tidewater, he was the Senior Vice President, Subsea Systems Capital Projects for GE Oil & Gas and held previous senior management positions at companies including NATCO and Exxon Corporation.

Tidewater Canada, Inc.

Island Tug and Barge is the third acquisition of Tidewater Infrastructure Holdings, Inc. “We started looking at ITB in 2016 when it was part of a process put out by the Royal Bank of Canada,” said Curcio, noting a number of synergies between the two companies and the

Photo courtesy Nichols Marine Services

existing knowledge within Tidewater of the regulations involved in refined product transport. “It extends the reach of Tidewater operations on the West Coast to do more of what we already do, specifically, moving petroleum products. While Tidewater has been focused on operations on the Columbia-Snake River, ITB provides services to clients on Vancouver, Vancouver Island and the Puget Sound area.”

In addition, Curcio noted the tremendous management team that was already in place at ITB. “We found that they were very effective at managing their business and managing to the regulations. It fit well as a metrics-driven organization as we are at Tidewater.”

Curcio went on to say that “we consider this to be more of an infrastructure investment rather than just a towboat and barge business in that the infrastructure companies tend to have more contractual relationships with clients — that’s what ITB does, as does Tidewater.”

The purchase of ITB Marine by Tidewater encompassed 100 per cent of the shares of ITB, inclusive of the

The Island Raider, ITB’s new articulated tug and barge, will be ready for service by spring 2018.

refined product transport and the subsea business which includes the cable laying business and other subsea work (construction, repairs, maintenance, surveys, etc.). The sale did not include the assets of ITB’s Arctic business that supported Northern Transportation Company Ltd. While ITB may be the most recent acquisition for Tidewater Canada, Inc.,

it most likely won’t be the last. Curcio noted that Stonepeak’s investment fund stands at about US$10 billion and they are actively looking for other acquisitions that would further build on the company’s Canadian operations. “One of the benefits of being part of an equity firm is the great interest in growth,” he said. “At this point, Stonepeak has equity available

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TUGS & BARGES to provide for additional growth, either due to what happens as a result of projects like the Trans Mountain pipeline expansion from Edmonton to Vancouver, B.C., or through additional acquisitions. So we have the ability to access capital to grow the business with acquisitions that make sense, especially in relation to ITB’s existing footprint.”

Building on the synergy

Noting that both ITB and Tidewater are experienced in working in a highly regulated and highly audited business, Curcio saw opportunities for both teams to learn from each other in terms of best practices, environmental stewardship and efficiencies to “ensure we’re doing our best for our clients.” As previously noted, he saw a very capable management team at ITB and, while there is currently a search on for a new President to replace Hans de Visser, who will continue to work for the Shields’ family businesses, there are no plans for wholesale changes. “We consider this to be more of a soft integration,” Curcio said. “We’re not looking to change the ordinary course of

business. They’re very capable of running themselves and we want to maintain that approach.”

Curcio also saw the benefits of ITB’s experience in both Canada and the U.S. “ITB crosses the border to the Puget Sound area and have to meet all of the regulations in the U.S. as well as Canada, so ITB actually has a broader understanding of the net regulations required,” adding that while a lot of the regulations for compliance in the transport of refined products may be called something different between the two countries, they meet the same purpose.

ITB activity report

Also present during the interview with Curcio was Captain Ferdi van de Kuijlen, Vice-President, Operations for ITB. Looking at activity over the past year, van de Kuijlen noted that ITB was enjoying a “robust” 2017 with an upward trend in the vessel bunker business as well as subsea activities, especially in the fourth quarter of 2017. Curcio added that the subsea work was expected to remain strong throughout 2018.

The current excitement at ITB however is the highly anticipated new articulated tugs and converted articulated fuel barges (ATBs) that will be added to the fleet by the end of 2018. Justin Nichols with Nichols Marine Services was brought in during the acquisition to assess the build process and help with projected costs and associated timelines. Once the acquisition was complete, Tidewater kept him on to oversee the construction process as Director of New Construction.

“The first of the 25-metre tugs, which will be called the Island Raider, is currently about 80 per cent complete and will be ready for service by late spring 2018,” Nichols said when asked for an update. “The second tug, Island Regent, is about 40 per cent complete and will be ready before the end of 2018.”

Nichols further noted that, while there was some challenge to find trades personnel in the B.C. area because the marine industry is so busy, they’ve been fortunate to develop a full complement of crews for all trades. “We’ve assembled an experienced and seasoned crew that work extremely well together. There is great

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Image courtesy Nichols Marine Services

Artist’s rendering of the completed articulated tugs and barges currently under construction.

communication between the trades and a good system in place to ensure productivity and accountability.”

Adding that the new tugs will have Z-drives for propulsion, van de Kuijlen outlined a training program already underway for crew, including simulator training as well as hands-on practice with a model tug built by Ron Burchett.

Industry issues

As with most tug companies in B.C., ITB has had its share of challenges in finding skilled crew. Initiatives, such as that being planned by the Council of Marine Carriers to establish a program that would assist with apprenticeship training, keep van de Kuijlen optimistic that positive steps are in the works to address shortages (see the interview with Leo Stradiotti, Chairman of the CMC, on Page 12 for more details about the CMC’s new program).

Curcio advised that U.S. companies are more fortunate at present. “When we issue a request for new deckhands and apprentices, we’ll see about 100 applications so we’re not experiencing the same kind of problems as are seen in Canada,” he said.

Another issue facing companies on Vancouver’s waterfront looking to invest in infrastructure upgrades is the lengthy delays experienced in the permitting process. Prefacing his comments by noting the high regard both Tidewater and ITB share for environmental stewardship, Curcio noted that it’s very hard to get environmental permits to make changes to docks and other infrastructure. “Having said that, generally, it doesn’t impede our activities.”

The future looks bright

Over and above opportunities that might present themselves for new acquisitions in B.C., Curcio sees a number of potential projects in the Pacific Northwest that provide confidence for growth. Related to the Trans Mountain pipeline expansion project, Curcio sees ITB as being well positioned to take advantage of opportunities for competitively priced crude and refined product that will make its way back to the West Coast.

There is also some speculation in the future of LNG bunkering. “Eventually, there will be conversion over to LNG fuel with fleets over time and there will be a need for bunkering,” he

said. “We’re working with a company in the Port of Vancouver area to investigate LNG bunkering, but it’s a bit of a chicken and egg scenario. You can’t build the infrastructure until you have the fleet that will commit to offtake, and you can’t service the fleet until you have infrastructure.”

All in all, the future looks bright for ITB under the leadership of Tidewater. BCSN

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Generators: John Deere 4045 66 kW Pin system: Articouple FCR-35S with self-contained HPU December 2017/January 2018 — BC Shipping News — 25

TUGS & BARGES B.C. tug industry update

Lack of skilled labour a common issue

A

quick poll of tug companies in British Columbia finds many who are eagerly awaiting the Council of Marine Carriers’ recruitment/apprenticeship program which is currently in the planning stages. By far, finding skilled labour is the number one issue facing the industry. As described in the Industry Insight with Leo Stradiotti, Chairman of the CMC (see page 12), the program will be centrally administered by the Council to provide trainees with a wide range of experience on vessels of participating marine companies. For the company representatives we interviewed, the initiative is a welcome solution and can’t come soon enough.

In taking the pulse of the industry with our annual B.C. tug update, we find other common threads: the majority are enjoying a solid pace of business with a healthy mix of projects and many noted the forest product sector in particular as

One additional common thread that was especially heartening to see was the amount of optimism reported when forecasting for next year. doing quite well. One additional common thread that was especially heartening to see was the amount of optimism reported when forecasting for next year.

Here’s how the tug industry fared in 2017…

Amix Group

Tony Marra, Director of Sales for the Amix Group, reported that business has been “good and busy” on a variety of fronts, including infrastructure work and moving forest products. “Logs, lumber and chips have seen strong years and good markets,” he said. “And we’re seeing a lot of work related to infrastructure projects within a certain scope that fits

our heavy lift capabilities very well.”

With the increase in projects, Marra notes that they have added another Manitowoc 4600 crane to their service after being rebuilt — bringing the total cranes to seven. More towing capacity is also coming in the form of the Sea Warrior, currently at Arrow Marine to prepare her for getting back into service; and the Arctic Taglu, which has left service as a push tug for Seaspan and has joined Amix’s tow fleet. “We’ve basically doubled our tow vessel fleet in the last year,” Marra said.

This will bring Amix’s fleet up to five tugs, eighteen barges, two crane barges in addition to two crane-equipped log

Photos courtesy Amix Group

Amix Group is enjoying a good year for both their heavy lift and forest product towing capabilities.

26 — BC Shipping News — December 2017/January 2018

Photo: From the archives of Dave Roels

barges and a variety of project specific heavy equipment. With the new tugs, Amix has taken on more crew. While it was not without its challenges, Marra said they’ve been fortunate in being able to find some great people.

Looking at the coming year, Marra felt there was a reinvigoration of marine projects for which Amix’s services and experience were well suited. “Our capabilities extend beyond the waterside — for example, there is rail access to our Lower Mainland base of operations — and this adds to the services we can offer,” he said.

One area of growth that has also been keeping Amix busy is the salvage side of derelict vessels. Marra said Amix responds to requests to retrieve sunken or derelict vessels almost on a weekly basis. “We’re able to provide a lot of resources for projects like this. Not only do we retrieve the vessel but our services extend beyond that and we can process the vessel for recycling and disposal.”

Another project Marra is watching closely is the Patullo Bridge project, next to Amix’s base of operations. “A marine

The Fraser Navigator, one of Catherwood’s fleet of 15 tugs.

user group has been reviewing the project for some time now and, while there will be some impact on the marine flow in the area, we’re seeing a great opportunity to be able to provide services given our proximity and capabilities.”

Catherwood Towing

Always pleased with the consistent quality of work done by Sylte Shipyard, especially on the Sea Imp XI that was launched this past summer, Ernie Catherwood reported that they have three more keels laid up at the yard and are patiently awaiting their turn. “There

are three other vessels Sylte is building before ours so it will likely be about three years before they start which fits our own timeline well,” he said.

With a fleet of 15 tugs and three barges, Catherwood reported that the Sea Imp VIII is currently getting a major refit at Tom Mac Shipyards; the Fraser Navigator is at Arrow Marine for repairs to a nozzle; and the Pacific Tyee will be going in for a repower at the beginning of 2018.

“Activity this year was very similar to last year,” Catherwood said when asked about business. “With all the activity we’re seeing that requires tug services,

December 2017/January 2018 — BC Shipping News — 27

TUGS & BARGES market and that of the U.S. is the number of military personnel who have a discipline that makes training to specific company operations easier. “We’re not seeing that here.”

Hodder Tugboat

The HN Hodder will be going in for new engines soon.

we’re hoping to see a bump in sales next year.”

Commenting on the common issue all companies in today’s tug sector are experiencing, Catherwood said he is currently working with the Council of Marine Carriers on their new recruitment and apprenticeship program. “The program will hopefully generate some interest in the towboat industry,” he said. “Initiatives like visiting high schools to get young kids interested in apprenticeships is something much needed right now.”

And while Catherwood reported that the labour shortage isn’t impeding operations, “it’s certainly not helping.” He further noted that one of the differences between B.C.’s labour

New General Manager Tony Fadyeyev was pleased to provide a very positive report on the many transitions underway at Hodder Tugboat. Fleet wise, Tony’s top priority is vessel maintenance, as well, he is focussing on crew and office team building. And he is keeping existing customers happy while developing new business.

As for the HN Hodder, “she will be going in for brand new higher horse power engines in the near future. We’re just in the process of looking at which power pack to use, it will most likely be Mitsubishi.” Tony expects the project to take several months and, while she undergoes her re-fit, an outside vessel will be leased.

Hodder Tugboat also acquired the tug Pullaway a few months ago from Quality Towing. She is currently being worked on to “get it up to speed.” By the time this article goes to print, the vessel will already be out on the Fraser River towing logs. In addition, Tony reported that the Hodder fleet of water taxis will be taken out of the water one by one to prep and antifoul the bottoms as well as to polish the aluminum. Indeed, he expects the entire fleet will be fully upgraded by next year.

“We’ll be doing work on the hulls of our water taxis as well as our tugs which will include sandblasting and painting to i\ ensure the lifespan of the steel,” he said.

SYLTE SHIPYARD LTD.

Photo: BC Shipping News

20076 WHARF STREET MAPLE RIDGE, B.C. V2X 1A1

28 — BC Shipping News — December 2017/January 2018

PH. (604)465-5525 FAX: (604)465-3060 EMAIL: sylte@telus.net

TUGS & BARGES “Finding qualified people is a struggle.

That’s a common theme running through not just the marine industry but also the forestry industry and other sectors.”

Photo: From the archives of Dave Roels

Daryl Jones, Jones Marine Services has a spot booked at Sylte Shipyard in late 2018 for a sister ship to the David J.

When asked about business, Tony noted that work is steady with more work as well as new customers coming on the horizon. He note that Hodder’s log towing customers are their priority with dispatchers, boat crew, office and shore crew credited for their hard work in driving this business forward.

“We highly rely on our dispatchers’ exceptional time management, organization and quick decision-making as well as communication skills. Special thanks goes to our valued customers for their continued trust and great appreciation of our team’s efforts. Chris Hodder, who is still with us, continues to help grow our company.”

ITB Marine

After 50 years of operations under the Shields’ moniker, Island Tug and Island Subsea are now part of the ever-expanding Tidewater Transportation and Terminals, one of the largest U.S.-based inland tug and barge companies west of the Mississippi.

From current activities (“robust”) to forecasts for the future, including more Canadian acquisitions, Tidewater President Bob Curcio spoke with BC Shipping News about the “soft integration” of ITB Marine, the current state of the industry and what the future holds for Tidewater Canada. See page 20 for the full update.

Jones Marine Group Ltd.

Jones Marine Group enjoyed a year that was very similar to the activity seen in 2016, according to Darryl Jones. “Both lumber and logs have been fairly steady,” he said, “and if our customers are doing well, it means we’re doing well.” Jones expected 2018 to be a “decent” year as well, noting that strong activity for exports of logs to China and a diversified market for the coastal lumber industry should keep the impact of the softwood lumber tariff fight with the U.S. to a minimum, unlike the interior lumber market.

With a fleet of nine, including the new David J tractor tug launched from Sylte Shipyard in Maple Ridge last summer, Jones reported that they are looking to build its sister ship — another McIlwian design — by late 2018/early 2019. “We have booked a spot at Sylte,” he said, further noting that the new tug will have an additional 600hp, bringing its total power to 3,000 hp.

“Crewing is a constant challenge,” said Jones when asked about current issues. “Finding qualified people is a struggle. That’s a common theme running through not just the marine industry

but also the forestry industry and other sectors.” Despite the challenge, it’s not creating an obstacle to meeting current levels of work. “We like to promote from within,” he said. “People join as deckhands and learn the culture of the company so it’s easier than recruiting people from outside.”

North Arm Transportation

Similar comments on the need for a recruitment/apprenticeship program for skilled crew came from Leo Stradiotti with North Arm Transportation. As detailed in this month’s Industry Insight (see page 12), Stradiotti described the fuel and freight transportation as “great” over the past year and forecasting a bright future for the almost 80-year-old company.

Saam Smit Towage Canada

Representing Saam Smit Towage (SST), Captain John Armstrong was proud to report on their newest acquisitions to their Vancouver fleet which have been in full service since January 2017. “The ASD tug SST Salish at 22M with 5400 BHP and 68 TBP (tonnes of bollard pull) as well as the SST Salish which follows its sister the SST Capilano is a continuation of the

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December 2017/January 2018 — BC Shipping News — 29

TUGS & BARGES ...projects that should create growth are still waiting for green lights, be it financial, regulatory, political or market conditions steering the decisions. very successful SST Tiger Sun design by A.G. McIlwain.

With the two new ASD tugs being stationed in Vancouver SST has been able to re-locate two existing ASD tugs from Vancouver, the Smit Spirit at 3100 BHP to the Fraser River and the Smit Saba at 4900 BHP to Prince Rupert. “This has increased the power of our Vancouver ASD fleet to three 5400 BHP/65 TBP and one 6770 BHP/85 TBP while upping the power and tug efficiency in the River with two ASDs at 3100 BHP/39 TBP.” He further noted that adding the Satba in Prince Rupert has grown their ASD fleet there to five 4900 BHP/65 TBP tugs, “improving our capacity in Prince Rupert and meeting the demand at the recently expanded container terminal where we are seeing more of the larger 366-metre container ships.” In all three ports SST still maintains a lower powered fleet between 600 and 1800 BHP/7-25 TBP to assist

smaller ships and barges and provide line boat services.

Armstrong also reported on a busy refit and repair schedule with some major downtime in last 12 months but noted this “will clear up as we see the fleet bunching of five-year Class dry dock cycles open up a bit.” A top priority for Armstrong and SST includes continually updating plans and opportunities for fleet renewal and additions so that they are “always in place ready to be executed.”

When asked about trends in activity, Armstrong said that SST remains fairly steady with ship numbers constant but with ships increasing in size. “The larger ships generally require the same number of tugs, however the requests for the higher-powered tugs is becoming more regular and we see pressure to incorporate the higher-powered tugs into standard operating procedures set out by the various authorities.” In the longer

term, Armstrong noted that projects that should create growth are still waiting for green lights, be it financial, regulatory, political or market conditions steering the decisions.

One project that is moving ahead and being watched closely for new business is the G3 grain terminal on the North Shore. “No doubt that will allow the port to export more grain,” he said. “With the potential increase in post-Panamax ships, this expansion may only have a limited positive effect on tug activity.

Like other tug operators, a frequently raised issue discussed in detail at this year’s BC Towboat conference is the difficulty in finding enough new crew, particularly with the potential growth in the marine sector. “We currently find it challenging but not impossible to find certified crew at the entry level to backfill voids left by retirements and the small increase in activity levels over the years,” said Armstrong. “We have intern programs in both Prince Rupert and Vancouver that fit our operation which have helped to generate entry level personnel. And certified officers are being developed from within the company, however if any major expansion

Photo: From the archives of Dave Roels

30 — BC Shipping News — December 2017/January 2018

Samson Tugboats

In the past year, both of Samson Tugboat’s tugs — the Shuswap and the Kootenay — were put through Transport Canada quadrennial inspections at Allied Shipbuilders. “We can’t say enough about the support from Chuck Ko at Allied, as well as the inspectors from Transport Canada in their cooperation to ensure that the vessels were back working after only a few days in dry dock,” said Gordon Yahn with Samson.

For Yahn, the big issue of the day is the challenge of crewing. “We are losing one master early in the new year to the Fraser River pilots, and likely a second master to the pilots later in 2018,” he said, however considers it a mixed blessing.

“We are losing very good officers but at the same time it is like a feather in our cap that we are attracting and grooming fine professionals.” And while it may leave Samson in much the same position as other companies who are looking for qualified crew, Yahn felt that having a reputation as a company that produces highly qualified pilots will bring more quality, forward-thinking crew to their door. “While it is a challenge in the short term to fill the positions, it only helps in the long term to attract the right professionals to our ranks.”

One of the challenges that Yahn feels needs to be addressed is that the marine and waterfront sector is not terribly visible to young people looking at potential career paths. “Most of the people in our quiet tugboat industry are family or friends of existing employees. Very few employees walk in without some previous connection to someone already in our sector.”

One possible reason for this may be the heightened security since the

Photo: From the archives of Dave Roels

in the industry takes place a much more comprehensive industry wide program will be needed.” Since the conference, Armstrong reported on industry discussions with senior Transport Canada representatives and the idea seems to be getting some traction in the early stages.

“It will need input and co-operation from all stakeholders and very likely some government funding.”

With shipping in general being under financial stress, as seen with the end of Hanjin Shipping, Armstrong felt that pressure to seek more efficiencies, innovation and cost reductions will be the norm going forward.

Samson Tugboat’s Shuswap and Kootenay on the Fraser River.

International Ship and Port Facility Security (ISPS) Code was implemented in 2004. “That has restricted the general public from really getting a good view of marine waterfront operations,” he said, further noting that there seems to be a bit of “a disconnect” right now.

When asked about trends in activity, Yahn reported that he sees more structure to river operations with the new designation of the South Arm to MRA-4. “To paraphrase Captain Stephen Brown from West Pacific Marine — ‘Fraser River users have always played well together in the sandbox’ — which is very true,” Yahn said, further noting that “through necessity, the Fraser River users such as river pilots, Seaspan Ferries, dredgers, and tug and barge operators have always worked closely together and accommodated each other to ensure safe and efficient vessel operations.”

Another trend Yahn identified was that of the greater frequency of larger ships. “With ships measuring in the range of 294 metres, and more bulk carriers laden to 11+ metres of draft calling in the river, there have been some new operating parameters put forth in terms of tug package requirements, safe passage areas, etc. It makes sense that the same language is used in all areas.”

Rogue,” he said. “These vessels are settling nicely into our f leet and filling a much needed void in our portfolio for higher horsepower fuel-efficient tugboats.” Going forward, Reynolds noted that Seaspan will continue to look for opportunities to renew the f leet and responsibly scrap or retire assets beyond their economic life.

In terms of activity and trends, Reynolds noted that 2017 was “flat for us in most sectors.” He went on to say that “our customers in the forest industry looking for fibre supply were hit particularly hard with delays early in the year caused by snowpack, followed by shortages through the summer caused by a brutal fire season. This is going to be a tough winter as fibre is presently constricted because of low harvest rates.”

Reynolds is optimistic that there will be a modest recovery in 2018 but it can’t come soon enough. “Several of the major projects (energy and otherwise)

Seaspan Marine

With over 30 tugs and approximately 115 barges, Bart Reynolds, President, Seaspan Marine, reported that maintenance and repair on any given year will see about a dozen tugs and 25 barges docked for service. “In 2017, we replaced a couple of older tugs with the 2007-built 3600bhp Raider and December 2017/January 2018 — BC Shipping News — 31

TUGS & BARGES

Photo: From the archives of Dave Roels

Tymac Launch + Tug Services

The Seaspan Kestral, one of 30 tugs in the Seaspan fleet.

continue to remain on the sidelines or have been cancelled outright,” he said.

“We would really like to see a couple of the larger projects finally move forward in 2018.”

When asked about issues they face today, Reynolds responded much the same as all other tug companies in B.C. “Our biggest challenges in 2018 will be finding and developing licensed officers and the changing regulatory

environment. In particular, we feel the Pilotage Act is unnecessarily punitive to Canadian flagged vessels that regularly operate in B.C. waters and we would like to see the focus shift to the markedly higher-risk foreign flagged vessels.”

Regardless of the challenges, Reynolds notes that Seaspan will continue to stay focused on their primary goal of becoming a world-class operator by achieving an accident and injury free workplace.

32 — BC Shipping News — December 2017/January 2018

With six pilot launches, three tugs, seven barges and three double-tanker trucks, Tymac Launch + Tug Services is seeing a “steady” level of business according to President Captain Doug Towill.

“The cruise season was very successful for us,” he said. “We provided all of the cruise ships in Vancouver with waste, recyclables and sludge removal seamlessly and received very positive feedback from the cruise lines.” When asked about a forecast for next year’s cruise business, Towill indicated that, while the passenger count will grow, there are potentially slightly fewer ship calls expected.

“Albeit, they will be larger ships so it will likely be revenue neutral for us.”

The big news for Tymac is the move being considered toward incorporating helicopter services for pilots in partnership with Helijet. “Tymac will be a onestop-shop, the go-to solution provider for all agents, ship owners, pilots, surveyors and Transport Canada inspectors looking to get to a vessel,” he said. “We’ll have a central dispatch and whether the need is for a launch or a helicopter, we’ll be able to coordinate the trip.” He further

Photo: From the archives of Dave Roels

The Tymac Ranger, with barge and double-tanker truck, in tow in Vancouver Harbour.

noted that the professionalism and reliability behind Helijet’s services make them a great fit with Tymac’s own corporate culture.

While more efficient to use pilot launches for local trips, Towill said that helicopter service makes a lot of sense when moving pilots out to areas in the mid to long-range regions along the south coast, especially with the anticipated Kinder Morgan pipeline expansion project. “It will provide for a much quicker transit and hence, will save piloting hours that would otherwise be spent on travelling, bringing overall costs down for agents and owners.”

Should all go according to plan, the service is expected to start sometime by the end of 2017/beginning of 2018.

Another piece of news related to Tymac is the announcement made in early November of parent company Tidal Transport’s joint venture with Western Stevedoring, who purchased the shares of Ron Brinkhurst’s partners. While nothing changes in terms of operations or management, and owner Ron remains in control, Towill sees the addition of a strong partner like Western Stevedoring as having only positive benefits for the company.

Always looking for new opportunities, new areas of operations and new services, Towill reported that Tymac has been working with local Transport Canada representatives on an enhanced service to the industry — “one which should enhance our services to ship owners and the Chamber of Shipping,” he added without spoiling the secret of a future announcement.

And because the issue was a prevalent topic of concern for all companies interviewed for the B.C. tug update, Towill was asked if he was running into the

common problem of finding skilled crew.

“Not really,” he said. “We’re fortunate in that the type of business we run — and how we operate — tends to attract people who are looking for full time or casual work, so we have been able to get

qualified people.” He further noted however that staffing problems are being seen throughout the industry and not just for the tug sector. “We certainly see it everywhere else we go. The lack of manpower is a major challenge.” BCSN

December 2017/January 2018 — BC Shipping News — 33

TUG DESIGN

New tug designs for river and near coastal work

By Mark Mulligan, P.Eng., FEC, Capilano Maritime Design Ltd.

T

here are a large number of small tugs used for river and near coastal work on the West Coast and it is a well-known fact that many of the vessels in British Columbia’s fleet in this category have reached retirement age or better and need to be replaced.

Many of these older but hardworking vessels cannot meet modern stability standards, either intact or damaged, nor modern tow line stability requirements.

A small number have had sponsons or bustles added to allow safe ongoing operation but this is usually an expensive refit and the boat still gets older. For potential new construction, North Vancouver’s Capilano Maritime Design Ltd. has produced a number of designs ranging in length from nine metres to 21 metres, with power ranging from 500BHP (375kw) to 2,200BHP (1,600kw) and with bollard pulls of between seven and 30 tonnes.

These tugs would be conventionally propelled using twin marine diesels driving fixed pitched propellers set in highefficiency nozzles. Steering would be via two or three high lift rudders, integral with each nozzle, and the hulls would be flush decked, with twin chines, and relatively long shark fin skegs for enhanced directional stability.

The boats would make use of heavy fendering all around, with concentrations at the bow and stern, to allow damage-free barge pushing and towing as well as rigorous yarding work. Half-pipe fenders would be fitted at the waterline

A 19m version of a Capilano-developed tug with a low air draft and substantial fendering for upper river service. (Credit: Capilano Maritime Design Ltd.) and at the bow flares to protect the hull from log and barge contacts. Internally, there would be four transverse watertight bulkheads which would divide the hull into a steering gear compartment, stores and main fuel tanks, engine room, and accommodations and forepeak.

Expanded freeboard at the stern, and increased beam, would give the boat the ability to stop a moving barge without the possibility that the aft deck would start to submerge. Bridge design would incorporate a galley and crew lounge, with amenities for near coastal voyages if needed, while a standard tow winch with spooling gear, tow pins and stern roller would be fitted aft.

Accommodation could vary depending upon vessel size and intended

employment, with simple berth/settees suitable for smaller boats while two berth cabins with full washrooms could be fitted on larger tugs.

The Capilano series meets and exceeds all modern Canadian and international stability standards, including tow line stability requirements called for by class (for example, BV and Lloyds).

These require a tug to remain stable when under full power, the rudders hard over and the tow line at 90 degrees over the beam. The ability of the Capilano designs to meet and exceed these standards while handling barges and other craft in close quarters and in f lowing rivers is due mainly to increased beam and freeboard, with length-to-beam ratios of 2.4 to 2.5, utilized along with generous freeboards suiting vessel length. In addition, the longer tugs in the series (15m and above) are all one compartment subdivision standard, meaning that any one compartment, including the engine room or lazarette, could be f looded and the vessel would still stay af loat.

Mark J. Mulligan P.Eng., FEC is Executive Chairman and Senior Naval Architect at Capilano Maritime Design Ltd. Naval Architects and Marine Engineers in North Vancouver.

34 — BC Shipping News — December 2017/January 2018

PILOTAGE WAIVERS

Tug industry deals with stricter waiver criteria

I

n the early hours of October 13, 2016, the Nathan E. Stewart (NES) and its barge, the DBL-55, ran aground at Edge Reef on Athlone Island, at the mouth of Gale Creek in Seaforth Channel, British Columbia, spilling an estimated 28,400 gallons of diesel and 592 gallons of lubricants. The incident prompted a swift public backlash with criticism aimed at both the spill response and the regulations that allowed for an American tug to sink in Canadian waters.

“The fallout was immediate,” said Kevin Obermeyer, President of the Pacific Pilotage Authority (PPA).

“From spill response efforts to pilotage regulations, everything came under the microscope.” For the PPA, the issue that came to the forefront was the pilotage waiver system. From immediate actions taken during the days that followed the incident, to risk assessments and a new Standard of Care, the consequences of the NES incident are still being felt. As for the impact on the B.C. tug industry and whether the changes will help avoid future incidents and if so, at what cost, only time will tell.

The waiver system

One of the issues that came under great scrutiny immediately following the grounding was the Pilotage Act’s Waiver System. Weighing less than 10,000 gross tons and meeting the additional criteria set out within the PPA’s regulations (e.g., appropriate certificates of competency held by the master, days of service, and time spent as a person in charge of the deck watch), the NES and DBL-55 had such a waiver in place.

Initially, Canadian-manned vessels were exempt from the Pilotage Act under the Pacific Pilotage Regulations, with U.S. vessels over 350 gross tons and less than 10,000 gross tons eligible for a “waiver,” allowing them to operate in Canadian waters without the compulsory pilotage requirement. In 2003, all Canadian vessels were also placed into the waiver system as a result of a judicial decision that noted that exemptions by flag were ultra vires.

From immediate actions taken during the days that followed the incident, to risk assessments and a new Standard of Care, the consequences of the NES incident are still being felt.

“Before the NES incident, the Pacific Pilotage Authority took a light-handed approach to enforcement,” Obermeyer noted. “Based on the declarations of compliance by companies, we believed that the companies were complying and as a result there were very few audits of the tug and tow companies.”

That changed within days of the NES sinking.

Immediate ramifications

On October 16, 2016, the PPA revoked all of Kirby’s pilotage exemptions.

On October 24, the PPA announced interim measures regarding waiver exemptions for ships and ships transporting petroleum cargo products.

While ships over 350 gross tons but under 10,000 gross tons (mostly tugs and barges) were still granted waivers if the operator met certain conditions, effective immediately, every ship holding a waiver entering a compulsory pilotage area was now required to notify the PPA and provide a list of the waiver holders’ names on board that vessel when it entered Canadian waters. In addition, every ship now must have two people on the bridge at all times, one of whom must be the waiver holder; every ship is subject to random checks by the PPA; and every ship could be asked to supply the PPA with log extracts to indicate who was on the bridge at a specific time.

The new measures also required that the master be on the bridge during transits in a number of areas, including Vancouver Harbour; the Fraser River; Seymour Narrows; Race and Current passage; Blackney Pass, Weynton Pass and Broughton Pass; Bella Bella; Boat Bluff; and Grenville Channel from Lowe Inlet to Morning Reef.

The PPA advisory further noted that: • Additional route restrictions (subject

Kevin Obermeyer, President, Pacific Pilotage Authority

to consultations with affected industry stakeholders) will also be put in place for all vessels transporting petroleum products through the compulsory pilotage areas. These restrictions will not apply to vessels delivering fuel to remote locations and communities on the B.C. coast.

• The northern section of the inside passage is off limits (Grenville Channel, Princess Royal Channel, Finlayson Channel, Seaforth Channel, Lama Pass and Fitzhugh Channel).

• Vessels transporting petroleum products are to follow a route between the Mainland and Haida Gwaii after leaving Gordon Channel at the north east corner of Vancouver Island.

• In adverse weather conditions and after clearance with vessel traffic, the vessel can proceed through Laredo and Principe by entering via Laredo Sound or Browning Entrance.

December 2017/January 2018 — BC Shipping News — 35

PILOTAGE WAIVERS Background on the Nathan E. Stewart grounding

T

he Nathan E. Stewart was a twin-screw pusher tug with dimensions of 30.4 metres in length, 9.75 metres in width and a depth of 4.18 metres. The barge, DBL-55 is an OPA-90 compliant oil barge, 91.44 metres in length, a width of 23.77 metres and a depth of 7.32 metres. Together, at a weight of roughly 5,000 gross tons, the vessels formed an articulated tug and barge unit, connected via a coupling system allowing the tug and barge to pitch independently of each other but roll and yaw as one unit.

The NES is owned by the Kirby Corporation, operating the largest inland and offshore marine barge fleets in the U.S. — transporting bulk liquid products throughout the Mississippi River System, on the Gulf Intracoastal Waterway, along all three U.S. coasts and in Alaska and Hawaii. The Pacific Division of Kirby Offshore Marine operates vessels that trade between San Diego, California, and Barrow, Alaska. The Pacific Division fleet consists of tank barges that can carry between 26,000 to 193,000 barrels and tugs that have between 2,000 to 11,000 horsepower.

On a route it had taken frequently — roughly every 10 to 14 days for five or six years — to deliver bulk fuel to Alaska, the NES was pushing the empty barge from Ketchikan, Alaska, southward along the Inside Passage at the time of the incident.

The grounding of the NES took place within the Heiltsuk First Nations territory. Edge Reef on Athlone Island is at the mouth of Gale Creek (about 11.5 nautical miles west of Bella Bella) and is the site of the majority of Heiltsuk’s manila clam commercial harvest. An investigation report commissioned by the Heiltsuk Tribal Council and released in March 2017, further noted that the affected area is also a significant habitat for an endangered species, the northern abalone. Commercial harvests in the affected area also include red sea urchin, sea cucumber, salmon, and herring spawn on kelp (“SOK”). The kelp canopy in the affected area is habitat for sea otters and is harvested to provide kelp for FSC and commercial SOK harvests throughout Heiltsuk territory.

In terms of the incident itself, full details can be found in numerous reports but for the purpose of this article (noting that a Transportation Safety Board report is still to provide the final determination of the cause), it is generally agreed that, shortly before 0100 hours on October 13, 2016, the NES missed at least one course change eastward into Seaforth Channel. As a result, the NES headed off course towards Gale Creek. Just after 0100 hours, the barge ran aground at Edge Reef. At the time, the weather was moderate rain and winds of 10 knots. It was estimated that the NES was travelling at seven knots when the incident occurred. Although the barge ran aground shortly after 0100 hours, the NES was reported to have run aground at about 0200 hours. By 0930 hours, the NES, with its fuel tanks having been breached and taking on water in the bilge, began to sink.

November 14, 2017: Nathan E. Stewart is lifted away one month following the grounding. Photo: Courtesy Kyle Artelle, Heiltsuk First Nations.

36 — BC Shipping News — December 2017/January 2018

• A five-day implementation period will apply to vessels carrying petroleum that are subject to these additional route restrictions and are already in, or in transit to, these areas.

Risk assessment

Following the interim measures, the PPA undertook a study to determine what mitigation of risk had been achieved by the changes and what residual risks, or unintended consequences, of the changes required further mitigation. “The study included broad engagement and consultation with stakeholders,” Obermeyer said. “We examined the marine occurrence record from the Transportation Safety Board as well as traffic patterns and considered the risks — causes, outcomes (including probability and consequence) and identification of the issues that required a solution. The study also ranked various mitigation measures and asked questions such as what is possible; what is reasonable; and what is effective.”

Part of the risk assessment included a survey of 61 tug companies who raised the following concerns regarding the interim measures: • Extra manning costs • Accommodation limitations on small tugs • Hours of rest requirements (master on the bridge) • Consistent definitions (confined waters, oil cargoes) • Unintended increase in risk: adverse weather in Hecate Strait • Level playing field with regard to waiver rules • Companies “flying under the radar” Additional work done within the risk assessment included a deliberate and structured approach to ranking problems and mitigation measures.

In the end, the risk assessment made 15 recommendations on such criteria as tonnage, geographical areas, basic experience, specific experience, reporting, manning regulations and safety management practices. A key recommendation of the assessment was that, rather than formal regulations, a “Standard of Care” be developed to allow for greater flexibility and faster implementation.

Standard of Care

On September 15, 2017, the PPA released the new Pilotage Waiver Standard of Care document. “This was

PILOTAGE WAIVERS the product of participation in the risk assessment process and included both U.S. and Canadian companies along with government agencies and members of the community at large,” Obermeyer said.

The Standard provides not just greater details and definitions of waiver criteria but also new, stricter measures. The full text of the Standard of Care is available on the PPA’s website (ppa.gc.ca/text/ waivers-e.html) but to highlight just a few of the new requirements: • Six new zones for the purpose of waivers are established: two on the Fraser River (with the New Westminster Bridge as the demarcation line); the Second Narrows; Race Rocks to Seymour Narrows; Seymour Narrows to Pine Island and West Coast Vancouver Island west of Race Rocks; Central and North Coast.

These zones are distinct from the five areas already existing within the PPA Regulations.

• In addition to requirements for providing documentary evidence of individual navigational experience, there are requirements for more experience

specific to the new zones.

• All vessels operating under a waiver must be fitted with and operating a Bridge Navigational Watch Alarms System set to (at most) 10-minute intervals; and all vessels operating under a waiver must be fitted with and transmitting on Class A AIS. (These requirements do not apply to 12-hour shift boats operating with two men constantly present.)

• Regarding watchkeeping in confined waters, additional measures are required for confined waters of the Inside Passage or West Coast of Vancouver Island, including two people on the bridge for all confined waters; two people on the bridge in conditions of restricted visibility; and the master must be on the bridge for transits of First Narrows, Second Narrows, Fraser River (only Sand Heads to Steveston Island, and passing New Westminster Railway Bridge), Seymour Narrows, Blackney and Weynton Passages, Broughton Pass, Lama Pass, Boat Bluff or Heikish Narrows, Princess Royal

The Transportation Safety Board Marine Occurrence record for the past 10 years. While incidents have generally decreased, groundings continue to be the most predominant issue.

December 2017/January 2018 — BC Shipping News — 37

PILOTAGE WAIVERS ...the increased measures are timely responses to the increased scrutiny of the shipping industry, especially when it comes to the movement of petroleum products.

Channel, Grenville Channel, Principe Channel.

Some exemptions or “relaxation of the requirement” exist to these new rules, such as those vessels operating solely within the established limits of a port, or to vessels towing logs; the two-man watch requirement is considered to have been met if two people are on watch and the second person leaves the bridge for other duties for periods no longer than 10 minutes at a time.

• No-go areas have been established for vessels carrying or pushing/towing oil cargoes, including FitzHugh Sound, Lama Pass, Seaforth Channel, Boat

Bluff and Heikish Narrows, Princess Royal Channel, Grenville Channel, Laredo Sound and Principe Channel.

The Standard does outline practical applications where this rule would not apply (for example, vessels delivering petroleum products to remote locations along the B.C. coast).

• New reporting requirements call for waivered vessels to advise either the PPA or Marine Communications and Traffic Services when they enter and depart B.C.’s compulsory pilotage areas.

• PPA can, by way of random checks or co-operative boardings

by Transport Canada inspectors, RCMP or Canadian Coast Guard officers, request verification of waiver conditions.

• While not mandatory, waivered vessels are “encouraged” to adopt a recognized Safety Management System.

• The requirement to renew waivers annually can be relaxed to a bi-annual requirement if the company meets approved conditions such as having an SMS in place or having a clean waiver or a clean navigational safety record for the preceding five years.

The Standard of Care became effective as soon as it was released in September, 2017. Requirements for the installation of equipment and changes to qualifying experience for waivers will take effect with applications for renewal of waivers for January 2020. Approved waiver holders before that date will be grandfathered.

What next?

The Council of Marine Carriers is “paying very close attention” to developments on the waiver system, said CMC Chairman Leo Stradiotti to BC Shipping News (see page 15). “There have been significant changes to the process of obtaining a waiver, but the jury is still out on whether or not those changes will realize an improvement in the system.” For the CMC, interest is currently focused on the Pilotage Act review.

On May 31, 2017, the Federal Government announced a review of the Pilotage Act, led by Marc Grégoire, former Commissioner of the Canadian Coast Guard. With the goal of modernizing the Act, the review is investigating such topics as governance, safety, labour models, tariff setting process, economic and public policy considerations, and emerging issues such as pilotage in the North.

Stakeholders had until the end of October to provide comments and, while summaries of consultations will be published in the spring/summer 2018, the date for a final report has not yet been set.

According to Obermeyer, the increased measures are timely responses to the increased scrutiny of the shipping industry, especially when it comes to the movement of petroleum products. But, “regardless of this heightened awareness, if there are measures we can take to increase safety and avoid another incident like the Nathan E. Stewart, then we need to take those steps.” BCSN 38 — BC Shipping News — December 2017/January 2018

LEGAL AFFAIRS

Proposed Oceans Act amendments focus on environmental protection and enforcement

By David K. Jones Bernard LLP, Vancouver

E

arlier this year the Federal Government introduced Bill C-55, An Act to Amend the Oceans Act and the Canadian Petroleum Resources Act. The proposed amendments include environmental protection provisions to allow the government to more quickly designate an area as a marine protected area. The amendments also significantly increase the level of fines, strengthen the enforcement provisions of the Act, and add offences specifically relating to ships.

Oceans Act

The existing Oceans Act has two major components: It defines Canada’s offshore maritime zones such as the territorial sea, the contiguous zone, the economic exclusion zone and the continental shelf.

It provides for the development and implementation of a national strategy for the management of Canada’s estuaries and coastal and marine waters. A key component of that strategy is the power to designate “marine protected areas” for special protection of marine resources such as commercial and non-commercial

The amendments significantly increase the level of fines, strengthen the enforcement provisions of the Act, and add offences specifically relating to ships. fisheries, marine mammals and their habitats; endangered or threatened marine species and their habitats; unique habitats and areas of high biodiversity.

Examples of marine protected areas off Canada’s Pacific coast are the Bowie Seamount Marine Protected Area, 180 kilometres west of Haida Gwaii, an underwater volcano which supports an ecologically rich marine area; the Endeavour Hydrothermal Vents, 250 kilometres west of Vancouver Island, which is also an area of rich marine biodiversity; and the very recently designated Hecate Strait and Queen Charlotte Sound Glass Sponge Reefs Marine Protected Areas.

Environmental protection

One important proposed amendment in Bill C-55 authorizes the Minister to order an “Interim Marine Protection Area,” with a five-year time limitation to

freeze the level of human activity in the area. The intent of the amendments is to provide interim protection pending studies, consultations and risk assessments for the development of a more detailed and more permanent regulation to protect the region as a formally designated marine protection area.

Enforcement

A second, very significant aspect of Bill C-55 that could have serious consequences for ships and their owners and operators accused of offences under the Act is the expansion of the enforcement provisions.

These amendments include new references to offences committed by ships, and higher fines including significant minimum fines. The amendments also refer to the potential personal liability of any director, officer, agent or mandatary of a ship-owning corporation, or any owner, operator, master or chief engineer of the

The amendments to the Oceans Act include fines that may be assessed as if each separate animal, plant, organism or object was the subject of a separate offence. Fines are set for a range of $100,000 to $4 million!

December 2017/January 2018 — BC Shipping News — 39

LEGAL AFFAIRS ship who directed, authorized, assented to, acquiesced in or participated in the commission of the offence. For a second offence of a more serious nature, the fines are even higher, up to a maximum $12 million in the case of a ship.

These enforcement measures apply to the prohibited activities in marine protected areas. The prohibited activities can vary according to the specific area, but generally include any activity that disturbs, damages, destroys or removes any living marine organism or any part of its habitat.

Sentencing

The potential new level of fines for an individual for a first offence ranges from a minimum of $5,000 to a maximum of $300,000. For a ship of 7,500 tonnes deadweight or more, the range is a minimum of $100,000 and a maximum of $4 million.

An existing provision of the Oceans Act that takes on increased significance with the higher level fines provides that if a person is convicted of an offence involving more than one animal, plant, other organism or object, the fine imposed may be assessed as if each separate animal, plant, organism or object was the subject of a separate offence. As a result, if a person is found guilty of damaging 10 animals, plants, organisms or objects, the fine could be calculated at 10 times

the fine assessed for a single offence.

Woe to the person prosecuted for damaging a plankton colony!

Sentencing principles and aggravating factors

Sentencing principles traditionally considered by a Court in environmental cases include the level of culpability of the accused; any prior record; acceptance of responsibility; damage or harm to the environment; and deterrence.

Bill C-55 significantly expands these principles by listing “aggravating factors,” the presence of which are intended to provide reasons for a Court to increase the level of the fine. If there are aggravating factors and the Court does not increase the fine, the Court is required to provide reasons why the fine was not increased. The aggravating factors are summarized as follows: (a) damage or risk of damage to any marine resource, habitat or ecosystem; (b) damage or risk of damage to any unique, rare, particularly important or vulnerable marine resource, habitat or ecosystem; (c) damage is extensive, persistent or irreparable; (d) the offence was intentional or reckless; (e) the accused had the financial means to avoid the offence, but did not take reasonable steps to avoid it;

(f) the accused increased revenue or decreased costs from the offence; (g) the accused committed the offence despite a warning by an officer; (h) the accused has a history of noncompliance; and (i) the accused attempted to conceal the offence; or failed to take prompt action to prevent, mitigate or remediate its effects; or failed to take prompt action to reduce the risk of committing similar offences in the future.

Loss of “use value” and “nonuse” value

A further expansion of aggravated damages is the Bill’s reference to damage including “loss of use value” and “nonuse value” for the first three aggravating factors (a) – (c) above.

“Use values” and “non-use values” are relatively new concepts in Canadian environmental matters. They are described by one Canadian government website as follows: Use values are associated with direct use of the environment such as fishing and swimming in a lake, hiking in a forest — or commercial uses such as logging or farming. Non-use values are related to the knowledge of the continued existence of the environment (existence values), or the need to leave environmental resources to future generations (bequest values).

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LEGAL AFFAIRS The assessment of use values and nonuse values is an attempt to determine a monetary value for the damage to, or loss of an environmental feature. Calculating these values is controversial, quantitatively difficult and subjective. For example, one method used is to survey members of the public to ask them what value they would place on, as an example, the existence of marine mammals such as sea lions in a specific location, and what they would be willing to pay for the sea lions to be there. A monetary value for that environmental feature is then assessed from the survey and this could be considered by the Court in determining the appropriate monetary penalty for the commission of the offence.

Due diligence defence

Environmental offences are typically known as regulatory offences which serve to protect the public interest in a clean environment. Such offences are generally considered strict liability offences, meaning the prosecutor does not need to prove the accused intended to commit the offence. If the prosecutor can prove

...if a ship is prosecuted, only the master or any other person onboard is entitled to attempt to establish their due diligence. the accused did the act of the offence, the accused will be found guilty unless they can prove a due diligence defence, meaning that the accused took reasonable efforts to avoid the commission of the offence.

In Bill C-55, a significant change in the due diligence defence is that the opportunity to prove the defence is restricted in the case of ships. The due diligence defence is recognized in the Bill, but if a ship is prosecuted, only the master or any other person onboard is entitled to attempt to establish their due diligence.

The ship owner and any director, officer, agent or mandatary of a ship-owning corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence would be barred from attempting to prove their due diligence despite having taken reasonable efforts to avoid the incident, and they could still be convicted.

Conclusion

The amendments to the Oceans Act contemplated by Bill C-55 strengthen the ability of the government to protect sensitive marine species and their habitat pending the area’s official designation as a marine protected area by regulation. Bill C-55 also strengthens the enforcement tools available to prosecute offenders alleged to be damaging protected areas; however, it will be interesting to see how some of the tools are used in practice and interpreted by the courts, particularly the limiting of the due diligence defence to those onboard a vessel, excluding those ashore; and the assessment of a penalty based in part on environmental use values and non-use values, a somewhat controversial and relatively untested concept in Canada.

David Jones is a lawyer with Bernard LLP and can be reached at Jones@bernardllp.ca

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www.topliftna.com December 2017/January 2018 — BC Shipping News — 41

SHIPPING & TERMINALS

First potash shipment a success

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n late September, the first large rail transport with a total of 122 rail cars from the Bethune mine in Saskatchewan arrived at K+S Potash Canada’s (KSPC) potash handling and storage facility at Pacific Coast Terminals in Port Moody, B.C. The almost two-kilometre-long unit train was loaded with about 13,000 tonnes of MOP standard potash and was pulled by four Canadian Pacific (CP) locomotives. The 1,800-kilometre-long route through the Rocky Mountains took three days. Since the end of July, several smaller trains have already transported the potash produced from Bethune to Vancouver.

“With this first major rail transport we have reached another milestone,” says Dr. Burkhard Lohr, Chairman of the Board of Executive Directors of K+S Aktiengesellschaft. “As planned we will have capacity to produce up to two million tonnes at the Bethune mine annually by the end of the year.”

The arrival of the first unit train also marked a significant milestone for Canadian Pacific. CP had connected the Bethune mine to the existing rail network with a new, 30-kilometre-long link. For

“With the departure of the first ship ... we are experiencing a further important milestone and, at the same time, witnessing the success of our many years of work.

CP, this was the largest rail infrastructure project since the mid-1980s.

“We are incredibly proud to serve K+S Potash Canada’s Bethune mine,” said John Brooks, CP’s Chief Marketing Officer and Senior Vice-President. “From origin to destination, we look forward to delivering for K+S and its international customers for years to come, and commit to doing so safely and efficiently.”

Working with Pacific Basin Shipping (Canada) Ltd., KSPC engaged the Daiwan Champion for the first load.

“This project has been in the works since 2012 and it is a pleasure to assist KSPC in ensuring that the first potash shipment out of Pacific Coast Terminals was a success,” said Peter Amat, General Manager for Pacific Basin in Vancouver.

Considering the shipment a major milestone, Wade Leslie, Vice President and General Manager of Pacific Coast Terminals, noted that the loading of the first vessel went extremely well. “As with any major project, there are obviously

refinements to make on the systems, but I consider it an unqualified success. We are looking forward to more vessels that are already scheduled,” he said.

The Daiwan Champion was loaded with 30,000 tonnes of potash before departing to supply customers in Asia.

“With the launch of production and the commissioning of the new storage and transshipment facilities, we have now made a decisive step forward: we have started to supply the market with products from our new potash plant,” said Dr. Lohr. “We will also work consistently on proceeding with the next stage in the project, the ramping up of technical capacity to two million tonnes by the end of the year.”

Dr. Ulrich Lamp, President and CEO of KSPC, stressed that, “With the departure of the first ship carrying potash from Bethune, we are experiencing a further important milestone and, at the same time, witnessing the success of our many years of work. The entire team

Photo: BC Shipping News

42 — BC Shipping News — December 2017/January 2018

SHIPPING & TERMINALS

Top 100 employer

Some additional news that was welcomed by K+S Potash Canada (KSPC) was the recognizion of the company as one of Canada’s Top 100 Employers for 2018. The competition reviewed over 7,500 applications from employers across the country.

“K+S Potash Canada is proud to receive this prestigious designation,” said Dr. Lamp. “We have worked hard to establish ourselves in Canada over the last five years, and part of that was building our great team. It is wonderful to be recognized for providing an exceptional workplace for our employees. We know that their dedication has been key to our success.”

“Since 2012, when KSPC broke ground on their Bethune mine (formerly the Legacy Project) near Moose Jaw Saskatchewan, “KSPC has grown from an organization of a dozen people to nearly 450,” said Maryann Deutscher, Senior Manager of Human Resources, KSPC. “The KSPC team is proud to be part of a great company and an innovative culture where we care about each other like a family. We have an amazing team that continually goes above and beyond, and this award recognizes that.”

Canada’s Top 100 Employers project is a national competition to determine which employers lead their industries

Photo: BC Shipping News

has been working intensively toward this moment and has displayed a fantastic team effort!”

Over the past few months, since the launch of production in June, Bethune mine has made impressive progress.

Starting at the end of July, the first, smaller volumes of potash were shipped by rail to Port Moody; in August, KSPC and PCT opened the modern and highperformance potash handling and storage facility at Port Moody; and at the end of September, a first unit train consisting of 122 railcars brought 13,000 tonnes of standard potash to the port.

KSPC’s potash handling and storage facility can receive trains carrying up to 18,000 tonnes of product, offer storage for 160,000 tonnes of potash and can dispatch ships carrying 70,000 tonnes from its own quay. From this facility, KSPC can supply the markets of Asia and South America from Bethune mine in a way that is particularly advantageous in terms of logistics.

The Daiwan Champion at Pacific Coast Terminals.

in offering exceptional workplaces for their employees. Employers are evaluated by the editors of Canada’s Top 100 Employers using eight criteria, such as physical workplace; work atmosphere; health, financial and family benefits; vacation benefits; employee communications; performance management; training

and skills development; and community involvement. Employers are compared to other organizations in their field to determine which offers the most progressive and forward-thinking programs.

KSPC has been honoured to be one of Saskatchewan’s Top Employers every year since 2014.

December 2017/January 2018 — BC Shipping News — 43

EXERCISE SALISH SEA

The many benefits of practice

W

ith 27 organizations and seven First Nations participating, “Exercise Salish Sea” stands as the largest maritime disaster exercise ever organized on Canada’s West Coast. Over two days in late October, the Canadian Armed Forces – Joint Task Force Pacific, the Canadian Coast Guard, the Department of National Defence and the Joint Rescue Coordination Centre coordinated search and rescue operations in a large-scale, on-water exercise, followed by environmental response operations. Using BC Ferries’ Coastal Renaissance as the site of a simulated fire just east of Salt Spring Island, the many agencies involved walked away with valuable lessons learned, new relationships, and a new appreciation for what it will take to effectively respond to an emergency on the water.

...the many agencies involved walked away with valuable lessons learned, new relationships, and a new appreciation for what it will take to effectively respond to an emergency.

The scenarios

On October 25, the Coastal Renaissance caught fire and sat disabled in the Strait of Georgia. Passengers and crew — with varying injuries — were required to immediately evacuate the ferry. Response vessels were then dispatched to transfer evacuees to shore (on Salt Spring Island) where they could be assessed and cared for by BC Ambulance Service paramedics. “This is probably as complex a response as I’ve ever seen,” said Rear Admiral Roger Girouard (ret’d), Assistant Commissioner, Western Region, Canadian Coast Guard.

On October 26, with the CCGS Bartlett (standing in as the ferry), experienced an environmental disaster which required spill response operations including an Incident Command Post set up and managed by the Canadian Coast Guard.

The partners

The opportunity for maritime organizations to train together for a maritime emergency is rare, making this exercise all the more notable for the number of government and non-government agencies involved. “The exercise was designed

All photos courtesy of the Canadian Coast Guard and the Canadian Armed Forces

Day One of Exercise Salish Sea saw the simulation of a mass casualty evacuation.

44 — BC Shipping News — December 2017/January 2018

TRAINING & PREPAREDNESS to help agencies and responders interoperate in a simulated real-time environment,” said Girouard. “The scenario tested how agencies would work together in a large-scale marine emergency ranging from a mass casualty evacuation to the environmental response that follows such an incident.”

As one of the main partners, Canadian Armed Forces (CAF) – Joint Task Force Pacific was the lead agency on the initial response on Day One. As Search and Rescue Region Commander, Rear Admiral Art McDonald led the search and rescue phase and then transferred command to the CCG and RAdm Girouard once the first phase was complete. CAF also provided aeronautical assets and expertise for the exercise. As well, 100 armed forces members acted as the ferry passengers.

“As Commander of Joint Task Force (Pacific) I recognize the importance of maintaining a high state of Search and Rescue readiness for British Columbia’s

busy territorial waters,” said RearAdmiral Art McDonald. “Exercise Salish Sea 17 affords JTF(P) the unique opportunity to train in a realistic scenario alongside our federal and provincial partners and community stakeholders.”

As a partner in the delivery of search and rescue services in Canada, CCG marine coordinators provided maritime expertise while working with the CAF aeronautical coordinators under the authority of the Search and Rescue Region Commander to ensure that the right mix of marine and aeronautical assets, from multiple organizations, were tasked to respond once the ferry had indicated it was in distress.

The first contact for any vessel in distress would be Marine Communications Traffic Services centre in Victoria — an essential partner in SAR by providing the radio-communications link between the rescue centre and the vessel in distress.

The Canadian Coast Guard had one multi-tasked vessel, one hovercraft, one

lifeboat and multiple small rigid-hull vessels to respond, along with a Coast Guard helicopter for the environmental response phase. On the second day of the exercise, once the handover from the Search and Rescue lead had taken place, pollution response vessels from Coast Guard and other partners simulated the response to a potential pollution threat so as to ensure the protection of the marine environment.

As a sponsor partner, BC Ferries provided the MV Coastal Renaissance as the platform for the evacuation during the exercise. Both the ferry and staff were made available during the exercise, as well as the incident command post and their situation centre. “This was an excellent opportunity for BC Ferries to practise our emergency response skills, processes and procedures,” said Captain Jamie Marshall, BC Ferries’ Vice President of Fleet Operations. “Safety is our first priority and we were pleased to have the opportunity to take part in this major maritime response exercise.”

Over 500 people, 15 vessels and four aircraft were part of the exercise.

December 2017/January 2018 — BC Shipping News — 45

TRAINING & PREPAREDNESS Also a sponsor partner, BC Emergency Health Services (BCEHS) participated in the exercise during the search and rescue phase, with paramedics providing triage and transport to hospital for volunteers acting as victims. They also worked closely with Coast Guard on casualty management and tracking. BCEHS tested its Mass Casualty Incident plan involving paramedics, dispatchers and supervisors during the triage facility set up at Fernwood Dock, Salt Spring Island. This allowed for processes to be practised involving the handover of victims in a sea rescue, and to evaluate coordination between the Coast Guard and BCEHS. Emergency Management BC (EMBC) led the coordination and implementation of the B.C. government’s participation in Exercise Salish Sea. This included an activation of the Provincial Emergency Coordination Centre, the Vancouver Island Provincial Regional Emergency Operation Centre, and the Emergency Operations Centres on Salt Spring Island and in the Capital Regional District, as

well as the activation of first responders by BC Emergency Health Services, local ground search and rescue volunteers, local volunteer fire departments and local emergency social services volunteers. EMBC coordinated support for ferry evacuees during the Search and Rescue portion of the exercise and supported the Ministry of Environment & Climate Change Strategy as part of the environmental response portion of the exercise. Training and exercising are one of EMBC’s six strategic lines of effort, and Exercise Salish Sea provided a further opportunity to refine complex response plans and strengthen the EMBC’s coordination efforts with local, provincial and federal partners involved in disaster response.

Public Safety Canada, another sponsor partner, was part of the Regional Operations Centre, facilitating coordination with federal partners and agencies, ensuring federal resources and staff were provided in a timely and effective manner. The Honourable Ralph Goodale, Minister of Public Safety and Emergency

Preparedness, said that “Careful preparation and practice ensure first responders are ready to spring into action when emergencies arise. These exercises build and strengthen the working relationships that are essential to effectively coordinate with partners to quickly and effectively deploy federal resources to support Canadians when disaster strikes.”

Another key player in the exercise was Royal Canadian Marine Search and Rescue. RCMSAR led a contingent of six-dedicated rescue vessels from stations in the immediate vicinity of the exercise scenario. Stations from Ladysmith, Salt Spring, Mill Bay, Brentwood Bay, Saanich, and Pender Island responded as they would have in a real incident.

They were first on scene and conducted the initial response to the vessel in distress and were essential to the effective rescue and transfer of evacuees to safe haven. RCMSAR HQ also contributed to the overall safety management of the exercise from a Sooke-based command and control vessel. In addition to roughly 40 personnel on the water, RCMSAR

Day Two of Exercise Salish Sea involved a simulated environmental emergency response, complete with an incident command post. Thanks to the Canadian Coast Guard and the Canadian Armed Forces for all photos.

46 — BC Shipping News — December 2017/January 2018

TRAINING & PREPAREDNESS integrated shore-based support personnel with the local emergency services response at the casualty collection point at Fernwood dock in order to ensure a seamless transition of casualty care between agencies.

On average, RCMSAR’s 33 community stations respond to over 800 rescue missions annually and are vital to the effective conduct of marine safety on BC’s coast. “Exercise Salish Sea was a positive learning experience that provided tangible insight into the challenges and complexity that would exist in a no-notice mass rescue operation,” said Pat Quealey, CEO of RCMSAR. “By definition, a mass rescue operation will overwhelm traditional response resources; the exercise solidified the necessity for interagency planning and practice that is inclusive of non-standard search and rescue assets.”

Quealey went on to say that “In addition to the dedicated assets that organizations like RCMSAR provide 24/7, we know that an effective mass rescue response will likely be dependent on the coordinated activities of vessels of opportunity and convergent community volunteers. RCMSAR’s communitybased model and the leadership that well-trained and equipped volunteers can provide in coordinating saving lives was highlighted in spades during this exercise. We will continue to develop this approach as we strengthen the capacity and network of support with local communities as well as Indigenous, provincial and federal governments and industry. BC Ferries is a key partner and supporter of RCMSAR and we are grateful for their leadership in the marine industry as we all strive to keep our coastal waters safe.”

Many other organizations participated: • From the Federal Government — Transport Canada, the RCMP, the Department of Fisheries and Oceans, Environment and Climate Change Canada, and Parks Canada; • From the Provincial Government — BC Ministry of Environment and Climate Change Strategy, Health Emergency Management BC, Ministry of Forest, Lands, and Natural Resource Operations, Government Communications and Public Engagement, Intergovernmental Relations Secretariat, BC Coroners Service,

“RCMSAR’s community-based model and the leadership that well-trained and equipped volunteers can provide in coordinating saving lives was highlighted in spades...”

Ministry of Transportation and Infrastructure, and Emergency Social Services; • Local and regional agencies included the Capital Regional District, Salt Spring Island Emergency Management, Galiano Island Emergency Management, Salt Spring Island Fire Department, and Galiano Fire Department’ • Non-government organizations included the Canadian Red Cross, the Salvation Army and Western Canada Marine Response Corporation; and • Seven First Nations participated as observers: Nisga’a, Metlakatla, Gitxaala, Nuxalk, Heiltsuk, Haisla, Gitga’at.

Conclusion

The level of participation in Exercise Salish Sea was impressive. Over the two

days, about 500 people, 15 vessels and four aircraft were part of the two-day simulated emergency. Also in attendance were CCG personnel from Central and Atlantic Canada as well as representatives from the US Coast Guard and the Korean Coast Guard to take back lessons learned for their own use.

In a real emergency, there won’t be time for the level of coordination that was seen during Exercise Salish Sea. Indeed, the scenario will most likely be one that none can foresee or imagine the exact details. However, the exercise provided many benefits, not the least of which was to gain a familiarity of how each organization can assist when a real disaster strikes. The value of the interaction between the agencies, the knowledge gained and the relationships fostered will provide for a huge advantage when a chaotic situation might arise.

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December 2017/January 2018 — BC Shipping News — 47

CANADA C3 VOYAGE Documenting a historic voyage celebrating Canada’s 150th Anniversary

To seek the Northwest Passage Ken Pittman, TrueLook

I

t was a dream that led men to death and starvation. Finding the Northwest Passage obsessed generations of explorers. To commemorate the 150th anniversary of Confederation, the Students on Ice Foundation commissioned the Polar Prince, a 220-foot research icebreaker, to sail from Toronto to Victoria along the fabled route.

Documenting every step of the journey

TrueLook, a U.S. provider of live webcam systems, and Build Films, a Winnipeg, MB-based production company, teamed up to document the fivemonth-long Canada C3 expedition.

TrueLook placed a five-megapixel fixedposition camera, originally designed to monitor construction sites, on the ship to film the 150-day expedition as the Polar Prince navigated more than 12,000 nautical miles.

Every step of the journey is documented in a time-lapse video (just under nine minutes) created through the TrueLook camera that showcases the vastness of Canada’s coastline. The video can be found at www.buildfilms.ca/projects/ coast-coast-coast-150-day-time-lapse.

“We wanted to capture this historic journey as the Canada C3 connected our nation and her citizens,” said Carlyle Paetkau, one of the founders of

The photos captured along the way paint a breathtaking view of the voyage through weather fair and foul, through clear seas and packed ice.

Build Films. “Not only did we use the TrueLook camera to capture images, we had photographers on board capturing stills and video. Build Films is producing a documentary to capture the beauty and vastness of Canada during this sesquicentennial year.”

The Polar Prince

The Polar Prince is a 67-metre Canadian-flagged research icebreaker.

A former Canadian Coast Guard vessel, she was built in 1958 and she served until being decommissioned in 2008. It took three months to re-fit the ship with more advanced navigation equipment, satellite technologies and research labs for its new scientific mission.

The camera

In addition to allowing Build Films to capture images with the state-of-theart camera, TrueLook provided a live feed from the ship. The photos captured along the way paint a breathtaking view of the voyage through weather fair and foul, through clear seas and packed ice.

Construction cameras are versatile,

rugged and reliable, built to withstand even the harsh conditions of a sea journey along Canada’s northern coastline.

TrueLook, which specializes in construction industry applications, has found many creative uses for its construction cameras. Although primarily found providing construction jobsite monitoring, TrueLook cameras can also be found at trade shows, sporting events and even resorts. The camera’s capabilities for streaming and time-lapse photography can be used to promote businesses.

From coast to coast to coast

C3 stands for “coast to coast to coast.”

The voyage took the ship to 75 different communities as it made its way along the extent of the country’s coastline. With a starting point on the St. Lawrence River, the ship journeyed up the East Coast and around the Maritimes, skirting the northern coastline through the Northwest Passage, and, ultimately down the West Coast to Victoria.

“It’s been a journey to help us look at our past, present and future, learn a lot about this country, its successes and its

Photo courtesyPhoto: Students on Ice Duke Foundation Captain Snider

48 — BC Shipping News — December 2017/January 2018

Photo courtesy Taylor Roades

Photo courtesy Taylor Roades

Photo courtesy Students on Ice Foundation

Photo courtesy Students on Ice Foundation

The Canada C3 voyage stopped in a number of spots on the West Coast including Bella Bella, Port Hardy and Desolation Sound before coming to its final destination in Victoria.

flaws and to look ahead to how we can be better,” SOI founder and expedition leader Geoff Green told The Globe and Mail in an article commemorating the end of the voyage.

Along the way, the Canada C3 science program included research on topics including the impact of micro-plastics, the coastal marine soundscape, and studying

the growing population of “pizzlies” — the hybrid offspring of polar bears and grizzly bears.

The mission of Canada C3 is described as connecting Canadians and inspiring a deeper understanding of the land, the peoples, and the past, present, and future of the country. SOI has led educational expeditions to the Arctic and Antarctic

since 2000. It is an internationally acclaimed leader in polar education and youth engagement.

Ken Pittman is the Chief Marketing Officer for Winston-Salem, NC-based TrueLook, which has been providing construction cameras that combine live jobsite viewing, project time-lapsing, and HD security for more than 20 years.

December 2017/January 2018 — BC Shipping News — 49

SEA STORIES

If it ain’t broke, don’t fix it

By Captain Don Rose

T

he tug Rosario Straits was 71 feet long and powered by a 765hp Caterpillar engine coupled to a Lufkin reduction gear. The crew complement consisted of master, engineer, fist mate, second mate and one cook/deckhand. I was sailing as first mate.

On top of the reduction gear, an air compressor was mounted, driven by two belts from one of the clutches. Whenever the main engine was running with the reduction gear engaged in ahead or astern, the belts from the clutch drove the air compressor. This tug like most had a considerable amount of pneumatic equipment, therefore maintaining sufficient air pressure was critical. The compressor was equipped with a relief valve that allowed it to pump air back into the atmosphere once air in the tanks reached the prescribed pressure. The back up to this was another compressor driven by an electric motor that automatically came on once the air pressure went below a preset level. In the past, there had been a number of problems with the compressor driven from the reduction gear. It had been working fine since the last repair that had been over two months ago.

We were crossing Georgia Straits towing two empty chip barges from Harmac to the North Arm of the Fraser River.

The time was 03:00 and we were a little over half way between Entrance Island and the North Arm Jetty. The wind had increased from light to SW 20 gusting to 25, the seas were building and the forecast predicted more to come.

The engineer returned to the wheelhouse after doing a routine check in the engine room. He asked if we could shut the main engine down so the air compressor driven off the reduction gear could be disconnected. My immediate response was NO #$%@& WAY. I then explained the weather situation plus the fact that we had two barges in tow, therefore whatever was wrong with the compressor would have to wait until we arrived at our destination. He continued to argue that it was necessary that the compressor be disconnected because he wanted to work on it. I continued to tell him, with the use of some colourful expletives, that I was not going to shut the engine down under these conditions. He then said that since I was being so stubborn and belligerent he was going to go ask the captain. I then said if you think I’m being nasty, think what the captain will be like when you wake him up with a stupid request like this. I then assured him that once we were secure at destination, the captain would let him shut down the main engine as long as he wanted. He then agreed that this was a better plan.

On arrival at the tie up in the North Arm of the Fraser River the barges were secured at the Inner Light Scow Berths. The weather forecast had changed and was now predicting conditions to improve. We ran the tug light to Celtic Shell Oil dock, where we refuelled and disconnected the air compressor. The 50 — BC Shipping News — December 2017/January 2018

If a piece of machinery is working fine, look after it ... However, if it’s not broken, for goodness sakes do not try to fix it. engineer could now do whatever he wanted to it while we were underway.

With a full load of fuel and water and the weather improving, we departed the North Arm with two barge loads of chips for Harmac. Prior to arrival, dispatch advised that after we delivered our loads at Harmac we were to take an empty chipper to Chemainus, then return to Harmac with a load.

On arrival at Harmac the engineer asked the captain if he could again shut down the main engine in order to connect up the compressor. The captain advised him, there was just enough time to make the tide in Dodd Narrows, therefore, he could not do it now. However, on arrival in Chemainus he would be able to shut down the main engine and reconnect the compressor. At this time the rest of the crew was not aware of this conversation.

I had just returned to the tug from tying up the loads when the signal bell on the winch rang four times which meant “wanted forward.” I went forward and as I entered the wheelhouse the captain ordered me to go to the engine room and check on the engineer. As I entered the engine room a screwdriver went flying across as if it was fired from a gun. The engineer went to where it landed, picked it up and proceeded back to the compressor. Just then the gear went into neutral so he proceeded to pop on the last belt. Since the gear only paused three seconds in neutral he did not get the screwdriver clear and again it was ripped out of his hand and flew across the engine room. Since this was the last belt, he then started putting the guard over

SEA STORIES them and indicated to me that he was finished. Needless to say I was shocked at this performance because at this time I believed it was done with the captain’s approval.

When I returned on deck, we were about to connect our towline to the empty, so I assisted the crew in doing so. Once connected to our barge and away from the dock we slipped out approximately 200 feet of tow line after which I returned to the wheelhouse to continue the rest of my watch.

After I took over the con, I commented to the captain that I was not impressed with how he had allowed the engineer to put the belts back on the compressor. He immediately informed me that what the engineer had done was not with his knowledge or permission. He then made me aware of their previous conversation and that he had sent me to check on the engineer because he suspected that he would do something stupid like that.

The engineer entered the wheelhouse and the captain immediately started reprimanding him for his totally unsafe work practice. He was also reprimanded for disobeying a direct order.

At first the engineer tried to defend his actions, claiming that both compressors should be on line. The captain stated that since we had operated quite well with one compressor at times for several days, a few more hours would be okay. The engineer then admitted that he was wrong and accepted his reprimand.

To break the tension I instinctively asked the engineer what had been wrong with the compressor. His reply was “nothing wrong.”

In the past, we had a number of problems with it. However, it had worked quite well for some time now and he wanted to see why it had not broken down lately. If looks could kill, he would have died on the spot with the look the captain gave him.

Just as we were entering Dodd Narrows, the smoke alarm for the engine room started sounding. Fortunately, the captain was in the wheelhouse so he took over the con while the engineer and I went to check out the engine room. We cautiously entered the engine room because we believed there could be a fire there.

On entering the engine room, there was not a great amount of smoke just enough to be noticeable and set off the alarm. Around the area of the compressor and reduction gear were fragments of the drive belts. The smoke was rapidly dissipating as there was no longer a source. The air compressor was extremely hot to the touch and we were also able to tell that it was seized. I pulled the dipstick out to check the oil in its base and it showed nothing. On seeing this, the engineer immediately poured some oil into the base. Unfortunately it was too late.

When we returned on deck, the captain asked what the problem was. I told him that the air compressor seized. When he asked if we knew the reason, the engineer said he could not understand why because it had checked out okay.

Nobody asked me if there was oil in the base so I never volunteered any information. It was not my responsibility and I was not going to have to do any explaining, so I avoided talking about it.

A few days later we went into the shipyard and the air compressor was replaced. My assumption is that when the engineer took it apart and put it back together he forgot to put oil in it.

I think he learned from this experience. If it ain’t broke don’t fix it.

Captain Don Rose has over 50 years of experience in the towing industry, starting as cook-deckhand and working his way up to master. Currently, he operates Capt. Rose Marine Consulting & Surveys Ltd.

Giving seafarers a helping hand for over 160 years!

Get on Board with Us www.flyingangel.ca

December 2017/January 2018 — BC Shipping News — 51

PORTS & TERMINALS

The Vancouver grain trade turns 100

By David Hill-Turner

I

As harbour facilities in Vancouver were private and served mainly local needs, there was little ambition to assume the risk of attracting more shipping by investing in new facilities... is now generally believed in the west by the shipping people that Vancouver will be the shipping port for the wheat of Alberta and Western Saskatchewan…”

The source of such foresight was the anticipated completion of the Panama Canal. It would shave almost 9,000 miles off the traditional route around Cape Horn to the United Kingdom and provide western farmers with all-season access to their primary market. The U.K. relied on the imports of food to supply its growing ranks of industrial workers and high protein western Canadian grain was favoured.

The idea of investing large sums of money to build terminals to ship wheat to Europe via the canal ranged from untimely to impossible. At best, a CPR vice-president declared, “the CPR (the waterfront’s principal landlord) will provide all necessary facilities as trade

grows.” While Vancouver was active as a port for shipping lumber and canned salmon, it lacked the commercial and financial structures that were essential for handling the movement of large volumes of a commodity such as grain. Western farmers, seeking to reduce the control of railways and grain companies, lobbied for public ownership of terminal elevators on the Pacific.

In a 1911 memorandum to the Vancouver Board of Trade, Sir George Foster, Minister of Trade and Commerce, set out to confirm the advisability of the government constructing a grain terminal in Vancouver. Successful lobbying by the Vancouver Board of Trade and the United Farmers of Alberta led to the incorporation of the Vancouver Harbour Commission by an Act of Parliament in 1913. The commission was granted wide powers to aid it in developing harbour

Source: Vancouver Public Library

t is hard to imagine Vancouver’s harbour without its towering grain terminals. There was a time, however, when many in eastern-controlled transportation and grain businesses ridiculed Vancouver’s potential as a grain port. Since the settlement of the prairies began, the movement of grain to market had been eastward to seasonal terminals in Thunder Bay and Montreal. When ice closed those ports, grain was shipped by rail to New York, St. John and even Halifax. This long and expensive route was costly to farmers and seasonally denied them access to the important markets of the United Kingdom and Europe.

Eastern grain interests did not consider Vancouver a potential grain port as the distance around Cape Horn to Europe was considered too long to be economical. While there was some talk about shipping to the Orient, it was a relatively small market that was served by sacked grain. As harbour facilities in Vancouver were private and served mainly local needs, there was little ambition to assume the risk of attracting more shipping by investing in new facilities to serve untried routes. By the early 20th century, new waves of immigrant farmers were moving further west and north into Alberta. These farmers were increasingly voicing their dissatisfaction with the eastern movement of grain that they saw as expensive. After harvest, they would be lucky to get most of the crop moved east before the freeze-up of the Great Lakes and St. Lawrence River.

At the 1909 founding convention of the United Farmers of Alberta, a resolution was passed authorizing the executive to examine potential export opportunities through ice-free West Coast ports.

Vancouver’s business community took notice. “We can consider Vancouver as an outlook toward Europe and the Atlantic Coast for Alberta wheat” declared the editor of British Columbia Magazine Frank Buffington Vrooman in 1912. “It

The SS War Viceroy, the first ship to move grain out of Vancouver.

52 — BC Shipping News — December 2017/January 2018

PORTS & TERMINALS How to prove the economic potential of the route and dispel the rumours about damaging tropical heat called for some creative thinking. facilities in the Burrard Inlet, English Bay and False Creek that would be comparable to those in the rival ports of Seattle and Portland. Its mandate also included large-scale investments in new grain terminals. On December 2, 1914, the Minister of Trade and Commerce announced that a $690,000 contract for the terminal’s construction had been awarded to veteran elevator builders, Barnett & McQueen. The completion of the 1,250,000 bu. terminal elevator at the foot of Salsbury Street in 1916 marked Canada’s first direct investment in the West Coast harbour. It would become the first of the “leviathan masses of reinforced concrete” that would rise along Burrard Inlet, the Fraser River and Victoria. It is ironic, considering recent news stories about the potential selling of the government’s interest in the port, that it was the only party willing to accept the risk of large-scale harbour development.

Private industry, including railways, was either unwilling or unable to assume any risk in developing new facilities.

For a time, it seemed the railways and eastern grain companies might be right and that it was not yet Vancouver’s time.

The local press gleefully referred to the dormant building as “Stephen’s Folly” after Vancouver MP and harbour booster, H.H. Stevens. The problem was timing.

The loss of ships to new torpedo warfare created a supply problem in the North Atlantic. Coupled with high rates to the North Pacific, all shipping on the West Coast was suffering. To earn some revenue, the Harbour Commission leased the terminal’s wharf to the Canadian Merchant Service.

To be fair, this was a long and untested route and the industry was unsure of its viability. Adding to this insecurity was an assertion by some in the grain trade that grain would heat up in the ship as it passed through tropical waters and spoil.

More imaginative critics even claimed that the heated grain would expand “blowing to bits” the hapless steamer. As the new canal was already having problems with landslides delaying ship movement, sunken ships carrying Canadian grain would only add to their problems!

How to prove the economic potential of the route and dispel the rumours about damaging tropical heat called for some creative thinking. While no ships were readily available, there was a West Coast shipbuilding industry building freighters to supply the war effort. At the time the terminal was completed, cargo ships were in short supply. Sir George Foster, Minister of Trade and Commerce, approached the British government with a request to charter a ship then under construction on the West Coast. The government agreed to make the War Viceroy (5,764 GRT), then under construction at Portland’s Northwest Steel, available to transport an experimental cargo.

The government instructed the Board of Grain Commissioners at Fort William (Thunder Bay) to direct 100,000 bushels of grain to Vancouver for the trial shipment. By November 1917, 75 carloads of grain were waiting in the elevator for loading. Four grades of grain were selected for the trial shipment: Canadian Hard, one, two and three Northern wheat. The cargo was inspected before loading and was monitored throughout the entire voyage by technicians from the Dominion Grain Laboratory. On November 14, 1917, the War Viceroy sailed through First Narrows with her cargo of Alberta wheat bound for the

Panama Canal and England. She arrived in London on February 16, 1918, and after careful analysis of the cargo, only 160 bushels were reported damaged.

The voyage was a technical success. In July 1918, a second cargo of 80,000 bu. was also successfully delivered via the Vancouver-built steamer War Dog. For the next three years, little bulk grain was shipped from Vancouver. The war had taken a heavy toll on merchant ships and there was easy money to be made on the North Atlantic run. Freight rates to the North Pacific were still high enough that the eastern movement of grain by rail was still more economical than via Canada’s West Coast. By 1921, freight rates were falling as reconstructed merchant fleets and larger ships began competing for cargo. Coupled with increased grain production on the prairies and a second transcontinental railway, Vancouver was ready to launch as Canada’s grain exporting powerhouse.

On a cold January 7, 1921, grain began flowing into the holds of the American steamer Effingham. While it totalled just over 2,000 tonnes, it was the first true commercial cargo of bulk grain. What unfolded in the following months was another West Coast gold rush — except the gold was grain.

For more than three decades, David HillTurner has been engaged in a variety of communications projects focusing on British Columbia’s heritage. His particular interest is maritime history and he is presently working on projects relating to grain, Alaska cruising and pilotage.

December 2017/January 2018 — BC Shipping News — 53

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