BC Shipping News - July/August, 2011

INSIDE: CONFERENCE SUMMARIES: BIMCO AND NAUTICAL INSTITUTE

BC SHIPPING NEWS

Volume 1 Issue 4

www.bcshippingnews.com

July/August, 2011 Retail Price: $4.95

BC shipyards:

The prospect of federal shipbuilding contracts generates excitement and optimism in BC shipyards.

Workboats

Two new Robert Allan designs head south.

Industry Insight Peter Hinchliffe: Issues for international shipping.

Procurement Strategy

Pebble in a deep pond.

Plus:

Mari-Tech 2011: Part two of presentation summaries.

July/August, 2011

BC Shipping News 1

July/August 2011

Volume 1 Issue 4

Contents Cover Story - P. 18

BC excited over prospects of federal shipbuilding contracts.

On the eve of the award of the National Shipbuilding Procurement Strategy contracts, Ray Dykes takes a ‘state of the nation’ look at current shipyard activities and what the contracts mean for BC.

10 Industry insight The Secretary-General of the International Chamber of Shipping provides a revealing look at the issues affecting the world shipping industry.

28 Workboats

Robert Allan designs

Two Robert Allan Ltd. Naval Architects designs have recently been delivered to the US, demonstrating an international demand for local know-how.

52 Technology/New Products The Inovelis Pump Jet Pod Converteam rep Gene Joelson provides a review of the benefits of latest developments in Pod technology.

D E P A R T M E N T S

F E A T U R E S

Peter Hinchliffe

6

Letters / News briefs

13 16

BIMCO General Meeting

26

Cruise

30

Tugboat industry conference A recap and summary of presentations.

34

Legal affairs

37

Mari-Tech part two

42

Green Marine

44

Nautical Institute

49

Procurement strategy

Letters to the editor and news.

A summary of presentations.

History lesson

A look at the history of Vancouver shipbuilders.

Cruise industry trends, followed by cruise briefs.

R.v. Atlantic Towing Ltd. — A prosecution for jeopardizing safety.

The second in a series summarizing the presentations from Mari-Tech 2011.

A guest editorial from David Bolduc, Executive Director, Green Marine.

A review and summary of presentations at the Command Seminar.

Joe Spears looks at the big picture of what the strategy means for Canada.

July/August, 2011 BC Shipping News 3

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EDITOR’S NOTE

We owe it to seafarers to address these issues.

H

appy International Seafarers Day! While the timing of this July / August issue of BC Shipping News didn’t allow for coverage of events taking place in Vancouver and around the world, I’d like to take a minute to recognize and express gratitude to the 1.5 million seafarers that play a vital role in the world economy and, in many respects, in sustainable development, allowing ships to carry 90% of world trade safely, efficiently and with minimal impact on the environment.

The Day of the Seafarer, June 25, 2011 is also an opportunity to educate the public about issues facing the modernday seafarer. There are two which require your attention — regardless of whether you work in the shipping industry, know someone in the industry or simply rely on the goods that seafarers bring to our ports. I’m referring to piracy and the criminalization of seafarers.

Here’s why both of these issues matter as much to the general public as they do to stakeholders within international shipping.

Let’s deal with the criminalization of seafarers first: Without going into great detail, Bill C-16, the Environmental Enforcement Act, was given Royal Assent by the Government of Canada in June, 2009. As Captain Stephen Brown noted in the April issue of BC Shipping News: “this legislation criminalizes seafarers in the event of an accident involving pollution on the basis of the legal concept of ‘strict liability’. Shipowners, managers, superintendents, in fact anybody remotely involved in an incident can be judged as guilty unles they can prove

otherwise on account of having practiced due diligence.”

While David Jones, a lawyer with Bernard & Partners, does a good job of raising the issue of strict liability in this month’s Legal Affairs article by investigating the effectiveness of due diligence as a defence, the premise of guilty until proven innocent is one that shouldn’t sit well with anyone in the free world.

Bottom-line, the criminalization of seafarers sets a dangerous precedence within our legal system. We need to encourage our government to review this legislation.

...there has to be greater political will to get more resources directed into combatting this issue [piracy].

Second issue: Piracy. Peter Hinchliffe, the focus of our Industry Insight this month, said it best: “It’s utterly shocking.” From the conditions to which seafarers are subjected, to the increasingly violent nature of pirate attacks, to the astronomical amounts of ransom being demanded and the lack of government condemnation coupled with too few resources, the problem of piracy has reached a critical crossroads and needs our immediate attention.

While naval forces from countries around the world, including Canada, are in the region and doing the best they can, there has to be greater political will to get more resources directed into combatting this issue. As pirates expand the scope of their operations further and further afield, it’s going to take even

more (money, ships, time) to get this problem eradicated if we don’t act now.

Here’s a really interesting observation: India is one of the few countries really stepping up to the plate when it comes to piracy. Keep that in mind as you visit the website: www.saveourseafarers.com. There is a simple (very simple) process for letting our Canadian government know that the current situation regarding piracy is unacceptable and you would like something done about it. Enter your name, country and e-mail address and click submit. The Save Our Seafarers campaign sends a letter to our Minister of Foreign Affairs requesting urgent action to eradicate piracy. Once you’ve done that, go back to the home page and click on “View Letters Sent by Country”. You’ll see that India’s citizens have sent almost 5,000 letters in comparison to 1,700 from the UK, 1,300 from the US and just 371 from Canada. While I’m sure it’s not the only reason India is so active in addressing piracy, I can’t help but wonder if the volume of letters received hasn’t had some influence.

So, in honour of International Seafarers Day, please go to www.saveourseafarers.com and follow the instructions to add your name to the list of people who are asking for action. It’s the least we can do. BCSN

July/August, 2011 BC Shipping News 5

LETTERS TO THE EDITOR Classification societies article needs clarification Re: June article: Mari-Tech Part One, summary of Jeffrey Smith’s presentation: Emerging roles and increasing responsibilities of classification societies.

Hi Jane, I didn’t hear Mr. Smith’s presentation so I may be taking some of the remarks out of context but then, others may take the same context?...I am pretty sure that Transport Canada may also have some concerns if asked.

1) There are already five classification societies that have the mandate that Mr. Smith refers to — (ABS, BV, DNV, GL and LR) and have had since 2000. The next agreements are simply renewals.

2) “Class-hopping” is a major concern of the IMO and has been addressed on several occasions by the Flag State Implementation (FSI) Sub-Committee.

Change of class generally draws attention from Flag States and particularly from vetting agencies which review the

suitability of ships for many cargo shippers. There is a standard protocol and agreement for change of class among members of IACS, which is intended to ensure that such class-hopping does not become practice. From the perspective of Lloyd’s Register, it is becoming more difficult to change class.

3) Governments, or Flag States, may well delegate but they cannot retreat from the marine industry. They may retreat from physical inspections but they are the voices at the IMO. They must comply with the Implementation of IMO Mandatory Instruments Code (IIIC) and also the Recognized Organization Code (RO Code) under which requirements they may delegate. Indeed, Ms. Julie Gascon of Transport Canada, who is the Deputy Chairman of FSI, has been the Chairman of the Working Group developing both of those Codes.

I may be over-reacting but I believe that your readers should be aware that delegation is not new, either globally or in Canada and that some very talented people at Marine Safety are leading global and industry wide improvements in the area.

Great magazine — keep up the good work!! All the best.

Bud Streeter Vice President and Marine Manager North Americas, Lloyd’s Register Editor’s note: Mr. Smith was travelling at the time of publication and unable to respond directly however noted that his technical paper: “On a flood tide: Classification societies and Canada’s marine industry in 2020” references the agreements made between 2000 to 2003 under Canada’s Safety Management Regulations. The paper is available for download at www.cimare. org/maritech/papers. Mr. Smith did note however that he was pleased to see that his article has elicited discussion.

news briefs Cunard Confirms Efficiency Improvements on Queen Mary 2 with Intersleek®900

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unard has confirmed significant savings on its flagship liner Queen Mary 2 since converting to International Paint’s fluoropolymer foul release coating Intersleek®900 in November, 2008.

From its own detailed studies on the propulsion efficiency of Queen Mary 2, Cunard has confirmed that since the application of the Intersleek®900 system to the vertical sides, vessel efficiency has improved by over 10%.

Mr. Ronnie Kier, Chief Engineer of Queen Mary 2, explains how this was calculated: “Prior to the drydocking, in order to achieve the necessary speeds to meet our demanding schedule, we 6 BC Shipping News July/August, 2011

would need to utilize all four 14.5MW diesel generators and supplement that with our 8MW gas turbine running on gas oil. After the drydocking we only required the four diesel generators, which gave us a direct saving of approximately 36 tonnes of gas oil per day or around $30,000 per day at today’s prices. What is more important to us is that those initial efficiency improvements have been effectively maintained over the 30 months since application.”

The lower fuel consumption seen on Queen Mary 2 since the application of Intersleek®900 represents a reduction in CO2 emissions of over 50,000 tonnes.

Carnival Corporation is committed to reducing the environmental impact of vessel operations through ‘practices which set a high standard for excellence and responsibility’. The decision to switch to Intersleek®900 was an integral part of a strategic initiative to reduce fuel usage and associated CO2 emissions while still maintaining operational schedules. The fact that Intersleek® is biocide-free was also an important part of the decision. Carnival first applied Intersleek® in 1999 and 50 vessels in the group are coated with Intersleek® products. Going forward, the intention is to convert the remainder of the fleet to biocide-free schemes.

LETTERS TO THE EDITOR A greener mode of transportation?

A comment on the BIMCO AGM regarding sustainability.

BIMCO’s general meeting, held in Vancouver on June 7, 2011 focussed on sustainability, fuel prices and the ability of maritime technology to re-invent itself along side this new paradigm.

The session concluded that carbon emissions leading to climate change, together with high fuel prices, provides both challenges and opportunities for business. By utilizing technological and operational advances, industry can produce more efficient ships while, coincidentally, protecting the environment.

The general belief of the industry regarding sustainability was mentioned more than once: “maritime freight is by far the greenest mode of transportation”. This notion is obtained simply by dividing “tonne-miles” movement of goods by fuel consumption; ships are capable of moving more “tonne-miles” of cargo with less fuel consumption compared to other modes of transportation such as rail, road and air.

Like any industry sector responding to the environmental dilemma, the marine industry is attempting to have it both ways — more efficient means of propulsion (more cargo transportation with less costs) while minimizing carbon emission. All we have to do is concentrate and invest in a new, more efficient design. Less consumption in the long-term will reward the effort.

At the end everyone will be happy, the designer, the investor and of course the ozone layer.

The result? Sustainable growth.

Cheaper and environmentally friendly global movement of goods, and who knows maybe we’ll have another golden age of economy.

I would like to argue this sort of reasoning. Obviously, business is looking for a new market. It must because at the end of the day no one makes the first step without a return on investment.

Let us not forget that new markets create even more movement of goods, or as we call it “growth”.

Let’s look back at the recent efficient designs for marine transportation and the outcomes. Despite the invention of Internal Combustion Engines and their greater efficiency over Steam engines, carbon emissions have been collectively increasing over the last five decades as shown in the graph below.

At each and every point in the graph, we can claim that carbon emission per “tonne-mile” movement of goods is less than the previous year. Yes less, because in the above graph, emissions are considered collectively and not per tonne of freight — the upward movement of the lines simply reflects economic growth.

In fact, the introduction of efficient diesel engines led to an economies of scale that has, in effect, created great seaborne trades and globalization of trade as we know it. With the help of large, efficient bulk carriers, economies have easily developed without having strategic raw materials (oil, coal and grain) in their proximity. Now, finished products and faster moving consumer goods have provided for lower prices than local products. That wouldn’t be possible without efficient jumbo container carriers. Is that all? Of course not. The marine industry, motivated by its economies of scale advantage, has constantly attempted to build ever larger ships.

There seems to be no technical reason to prevent ships from getting larger. It

will be economic and operational considerations that will act as the ultimate barriers on post-Panamax vessel sizes and designs. Large ships have little flexibility in terms of the number of potential ports of call and consequently the direct access to specific regional markets, therefore, we have seen the emergence of mega ports and their competition for state-of-the-art productivity. This in turn gave rise to stronger logistics practices over land corridors.

Without an efficient land logistics, the ports will be too congested to operate smoothly. Land logistics is mostly rail, road and distribution centres. These modes of transportation can’t and don’t claim to have the least “tonne-mile” carbon emission rate.

We can conclude that maritime transportation gave rise to a global chain of marine terminals and growth of inland transportation, logistics and distribution centres. All of this has resulted in more production and cheaper finished products. This cycle has naturally led to even more transportation of all modes and of course more emissions collectively.

I believe from a total logistics point of view we are better not to consider maritime transportation as a choice of greener mode amongst others. After all, there is no point to compare one mode of transportation against the other when there is no alternative to cross the Pacific. Can we now very rightly be worried about more efficient engines? Will they be able to reduce carbon emissions rather than cause a new drive for movement and growth?

Perhaps what we need is a new vision about growth, not a new marine engine.

Captain Hossein J Kamali Instructor, supply chain, logistics and port operation specialist Something to say? Send a letter to jane@bcshippingnews.com.

BCSN

July/August, 2011 BC Shipping News 7

INDUSTRY traffic Seaspan adds three new containerships to fleet

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easpan Corporation has taken delivery of three new containerships since April, expanding the company’s operating fleet to 61 vessels.

The COSCO Vietnam, an 8,500 TEU containership from Hyundai Heavy Industries Co., Ltd. was Seaspan’s fourth delivery in 2011. The ship is on charter to COSCO Container Lines Co., Ltd. (COSCON) under a 12-year, fixed-rate time charter with options to COSCON

to extend the charter term up to an additional three years. The vessel is the last of eight 8,500 TEU sister ships and the tenth of a total of 18 vessels to be chartered by Seaspan to COSCON. The Berlin Bridge, a 4,500 TEU containership from Samsung Heavy Industries Co., Ltd. was delivered in May and is on charter to Kawasaki Kisen Kaisha Ltd. (K-Line) of Japan under a 12-year, fixed-rate time charter with options to

South Fraser Perimeter Road update: injunction filed.

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second court case has been launched against the construction of the $1.2 billion South Fraser Perimeter Road (SFPR). Bertha Williams of the Tsawwassen Band, Coast Salish Nation and William Burnstick, of the Cree Sioux First Nations, are suing the BC Government to stop construction of the South Fraser Perimeter Road.

This latest legal claim comes following an application last November from the Burns Bog Conservation Society against the Government of Canada stating that the South Fraser Perimeter Road Project contravenes Federal legislation and fails to uphold the Conservation Covenant on Burns Bog. The case is making its way through the legal system with the next milestone being the end of August for the government to provide an affidavit of documents.

The parties are then expected to submit a proposed schedule for completion of next steps, including examinations for discoveries, amendments to pleadings, settlement discussions, and a pre-trial conference.

“Both legal actions point to the failure of the governments of Canada and British Columbia to adhere to laws which protect key archaeological sites and critical habitats,” notes a press release 8 BC Shipping News July/August, 2011

issued by StopThePave, a grassroots protest movement. “The Provincial government is forging ahead with the SFPR Project choosing to ignore the South Fraser Perimeter Road Archaeology Impact Assessment, Technical Volume 14 of the Environmental Assessment Application which was prepared for Ministry of Transportation; which states that almost 30% of the road’s alignment runs through land rated as high archaeological potential.”

Williams and Burnstick are asking for an injunction to stop work while the issue is sorted out in court, claiming the findings of the Archaeological Study indicate the road will cause irreparable damage to sacred grounds including undisturbed deposits dating from 9,000 years ago. At least six sites along the planned route of the road have been identified as having significant scientific merit, including the Glenrose Cannery and the St. Mungo site which reportedly contains human remains. The site, on the shores of the river near the southern foot of the Alex Fraser Bridge, was once the home of a historical fishing village and is believed to contain artifacts from three different Coast Salish First Nations cultural periods.

Despite reports that the claim was filed on May 24, the government hasnot yet received notice. Following up on a

K-Line to extend the charter term up to an additional six years. The vessel is the fourth of five 4,500 TEU sister ships and the sixth of a total of seven vessels to be chartered by Seaspan to K-Line.

Seaspan Corporation’s most recent delivery, the COSCO Glory, is the company’s first 13,100 TEU containership. The new containership, which was constructed by Hyundai Heavy Industries Co., Ltd., is Seaspan’s sixth delivery in 2011.

The COSCO Glory is on charter to COSCO Container Lines Co., Ltd. (COSCON) under a 12-year, fixed-rate time charter. The ship is the eleventh of a total of 18 vessels to be chartered by Seaspan to COSCON. Gerry Wang, CEO, Co-Chairman and Co-Founder of Seaspan, commented: “We are pleased to achieve this latest milestone, as we take delivery of the first of eight 13,100 TEU vessels. The COSCO Glory is the largest vessel in our fleet and a flagship vessel in the COSCON containership fleet. We look forward to taking delivery of the remaining seven vessels in this class and further strengthening our deep relationship with COSCON.”

Aerial view of The South Fraser Perimeter Road (source: project website: www.sfprconstruction.ca). request for the government’s expected response that was to be due 21 days following filing, Linda Mueller, Communications Manager for the Ministry of Attorney General noted that: “Usually we wouldn’t comment on a case before the courts, however, to the best of my knowledge, we have not yet been served.” BCSN

news briefs Marine industry improves environmental report card

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n environmental report card from Green Marine on the Canadian and US marine industry has revealed significant improvement, with the greatest progress made by shipowners reducing their carbon and SOx emissions and ports providing environmental leadership to their tenants.

Green Marine, a program designed to benchmark and strengthen the marine industry’s environmental performance, unveiled its annual report and its members’ individual results for 2010 during the certification ceremony held in Chicago during the 4th annual GreenTech 2011 environmental conference on green technologies and innovation in marine transportation. During the ceremony, some 50 members received their certification for 2010 testifying to their adherence to the environmental program and commitment to continuous improvement.

2010 Results: steady improvement year-over-year since 2008 Green Marine member companies continued to raise the bar with the latest results showing a global score of 2.9 in

2010, up from 2.5 in 2009. The global score in 2008, the first year of reporting, was 2.0. Individual company results are publically available at www.green-marine.org.

Although Green Marine is a voluntary program, the results reported by participating companies are subject to a rigorous external verification process every two years. This independent audit process, performed by Houston, TX headquartered Lloyds Register Quality Assurance, ensures the credibility of the results reported for each participant. ‘’The results attained by participants continued on an upward trend with improved results in 2010 for virtually all issues covered by the environmental program,’’ said Collister Johnson, one of Green Marine’s three co-chairs and Administrator of the Saint Lawrence Seaway Development Corporation. ‘’This third year of evaluation provides strong evidence of the environmental program’s effectiveness in motivating a large segment of the maritime industry to undertake concrete action to protect the environment.’’

J-WesCo of Japan buys Westwood Shipping from Weyerhaeuser

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estwood Shipping Lines President Guy Stephenson announced that parent company Weyerhaeuser NR Company has reached an agreement to transfer ownership of Westwood Shipping Lines to J-WesCo of Japan. Closing of the transaction is scheduled for August 31, 2011.

With this change of ownership, Westwood will continue current operations with its fleet of seven ships operating in the Japan, Korea, China, and Pacific Northwest gateways. All customers’ needs will continue to be met and service will be business as usual.

J-WesCo is a holding company formed by a consortium of Japanese stevedore companies, all of which have been key service providers to Westwood for more than 25 years. J-WesCo is uniquely positioned to support Westwood’s ongoing business as well as its future service enhancements.

Westwood’s management and employees welcome J-WesCo as Westwood’s new parent company and look forward to the opportunities this change in ownership will provide. Westwood operates con-bulkers that are capable of carrying a mix of oversized cargo, containers and breakbulk forest products.

The year 2010 also marked the broadening of Green Marine’s territory and mandate. Green Marine significantly strengthened its position as the maritime industry’s most important environmental initiative in North America by expanding the program beyond the St. Lawrence / Great Lakes region to include marine transportation companies operating or based anywhere in Canada or the United States.

“Twelve new participants from various regions — ranging from Canada’s West Coast, to the Maritimes, to the US East Coast, to the St. Lawrence / Great Lakes basin — have recently joined the Green Marine program bringing the total number of participating companies to 53,” stated David Bolduc, Executive Director of the program.

Green Marine has also widened its mandate to reach new members. Its performance indicators were adapted to facilitate the evaluation of international fleets, which enabled New York-headquartered TBS International to enter the program. 2010 was also the first year in which shipyards were evaluated under the program’s criteria with Vancouverbased Seaspan Marine Corporation entering its ship repair and shipbuilding facilities, located in Vancouver and Victoria, as well as their tug-barge operation in its evaluation process. ‘’The expansion of membership, in terms of new participants and a growing number of partners and supporters, is a testament to the credibility of the Green Marine program and bodes well for building an even stronger coast-tocoast, bi-national program to support the marine industry on the road to sustainable development’’, said Ray Johnston, Chair of Green Marine’s Board.

Green Marine now has a total of 120 members in all categories.

See page 42 of this issue of BC Shipping News for a guest editorial article from David Bolduc.

July/August, 2011 BC Shipping News 9

INDUSTRY INSIGHT

Issues for international shipping Hosted by the Chamber of Shipping of British Columbia, Peter Hinchliffe OBE, Secretary General of the International Chamber of Shipping, provides an insightful summary of the issues facing the international maritime industry.

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s the representative for approximately 80% of the world’s merchant tonnage, Mr. Hinchliffe speaks on behalf of the international maritime industry at the International Maritime Organization, the International Labour Organization and other inter-governmental forums. His presentation to attendees at a recent luncheon, hosted by the Chamber of Shipping of British Columbia, focussed on three main subjects affecting the shipping industry today: piracy, climate change and the Emission Control Area.

Piracy Hinchliffe referred to the current problem of piracy as “utterly shocking”. Currently, approximately 26 ships with over 500 seafarers are still being held under appalling circumstances.

“Since 2005, 39 people have died, either through gun battle, torture or malnutrition,” said Hinchliffe. “The real problem is that when governments started to look at piracy in 2005, they deployed forces fairly quickly to the Gulf of Aden.

Pirates responded by moving further 10 BC Shipping News July/August, 2011

and further out so that their reach now spans across to the Coast of India and down to Madagascar. The 20 or so warships in the region simply can’t keep up with that. The resource level now is way below what is required to deal with this problem.”

“We had a good response initially with navies...but no one thought through, at the governmental level, a strategic plan for what would happen next...”

Since 2005, the world has seen year over year expansion and growth of piracy in terms of attacking capabilities, geographic area of reach, violence and ransom payments. Hinchliffe sees two key causes for this growth: the lack of a counter-piracy strategy; and the lack of a robust international condemnation.

“We had a good response initially with navies being deployed into the region but no one thought through, at the governmental level, a strategic plan for

what would happen next,” said Hinchliffe. “And of course, what happened next was that the pirates moved down the East Coast to Somalia. And when military activity increased there, they started taking motherships further out into the ocean.”

Noting that there has been an “astonishing silence from international governments,” Hinchliffe highlighted a number of events that were, at the time, thought to be “game changers” — events that would prompt a more serious government response, including the capture of motherships, murders, and ransom payments that continue to skyrocket. Hinchliffe noted that the latest development, the politicization of ransom demands as illustrated by the case of the chemical tanker Asphalt Venture, may yet bring about more action from government. The Asphalt Venture was released following the payment of ransom but seven Indian seafarers remained hostages and were taken to Somalia where they haven’t been heard from since. “We thought this would be

INTERNATIONAL SHIPPING a game changer because we thought the Indian government would do something. The Indian government has actually been one of the more robust governments in terms of combatting piracy but in this case, it’s gone terribly quiet. What we’re seeing now is pirates trying to negotiate with governments rather than shipping companies — in essence, politicizing the problem.”

Hinchliffe encouraged attendees to visit the SOS website (www.saveourseafarers.com) and join the letter writing campaign.

In response to piracy, the International Chamber of Shipping has been advocating for a number of government actions: • To arrest, prosecute and, if found guilty, punish all suspected pirates.

• To inhibit the activities of the motherships albeit ensuring that forceful attempts to take the ship not endanger seafarers.

• To establish a multi-national United Nations maritime force that could be deployed as detachments to protect the more vulnerable ships.

Management Practices, including registration when in the area and working with the military. Hinchliffe pointed out that companies could provide further help by supplying officers to work at the European Union Naval Force for a period of three to four months.

The ICS will continue to develop a strategic framework for the industry to deal with piracy and will continue to support the Save Our Seafarers campaign as well as look for other ways to increase awareness. Hinchliffe encouraged attendees to visit the SOS website (www.saveourseafarers.com) and join the letter writing campaign. “It takes two clicks of the mouse,” noted Hinchliffe. “A very simple and effective way to express concern to your government.”

Climate Change Hinchliffe reviewed three mechanisms that can be used by the marine industry to reduce CO2 emissions: • Mitigation — Market Based Measures (MBM) • Operational — Ship Energy Efficiency Management Plan (SEEMP) – soon to become an IMO regulation.

• Technical — Energy Efficiency Design Index (EEDI) — a way of regulating the efficiency of ships.

One of the obstacles to implementation of effective measures is the difference in operating principles between the United Nations Framework Convention on Climate Change (UNFCCC) — the organization responsible to move the UN’s environmental agenda forward at the political level — and the International Maritime Organization (IMO). The UNFCCC operates on a principle of “common but differentiated responsibility” compared to the IMO who have a policy of “no more favourable treatment”.

“The UNFCCC has not provided the IMO with a clear mandate to proceed on regulating shipping and that is what is desperately needed to further the work on CO2 emissions,” said Hinchliffe.

“You can’t have different flag states being subject to different rules. Shipowners would simply register their vessels in the states where the regulations are most favourable.”

In providing an update on the status of each of the three mechanisms, Hinchliffe noted that issues would be coming to a head at the upcoming IMO Marine Environment Protection Committee 62nd Session. The agenda of MEPC62 includes consideration of a proposal to adopt new carbon emission legislation into MARPOL Annex VI. The text con-

• To maintain the current level of warship deployments but also to increase the level of airborne assets.

• To encourage the military to investigate options for the release of hostages.

• To criminalize the activities of financiers and leaders of piracy groups.

• To build capacity within Somalia for things like government infrastructure and coast guard structure. While recognizing the need for this type of long-term solution, the ICS believes this needs to be done in conjunction with initiatives that would allow for a quicker response.

The ICS also advocates, for companies, the need to comply with Best July/August, 2011 BC Shipping News 11

INDUSTRY INSIGHT tains the requirement for all ships to carry a Ship Energy Efficiency Management Plan and the adoption of legislation to bring into force the Energy Efficiency Design Index.

Hinchliffe believes a positive vote for the proposal is necessary to ensure the IMO continues to be the main body regulating the shipping industry. If the vote fails, there is fear that the UNFCCC will then develop their own legislation which will be political in nature and void of input from the industry.

While the ICS recognized that ECA legislation would be expensive for the industry, a few unexpected developments have occurred which have heightened concerns.

Regarding Market Based Measures, Hinchliffe noted that there were currently seven proposals under consideration at the IMO. The ICS supports a levy/compensation fund system where collected revenue is then used primarily to assist developing countries with mitigation measures as well as research and development for efficiency improvement within the shipping industry. The ICS believes that only one economic measure should be applied to shipping and that this should be under the control of the IMO.

Emission Control Areas The third issue facing the international shipping industry is Emission Control Area legislation. While the ICS recognized that ECA legislation would be expensive for the industry, a few unexpected developments have occurred which have heightened concerns. With the first ECA now established in the Baltic and North Sea (and the second ECA confirmed for North America), companies in the Baltic have done studies looking

at the impact of using low sulphur fuels and associated costs and have found that it may be cheaper for them to move toward trucking and road modes of transportation rather than shipping. Hinchliffe sees some serious consequences if there is a modal shift such as is being considered. “Not only will it be bad for short sea shipping but bad for the environment as truck emissions increase and bad for the roads as systems become overloaded with increased volume,” said Hinchliffe.

The ICS, as a representative of the shipping industry, is not able to take the issue back to the IMO but is optimistic that countries, such as Finland, Sweden or Germany who will be impacted the most by this modal shift problem will request a review of the legislation.

Hinchliffe further outlined some of the uncertainties that accompany ECA legislation including the impact on sectors other than shipping (such as home fuelling); the availability of distillate fuel given the slow response from oil refineries to invest in infrastructure that would accommodate demand; and compliance options including technology such as scrubbers. The ICS is currently developing a paper on compliance options by region and sector and is urging Baltic State Governments to request a review of ECA legislation at IMO.

About Peter Hinchliffe OBE Peter Hinchliffe was appointed as the Secretary-General of the International Shipping Federation (ISF) and its sister organization, the International Chamber of Shipping (ICS) in July 2010.

After graduating with a Bachelor of Science Degree in Systems and Management, Peter joined the British Royal Navy where he enjoyed a 22-year career, including five years as commander of a nuclear submarine.

He joined ICS in 2001 as Marine Director and represented the ICS at the International Maritime Organization on safety and environmental issues. Peter is a Fellow of the Nautical Institute.

About the International Chamber of Shipping The International Chamber of Shipping (ICS) is the principal international trade association for the shipping industry, representing all sectors and trades.

ICS membership comprises national shipowners’ associations whose member shipping companies operate 80% of the world’s merchant tonnage.

Established in 1921, ICS is concerned with all technical, legal and policy issues that may have an impact on international shipping.

12 BC Shipping News July/August, 2011

CONFERENCE SUMMARY

Recap: BIMCO General Meeting 2011 President Robert Lorenz-Meyer opens the General Meeting of the Baltic & International Maritime Council as stakeholders in the shipping industry gather to discuss sustainability.

V

Photo credit: Mits Naga

ancouver played host to the Baltic & International Maritime Council’s 2011 General Meeting in early June. With approximately 250 delegates representing over 30 countries, this was the first time the meeting had been held in Canada since the Council’s inception in 1905 and only the second time in North America.

In addition to executive and committee meetings that ran over two days, the Chamber of Shipping of British Columbia sponsored BIMCO 39 — a networking platform for professionals under the age of 45. The full day session focussed on “Green Shipping seen from the perspective of ports and shipowners” and featured notable speakers such as Robert Allan, Robert Allan Ltd. Naval Architects and Marine Engineers, Howard Seto, Teekay Marine Services, Paul Topping, Environmental Protection, Transport Canada, Dr. Mark Trexler, Det Norske Veritas and many more. Sessions ranged in topic from “North West Ports Clean Air Strategy” to “Where is Green Shipping Heading” to “Oil Spill Liability and Seafarer Criminalization” to “What you need to know about LNG as a Marine Fuel”.

The General Meeting, attended by all delegates, was officially opened by representatives of the Squamish First Nation who performed the Ceremony

of the Talking Stick. BIMCO President Robert Lorenz-Meyer, welcomed attendees before introducing the Honourable Blair Lekstrom, Minister of Transportation and Infrastructure, Government of British Columbia. Mr. Lekstrom brought greetings on behalf of Premier Clark and confirmed the provincial government’s commitment to working with the industry to ensure an effective transportation network for Canada’s Pacific Gateway. In addition to highlighting the work underway on access routes and port expansion, Lekstrom lauded the recent agreement between the BC Maritime Employers Association and International Longshore and Warehouse Union Canada that provided for eight years of labour stability. “British Columbia can assure confidence and certainty of operations,” said Lekstrom. “The atmosphere is welcoming and we are open for business.”

The theme of the day, sustainability, was covered through a morning session, the Elements of Sustainability and an afternoon session, the Consequences of Sustainability. Jeremy Hayes, News Editor for BBC, United Kingdom, provided moderation for both sessions.

Prior to engaging in discussion, panel members gave brief presentations to introduce key themes.

Dr. David Foot, Professor Emeritus of Economics at the University of Toronto, Canada, and author of Boom, Bust and Echo, provided a fascinating look at demographic trends throughout the world. Dr. Foot noted that the trends were significant not only to identify growing windows of demand but to profile current and future employees.

While many Western European and developed countries have fallen below

Photo credit: Mits Naga

The Honourable Blair Lekstrom, Minister of Transportation and Infrastructure, welcomes attendees on behalf of the BC Government.

July/August, 2011 BC Shipping News 13

CONFERENCE SUMMARY

Photo credit: Mits Naga

BIMCO General Meeting: morning session panel from left to right: Dr. David Foot, Jeremy Hayes, Dr. Hermann Klein and H.E. José Figueres the key fertility rate of 2.5 children per family (the necessary number for sustainable population growth), countries like India, Indonesia, Brazil, Pakistan, Afghanistan, Egypt and Yemen had rates of four to six children per family.

The future success for these countries depended on maintaining adequate resources to sustain the growing youth.

“They will either leave or tear the country apart if you don’t create jobs for them,” said Dr. Foot.

H.E. José Figueres, Chairman of the Carbon War Room, Past President of Costa Rica and Past CEO of the World Economic Forum, Costa Rica, gave a stark look at the challenges facing the

world in terms of climate change and the difficulty for companies to meet necessary environmental goals while ensuring profitability. “We are currently at 385 parts per million of carbon in the atmosphere,” said Mr. Figueres. “Anything over 450 parts will create a change of plus or minus five degrees centigrade.

That kind of temperature shift poses a huge risk for the world.” In describing the Carbon War Room, which he chairs, Figueres described three “battles”: 1) aviation; 2) energy efficiencies of buildings; and 3) shipping which emits one billion tonnes of carbon each year.

A video message from Dr. Faith Birol, Chief Economist of the Inter-

national Energy Agency, France, gave some insight into global energy markets, pointing to factors such as the uncertainty of the global financial situation, the volatility of oil prices, and the Fukishima, Japan earthquake and tsunami which has led to reluctance of countries to pursue nuclear energy. The implications of this policy would likely mean an increase in the use of coal and natural gas, leading to higher prices and less “eggs in the basket” in terms of energy security.

Dr. Hermann Klein, Member of the Supervisory Board of Germanischer Lloyd SE, Hamburg & IACS Vice Chairman, Germany, looked at future global market trends, predicting that the “energy mix” would change. Alternative energies such as sun, wind, water, alternative fuels and more efficient ship designs would provide options to achieve high efficiency and lower costs.

Regulatory pressures would continue to push for reduced levels of greenhouse gases. He noted that the Energy Efficiency Design Index planned for reduced levels of 28% over 25 years however Dr. Klein felt that this would not be enough to reach targets that bring CO2 levels back to sustainable levels.

Discussion following the brief presentations further allowed for investigation of ideas and issues raised. Key points included discussion about the need for greater clarity and leadership

Photo credit: Mits Naga

BIMCO General Meeting: afternoon session panel from left to right: Dr. Helmut Sohmen, Michael Behrendt, Per Skovhus, Jeremy Hayes, Robert Lorenz-Meyer and Yudhishthir Khatau.

14 BC Shipping News July/August, 2011

CONFERENCE SUMMARY

Photo credit: Mits Naga

Luncheon speaker: Port Metro Vancouver CEO Robin Silverster outlined initiatives such as the Asia-Pacific Gateway and long-term labour agreements that make the West Coast an attractive destination for shipping. from governments; the emergence of shale gas as technology provides more and more opportunities for extraction; and further dialogue on skills training and labour.

The afternoon session, Consequences of Sustainability, provided the opportunity for top executives in the shipping industry to provide their views on future challenges within the context of sustainability. Jeremy Hayes continued with moderation duties.

Dr. Helmut Sohmen, Chairman of BW Group, Hong Kong S.A.R. China, began the panel discussion with an overview of what sustainability means for the industry. Dr. Sohmen followed the trend established in the morning and continued the discussion of issues such as labour and recruitment; the reality of climate change and the opportunities — not just challenges — that are created; and the debate on carbon tax versus a cap and trade system. Dr. Sohmen stressed the need for the industry to provide greater leadership within

current debates. “As long as the industry is divided,” saidt Dr. Sohmen, “the harder it will be to gain clarity.”

Dr. Sun Jia Kang, Vice President of the COSCO Group, China, provided a video message for attendees, noting three areas of consequence: 1) economic growth within the context of climate change and how shipping companies must spend more due to extreme weather as well as the necessity of funding new innovations to provide for greater sustainability; 2) the energy shortage and new technologies precipitated by soaring oil prices; and 3) a growing concern over a shortage of seafarers, especially with more new builds coming up.

Dr. Kang called for greater respect of seafarers and stronger encouragement of governments to take effective action on issues such as piracy and criminalization of seafarers.

Michael Behrendt, Chairman of the Executive Board of Hapag Lloyd, Germany, and President of the German Shipowners’ Association, provided a perspective from European shipowners, noting that shipping was very much a family business and succession plans are, and have always been, necessary for long-term sustainable growth. Sustainability, said Behrendt, is about much more than just the environment — it is about an investment in the future that might be costly at first but will pay off in the long-term.

Per Skovhus, Chairman of the Danish Ship Finance, Denmark, predicted that, as the world economic situation continues to move slowly toward recovery, banks will start to put stricter lending regulations in place as well as standards for compliance. “Lending to green ships will be preferable over others,” said Skovhus. Banks are concerned with vessel prices and worry that the economic lifetime for the current fleet could shorten if the move to greener ships happens too quickly. Skovhus also expected that banks would require secured deposits on long-term loans.

Robert Lorenz-Meyer, President of BIMCO, and President Designate Yudhishthir Khatau, participated in the discussion following the brief presentations. Jeremy Hayes initiated a discussion on the difficulties of greening ships while trying to recover economically. Slow steaming was seen as a method that would be increasingly demanded by the public in an effort to reduce emissions however in the long-term, shipowners would need to evaluate the benefits of refits versus the costs.

As attendees became more engaged in the discussion, views on the need for greater education and communication with governments; and the need for a level playing field amongst all countries, including developing nations were highlighted.

David Koo, Chief Operating Officer and Director of Valles Steamship (Canada) Ltd. ended the session by complimenting panel speakers and attendees for a stimulating discussion and exchange of ideas on a global basis. “Within the context of both the environment and the human element we must continue to work together,” said Mr. Koo. BCSN

Photo credit: Mits Naga

David Koo, COO and Director of Valles Steamship (Canada) Ltd. provided final words to delegates at the General Meeting.

July/August, 2011 BC Shipping News 15

HISTORY LESSON

Vancouver shipbuilders

By Carrie Schmidt

Librarian and Archivist, Vancouver Maritime Museum

T

he W.B. & M.H. Chung Library at the Vancouver Maritime Museum welcomes a variety of researchers: scholars of all ages, seasoned maritime historians and writers, documentary filmmakers, genealogists, and the generally curious. Sometimes, “curious” can mean an inquisitive person, sometimes it can refer to an eccentric personality — and often both at the same time.

A recent visitor to the library had a, well, curious take on local history: “Most of the big ships were built in Great Britain — not too many built around here. Vancouver doesn’t have much of a history of shipbuilding, maybe only one or two yards of any significance.”

It is times like this that a friendly smile, a gently murmured “Oh, really?” and a bite of the tongue are more appropriate than stamping one’s feet and shouting “You are wrong, wrong, wrong!”

History-based arguments can be difficult to win — sources can be incorrect, new research may have emerged that one is unaware of, typos can wreak havoc, documents are lost or misplaced, and facts become blurred by emotion and memory. This particular individual 16 BC Shipping News July/August, 2011

was correct, in a way: Vancouver cannot take credit for building a massive vessel such as the Titanic, but Vancouver’s shipyards are far from insignificant.

Shipbuilding has played a vital role in building British Columbia’s econ-

omy — and Vancouver’s, in particular.

The World Wars brought the typical wartime boom and bust cycle to shipyards throughout British Columbia, especially yards in Vancouver and Victoria. According to a book produced by

Shrinking bands on cargo booms circa 1940s at Burrard Dry Dock Co. Ltd. — East Esplanade at Lonsdale Avenue in North Vancouver (1921-1979).

VANCOUVER MARITIME MUSEUM the Marine Workers and Boilermakers Industrial Union, Local No. 1 titled A History of Shipbuilding in British Columbia, BC shipyards produced a total of 37,300 tonnes in 1917: 12 wooden schooners, one wooden steamer, and one steel steamer.

By 1918, those numbers exploded: four schooners, 26 wooden steamers, and 16 steel steamers were built, producing a total tonnage of 145,000.

During the first World War, BC shipyards were responsible for building one-third of Canada’s total war-time cargo shipping. This was followed by massive layoffs, similar to what occurred after World War II: 1944 saw a peak of 24,000 shipyard workers in Vancouver and by 1945, only 16,000 workers were employed, with more layoffs to come. Repairs to international vessels were also a vital part of the shipbuilding business, as was refitting or reconditioning travel / pleasure vessels for wartime service.

The museum’s library has a directory of BC Boat Builders; it lists wellknown companies such as the naval architecture company Robert Allan Ltd. (founded in 1929 and still going strong), to individuals such as John Adams, who, while based out of the small community of Savona, was responsible for building the sternwheeler Kamloops in 1872.

The directory lists 107 North Shore shipyards / boat businesses, 45 False Creek builders / businesses and 76 Japanese boat builders — Coal Harbour has another few hundred marinebased businesses. And that’s just the Vancouver area, let alone the rest of British Columbia, from Port Alberni to Victoria to Bella Coola, to Cowichan Bay to Prince Rupert….large or small, British Columbia has not lacked for shipyards. Many of these businesses lasted only a year or two, while others lasted for years — sometimes changing locations or names, but persevering nonetheless.

Lyall Shipbuilding Co. Ltd., in business from 1917-1920 at the foot of Bewicke Avenue, North Vancouver. The above photo shows mast schooners being built at the Lyall Yard in 1918. The two centre vessels are the “Alice Beauclerk” and the “Helen Lyall”.

Wallace Shipyards Ltd. was originally located at 1575 Granville Street, Vancouver (1905), then moved to the foot of Lonsdale Avenue in North Vancouver between 1906 and 1909, before changing its name to Burrard Dry Dock Co. in 1921. Alfred Wallace was the founder of Wallace Shipyards, but before opening the shipyard, was listed as an independent boat builder in city directories as early as 1892.

July/August, 2011 BC Shipping News 17

bc SHIPYARDS

BC excited over prospects of federal shipbuliding contracts

By Ray Dykes

T

he biggest prize contracts of most work lifetimes will be known to the British Columbia shipbuilding and repair industry by late summer.

That’s when the Federal Government will announce its decision as to which two shipyards will get a slice of the $35 billion National Shipbuilding Procurement Strategy (NSPS). There are two contracts up for grabs — a combat ship portion worth about $20 billion for the building of 12 to 15 frigates and six to eight Arctic offshore patrol vessels; and a second prize contract worth $15 billion involving a larger number of vessels spread over more ship classes.

Going head to head for the combat contract are the BC champion, Seaspan Marine Corporation (former Washington Marine Group); Irving Shipbuilding, of Halifax; Davie Yards of Levis, Quebec; and Upper Lakes Industrial and Marine, of St. Catherines, Ontario. Only Upper Lakes is not thought to be bidding for the non-combat portion. No yard can win all of the work.

18 BC Shipping News July/August, 2011

The deadline for submitting bids is July 7 and Seaspan’s Vice President of Program Management, John Shaw, says the western company will likely submit its paperwork the day before.

If the unthinkable happened and Seaspan and the BC shipbuilding industry were shut out, the impact would be devastating.

“We stand a very good chance based on our commitment, financial strength, and track record,” he says. “We will submit for both, but the combat portion has the higher dollar value and greater certainty . . . this is the prize.”

If BC wins the non-combat portion instead, Shaw says this will still allow the industry to invest in progress.

“What we don’t want to do is wind up third,” he adds.

And George MacPherson, President of the Shipyard General Workers’ Federation of BC, has been quoted in

the daily media as saying NSPS success would “guarantee us work for the next 30 years which is unprecedented in this industry.”

If the unthinkable happened and Seaspan and the BC shipbuilding industry were shut out, the impact would be devastating.

“We would be decimated as an industry as there would be no opportunity for long-term investment and growth,” says Shaw. “The future of the Canadian shipbuilding industry would then lie in the hands of two eastern shipyards.”

BC Premier Christy Clark toured Seaspan’s Vancouver Shipyards in early June before heading off to Ottawa adding provincial weight to trying to help snag NSPS success, which could bring over 8,000 jobs to the province over the next few years.

Seaspan’s bid rests on the strength of its three shipbuilding entities under the corporate umbrella revamped in February away from the old Washington Marine Group name. Now, Victoria Shipyards Co. Ltd., Vancouver Shipyards Co. Ltd.,

bc SHIPYARDS and Vancouver Drydock Company Ltd., come together as Seaspan Marine Corp. in a revival of the old Seaspan International brand. Seaspan also owns the Vancouver Island to Vancouver tractortrailer barge service, Seaspan Ferries Corporation.

With NSPS success, the BC shipbuilding industry could be poised for its greatest revival since the World War II Liberty ship building program with an order book like a dream come true.

And it’s not just Seaspan that will gain as shipbuilding yards rely on each other in sub-contracts and taking care of business such as BC Ferries and other repair, refit and rebuild work for the tug and towboat industry, forestry needs and pleasure craft.

Only a few new building projects are currently under way, but it’s not a lost art form on the West Coast.

“Our West Coast proposal through Seaspan is second to none and we have a very good chance,” says Ron van Wachem,

Chair of the Pacific Coast Shipbuilders Association, and President of the Nanaimo Shipyard Group. The association, made up of 11 BC shipyards and the unions that rely on them for their livelihood, is determined to see BC get its “fair share” of the biggest treasure chest of work ever envisioned in the past century.

While the BC shipbuilding industry has been in general decline in the past decade, here’s how the BC industry fared in 2010 and how 2011 was shaping at the halfway point.

The man with the “dream order book” is convinced this is the “most exciting period of his 46 years in ship building...

Victoria Shipyards The man with the “dream order book” is convinced this is the “most exciting period of his 46 years in ship building and repair” in BC. In fact, Malcolm Bark-

er, General Manager of Victoria Shipyards, says if you’re in the industry and don’t feel optimistic now “then it’s time to leave shipbuilding as it’s not near and dear to your heart.”

His yard, nestled next to the Esquimalt Graving Dock, is busy on four fronts — commercial ship repair, new construction, the Victoria In-Service Support Contract (VISSC) covering Canada’s four hunterkiller submarines, and FELEX, the frigate life extension program — making 2010 a “very traditional year.”

On the commercial side, the shipyard did repairs for cruise lines, BC Ferries, Puget Sound and local fishing boats, and the tug and barge trade in Washington State and British Columbia.

New construction saw the expansion of the Motor Life Boat contract by another five vessels — the yard completed 24 in a successful earlier contract completed in 2005 – and Barker says the latest boats were completed and delivered in the First Quarter of 2011 under

Aerial view of Victoria Shipyards and Esquimalt Graving Dock.

July/August, 2011 BC Shipping News 19

bc shipyards the terms of the federal Economic Action Plan that ended March 31. Three went for service on the East Coast and two stayed on duty in BC waters.

VISSC will bring Canada’s four diesel submarines to the Victoria yard starting now with HMCS Chicoutimi, followed at regular intervals by HMCS Corner Brook, HMCS Windsor and HMCS Victoria for eight-month long refits. Work on the Chicoutimi is about a third completed and once all four have been done, they’ll cycle back through the yards for a deep-dive refit, a program that will run till 2023.

Under FELEX, five Canadian Navy frigates will be given major topside upgrades giving them another 15 years of service capability for weapons systems and electronics. “They’ll be getting the latest and greatest electronics making them much more useful,” says Barker.

Each life extension refit takes about 12 months. HMCS Calgary docked in Victoria Shipyards on June 6, 2011 to kick off the program and will be followed by other frigates in the fleet: Vancouver, Ottawa, Winnipeg and Regina.

Another yard highlight in 2011 was the dry docking of the Royal Caribbean cruise ship Radiance of the Seas on May 20 for major repairs and refurbishment.

The hectic project took 20 days and involved 450 shipyard employees, numerous worldwide specialists, and support work from a crew of 800, according to Barker. Another scheduled project is the refit of HMCS Protecteur starting in February, 2012 and running through till December 31.

Usually employing between 350 and 400 people, Victoria Shipyards is now running with 550 and will soon reach 600 as work continues on two vessels under FELEX and VISSC. Barker says the order book is “pretty neat” and allows the shipyard to move from planning for 12 months to planning for five to 10 years ahead. This allows employees to look at careers rather than just jobs, he says. And it will allow Seaspan to invest in more apprentices.

20 BC Shipping News July/August, 2011

Esquimalt Graving Dock BC’s largest dry dock is busy with solid bookings for the next five years and well beyond, says General Manager, Jim Milne. With a steady diet of cruise ships and other government work through Seaspan, the dock had a “very good” year in 2010 recording about one million man hours. This year, Milne expects it will be even busier and reach a record 1.3 to 1.4 million man hours.

The graving dock, which can handle vessels up to 100,000 deadweight tonnes, installed a new Kone 30-tonne level luffing crane on its south side in 2010, and moved a 30-tonne Ebco model to the north side to work with its giant 150-tonne Krupp level luffing crane. It plans to sell off its idle 45-tonne Colby hammerhead crane. It also extended its lay down area by 100 feet, to give more space for ship repair firms.

However, officially opened in 1927, its future is in limbo depending on the NSPS decision and how much of the program comes to BC. Milne, who has been advocating major upgrades over the past few years without a lot of sympathy from his federal Public Works & Government Services owners, says questions will then be asked “about what infrastructure improvements do we need?”

In June this year the yard was in a rare “lull” as everyone was waiting to see what Ottawa’s decision would be on the big contracts.

Esquimalt Drydock Company Overall, 2010 proved a “good year” for the Victoria company, situated close to the Esquimalt Graving Dock.

Superintendent and Dockmaster, Norm Wickett, says major projects included the sewage system replacements on several BC Ferries vessels. The upgrade also involved a dry dock and refit for power wash or sand blasting, plus extra steel work and shafting on the Queen of Coquitlam, Queen of Nanaimo, Queen of Capilano, and the Queen of Cumberland

with three being handled at once at one stage.

A good work flow has continued into 2011 on barges and the dredge vessel Fraser Titan for annual steelworks, shaft work and seals, plus a change to water injection. If the year continues as expected the company will be as busy as last year.

The company also loads and discharges pleasure yachts in Victoria for Yacht Path International Inc. of Florida and after a slower year in 2010 it has discharged 70 boats already in 2011.

Employing about 50-60 people, including sub contractors, on a regular basis, Esquimalt Drydock has been busy this year with a major refit of the Queen of Surrey, including the sewage upgrade, dry docking for shaft seal replacement, and steelwork on the hull and decks. The barge MS #3 was also in for a blast and paint over seven days for Catalyst Paper.

The shipyard and engineering facilities in the Victoria Inner Harbour finished 2010 strongly and has had a good start to 2011...

Point Hope Maritime Ltd. The shipyard and engineering facilities in the Victoria Inner Harbour finished 2010 strongly and has had a good start to 2011, according to Dave Bukovec, General Manager of the affiliated United Engineering. Both facilities share a common labour pool.

A major midlife refit of the Quadra Queen II saw employment peak at a record 100 compared to about 40 normally in a project that spread over almost eight months in 2010. Other projects involved repairs to Orca Class naval vessels; the K-Sea Transportation tug Altair from Washington for steelwork, shafts and valves; several Seaspan tugs, a Greater Victoria Harbour Authority vessel; and a number of smaller vessels.

Bukovec says the outlook is “more promising” than usual for the shipyard in 2011.

bc SHIPYARDS Nanaimo Shipyard Group Major success under NSPS for Seaspan will be good for all BC shipyards, says Ron van Wachem, President of the Nanaimo ShipMajor success under NSPS for yard Group. With facilities in NaSeaspan will be good for all BC naimo and Port Alberni regularly shipyards, says Ron van Wachem... employing from 90 to 110 people, the group had an “all right year in 2010, nothing to write home about, but better than in 2009,” says Van Wachem.

With 2011 off to a good start, in June the Nanaimo yard was able to help a stranded Alaska bound offshore oil rig complete welding and other repairs while Jones Act paperwork issues were resolved. The Spartan 151 was on its way from the Gulf of Mexico and the Nanaimo stopover involved about 10 workmen doing repairs for about two to three weeks.

Nanaimo also did regular repair work on the Queen of Burnaby and Queen of Coquitlam and does warranty work as agent for German shipbuilder Flensburger SchiffbauGesellschaft on the three Coastal Class vessels Inspiration, Celebration, and Renaissance.

At Port Alberni, the yard is “very, very busy,” fabricating two 50-foot pollution response vessels known as PRB 3s, says Van Wachem. With the pickup in the forestry industry, the Alberni yard has built a new log recovery barge and two log sort sidewinder craft, which Van Wachem says are the best built of their kind in the world.

Ocean Pacific Marine Supply in Campbell River, BC.

McTavish Welding As years go, 2010 was a “pretty good year” but without any boat building.

Specialists in marine welding, McTavish of Campbell River completed two new tugboats for local Gowlland Towing back in 2008, but in 2011 it has had to settle for building two 18-foot sidewinder boom boats.

Sylte Shipyard in Maple Ridge, BC.

Most of the yard’s work, says owner Rick McTavish, has been logging fleet repairs and the fabrication of such things as walkways and water intakes, particularly for fish farms.

Ocean Pacific Marine Supply With a marine store, boat yard and 110-tonne travel lift, Ocean Pacific in Campbell River can have up to 20 small boats in its yard for repairs at a time and has been busy so far in 2011, according to company owner and President Bruce Kempling.

Recent major projects have included Catalyst Paper’s 45foot tug Teeshu in for refit and repairs. The four-month project included a complete refit and welding of hull plat-

DGPS dynamically positioned work barge at Nanaimo Shipyard.

July/August, 2011 BC Shipping News 21

bc shipyards

Allied Shipyards in North Vancouver, BC. ing before it returned to service the company’s Power River pulp mill. The Comox search and rescue training vessel Black Duck was due to complete a sixweek refit in June, but the job has since doubled in size on the 55-foot fiberglass vessel and work continues.

Vancouver Shipyards With so much excitement in the offing, the Lower Mainland’s biggest shipyard has been quietly doing its work and did “reasonably well” in 2010, according to Tony Matergio, Vice President and General Manager. “We went into the recession late and came out of it later than most, but still had a respectable year,” he says.

The yard designed and is building a 32,000-barrel oil barge for Marine Petrobulk known as the Petrobulker, which is the biggest new build underway in BC. And it has been busy building three standard chip barges for Seaspan and doing several barge refits for the parent company and others. As well, five or six ship dockings a day bring in a variety of smaller jobs.

The yard employs 250 and that’s just slightly ahead of its average in 2010.

The Panamax dry dock has a 36,000tonne lift capacity complemented by a 210-metre deep-sea dock equipped with an 85-tonne crane...

Vancouver Drydock With Matergio also as its Vice President and General Manager, the dry dock welcomed a loosening of the purse strings of shipowners this year as more and more vessels were dry docked for maintenance work that was previously delayed.

Vancouver Drydock and Shipyards in North Vancouver, BC. 22 BC Shipping News July/August, 2011

The dock continues to win work with BC Ferries and had the Northern Expedition in for a three-week standard refit, and in June had just finished a similar refit on the North Island Princess, a job that took almost five weeks.

The Panamax dry dock has a 36,000tonne lift capacity complemented by a 210-metre deep-sea dock equipped with an 85-tonne crane and machine shop and steel forming facilities.

Matergio says government work is very important to the Seaspan group and NSPS success will allow Seaspan and the Vancouver facilities to invest more in apprentices and trades people.

...the North Vancouver and Dollarton shipyards are “ensconced in repair and refits,” says Malcolm McLaren...

Allied Shipbuilders Repair and refit specialists, Allied has been part of BC shipbuilding industry for 63 years and has built over 260 vessels since Day One. But, there have been no new builds since 2007 for the company, although it remains willing, such new projects haven’t been common for anyone in BC in the past few years.

Instead, the North Vancouver and Dollarton shipyards are “ensconced in repair and refits,” says Malcolm McLaren, President of Allied Shipbuilders.

Second only to Seaspan and its affiliated companies on the BC scene, Allied regularly employs about 100, down from the 120 of a year ago.

The Canadian Coast Guard midshore patrol vessel Tanu was back in for

BC shipyards a life extension refit in July, 2010 and emerged in December with new generators, a rebuilt and upgraded galley, hull and steelwork, and a crane replacement in a $5 million project.

The CCG navigational aids tender Bartlett was given a similar life extension refit in June, 2010 in a $15 million project that included major steelwork and equipment and machinery replacement, in what McLaren calls a “big, big job.”

Other projects have included the BC Ferries Howe Sound Queen for its fouryear Transport Canada survey, painting and new deck work. The most recent was the ferry Klitsa from the Mill Bay run, which received new right angled drives, a rebuilt engine room and other upgrades, repairs and painting.

McLaren sees “amazing opportunities” ahead through NSPS success and says most yards should be able to capitalize on them “or there is something wrong with you.”

The

Richmond

shipyard...upgraded

facilities, marine structures, approach

involved the replacement of the lifesaving systems, two new davits, new rescue boats and slide evacuation system, and four new flood control doors on the car deck. The vessel also went to the Esquimalt Graving Dock for hull blasting, a propulsion system upgrade, a sewage system upgrade, new car deck lighting, improved crew accommodation, and a new fire suppression system.

The mid-coast ferry was back in service in June, but will return to the yard in December for $8 million Phase II work including passenger space and accommodation upgrade, new generators and switchboard. Deas Pacific is also involved in the fleet-wide sewage upgrade and has done the work on the Queen of New Westminster and the Queen of Coquitlam.

And the Coastal Celebration was repaired over 2.5 weeks following bow door damage suffered in a hard docking.

The Richmond shipyard, which saw employment peak at 180, now has about 100, and underwent a revamp of its own with upgraded facilities, marine structures, approach dolphins, fenders

and berth ramps in 2010. Other work includes revamping some of the older buildings on site, including upgrading change rooms, showers and lunchroom.

Dawson, at age 87, is still going strong as co-owner of ABD [Aluminum Boats]...

ABD Aluminum Boats After 45 years working exclusively with aluminum, “the miracle metal,” as Al Dawson puts it, ABD is currently working on a 65-foot steel tractor tug new build. Dawson, at age 87, is still going strong as co-owner of ABD and says the new tug will be finished by December for Standard Towing of Burnaby.

The North Vancouver yard’s complement of 18 employees is also putting the final touches on two 36-foot, twin John Deere-powered Tymac pilot boats, one of which was due for completion in June and the other in July. For ABD, 2010 was a “bit of a downer,” says Dawson, but the yard did finish two whale watching boats for Vancouver owners.

dolphins, fenders and berth ramps...

Deas Pacific Marine As the repair and maintenance arm of BC Ferries, Deas Pacific had a “relatively normal” year in 2010, says Executive Director K.S. Ng. Last year saw the Spirit of British Columbia in for its annual refit and upgrade; the Queen of Nanaimo given temporary repairs in September until it could dry dock in October; the Quadra Queen II given a 20-year life extension in a $15 million refit involving propulsion systems, ship safety equipment and other mechanical upgrades; and the Mayne Queen given a lifesaving system upgrade.

Major work so far in 2011 includes the $7 million life extension refit of the Queen of Chilliwack, which in Phase I July/August, 2011 BC Shipping News 23

bc shipyards Sylte Shipyard One yard that is “busy, busy, busy” boat building, is Sylte Shipyard in Maple Ridge. Owner Erling Sylte, who is about to turn 83, keeps himself involved about the yard these days and has a team of 18 employees, up from 15 in 2010.

One yard that is “busy, busy, busy” boat building, is Sylte Shipyard in Maple Ridge.

The shipyard is building a 58-foot tug for Samson Tug Boats Inc., of Delta and is starting another 59-footer for Gowlland Towing of Campbell River. That order follows the completion of a 40.9foot tug for the Vancouver Island company just two months ago.

“There’s even talk about a fish boat and it has been 10 years since we built

one,” says Sylte, who came out of retirement in 1988 to build a boat for a friend and never stopped. “I gave up on that,” he says of retirement.

Tom-Mac Shipyard Business was “better than average” at Tom-Mac in Richmond in 2010 and the Fraser River tugboat industry can be thanked for that as they make up 75% of the work these days. Much of it is shaft and hull work and it’s enough to keep 12 employees reasonably busy, says Office Manager, Kevin Serka.

There’s the fisheries patrol Surf Bird in for certification work and the fish boat Alaska Queen II was also in for similar. Fish boats once made up 95% of Tom-Mac repair and certification work.

While Tom-Mac is not finding it hard to find trades people, Serka says it’s hard to keep them busy all of the time.

The yard has no room to grow on site,

but it still bills itself as BC’s “best small shipyard.”

Arrow Marine Services For Arrow Marine these days, keeping busy means “anything that comes through the door we’ll go for,” says Vice President Brian Charles. While revenues in 2010 were about the same, profit margins were thin. “It’s tough to make a profit, margins are so skinny,” adds Charles.

...Arrow has an ace up its sleeve in the form of sustained steel fabrication work for Public Works Canada and the Department of Fisheries & Oceans.

The Richmond shipyard has had a “pretty good start” to 2011 with about 40 boats in for general repairs in two months alone, for projects ranging from bottom paint to bulbose bow work, but even then, the order book and prospects are still “not too exciting.”

However, Arrow has an ace up its sleeve in the form of sustained steel fabrication work for Public Works Canada and the Department of Fisheries & Oceans. Over the past two years it has built 20 steel pontoon breakwaters for the two government departments.

These structures, which can either be double stacked as breakwaters, or decked over as mooring berths, have been a lifesaver for the yard.

Charles says they’re busy now on a 130-foot by 25-foot concrete breakwater through DFO for the Lund Harbour Authority. That structure weighs in at 560 tonnes.

The yard has 20 employees but has been as high as 30 in a good year. Among the more unusual jobs tackled was the trimming down of an Alaska bound seiner for McMillan Fish so it could meet state requirements. The yard cut off the bow, installed watertight bulkheads and bolted the bow back on,

24 BC Shipping News July/August, 2011

bc shipyards making the vessel a trim 58-footer. A second fish boat is on its way for a similar makeover.

The impact has been an 85% drop in all repairs to tugs, barges and fishing boats and it is making life hard...

Fraser Shipyard Industrial Centre

in the barge building business. The yard also worked on hull plating and drop down ramp repairs on a 95-foot landing craft for Coastal Sea Trucking.

Moffat says the yard is “plugging along” and had a “pretty slow and uneventful” 2010.

Like the rest of the BC shipbuilding industry, McKenzie Barge would benefit from good news from Ottawa and

the NSPS contracts, with the hope that more work would filter down to many yards now struggling to make ends meet.

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.

These are scary times at Fraser Shipyard and Dockmaster Ye Tong is clear as to why — the harmonized sales tax, which led to the “worst year ever in 2010.”

Tong says HST has hit the fishing and tugboat industries hard forcing formerly Provincial Sales Tax exempt boat owners to pay extra taxes. Even if they eventually got some of the tax back, many have opted to do as little by way of repairs as they can, just doing a temporary fix so they can work to get more money.

The impact has been an 85% drop in all repairs to tugs, barges and fishing boats and it is making life hard for the shipyard. “If the tugs are busy then I’m busy,” says Tong. “But, right now the tugs aren’t busy.”

Once with a steady team of 22 employees before the introduction of HST, the Fraser Shipyard is struggling to find work for 14 today. “How long we can hang on I don’t know,” says Tong. “It’s pretty scary.”

Like the rest of the BC shipbuilding industry, McKenzie Barge would benefit from good news from Ottawa...

McKenzie Barge & Marineways Building barges was what it was all about for the Dollarton shipyard, but the facility hasn’t built one for 20 years, says Controller Brian Moffat. Today, the yard is mainly consumed with barge repairs and it hires 15 full-time workers, compared to the 100 it had when it was July/August, 2011 BC Shipping News 25

CRUISE

Cruise industry trends

By Donna Spalding, Director Administration, North West and Canada Cruise Association

T

he world’s growing love affair with cruising continues as the industry is expected to draw a record number of passengers from around the globe in 2011. Worldwide, the cruise industry has seen an annual passenger compound growth rate of 7.7% from 1990 to 2011.

Among the 2011 highlights: • the worldwide cruise market is estimated at $29.4 billion, a 9.5% increase from 2010 • total passengers carried worldwide is estimated at 19.2 million As in past years, the majority of the world’s cruisers will come from North America although the number of nonNorth Americans taking to the seas continues to grow rapidly. According to information released by the European Cruise Council, the cruise industry is the only area of the European tourism sector that is enjoying substantial growth: last year there were some 5.5 million European cruisers (a 10% increase compared to 2009), which works out to approximately 30% of cruise passengers worldwide.

Driving The Trend Recognizing the consistent upward trend, more new ships from lines such as Carnival, Celebrity Cruises and Disney Cruise Line are on order. Following the inaugural sailings of the Carnival

Dream, Royal Caribbean Oasis and Allure and the Norwegian Epic, an additional 14 new ships are expected to come on line by 2014. It is expected that this will increase the number of worldwide passengers carried to 21.6 million.

Today’s ships offer a new generation of onboard experiences and a world of innovation, including surf pools, planetariums, on-deck LED movie screens, golf simulators, water parks, demonstration kitchens, self-leveling billiard tables, multi-room villas with private pools and in-suite Jacuzzis, ice-skating rinks, rock-climbing walls, bungee-

trampolines and much more. They feature facilities to accommodate family members of all generations travelling together.

Cruise remains an unmatched vacation value. This, combined with globalization of itineraries, increased choice in dining experiences, and theme cruises — particularly those revolving around food, wine, music, and culture — continues to attract new cruisers to the cruising experience. New ship amenities and a growing number of destinations provide new opportunities for those who have enjoyed cruising before.

Suites, such as the one seen above from a Celebrity ship, now offer a level of luxury on par with the world’s best hotels.

26 BC Shipping News July/August, 2011

CRUISE briefs Cruise ships honoured by Port Metro Carnival offers Vancouver Blue Circle awards short cruises rincess Cruises, Holland Ameroutfitted to plug into a grid instead of from Boston to ica, Regent Seven Seas Cruises using engines to power their onboard Canada in 2012 and Silversea Cruises are among services while in port.

P

11 cruise and shipping lines honoured

by Port Metro Vancouver for their efforts to improve the area’s air quality.

The 2010 Blue Circle awards mark a company’s success in reducing its carbon footprint when calling in the city, including converting to innovative shore power technology. The system depends on a shoreside energy source and ships

P&O Cruises orders new build from Fincantieri

P

&O Cruises has announced that it will expand its fleet with a 141,000-tonne cruise ship, built

by Italian shipbuilder Fincantieri, scheduled to enter service in March 2015. The as-yet-unnamed 3,611-passenger vessel will be the largest in the P&O Cruises fleet, as well as the largest cruise ship built specifically for the British market.

It is of the same size as two vessels currently on order for sister company Princess Cruises.

To be built at Fincantieri’s Monfalcone yard, the the ship will offer a stylish and innovative new design and an unprecedented number of passenger facilities, along with many of the brand’s classic and iconic features. Specifications and new product innovations have not yet been announced.

The ship will be targetted specifically to British clientele as P&O Cruises continues their expansion strategy in the region.

Over the last 15 years, P&O Cruises has brought seven ships into service, ranging from the Adonia, a 710 passenger vessel, to the Azura with 3,100 passengers.

Holland America and Princess came together to play a key role in providing the power source, and partnered with the port, the Canadian government, the British Columbia Ministry of Transportation, and BC Hydro to invest $9 million. The project went live in August 2009.

“Port Metro Vancouver continues to make sustainability a top priority,” said Robin Silvester, Port Metro’s President and Chief Executive Officer. “We are pleased to honour those who achieve excellence in reducing air emissions with our Blue Circle Award.”

The other 2010 Blue Circle Award recipients are: • APL (Canada) • Grieg Star Shipping, Ltd. (Canada) • Hapag-Lloyd, Inc. (Canada) • “K” Line • Maersk Line • Seaboard International Shipping • Westwood Shipping Lines Port Metro Vancouver was the first port in Canada to offer shore power facilities. During the 2010 cruise season, the port welcomed 177 calls — including 44 shore power connections — and more than 570,000 passengers.

Under Port Metro Vancouver’s EcoAction Program for Shipping, Blue Circle Awards recognize the highest emissions reduction achievements.

F

or the first time, Carnival Cruise Lines will operate an extended schedule of voyages from Boston with a series of round-trip four- and five-day eastern Canada cruises aboard the 2,974-passenger Carnival Glory beginning in June, 2012. Carnival will be the only cruise line offering short cruises from Boston to the Canadian Maritimes.

On the new program, Carnival Glory will sail from the Black Falcon Cruise Terminal on four-day “long weekend” cruises departing Thursdays to Saint John, New Brunswick, and five-day voyages departing Mondays and Saturdays to Halifax, Nova Scotia; and Saint John. The program will operate June 10 to July 26, 2012. A special seven-day cruise will be offered June 3-10, 2012 with visits to Portland, Maine; and Saint John, Halifax and Sydney, Nova Scotia.

Following its cruises from Boston, Carnival Glory will reposition to New York for a series of four-day voyages to Saint John and five-day voyages to Saint John and Halifax from August 1 through September 3, 2012. Carnival Glory will also offer five week-long fall foliage cruises round-trip from New York to Halifax, Saint John, Boston and Portland, Maine in September and early October.

Following the fall foilage cruises, the ship will reposition to the Bahamas.

Customs Brokers • Steamship Agents Complete Import & Export Services Quality Service Since 1911 401-1208 Wharf St., Victoria, B.C. V8W 3B9 Tel: 250-384-1653 • Fax: 250-382-3231 E-mail: kingbros@kibro.com

July/August, 2011 BC Shipping News 27

WORKBOATS

Two new Robert Allan designs head south Z-Tech 7500 Class tug Tristan K and RAnger 2700 Class fireboat Christopher Wheatley delivered to US clients.

R

obert Allan Ltd. continues to demonstrate international demand for their designs, with the recent delivery of two vessels delivered to clients in the US.

Tristan K The first — the Z-Tech 7500 Class ship-handling / escort tug, the Tristan K — was delivered to Bay-Houston Towing Co. of Galveston, Texas where she will be operated by G&H Towing at the recently commissioned LNG terminal in Cameron, Louisiana.

Tristan K was designed by Naval Architects Robert Allan Ltd. of Vancouver, BC, with significant input from Mike Nigro, Vice President of Engineering at G&H Towing and his team and is the eighth of this class of handsome tugs for the same owner. The Z-Tech 7500 design builds on the international success of its smaller cousins, the now wellknown and well-proven Z-Tech 4500, Z-Tech 6000 and Z-Tech 6500 Classes.

Since their introduction to the world market only a few years ago there are now a total of 50 Z-Tech tugs operating throughout South-East Asia, Australia, the Middle-East, in the Panama Canal and at US Navy bases in Japan and the 28 BC Shipping News July/August, 2011

United States. Tristan K and its recently delivered sister tug Hercules are classed for both harbour and coastal towing and for tanker escort duty, and were built to ABS Class notation “ A1 Towing Service, AMS, Escort, Fi-Fi 1”.

Particulars of these Z-Tech 7500 Class tugs are as follows: • Length Overall: 30.00 metres (98’ 8”) • Beam, Moulded: 12.00 metres (39’ 4”) • Depth, Moulded: 5.00 metres (16’ 5”) • Draft, Maximum: 5.18 metres (17’) • Fuel Capacity: 169 cubic metres • Potable Water Capacity: 24 cubic metres Compared to the previous six Z-Tech 7500 tugs for the same operator, Tristan K and Hercules are equipped with a different propulsion system and hawser winch. Propulsion comprises a pair of MTU 16V4000-M70 diesel engines; each rated 2,240 kW at 2,000 rpm, driving a Rolls-Royce US 255 Z-drive with a 2,800 mm diameter propeller through a hollow, in-line shafting system. This combination delivers a Bollard Pull of 73 tonnes ahead, and provides a free running speed in excess of 13 knots.

The tug is outfitted for a crew of six persons, in modern and well-equipped facilities. The unique docking skeg fit-

ted forward of each z-drive unit will considerably reduce dry docking time and costs for the operator during the tugs service lifetime.

The main hawser winch is an electrically driven single drum Model DESF-48 200HP winch supplied by Markey Machinery of Seattle, WA. The winch has a line capacity of 213 metres (700 feet) of 72 mm diameter circumference (9”) synthetic line and a line pull of 207,000 kg (456,275 lbs. ) at a speed of 4 metres/ minute (13 fpm) or 1290 kg (2,850 lbs.) at 204 metres/minute (671 fpm).

Electrical power is provided by a pair of John Deere 6081-AMGK75 gen-sets, each rated 185 kW. The tug has a full Fi-Fi 1 rating in accordance with Class notation requirements. The two fire pumps are each driven by independent fire pump engines.

Christopher Wheatley The Christopher Wheatley, a new RAnger 2700 Class fireboat designed

by Robert Allan Ltd., and built by Hike Metal Products of (serendipitously!)

Wheatley, Ontario, was delivered to the Chicago Fire Department recently to replace the aging Victor L. Schlaeger.

The vessel was named in memory of

WORKBOATS Firefighter Christopher Wheatley, who lost his life in active duty in 2010. This fireboat is one of several of fireboats designed by Robert Allan Ltd. and built in Canada for US cities in recent years, signifying one of the very few market segments available to Canadian shipyards under the Canada-US Free Trade Agreement.

The principal particulars of this new RAnger 2700 Class fireboat are: • Length Overall: 27.42 metres (90’) • Beam, Moulded: 7.62 metres (25’) • Depth, Moulded: 3.71 metres (12’ 2”) • Maximum operating draft: 2.28 metres (7.5’) • Maximum Air Draft: 4.87 metres (16’) Capacities are as follows: • Fuel oil: 15,708 litres (4,150 US gallons) • Potable water: 946 litres (250 US gallons) • Fire-fighting foam: 1,000 litres (1,000 US gallons) • Water ballast: 23,391 litres (6,180 US gallons) The fireboat was designed and built to operate year-round in Lake Michigan, the Chicago River, and surrounding harbours, which includes up to 30 cm (1’) of first-year ice. The combination of a very shallow operating draft and an equally limiting air draft presented a significant design challenge, especially regarding

weight estimation: if too heavy the vessel would near the bottom of the shallow river; if too light it would run afoul of the numerous low height bridges that grace the Chicago River through downtown Chicago. As in the majority of fireboats, this vessel is set up as a “day-boat” with no crew living spaces however the vessel is set up to support the operating crew with well-equipped galley, mess and rest areas.

Other major features include a dedicated EMS treatment space with a direct entry from the main deck, adjacent to which is a decontamination shower. A further EMS space is located below decks. Aft on main deck there is a large equipment storage room which, amongst other items, houses 28 Eastern Aero Marine life rafts and 150 lifejackets for rescue purposes. Another storage space houses the SCUBA and SCBA gear.

Due to the constraints on the design, many of the storage spaces are served by roll-up doors on the sides of the deckhouse, providing large clear openings to each service or storage space.

The propulsion machinery consists of a pair of CAT C32 high-speed diesel engines, each rated 1,081 kW at 2,300 rpm.

These each drive a fixed pitch 1371 mm

More details, photos and deck plans on-line at www.bcshippingnews.com. diameter propeller through a ZF model W4610 reverse-reduction gearbox.

The fire-fighting capability is provided by two completely independent pump engines, CAT model C32 diesels, each rated 745 kW at 1,800 rpm and driving a FFS model SFP250 x 350 fire pump, rated 1,590 m³ (7,000 US gallons) per hour at 10 bar (150 psi). There are four monitors: • Centre Forward: 22,710 Lpm (6,000 gpm) • P&S Forward: 11,355 Lpm (3,000 gpm) • Aft: 11,355 Lpm (3,000 gpm) The aft monitor is atop a hydraulically elevating mast, provided by Hunger Hydraulics C.C. Ltd. In addition to the main monitors, there is an array of hose connections on each side and at the forward end of the boat.

Auxiliary power is provided by a pair of CAT model C4.4 diesel gen-sets, each rated 99 ekW. On trials, the new fireboat met all performance expectations, with the following results: • Bollard Pull, ahead: 30 tonnes • Free running speed, ahead: 13 knots

July/August, 2011 BC Shipping News 29

Photos credit: Council of Marine Carriers (Victor Ledesma).

TUG CONFERENCE SUMMARY

Captain Phillip Nelson, President, Council of Marine Carriers.

Gerard McDonald, Assistant Deputy Minister, Transport Canada, Safety and Security.

Brian Sims, Labour Relations Coordinator, Council of Marine Carriers.

Jonathon Seymour, Member, Transportation Safety Board of Canada.

Recap: Tugboat industry conference

• Harmonization of Canada / US regulatory systems through review with 30 BC Shipping News July/August, 2011

boundary around North America).

McDonald also described efforts to address public concern over tanker traffic on the West Coast and noted that consultation on a national risk assessment will take place during late 2011 with a report due in 2012.

the newly formed Regulatory Cooperation Council. Under this Council, the Marine Transportation Security Regulations and the US Code of Federal Regulations will be reviewed with a goal to reduce administrative costs — for example, the Council is currently reviewing an amended list of dangerous cargoes so that both Canadian and US lists are the same.

• Marine Safety Management Systems — as a major part of Transport Canada’s efforts to increase safety, a twoyear pilot project in collaboration with the Council of Marine Carriers has just been completed and, based on the success of the project, Transport Canada would like to see this become a mandatory requirement.

Consultations are expected to begin in the Spring of 2012.

• Pollution control — Transport Canada continues to work on the development of regulations for the Emission Control Area which come into effect in August, 2012 (limiting sulphur emissions within a 200 nautical mile

Photo credit: Council of Marine Carriers (Victor Ledesma).

C

onference Chair and Chair of the Council of Marine Carriers Leo Stradiotti welcomed attendees to the 19th BC Tugboat Industry Conference and provided an overview of sessions that would address the theme of The Next Generation. “Not just the next generation of tugs,” said Stradiotti, “but the next generation of technology and the next generation of the workforce.”

And true to Stradiotti’s word, conference speakers covered a full range of issues relevant to the future of the tug and tow industry in British Columbia — government regulations, technology, the BC economy and safety management systems were just some of the topics covered over two days in Whistler, British Columbia.

Keynote speaker, Gerard McDonald, Assistant Deputy Minister of Transport, Transport Canada, Safety & Security, described a number of initiatives within the realm of safety and security that were being addressed, including:

Rita Stansbury and Teresa Ledesma, Council of Marine Carriers.

TUG CONFERENCE SUMMARY During the question period, McDonald reported that, in response to concerns over lack of enforcement of regulations and inspections, his department has recognized the need for greater enforcement and, to address concerns, have planned a number of initiatives, including sending out a team to identify operators who are not in compliance with regulations.

Following the keynote speech and over the next day and a half, the agenda covered four sub-themes: 1) Tomorrow’s Technology; 2) Opportunities Ahead; 3) Regulating the Future; and 4) Our People — The Next Generation.

Legacy Award

L

eo Stradiotti had the honour of presenting Peter S. Hatfield with the Legacy Award. Peter, 75 years old, received the award in recognition of a long, successful and rewarding career spanning almost 50 years designing various vessel-types, including government ships, fishing vessels, passenger and special purpose vessels as well as arctic petroleum exploration vessels however it was his flexible and industry-friendly design of tugs and barges that brought him to the forefront of the tug industry. Throughout his career, Peter has either owned, partnered with or worked in senior positions for many reputable companies, including BMT Fleet Technology Ltd., Hatfield Division, Northstar Software Inc., Cove, Hatfield and Company Ltd. and Derek S. Cove Ltd. He once had a short term assignment with the Food and Agricultural Organization of the United Nations to design and assist with improved details of construction of fishing vessels in Thailand. Peter started his career with John Brandlmayr Ltd. and from there went to Sparkman and Stephens Inc. of New York.

Session One: Tomorrow’s Technology Bill Jahelka, Vancouver Island Manager, Western Canada Marine Response Corporation, described WCMRC’s involvement in the Gulf of Mexico oil spill last year. WCMRC sent 13 crew to various staging areas throughout the Gulf Coast to assist in a variety of tasks. Valuable lessons taken away included the importance of span control and the challenges of multi-agency coordination in areas such as limiting redundancies and increased communications. During the question period, the issue of responder immunity was discussed. Jahelka noted that WCMRC was contracted through the Marine Spill Response Corporation which provided protection however should the same situation occur in Canada, this issue would be more of a problem.

Marc McAllister, McAllister Marine, provided critical insight into the issues and challenges facing today’s tug industry...

Marc McAllister, McAllister Marine, provided critical insight into the issues and challenges facing today’s tug industry including union and workforce relations, an aging fleet of tugs under nine gross tonnes and government regulations.

BC Shipping News & Seaspan Raven Changing the Face of the BC Waterfront!

Photo credit: Council of Marine Carriers (Victor Ledesma).

Peter Hatfield and Leo and Judy Stradiotti during presentation of the Legacy Award during the Tugboat Industry Conference.

www.ral.ca

July/August, 2011 BC Shipping News 31

TUG CONFERENCE SUMMARY

Rick Jeffrey, Coast Forest Products Association.

McAllister recommended solutions such as calling on unions to develop new practices and procedures for new hires; a standard tug design that would help companies develop plans for new builds; and greater enforcement of existing environmental and safety regulations by Transport Canada, especially with tug owners who knowingly ignore the risks of non-compliance.

Bill Reid, EDOC Systems Group, gave a presentation on how technology and information were changing tug operations.

Unprecedented accessibility to data quickly is providing new ways to engage with fleets and, if used correctly, would realize reduced costs and greater efficiencies for tug operators.

Robert Allan, Robert Allan Ltd., updated attendees on significant improvements made over the past few years in escort tug systems. In describing the evolution of the escort tug design, Allen gave an overview of the evolution of design changes — from the 1990s in response to mandates following the Exxon Valdez incident, to the first true-purpose Foss designs to the new generation of Ajax tug. Allen described the current activities of the SAFETUG Project which he chairs.

The five-year, two-phase project is the first serious tug research initiative done in 30 years and will ultimately provide for a better understanding of hull design and recommendations for advanced hull forms to improve performance. Allen pointed to the RAStar Class tug as one of the most significant tug designs in decades, noting its increased maneuverability and comfort for crew.

Terry Bertram, BC Maritime Employers Association.

Session Two: Opportunities Ahead Fiona Anderson, Editor, Business Section of the Vancouver Sun, told attendees that annual expectations over the next two years, based on today’s market conditions, were to see growth in the GDP of just under 3%; an approximate in-

Kaity Arsoniadis-Stein, International Ship-owners Alliance of Canada; Donald Roussel, Transport Canada, Marine Safety; Vija Poruks, Canadian Coast Guard Pacific Region.

The record year for trade at Port Metro Vancouver in 2010 Photos credit: Council of Marine Carriers (Victor Ledesma).

will continue with both increased imports and exports

Casey Forrest of Pinton, Forrest & Madden, an executive search company.

32 BC Shipping News July/August, 2011

crease of 2% in employment; a 5% increase in retail sales; and a 10% increase in corporate profits. While US housing starts will remain unsteady, continued growth in Asia will allow for the growth in demand of forest products. Overall, commodities are expected to remain high like the Canadian dollar which will continue to remain at or above par to the US dollar.

The record year for trade at Port Metro Vancouver in 2010 will continue with both increased imports and exports (expected to achieve growth of 16% in 2011 and 11% in 2012).

Factors specific to British Columbia that could alter any of these predictions included the uncertainty of whether HST will remain and the upcoming provincial election.

TUG CONFERENCE SUMMARY The panel of Doreen Egger (Aon Reed Stenhouse Inc.), Dean Geros (Coast Underwriters Limited) and Shelley Chapelski (Bull, Houser & Tupper LLP) was joined by Peter Brown, president of Sea-Link Marine Services to act out scenarios which illustrated various legal liabilities and insurance coverage. The entertaining format, which put Brown into a number of situations that required legal and insurance reviews, gave the audience helpful tips on how to ensure they had adequate coverage and were not inadvertently contravening policy guidelines.

...if properly implemented, SMS was a powerful, modern concept with great potential to improve safety records.

Session Three: Regulating the Future Jonathan Seymour, member of the Transportation Safety Board of Canada, reviewed various challenges and benefits of safety management systems and ultimately noted that, if properly implemented, SMS was a powerful, modern concept with great potential to improve safety records. The challenges, said Seymour, stemmed from a significant time commitment as well as cost, especially to small operators.

Donald Roussel, Director General, Transport Canada, Marine Safety, provided a regulatory update and areas of focus for Marine Safety. Roussel confirmed Transport Canada’s com-

mitment to consistent and effective compliance and enforcement as well as education and awareness of safety management practices. A significant reduction in budget in the coming years is prompting a review of, among other things, the inspection regime in Canada. Roussel outlined some of the goals that Marine Safety has set out to accomplish, including completion of regulatory reform within the Canada Shipping Act 2001; adoption and harmonization of regulatory regimes for construction, inspection and verification of vessels; evaluation of the two-year pilot project for safety management systems as well as the vessel certification regulatory regime.

Session Four: Our People — The Next Generation Captain John Clarkson, Associate Dean, BCIT Marine Campus, showcased the training simulator upgrades recently launched at the Marine Campus. Captain Clarkson highlighted the benefits of simulator training including risk assessment, the ability to provide immediate and focussed feedback on training exercises and the assessment of competence in multiple situations.

Captain Ron Burchett, President, Burchett Marine Inc., related his insights into recruitment and retention of a new workforce. Challenges to training, which Burchett felt could be partially solved by the implementation of mentoring programs, to challenges in making the industry appealing for the

Left to right: Mark McAllister, Bill Jahelka, Phillip Nelson, Gerard McDonald and Leo Stradiotti.

younger generation were just two of the topics discussed. Burchett also touched on the challenges in training for new technologies and the level of formal training versus “on-the-job” training for young recruits.

Terry Bertram, Manager, Safety Systems, BC Marine Employers Association, provided an overview of programs offered by BCMEA including the COR Program (Certificate of Recognition) which aims to improve workplace safety and reduce injury rates. A key part of the COR program requires the development of a safety management system.

To encourage participation, incentives to save on WorkSafe BC premiums are available for employers who successfully complete an external audit review.

Casey Forrest, Partner, Pinton, Forrest & Madden, an executive search group, identified key issues related to the recruitment of younger demographic groups. Forrest profiled the “personalities” of Generations X and Y, highlighting the differences in attitudes to work and the attributes of a company that are more likely to attract young talent.

The conference ended with a presentation from Rick Jeffrey, President and CEO of Coast Forest Products Association who provided valuable insights into the current markets for logs and sawmill products. Of the three main markets (US, China and Japan), Jeffrey highlighted the continuing low housing starts in the US; the tendency to use concrete rather than wood in China; and the increased demand expected in Japan as they rebuild from the tsunami. Issues that were impacting on global supply and demand, some of which worked to BC’s benefit, included the increasing global call for protected areas as well as sustainable management practices (BC is well ahead in both of these areas).

Other issues that played a factor included global warming, political influences (e.g., regulatory costs) and technological developments. BCSN July/August, 2011 BC Shipping News 33

legal affairs

R. v. Atlantic Towing Ltd.

A prosecution for jeopardizing the safety of a vessel and persons

By David K. Jones

A Vancouver lawyer with Bernard & Partners

A

recent decision of the Provincial Court of Nova Scotia is of interest as the first prosecution of a relatively new provision of the Canada Shipping Act, 2001 in a case where a dredge being towed by a tug flipped in heavy weather and the three crew members on-board the dredge were rescued by helicopter.

The case is R. v. Atlantic Towing Ltd., 2011 NSPC 10. The provision of the Act under which the company was prosecuted is section 118, which provides that: No person shall take any action that might jeopardize the safety of a vessel or of persons onboard.

Facts The facts of the case are that on November 18, 2008 the tug Atlantic Larch towed the dredge Shovelmaster from Halifax to Saint John without incident.

Later that day, the tug with dredge in tow departed Saint John bound for Halifax. Gale warnings for areas off the south-western coast of Nova Scotia had been issued by Environment Canada in marine forecasts for November 18 and 19. In the early morning hours of November 19, the wind had reached its predicted level of 35 knots, which con34 BC Shipping News July/August, 2011

tinued throughout that day. Wave height forecasts had predicted seas from one to two metres on November 18 building to three to four metres by the afternoon of November 19. By the afternoon of November 19, when the tug and dredge were over 20 miles offshore, the wind and sea conditions experienced were worse than had been forecast.

Public welfare offences are sometimes described as not being “true crimes”, but as “regulatory” or “quasi-criminal” proceedings...

The superstructure of the dredge included a “garage door”, which had been reinforced with plywood before the voyage. Shortly after Noon on November 19, the garage door collapsed under the force of a wave. A pump failed and the dredge began to take on water. The three crew members on the dredge put on their survival suits. Approximately one hour later the tug requested assistance from the Coast Guard. The crew members could not be hoisted from the dredge because of the equipment on deck and the movement of the dredge.

The crew members were instructed to jump into the water and were successfully hoisted to safety. Shortly after, the dredge flipped.

The offence: jeopardizing the safety of a vessel or of persons on board The company was charged under s.

118. The maximum fine for such an offence is $1,000,000 or imprisonment up to 18 months.

Since there had been no previous prosecutions under the newly enacted s.

118, the Crown counsel submitted that the Court should look to precedents in occupational health and safety cases, since the specific prohibition in s. 118 is a public welfare offence similar to legislation in the context of worker safety.

Public welfare offences Since the company plead guilty to the offence, the Court’s decision focusses on sentencing principles and the facts of the case. For the purposes of this article, before sentencing is considered, it is useful to outline the legal principles relating to “public welfare offences”.

Public welfare offences are sometimes described as not being “true crimes”, but

legal affairs as “regulatory” or “quasi-criminal” proceedings, based on the public policy of the safe operation of modern society for public safety and health. The Supreme Court of Canada described the importance of regulatory offences in the 1991 leading case, R. v. Wholesale Travel Group Inc. Select passages of that judgment are as follows: It is through regulatory legislation that the community seeks to implement its larger objectives and to govern itself and the conduct of its members.

Regulation is absolutely essential for our protection and well-being as individuals, and for the effective functioning of society.

The more complex the activity, the greater the need for and the greater our reliance upon regulation and its enforcement. For example, most people would have no idea what regulations are required for air transport or how they should be enforced. Of necessity, society relies on government regulation for its safety.

Increasing regulation of society has resulted in the Courts applying a different standard to the enforcement of the regulations because the traditional criminal law standards were not seen as appropriate for regulatory offences.

In the 1978 leading case of R. v. Sault Ste Marie (City), the Supreme Court of Canada considered regulatory offences and the difficulty in using the criminal law to enforce regulatory obligations.

The Court distinguished between criminal, absolute liability and strict liability offences as follows: The distinction between the true criminal offence and the public welfare offence is one of prime importance. Where the offence is criminal, the Crown must establish a mental element, namely, that the accused who committed the prohibited act did so intentionally or recklessly, with knowledge of the facts constituting the offence, or with wilful blindness toward them.

In sharp contrast, “absolute liability” entails conviction on proof merely that the defendant committed the prohibited act constituting the actus reus of the offence. There is no relevant mental element. It is no defence that the accused was entirely without fault. He may be morally innocent in every sense yet be branded as a malefactor and punished as such.

The Court decided that regulatory offences fell in a third category between “true criminal offences” and “absolute liability offences”. The Court created a third category of “strict liability offences”. In these types of offences, if the Crown can prove the accused committed the actus reus of the offence, the accused will be found guilty, with the important exception that if the accused can prove due diligence, he will be found not guilty.

It is not up to the prosecution to prove negligence. Instead, it is open to the defendant to prove that all due care has been taken.

Strict liability offences and the defence of due diligence The purpose of the strict liability offence and the defence of due diligence in regulatory offences was described by the Court as follows: The correct approach, in my opinion, is to relieve the Crown of the burden of proving mens rea and to the virtual impossibility in most regulatory cases of proving wrongful intention. In a normal case, the accused alone will have knowledge of what he has done to avoid the breach and it is not improper to expect him to come forward with the evidence of due diligence.

It is not up to the prosecution to prove negligence. Instead, it is open to the defendant to prove that all due care has been taken. This burden falls upon the defendant as he is the only

one who will generally have the means of proof. This would not seem unfair as the alternative is absolute liability which denies an accused any defence whatsoever.

In the R. v. Atlantic Towing case, the tug owner pleaded guilty to the offence of jeopardizing the safety of a vessel or persons on board. Consequently, the due diligence defence was not considered by the Court. The issue to be decided by the Court was the appropriate penalty.

Sentencing principles in safety legislation In deciding what an appropriate sentence would be, the Court reviewed the sentencing principles relevant to offences involving safety legislation. The Court referred to the sentencing principles set out in sections 718 – 718.2 of the Criminal Code, and previous occupational health and safety cases decided

by Courts in which the emphasis in sentencing has been on denunciation of the conduct, and deterrence to others. The Court quoted a leading case in the Ontario Court of Appeal, R. v. Cotton Felts, for the considerations in deciding an appropriate fine for a safety violation by a corporation, as follows: The amount of the fine will be determined by a complex of considerations, including the size of the company involved, the scope of the economic activity in issue, the extent of the actual and potential harm to the public, and the maximum penalty prescribed by statute. Above all, the amount of the fine will be determined by the need to enforce regulatory standards by deterrence… Without being harsh, the fine must be substantial enough to warn others that the offence will not be tolerated. It must not appear to be a mere licence fee for illegal activity.

The Court also referred to an Alberta case, R. v. General Scrap Iron, in which that Court had determined that when sentencing corporations for regulatory July/August, 2011 BC Shipping News 35

legal affairs offences, the following factors should be considered: • the conduct, circumstances and consequences of the offence; • the terms and aims of the relevant legislation; • the participation, character and attitude of the corporate offender.

Finally, the Court stated that any aggravating and mitigating factors must be considered in sentencing of the corporate offender.

The fact that the owner knew that these restrictions had been imposed on the dredge...appear to have been important in the Court’s assessment...

Application of the sentencing principles to the facts Conduct, circumstances and consequences of the offence In considering the conduct, circumstances and consequences of the offence, the Court stated that this case was not about a wilful violation of safety requirements. It was a case where a safety hazard had been identified, but the risks were miscalculated. The weather and sea conditions were recognized as a danger, and plywood was nailed to the garage door, but decisions were made that compounded the risks, including the dredge was 20 miles offshore at the height of the gale, and it had three crew members onboard. The sea conditions were worse than the weather forecasts.

One significant fact in this case was that the dredge did not have a valid Ship Inspection Certificate. The last certificate had expired in 1996, and it included provisions that the dredge was limited to voyages within 15 miles of land, and the dredge be unmanned when under tow. The fact that the owner knew that these restrictions had been imposed on the dredge, and were not followed, appear to have been important in the 36 BC Shipping News July/August, 2011

Court’s assessment of the conduct, circumstances and consequences of the offence.

The penalizing of potentially harmful conduct is important, and the Court found that such conduct was present...

The terms and aims of the Canada Shipping Act The Court referred to the terms and aims of the Canada Shipping Act set out in section 6 of the Act, including: the protection of the health and well-being of individuals, the promotion of safety in marine transportation, and the protection of the marine environment. The Court also noted that section 118 of the Act is specifically focussed on “potential” hazards, prohibiting conduct that “might” jeopardize the safety of a vessel or persons on board. The penalizing of potentially harmful conduct is important, and the Court found that such conduct was present in this case.

The participation, character and attitude of the corporate offender The Court stated that the owner of the tug had no prior safety-related convictions and operated to a high standard for safety. The owner gave evidence that it was the first tugboat operator in North America to achieve dual certification to the ISM Code and ISO 9002 and other ISO standards. The owner also presented evidence of its pre-departure procedures, its cooperation with authorities investigating the incident, and the measures it had taken after the incident to ensure compliance with all applicable regulations and its own safety procedures.

Aggravating and mitigating factors The aggravating factors considered by the Court were the decision to undertake the voyage in the face of gale warnings, towing a dredge with crew onboard when it was supposed to be unmanned, and taking the dredge 20 miles offshore.

It was a mitigating factor that the company pleaded guilty, that the owner acted by taking steps to ensure it was operating a safe workplace, and its clean safety record.

The Penalty The Crown submitted that a fine in the $90,000 - $100,000 range was appropriate. The company’s counsel submitted that $15,000 - $25,000 was appropriate.

In assessing the level of fine, the Court returned to the principles set out above in the R. v. Cotton Felts case, including the size of the company, the scope of the economic activity, the extent of actual and potential harm to the public, and the maximum penalty set out in the legislation.

The Court found that the company was large, operating a multi-million dollar business. There was actual harm in this case in that three crew members lives were imperilled, and the dredge was lost. The maximum penalty under section 118 is $1,000,000. The Court stated that this level of maximum fine indicates that Parliament’s intention that low or nominal fines will not meet the goals of the legislation. The Court decided that the appropriate fine in this case was $75,000.

Conclusion The R. v. Atlantic Towing case is important because it is the first to consider section 118 of the Canada Shipping Act, a relatively new provision of the Act which establishes a general duty to avoid jeopardizing the safety of vessels and persons on board. The case also provides a view of the factors a Court will consider in deciding on an appropriate penalty when that duty is breached.

David K. Jones is a partner with Bernard & Partners. His practice includes maritime cases relating to the carriage of goods, marine insurance, collisions, salvage, ship source pollution, regulatory issues and commercial matters. David can be reached at jones@bernardpartners.com

MARI-TECH PART TWO

20/20 — Looking to the future

C

ontinuing with our coverage of the Mari-Tech 2011 conference that was held this past May, the following summaries highlight the trends within the shipping industry that will shape the next decade. The full agenda and PowerPoint presentations are available at: www.cimare.org/maritech. And watch for information about Mari-Tech 2012 — the committee is setting a date for Spring, 2012 and will announce the theme. An additional summary from the presentation by Converteam on the Inovelis Pump Jet Pod can be found in the Technology Section on page 52.

Operating within the environmental boundaries of 2020 and beyond.

Greg Peterson, BC Ferries, Director, Fleet Performance and Environment As Director of Fleet Performance and Environment, Greg Peterson is BC Ferries’ “over the horizon guy” looking at the business within the context of environmental change. Beyond the current agenda of the evolving maritime regulatory regime and direct stakeholder influence, Greg examines strategic implications of environment change through a high level analysis of measureable “environmental boundaries,” boundaries that represent change limits which should not be exceeded according to growing scientific opinion. To help understand the consequences that might arise from certain operational practices and whether a company strategy needs to be developed, Greg uses a model of nine environmental processes — or boundaries — that he notes should not be exceeded.

“As a business, we need to give attention to these boundaries for two reasons: 1) we don’t want to be seen as making things worse, i.e., being the cause; and 2) we don’t want to be disadvantaged or put at risk by the effects,” said Greg.

“We need to understand the issues and the potential consequences of environmental change and we need a meaningful, common language to translate between global environmental concerns and business actions. For example, the term Climate Change is used extensively but what does it actually mean?”

There are some obvious inconsistencies and contradictions in humankind’s approach to the environment. “We want environmental conditions to remain the same because we like what we have now,” said Greg. “But in reality, maintaining the status quo is contrary to nature. Constant change is fundamental to nature. While we’ve enjoyed these perfect and stable conditions for human life in the past 10,000 years, given the history of the earth’s climate cycles, we should be into another deep ice age within 100,000 years. If we can in fact control climate change — the amount of greenhouse gases in the atmosphere — we might prevent an ice age. This would be an enormous management endeavour — one that will produce wins and losses and unforeseeable consequences on a planetary scale.”

Greg was referring to irreducible uncertainties — whether our actions now will have a future, unexpected effect.

“For example, we ban ozone-depleting substances but the replacement products we use contribute to greenhouse gases. It’s unlikely that there can be a top down global master plan in the near future. Instead, expect the expansion of local initiatives,” said Greg. “It is through these local, stakeholder driven initiatives that a business should continually assess, engage and monitor the emergence of best practices.”

To determine company priorities for environmental management, it is useful to break down the big problem of global environmental change into distinct processes. Climate change is just one these processes. Although it is a huge concern

because the boundary of 350 ppm CO2 has already been exceeded, there are other changes going on that we need to give equal attention. The nine processes or boundaries that Greg uses have been identified by the science community as critical to planet health and are: • Ozone depletion • Aerosol loading • Climate change • Chemical dispersion • Biodiversity loss • Land / water use • Fresh water use • Nitrogen / phosphorus • Ocean acidification Human activity is causing change to each of these processes. By high level analysis, it is possible to assess whether company operational activities contribute significantly to the change.

Also, an analysis of the potential effects from each of these environmental changes will determine if there may be a significant impact on the business if boundaries are exceeded. For example, accidental releases of substances from BC Ferries refrigerating equipment can contribute to ozone depletion and a reduction or interruption in the availability of fresh water will have a direct impact on some ferry route operations.

Once the causes and effects are identified, a ranking is assigned to each boundary to establish priorities for business action plans. The ranking also takes into consideration existing regulatory regimes and actions that are already underway.

There are four questions to be considered when assigning company priorities: Is the threat easily understood? If so, regulatory actions will have strong public support and momentum.

Is there a public health risk? The possibility of increased health care costs will motivate political action.

July/August, 2011 BC Shipping News 37

MARI-TECH PART TWO Is there a likelihood of achieving solutions on a local scale?

Greg used the example of competing pressures on the use of land and marine habitats — while this is a global problem, the causes and effects exist in a local / regional context. As a result, local solutions can be implemented without having collective action on a global scale.

Is there a resilience solution that can be implemented now?

That is, can the company just adapt to the changing conditions, can we get by with less? Resilience solutions will pre-empt Sustainability solutions that often require information about a complex future condition that just cannot be reasonably predicted Greg also provided some insight into BC Ferries’ activities in stakeholder engagement, including the participation of the company’s Environment Manager in the Pacific North Coast Integrated Management Area consultation process. While stakeholder engagement can seem to consume a great deal of time with little return, it’s important to keep involved to ensure representation.

In summary, Greg noted that the Canadian Marine Industry has a significant role to play in the development of pragmatic solutions that will allow an operating company to align efficiently and effectively with best practices for a changing world. Significant challenges will come with the adaptation of new technology or new administrative requirements. It needs to be recognized that the fleet renewal cycle takes a long time and that iterative changes will result in greater variations in infrastructure. Ease of knowledge transfer, continual education and training will be necessary to continue to maintain and operate the fleet of the future. Finally, don’t make the professional seafarer’s job any more difficult — we must always maintain the focus on safe vessel operation.

Maritime situational awareness: international cooperation, trends and opportunities

Greg Peterson, BC Ferries, Director, Fleet Performance and Environment

Rick Marchand, Commander (Retired), President, RIMPAC Consultants Inc.

38 BC Shipping News July/August, 2011

Rick Marchand, Commander (Retired), President, RIMPAC Consultants Inc. Retired Commander Marchand’s presentation focussed on three main themes: the boom and bust cycle of the Canadian shipbuilding industry; the policies and government vision needed to support Canadian industry between major fleet renewals; and the international and collaborative procurements that can be used to fill the ebbs in national efforts. In his introductory remarks, Marchand noted that while the National Shipbuilding Procurement Strategy provided a positive thrust for Canadian shipyards, this needed to be coupled with something more lasting and indicated that there might be potential offshore opportunities that could provide additional business.

Canadian shipbuilding: boom and bust Marchand stated the current situation of the world shipbuilding demand and supply is one where world supply exceeds current world demand., “The real value-add for the Canadian industry is going to come from not just metal-cutting but more from technological innovation,” said Marchand.

“In essence, given the competitive nature of supply and demand, we have to move from an industrial resource base to a more knowledge-based economy.”

Government policy Marchand outlined the ideal Canadian first defence strategy — i.e., that of a modern, first-class military for the 21st century — as defined by four pillars: more personnel and

MARI-TECH PART TWO equipment, sustained readiness and more infrastructure based on modern technological capabilities. Based on this, principles that need to be tailored to this strategy include a comprehensive procurement plan that matches the national level of ambition; a rationalization of existing fleets; and the application of technology that embraces not just the exchange of data but takes a knowledge-based approach to understand the consequences of procurement and design decisions made.

“I believe government and industry can efficiently invest in and provide the capability that underpins this strategy,” said Marchand. One way to do this would be to develop the capability to bring together all of the different vessels and all of the departments that are contributing to the situational awareness picture — not just maritime but also air, land, space — into a system where knowledge is shared. The key to this would be to ensure it can be built on existing standalone legacy systems. “We need to share all air, maritime and land surveillance assets to the point where each can bring up the other’s information on each command and control centre, including intelligence, surveillance and reconnaissance.” As an example, Marchand related his experiences with the “Rainbow” exercise (now re-labelled “Magic”) in which 18 nations exchanged data to maintain the same situational awareness for a maritime and land environment. “They achieved this by developing and accepting open standards and interfaces.

Some have asked how we could do this with our restrictive budgets but I say it’s more expensive not to follow this path, given the consequences of not having good surveillance.”

When looking at Canada’s procurement strategy, Marchand felt that there would be challenges as the plan to build 15 ships to replace Canada’s destroyers and frigates would all

have a common hull design however the frigate and destroyer variants would be fitted with different weapons, communications, surveillance and other systems. “Why not apply a common standard across the entire Canadian maritime fleet?”

Marchand asked. “With the technology available, the move toward open standards is already happening and NATO is moving forward with network enabled “netcentric” architectural standards that support a knowledge-based approach to the application of technology. This applies not only to the military context but to industry as well in terms of fabrication and production, fleet movements and monitoring.”

Marchand provided insight into continued maritime trends, including the impact of continued pressure on budgets — hull life extension programs, machinery and electronic retrofits and updates which are moving more toward the integration of existing assets into common network enabled capability, and more automation to support reduced manning levels.

“In addition to the current credo of doing more with less, we need improved information management,” said Marchand.

“Knowledge-based management, which allows for quick decision-making, will be key to future success. It needs to be functionally based on leadership, business / management practices and our willingness to revisit these practices and allow technology to assist in further development. This applies as much to industry as it does to government — both need to share information together to be effective.”

Mark Collins presents Dan McGreer, STX Canada Inc. with a speaker’s gift.

Mark Collins presents Tony Vollmers, STX Canada Inc. with a speaker’s gift.

International and collaborative procurement opportunities Marchand indicated that there are many initiatives underway on an international level that would be of interest to conference attendees.

July/August, 2011 BC Shipping News 39

MARI-TECH PART TWO • In the US, the Navy’s five-year shipbuilding plan includes a total of 50 new battle force ships (an average of 10 per year). The Navy’s 30-year shipbuilding plan (from 2011 to 2040) includes 276 ships at a budget of $19 billion per year.

• European orders are down and fleet sizes are being reduced albeit there are some fleet life extension programs with sensor/weapon upgrades.

• Australia, Canada, the United States and the United Kingdom (AUSCANUKUS) have studies underway for task force data standards and procedures that may result in implementation and common procurements although this is still to be determined.

As part of the NATO alliance, Canada contributes tens of millions of dollars ...and has, so far, done a very poor job of obtaining contracts...

In addition — and likely the key takeaway point from Marchand’s presentation is the information provided about NATO. NATO procurement of C4ISR (command, control, communications, computers, intelligence, surveillance and reconnaissance) capabilities is done via the NATO Security Investment Program (NSIP). As part of the NATO alliance, Canada contributes tens of millions of dollars to the Military Budget of NATO and has, so far, done a very poor job of obtaining contracts stemming out of the NSIP. NC3A officials (NATO Consultation, Command and Control Agency) have announced that, during the next two years, a range of potential business opportunities of up to as much as EUR 930 million may be available.

This includes a continuing investment in countering improvised explosive devices; improving NATO’s cyber defence; improved information sharing between NATO forces; advanced satellite communications in support of 40 BC Shipping News July/August, 2011

Agfhanistan’s mission, maritime security information systems; logistics; and missile defence. Canada’s contribution to the costs of these programs is 2.5%, or approximately $75 million per year.

“Nowhere near that amount comes back to Canada in value of contracts,” said Marchand. “The main obstacle to obtaining this work is a simple lack of communications — there is no central web site or information source where the Canadian government can alert industry to potential opportunities.”

A potential solution would be to have PWGSC MERX site upgraded to include NATO opportunities as well.

Marchand summarized by noting that “Canadian technology and knowledge is second to none. We are recognized on an international scale for the Canadarm and if we can build that, we are capable of being able to automate ship handling and information systems. The challenge will be to continue to invest in knowledge management to provide for a competitive edge to shipbuilding and manufacturing competitiveness.”

Propulsion options — a comparative study.

Dan McGreer and Tony Vollmers, STX Canada Inc. STX Canada Marine representatives Dan McGreer and Tony Vollmers undertook to illustrate the differences in propulsion options from conventional to alternative green propulsion systems.

They did this by using the case study of an intermediate-size, double-ended ferry with the following parameters: 90 to 100 metres in length; 14 knots service speed; 100 automobiles; 400 passengers; and a short route distance of 1.5 to five kilometres.

In looking at powering, McGreer used two basic configurations to predict the power required for the case study ferry: four z-drives (two on each end or one z-drive at each end) or a controllablepitch propeller (CPP) at each end. The

four z-drive option would require the more power while two CP propellers would be the less — the main reason is that the additional drag of the thruster legs and lower efficiency of the propellers which are smaller and turn faster.

The power for a two z-drive configuration would fit somewhere in the middle of the two other options. Another thing to be kept in mind for double-ended ferries is that it is more efficient to propel the ferry from the stern than the bow.

While it depends on the hull form and a few other details but typically better efficiency is reached by having 70% of power at the stern.

Propulsion options considered included: • Conventional controllable-pitch propeller — double-ended with high or medium speed engine • Z-drives — two or four azimuth thrusters, double-ended, with geared high and medium speed engines • Voith Schneider propellers — Two VSP drives, double-ended, with geared high or medium speed propulsion engines with a hydraulic slip coupling for normal operation • Conventional FP screw — doubleended, with direct coupled variable speed AC electric propulsion motors and an integrated high or medium speed electric plant • Z-drive (four or two) — Double-ended, with direct coupled variable speed AC electric propulsion motors and an integrated high or medium speed electric plant — an additional consideration for diesel electric engines is the ability for dual fuel use with LNG as an alternative fuel.

In their analysis, McGreer and Vollmers noted a number of variables that factor into the study that essentially broke down into quantitative and qualitative results. The quantitative factors included 25-year fuel and lubrication oil consumption, maintenance costs, capital costs whereas the qualitative aspects are based on weighting

MARI-TECH PART TWO provided by clients such as reliability, maintainability and manoeuvrability.

For the capital costs, the analysis showed fairly similar costs with the simpler systems — the direct driven twin screw with CP and the direct driven twin z-drive; these options were the lowest costs. The high speed engines were a bit lower cost than medium speed engines.

Noting the benefits of natural gas over diesel, Vollmers highlighted factors such as reduced emissions and Tier III compliancy without engine after treatments...

Diesel electric initial capital costs will typically increase the cost of the propulsion plan significantly — roughly 1.5 to two times with the cost of the mechanical system and there’s added complexity with which to contend. However, the integrated diesel electric power plant allow the flexibility of tailoring the number of generators operating to the electrical load of the vessel — saving fuel and reducing maintenance. The interesting comparison came when looking at the life cycle costs and the significant cost of fuel over 25 years. McGreer felt that total fuel efficiency is what should be considered when looking at overall costs. Diesel electric costs showed quite a lot lower compared to direct driven, even more so when LNG as an alternative fuel was taken into consideration.

“Another factor to consider as well when looking at the lower LNG costs is that LNG provides for a Tier III compliant system so you would really have to consider additional refit costs for future emission compliance over and above the costs you see here,” noted Tony Vollmers who, at this point in the presentation provided a comparison between natural gas and diesel.

Noting the benefits of natural gas over diesel, Vollmers highlighted factors

such as reduced emissions and Tier III compliancy without engine after treatments as well as higher efficiencies and lower maintenance as natural gas burns cleaner due to the low sulphur content.

In comparing gas fuel engines to dual fuel engines, Vollmers’ study used Wartsila 20 Series dual fuel engines to the Bergen gas engines spark ignited leanburn gas for comparison purposes. Both meet IMO Tier III emission standards however the spark ignition gas emissions were slightly lower with a 92% reduction in NOx compared to an 80% reduction by the dual fuel mode. Both have almost zero particulates and CO2 emissions are cut by approximately 20%.

Vollmers provided a detailed review of both the Wartsila dual fuel engine and the Bergen gas engine, and described the attributes of an LNG tank and cold box. “An important feature in the tank is the double skinned wall with stainless steel to accommodate the -160 degree temperature of LNG,” noted Vollmers.

“If the inner cylinder is ever cracked, which is highly unlikely, then the gas

In reviewing alternatives to LNG, Vollmers described Dense Phase Gas which...allows for reduced capital and operating costs... just drains into the outer cylinder which is completely enclosed.” The double-wall pipe from the cold box to the engine is ventilated and contains gas sensors which provide for detection and shut down in case of leakage. “Everything is contained behind a double-wall system which is an important consideration for the classification societies and owners when evaluating risks.”

In reviewing alternatives to LNG, Vollmers described Dense Phase Gas which is essentially compressed natural gas but allows for reduced capital and operating costs compared to LNG liquefaction due to a simpler compression

process. The biggest advantage is that you don’t need the liquefaction facilities which add greatly to capital cost. Compressed natural gas can be pulled from the pipeline, compressed and loaded into the ship. “CNG is a much simpler system than liquefaction and potentially much more cost effective.”

Moving onto an electrical-assist technology, Vollmers described the operating profile of a typical ferry and the requirements for power at each step — acceleration, cruising and deceleration as the vessel goes back and forth to the docks. Electrical –assist would be advantageous during acceleration and deceleration by providing a power boost allowing the propulsion plant to be sized smaller than the total power requirements. The big advantage to this system is the potentially cheap source of supply from shore power system. The two technologies that are available for this kind of power assist are chemical batteries (Li-Ion and lead acid) and the super-capacitor technology. Of the two chemical battery options, the Li-Ion has a higher energy density and good life cycle compared to the lead-acid option which is old proven technology at low cost but is heavy and has low energy density. The super-capacitor (in this case, an Electric Double Layer Capacitor) has high energy density, long life cycles, high power output which is good for acceleration / deceleration and is comparable in weight, costs, and longevity to the Li-Ion cells.

Vollmers ended his summary of propulsion options by looking at the first zero emission electric ferry due for delivery in 2012. The world’s first supercapacitor ferry was developed by STX France, the R&D program ECORIZON with Stirling Design International. At just over 22 metres in length, a width of just over seven metres and a maximum speed of 10 knots, the ferry is designed to carry 113 passengers on a short route.

The two electric Azi thrusters and the electrical propulsion plant can be rapidly recharged during the docking cycle.

July/August, 2011 BC Shipping News 41

GREEN MARINE

Green Marine hits the West Coast Environmental program anchors itself to local representation and strengths

By David Bolduc Executive Director, Green Marine

T

he Green Marine Management Corporation is excited about expanding its environmental program to the West Coast. Having this region’s maritime industry participate in the program is the next logical step to broadening Green Marine’s positive impact across Canada and in the United States.

Establishing a robust West Coast chapter will strengthen Green Marine as a whole. It builds upon our industry’s new reputation as results-oriented leaders in sustainability by demonstrating a broadened commitment to continual, measurable improvement when it comes to environmental performance.

A vibrant West Coast chapter also enhances Green Marine’s already formidable network of industry experts to draw upon for environmental solutions.

A generous spirit of sharing knowledge and experience regarding environmental matters has become one of Green Marine’s most valued aspects.

Everyone is still as competitive as ever, but realizes the time, money and frustration saved by collaborating on environmental issues. The outcome of our joint efforts also has a greater pub42 BC Shipping News July/August, 2011

lic impact, as evidenced by Green Marine’s broad recognition.

Green Marine was launched by the maritime industry in the St. Lawrence and Great Lakes four years ago to voluntarily respond to environmental concerns within those waters. Within a year, nearly half of the enterprises from the region were on board. Since then the majority of those companies have demonstrated year-over-year improvement in their environmental performance.

How it works Our program works by each participating company completing a comprehensive self-evaluation. Green Marine has devised, and regularly updates a guide for this purpose. The guide addresses how each company is dealing with the environmental priorities identified by Green Marine’s working groups. The current priorities are: • aquatic invasive species • air emissions • greenhouse gases • cargo residues • oily water • conflicts of use by ports and terminals regarding, for example, noise, dust, odours and light pollution

• environmental leadership for port authorities • water and land pollution prevention (2011) • waste management (2012) Every participating company ranks its annual performance regarding each priority on a scale of one to five, with Level One indicating regulatory compliance and Level Five representing demonstrable leadership. Each participant also puts together all of the necessary documentation to support each rating.

Green Marine has quickly gained national and international praise for its credibility because all participants agree from the outset to have their self-evaluation verified by an independent auditor. They also consent to publishing their performance results.

The program’s clear structure and transparency have resulted in it being nominated for the second consecutive year as a finalist at the Sustainable Shipping Awards in London, U.K.

Significant input Extensive consultation has been the key to Green Marine’s success. From the very beginning, company representatives were invited to discuss at length

GREEN MARINE how the organization should be set up, and a CEO advisory board established top-management support.

The result is a solidly devised program that was immediately adaptable by the Prince Rupert Port Authority when it joined Green Marine last fall.

Realizing the importance of local input, Green Marine has separate working committees for the Great Lakes and the St. Lawrence. Each committee has also invited members of the community, government, environmental groups and other valued stakeholders to take part in discussions.

West Coast representation Green Marine is taking the same approach on the West Coast. One of our first priorities is to establish a West Coast environmental committee with willing participants, partners and supporters.

We’ve ensured local representation from the start by inviting two important associations to join Green Marine’s national board of directors. We’re delighted Captain Stephen Brown, president of the Chamber of Shipping of British Columbia, and Captain Phillip Nelson, president of the Council of Marine Carriers, have agreed to represent their respective associations.

We’re off to a good start with the Prince Rupert Port Authority becom-

Victoria Shipyards ing the first participant from the West Coast shortly after we began our recruitment campaign last fall.

Green Marine was equally pleased to welcome Seaspan Marine Corporation in March. I’m delighted that Seaspan has included its shipyard operations and has offered to help develop environmental criteria for shipyards within the Green Marine program.

Specific requirements for shipyards have become a priority with Vancouver Shipyards Company Inc., and Victoria Shipyards Co. Ltd. also becoming new West Coast participants. We’re hoping to involve shipyard operators from across the country and the US in establishing the new benchmarks.

I am looking forward to working with our other new West Coast participants: Island Tug & Barge, SMIT Canada, and the Greater Victoria Harbour Authority.

Ogden Point, Greater Victoria Harbour Authority

I’ve already had the pleasure of meeting some of their representatives on the West Coast or at Green Marine’s annual Green Tech conference and welcome their enthusiasm.

Green Marine also has a partner category of membership for companies that supply products and services to help the marine industry reduce its environmental footprint. We’re very pleased that Quickload CEF has become the first partner of Green Marine`s West Coast chapter.

We’re also happy to have WWF-Canada as one of Green Marine’s official supporters for over a year now, and I’ve really enjoyed meeting with the people in the WWF-Canada offices in Prince Rupert and Vancouver.

Having these key players in place and rolling out a big welcome mat to others gives me great hope for establishing a powerhouse West Coast chapter within a short time.

I genuinely believe every maritime enterprise — large or small, long-established or starting out — can benefit from the template we’ve devised to accurately benchmark environmental performance, reliably measure progress, and credibly present the results to the public as part of a commitment to continual improvement. The rewards are greater cost-saving efficiencies, sustainability, trustworthiness and a better future.

For more information about Green Marine, visit www. green-marine.org or e-mail info@green-marine.org.

July/August, 2011 BC Shipping News 43

NAUTICAL INSTITUTE

Nautical Institute Command Seminar: Vessel Management Onboard and Ashore: Today and Tomorrow

I

n his opening address, Captain James Robinson, President of the Nautical Institute (NI), welcomed attendees and reminded them of the two most pressing issues that affected everyone in the room: piracy and criminalization of seafarers. “The Nautical Institute is committed to addressing these issues through all avenues available,” said Captain Robinson. He also

noted the benefits of membership, including professional development and adding strength to the voice of the NI. In an engaging and creative panel format, the next two days provided attendees insight into milestones in a professional mariner’s career. Starting with young officers, followed by officers at the command level, then those at the executive level and ending with

two senior and seasoned mariners, the perspectives of each gave delegates the opportunity not only to relate to each generation’s hopes, fears and expectations for the future but to identify areas that required attention. Discussion focussed on ways the industry could address challenges.

The first panel, moderated by Captain Mike Barritt, Vice President of the

Excerpts from the report from the President …On behalf of the Institute, I thank and congratulate the officers of the British Columbia branch for their skilful planning of the AGM and associated activities. My thanks also to the many sponsors of the Command Seminar without whose support we would not have been able to attract the participation of so many practicing maritime professionals. …Taken as a whole, the last year was a good one for the Nautical Institute…Our previous strategic plan ended in 2010.

The final year saw further strides in achieving its aims and objectives. Key amongst them was addressing the structure of and criteria for membership. However not all the objectives were met and we continue to work on recruitment. …We have completed our first year as an NGO at the IMO. As we intended when we made our application we hit the ground running…We are closely involved in the GMDSS review, lifeboat safety, enclosed spaces and port reception facilities. Central to the work of our delegates at the IMO is the network of subject matter experts and the seagoing correspondence group. Our ability to consult, in real time, this pool of expertise gives much credibility to the input of the Institute. It also crucially gives an input into the decision making process of the IMO to any of our members who wish to be involved. …It has been another excellent year in publishing with new editions and new titles being produced and new books in preparation. I am glad to say that publishing is generating revenue while continuing to support the aims and objectives of the institute. At the same time it provides a valuable service to the industry and the profession…While on the subject of publishing I must mention the retirement of the editor of Seaways, Claire 44 BC Shipping News July/August, 2011

Walsh, who has given such sterling service to us all. We wish her well in her retirement. …Institute projects continue to thrive. They balance the needs of the present — safety; professional competence and development; promoting the industry to enhance the status of the professional — with looking ahead — implementation of ECDIS; E-navigation; envisaging the needs of the seafarer as technology and regulations evolve; role of simulation in training and assessment. …This year sees the launch of our new strategic plan. I must stress the importance of the input of the membership to developing the plan. Quite properly for an institute such as ours, the members’ input to the most recent questionnaire reflected concerns of a professional nature. In addition, a consistent theme was concern about the damage being done to the professional reputation of mariners through criminalization as well as the damage being done to the industry and recruitment into the profession by the scourge of piracy. The institute will continue to work with like minded organizations to bring about an end to both. …There is an old Irish proverb which I have adopted as the motto of my presidency. It says “ní neart go chur le chéile”.

Directly translated it means there is no strength without unity.

However the Irish language has an infinite capacity for subtlety.

What it really says to us is that until we unite and work together we do not know just how much we can achieve. The British Columbia branch has demonstrated the veracity of this proverb.

Let us now endeavour to make it work on an international basis and double our membership.

NAUTICAL INSTITUTE Nautical Institute, consisted of Lt(N) Jason Beaton-Bowles, Canadian Navy; Second Officer Dmitry Brezhnev, BC Ferries; Second Officer Elron Lilgert, Canadian Coast Guard; and Jeffrey Pelton, Port Metro Vancouver (Deepsea).

Lieutenant Beaton-Bowles listed four main roles within the Navy that, if mastered, would allow him to achieve his goal of command: 1) manager — not just the manager of a ship, but also of the crew; 2) warrior — noting that the Navy’s business is the safety and security of the sea; 3) mariner — to ensure basic bridge and mariner skills are maintained; and 4) leader — to motivate crew and lead by example.

Jeffrey Pelton provided a perspective of one who chose a career as a deepsea mariner. Pelton noted that the challenges of a deepsea mariner — from long stretches of time away to difficulties in making the transition from junior to senior officer within the same company — were balanced with opportunities of diversity, skills development, especially in technology, and team-building. Pelton suggested that better apprenticeship and mentoring would help young officers develop their skills more quickly as well as assist in the transition between at-sea and on-shore postions.

Second Officer Elron Lilgert highlighted the attitude of a younger generation that held very different values than those of its predecessors. Lilgert felt that those just starting out on a career path sought greater satisfaction from life overall and the goals were not just for a career but for a balance between work and personal life. Challenges in achieving this balance came from finding good opportunities ashore which would lead to senior management levels without a lot of sea-going experience.

Second Officer Dmitry Brezhnev echoed sentiments of the challenges of striking that balance between seagoing and shore opportunities. Brezhnev felt that BC Ferries provided advantages that addressed this need. In describing his training experiences — first in Russia under military-style cadet training, followed by university and then work on a variety of deepsea ships, including tankers — Brehznev believed that the new generation of vessel management has to be highly educated, business organized, technically oriented, openminded and never afraid to implement change for the better. Successful career development has to be challenging, motivational and rewarding.

Following the presentations, delegates discussed how the industry could facilitate the aspirations of young officers who want to command while taking into consideration the need for work / life balance. It was widely recognized and acknowledged that labour shortages were looming and it was up to the industry, as employers, to provide the satisfaction variables that were so prevalent in today’s generation. As an industry, it was agreed that more needs to be done by companies to identify and nurture the careers of those with potential leadership skills who are just entering the field.

The afternoon panel consisted of officers who had attained a level of command but were only mid-way through their careers. Assistant Commissioner of the Canadian Coast Guard Pacific Region Vija Poruks facilitated the session and asked the audience to keep in mind key issues, including what the Nautical Institute could be doing to keep these officers motivated and enthusiastic about their career choices.

Panel members were: Captain Joanne McNish, Commanding Officer, Canadian Coast Guard; Commander Bradley Peats, Canadian Navy; and Captain Fred Denning, President, BC Coast Pilots.

Second Officer Elron Lilgert.

Lt(N) Jason Beaton-Bowles.

Jeffrey Pelton.

July/August, 2011 BC Shipping News 45

NAUTICAL INSTITUTE Captain McNish outlined the steps she had taken to attain her current position within the Canadian Coast Guard, highlighting experiences that laid the foundation for her career. She advised the previous panel to sieze opportunities for advancement even if they were unsure it was the right fit for their own aspirations. “You have already laid a foundation,” said Captain McNish, “and you must engage with the company to demonstrate positive attributes such as hard work, resiliency and flexibility.”

Captain McNish outlined cornerstone values such as a ‘shared path’, that is, both employee and employer are en-

gaged in wanting the same things; diversity; reward and recognition, noting that today’s younger generation sought positive re-inforcement of their skills and that a company that was able to provide this, as well as new challenges and learning opportunities would be in a better position to retain young officers.

Commander Peats related his experiences within the Navy and the steps taken to achieve a command position.

He indicated that it was at the junior level and in the early days of his career that he developed command qualifications and that it was the diversity of

tasks assigned to him that provided not only the opportunity for him to choose his career path but an opportunity for his commanding officers to recognize his leadership skills.

Captain Denning stressed the importance of sharing expertise and knowledge. He described the relationship between coastal pilots and bridge teams as well as trends in training and education, including the increasing use of simulators and the benefits as well as the challenges this posed, such as obtaining enough sea time.

Ms Poruks summarized her observations of the panel presentations and recognized that there were similarities in both the challenges and opportunities of each career path. Issues like diversity of skills, advancement in management and leadership and the need for energy, enthusiasm and drive as well as the ability to adapt easily to situations and manage stress. It was agreed that mentoring programs would be a great benefit to younger officers and this was something the Nautical Institute could facilitate.

Sessions on the second day of the Command Seminar provided the perspectives of senior officers who were able to relate to the challenges facing young officers and place into context of next steps required to achieve growth.

Moderated by David Hahn, President

Captain Joanne McNish

Commander Bradley Peats

Captains John Clarkson and Stephen Brown.

Captain Fred Denning 46 BC Shipping News July/August, 2011

NAUTICAL INSTITUTE and CEO of BC Ferries, the session began with presentations from Peter Hinchliffe OBE, Secretary-General of the International Chamber of Shipping and the International Shipping Federation and Vice President of the Nautical Institute; Captain Jamie Marshall, Vice President Fleet Operations and Training for BC Ferries; and Bud Streeter, Vice President and Marine Manager North America of Lloyd’s Register.

Peter Hinchliffe first gave an overview of international situations and issues that impacted on global shipping. With issues such as piracy, criminalization of seafarers and increasing regulations addressing climate change, Hinchliffe noted that the industry requires greater coordination, better information flows and better transparency in its initiatives. Focussing on his own career path, Hinchliffe related his experience of moving from seagoing command to on-shore, considering the move to be a second career.

Jamie Marshall highlighted the change within BC Ferries that provided for a much more safety-conscious culture. In partnering with the union, staff and management have created a more open and transparent process that encourages greater engagement and ownership of responsibilities. Captain Marshall also described new training methods that allowed for greater mentoring opportunities and a more thorough education in all aspects of ship operations, including safety management.

In a very entertaining presentation, Bud Streeter described his career path from the Canadian Coast Guard to Transport Canada to Lloyd’s Register.

He felt the two key assets that helped

Rear Admiral Nigel Greenwood.

David Hahn and Captain Jamie Marshall.

Vija Poruks and Captain Zak Farid. him most in his career were adaptibility and teamwork. In looking at his decision to move from a sea-going career to a shore position, Streeter attributed that to his desire to spend more time with his family. In addition to a bit of luck, Streeter credited his willingness to take on risk as well that led to his current senior management position. In sug-

gesting ways to attract a younger generation to the marine industry, Streeter highlighted the need to interconnect with new recruits and provide outlets for creativity and challenges that would stimulate them.

In summarizing the morning session, Hahn pointed to consistent themes such as adaptability and change and the abil-

July/August, 2011 BC Shipping News 47

NAUTICAL INSTITUTE ity to be adept in a diversity of skills. He also touched on the need for succession planning as the key to giving the younger generation the determination to strive for more responsibilities.

In the afternoon, Rear Admiral Nigel Greenwood provided introductory remarks before introducing panel members Captain John Clarkson, Associate Dean, BCIT Marine Campus, and Captain Stephen Brown, President of the Chamber of Shipping of British Columbia. His key message was one of unity — not just from a maritime perspective but to encompass a joint approach to security that included naval, ground and air forces.

As Rear Admiral Greenwood introduced Captains Brown and Clarkson, he noted that it was their job to bring all of the discussion together by looking at the culmination of their careers and lessons learned that can be passed on to younger generations.

Captain Clarkson raised concerns over the aging workforce and the perception of many youths that the marine industry is considered a trade more than it is a profession. By understanding the training needs of today’s youth, Clarkson noted the benefits of specialized training for companies, such as BC Ferries or Seaspan. Building industry-specific curriculums was one way to encourage recruitment. One challenge that Captain Clarkson noted was the ability to attract and keep skilled instructors. He felt that solutions to recruitment lay in areas such as an industry / labour interface, public awareness, enhanced career prospects and collaboration with governments to develop support for educational initiatives.

Captain Brown’s presentation focussed on addressing questions such as why young people go to sea in the first place — what attracts them to the industry and what elements detract others from choosing a career at sea? While there are many

alternative career paths for today’s youth, the industry must be more effective in defining the types of careers available.

He noted that required key traits of recruits should include learned discipline, tolerance, patience and compromise.

Captain Brown touched on the issue of transition from ship to shore and encouraged the industry to better communicate the various opportunities that existed in both areas. He used the example of the Chamber’s Business of Shipping course which strived to give a better understanding of shipping to those deciding on a career path. Captain Brown ended with providing advice to the younger members of the audience: identify a trusted mentor; accept advice but also ask questions; network; don’t complain; continue to seek that elusive life / work balance; and be committed and ambitious.

Discussion following the last panel session captured many of the themes already raised and there was agreement that the Nautical Institute could assist in recruitment by providing greater awareness of the opportunities of a marine career, providing mentors at all levels, and advocating on behalf of seafarers at international forums to address issues facing the industry. BCSN

Presentation of Fellowship award from Captain James Robinson to Captain Shridhar Nivas.

Presentation of Fellowship award from Captain James Robinson to Captain Bob Kitching.

48 BC Shipping News July/August, 2011

About the Nautical Institute The Nautical Institute is an international professional body for maritime professionals with over 40 branches worldwide and more than 7,000 members in over 110 countries.

The NI provides a wide range of services to enhance the professional standing and knowledge of members and to help the industry as a whole to improve the safety and efficiency of shipping.

To learn more, please visit: www.nautinst.org.

PROCUREMENT STRATEGY

The NSPS and the West Coast’s Maritime Future:

It truly is a pebble in a deep pond

By K.Joseph Spears

T

he announcement by the Government of Canada of the National Shipbuilding Procurement Strategy (NSPS) has generated a great deal of political and media interest in British Columbia this past month with a looming date for shipyards to get their proposals into the federal government

by July 7, 2011. While the attention has focussed on competition between coasts and which shipyard will obtain the contracts to build military and non-military vessels into the future, the issue raises an important point — what is Canada’s long range plan in a changing world for governance of its ocean sector? It is important to remember that vessels themselves and their operation form part of Canada’s sovereignty infrastructure.

This article will explore the opportunity that the NSPS presents to develop an overall Canadian approach and how the West Coast can build on its existing strengths and long successful history to develop a long-term, broad-based marine industry which includes research and development into solutions for a warming planet. This is an opportunity to bring together the public and private

sector with important input from the academic community to build on ocean products which have both domestic and international demand. As Winston Churchill said — “this is the end of the beginning — not the beginning of the end”.

The NSPS is good news from the Government of Canada which will provide some long needed stability in the shipbuilding sector...

The NSPS is good news from the Government of Canada which will provide some long needed stability in the shipbuilding sector and allow new ship building programs for the Canadian Navy and Canadian Coast Guard to get underway. In the past, each project was done on a case by case basis, leading to lengthy delays of procurement and the cycle of design and construction, adding to the costs of shipbuilding programs.

Most importantly, it provides some stability to this industry sector. However we need to look at a number of select

ocean issues to see the magnitude of the problem and the requirements in an international context. The ocean sector provides enormous opportunities for Canada to build economic and strategic relationships at the international level as part of its foreign policy.

Canada is the second largest coastal nation in the world and has a coastline of 244,000 km and 9.1 square kilometres of ocean space under its jurisdiction. It is a massive area and in many parts of the country access by sea is the only way to re-supply remote communities. Most Canadians don’t realize that all but two Canadian provinces are on tidal waters (Saskatchewan and Alberta). All of this ocean space requires governance to ensure Canada’s safety and security. The ships themselves, as noted above, do not operate in isolation but are part of larger government programs to ensure Canadian laws and regulations are observed by domestic and foreign vessels within our waters.

As was explored in the May issue of BC Shipping News, the warming in the Arctic has created a great opportunity for the Government of Canada who reJuly/August, 2011 BC Shipping News 49

PROCUREMENT STRATEGY cently announced the building of the Polar Class Icebreaker program. With the first polar class icebreaker being the John Diefenbaker, Canada’s capability and capacity in the Arctic will be extended. This will be a major vessel and approximately $800 million has been set aside for the vessel’s design and construction which will become operational in 2017. Increasingly, the Arctic — with sea ice receding at an alarming rate — holds up to 25% of the world’s undiscovered hydrocarbon resources.

In addition, there are many mineral deposits that will be developed, for example, one that is currently before the Nunavut Environmental Impact Review Board is the Mary’s River Iron Ore project which will see a series of large icestrengthened bulk carriers moving iron ore from the West Coast of Baffin Island to Northern Europe on a weekly, yearround basis.

All of this requires Canada to have a robust maritime capability which requires state-of-the-art, environmentally efficient vessels...

In addition, as was explored in the last article relating to the Indo-Pacific Ocean Basin, as we see the rise of China in the Indo-Pacific and more disputes being raised, there will be a requirement for more naval vessels to operate in the area especially given that 60% of the world’s submarines are found in this ocean. Canada will have to develop and build on its various multilateral arrangements with other coastal nations. Given that Canada’s trade is going to increase with countries around the Indo-Pacific Basin, it makes good economic sense to work in conjunction with the Asia-Pacific Gateway Initiative to ensure Canada’s trade is developed and sustained. We need boots on the ground — or vessels in the waters. In other words, Canada needs a naval presence in this region.

50 BC Shipping News July/August, 2011

This requirement for warships is not going away.

As this article went to press today, a recent study indicated that the world’s oceans are changing and this will have a large impact on marine ecosystems.

This again requires Canada to have an ocean science presence. While one can make use of various remote sensing technologies, most oceanographic research is conducted from vessels.

Canada has a long history of operating research vessels as a way to learn more

One of the elements of the NSPS is the ability to...develop the necessary capacity to become more efficient in building ships for the commercial sector. about our oceans and the dynamics of complex systems which impact the world’s climate and future well-being.

All of this requires Canada to have a robust maritime capability which requires state-of-the-art, environmentally efficient vessels for government service.

In a recent speech, the Honourable Rona Ambrose, the minister responsible for the NSPS made it clear that that no lobbyists are able to participate in the process of awarding the actual shipbuilding contracts which was going to be solely based on merit evaluations by government officials. However that does not preclude our provincial politicians from working with their federal counterparts to develop a robust research and technological base approach to ocean sector management in Canada.

The NSPS can be the necessary cornerstone of a re-invigorated maritime sector that embraces all aspects of ocean technology, ships being just one part of the full strategy. The long-term sustainable funding model is not unlike what was done in the United States during the Apollo space program administered

by NASA. The Apollo program allowed private sector companies to build space technology through stable research and development. We still see the benefits

The NSPS can be the catalyst for action. But it will take a champion and it needs a home. That home should be British Columbia. of this today in a variety of technologies that were developed. Former Premier Danny Williams of Newfoundland has worked to make St. John’s a centre of ocean expertise and has referred to St. John’s as the “NASA of the North”. The NSPS can be the catalyst for action. But it will take a champion and it needs a home. That home should be British Columbia.

This is an opportunity for British Columbia to bring together in a cluster all of the various components within the marine industry. Modern government vessels, whether they are Coast Guard vessels or warships, involve a large amount of technology and data processing fusion. Normally, the weapons and computers make up over half the value of the vessel. This information comes from a multitude of data sources including the space sector assets, aircraft and UAVs, high-frequency radar, and underwater sensors to name just a few. The development of this technology has a worldwide application and is of interest to our NORAD in NATO partners.

One of the elements of the NSPS is the ability to allow shipyards to develop the necessary capacity to become more efficient in building ships for the commercial sector. This program focusses on larger vessels but there are over 1,000 smaller vessels required in the coming years as the Canadian government fleet ages. There is an excellent opportunity to develop thinking around how to achieve the best possible results to build the most state-of-the-art ocean

PROCUREMENT STRATEGY infrastructure There is a ready market in 147 coastal nations in the world for these goods and services for sovereignty infrastructure. Historically, Canada has played a key role in negotiations with these nations that has led to the United Nations Law of the Sea Convention.

Canada can re-visit these relationships.

The potential is immense.

Many countries have focussed on creating research clusters and the ocean area is no different.

Many countries have focussed on creating research clusters and the ocean area is no different. One such area is San Diego where there is a concentration of Naval research and technology, allowing for spin offs to law enforcement, security and oceanographic applications. We don’t have to look far here in BC — for example, Richmond-based MDA has developed synthetic aperture radar satellites — the Radarsat and Radarsat Two

satellites — that are state-of-the-art and have a huge maritime and ocean sensing component . This already exists and can be merged into other new technologies to fuse all of this research and development together. The key is to bring various groups together so that ideas flourish and the government can develop these for export to other countries and private applications. We have many examples of this — COMDEV, OSI and Viking Air to name a few — where Canadian ocean technology is sold worldwide.

Given that the National Centre for the Arctic and the Pacific was cancelled in North Vancouver, a new facility bringing together a think tank to look at these issues in research and development needs to be part of the next step in the NSPS process.It can be both a physical and virtual venue. Our provincial government can champion this concept. The Province of British Columbia’s support was clearly shown in the unanimous approval of a private member’s

motion by Mr. Ralph Sultan to support the Seaspan bid in May. The natural cluster for this research and development of shipbuilding and ocean technology could be the Port of Vancouver, poised on the edge of the Pacific and a jumping off point for the Arctic Ocean Basin.

One can say that the NSPS is the first pebble in the pond which will move Canada towards a world-class oceanbased research...

One can say that the NSPS is the first pebble in the pond which will move Canada towards a world-class ocean-based research Centre for sovereignty infrastructure. This will lead to long-term economic prosperity. We are far from being between a rock and a hard place.

It truly is the end of the beginning of the NSPS process. Most importantly — all of Canada wins.

Sailing in formation are Canadian vessels (from the center) HMCS Protecteur, HMCS Vancouver (left), HMCS Algonquin (right), HMCS Calgary (in front) and the Tanu of the Canadian Coast Guard. The NSPS will provide new opportunities and capabilities for Canadian naval and coast guard forces.

Photo credit: Sgt Alain Martineau, Canadian Forces Combat Camera

July/August, 2011 BC Shipping News 51

TECHNOLOGY

The Inovelis Pump Jet Pod

D

uring his presentation at the Mari-Tech 2011 Conference, Gene Joelson, Converteam Canada Inc. started by providing some background on Converteam, noting that the company was spun off from the power conversion team of Alstom in 2005 and has been identified for acquisition by General Electric Energy.

The transaction should be completed this summer. Converteam designs and builds rotating machines (motors and generators) as well as variable frequency drives and are masters at control and automation. Converteam then takes those three elements and integrates them together for various applications throughout a number of industries — cruise ships, international navies, offshore oil rigs, steel mills, pipelines, wind turbines, etc.

The pod propulsion system provides for improved maneuverability, reduced powering requirements, increased on-board volume, reduced noise and vibration and modular repair and replacement.

The latest development from Converteam is the Inovelis / Pump Jet Concept which was borne out of naval submarine technology. The Inovelis is a pushing pod as opposed to a pulling pod and is characterized as a very compact system. The main differentiating features of an Inovelis pod compared to a conventional pulling pod include: • a simple hydrodynamic system that uses a nozzle to increase efficiency from bollard pull to open water efficiency at transit speed ( higher open water efficiency, higher hull efficiency) • a homogenous blade loading that reduces the pump jet rotor diameter for a compact propulsor.

• a better capabilities for maneuvering at low speed and sea keeping at transit speed thanks to the nozzle.

52 BC Shipping News July/August, 2011

• a very low level of pressure pulse as the nozzle acts as a screen in front of the hull, reducing tip clearance for better hull integration.

Gene outlined how the Inovelis, two generations beyond a regular shaft propeller, enables the hull to be designed for greater efficiency. The difference between a conventional pulling pod and the Inovelis pod is that the conventional pod requires an incline which means a loss of thrust. The blades of the propeller on a conventional pod create pressure pulses which strike the underside of the hull which contributes to noise.

Converteam has put significant effort into reducing that noise, especially for cruise ships. Also, there is an area of low pressure on the hull ahead of the conventional pod which increases the drag – another thing that contributes to lower efficiency. With the Inovelis pod, the line of thrust is horizontal – being a pushing pod, the propellers move further away from the underside of the hull and can be optimized for cleaner hydrodynamic flow into the thruster.

Additional differences — and hence benefits — to the Inovelis pod over the conventional pod are related to simplicity - electrical steering (rather than hydraulic), integrated seating for ease of installation by the shipyard, bi-lateral cooling for homogeneous temperature gradient, a high torque density induction motor rather than a more complex synchronous motor that requires a rotor mounted exciter, and marine proven sleeve bearings for the shaft line. For inspection and maintenance the larger Inovelis pods provide access from inside the ship for a typical size technician (this is not the case for smaller, compact Inovelis pods ranging from 2 to 5 MW).

The Inovelis pods range in sizes from two to five MW (a compact pod suitable for a yacht, tug, and smaller ferries) up to a range of five to 21 MW which would be found in cruise ships, large ferries and tankers for example.

Gene used a case study of a Ro-Pax ferry in France, noting that the advantages due to the Inovelis pod included improved propeller efficiency and ef-

TECHNOLOGY

ficient hull design leading to reduced fuel costs; increased size of door openings and the potential to increase lane lengths, due to the Inovelis’ compactness, leading to reduced loading/unloading time and increased pay load.

Increased maneuverability enables a reduction in time required for maneuvering when entering and leaving harbour. Hence, time at sea can be increased which allows for a reduction in transit speed to further reduce fuel consumption.

In summarizing his presentation, Gene discussed capital investment requirements for electric propulsion systems compared to a mechanical propulsion ferry with multiple bow / stern thrusters and a separate suite of gensets for hotel load. With less power installed, higher maneuverability, increased pay load and reduced fuel cost and emissions, Gene noted that the Inovelis pod opened the path for enhanced ship design that benefits the fleet operator throughout the life of the vessel.

July/August, 2011 BC Shipping News 53

BC SHIPPING NEWS

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