BC Shipping News - December 2011

INSIDE: COUNCIL OF MARINE CARRIERS MEMBERSHIP DIRECTORY

BC SHIPPING NEWS

Volume 1 Issue 8

www.bcshippingnews.com

December 2011/January 2012

Retail Price: $4.95

Industry insight Captain Phillip J.Nelson: Pillar of the industry.

Seaspan Marine and the NSPS:

Tug industry

Only the brave remain optimistic...

Creating a legacy and putting Canada back in the shipbuilding game.

Training

B.C. leads the way in software support.

Plus: Cruise industry: 2011 season summary.

www.bht.com/maritime

December 2011/January 2012

Volume 1 Issue 8

Contents

On the cover: The Seaspan Raven in Vancouver Harbour.

Photo courtesy of Seaspan Marine Corporation.

Photo credit: SMIT Marine Canada

Cover Story I

Cover Story II

32 Seaspan Marine

10 Industry insight

F E A T U R E S

F E A T U R E S

Captain Phillip J.Nelson

Pillar of the industry.

BCSN speaks with the President of the Council of Marine Carriers and gains insight into the world of tugs and barges.

23

The tug industry

Only the brave remain optimistic about the future.

Ray Dykes takes a “state of the nation” look at B.C.’s tug industry. Despite a recent downturn, some are still optimistic about the future.

Marine Learning Systems: B.C. leads the way in software support for job and familiarization training.

Lubricant pollution: Avoiding the slippery slope.

38 The vessels

The non-combat vessels of the NSPS contract.

Preliminary details on the new vessels.

39

NSPS and the Pacific Coast

Peter Cairns (Vice-Admiral, retired), President of the Shipbuilding Association of Canada, outlines the benefits of the NSPS contract for B.C.

Council of Marine Carriers membership directory.

47 Technology

BC Shipping News conducts an exclusive interview with John Shaw, Vice President, Program Management at Seaspan Marine Corporation.

Shipbuilding Association of Canada.

27 CMC member directory This handy reference guide provides full contact information as well as area of operation, fleet size and services for marine carriers.

Creating a legacy and putting Canada back in the shipbuilding game.

D E P A R T M E N T S 6 18 20 41

46

News briefs / industry traffic History lesson: SOS — why I love tugs.

Cruise industry: 2011 season summary.

Joe Spears: Marine safety management and the Transportation Appeal Tribunal of Canada.

Legal affairs: What law? Choice of law clause not always determinative.

December 2011/January 2012 BC Shipping News 3

CONGRATULATIONS

TEAM SEASPAN on obtaining the NSPS non-combat package

From management and staff at Liberty International Underwriters A global company committed to providing innovative insurance solutions for Canada’s maritime industry.

LIU Vancouver: 999 West Hastings Street, Suite 570 Vancouver, British Columbia V6C 2W2 Phone: (604) 648-1500 / Fax: (604) 648-1501 www.liucanada.com

December 2011/January 2012 Volume 1/Issue 8 Publisher McIvor Communications Inc. President & Editor Jane McIvor Contributing Writers Peter Cairns Ray Dykes Kelly Francis Lisa Glandt Murray Goldberg Captain Phillip Nelson Peter Ryan John Shaw Donna Spalding K. Joseph Spears Mark Tinmouth Advertising Mark Collett / MSL Marketing & Sales Phone: 604-351-0211 / Email: mark@bcshippingnews.com Stephen Fountaine Phone: 250-861-9006 / Email: stephen@bcshippingnews.com

Liberty International Underwriters, a division of the Liberty Mutual Insurance Company

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4 BC Shipping News December 2011/January 2012

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EDITOR’S NOTE

An exciting time to be in the shipping industry.

W

ay to go Seaspan! I don’t think there are too many in the shipping industry that can recall such a positive, optimistic feeling when the announcement was made on October 19 that Vancouver Shipyards Co. Ltd. had won the contract to build the non-combat vessels for the National Shipbuilding Procurement Strategy.

Aside from the obvious benefits that come with an $8 billion contract — not just to the shipbuilding industry in British Columbia but to other sectors and markets that will see that $8 billion trickle down through the economy — the boost to the province’s morale was priceless.

Make no mistake, the $8 billion will not come all at once; cutting steel on the first ship won’t start at least until next year; training programs and new curriculums are only now being developed and won’t likely be on offer to students for at least another two to three years.

Even more significant, we still need to traverse through the possibilities that a change in political office will prompt a change in government priorities or that the current regime will simply not be able to afford the contract in its current form.

So now comes the tough part — we need to maintain our optimism. We

need to work as though promises and initial plans are the reality. And we need to do everything we can to ensure that the shipbuilding agenda remains a top priority for this and future governments.

“The NSPS was not just about the price of the ship — it was all about selecting two companies who were willing to make the investment to become worldclass shipyards.”

Having noted the caveats, I truly believe that the announcement on October 19 signalled a new era for B.C.’s shipbuilding industry. Here’s why: First, both the Canadian Coast Guard and the Royal Canadian Navy need these new builds. As you’ve read in past issues of BC Shipping News, the fleets — especially those of the CCG — are aging and need to be replaced. It is to this current federal government’s credit that they recognize this and are working toward correcting the situation. I am especially pleased to see the inclusion of the Polar Icebreaker in the contract, allowing us to assert our presence and our sovereignty in the Arctic.

Second, and as noted by John Shaw, Vice President, Program Management

at Seaspan Marine Corporation: “The NSPS was not just about the price of the ship — it was all about selecting two companies who were willing to make the investment to become world-class shipyards.” This is the catalyst we — as an industry and as a province — need to get back to our roots and prove that we really can compete on the world stage with the skills, productivity and ingenuity that has defined our local industry over the past 100+ years.

Third, even if there are changes to the current strategy, the infrastructure and training investments that are now committed will still be in place and will still provide that foundation which allows us to market British Columbia as a world-class shipbuilding destination.

“We might not be able to compete on labour on the international stage,” said Shaw, “but...having long-term prospects of work so that you can invest in new equipment, facilities and people...are the cornerstone of promoting productivity.”

So yes, despite the uncertainties that come with any government promise, there is cause to celebrate and cause to be optimistic for the future of the shipbuilding industry in B.C. Now if we could only get the government to order some of those neat nuclear submarines we need... BCSN

Member of: International Sailor’s Society Canada

December 2011/January 2012 BC Shipping News 5

INDUSTRY traffic NWCCA welcomes Alexandra Drabek.

T

he North West & Canada Cruise Association is pleased to announce that Alexandra (Alix) Drabek has joined the NWCCA in the role of Administrative Co-ordinator (as of November 14).

Some in the Vancouver maritime industry will be acquainted with Alix from her past roles as a Boarding Agent with Anglo Canadian (now ACGI) and Logistics Co-ordinator with CP Ships.

In addition to her Bachelor of Arts – History from Queens University, Alix has a Traffic, Customs & Transportation Certificate from Vancouver Community College and a Journalism Certificate from Langara College. Alix spent six years with the US Navy (Active Duty) in Washington DC. In welcoming Alix to the NWCCA, President Greg Wirtz notes: “NWCCA is fortunate to have found in Alix a new

Alexandra (Alix) Drabek. team member with a background in shipping and experience that will bring value to the initiatives of our member lines.”

VHF transceiver without DSC approved in error.

By Peter Ryan P.Eng

T

hanks to two errors in Ottawa, a marine VHF transceiver without DSC has been approved for sale in Canada! The SAILOR model 6210 may be the last non-DSC radio available. Vessels that, for operational reasons, fit radios in addition to the Class D VHF required by Transport Canada may appreciate the lack of DSC alarms from this model. It is not illegal to carry such equipment, in fact Ship Safety Bulletin 04/2002 recommended maintaining existing VHF radio-telephones.

Rust-out is eliminating this option which was never available for new constructions.

Background Since January 2005 Industry Canada, at the request of Transport Canada, has required all marine VHFs to be equipped with Class D VHF DSC. Years earlier, USCG required DSC to SC101 on all marine VHFs sold in the U.S. so non-DSC radios have not been available in Canada or the U.S. for many years. The unfortunate result is that all alarms are triggered on receipt of DSC alerts on vessels fitted with multiple VHF DSCs. To deal with what can be a navigational safety issue, technicians are disabling DSC as best they can. I disabled DSC in two VHFs on each of the two new Pacific Pilotage Authority boats at the request of the operators and pilots. Industry Canada informed me that it was illegal to do so.

The writer continues to work for a long-term solution but achieving national and international agreement is a tough sell.

6 BC Shipping News December 2011/January 2012

NEWS BRIEFS BMT ARGOSS and International Paint partner to deliver measurable hull coatings performance.

B

MT ARGOSS and International Paint have announced the formation of a partnership that can deliver demonstrable and transparent improvements in performance, efficiency and environmental emissions for the global shipping fleet.

By deploying International Paint’s world class fouling control coatings in conjunction with the BMT SMARTSERVICES system, ship owners and operators will be able to benefit from a measurable reduction in energy use and CO2 emissions. The system developed by BMT ARGOSS will independently monitor and report to stakeholders, the performance of their vessels.

BMT SMARTSERVICES builds on the successful track record of BMT SMARTPOWER which is an advanced onboard, real-time performance monitoring and reporting system which acquires and records data automatically from ship sensors and provides valuable ship performance information to the crew and shore-based management.

When employed as a package, the BMT system can be used with International Paint’s Intersmooth®SPC, the world’s only self-polishing copolymer biocidal antifouling that offers four per cent savings and 37 years of proven performance on over 33,000 ships, as well as Intersleek®, the latest generation fluoropolymer foul release coating that offers fuel and emission savings of up to nine per cent.

Han Wensink, Managing Director of BMT ARGOSS commented: “BMT SMARTSERVICES will clearly and transparently demonstrate any in-service performance changes when International Paint’s hull coatings have been used.

Equipped with a user friendly web-based interface and drawing on BMT’s 24/7 access to high quality metocean data,

When employed as a package, the BMT system can be used with International Paint’s Intersmooth®SPC and Intersleek® fouling control coatings. the new system can play a major role in improving operational efficiency of the global shipping fleet.”

Paul Robbins, Worldwide Marine Marketing Director at International Paint continued: “We are confident that our high performance biocidal antifoulings and foul release coatings, when used in conjunction with BMT SMARTSERVICES, will deliver quantifiable added value for ship owners and operators. One of the reasons we partnered with BMT is that the new system

The Shape of dventure.

can accurately determine total performance levels by recording over 30,000 readings per day, providing complete transparency and evidence of the performance improvements our advanced hull coatings technology can deliver.

The BMT system can be installed at newbuilding or as a retro-fit and by utilising International Paint’s and BMT’s global networks, in-service support will be provided at every stage throughout the life of the coating and the monitoring system.” BCSN

The Shape of dventure.

South end of Burrard Bridge 1905 Ogden Ave Vancouver, BC 604 257-8300 www.vanmaritime.com

December 2011/January 2012 BC Shipping News 7

INDUSTRY traffic Northwest ports win environmental award for clean air strategy.

T

he ports of Vancouver, Tacoma and Seattle have been honoured with the Environmental Achievement Award from the Pacific Northwest International Section of the Air and Waste Management Association.

The association’s award recognizes the Northwest Ports Clean Air Strategy for innovative techniques that reduce or prevent air pollution or waste.

The Northwest Ports Clean Air Strategy is the first and only three-port and international agreement to reduce greenhouse gas and diesel emissions from maritime operations. Environment Canada, the U.S. Environmental Protection Agency, the Washington State Department of Ecology and the Puget Sound Clean Air Agency have partnered with the ports in this effort.

Since adopting the goals in 2008, the ports have shown significant progress in producing cleaner air for the communities that surround their harbours.

Nanaimo Port appoints DP World Vancouver as new terminal manager.

T

he Nanaimo Port Authority is pleased to announce that effective January 1, 2012, DP World Vancouver will be the terminal managers at both the Duke Point Deep Sea Terminal and the Nanaimo Assembly Wharf facilities.

Commenting on this recent change, Port President & CEO, Bernie Dumas said: “The Nanaimo Port Authority was the largest shipper of forest products on Vancouver Island for many years. With the coming of the new millennium,

the forest industry has gone through significant rationalization and these changes required the port to re-evaluate how we conduct our business, be responsive to the changing requirements of the industry and maintain the highest and best use for our terminal facilities. In partnering with DP World, the Port has an organization that operates worldwide and shares our vision to expand, diversify and continue to develop Nanaimo as an economic engine for Vancouver Island.”

DP World Vancouver takes over as terminal manager for both Duke Point Deep Sea Terminal (above) and Nanaimo Assembly Wharf facilities effective Janaury 1, 2012.

Russian Missile Cruiser Varyag visits Vancouver

By the strategy’s first milestone in 2010: • 44 per cent of ships calling frequently used cleaner-burning fuels or electrical shore power at berth; • 62 per cent of diesel-powered cargohandling equipment met the performance measure through retrofits, replacements or use of low-sulphur fuels; and • 98 per cent of drayage trucks met the measure through outreach, engine retrofits or incentive programs.

The award was given during the association’s annual conference in early November in Harrison Hot Springs.

T

Photo credit: John Webber

he Royal Canadian Navy’s Maritime Forces Pacific destroyer HMCS Algonquin welcomed and escorted the Russian Pacific Fleet (PF) flagship guard missile cruiser Varyag up the Strait of Juan de Fuca before pilot Mark Stevens boarded to bring the ship into the Port of Vancouver in early November. The Varyag is 186 metres in length, 26 metres wide and has a displacement of 12,000 metric tonnes. After leaving Vancouver, the ship headed back to its home port of Valdivostok. BCSN

8 BC Shipping News December 2011/January 2012

NEWS BRIEFS St. Roch endowment fund created.

T

he Vancouver Maritime Museum is excited and honoured to be the recent recipient of a gift of $500,000 from Mr. John Salisbury to create a new endowment fund in support of the RCMP vessel St. Roch. As the most significant item in the museum’s collection, and valued at over $2 million, St. Roch is always in need of conservation and care. The museum is currently undertaking a survey on the vessel and is preparing a conservation report for future action. The creation of this muchneeded fund will help to ensure that this icon of arctic sovereignty is preserved for future generations.

St. Roch is special not only for her history — she was the first vessel to sail the Northwest Passage from west to east from 1940-42; the first to complete the passage in one season (1944); and the first to circumnavigate North America — but also for the experience she offers. The ship is a unique artifact of arctic endurance, a compelling symbol of human endeavour in a forbidding land and of ordinary men rendered heroic by unusual and extreme circumstances at the top of the world. St. Roch, through its years of service in the Northwest Territories and the Arctic Ocean, provides tangible proof of Canada’s sovereign claims to those regions.

The creation of this fund reflects Mr. Salisbury’s belief that both the history and social fabric of our province is uniquely tied to the water — whether it be the growth and development of B.C.’s economy through one of the busiest ports in North America or the settlement and service of remote communities through our vast waterways.

Mr. Salisbury passed away peacefully on September 23, 2011. His very generous contributions in his final days to many local and provincial organizations, such as the Vancouver Maritime Museum, will be appreciated for many years to come.

Mr. John Salisbury was trained as a paratrooper near the end of the Second World War. He was involved in mining in the Yukon and enjoyed taking mining courses at BCIT. He was also involved in a variety of business ventures across the province, including both plumbing and used auto parts for many years. His final years were spent enjoying both the waterways and community of Pender Harbour.

The John Salisbury Endowment Fund will be open to the public for further donations. Please contact Jana Lyons at the Vancouver Maritime Museum for further information through: www.vancouvermaritimemuseum.com.

Port Sentinels stand guard on Ecuador coastline.

A

XYS Technologies Inc. (AXYS) of Sidney, B.C., together with Smart Electrónica of Guayaquil, have been awarded a contract to provide Instituto Oceanográfico de la Armada del Ecuador (INOCAR) eight Port Sentinel™ coastal monitoring systems.

The Port Sentinel™ systems will be installed at various locations along the coast of Ecuador and feature an integrated tide gauge to measure coastal water elevations in near real time, assisting in the national tsunami monitoring program. The Port Sentinels™ will be networked to the national tsunami control centre by the AXYS Data Management System (DMS) software suite and use GPRS telemetry to transmit data from each system to the control centre. The DMS will allow INOCAR personnel at the control centre to monitor each Port Sentinel™ system’s diagnostics as well as perform remote system configurations, including sensor sampling periods and transmission intervals. The AXYS WatchMan500™ controls each Port Sentinel™ system and allows INOCAR the ability to expand the sensor suite at each site as the monitoring requirements evolve.

Personnel from Smart Electrónica will visit the AXYS facility in Sidney, B.C. for training on the Port Sentinel™ system in late November. The systems will be shipped to Ecuador in early December with installation to be performed by Smart Electrónica later that month.

For further information, visit www. axystechnologies.com.

St. Roch was built in North Vancouver and served Canada as an RCMP Arctic patrol ship from 1928 to 1950. After her final voyage in 1958, St. Roch was brought ashore at Vanier Park, Vancouver and is now the premier exhibit of the Vancouver Maritime Museum.

December 2011/January 2012 BC Shipping News 9

INDUSTRY INSIGHT

Pillar of the industry.

Captain Phillip John Nelson, President of the Council of Marine Carriers, discusses the many facets of the West Coast tug and tow industry: From technology to crew, from the environment to government regulations, and from the impact of the current economy to future trends in design, Captain Nelson holds a wealth of knowledge and demonstrates the very characteristics of the industry he represents — an under-estimated pillar of the West Coast domestic shipping industry.

A

s President of the Council of Marine Carriers, Captain Phill Nelson represents a sector of the shipping industry that is often “taken for granted”. As Phill himself points out during our interview, “no one thinks about the tug until they get the bill”. While this might be a bit of an over-exaggeration, there’s no denying that the tug and tow industry is an integral — and even predominant — segment of the domestic shipping industry.

To gain insight into the many facets of tugs, BC Shipping News turns to the one person with the knowledge and ability to put it all in perspective — Captain Nelson.

BCSN: Could you describe the changes in the tug and tow industry over the past 10 to 20 years?

PN: One of the biggest changes has been in the type and size of tug that is being used. The modern tug is generally a much larger vessel and more

powerful than its predecessor. They’ve also become more automated so we’ve seen crew sizes diminish and at the same time a need for more technical knowledge to operate the vessel. In some ways, this has been positive as it keeps companies competitive given that

The domestic shipping industry on the West Coast is primarily tug and tow and that makes us somewhat unique in Canada... the biggest single cost of operating any vessel is crew followed by fuel. On the negative side, it means we don’t have a large pool of qualified personnel that will be required to fill jobs that will be vacated by retirements. This has been a trend over the last 15 years where new technology has increased efficiency of engines and operation of vessels and

10 BC Shipping News December 2011/January 2012

has led to the need for less people. And, of course, over the last decade, the attention to the environment and air emissions has had a very big influence on the design of vessels.

BCSN: What are some of the changes that have been unique to the West Coast?

PN: The domestic shipping industry on the West Coast is primarily tug and tow and that makes us somewhat unique in Canada but the same drivers toward automation and technology still apply. We do find shifts in the commodities being towed and the kind of work that our industry is doing. The coastal forest industry, for example, has traditionally been the biggest customer of our tug and tow industry and the decline of the forest industry caused a consequent decline in towing activity.

Eight years ago, we had a large focus on the forest industry and towing logs up and down the coast. It wasn’t more than a couple of years ago that Seaspan got

INDUSTRY INSIGHT out of the log-towing business and that would have been unthinkable a decade earlier.

Another trend has been the influence of the tractor-tug design on shipdocking. Rob Allan’s designs have been well-utilized by our industry as they are around the world. We find that because of the high demands placed upon shipdocking by the deepsea industry, there is a need for more powerful and capable tugs. CMC members are now providing such tugs, especially in Vancouver and Prince Rupert and are poised to do so at other ports such as Kitimat. When the needs of the deepsea industry change, our members respond.

...Dennis Washington had a profound influence on the towboat industry when he arrived on the scene in the early 1990s...

And in looking at trends over the past 20 years, Dennis Washington had a profound influence on the towboat industry when he arrived on the scene in the early 1990s. He acquired several small companies as well as Seaspan and merged them into the Washington Marine Group. Today, that company accounts for more than 50 per cent of the business of CMC members (who account for 60 to 70 per cent of the overall tug industry in British Columbia).

Overall, I don’t think we have less of a fleet today, but because of the change in the type of tug, we’ve seen a change in the complexion of the industry. Tugs are versatile vessels, we don’t have a lot of specialized tugs other than the shipdocking tugs but for the coastal towing industry in general — i.e., log booms or log barges — you might see a difference in the size of those vessels and the power that they have. There is less deepsea towing going on now than there was 20 or 30 years ago when it was not unusual to see a Canadian tug off the

coast of Mexico or California. That’s not so common today.

The salvage industry was quite big on the West Coast during the post-Second World War years but that has declined.

Ships are better maintained and more reliable so we see less opportunities for salvage work. Some of our members still go off and rescue ships that are in trouble in the Pacific Ocean and we do a lot of emergency work within Vancouver Harbour. Several times over the last few years our tugs have rescued vessels that have broken away from the dock in a bad storm or we have responded to oil spills — often, our members are first on the scene before Western Canada Marine Response Corporation. In fact, WCMRC has programs in place — such as FOSET (Fishermen’s Oil Spill Emergency Team) and Marine Contractor network — which provide training to vessels of opportunity so a response can be quick in these circumstances.

BCSN: Could you describe how the current economy has impacted on your members?

PN: Shipping is an excellent barometer of the global economy. As the economy goes, so goes the shipping industry and as the deepsea fleet ebbs and flows in and out of Vancouver, you see that translate into the rise and fall off of our members’ business. The big slump we experienced in 2008 hit the whole industry very hard. We estimated business was down overall by about 30 per cent.

To be frank, I was more than pleasantly surprised as we started to come out of that slump that some of our companies were still in business.

In general, companies that are more diversified do better. Traditionally, the towing industry has been niche work so companies tend to specialize in one type of operation — e.g., barge-towing, log-towing or river work. At CMC, we’re able to gauge the health of the industry by the amount of dues paid to us (because they are based on a percentage of the sea-going payroll). We did see a drop

in 2008 and we were able to distinguish some patterns in the type of work that was being done. Ship-berthing activity did drop but they weren’t as hard hit as companies conducting more traditional towing. At that point in time we saw a slump in log-towing and a shift of the log-towing from CMC/union companies to non-union, non-allied companies. We saw a lot of our members losing business to that trend. Non-union companies may ignore standard rates and sacrifice things like crew wages and maintenance of vessels to be able to charge less for their services.

Another significant issue to note is that in Canada, we are more heavily regulated compared to many other countries, particularly the U.S. where towboats are not inspected by the U.S. Coast Guard. Their tonnage measurement is different and, consequently,

Phill at the recent Council of Marine Carriers Tugboat Industry Conference in Whistler.

December 2011/January 2012 BC Shipping News 11

INDUSTRY INSIGHT their crewing and equipment requirements are different. A large U.S. tug can have far less crew and equipment compared to the same size tug in Canada and as long as it’s not in violation of the Coasting Trade Act, they can compete for the same business.

BCSN: You mentioned the impact of the forest industry decline on your members.

What about other industry sectors?

PN: Yes, for example, aggregates, gravel and cement as well as pulp and paper and petroleum products are carried by tug and barge. Transportation of dangerous goods, particularly between the Lower Mainland and Vancouver Island, is also significant. Generally speaking, the industry has recovered quite well over the last three years. If we averaged about a 30 per cent decline in 2008, we’re about halfway back now.

The busier the deepsea industry is, then the busier it is for our members. There’s not a lot of trans-shipment of goods from deepsea or to deepsea vessels from

tugs and barges except perhaps for logs and there’s not a lot of short sea shipping activities in that respect. Although some of our companies have built barges capable of taking containers, there’s not a lot of infrastructure at the ports to be able to handle that kind of work.

BCSN: Let’s look at port infrastructure for a minute — how significant is that on tug operations?

PN: The infrastructure is there for our current work — mostly it’s privately owned by our companies themselves or their customers and they don’t use a lot of port-bound or terminal equipment but if we want to get into the transshipment of containers then there will be a need for the port to be able to handle that. The big cost of the short sea shipping container business is handling it — the more times you pick one up and put it down, the more expensive it is and the biggest single impediment to short sea shipping of containers is the lack of facilities able to handle that kind

Different shapes and sizes — CMC members represent a diversity of services on the waters on the West Coast. Above, photos from Tymac Launch Service and Fraser River Pile and Dredge.

12 BC Shipping News December 2011/January 2012

of business. I think that will change in the long term. The growth of the Port of Vancouver is finite because of its geography but, based on long-term plans of the Port, I know they are intent on growth. They’ll have to start looking at alternative geographic locations where they can expand and the obvious solution is up river. The river however is limited in its capacity to handle large ships so shallow draft vessels like tugs and barges carrying cargo to and from large vessels at the mouth of the river is something I see happening way in the future. We have talked with the Port about that sort of thing and while it’s quite a long way into the future, I really do feel it is inevitable — otherwise the port will stagnate.

...the new emission standards has been one of the biggest influences on our fleet renewal.

BCSN: You’ve touched on the changes seen in the type of tug we see today — can you expand on this and provide an overview of issues like age of the fleet; new builds versus refits and more detail on the technology and design we see today?

PN: It’s fairly common across Canada that the age of the fleet is getting quite old however there are some signs of fleet renewal — for example, there is a big building program coming up with the Great Lakes vessels and both Seaspan and SMIT have acquired a few new vessels as have a few others. I would estimate that the fleet is roughly in the range of 20 to 25 years on average, maybe a bit more. A lot of the older tugs now have new equipment and there have been a lot of engine replacements over the last 10 years stemming from the changing emission standards.

In fact, the new emission standards has been one of the biggest influences on our fleet renewal.

You’ll find a lot of new technology on the tugs — a good example is the

INDUSTRY INSIGHT Seaspan Raven that was recently delivered. The vessels themselves are evolving — we’ve gone from single screw, large capacity engines like the heavy towing vessels (not necessarily large in the sense of horsepower but rather in size) to smaller, more powerful tugs. In the harbour, that’s almost reversed — we had small harbour tugs to help berth vessels and now you see more powerful and much larger tugs doing the same thing. It’s not only a really different type of vessel but an evolution.

In terms of technological advancements and translating that into the tug design, you find that the modern Canadian tug is very much influenced by regulations. For example, if you look at the tugs designed about 30 years ago, you saw a sudden shift in design because Transport Canada brought in new regulations following the loss of vessels which resulted in tragic fatalities of tug crews. As a result of those particular fatalities, the tug design changed because Transport Canada required accommodations to be above the height of the water line or above the main deck.

When this rule came in, you suddenly saw designs of tugs go from rather sleek, low profile vessel to ones with very high bows and chunky accommodations at the deck level. Because of that, Robert Allan and other naval architects started to look at different kinds of propulsion and different ways of attaching the tow line. Things like z-drive and tractor-tug design were developed and changed the type of propulsion and overall design of the ship.

...on top of that, our companies voluntarily and regularly far exceed [environmental] regulatory requirements.

BCSN: Can you describe how the trend toward more environmentally-sustainable shipping has impacted on tugs?

PN: Interestingly, there’s a trend today for the larger ships to do cold ironing

Phill recieves an award from Transport Canada Director General, Marine Safety Donald Roussel for his for contribution to the development of the Canadian Alternative Compliance Program, DSM. Leo Stradiotti, Chairman of the Board of the Council of Marine Carriers also recevied the award. (on-shore plug-in for power) and tugs have always done that. Tugs have traditionally been quite green. The industry has upgraded its engines to meet current environmental requirements. We typically always run on low-sulphur fuel and have actually done some tests on biodiesel and are willing to use that but there’s not enough of a supply to do so yet. I see that as one of the trends that will increase in the future. We also have less waste due to smaller crews and on top of that, our companies voluntarily and regularly far exceed regulatory requirements. For instance, a couple of years ago, Island Tug and Barge was the first non-U.S. and first towboat company to receive the coveted Washington State ECOPRO award, an environmental award for going above and beyond legislated environmental requirements. They are very selective on who they give this to so it was a tremendous achievement. It’s only offered to companies who don’t just meet regulatory minimums but far exceed

them in every aspect. We also have a number of members (and the Council itself) who are participants of Green Marine which is predominantly an eastern Canada program. Companies such as Seaspan, SMIT and Island Tug and Barge have joined and that’s indicative of the desire of the towboat industry to be environmentally sustainable. At least one of our member companies, Seaspan Marine Corporation, is also a member of the World Wildlife Federation.

BCSN: Do you see a trend in hybrid tugs such as Foss’ Carolyn Dorothy?

PN: I think it’s going to be quite a while before we see a lot of those around but again, this demonstrates the industry’s awareness of the environmental issue and attempts to move toward greater environmental friendliness.

BCSN: You noted earlier that the size of crew has been reduced. How has that affected training, operations and prospects for employment. Could you also provide insight into how the industry plans to

December 2011/January 2012 BC Shipping News 13

INDUSTRY INSIGHT address labour shortages with the upcoming baby boomer retirement surge?

PN: The average age of our crews is up in the early to mid 50s and there is concern in the industry that there will be a dearth of young people to follow along. No longer is going to sea seen as a romantic profession. The industry is its own worst enemy for this — we don’t promote our industry to young people. A lot of new employees tend to be recruited by word of mouth or through someone they already know in the industry. That’s not the best way to recruit. Retention is not so bad but we do have a majority of people who are baby boomers who still want their jobs and still need the money. It’s a job which offers a really good salary. A deckhand can make upwards of $60,000 per year and Masters and Engineers make somewhere in the range of $100,000 to $150,000 plus overtime, good hours and paid leave.

BCSN: Is it safe to say training requirements are also more stringent now than in the past?

PN: Yes, skill requirements have changed quite a lot. Many prospective employers now are looking for people to have their basic marine emergency duties training; some are looking for a

Bridge Watchman Certificate; they’re all looking for a First Aid Certificate or a Small Vessel Machinery Operator Certificate, so there is a certain amount of training required before you can get the job. These are expensive courses for someone who is unemployed. Some companies will train on the job but most of our member companies have hiring policies set with unions and a lot of people have been waiting lengthy periods to get permanent jobs. In a few years’ time — in perhaps five to 10 years — you won’t have that same situation.

There should be a lot of jobs. That’s the time frame we’re looking at for a lot of people getting ready to retire.

There are very few training berths in the industry and we have developed a deckhand training program to address that.

BCSN: Because the older generation have held onto their jobs for so long and there hasn’t been the opportunity for younger employees to gain senior experience, do you see a danger in the amount of knowledge that will be lost?

PN: Yes, that is a concern and the CMC has spent time addressing this.

There are very few training berths in the

The other half of the team — Phill with Teresa Ledesma, office manager for the CMC. 14 BC Shipping News December 2011/January 2012

industry and we have developed a deckhand training program to address that.

We haven’t implemented it yet — just as we had the first course ready to offer, the slump hit so we shelved it. It was done in conjunction with the provincial government and was going to be offered at any marine institute who wanted to participate. Captain Bob Kitching from the Western Maritime Institute and Captain Ivan Oxford of Camosun College were both interested. BCIT was interested too, but at the time were focused on the Officer Cadet Program and upgrade certification. Although we don’t have anything definite, members are showing a renewed interest but we need more people to be able to set up a pilot course. Once there’s enough interest, we’ll go back to the province and let them know we’re ready. There is concern that there is nowhere for young people to go at the moment. As we start seeing the baby boomers retire, things will start rolling. I don’t think it will be a big flood — I’m hopeful it will be more of a manageable transition where there will be opportunities for anyone who wants a job.

BCSN: What about the new simulator and its impact on training?

PN: We were very supportive of BCIT’s efforts to install the new simulator. CMC and our members contributed toward the purchase and this, and BCIT’s recognition of the importance of our training needs, were the main reasons Captain Clarkson put in a towboat bridge simulator. It makes a lot more sense economically to put someone through a simulator course than to try to train them on the job with such heavy equipment. Remember, this is a heavy equipment industry and so tremendous forces come in to play when you’re docking a ship or towing a barge.

If you don’t know what you’re doing you can gird the tug (flip it) and ultimately kill people or cause tremendous damage. Obviously, having a simulator that can train for that kind of situation but is

INDUSTRY INSIGHT capable of forgiving the mistakes makes so much more sense. Eventually, they’ll have to get on a tug and do it but the learning curve is a lot flatter once they’ve gone through a training program. And you don’t develop such bad habits if you’ve gone through a simulator training course. Currently, those going through the program already have a lot of experience on tugs but because of the anticipated demand to get qualified people, companies will be forced to use simulators a lot more to train less experienced people.

BCSN: Overall, how has technology impacted on the operation of vessels?

PN: I remember when I started at sea the Captain was always yelling at the officers to get their heads out of the radar and look out the window. It was a very worrying practice for Masters in the ‘60s and ‘70s and reliance on technology is still an issue today.

Traditional navigational skills are being lost — even though they are still examined on such things, eventually the skill disappears if you don’t use it — for example, the requirement to be examined on the sextant I believe is no longer applicable. In fact, on my last sea trip in 1987, I was the only one onboard who could use a sextant. We didn’t have GPS and consequently when we were out of sight of land and lost our loran-c coverage, we would have been blind had someone onboard not been able to use a sextant. So even at that point — 25 years ago — traditional navigational skills were disappearing. Another good example was during the First Gulf War — the U.S. Navy wanted to shift the satellites to get a better view of the Gulf and so many of the satellites responsible for giving people their positions in the North Atlantic were no longer available. A lot of ships became disoriented.

It also worries me that we’re losing communication skills. With the advent of satellite communications, you can talk to anybody, anywhere and anytime in the world. You see this trend — particularly in recreational marine activities — to use cell phones. The reason we use radios is so everyone can hear you. You can’t hear someone calling “mayday” over a cell phone and if you’re not in range for cell phone coverage, you could be in real trouble.

Technology has to work alongside our more traditional ways of doing things because technology has a habit of breaking down. Something like a sextant will always be there — the sun and the stars will always be there. Also, during times of conflict, you’re often limited in your use of electronic equipment because you can be traced when it’s in use. Traditionally, you had to turn off your radio and radar and use visual signals

C

About Captain Phillip J. Nelson

aptain Nelson began his career as a Navigating Cadet in the British Merchant Navy in 1971, serving his time with Hunting & Son Ltd. “I had originally wanted to be an architect,” recalls Phill.

“It was much to the influence of childhood friend John Clarkson (current Associate Dean of the BCIT Marine Campus) that I ended up with a career at sea. I’ve cursed him ever since…just kidding. I’ve never regretted it and have thoroughly enjoyed each step along the way.”

Over the next 17 years Phill sailed in tankers, bulk carriers, OBO’s, tugs, fire boats, a hydrographic research vessel, ferries and combination carriers in all ranks from Cadet to Master. He has circumnavigated the globe and has sailed from Tierra Del Fuego to Alaska on the West Coast, and from the Straits of Magellan to Hudson and Ungava Bays on the East Coast.

In 1987, with the birth of his third child, Phill went ashore to join Transport Canada as a Marine Surveyor. Over the next 16 years he experienced successive promotions to such positions as Senior Surveyor of Operational Services, Senior Surveyor of Technical Services, Manager of Examinations and Programs, Manager of Compliance and Enforcement and ultimately as Regional Director of Transport Canada Marine Safety for Ontario Region.

As President of the Council of Marine Carriers, he acts as a technical and regulatory advisor for the Council’s member companies. His functions include advocating for policies and regulations which are beneficial to the industry while protecting the safety of the sea-going staff and the interests and rights of members. As the technical manager for the Council, Phill liaises with government agencies at all levels in both Canada and the U.S. Phill serves on several marine industry committees. Presently, he is the chair of the Pacific Marine Advisory Committee, an industry-wide committee dealing with navigation safety and navigation aids issues.

Phill is a member of BCIT Marine, Camosun College and the Western Maritime Institute Program Advisory Committees. He is a member of the Western Marine Industry Training Coalition, serves on the board of directors for the western branch of the Company of Master Mariners and is also on the board of directors of both the Western Marine Community Coalition and the Western Marine Community Association. Phill is a member of the BC Maritime Employers Association COR Board of Directors. He has been asked to appear as a Marine Expert Witness in several court cases and appeal boards and is registered as a subject matter expert with the Private Career Training Institutes Agency of BC. Phill also sits as a member of the Transport Canada TERMPOL review committee which is assessing the viability and navigational impact of the proposed LNG terminal and crude oil tanker terminal in Kitimat, B.C. He is a member of the Marine Advisory Group which is associated with the Transportation Safety Board of Canada.

Phill lives with his wife Bonnie in Coquitlam, British Columbia. Together they have raised three children, Sarah, Leslee and Robert and recently welcomed grand-daughter Emily to the family.

December 2011/January 2012 BC Shipping News 15

INDUSTRY INSIGHT and non-electronic means of navigation. I would foresee that if there were another large conflict in the world, and that’s not beyond the realm of possibility, shipping will be in trouble because we’ve lost these skills.

BCSN: What about other standards that have been impacted by technology?

PN: There is a conflict between what technology permits for size of crew and what is required by regulation and we’re constantly having to balance that.

Technology has made it easier for one person to do more and the design of the tug itself has done that — for example, one person in the wheelhouse of a tug needs to have all-round visibility and easy access to controls and so the size of the crew is dependent on the design of the tug as much as the technology. Generally speaking, regulations require more crew than really needed to effectively operate a vessel due to new designs but we have to bear in mind the debilitating effect of fatigue. Crews can only go so far before they get fatigued.

A responsible owner will not place his multi-million dollar investment at risk by sailing a fatigued crew even if it was not contrary to regulations. So there are limits to the diminutive size of a crew over and above the regulatory requirements.

We were looking for certain benefits — not the least of which was an improvement in the safety culture of the industry...

BCSN: Let’s discuss regulations and government oversight in more detail. I understand that you and the CMC were instrumental in a safety management system pilot project — could you elaborate on that and the results of the project?

PN: We felt that the Domestic Safety Management (DSM) Program we conducted with Transport Canada was extremely beneficial. We were looking

for certain benefits — not the least of which was an improvement in the safety culture of the industry — and it did achieve that. Of the five companies that participated in the program, all have maintained an effective safety management system. Two of the companies had ISM running in parts of their fleet prior to the pilot project and they have reverted back to that now that it is concluded; prior to the project, one of the companies had a fledgling SMS system which they basically discarded and embraced DSM. They and the other participants are continuing to develop their individual SMS and two have maintained the computerized reporting system that we developed. The DSM system includes a preventative maintenance system. All five companies saw the benefit of operating an effective safety management system.

There are regulations coming in which will require all commercial vessels in Canada to operate under some type of safety management system.

BCSN: Will it become mandatory?

PN: There are regulations coming in which will require all commercial vessels in Canada to operate under some type of safety management system. The DSM pilot project was influential in having Transport Canada make that decision.

What we were hoping for through DSM, over and above the safety culture that was fostered, was authorization — similar to the delegation of inspection authority to classification societies. We were looking for the ability of companies to be able to use a third party to conduct safety audits onboard vessels to move away from the cyclical nature of inspections to something more consistent. When you have a periodic inspection cycle, your safety compliance level follows that cycle. Just before your Transport Canada inspection, you’re at the most compliant you’ll ever be. Then

16 BC Shipping News December 2011/January 2012

as time passes and four or five years lapse between inspections, your level of compliance gradually drops off but then builds again as the next inspection looms. With something like authorization through DSM, and what eventually became known as the Canadian Alternative Compliance Program (CACP), you would always be at a high level of compliance because you’re not tied to this cycle. Your preventative maintenance program, your Transport Canada-legislated requirements and ongoing safety training through safety drills are all built into the system so you are continually maintaining equipment and practices. The ship owner does not face lay-up periods and large bills all at once to get everything into shape — he’s doing if constantly and over the life of the vessel. To me it was a much more elegant system that removes those peaks and valleys caused by periodic inspection cycles.

Unfortunately, Transport Canada could not see the way to bring in authorization and that’s what was really critical to the success of the CACP/DSM programs. The Small Vessel Compliance Program (SVCP), which is currently in place, is essentially based on self-declaration and Transport Canada will need very effective monitoring and inspection targeting methods to make this a reliable program.

Although the pilot project was at times confusing, somewhat expensive and involved a huge learning curve for all participants, none regret taking part and all would like to have seen the program gain official approval and continuation. DSM, especially with authorization, would have been the preferred option going forward.

BCSN: What other regulations are impacting on the tug industry?

PN: There are quite a few — vessel pollution regulations, personnel regulations, safety management regulations for example. Oil Barge Standards are a big issue for us at the moment and having consistency between Canadian and U.S. requirements overall. This is being looked at by a special group in Ottawa

INDUSTRY INSIGHT reporting to the Prime Minister’s office and we’re hopeful that it will result in more co-ordination between the two countries. We’ve also been pushing for a suite of regulations that are particular to tugs and towing. If you’re a towboat owner and you don’t have the advantage of being a member of the CMC or similar organization that can respond to questions and point you in the right direction, manoeuvring through the regulations is difficult. If we had a single set of regulations that covered every aspect of tugs, it would be much easier to comply. I’ve been asking for this for 10 years, even before coming to the CMC but the present regime has decided not to do this at this time. Still, I think we’re moving toward that.

The Oil Barge Standards were brought into place in the 1980s and were not part of Canadian law but were a Transport Publication (TP). Since they were not part of the regulations, they were put into place by a Board of Steamship Inspection decision. However, with the new Canada Shipping Act 2001, the elimination of the Board of Steamship Inspection and the creation of the Board of Technical Review, there is no longer the authority for such a publication to be in force. As a result, the industry is stuck — oil refineries won’t allow an oil barge to go into load unless they have a letter of compliance from Transport Canada and the new Board of Technical Review has no authority to issue or review a letter of compliance. Oil barge operators can’t present the U.S. Coast Guard with a letter of compliance either and this has created trouble for some CMC members going into the U.S. We’ve had a lot of discussion with Transport Canada about this and there is an RFP being issued to develop standards that can be incorporated into regulations or at least be referenced. We don’t have the solution yet but there is one in the making. I’m hopeful that we’ll see it brought in within the next year or two so things are looking up! BCSN

P

About the Council of Marine Carriers

reviously known as the British Columbia Tow Boat Owners Association, the Council of Marine Carriers is mandated to further the interests and to conserve the rights of members and to promote their general welfare. The Council’s role is to formulate and advocate policies, legislation and regulations that are beneficial to their membership by working with the appropriate governmental and industrial agencies. This is done by utilizing a wide range of political, bureaucratic and Association contacts which have been developed over time. These contacts range from Inspectors in the field in organizations such as Transport Canada, Industry Canada and the Workers Compensation Board to various Ministers and senior government officials at all levels from municipal through to provincial and federal. The Council maintains links in both Canada, the United States as well as abroad. They also have close relations with similar organizations such as the Canadian Shipowner’s Association, the Chamber of Shipping of British Columbia, the Chamber of Maritime Commerce, the Shipping Federation, WESTAC, the American Waterways Operators and the various Marine Exchanges across the U.S. Although all member companies benefit from their efforts in achieving more appropriate regulations or standards, they often work directly with full and associate members at an individual level to craft solutions to particular interests and issues.

Subject to the provisions of federal and provincial legislation, the Council may establish and administer on behalf of member companies, plans providing welfare, medical and health insurance, vacation plans, and retirement benefits.

In addition, the CMC establishes and implements safety programs as well as training and re-training programs for seagoing employees. They promote safety in operations and promote the adoption by members Council of Marine Carriers of modern methods, devices, rules and Board of Directors regulations conducive to the attainment of safety in operations. They also organize an (Chair) Leo Stradiotti, President, North Arm Transportation industry-wide towboat conference focusing on current and relevant topics for tug (Vice Chair) Robert Shields, President, Island Tug & Barge Ltd. and barge operators.

There are two types of membership John Bowles, Manager, within the Council of Marine Carriers, Harken Towing Co. Ltd. namely Full and Affiliate members. Full membership is open to any individual, firm or corporation which owns or operates vessels, towboats or barges and employs sea-going personnel.

Integral to the smooth operation of the CMC is Teresa Ledesma, office manager and quite often the first point of contact for queries.

For more information about the CMC, please visit: www.comc.cc or call 604-687-9677.

Bill Duffy, President, Northern Transportation Co. Ltd. Rob Errington, President, Mercury Launch & Tug Ltd. Josh Handley, Lafarge Canada Franz Tjallingii, General Manager, SMIT Marine Canada Jonathan Whitworth, CEO, Seaspan Marine Corporation Gordon Wilson, Vice President, Pacific Towing Svs. Ltd.

December 2011/January 2012 BC Shipping News 17

HISTORY LESSON

SOS — why I love tugboats

By Lisa Glandt

Librarian/Archivist, Vancouver Maritime Museum

O

kay, I admit it, I love tugboats.

Prior to starting work at the Vancouver Maritime Museum in 1998, I had never really thought much about these boats — now, 13 years later, they are my favorite vessel on the water. Something about their spirit and the determination of their design inspires me. Working as the Librarian for the Vancouver Maritime Museum, I assist researchers from all over the world with reference inquiries about our local maritime history, vessels, and the personalities within the Vancouver maritime community who have built them.

So, it’s no surprise that my favorite types of inquiries are about ship histories — every ship has a story and tugboats have shaped Vancouver’s maritime landscape since the turn of the century.

Ah…tugboats, where do I start? The earliest tugs were fitted with paddle wheels but these were soon replaced by propeller-driven tugs. Safety onboard was improved due to the development of the Voith Water Tractor — a tugboat configuration which prevented a tug from being pulled over by its tow. There are two main groups of tugboats: inland and ocean-going. Inland tugboats

S.S. Master – off Point Atkinson, 1998. VMM collection.

18 BC Shipping News December 2011/January 2012

come in two categories: Harbour tugs, the most typical and recognized, are used world-wide to move ships in and out of berth and move industrial barges around the waterfront; river tugs are large and powerful and designed to push rather than tow from the stern.

There are four types of ocean-going tugboats. The conventional tug is the standard sea-going tugboat with a model bow that tows its payload on a hawser (the nautical term for a long steel cable or large synthetic fiber rope). This is the most versatile method of towing since the conventional tugboat is able to move its load three ways: pushing from behind, secured to the side of the towed vessel, or by towing astern. The notch tug is a conventional tug which is assigned to tow and push a specific barge, usually built to the shape and specifications of that tugboat. The tugboat fits snugly into the notch of the barge and with the use of various lines can be secured firmly enough to push the barge at much higher speeds than it would if it were towing. The articulated tug and barge is a specifically designed vessel, comprised of a tugboat and a barge which are coupled using specially designed machinery. The advantages of this system are speed, safety, and cost efficiency. The integrated tug and barge is a rigidly connected tug and barge.

The tug fits so tight into the stern of its

VANCOUVER MARITIME MUSEUM barge that it will roll and pitch in the same manner with the barge and so are legally considered to be ships rather than tugboats and barges.

Norman Hacking, author of the “Ship and Shore” column that appeared in the Province newspaper from 1947-1977 and Charles Defieux, author of the “Of Men and Ships” column in The Vancouver Sun newspaper during the 1960s, routinely wrote about the activities of tugs and other vessels on the Vancouver waterfront.

They would include all sorts of information about different tugs — name changes, design features, repair updates and activities of the various towing companies. I think that Mr. Hacking actually quite liked tugboats too — the headline to an article written by him in the Province Newspaper, November 4, 1960 proclaimed: “B.C. could out-tug the whole wide world”…

Researchers visiting the VMM Library have enjoyed a number of books in our collection on the topics of tugboats, including Ken Drushka’s Against wind and weather: the history of towboating in British Columbia; S.C. Heal’s Always ready: tugboats along the coast; Doreen Armitage’s From the wheelhouse: tugboaters tell their own stories, and Tug and Barge Transportation Industry of British Columbia by the British Columbia Tugboat Owners’ Association. In 1997, Rob Morris, a local maritime historian, wrote an interesting article titled “Tugs and Barges on Highway One” (The Westcoast Mariner, November 1997) that talks about the modern role of tug and barge transportation and the smart economics of using this as an efficient means to transport goods via the Fraser River to all reaches of the Greater Vancouver Regional District. A favourite read of mine is Robert J. Harvey’s engaging six-part story entitled “The Logtowers” that appeared in the February 1999 issue of The Westcoast Mariner.

These days, the old wooden tugs have been replaced by modern steel-hulled vessels with diesel engines.

These new vessels are stronger, tougher and called upon for a wide range of services in B.C.’s coastal waterways.

Over the years, some of the old tugboats were converted and restored as private yachts that navigated throughout Pacific Northwest waters. For a glimpse of tugboat history, I just have to head to Granville Island where the S.S. Master, built in 1922, spends the summer months.

She is the last wooden-hulled steam tug still afloat in North America and well worth my admiration.

Wireless — towing logs off Capilano River, North Vancouver, circa 1928.

Leonard Frank photograph, VMM collection.

St. Clair — built in 1898 in New Westminster. One of the first steam tugs converted to an oil-fired boiler. VMM collection.

December 2011/January 2012 BC Shipping News 19

cruise INDUSTRY

2011 cruise season summary...

Most ports see growth.

By Donna Spalding, North West and Canada Cruise Association

C

anada continues to play a vibrant and important role in the itinerary offerings of NWCCA member cruise lines. With a total 22 major ports in British Columbia, Quebec, Newfoundland/ Labrador and Atlantic Canada, the history and beauty of both coasts draws visitors from around the world.

And while challenges associated with the economic downturn in 2010 and fuel costs continued to climb, most ports saw growth in ship calls and guests in 2011.

Disney Cruise Line’s Disney Wonder and Oceania Cruises’ Regatta visited for the first time, bringing excitement and positive signs for future growth.

Vancouver also welcomed the return of Crystal Cruises’ Crystal Symphony with 10 port calls.

Vancouver — Gateway to Alaska As Canada’s cornerstone and original cruise port, Vancouver concluded another successful season on October 4 with the final sailing of Holland America’s Oosterdam. Twenty-seven different vessels made a total of 199 cruise calls bringing over 663,000 passengers to Vancouver in 2011, a passenger increase of 15 per cent over 2010.

In 2011, Vancouver celebrated not only passenger growth, but the arrival of two new homeport itineraries.

For 2012, Vancouver anticipates 670,000 guests, with 25 ships making 191 ship calls. Next year will also see the return of Princess Cruise Line’s Sapphire Princess, homeporting in Vancouver on 11 open-jaw itineraries.

The 2011 season marked the second full year of operations of the shore power installation at Canada Place. In total, there were 35 vessel-connections to the Port’s shore power facilities, reducing greenhouse gas emissions by 1,318 tonnes.

Nanaimo On May 7 Nanaimo opened its new cruise ship terminal welcoming the Norwegian Pearl — not only the inaugural visit to the new terminal, but the first B.C. port call of 2011. Overall, four large cruise ships and one pocket cruiser

20 BC Shipping News December 2011/January 2012

visited in 2011, bringing just over 8,500 passengers. For 2012, Nanaimo expects similar passenger numbers with visits by the Norwegian Pearl, The World, Celebrity Millennium, Celebrity Century and Sapphire Princess.

Victoria With the departure of Holland America Line’s Oosterdam on October 5 Victoria marked the end of another busy season.

Hosting more than 435,000 passengers in 2011 and a total of 206 ship calls, season highlights included the arrival of the four-millionth passenger on August 18 and the first ever visit of a Disney cruise ship to a British Columbia port on May 2.

The port completed two projects in 2011, installing a dolphin and increasing the depth of the north basin. These two projects provide safe and secure positing for the longer ships being deployed to Alaska.

Prince Rupert British Columbia’s third busiest port, Prince Rupert saw 23 ship visits and

cruise INDUSTRY

The Golden Princess sits in drydock at Victoria Shipyards where it underwent extensive remodelling in 2009.

welcomed just over 54,000 passengers in 2011. While there are no regularly scheduled calls for 2012, there will be a handful of large ships visiting and the Port and community remain committed to providing a positive guest experience in this truly West Coast port.

Port Alberni Stretching 32 miles inland from the Pacific Ocean at Barkley Sound, Port Alberni is found at the head of the Alberni Inlet, Vancouver Island’s longest inlet and the only port of call for cruise vessels on the West Coast of Vancouver Island. Steeped in long traditions of logging, fishing and First Nations history, Port Alberni attracted Holland America which, after a first call in 2009, returned on May 19, 2011.

Quebec and the St. Lawrence Quebec City is a popular cruise port known for its historic buildings, breathtaking setting and old world charm.

A number of ships visited Quebec City for the first time during the 2011 season. Cunard Line’s newest cruise ship, the Queen Elizabeth, made an inaugural

stopover on September 27 and 28 while other newcomers included Silversea Cruises’ Silver Explorer, the Seabourn Sojourn, Îles du Ponant’s Le Boréal, and Oceania Cruises’ Regatta.

In all, the Port of Quebec welcomed over 110,000 passengers and crew, compared to 136,000 in 2010, the drop resulting from itinerary changes by Costa Cruises and Norwegian Cruise Line. The Port of Quebec reports clear signs that growth will return in 2012.

Montreal Montreal’s cruise season began on May 7 with the arrival of the arrival of Holland America’s Maasdam. Overall, Montreal saw 25 ship visits through 2011. In an unusual turn of events, Montreal’s 2012 cruise season gets off to an early start with Holland America’s Veendam which is scheduled to be the first call of the year on January 19th.

Atlantic Canada Perhaps best known for the fall parade of colour, cruising today looks very different than it did a few decades ago on the East Coast. There is increasing

interest by companies with large ships, and a growing number of smaller ships that cater to passengers hoping for a more intimate experience with stops at destinations unreachable by larger ships.

The cruise industry is a major contributor to Atlantic Canada’s economy, particularly the tourism sector as its share of the North American cruise market continues to rise. Passenger throughput has risen 128 per cent over the last decade. Looking to the future, Atlantic Canada stands to benefit from positive forecasts for the international cruise market by growth in port calls, vessel size and passenger volumes.

Cruise passenger visits typically generate further economic opportunities for the tourism industry through extended stays and follow-up visits to the region.

Charlottetown wrapped up the 2011 season with a total of 90,000 passengers and crew, celebrating another successful cruise season and demonstrating a consistent growth pattern over the past couple of years. Next year is projected to be no exception with an anticipated

December 2011/January 2012 BC Shipping News 21

cruise INDUSTRY increase of 36 per cent over 2011 that included an additional 15 ships scheduled to arrive.

Halifax reached a milestone on October 11 with over a quarter-million passengers visiting the port this season, rounding out 2011 with 230,000 passengers and 126 vessel calls. Next year is forecast to be just as exciting with Cunard Line’s Queen Elizabeth making her maiden voyage to Canada and visiting Halifax on Sept 25. In addition, Halifax will receive the first ever visit by Disney Cruise Line with the arrival of the Disney Magic and a total of nine calls by the Magic in 2012.

New Brunswick New Brunswick continues to grow and expand with the ports of Saint John, St Andrews By-The-Sea and Miramichi welcoming ships and guests in growing numbers.

Saint John continues to lead the province with 235,000 passenger visits and 125 ship calls in 2011 and growth is expected to reach 245,000 passengers and 132 ship calls in 2012. In addition, Saint John is increasing its berthing capacity to accommodate the world’s largest ships.

St Andrews By-The-Sea, a new addition to New Brunswick cruising, is looking forward to four ship visits in 2012.

The Future of Cruise Tourism In Canada Cruise vacations continue to be among the strongest markets in tourism due to the great diversity offered. Most cruise lines are expanding — adding more ships and seeking new, attractive regions to cruise. Alaska continues to be a popular market, while the East Coast of Canada, including the St. Lawrence, continues to grow.

The economic impact of cruise tourism is significant, with nearly two million passengers on approximately 1,000 cruise ship calls to Canada generating over $2 billion in total output for the Canadian economy. Benefits of the cruise industry are widespread

The Port of Nanaimo`s new cruise terminal has received high marks from cruise lines and their guests.

Two projects undertaken by Greater Victoria Harbour Authority — installing a dolphin and increasing the depth of the North Basin — have increased accessibility to the port. through the Canadian economy and include the purchase of ship supplies, refits, repairs and maintenance, fuel, stevedoring, port fees, pilotage, hotel accommodations for passengers and crew, spending on local tours and shopping, restaurants, buses, taxis and air transportation.

Cruise itinerary planning typically starts two years or more in advance of a season, with consideration given to how a system of ports in a specific region can offer an attractive destination

22 BC Shipping News December 2011/January 2012

for potential cruise passengers while maximizing economic returns. The availability of shoreside infrastructure, comprehensive shore excursion packages and support for other land based tourist activities play a large role in influencing planning decisions within the industry.

Effectively attracting cruise business requires an ongoing collective approach from key players within a region.

Donna Spalding joined the North West & Canada Cruise Association in 1999. She can be contacted at: dspalding@nwcruiseship.com.

TUG INDUSTRY

Only the brave remain optimistic about the future.

By Ray Dykes

T

he British Columbia tug and towboat industry has taken a beating in recent years and these days optimism is not a prevailing commodity.

New builds are rare yet the fleet is aging fast with many of its estimated 350 tugs already beyond their useful life and others being repaired or simply left tied up at the dock. The once all powerful forestry industry has turned into an expanding graveyard of closed saw mills and pulp mills up and down the coast, severely limiting towboat work opportunities.

However, there is a thread of optimism from the major player — Seaspan Marine Corporation — which dominates the tug and towboat industry in size and lines of work and has been a feature on the coast for over 100 years.

While admitting that the recovery from the global economic meltdown has been slower than hoped, Robert Hedley, Seaspan’s Senior Vice President, says he remains optimistic.

But, it’s a thread at best. Many of the Seaspan fleet of 47 tugs and 113 barges

are reaching the end of their useful life.

New builds are needed, particularly among the barge fleet where “a number of barges are tied up that would have normally been in service,” according to Hedley.

Others in the industry when asked about the “state of the nation” respond “pathetic”, “a matter of survival”, “in a state of flux”, “in semi-tough shape”, or “serious hard times”.

Others in the industry when asked about the “state of the nation” respond “pathetic”, “a matter of survival”, “in a state of flux”, “in semi-tough shape”, or “serious hard times”. Union tug and towboat companies are being frequently outbid and undercut by non-union outfits and there’s a feeling there will be more consolidation in coming months as some smaller operators call it a day and sell off their aging and largely idle fleets.

In 2010, Seaspan bought the tug and barge fleet of SMIT Marine Canada

Inc. — something Hedley calls “vintage assets” — as the Dutch-based group settled on ship-docking in B.C. waters.

“Our fleet was arriving at an average age where investment decisions were required to ensure the business continuity,” says SMIT Vice President & General Manager, Frans Tjallingii. “Given that the barging business is not part of the core business of the SMIT Group of companies, it was decided to sell the activity rather than invest.”

Many of SMIT’s employees found work with Seaspan as the towboat and barge fleet changed hands. That was the good news...but now Seaspan is assessing the usefulness of the acquisition in the longer term and Hedley says of his total fleet that “six out-of-service tugs are ready for the scrap yard when the time is right and others still tied up may end up on the scrap heap as well.”

In the current climate, any optimism is welcome and Hedley says the impact of the recent $8 billion non-combat shipbuilding contract to Seaspan and its two major yards in Vancouver and Victoria is good news for the province

December 2011/January 2012 BC Shipping News 23

TUG INDUSTRY and indirectly for the tug and towboat industry. When Seaspan is fully ramped up in the National Shipbuilding Procurement Strategy it will mean work will be deflected to smaller yards for tug and barge repair. Whether this will mean better deals for company owners and more incentive to upgrade or repair the ailing B.C. tug and towboat fleet is still conjecture.

Hedley, who has been with Seaspan Marine Corporation for just over a year, but a mariner since he was 16 years old, admits the tug and towboat industry recovery has been slow. He says the bounce back to the better years enjoyed before the 2008 recession has been muted by increasing raw log exports to China from B.C. forestry companies, which has led to direct loading onto ships instead of more processing in the province and more towing and tug work.

It has Seaspan looking for new work elsewhere up and down the coast — from the North West Passage in the Arctic to Mexico — and Hedley says the company has “made no secret of that”.

As well as ship-docking, and tug and

barge work, Seaspan also runs a freight ferry service to Vancouver Island and all three lines of business are currently down.

“Everyone is running equipment that is not worn out, but is old and expensive to maintain and there are not enough new builds coming into the fleet...”

Marine consultant Marc McAllister, a former Rivtow and Seaspan employee and a certified marine surveyor and architect, says the industry is generally in need of recapitalization but can’t afford it because companies have been working at rates that didn’t allow accrual of capital.

“Everyone is running equipment that is not worn out, but is old and expensive to maintain and there are not enough new builds coming into the fleet,” says McAllister. “It costs less to pay higher maintenance than to pay back new, more effective boats.”

Fuel is now the biggest cost, followed by labour, but it used to be the other

way around — depending on union or non-union crews.

“We are still in recession with $95-abarrel oil,” he adds. “I wouldn’t be surprised if oil doesn’t go to $125 a barrel in 2012.” McAllister suspects that if there is a significant business turn around in coming years there simply won’t be enough equipment available, forcing tug and towage rates higher so that owners can afford new builds once more.

For the smaller tug and towboat fleets — the heart and soul of the B.C. shipping industry many would contend — survival is on everyone’s mind these days.

At the family-run Catherwood Towing Ltd., of Mission, a fleet of 15 tugs has been cut to 12 and it has been two and a half years since the new build Sea Imp IX was pressed into service. Owner & President, Ernie Catherwood, says his company has been forced to diversify over the last decade with more barge movement, including aggregates.

Small outfits like Catherwood can offer personal service, but the crews are

Seaspan Marine Corporation — largest and most diversified tug and towboat company on the West Coast.

24 BC Shipping News December 2011/January 2012

Photo credit: Seaspan Marine Corporation

tug industry members of the Boilermakers Union of North America and Catherwood says it is “hard to compete with the non-union Mom and Pop tug fleets.”

Looking back, it has been a “fairly nice year” for work this year for Catherwood compared to the “serious hard times” when the global economy turned down. “We had to be smarter and more frugal,” he says.

Catherwood has been in business in B.C. waters since 1971 as a force in the log-towing business, which made up 100 per cent of its business 10 years ago. Now, log-towing has dropped to 50 per cent and barge-towing of aggregates, cement, and construction equipment makes up the other 50 per cent. The company even runs a ferry service for a logging company on Ootsa Lake, part of the Kemano Power Plant reservoir.

Ernie Catherwood is confident his company will be around for 20 years or more and he’s hopeful 2012 will be busier than 2011.

Ernie Catherwood is confident his company will be around for 20 years or more and he’s hopeful 2012 will be busier than 2011. “We can chase new business every day of the week, but the pen has to be awful sharp,” he muses.

Island Tug & Barge has been around in one form or another since 1925 and President & owner, Captain Bob Shields has 85 per cent of the petroleum distribution up and down the B.C. Coast, particularly to Vancouver Island. The company also hauls to Puget Sound and as far away as Oregon and California.

His company runs a fleet of 20 — eight tugs, eight tank vessels, three cable layers, and a single cargo vessel — handling oil barges, cable-laying duties, and general towing amid a labour cost scenario that he contends is possibly “the highest in the world.”

According to Shields, the state of many unionized tug and towboat companies is “very grim” and he doesn’t expect them to be in business for the long-term.

Island Tug & Barge has long-term contracts with major oil companies and will continue even though it is a struggle. But, Shields says he wouldn’t be surprised if tug and towboat companies relying on the forestry industry simply closed their doors in coming years.

For Larry Smith, General Manager of the Hodder Tugboat Co. Ltd., in Richmond, it’s a matter of survival, trying to hold your own in tough business conditions. With six of the eight tugs in his fleet tied up and largely not working, he’s lost a lot of crew to other companies, or they have left the industry.

One of the familiar log-towing outfits on the Fraser River, Hodder is unionized at a time when half the companies on the river are not. Hodder bought out Riverside Towing three and a half years ago and eventually sold off one of two properties it had on the Fraser to newcomer Ledcor Marine.

This has helped. “We are trying our best to do what we are good at and that’s log-towing,” says Smith. “Now we are saying let’s try to be great at it.”

Meanwhile, Ledcor Marine is new to the B.C. scene and has made an impact. Around mid-November 2011 it took delivery

“What the average tugboat worker puts in the bank each week isn’t outrageous, it’s the medical plan and the other benefits and extras...”

Shields says the state of the B.C. tug and towboat industry is “pathetic” and “it’s the worst I’ve ever seen and I’ve been connected with it the whole of my life and intimately since the late 1970s.” He also talks of excessively high domestic costs, poor markets and a lot more equipment available than there is work.

“What the average tugboat worker puts in the bank each week isn’t outrageous, it’s the medical plan and the other benefits and extras,” he adds. “The medical plan alone costs $900 per man per month,” in one union health benefit plan.

December 2011/January 2012 BC Shipping News 25

tug industry of 12 new chip barges built in China — one of the only new build projects to talk about in the industry.

President Grant Mebs says the barges are a first for Ledcor Marine, which has had four conventional, twin-screw Photo credit: Island Tug & Barge

Island Tug & Barge has been around in one form or another since 1925.

Photo credit: Dave Price, Tymac Launch Service Co. Ltd.

Companies like Tymac Launch Service who provide a diverse range of services are faring better than those focused on traditional log-towing.

Photo credit: SMIT Marine Canada

SMIT Marine Canada focuses its activities on ship-docking and harbour towage.

26 BC Shipping News December 2011/January 2012

tugs for the past three and a half years.

The new barges are for an expanding wood chip business on the Fraser out of Mission where Chilliwack-based Renew Resources Inc. is upgrading its Silverdale loading dock. The company also has a contract with Le High Cement to haul aggregate and cement to Vancouver Island once or twice a week.

While he admits the B.C. tug and towboat industry is “far from booming,” Mebs is confident “there are some niches that can be serviced appropriately and properly” by Ledcor Marine.

And bad times aren’t a major setback for Ledcor, which deliberately opted to enter a depressed B.C. industry three years ago. “We saw opportunities and felt things would grow,” says Mebs.

Ledcor started in ship-docking and is now heavily into barge work.

For SMIT Marine Canada Inc., with its focus on ship-docking and harbour towage for its fleet of 23 tugs, the ups and downs of world markets have seen Port Metro Vancouver ship-calls fluctuate and has made Vice President & General Manager Frans Tjallingii “very hesitant” to speak out too much about the future.

“There are too many signs of a weakening global economy to be optimistic,” he says. “Given the relatively high fleet age in the industry and the difficult economic outlook, the health of the towboat industry as a whole is questionable.”

The only real opportunity he sees ahead is for servicing the recently approved LNG Terminal in the Port of Kitimat.

“That is a challenging environment to work in and we know there will be heavy competition for those projects,” says Tjallingii.

Ray Dykes is a former journalist who has worked his way around the world.

He is now based in Nanaimo as a writer/ photographer.

Ray can be reached at prplus@shaw.ca.

MARINE CARRIER directory COUNCIL OF MARINE CARRIERS

#200 - 1575 West Georgia Street Vancouver, B.C. V6G 2V3 T: 604-687-9677 / F: 604-687-1788 Contact: Phill Nelson/Teresa Ledesma (cmc@comc.cc) Web: www.comc.cc

Catherwood Towing

101 - 32885 Mission Way Mission, B.C. V2V 6E4 T: 604-826-9221 F: 604-826-9223 Contact: Ernie Catherwood (erv@catherwoodtowing.com) Web: www.catherwoodtowing.com Area of operation: Fraser River and B.C. Coast Fleet: 11 tugs: 5 single screw (400 hp); 2 shallow draft (twin screw); 1 twin screw (800 hp); and 3 twin screw (1,000 hp) Services: Log boom towing, aggregate barging and equipment moving.

CHASE TOWING & SALVAGE 901Arden Road Victoria, B.C. V9B 5B4 T: 250-478-5868 F: 250-478-7211 Contact: Gerald Roberts (robertsmarine@telus.net)

D.H. TIMBER TOWING

322 Coal Harbour Road Coal Harbour, B.C. V0N 1K0

T: 250-949-6358 (admin) T: 205-949-1201 (direct) F: 250-949-9886 Contact: Lionel Hole (dht@recn.ca or dht@telus.blackberry.net) Area of operation: Quatsino Sound Fleet: 2 tugs (450 hp and 360 hp); 3 12-passenger crew boats

False Creek Tugboat Ltd

433 W. 17th Avenue Vancouver, B.C. V5Y 2A1 T: 604-874-6520 Contact: Mary-Liz Bancroft (fctl@hotmail.com) Web: www.falsecreektugboats.com

FMW Towing Ltd.

14 Orwell Street North Vancouver, B.C. V7J 2G1 T: 604-985-0656 (24/7 tug dispatch: 604-968-2867) F: 604-990-0593 Contact: Wayne Fonda (wfonda@pactow.com) Area of operation: West Coast of Canada; Southeast Alaska to Puget Sound; Fraser and Pitt Rivers from the mouth to Mission Fleet size: Coastal (continuous operation) tugs: Pacific Chief (1,220 hp); Pacific Mariner (1,130 hp); River tugs (12-hour shifts): Westview Chinook (1,000h hp); Storm Crest (850 hp) Services: Tug and barge; marine transportation of bulk dry cargos.

Fraser River Pile and Dredge (GP) Inc.

1830 River Drive New Westminster, B.C. V3M 2A8 T: 604-522-7971 F: 604-521-7530 Contact: Tom Lively (TLively@frpd.com) Web: www.frpd.com Area of operation: Western Canada Fleet: 40 (1 hopper dredge; 9 derricks/ crane scows; 3 cutter suction dredges; 1 portable sectional scow; 1 fuel barge; 16 flat scows; 3 hopper barges; 6 survey/ tending boats) Services: Hydraulic & clam shell dredging; pile driving; marine construction; heavy lifts.

Harken Towing Co. Ltd.

P.O. Box 7 Port Coquitlam, B.C. V3C 3V5 T: 604-942-8511 F: 604-942-4914 Contact: Manager: John Bowles (john@harkentowing.com) Towing inquiries: dispatch@harkentowing.com Web: www.harkentowing.com Area of operation: Fraser and Pitt Rivers, Salish Sea, Vancouver Harbour and Howe Sound Fleet: 16+ (10 tugs; 6 water taxis; several small barges) Services: Log towing; fresh water log storage; sawmill log yarding service; log barging; general barge towing; ramp barge towing; water taxi service; fuel dock.

Hodder Tug Co. Ltd. 16031 River Road Richmond, B.C. V6X 1X5 T: 604-278-2821 F: 604-273-0706 Contact: Ben Wendland

December 2011/January 2012 BC Shipping News 27

marine carrier directory (Ben@hoddertug.com) Web: www.hoddertug.com Area of operation: Southern coast of B.C. (from Washington to Alaska) and the Fraser River Fleet: 10 tugs from 9 metres to 22.5 metres with 375 to 1,400 hp; 2 3,000-tonne barges.

Services: Log and barge-towing.

Inlet Navigation(1985) Ltd.

P.O. Box 726 Campbell River, B.C. V9W 6J3 T: 250-287-4311 F: 250-287-4315 Contact: Neil Watson (Inletnavigation@telus.net) Web: http://inletnavigation.com Area of operation: Vancouver to Prince Rupert Fleet: 2 tugs: Coast Destination (18.71 m length) and BelleIsle Sound (19.29

m length); 1 self-propelled barge (27.43 m length); 2 ramp barges (60.99 m and 45.72 m length) Services: Scheduled and chartered services for delivery of gas, diesel, jet A, propane and lubricants; freight transport.

off-shore and salvage); oil transportation; deck cargo transportation; cable laying and repair; submersible ROV and diving services; petroleum sales.

Island Tug & Barge

Lafarge Canada

55 Rogers St Vancouver, B.C. V6A 3X8 T: 604-873-4312 F: 604-873-4318 Contact: Bob Shields (Bobs@islandtug.com) Web: www.islandtug.com Area of operation: West Coast of North America and the Western Arctic Fleet: 8 tugs; 8 tank vessels; 1 cargo; 3 cable layers Services: General towing (near shore,

28 BC Shipping News December 2011/January 2012

Jones Marine Services Ltd. 9871 Esplenade Street P.O. Box 29 Chemainus, B.C. V0R 1K0 T: 604-669-3900 F: 250-246-3388 Contact: Daryl Jones (daryl@jmstugs.com)

2300 Rogers Avenue Coquitlam, B.C. V3K 5X6 T: 604-207-0740 F: 604-521-6943 Contact: Josh Handley (josh.handley@lafarge-na.com) Web: www.lafarge-na.com

Mercury Launch & Tug Ltd. 6695 Nelson Avenue West Vancouver, B.C. V7W 2B2

marine carrier directory T: (604) 921-7451 F: (604) 921-7481 Contact: Rob Errington (rob@mercurylaunch.com) Web: www.mercurylaunch.com Area of operation: Howe Sound, Gulf of Georgia, Fraser River, Puget Sound Fleet: Water taxis (with capacities of 12 to 40 passengers); tugs; freight, bulk and ramp barges; Services: Water taxi service; tug and towing (lumber, aggregate, disposal bins, fuel, propane and heavy equipment); propane delivery.

Services: Fuel delivery; towing; freight and machinery transportation; yarding services; tug and barge repairs; fishing lodge supply and support; helicopter logging support; oil spill response capability.

Pacific Towing Services Ltd. 14 Orwell Street North Vancouver, B.C. V7J 2G1 T: 604-990-0591 F: 604-990-0593 Contact: Gordon Wilson (gwilson@pactow.com)

Seaspan Ferries Corporation North Arm Transportation Ltd.

2582 Kent Avenue East Vancouver, B.C. V5S 2H8 T: 604-321-9171 F: 604-322-5010 Contact: Gino Stradiotti (gino@northarm.bc.ca) Web: www.northarm.bc.ca Area of operation: Coastal B.C. including Portland Inlet, the Queen Charlotte Islands/ Haida Gwaii, West Coast of Vancouver Island, Puget Sound and Southern Alaska Fleet: Tugs from 400 to 1,500 hp; general cargo barges; freight/fuel barges and helisupport barges

7700 Hopcott Road Delta, B.C. V4G 1B6 T: 604-940-7227 F: 604-940-7236 Contact: Steve Roth (sroth@seaspan.com) Web: www.seaspan.com Area of operation: Coast of B.C./ Vancouver Island Fleet: 5 Ro-Ro vessels Services: Scheduled drop trailer service between mainland Vancouver and Vancouver Island (Nanaimo and Swartz Bay).

Passionately Delivering the Best Marine Solutions.

Seaspan Marine Corporation

10 Pemberton Avenue North Vancouver, B.C. V7P 2R1 T: 604-988-3111 F: 604-984-1615 Contact: Doug Towill (dtowill@seaspan.com) Web: www.seaspan.com Area of operation: Western North America Fleet: 47 tugs (12 tractor tugs; 15 harbour/river tugs; 15 coastal tugs; 5 ocean class tugs); 113 barges (3 log; 76 chip; 4 charter; 6 covered; 1 oil; 3 rail; 16 flat-deck; 3 bulk carriers; 1 chemical) Services: Coastal, deepsea and general towing, including ship-docking/escorting and full fire fighting capabilities. Also provide first responder emergency towing services throughout B.C. coastal waters.

Passionately Delivering the Best Marine Solutions.

SMIT Marine Canada Inc. Subsidiaries:

SMIT HARBOUR TOWAGE VANCOUVER INC. SMIT HARBOUR TOWAGE NORTHERN BC INC. SMIT HARBOUR TOWAGE WESTMINSTER INC.

2285 Commissioner Street Vancouver, B.C. V5L 1A8 T: 604-255-1133 / F: 604-251-0213 Contact: Frans Tjallingii (f.tjallingii@smit.com) Web: smit.com Area of operation: All major ports in B.C. Vessels are stationed in Vancouver, New Westminster/Fraser River, Prince Rupert and Kitimat Fleet: 23 tugs varying from 600 to 6,700 hp. Tugs available to match ship-docking, assistance and tanker escort needs as well as emergency assistance and salvage along the B.C. Coast.

Services: Ship-docking/undocking; (tanker) escort services; fire fighting; emergency assistance; salvage.

December 2011/January 2012 BC Shipping News 29

marine carrier directory

Tymac Launch Service Ltd.

North Foot of Main Street Vancouver, B.C. V6A 3Y5 T: 604-681-8628 (admin) T: 604-685-0756 (24 hour) F: 604-685-5853 Contact: Mitch Flesher (tymaclaunch@tymac.ca) Web: www.tymac.ca Area of operation: Burrard Inlet including Vancouver Harbour, Indian Arm and Howe Sound; Lower Gulf of Georgia and Gulf Islands Fleet: 11 passenger launches; 1 cargo launch; 6 tug boats; 8 barges (including 1 ramp/deck barge; 2 grey/blackwater deck barges) Services: Pilot boarding/disembarkation; water taxi service; marine towage services; cruise vessel waste removal; transportation of ship’s stores; barge loading ramp SWL 66 tonnes; fresh water delivery to deepsea vessels; sludge oil/ bilge water removal (water and dock side service).

to13.1 m/1,000 hp); 1 crew boat (12.2 m/300 hp); 10 barges (ranging from 14.6 m to 54.9 m) Services: Tug and barge services; towing.

Fleet: 3 oil barges Services: Carriage and delivery of bunkers to vessels with various grades of IFO/HFO and MGO/MDO as required.

West Coast Fuel Transport Ltd.

WFP Quatsino Navigation Co. Ltd.

Suite 1450 - 1066 West Hastings Street Vancouver, B.C. V6E 3X1 T: 604-685-6221 F: 604-685-7329 Contact: David Manz (bunkers@ICS-VCR.com) Area of operation: Port of Vancouver; Fraser River; Port of Nanaimo

Valley Towing Ltd.

P.O. Box 2110 New Westminster, B.C. V3L 5A3 T: 604-526-8515 F: 604-526-8555 Contact: Kim Aliprandini (valleytowing@telus.net)

Wainwright Marine Services Ltd. P.O. Box 10 Prince Rupert, B.C. V8J 3P4 T: 250-624-9858 F: 250-624-5473 Contact: David Dalzell or Chrystal Hiller (wms@citytel.net) Web: www.wainwrightmarine.com Area of operation: Mid to NW Coast of B.C.; Haida Gwaii; Alaska Fleet: 6 tugs (ranging from 7.3 m/300 hp

30 BC Shipping News December 2011/January 2012

Box 6000 Port Alice, B.C. V0N 2N0 T: 250-284-6222 F: 250-284-6644 Contact: Harold Mercer (hmercer@westernforest.com) Web: www.westernforest.com

marine carrier directory CMC Affiliate Members

AON Reed Stenhouse Inc.

900 Howe Street - PO Box 3228 Vancouver, B.C. V6B 3X8 T: 604-443-2434 / F: 604-682-4026 Contact: Doreen Egger (doreen.egger@aon.ca) Web: www.aon.ca Services: Insurance broker and risk consulting.

Mill Log Marine

6741 Cariboo Road - Unit 205 Burnaby, B.C. V3N 4A3 T: 604-879-6731 / F: 604-879-6744 Contact: Sandy Bourquin (bourquin.sandy@milllog.com) Web: www.milllog.com Services: Authorized Twin Disc distributor (marine transmissions, engine controls, PTOs — parts and service); authorized Thordon Bearings distributor (greaselees shaft bearings, rudder bearings, pintle bearings).

Bull, Housser & Tupper LLP

3000 Royal Centre - PO Box 11130 - 1055 West Georgia Street Vancouver, B.C. V6E 3R3 T: 604-641-4886 / F: 604-646 2669 Contact: Merle McKenzie (mem@bht.com ) Web: www.bht.com Services: Law firm.

Robert Allan Ltd.

230 - 1639 West 2nd Avenue Vancouver, B.C. V6J 1H3 T: 604-736-9466 / F: 604-736-9483 Contact: Robert Allan (ral@ral.ca) Web: www.ral.ca Services: Naval architecture.

Chevron Canada Ltd.

#1200 – 1050 West Pender Street Vancouver, B.C. V6E 3T4 T: 604-668-5571 / F: 604-668-5588 Contact: Ben Boon (benboon@chevron.com) Web: www.chevron.ca Services: Commercial fuel and lubricants.

City Transfer

7141 Duncan Street Powell River, B.C. V8A 1W3 T: 604-310-2489 (Outside of BC: 866-310-2489) F: 604-485-7542 Contact: Phil Long (phillong@citytransfer.com) Web: www.citytransfer.com

CMW Insurance Services Ltd.

700 – 1901 Rosser Avenue Burnaby, B.C. V5C 6R6 T: 604-294-3301 / F: 604-294-3003 Contact: Jordan Bannister (jbannister@cmwinsurance.com) Web: www.cmwinsurance.com Services: Insurance brokerage.

Tidal Transport & Trading Ltd.

2717 Murray Street Port Moody, B.C. V3H 1X1 T: 604-939-3383 / F: 604-939-2289 Contact: Ron Brinkhurst (brinkhurst@tidaltransport.com) Web: www.tidaltransport.com Services: Stevedoring; port captaincy; supercargo, cargo and vessel surveying; and hold cleaning services (see also: Tymac Launch Service Ltd.).

Willis Canada Inc.

1500-1095 West Pender Street Vancouver, B.C. V6E 2M6 T: 604-683-6831 / F: 604-683-5746 Contact: David Leitch (David.leitch@willis.com) Web: www.willis.com Services: Global insurance broker offering specialist marine, transportation and general risk management advice and solutions.

December 2011/January 2012 BC Shipping News 31

shipbuilding

Seaspan Marine and the NSPS: Creating a legacy and putting Canada back in the shipbuilding game.

An interview with John Shaw, Vice President, Program Management, Seaspan Marine Corporation

A

fter 18 months, developing a bid that contained 25,000 pages and cost over $2.0 million to produce, Vancouver Shipyards Co. Ltd. was successful in securing the contract for the non-combat vessel portion of the National Shipbuilding Procurement Strategy. In this exclusive interview with John Shaw, Vice President, Program Management for Seaspan Marine Corporation, BC Shipping News looks at the background on the bid process, the moment of the announcement and, most importantly, what happens now…

BCSN: Could you describe the process to develop the bid?

JS: After the federal government announced the NSPS at CANSEC in June 2010 for 28 ships at a budget of $35 billion, an Industry Day was held in August, followed by a Solicitation of Interest and Qualifications in September. Five successful shipyards were announced in October — Peter Kiewit, Irving, Davie, Upper Lakes Marine Industrial and ourselves and between October and January

2011, each company was visited by First Marine International (FMI) — a British consulting firm who are world experts in shipyard layout production and efficiencies. They carried out a benchmarking exercise which looked at the current status and future capability of just over 150 elements — things like steel-cutting, pipe-fitting, machine shop, engineering design, human resources, supply chain, and marketing. Each element received an evaluation score between zero to five. FMI also worked with the federal government to set target states for each element. We received the final evaluation report from FMI in March 2011 and that report formed the basis of a lot of the work that went into the bid.

The proposal was broken into five areas: 1. The mandatory section (which is not rated) for issues such as demonstrating solvency and agreement to abide

by Canadian laws.

2. Current state and plans to meet the target state. The current state was based upon the FMI evaluation and

32 BC Shipping News December 2011/January 2012

the target state provided the goal we needed to achieve. The main purpose here was to improve capability and productivity.

We needed to demonstrate our commitment to support the marine shipbuilding industry now and into the future...

3. The cost to achieve the target state and how much of that would be a cost to Canada. We’re planning on investing between $100 to $200 million in facilities both here and in Victoria and I believe it’s already public knowledge that there will be no cost to the Canadian taxpayer as long as the federal government commits to building all seven vessels.

4. Financial capability — we had to demonstrate the financial strength of the company and the ability to obtain funds for infrastructure and future new builds.

5. Value propositions. This was the most interesting section and will have

shipbuilding the greatest long-lasting impact. We needed to demonstrate our commitment to support the marine shipbuilding industry now and into the future through human resources development, technology development and industrial development. For example, in the human resource category, we outlined plans for sponsoring and supporting apprenticeship programs to train a new generation of shipbuilders; we also plan to develop a curriculum and program that would train people to become planners, schedulers and estimators. We’ve been talking with BCIT about this and estimate a timeframe for implementation somewhere near 2013-14. We want to develop a curriculum that is broad-based so it can involve more people. We’ll also be supporting the Engineering Program at UBC to enhance the Naval Architecture Program. Within the technology category, we focus on materials, new processes, new techniques and what has the best and biggest impact on improving shipbuilding or improving the materials that come into shipbuilding. And in the industrial development category, we look at improving the supply chain in Canada — whether it is equipment, material or services — so that individual manufacturers in the country are competitive worldwide.

As per any large government contract, you have to meet the Industrial Regional Benefits Policy to demonstrate 100 per cent Canadian value.

Obviously, there will be a need to spend some of the money on supplies or services that are not available in Canada but there is a formula and process in place to ensure offsets can be made — for example, suppliers would invest in Canada or we would invest in training programs. It’s a fairly standard policy that has been in place a long time.

BCSN: I noticed that the bid was submitted under the name of Vancouver

Shipyards Co. Ltd., not Seaspan Marine Corporation. Why was that done?

JS: There were two requirements within the Solicitation of Interest and Qualifications — first, that we be a Canadian shipyard; and second that we have delivered a ship (or have one under contract) over 1,000 tonnes within the last 10 years, and Vancouver Shipyards qualified under both of those. We built the M.V. Island Sky for BC Ferries in 2008 and that vessel is just over 4,000 tonnes.

BCSN: Regarding the evaluation of the bids, the scores released on the

government’s website are: For the combat contract: 82.8 per cent for Irving Shipyards and 74.9 per cent for Vancouver Shipyards; for the non-combat contract (which Irving, having just won the combat contract, was removed from the process): 76.8 per cent for Vancouver Shipyards and 63.2 per cent for Davie Shipyards. Are you able to provide insights into where your strengths and weaknesses lay compared to Irving or Davie?

JS: No. We all signed non-disclosure agreements but the results were explained to us. The process was very open

Seaspan Marine Corporation Vancouver Shipyard workers celebrating the announcement of the $8 billion contract.

Left to right: Seaspan Marine Corporation CEO Jonathan Whitworth, BC Minister of Tourism, Jobs and Innovation Pat Bell, VP, Program Management John Shaw, and Seaspan Executive Chairman Kyle Washington.

December 2011/January 2012 BC Shipping News 33

SHIPBUILDING and very fair. When we looked at it, we were satisfied with our scores. Kudos to Irving Shipyards — they’re a good shipyard and a good company. At the end of the day, we have eight billion reasons to be happy. We’re happy with how things worked out. Plus, there are another 24 vessels that should fall under the noncombat build program that have yet to be funded. We are hoping the federal government moves ahead with funding for those additional vessels as that will

increase our award amount and timeline by several decades.

BCSN: Could you provide some details on the support you received from the provincial government as well as other partners?

JS: The provincial government received some criticism because they seemed to be late to the game but to put this in perspective: Just at the time we were ramping up to garner support, they changed leadership. The premier, once elected, was fully onboard — her

first speech in the legislature was about the shipbuilding program and her support for Seaspan. They will help fund the apprenticeship program. There is an existing program in place, but they will be extending and enhancing that program to help bring more young people into the industry.

David Hahn, President & CEO for BC Ferries, publicly announced his support for the bid early in the process.

He’s supporting the value proposition

Vancouver Shipyards facility layout: seven of the nine shipyard buildings will be new (all except the Flat Block Assembly Building and the Plate & Profile Forming Building).

34 BC Shipping News December 2011/January 2012

SHIPBUILDING because he sees the long-term benefits. This will have a significant impact on the shipbuilding industry and the marine industry in Canada overall. It will be a benefit to all of us, from Allied Shipyards to Point Hope, as well as BC Ferries, Upper Lakes Shipping, Algoma.

It will help everyone because of the improvements that will be seen in the supply chain; because of the increase in training opportunities and having more people available in the industry; and because of the increase in facilities and technology.

The NSPS was not just about the price of the ship — it was all about selecting two companies who were willing to

An artist’s rendering of the new facilities at Vancouver Shipyards.

make the investment to become worldclass shipyards.

The NSPS was not just about the price of the ship — it was all about selecting two companies who were willing to make the investment to become worldclass shipyards. Canada wanted to get best value and how do you do that? You improve productivity and you allow people the opportunity to invest — if you have a steady job, you’ll buy a house, you’ll buy a car. You’re investing. Same with us. If we have the prospect of longterm work, we will invest. This allows us and Irving to invest in facilities so that we have world-class capability and can provide best value to Canada. We can’t compete on labour on the international stage, but we can on productivity.

Having long-term prospects of work so that you can invest in new equipment, facilities and people; and maintaining a certain volume of work are the cornerstones of promoting productivity.

BCSN: Easy one: Describe the moment you heard the news.

JS: There were six of us in the room when we received the first call at 12:05 pm on October 19. This was the fiveminute warning before receiving the call with the official announcement.

Victoria Shipyards will get a new building on the south jetty.

And then after five minutes, it turned into six, then seven, then eight minutes. Finally, Jonathan gets the call, says ‘uh-huh, uh-huh’, with no change in expression and then he said: “We would be happy to build the non-combat ships for Canada” and the room just erupted.

When the government made the announcement public, there was actually a

company-wide eruption because we had set up small events throughout the company — Victoria had the radio blasting across the yard. You go into this with a strong belief that the bid you put in and the work you put into it was the best you could do but there’s still that nervousness and anticipation until you actually hear.

December 2011/January 2012 BC Shipping News 35

SHIPBUILDING BCSN: Now what?

JS: Now, we’re heading down three or four different paths simultaneously.

We’re preparing for negotiations with the government for the umbrella agreement which is an over-arching agreement spelling out how we will work together now and into the future.

BCSN: Once that’s signed, does that mean that future governments can’t alter arrangements?

JS: No. There’s always that uncertainty. The government can’t commit to building things in the future if it doesn’t have the money and priorities change.

Once we sign the umbrella agreement, the government will supply the design package for the first project which will be a set of drawings and specifications.

This will be for the Offshore Fisheries Science Vessel (OFSV) which has already been designed by RALion (A

Leading by Design www.ral.ca

36 BC Shipping News December 2011/January 2012

Robert Allan Ltd./Alion Science and Technology Joint Venture). We will go through a series of steps with this — a design check to agree with the engineers and architects who designed the vessel; we’ll have to do some engineering work ourselves for things like selection of equipment and integration of specific equipment into the ship; then we’ll have to prepare an estimate and negotiate that estimate and the contract. Contracts will be established on a project by project basis.

In terms of timeline, the umbrella agreement will be worked on from now until the end of the year. I would estimate the turnaround cycle for getting into contract with the Canadian Coast Guard for the OFSV will be four to six months. After we have the contract, we’ll have to do the production design and build strategy which should take another six months so we’ll be looking at cutting steel on the first vessel by this time next Authorization: year. After that, we will start overlapping projects — you start one, get into it for a certain period of time and then start the next.

Jim:________________ BCSN: Let’s discuss the vessels. The contract calls for two Joint Support Ships (JSS) (with the option of one additional), Mike:_______________ one Offshore Oceanographic Science Vessel (OOSV), three Offshore Fisheries Science Vessels (OFSV) and one Polar Icebreaker.

Which will be most challenging?

Ken:________________ JS: For sheer size, it will be the Joint Support Ships. For complexity, probably the Polar Icebreaker because of the scantlings Rob:________________ — i.e., the structure that goes into the ship. Interestingly, the last icebreaker built for Canada was the Henry Larson in 1988 at Burrard Yarrows so it’s appropriate that the new one be built here. I also did sea trials on the Henry Larson back in 1988 — a funny coincidence and great example that sometimes in life, things come full circle.

BCSN: How will the work be split between Vancouver and Victoria and what sort of timelines are we looking at for deliveries?

SHIPBUILDING JS: The intention is to construct the ships in Vancouver. Most of the steelwork and a lot of the outfit work will be done here and once it can be launched, we would then tow it to Victoria where they will complete the outfit right through to final tests and trials. In the meantime, Victoria will continue on with the FELEX (Frigate Life Extension Program) and VISSC (Victoria Class [Submarine] InService Support Contract) and we expect to have work start on HMCS Protecteur next year which will last until late 2013.

For delivery dates, the OFSVs should be in service by 2015; the OOSV is expected for 2014; followed by the JSS’ and then the Polar Icebreaker.

BCSN: Could you describe the plans for infrastructure upgrades?

JS: For Vancouver, we actually started the process of developing the preliminary engineering on all of the buildings during the bidding exercise of the Joint Support Ship in 2007. Even though that bid was never awarded, we have structural, electrical and mechanical foundation drawings that are new and can be applied here. We need to complete detailed engineering — take the conceptual drawings and first stage drawings and, at the same time, go through a permitting process with both the District of North Vancouver and Port Metro Vancouver. Once we get permits, then it’s shovels in the ground by the middle of next year. It will take two to two and half years starting right now.

There are seven new buildings planned (see detailed photo on page 34). The largest and most complicated will be the Grand Block Assembly Building (GBAB). The building will contain two 60-tonne overhead cranes and one 20-tonne overhead crane so you have the capability of lifting up blocks of 120 tonnes. Essentially, steel panels will come into the Flat Block Assembly Building and the Curved Block Assembly Building where they will be joined to form blocks. The blocks then go to the paint shop, then taken to the GBAB and joined together to form hull

sections. From there, they are taken out to the building berth and put together.

The ship is joined together and put on wheeled vehicles to be moved out onto the floating drydock.

For Victoria, one new building facility on the south jetty is planned. Offices, shops, accommodation areas for staff and workers will be included here as well. The timeline for Victoria is from 2012 through to 2013.

This is a fabulous opportunity to provide a long-lasting legacy for the shipbuilding industry on the West Coast.

BCSN: Do you have an estimation of staffing levels and timing?

JS: We have already started advertising for positions and we have incremental increases planned that will eventually double our workforce — both hourly and yearly, office and shop floor. We will need close to 400 people by 2013, primarily for Vancouver and this could swell up, depending on build schedules, to close to 1,000 people by 2015.

Victoria already has 700 to 800 people and will increase to about 1,000 next year when we start the refit on HMCS Protecteur. The first work in Victoria will probably be in late 2013 which fits in well with the completion date on Protecteur work.

Just recently, we announced a new contract to build six new chip barges for Seaspan and this will allow us to maintain our current workforce and start developing those practices and techniques that will make us successful on the NSPS. BCSN: Before we wrap up, is there anything else you’d like to add?

JS: This is a fabulous opportunity to provide a long-lasting legacy for the shipbuilding industry on the West

Coast. We need to be successful on the first ship and build on that. Also, this has been a very unique government process. As we move forward and work with the federal government to understand each other’s needs, it will be a tremendous benefit to both government and industry. Oh, and if I didn’t do it earlier, just another nod and thank you to all of the people involved in getting us to this point — both internal staff and external resources, partners and supporters. We are all sharing in this victory.

John Shaw joined the Seaspan Marine Corporation in September 2007 as Vice President, Process Improvement, bringing over 30 years’ experience in the marine industry. In 2010, he took on the role of Vice President, Program Management, in charge of developing and implementing strategies to secure future government shipbuilding work.

Prior to joining Seaspan, John worked and held technical and management positions with Yard Inc., Lloyd’s Register and Thordon Bearings. He holds a B.Sc. in Mechanical Engineering from Queen’s University a M.Sc. in Marine Engineering from the University of Newcastle. BCSN

The sign at Victoria Shipyards says it all.

For more details and updates, visit www.seaspan.com or www.seaspanfornsps.com.

December 2011/January 2012 BC Shipping News 37

SHIPBUILDING The non-combat vessels of the NSPS contract...

Two Joint Support Ships

The JSS’ will replace the current Auxiliary Oiler Replenishment vessels (like HMCS Protecteur as shown left) and will provide underway support to naval task groups, limited sealift, and support to forces ashore. They will provide fuel, ammunition, spare parts, food, water and other supples; will contain medical and dental care facilities as well as repair facilities and expertise to keep helicopters and other equipment functioning plus basic self-defence functions. (Source: DND) Photo credit: Cpl Roderick Hopp, Esquimalt Imaging Services

Three Offshore Fisheries Science Vessels

Intended to replace CCGS Teleost, Templeman/Needler and Ricker (above), the OFSV will conduct fishing and acoustic surveys in the Northern Atlantic and Pacific Oceans. Initial vessel specifcations are a length of 65 metres with a draft of 6.5 metres and a design speed of 14 knots. The vessels will be capable of carrying a crew of approximately 25 plus 18 scientific staff and stay at sea for up to 40 days without reprovisioning. (Source: DFO)

One Offshore Oceanographic Science Vessel

The OOSV will replace CCGS Hudson (above) and will conduct multi-disciplinary physical, chemical and biological expeditions in the Atlantic and Arctic Oceans. It will carry a crew of approximately 28 with room for 31 scientists. Initial specifications call for a length of 90 metres and it will be capable of remaining at sea for several months. Increased efficiencies onboard include automation in the machinery spaces and an integrated bridge. (Source: DFO)

One Polar Icebreaker CCGS John G. Diefenbaker National Icebreaker will replace CCGS Louis S. St-Laurent (above) which is expected to be decommissioned in 2017. At a length of between 120 to 140 metres, the Polar Icebreaker will carry a complement of 100 personnel and accommodation for 25 additional people. It will also be able to accommodate two helicopters and has large cargo-carrying capacity. When completed, the new flagship Polar Icebreaker will be the largest and most powerful vessel Canada has ever owned. (Source: CCG) 38 BC Shipping News December 2011/January 2012

SHIPBUILDING

NSPS and the Pacific Coast

By Peter Cairns, President, Shipbuilding Association of Canada

T

he selection of Seaspan Marine Corporation to build the NSPS non-combatant package has been deservedly greeted with enthusiasm.

One five-minute telephone call has changed an uncertain future to one of prosperity for the Pacific shipbuilding and industrial marine industries.

After much hard work and significant investment, a major milestone has been reached. But like a hockey team that has won the first game of the Stanley Cup final there are more games to play and no time to rest on one’s laurels. The negotiation of an umbrella agreement followed by the contract for the first ship projects still need to be negotiated.

Some of the issues involved in these two negotiations will include access to the company’s books by the government, the financial requirements that the shipyard must meet, agreement on the Value Proposition and industrial regional benefits and the assumption of risk by the contractor.

The Value Proposition is unique to NSPS but, in my view, it is destined to become standard operating procedure in future procurements. The Value Proposition requires the contractor to show how his participation in NSPS will benefit Canada. It is not an abstract concept and requires the shipbuilder to provide measurable progress to the

government. The bottom line for the shipbuilder is that he must pay for the cost of implementation of the Value Proposition.

The value proposition...is not an abstract concept and requires the shipbuilder to provide measurable progress to the government.

A key issue in the negotiations will be how risk is distributed. The government has demonstrated its aversion to risk in the past by passing as much risk as possible to the contractor. This

additional cost is then passed back to the government via the contract price.

The Association position is that the government and the contractor should share risk where it makes sense to do so.

A dynamic industrial marine sector is a part of the Pacific marine scene. More than 35 companies inhabit the Lower Mainland and provide tools and equipment for shipbuilders and shippers.

Vancouver is Canada’s largest port and Prince Rupert is making a competitive splash. Victoria Shipyards has established itself as a cruise ship refit and repair facility of choice. NSPS has added predictability and continuity to the equation.

December 2011/January 2012 BC Shipping News 39

SHIPBUILDING The benefits of NSPS have been expressed in terms of jobs and impact on the economy. The press has reported investments beginning immediately of $130 million in Vancouver Shipyards and $30 million in Victoria Shipyards. In addition, it is reported that 4,000 direct and indirect jobs will result. Extrapolate that 4,000 figure over 30 years and that becomes a very significant number of person-hours of work.

There are many other areas that will be positively affected by NSPS. 1. Training and Education: Universities and colleges that provide courses in marine sciences, naval architecture and marine engineering and technology should see an increase of interest in marine subjects. Indications are that technical colleges are already looking at how to deal with increased enrolment;

relates to maritime security will be strengthened; 6. Industry: Shipbuilders and industrial marine companies will be able to leverage their expertise into other commercial market opportunities; 7. Canada: Canada and its communities will reap the tax, economic and social benefits that will accrue; and 8. Productivity: Through production efficiencies, the cost per ship unit will decrease.

While this article focuses on the Pacific region, the benefits to the whole of Canada should not be discounted. It is the Canadian citizen who is the ultimate beneficiary of NSPS. Peter Cairns (Vice-Admiral, retired) served in the Canadian Navy for 39 years, retiring in 1995. His sea commands

2. Research and Development: Canada has good capability in marine sciences but little, if any, work is being done on ship production and processes. With millions about to be spent on equipment and infrastructure, the scientific community could prove to be a valuable asset in setting the industry on the right course. Some Canadian technology will be destined for international sales. Demonstrating and proving Canadian designed technology destined for export or to be incorporated on our new vessels is also a useful role for the R&D community; 3. Modern Capability: Naval and Coast Guard ships will be more modern and thus more capable of meeting the changing demands of sovereignty patrol and ultimately conflict; 4. Cash Flow: Federal government outlays and the DND budget and cash flows (including the Army and Air Force) will be more manageable and predictable; 5. Defence Industrial Base: The defence industrial base as it 40 BC Shipping News December 2011/January 2012

included the submarine Onondaga, the destroyers Fraser and Margaree, the 1st Submarine Squadron and the 5th Destroyer Squadron. In his senior appointments he served as Assistant Chief of Staff for Operations to the NATO Supreme Allied Commander Atlantic (SACLANT) and as the Commander of Maritime Forces Pacific.

His last posting was as Commander of Canada’s Navy. In 1997 he was appointed President of the Shipbuilding Association of Canada, a position he still holds. He also serves as President of the Canadian Institute of Marine Engineers and as a member of the Germanischer Lloyd North America Committee, the Advisory Board of the Institute of Ocean Technology and the Defence Industry Advisory Committee. He has recently taken a position on the Board of Directors of the Savannah Ocean Exchange.

Admiral Cairns is a Commander in the Order of Military Merit.

Representing the interest of Canadian companies involved in: • Shipbuilding and ship repair • The fabrication of offshore marine structures and components • The manufacture and distribution of marine equipment and products • Naval architecture and marine engineering • Marine systems integration, project management and logistics support Shipbuilding Association of Canada Suire 1502 - 222 Sparks Street Ottawa, Ontario K1V 5P9 T: 613 232 7127 www.shipbuilding.ca

MARINE SAFETY MANAGEMENT

Expert independent oversight: The Transportation Appeal Tribunal of Canada

By K.Joseph Spears

T

he Transportation Appeal Tribunal of Canada (TATC) is an independent quasi-judicial federal administrative tribunal set up to deal with specialized matters arising in the transportation field out of a variety of federal transportation statutes. The TATC provides an independent review process for anyone who has been given notice of an administrative or enforcement action taken by the Minister of Transport. The TATC was enacted under the Transportation Appeal Tribunal of Canada Act (S.C. 2001, c.29) (“The Act”) — (The 2009-2010 Annual Report provides a good overview: http://www.tatc. gc.ca/doc.php?sid=34&lang=eng).

The principle offices of the TATC are in Ottawa where TATC Chairperson and CEO Richard Hall and administrative staff are located. The TATC holds hearings across the country.

In the marine field, the TATC provides an independent review of the actions of Transport Canada Marine Safety who administer safety of life at sea through the provisions of the Canada

Shipping Act, 2001 (CSA 2001) as well as Transport Canada Marine Security who regulate marine security through the Marine Transportation Security Act and regulations. The CSA 2001 allows a person under Canadian Maritime Documents in sections 16.1(1) 20.4(1) and Administrative Monetary Penalties (AMP) in section 231(1) and 231.2(1) to seek recourse to the TATC. The Regulations under CSA 2001 are being amended to allow more reviews by the TATC from government action. The provisions that presently allow recourse to the TATC are only found in CSA 2001 but other federal transportation legislation allows TATC oversight.

This article will also examine how the TATC independent review fits into the broader issue of marine risk management...

The TATC’s forerunner, the Civil Aviation Tribunal was unique as it was

the first specialized board of experts to adjudicate on aviation matters when it was created in 1986. The TATC continues this requirement for a specialized background for all TATC members.

Section 3 of the CSA 2001 requires appointments “collectively to have expertise in the transportation sectors in respect of which the federal government has jurisdiction”. An example of the specialized expertise found on the TATC is the recent appointment of Mr. Bradley Caldwell from British Columbia.

Brad Caldwell, is a senior, well respected maritime and fisheries lawyer who has been involved in the marine and fishing industry his whole career starting in 1974. Brad is one example of the TATC’s expertise and depth in the marine field.

A biography of all TATC members can be found in the TATC 2009-2010 Annual Report. There is a depth of expertise on the TATC. The Annual Report provides a comprehensive summary of the TATC’s important work.

This article will also examine how the TATC independent review fits into the

December 2011/January 2012 BC Shipping News 41

MARINE SAFETY MANAGEMENT broader issue of marine risk management and what mariners and the marine community need to know to provide a perspective on regulatory compliance procedure oversight. The TATC provides an independent review of government regulatory actions in the transportation field. The CSA 2001 and the forthcoming

Regulations in the marine field give effect to the Government of Canada’s Cabinet Directive on Streamlining Regulation which evolved from the earlier Smart Regulation process which had a stated goal to ensure that regulated industries remain competitive, efficient, safe and secure. This is an area that

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42 BC Shipping News December 2011/January 2012

the marine industry needs to pay close attention to in the coming decade as marine activities become more complex and the costs of regulation and enforcement increase. The TATC independent review will become increasingly active and relevant as the regulatory environment matures and evolves and safety management becomes more engrained in the operations of the marine community.

The risk management approach and policy of Transport Canada is set out in “Moving Forward — ­ Changing the Safety and Security Culture” published in 2007, TP 14678 (http://www.tc.gc. ca/eng/tcss/strategicplan-menu-56. htm). In the letter of transmittal to this new policy, the then Transport Minister, the Honourable Lawrence Cannon’s stated: Safety and security management requires that we change the way we all do business — from safety and security at the operations level to a systems-wide approach. To do this Transport Canada is building upon its existing regulatory frameworks and focusing on risk management practices. Transport Canada sees safety and security management systems as a big part of the solution.

The goal is to make all aspects of safety and security management part of management processes through all elements of the commercial management decision-making process...

The goal is to make all aspects of safety and security management part of management processes through all elements of the commercial management decision-making process and thereby protecting safety of life at sea and protecting the marine environment.

The amendments to the CSA 2001 incorporate Transport Canada’s safety and risk management approach and develop standards and guidelines as

MARINE SAFETY MANAGEMENT

The Canada Shipping Act, 2001, while retaining court regulatory sanctions, now allows an independent review by the TATC...

The CSA 2001, while retaining court regulatory sanctions, now allows an independent review by the TATC over administrative regulatory action as noted above. It is important to stress that the TATC is independent from Transport Canada and is a stand-alone federal tribunal. TATC appointees have a deep insight and broad experience in the marine and transportation sector.

There are eight appointees to the TATC with marine experience. In my view, the validity of the TATC independent review process by knowledgeable board members will strengthen the developing safety management regime as it allows an independent review of Transport Canada’s regulatory actions in a prompt, fair and cost-effective manner.

If there is non-compliance, even with the safety management regime, the regulator can promptly take clear and positive administrative steps using the new enforcement tools found under CSA 2001. One powerful tool in the regulatory tool-box is the Administrative Monetary Penalty (AMP) for regulatory

Photo credit: Silvester Law/HBMG

well as specific regulatory requirements and set out a variety of administrative remedies where Transport Canada, the regulator, is taking a more holistic approach to marine safety and security regulation. This has brought changes in Marine Safety’s philosophy: From prescriptive to a performancebased regime, and From an inspection to a compliancebased regime.

This is easy to say but more difficult to put into practice. This allows Transport Canada, to use a continuum of administrative remedies to ensure safety and security compliance.

Recent appointee to the Transportation Appeal Tribunal of Canada, Brad Caldwell. non-compliance. This is at one extreme of the regulatory enforcement continuum. An AMP allows the regulator to issue a fine without any court approval in order to seek compliance based on regulatory guidelines. Under section 232(1) of the CSA 2001, at the discretion of an alleged violator, one can request the

One powerful tool in the regulatory

infraction, or in the case of medical disputes or documents, the location nearest the residence of the person seeking review reachable by commercial transportation. This keeps costs down for the person seeking recourse to the TATC. The goal with the hearing is to have a full hearing of both the factual basis and the possible penalty that may have been issued by Transport Canada.

tool-box is the Administrative Monetary Penalty (AMP) for regulatory non-compliance.

TATC to review the Notice of Violation.

The TATC can review the factual basis of the violation, the amount of the penalty (AMP) or both. The use of AMPs will become more prevalent in the coming years in the marine field. Transport Canada has developed an open-source summary database of the AMPs issued against individuals and corporations. The recourse for the effected party is to seek an appeal to the TATC on both the factual underpinnings and the quantum of the AMP rendered.

In both reviews and appeals, the TATC seeks to have a hearing in close proximity to either the location of the potential

Peter Bernard, Q.C., another recent B.C. appointee to the TATC.

December 2011/January 2012 BC Shipping News 43

MARINE safety MANAGEMENT The value of this process is that the appellant has an independent review of government action by the TATC who have a long-standing background and understanding of the marine industry.

I believe this is invaluable to resolving a potential dispute and developing a body of decisions to guide both the marine industry and Transport Canada

regulators in the developing field of safety management.

In addition to Mr. Caldwell, there is a wealth of marine experience on the TATC which includes the recent British Columbia appointment of Peter Bernard, Q.C., a senior admiralty counsel wellknown to the readers of this magazine.

There is marine engineering expertise:

Newfoundland-based TATC member Michael Keefe, is a registered professional engineer and is the Manager of Marine Fleet Maintenance at Marine Diesel Injection Sales and Services Ltd. He holds a First Class Marine Engineer Certificate of Competency and was employed in the Canadian Coast Guard both ashore and afloat as a Chief Engineer and Engineering Supervisor for Newfoundland Region. He has held senior positions with Transport Canada Marine Safety as the Manager of Examinations and as head of Enforcement in the Atlantic Region as well as holding a variety of Ministerial appointments as an Inspector.

Counsel are not required before the TATC, but depending on the nature of the particular appeal, appellants may seek to retain legal counsel. Section 15(3) allows the person to appear in person or be represented by another person, including legal counsel. Section 15 (1) sets out the nature of hearings which is less formal than a court of law: 15.(1)….The Tribunal is not bound by any legal or technical rules of evidence in conducting any matter that comes before it, and all such matters shall be dealt with by it as informally and expeditiously as the circumstances and the considerations of fairness and natural justice permit.

There are two forms of independent oversight by the TATC — a review and an appeal.

There are two forms of independent oversight by the TATC — a review and an appeal. Under section 12 of the Act, a review is before a single TATC Member sitting alone. Under section 13 of the Act, an appeal is a three-member panel.

Hearings are open to the public and are recorded. TATC proceedings can take place in a courtroom or a hotel boardroom anywhere in Canada. The TATC is mandated by the Act in section 17 to 44 BC Shipping News December 2011/January 2012

MARINE safety MANAGEMENT render, after a hearing, a determination and, after appeal, a decision with written reasons. A future article will examine which provisions of the CSA 2001 will allow an independent review by the TATC of Transport Canada’s actions.

Chairperson Richard Hall is a full-time appointee who is also the Chief Executive Officer and oversees the TATC and its administrative staff. The scheduling of TATC appeals is done by the two fulltime Registrars and a Deputy Registrar in Ottawa. There are presently 21 part-time members of the TATC residing across Canada. It is clear from the calibre and experience of the recent appointment of Mr. Caldwell to the TATC that any mariner seeking the assistance of the TATC will have the benefit of an independent review by TATC members who have a deep understanding of the marine business and its complexity and challenges on the West Coast. This bodes well for improving the marine safety record and marine safety management and safety of life at sea and protection of the marine environment in British Columbia and across Canada. The TATC’s independent and important oversight strengthens the safety management mandate of Transport Canada. Safety management is everyone business. The TATC, with members such as Mr. Caldwell, will ensure through a cost-effective independent review that Canada’s marine safety management is administered promptly, fairly and uniformly from coast to coast to coast. That is a very good thing.

Joe Spears of HBMG has, with Transport Canada Marine Safety staff, developed and delivered the week long Level 1 and 2 National Marine Investigations Course across Canada to Transport Canada marine inspectors commencing in 2002. The former TATC Chair Faye Smith has been a guest lecturer at these courses. Joe first looked at Risk Management at Lloyd’s of London while a student at the London School of Economics. He can be reached at kjs@oceanlawcanada.com.

December 2011/January 2012 BC Shipping News 45

legal affairs

What Law?

Federal Court of Appeal finds that choice of law clause not always determinative.

By Mark Tinmouth

A Vancouver lawyer with Bernard & Partners

I

n October of 2008, a South Korean sub-charterer bought bunkers on the credit of the vessel Nordems. When the account was not paid, the supplier of the bunkers had the vessel arrested when it was in port in Quebec.

In late February of this year, the Federal Court of Appeal found that the choice of law clause in a contract for the supply of bunkers was not determinative of the law that should be applied.

The case, World Fuel Services Corp. v. �Nordems� (The) was heard in Canada because the Nordems was arrested in Canada.

The Facts The Nordems was owned and managed by German entities. The vessel was being sub-chartered by a South Korean entity. To add confusion to the issue it was unclear whether the seller of the bunkers was a Signapore corporation, subsidiary of the Appellant Florida corporation, or the appellant itself. The bunkers were supplied to the vessel on October 15 and 16, 2008 in South Africa. The contract was apparently agreed to in South Korea.

Pertinent to the contract of sale of the bunkers was the inclusion of a clause stating that the sale would be governed by the laws of the United States and the State of Florida. On October 20, 2008, an invoice in the sum of US $304,905.97 was issued by the supplier of the bunkers. The South Korean sub-charterer became bankrupt after the supply of the bunkers and did not pay.

As a result, the supplier of the bunkers had the vessel arrested in Baie Comeau, Quebec in December of 2008.

It is important to note that the head charter party agreement explicity stated that the sub-charterer was prohibited from taking bunkers on the credit of the shipowners and their ship.

The Decision At trial it was only argued that American law should apply. Where American law does not apply, then Canadian law will apply, in particular Canadian maritime law as it pertains to the supply of necessaries and whether that creates a maritime lien over the vessel.

Critical to this case is the difference between Canadian and American law

46 BC Shipping News December 2011/January 2012

as it pertains to maritime liens in favour of suppliers of necessities. Under Canadian law, it is necessary for there to be personal liability of the shipowner for a successful action in rem by a supplier of necessaries.

Under American law no personal liability of the shipowner is required for such an action to be successful. It is a legislative presumption under American law that a charterer has authority from a shipowner to subject the ship to a maritime lien for necessaries. To rebut this presumption under American law, it must be demonstrated that the supplier had actual knowledge of a prohibition on the charterer from placing a lien on the vessel. Under Canadian law the same presumption exists, but in a weaker form. In Canada, actual knowledge of the prohibition is not required in order that the presumption will be rebutted.

Mark Tinmouth is an associate and maritime lawyer with Bernard & Partners and can be reached at tinmouth@bernardpartners.com.

TECHNOLOGY & training British Columbia leads the way in software support for job and familiarization training.

By Murray Goldberg, Founder and CEO, Marine Learning Systems Inc.

S

everal years ago, British Columbia Ferry Services Inc. (BC Ferries) embarked on a quest to improve safety and efficiency through improved familiarization training within their organization. Their efforts have resulted in a highly successful new program for standardized, objective and reliable job and familiarization training and assessment which is now being used at BC Ferries and is being expanded company wide. It has also resulted in a new BCbased company built on the innovative practices at BC Ferries and on B.C.’s historical leadership in the field of eLearning. The new company, Marine Learning Systems, has created the world’s first learning management system built specifically for job and familiarization training in the maritime industry.

This article provides an overview of the new training program at BC Ferries, and discusses the new learning management system used to support the program, MarineLMS. Familiarization training The SailSafe initiative at BC Ferries, now in its fourth year, is a broad program co-sponsored by union and management aimed at improving the safety culture and practices across all aspects of operations and training at BC Ferries.

One of Sailsafe’s many components is the SEA program, which is focused on how job and familiarization training is performed.

...despite its [job shadowing] prevalence, its utility as a familiarization technique is incomplete at best, and potentially harmful at worst.

As most readers will be aware, job and familiarization training focuses on company-specific knowledge and skills, which each employee must have in order to most safely and efficiently perform their work. For BC Ferries, this includes the knowledge and skills associated with BC Ferries’ job routines, vessels and their systems, routes, terminals, equipment and so on.

Although generally governed by STCW (Standards of Training, Certification, and Watchkeeping) regulations, familiarization training and assessment practices are largely left to individual training providers to define. As such, despite continued advances in certification training regulations and practices, comparatively little attention has been paid to what constitutes familiarization training best practice. However, it could

be argued that familiarization training is just as important as certification training. After all, intimate knowledge of the vessel and its routines, safety systems, how onboard systems interact, and the skills required to put that knowledge into action are all required for safe operations. In addition, the ever-escalating sophistication of vessels and their systems speaks to the need to closely examine how familiarization training is performed and how its results are assessed.

One of the most common familiarization practices in the marine industry is job shadowing. However, despite its prevalence, its utility as a familiarization technique is incomplete at best, and potentially harmful at worst. There are many reasons for this — to name a few — variability in the knowledge and skills of the person being shadowed, communication proficiency, and level of interest of the person being shadowed. Even more importantly, job shadowing as a training technique is very difficult to control and track, which makes standardization on best practices and continuous improvement almost impossible.

The SEA program at BC Ferries BC Ferries recognized the shortcomings of job shadowing as a familiarization

December 2011/January 2012 BC Shipping News 47

TECHNOLOGY & training tool and is addressing these shortcomings with their SEA program.

SEA, in this case, stands for “Standardized Education and Assessment”. This name clearly articulates the main goals of the program; those of ensuring that all employees receive uniformly excellent training based on best practices, and that they are assessed objectively to verify that the required knowledge and skills have been successfully learned. The details of the SEA program vary somewhat from position to position at BC Ferries, however, the common components of the SEA program across most positions are the following: • Self-study. In this first phase, candidates learn on their own from a comprehensive set of learning resources tailored to their position. The goal of this phase is to provide the candidates with the fleet-wide fundamentals for that particular position, thereby bringing them all to a common level prior to beginning onboard or on-site training.

• Summative examination. This is a written test, typically taken online.

Candidates are required to demonstrate successful completion of the self-study by achieving 80 per cent on

this exam before progressing to the next phase.

• Onboard (or on-site, depending on position) education. This phase takes place onboard the vessel or onsite at the terminal where the candidate is taught by a trainer who is well versed in the SEA program, company best-practices, and adult education.

The trainer is not part of the operational crew while training - his or her attention is completely devoted to the task of training.

• Clearance. This phase consists of several assessments including demonstrations of performance, verbal examination scenarios, a written examination, and a meeting with the Master (or other senior supervisor, depending on the department).

• Continuous improvement. This is a phase of ongoing skill enhancement and support for career progression.

The SEA program was pilot tested as a replacement for job shadowing at BC Ferries with a group of 12 deckhands of varying levels of experience. The results were uniformly positive; it was felt that this was a significant step forward in formalizing, standardizing and improving job and familiarization training.

48 BC Shipping News December 2011/January 2012

Based on the very positive pilot outcomes, it was decided to roll the SEA program out to all 3,500 operational employees across the deck, engineering, catering and terminals departments at BC Ferries.

The need for enterprise learning management and delivery Expanding the SEA program from a pilot group of 12 to the majority of a large organization with its 35 vessels connecting 47 terminals required significant enterprise operational support. Most notably, it was determined that a web-based learning management system (LMS for short) was required in order to efficiently deliver, manage, monitor and assess training within the SEA program.

Learning management systems, in general, are web-based systems for the efficient delivery and management of training and assessment. They are centralized systems which support a wide array of learning and related activities.

LMS’ generally do not come pre-populated with training content or courses.

Instead, training organizations place their own learning materials and examinations into the LMS, and then use the LMS to deliver and manage the training

TECHNOLOGY & training process. Learners will use the LMS to access study materials and perform selftests. Trainers will use the LMS to administer online examinations or assess learner progress. Training administrators will use the LMS to access learning metrics and analytics in order to find opportunities for continuous improvement. LMS’ are so widely accepted as beneficial that the majority of universities and large corporations already employ a LMS for their learning and training needs.

British Columbia is known for its pioneering and thriving eLearning industry — the industry which creates learning management systems.

British Columbia is known for its pioneering and thriving eLearning industry — the industry which creates learning management systems. I have been fortunate to be a part of this industry. As a University of British Columbia faculty member in Computer Science for 10 years, I focused my research on eLearning. I left UBC to start a company called WebCT which created a learning management system for higher education. This ended up as the world’s most popular learning management system and grew to serve 14 million students annually in 80 countries. Given this background, I was asked to help find a suitable LMS to support the SEA program.

Unfortunately, it soon became apparent that the unique maritime learning context did not lend itself to the use of existing learning management systems.

There were many reasons for this, but chief among them were: 1. Maritime training requires that all key aspects of training and assessment be available both online and on paper for those instances where no internet connection is available. Most existing LMS’ assume continuous internet connectivity.

2. Many maritime organizations, including BC Ferries, must be able to train and assess candidates for any valid combination of job, vessel, route, terminal, etc. If the system cannot dynamically assemble learning information and examinations based on those selections (vessel, route…) made by the learner, then the only alternative is to create a set of largely duplicated, partially overlapping learning resources and examinations to cover all valid combinations.

This would create an unacceptable document creation and maintenance nightmare. We could find no existing system which possessed this functionality.

3. Maritime training also requires some special-purpose functionality. For example, passage planning and route orientation can be done with static documents, but could be much more effective with purpose-built learning tools.

As a result, it became clear that there was a real opportunity to advance the state of the art of maritime job and familiarization training by creating a purposebuilt LMS for the maritime industry.

MarineLMS is like most other learning management systems except that it is tailored to training in the maritime industry.

The Marine Learning Management System (MarineLMS) In order to satisfy the need for a maritime-specific LMS, MarineLMS was created here in British Columbia.

MarineLMS is like most other learning management systems except that it is tailored to training in the maritime industry. There are three primary maritime-specific adaptations, each of which has multiple implications for functionality which would not otherwise be possible. The adaptations are as follows:

1. MarineLMS understands maritime concepts such as positions (deckhand, mate, engineer, etc.), as well as vessels, routes, terminals and so on.

2. While most LMS’ assume continuous Internet connectivity, MarineLMS understands that the connectivity may or may not be available when training or assessment is required.

3. MarineLMS provides some maritimespecific functionality not present in other learning management systems. A good example of this is the passage planning module for route familiarization.

These adaptations allow MarineLMS to create a maritime training environment with the following features: Site navigation tailored to maritime position: When a user visits the LMS, a custom homepage is presented for that user based on their role within the organization and (if the role is “trainee”) the position for which they wish to train. For example, if a trainee visits the LMS and selects the position of deckhand, the homepage will be dynamically updated to display the specific learning modules and activities available to deckhand trainees. This creates a targeted and simplified navigational model which is easy to use even for those not deeply familiar with computers.

Training and assessment available both online and offline: MarineLMS makes all critical training and assessment activities available equally online or on paper. For example, any selection of pages from the company’s learning materials can be selected for custom-printing. This way, a trainee can pre-print any portion of the learning materials in anticipation of a study session without the benefit of connectivity. Likewise, all examinations can be taken online or on paper.

Dynamically created, randomized examinations: MarineLMS dynamically creates exams from a database of questions based on the position,

December 2011/January 2012 BC Shipping News 49

technology & training vessel, route (and so on) being tested.

Examinations are randomized to ensure that no two candidates receive the same exam, yet follow specific rules to maintain consistency of coverage and difficulty across examinations.

Dynamic study guides based on choice of vessel, route, equipment, etc: Maritime learning materials are typically a combination of different types of information including companyspecific information, job-specific information, vessel-specific information, route-specific information, and so on.

When a learner selects the position, vessel, route, etc. they are training for, MarineLMS dynamically assembles all required learning information from the various sources into one study guide.

Two important implications flow from this. First, learners are presented with a single, all-encompassing, cohesive study guide rather than four or more separate and unrelated documents. The result is a greatly improved, seamless learning experience, custom-tailored to the needs of the learner. The second implication is that if there is one change to (for example) a vessel, only one vessel specification document needs to be updated regardless of how many different positions make reference to that vessel information. Data maintenance, an important function for all large data systems such as this, is thus greatly simplified.

Focus on continuous improvement: MarineLMS provides learning metrics and analytics to lay a foundation on which a continuous improvement process can be built. For example, company-wide exam metrics help identify, monitor and improve broad trends in learning performance. As another example, question metrics provide insight into which information is being wellassimilated and which is not. These metrics also highlight and enable the correction of common misunderstandings by indicating which incorrect answers are commonly chosen. In

addition, learning page analytics indicate, on average, how long learners are spending on the various learning “pages”. This can help highlight difficult or problematic pages allowing them to be improved. Together, these metrics help identify problems and enable their correction before they would otherwise be apparent — leading to safer and more efficient operations.

Passage familiarization: The passage planner allows all route information to be stored and presented for learning purposes. This module also allows routes to be “visually navigated” from above at any scale, depicting waypoints and other route features such as safe beaching or anchorage points.

Trainer community: MarineLMS provides a trainer community in which company trainers and training administrators can communicate with one another, discuss training issues, and exchange documents, information and best practices. Trainers can be organized into vessel-based groups, route-based groups, or any other group of common professional interest. The trainer community provides virtually innumerable venues facilitating such activities as mentoring of new trainers, communication of important information to particular trainers, and the exchange of information such as successful training techniques.

Security and audit logs: Security and audit logging within MarineLMS exists to allow training administrators to keep their “fingers on the pulse” of the learning system. All significant events are logged to ensure the security and health of the LMS. Ensuring the learning materials remain correct and current: MarineLMS provides feedback mechanisms on every page whereby any user can identify information which is missing, incorrect or out of date. Feedback reports automatically contain the location of the problem, the contact information of the reporting user, and the description of

50 BC Shipping News December 2011/January 2012

Screen shot from the BC Ferries online education system demonstrates the ease of navigation for trainees and trainers. the problem being reported. Using this mechanism, it is often the case that an issue which exists will be reported by the first person who sees it, allowing it to be corrected immediately. This helps ensure the correctness and currency of the learning data — the value of which cannot be overstated.

Conclusion To date, hundreds of BC Ferries employees have been trained under the SEA program. As the SEA program continues to be expanded at BC Ferries and more maritime organizations adopt MarineLMS, their use and feedback will allow both the SEA program and MarineLMS to be further improved and refined. This will hopefully perpetuate a continuous positive feedback loop of improved job and familiarization training, resulting in improved safety and performance in maritime organizations in B.C. and around the world.

Murray Goldberg is the founder and President of Marine Learning Systems (www.marinels.com). Murray began research in eLearning in 1995 as a faculty member of Computer Science at the University of British Columbia. He went on to create WebCT, the world’s first commercially successful LMS for higher education; serving 14 million student in 80 countries.

Now, in Marine Learning systems, Murray is hoping to play a part in advancing the art and science of learning in the maritime industry.

technology

Avoiding the slippery slope to lubricant pollution Environmental lobby groups are pressing the shipping industry, and its regulators, to move away from traditional oil-based lubricants which are causing significant harm to the global marine environment.

I

n 2010, the environmental protection organizations World Wildlife Federation (WWF) and Friends of the Earth International (FOEI) submitted a hard-hitting paper to the IMO’s Marine Environment Protection Committee (MEPC) which raised serious concerns about the extent of oil-based lubricant pollution and the need for changes to both IMO regulations and industry operating practices to reduce the adverse impact that the leakage of such lubricants is having on the marine environment.

Marine lubricants are used to lubricate machinery in various areas onboard vessels, including stern tubes and thrusters, and can be discharged into the sea during normal operations, as well as through equipment wear and failure. The mixture of mineral oil base and additives in lubricants results in persistent bio-accumulative and toxic chemicals amassing in the marine environment, particularly in coastal areas where around 80 per cent of shipping movements occur.

The first authoritative study of the scale of marine lubricant pollution, a report

published in 2009 by Environmental Research Consulting, widely known as the Etkin Report, found that between 33,000 and 61,000 tonnes of oil-based lubricants are discharged every year into port and harbour waters alone. This is approximately 1.5 times the amount of oil spilled from the Exxon Valdez.

The WWF/FOEI paper stated: “Lubricant leakages and discharges across the entire marine environment, including open seas, can be projected to be as much as 244,000 tonnes a year.

In other words since the Exxon Valdez

An overview of the COMPAC Seawater Lubricated Stern Tube Bearing System with only one shaft seal (FWD) from Thordon Bearings Inc. December 2011/January 2012 BC Shipping News 51

technology disaster in 1989, an equivalent of 137 similarly-sized spills have leaked, been discharged or spilled into the world’s estuaries, coastal waters and oceans, due to lubricant pollution.”

Specific concerns WWF and FOEI say they have specific concerns about the discharge of lubricants below the waterline by stern tubes

and thrusters since these are almost impossible for authorities to observe.

Introducing monitoring systems and abatement mechanisms for this type of marine pollution would improve detection rates relating to mechanical failure and aid operational efficiency, but further action is needed by the international shipping community to really address this issue.

Thordon COMPAC wear results of bearings fitted in 1998.

Typical oil lubricated stern tube bearing system with two shaft seals (FWD and AFT).

52 BC Shipping News December 2011/January 2012

Some industry sources calculate that the shipping industry used up to 2.8 million tonnes of lubricants in 2009, suggesting that the actual amount of lubricating oil pollution could be even higher than these estimates. The joint paper pointed out: “The scale of lubricant use illustrates the wider need for MEPC to consider pollution levels from all onboard chemicals that are not adequately dealt with, either by regulation or shipping industry practices, if it is to achieve a goal of ‘zero pollution’ from ships set by IMO member states and international shipping associations.”

WWF and FOEI argue that a reduction in the negative impact of marine lubricant use on the marine environment could be achieved ‘relatively easily’ through regulation. They suggest that sustainably produced, low-mineral oil content lubricants, which are much less toxic and have a high level of biodegradability, are already readily available. They are now urging IMO to take regulatory action to ensure wider use of such lubricants, with new rules setting out clear guidelines on acceptable toxicity and bio-accumulation levels, as well as biodegradability.

According to Dr Simon Walmsley, marine manager, WWF International, “There are two broad options for a way forward within IMO, both of which would require the support of member states. One would be to deal with this issue as part of ongoing revisions that are being made to MARPOL V. The other is to develop stand-alone guidelines specifically covering lubricant pollution.

The latter would take longer to achieve, but may well be the more effective option in the end.”

Some progress is understood to have been made ‘behind the scenes’ over the past few months, but WWF would like to see signs of more positive action. Dr Walmsley says: “We have highlighted an emerging threat which will only get worse as the size of the world fleet grows and we are hopeful that member

technology states will agree to champion regulation in this area. Most important of all we believe this is a flag state responsibility and so we are pressing flag states to stand up to take ownership of this problem.”

Options for owners There are several possible solutions, including the use of bio-lube products and the adoption of water-lubricated stern tube designs. The latter could have a big impact on stern tube oil seepage, which the Etkin Report estimates to contribute between 12 per cent and 46 per cent of total lubricant pollution in ports and harbours.

“The concerns raised by WWF and FOEI point to a clear need to adopt the technology we have developed in recent years,” says Craig Carter of Thordon Bearings, a Canadian firm that manufactures seawater lubricated bearings. ”There is a proven alternative to an oil-lubricated sealed system that completely eliminates stern tube oil pollution, and this is an open system that uses seawater as the lubrication medium in place of oil.”

Citadel, one of 24 ships owned by the Flinter Group of the Netherlands and built at Ferus Smit Shipyards, is fitted with Thordon Bearings’ COMPAC system.

No stern tube oil is required and the use of non-metallic bearings is now claimed to offer a level of performance that is similar to metal shaft bearings.

With this approach seawater is piped from the sea through non-metallic shaft bearings and returned to the sea. No stern tube oil is required and the use of non-metallic bearings is now claimed to offer a level of performance that is similar to metal shaft bearings.

There may be a higher initial cost for the stern tube bearing system due to corrosion protection. However, this can be recovered fairly quickly through lower running and service expenses, as demonstrated with bulker, tanker, ferry, cargo and cruise ship operators that use seawater lubricated stern tube bearings.

The Thordon COMPAC stern tube bearings have been designed to reduce running friction and improve low speed hydrodynamic film development. The lower (loaded) portion of the COMPAC bearing is smooth and the upper half is designed with water grooves for lubrication and cooling.

Although start-up friction is initially higher — at rated shaft speeds the drag on the rotating shaft resulting from the viscosity of the lubricating fluid is lower with water than with oil — thereby resulting in potential fuel savings.

Mr Carter adds, “By using new bearing designs and technologies, shipping companies can now eliminate both operational and accidental stern tube pollution. The WWF and FOEI have done valuable service in highlighting the significant effect this pollution is having on our oceans, but the technology to stop it is already available and proven on more than 2,000 ships in service.”

Princess Cruises have also installed Thordon’s COMPAC system on nine cruise ships with two more on order.

December 2011/January 2012 BC Shipping News 53

MARITIME S E R V I C E S

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• Nautical charts and publications from Canada, US and UK. • Worldwide digital charts and marine navigation software.

• Marine electronics incl. Furuno, ACR, ComNav and ICOM. • Commercial and coastal liferafts, life jackets and distress signals.

• Thermal imaging cameras for shipboard security.

1 888 387 8667  604 294 3944  www.maritimeservices.ca

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