BC Shipping News - June, 2011

INSIDE: CANADIAN COAST GUARD PACIFIC REGION FLEET GUIDE

BC SHIPPING NEWS

Volume 1 Issue 3

www.bcshippingnews.com

June, 2011

Retail Price: $4.95

West Coast coal export terminals:

A boom in business puts all three Canadian West Coast facilities at capacity and scrambling to expand to meet client demands.

Canadian Coast Guard The three ‘R’s: Renew, rebuild, recruit.

Industry Insight

Kaity Arsoniadis-Stein: Connecting Canada to the world.

The Indo-Pacific

The Canadian Navy’s future role in building a stable trading regime.

Plus:

Mari-Tech 2011: Part one of a two-part summary series.

June, 2011 BC Shipping News 1

June 2011

Volume 1 Issue 3

Contents Not now dear, I have a coal export headache.

BC coal export terminals are enjoying strong global demand. Now the challenge is to meet customer expecations and expand at the same time. Ray Dykes takes a look why...and what next.

Cover Story - P. 36

Cover shot and inside photos of Westshore Terminals courtesy of PR PLUS Communications (www.prplus.ca).

Photo courtesy of Neptune Bulk Terminals

10 Industry insight The President and Secretary-General of the International Ship-Owners Alliance of Canada Inc. provides a revealing look at the issues affecting the world shipping industry and Canada’s role within it.

26 Coast Guard fleet guide Pacific Region fleet

This handy reference guide provides a visual guide to the fleet of the Canadian Coast Guard Pacific Region including key specifications, homeport and refits.

51 Technology/New Products Commercial Marine Drive Systems: The benefits of lithium polymer technology.

Modulated molecular oscillations: A lasting solution to fight rust, lime, scale and microbiological problems.

D E P A R T M E N T S

F E A T U R E S

Kaity Arsoniadis-Stein

6

Industry traffic

18

Ship security

20

Canadian Coast Guard

32

Legal affairs

35

History lesson

40

Mari-Tech: Part one

46

The Indo-Pacific Ocean

54

Events

News briefs.

BCSN looks at ship security courtesy of canine detection.

Plans and priorities for the next decade.

Some issues respecting stowaways and deserters.

A shipping disaster: the S.S. Pacific.

First of a two-part series summarizing the presentations at Mari-Tech 2011.

Canada looks West to the new pond.

Upcoming events in June.

June, 2011 BC Shipping News 3

MARITIME S E R V I C E S

LT D .

June, 2011 Volume 1/Issue 3

• Nautical charts and publications from Canada, US and UK.

Publisher McIvor Communications Inc.

• Worldwide digital charts and marine navigation software.

President & Editor Jane McIvor

• Marine electronics incl. Furuno, ACR, ComNav and ICOM.

Contributing Writers Kaity Arsoniadis-Stein Ray Dykes Carrie Schmidt Donna Spalding Joe Spears Peter Swanson

• Commercial and coastal liferafts, life jackets and distress signals.

Advertising Mark Collett/MSL Marketing & Sales Phone: 604-351-0211/E-mail: mjcollett@xplornet.com

• Thermal imaging cameras for shipboard security.

The Shape of 1 888 387 8667  604 294 3944  www.maritimeservices.ca dventure.

The Shape of dventure.

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

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The opinions expressed by contributing writers are not necessarily those of the Publisher. No part of this magazine may be reproduced in any form without written permission of the publisher.

4 BC Shipping News June, 2011

EDITOR’S NOTE

There is so much potential...we just need to act together.

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his past month has been fascinating. The interviews, discussions and presentations that consumed much of my time provided me with new insights and a renewed enthusiasm about the potential of British Columbia’s marine industry. It also served as a reminder of the significance of government involvement and the many shapes in which that involvement comes.

It started with an interview with Kaity Arsoniadis-Stein, President and Secretary-General of the International Ship-Owners Alliance of Canada Inc. and subject of this month’s Industry Insight. Ms. Arsoniadis-Stein is impressively well-versed in issues that affect the Canadian shipping industry, both positive and negative and within a national and international context. Her suggestion that Canada, like Australia, should establish a Shipping Ministry to coordinate the many government departments involved in decisions that affect maritime activities made sense.

Her logical assessment of issues related to emission regulations was unarguable.

And the fact that cap and trade systems have been proven ineffective at lowering our overall carbon footprint was now so clear to me that I couldn’t imagine why a proposal like that was still being discussed at any level of government.

As the month progressed, I had the pleasure of attending the Mari-Tech Conference in Victoria. The theme of the conference (A vision of Canada’s Marine Industry in the year 2020) provided insights that were invaluable — not just of the technological advances that are now entering the mainstream

(which in itself is quite exciting) but for the opportunity to see the government decision-making process from another perspective.

Canada has, for far too long, ignored its responsibility to ensure an effective and responsive Coast Guard and Navy.

Governments will always play a key role in developing new regulations that are deemed to be in the best interests of its citizens. Issues like environmental sustainability, national sovereignty and security, and health and safety require government’s attention but, as Jeffrey Smith pointed out during his presentation at Mari-Tech, governments are beginning to retreat from the day-to-day management of regulations such as we see happening with classification societies that are soon to be mandated to provide inspection services and oversight on ship design and construction on behalf of government.

As I listened to Vija Poruks, Assistant Commissioner, Canadian Coast Guard Pacific Region, update Mari-Tech attendees on plans for fleet renewal and expanded responsibilities in areas like the Arctic; and Vice Admiral (retired) Peter Cairns provide an overview of how the National Shipbuilding Procurement Strategy would serve to revitalize Canada’s shipbuilding industry, I saw government in yet another light.

The NSPS is a fortuitous opportunity for Canada’s marine industry to benefit from providing necessary infrastructure and support to the government’s prior-

ity of providing protected shores and safe passage. Canada has, for far too long, ignored its responsibility to ensure an effective and responsive Coast Guard and Navy. Why the Canadian government didn’t act sooner doesn’t matter anymore. The point is, we’re faced with an urgent need to address the deficiencies that have mounted over the past 25 years at least. But, while the NSPS promises to correct some deficiencies, so much more needs to be done to bring our coastal forces up to a level that securely matches our abilities with our potential.

And then I read this month’s article submitted by Joe Spears — again, here was this inextricable link between government and industry. Joe argues that “strengthening our Navy is an important and critical component to Canada’s sovereignty infrastructure as a maritime and exporting nation engaged in international trade”.

And my conclusion, while incredibly simple, is worth stating and worth reminding ourselves: We might not always agree with decisions or regulations that are made in “the best interests of Canada’s citizens” but governments are necessary — not just for job creation, business development and wealth, but for security, safety and protection of the environment. It is up to us as an industry to educate policy-makers like no others can when it comes to maritime issues. And it is up to all of us — both government and industry — to ensure we can take advantage of the opportunities for growth and capitalize on the potential of the future that so certainly does exist. BCSN June, 2011 BC Shipping News 5

INDUSTRY traffic TSI welcomes back Yang Ming

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fter a two year absence, Yang Ming vessels will be seen sailing into Vancouver again.

Yang Ming’s weekly Trans Pacific service resumes by calling TSI Vanterm. Their first vessel arrived on May 10th, 2011 and comes shortly after the ratification of BCMEA’s and ILWU’s Collective Bargaining Agreement. The term reached with ILWU is Canada’s longest in history and is set

to restore supply chain stability across all terminals in Vancouver.

Located in Vancouver’s inner harbour, Vanterm is Port Metro Vancouver’s most efficient terminal and has provided customers with strong production improvements year over year. In 2010, Vanterm set new terminal records by averaging 30 ship side moves per hour and maintaining truck turn times of less than 20 minutes per transaction.

From left to right: Peter Xotta, Port Metro Vancouver, Vice President, Planning and Development; Mark Keserich, ILWU Local 500, President; Eric Waltz, TSI Terminal Systems Inc. (TSI), President; Captain Z. Szynal, MV YM An Ping; Spring Wu, Yang Ming (America) Corp., President & CEO; Captain T.R. Lee, Yang Ming (America) Corp., Senior Vice President, Operations.

BC Ferries CEO calls for support of BC shipbuilding In an opinion piece in The Province Newspaper on May 18, 2011, David Hahn, President and CEO of BC Ferries encouraged everyone to show their support and impress upon local, provincial and federal representatives the importance of a vibrant shipbuilding industry in British Columbia. “It is critical for the long-term viability of the West Coast marine industry to win one of the two contracts to be awarded...”

Referring to the current bidding process for one of two contracts to be awarded under the National Shipbuilding Procurement Strategy (NSPS), Hahn noted that Seaspan Marine Corporation is in the running for one of the contracts and has committed to investing in excess of $100 million in both Vancouver and Victoria Shipyards should they be successful.

Alluding the BC Ferries’ decision to build previous vessels overseas in Germany, Hahn stated that the preference of the Corporation would be to “build our future ships on the West Coast”.

This will only be done however if there is improvement in the marine industry’s infrastructure and competitiveness.

Bids for the contracts are due in July, 2011 and a decision on the winning bids will be made by the end of this year.

Joint Review Panel sets start date for hearings on Enbridge Project

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he Canadian Environmental Board Assessment Agency and the National Energy Board announced that the Joint Review Panel, established to review the Enbridge Northern Gateway Project, will begin hearings on January 10, 2012. Locations have not yet been set. There will be two sets of hearings — the first set will be community hearings to hear oral 6 BC Shipping News June, 2011

statements; and the second set will consist of final hearings for questioning and final arguments.

The Panel also plans to hold information sessions prior to the hearings.

Details on dates and locations for both the information sessions and the hearings will be posted on the Joint Review Panel website: www.gatewaypanel.review.gc.ca.

The proposed Project involves the construction of two 1,170 kilometrelong pipelines from Bruderheim, Alberta, to Kitimat, British Columbia as well as the construction and operation of the Kitimat Marine Terminal. The Panel is mandated to assess the potential environmental effects of the Project and deterime if it is in the Canadian public interest.

news briefs South Fraser Perimeter Road runs into roadblocks

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etween Earth Day (April 22, 2011) and May 5, 2011, the South Fraser Perimeter Road (SFPR) faced protests in the form of the South Fraser Protection Camp. Faced with an injunction, the “StopThePave” group vacated their camp but not before vowing to continue on with the fight.

Despite being 25% complete and part of a regional transportation plan for more than 20 years, the protest group believes it is not too late to stop the project. Bob Ages of the Council of Canadians National Board said: “Translink has cut bus service to save a few million, meanwhile the province is spending billions on freeways which increase our dependency on cars and tar sands

oil...1950’s thinking won’t solve the problems of the 21st century.”

In a statement released shortly after vacating the camp, StopThePave called for the support of those who “oppose this blatant climate crime and paving over of: Native burial grounds, Burns Bog, the mouths of many of the remaining salmon bearing streams in Delta and Surrey, the neighbourhoods and farms along the proposed freeway; and the resulting pollution and threats to our health, from children to our elders...”

According the SFPR project website, the new route benefits commuters, the trucking industry and tourists by connecting primary gateway facilities as well as facilitating access to borders,

the Tsawwassen ferry terminal and the BC Interior. SFPR will offer goods movers an efficient transportation corridor, while restoring municipal roads as community connectors by reducing truck and other traffic on municipal road networks in Delta and Surrey, improving quality of life for residents and local businesses.

The StopThePave group are currently discussing their next steps and are holding a public meeting in May to provide more information.

The first phase of the perimeter road, east of the Patullo Bridge, is scheduled to be completed by December, 2012.

The second phase, west of the Patullo, is to be completed by December, 2013.

Final Transboundary Oil Spill Report now available

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new report has just been released by the Pacific States (Alaska, Washington, Oregon, and California)/British Columbia Oil Spill Task Force. The report: The Stakeholder Workgroup Review of Planning and Response Capabilities for a Marine Oil Spill on the US/Canadian Transboundary

Areas of the Pacific Coast Project Report, is an extensive look at oil spill response planning and preparedness for transboundary areas along the two Pacific Coast marine borders between Canada and the United States.

The final US/Canada transboundary oil spill project report is now available

at: www.oilspilltaskforce.org. At their final meeting in 2011, the Transboundary Project Workgroup recommended that the Pacific States/British Columbia Oil Spill Task Force lead a review in five years to determine the implementation status of each of their recommendations.

June, 2011 BC Shipping News 7

INDUSTRY traffic More West Coast firms join Green Marine

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hree more West Coast companies have joined up with Green Marine, the joint Canada-US initiative aimed at implementing a marine industry environmental program throughout North America.

Greater Victoria Harbour Authority (GVHA) — began operating its four port facilities in April, 2002 with a view to fulfilling the harbour’s role as a working port, a marine transportation centre and a hub for tourism. The GVHA’s vision and mandate focus on operating the port’s deep-sea and marine facilities in an environmentally responsible manner with involvement from the wider community. Indeed, sustainability is one of the guiding principles of this non-profit entity.

Island Tug and Barge Ltd. — the West Coast’s largest carrier of fuel products has entered its entire fleet into the Green Marine Environmental Program.

The Vancouver-based company provides transportation services for the oil majors to communities along the West Coast from California to the Arctic. It is also involved in marine construction and salvage operations, underwater cable installations, and general towing and barge services. With a fleet of nine

8 BC Shipping News June, 2011

SMIT Marine Canada Inc. was one of three West Coast companies to join the Green Marine Program. tugboats, 14 barges and more under construction, Island Tug is the largest supplier of bulk fuel to Vancouver Island as well as BC’s only domestic supplier of underwater cable laying and repair services.

Smit Marine Canada Inc. — owns and operates 21 tug boats which provide harbour towage services for six ports in BC. SMIT has been actively working on finding solutions to decrease the environmental impact of its operations

on a global scale, including the development of hydro-hybrid tug boats that use hydrogen and fuel cells. SMIT has a proud tradition of nearly 170 years of service in the maritime sector. The company has earned an excellent reputation in the nearly 50 locations around the world where it is active. SMIT’s services are oranized into four divisions: Harbour Towage, Terminals, Salvage, and Transport & Heavy Lift.

In order to reflect the expansion of Green Marine’s membership and its penetration into the West Coast, the Board of Directors has invited two new marine associations to join its ranks.

As a result, Captain Stephen Brown, President of the Chamber of Shipping of British Columbia (which represents the interests of commercial ship-owners, operators and agents with respect to marine issues in British Columbia) and Captain Philip J. Nelson, President of the Council of Marine Carriers (which represents and protects the interests of West Coast tug and barge operators) will become the newest members of Green Marine’s Board. This was confirmed at Green Marine’s last annual meeting on Thursday, May 12, 2011.

news briefs New manager for Cruise at PMV

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armen Ortega has been promoted to Manager, Cruise at Port Metro Vancouver (PMV).

In this role, Carmen is responsible for managing cruise customer relationships, business improvement processes and marketing program development for Port Metro Vancouver in the cruise sector. Carmen also represents PMV as Chair of the Cruise BC Association and Chair of the Pacific Rim Cruise Association.

Carmen joined the Port in July 2006 as Trade Development Coordinator and later took on the roles of Customer Service Coordinator and Customer Relations Representative. Prior to joining the Port, she worked in a number of customer focussed roles including positions such as Communications Coordinator, Project Manager, and Information Specialist with the Organization of American States, Washington D.C. Carmen earned her Bachelor of Arts from Simon Fraser University in 1993,

“Cruise and energy markets are the ones to watch,” says Wilhelmsen Ships Service

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her Masters degree in International Studies from the University of Barcelona in 1996 and her Masters of Business Administration from Johns Hopkins University in 2004.

ales Director for Wilhelmsen Ships Service in the Americas, Philip Bannerman, said that: “While the shape of the shipping industry in North America is fairly stable, we are expecting more global demand from our cruise and offshore customers.”

Bannerman, who is based at the company’s Houston, Texas office, also believes that Mexico has more potential for development. Commenting on the overall health of the ships agency business in North America, he says, “The traditional shipping market is perhaps more ‘mature’ than in other parts of the world, but the ever growing demand for energy continues to open up business opportunities for all our business streams. We see increased activity from the offshore segment and traders and charterers. In addition, the supply of agency and logistics services to the cruise sector is likely to increase as the industry continues its geographical expansion.

“Our main investment focus is on sales resource with the right competence to target the market segments we expect to grow.” Focussing in more detail on the cruise sector, he observes that the industry has weathered the global recession very well. “Bookings are strong and ticket prices are rising,” he says. “The cruise industry is continuing to expand in Europe and into new markets such as the Far East and South America.”

According to Bannerman the concerns and challenges for the traditional shipping sector in North America echo the global conditions, namely oversupply of tonnage, fuel costs, regulatory pressure and liquidity. “2011 is likely to be a tough year for many of our customers,” he says, “and we see opportunities to improve their operational efficiency by using our global network and wide portfolio of products and services.”

June, 2011 BC Shipping News 9

Industry Insight

Connecting Canada to the world...and vice versa.

Kaity Arsoniadis-Stein, President and Secretary-General, International Ship-Owners Alliance of Canada Inc. plays a key role in Canada’s shipping industry. Not only does she ensure Canada’s voice is heard at the highest international levels, but she brings the views of the world back home and provides an insight into our own industry that is unique and fascinating.

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hen BC Shipping News sat down to interview Kaity Arsoniadis-Stein, our intention was to cover a range of topics that affected members of the International Alliance of Ship-Owners of Canada (ISAC) Inc. It soon became apparent however that Kaity’s grasp and knowledge of environmental issues were impressive and deserved much more of our attention than previously intended. With that in mind, you’ll find our interview focussing mainly on the issue of the environment and surrounding regulations. We started to talk about greenhouse gases (GHGs) however decided the topic was large enough for a separate article in a later issue of BCSN. BCSN: Tell us about the current economic climate and the factors affecting recovery.

KAS: Analysts are saying that tonnage over-supply will most probably continue to be a problem for owners for another three years since demolition, though elevated, is not enough to ease pressure on freight rates. To im-

10 BC Shipping News June, 2011

prove freight rates owners either have to cancel new building orders, which is not that easy, postpone/modify deliveries, succumb to considerable lay-ups or scrap tonnage which is the sustainable way to move forward. The influx of new tonnage into the world fleet will finally retire those over-aged “vintage” vessels with the result of at least one benefit, a younger world fleet. It should be noted, however, that some shipping segments do have a very modern fleet.

For example, 74% of the tanker fleet is built in 2000 and later. Saying that, for scrapping to be a viable option, massive amounts of old tonnage will have to be scrapped raising the issue of whether that capacity is available at the demolition yards.

Unpredictable world events such as the floods in Australia, South Africa, Brazil, the unrest in Libya as well as the tsunami in Japan have also had an impact on trade, changing the preconditions for the freight market. We cannot lose sight of the fact that Japan is a significant world economy and its

importance in the global trade economy is vital. Some analysts have suggested that the disaster in Japan will have severe macro-economic impacts that could derail worldwide recovery.

Unpredictable world events such as the floods in Australia, South Africa, Brazil, the unrest in Libya as well as the tsunami in Japan have also had an impact on trade...

However, it is expected that once reconstruction begins in Japan, the dry and wet markets will see higher earnings and in the long-term, disruption of Japan’s nuclear power plants could spur demand for LNG, petroleum and crude imports, as Japan is the worlds’ third largest oil importer (behind US and China) and the top importer of thermal coal and LNG. In the dry market, once Japanese ports re-open and restructuring of Japan begins, chartering activity will increase as there will be a demand

Industry Insight for steel, iron ore and coal and Japan is the world’s second largest customer for dry bulk commodities after China.

Of course recovery, which has been assisted by government stimulus packages, will depend on the revival of consumer spending and investor confidence. Statistics show that 70% of the US GDP comes from consumer spending. This US economic engine translates into 40% of the global GDP. But also, future growth may to a great extent depend on China and the emerging markets. Always an optimist, I believe we have turned the corner and are now slowly recuperating to levels of stability.

Companies always find a way to carry on. If you are in the shipping industry long enough, you know that it is a cyclical industry and you are able to recognize the cycles and weather the storms instead of becoming complacent during the good double super-cycle years.

BCSN: Can you provide some insight into the future of shipping for Canada and the West Coast?

KAS: In the 1950s, Canada was considered a major maritime nation. We’ve lost that status today however we are well positioned to take advantage of tremendous trade opportunities with the growing economies of Asia as well as our proximity to the US and Europe. Canada is a trading nation and one in five Canadian jobs depends on international trade — 80% of which occurs by ship.

Since Canada’s economy is so dependent on trade, since Canada federally has prioritized Gateways and Trade Corridor Initiatives, since Canada is a nation rich in natural resources and with the opportunities in the Arctic, we should recognize the possibilities available through a revitalization of the shipping industry.

An initiative was made in 1991 when government partnered with industry, specifically the International Maritime Centre (IMC), to make key changes to taxation and immigration which resulted in ship-owners establishing head offices in Canada. The IMC suc-

Kaity stands with International Maritime Organization Secretary General, Efthimios Mitropoulos. cessfully attracted many foreign based ship-owners, operators and managers to operate out of Vancouver. The initiative was designed to create new economic

Ideally, as we have seen with other maritime nations, the creation of a Shipping Ministry would provide focus and results. activity and employment in Canada, provide support for Canadian trade and enhance the service capacity of Canada’s major trading and financial centres. As a result of this 1991 initiative, hundreds of jobs were created and millions of dollars were injected into Canada’s GDP. However, since the 1991 changes to the Income Tax Act were made, the shipping industry has evolved significantly and while other countries have enacted favourable shipping tax regimes, in recognition that the modern world economy has changed, Canada has sadly lagged behind.

BCSN: And what would you see as necessary actions for the government to address this?

In order to develop a strong shipping sector in Canada, a variety of government departments will need to be involved to formulate harmonious shipping policy and regulation. Ideally, as we have seen with other maritime nations, the creation of a Shipping Ministry would provide focus and results. At the very least, a Committee with a longterm, 25-year plan should be struck to include the Ministry of Finance, Ministry of Transportation, Ministry of Asia-Pacific Gateway, IMC, labour, banks, insurance, etc. We have to update our income tax and immigration laws as well as remove criminal strict liability for company directors, officers and seafarers. Also, Canada should consider the creation of a competitive International second registry for ships [i.e., a Canadian fleet designated for international trade without impeding domestic trade (cabotage)].

It must be noted that unless criminal strict liability is removed from Canada’s June, 2011 BC Shipping News 11

Industry Insight legislation, it will be difficult to foster a domestic based international shipping presence in Canada. Once upon a time it may have been necessary when the Paul Martin Liberal government introduced it; however, since the enactment of the Environmental Enforcement Act where penalties of $12 million a day are

We have a long way to go but I’m pleased to see that government is considering strengthening the shipping sector. available on a strict liability basis, criminal strict liability legislation should be reviewed. With this in mind, ISAC has worked with labour, namely Peter Lahay of ITF Canada and together have appeared before House and Senate Committees to raise awareness of how Canada’s strict liability regime, out of step with international conventions to which Canada is party, will impede the development of a Canadian based international shipping presence.

Left to right: Art Benlser, Teekay Shipping; Oscar Pinto, Valles Steamship, Minister of Transportation and Infrastructure, Blair Lekstrom; Kaity; George Heinmiller, Teekay Shipping.

12 BC Shipping News June, 2011

We have started to move in the right direction — the creation of the Vancouver International Finance Sector Steering Committee in 2009 was one such move. The previous BC Ministry of Finance and Ministry of Small Business, Technology and Economic Development were drivers behind this initiative and a number of ISAC members were involved. A number of recommendations were put forward that would make Vancouver a “best-in-class” transportation hub that could stand up to the likes of Houston, Hong Kong and Singapore. A Phase One Report has been published and they are now working on Phase Two. We have a long way to go but I’m pleased to see that government is considering strengthening the shipping sector. I hope that the current transition with the provincial government doesn’t mean we lose sight of this

Industry Insight initiative. We have had the opportunity of meeting with Minister Lekstrom and were pleased to see his enthusiasm for, and understanding of, the importance of our industry. Political will is essential both at the provincial and federal levels.

BCSN: And with the opening up of Arctic shipping routes, this would only add to the potential of shipping for Canada?

KAS: It is an emerging idea definitely and one that would benefit Canada as a whole. Transit times via trans-polar shipping routes are significantly lower

NOx and SOx of maximum 1.0% sulphur down to 0.1% sulphur by 2015.

As I have mentioned before, this new robust regime, which will result in up to 90% reductions of harmful ship emissions, was developed at the International Maritime Organization and supported by many shipping associations but completely depends on action by the oil refineries to make the product globally available. Since the IMO has no mandate to impose regulations on oil majors, the refining industry, although under pressure, has no obligation to

Since the IMO has no mandate to impose regulations on oil majors, the refining industry, although under pressure, has no obligation to meet the increasing demand for cleaner fuels. compared to those of current shipping routes. There are potentially two routes for deep-sea shipping, the Arctic Passage and the Northwest Passage; but work still needs to be done, for example, the charting of safe routes is necessary before traffic can increase to the point where it has an impact on global shipping routes. In your previous issue, Joe Spears correctly stated that it is critical for Canada, a major Arctic nation and leader, to have the necessary sovereignty infrastructure to deal with Arctic issues and that furthermore, Canada can lead the way in Arctic Ocean Management, again yet another reason to invigorate Canada’s maritime industry.

BCSN: Let’s discuss more about government involvement. What are some of the more pressing issues for the industry when it comes to dealing with both national and international government regulations?

KAS: In August, 2012 the North American Emission Control Area will become enforceable, requiring ships to burn cleaner fuels with reductions in

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meet the increasing demand for cleaner fuels.

BCSN: What is the primary reason driving resistance among the oil majors to provide cleaner fuels?

KAS: Well there are a few theories.

Marine residual fuel oils are considered waste products of the refining process.

Being able to sell this waste for a profit to the shipping sector is a convenient outlet for “disposing” of material that would otherwise have to be environmentally disposed of at a cost to refineries. Studies suggest that in order for

About the International Ship-Owners Alliance of Canada Inc.

he International Ship-Owners Alliance of Canada Inc. (ISAC) is incorporated under the Canada Business Corporations Act and was founded in June, 2004.

The purpose of forming ISAC was to create an alliance of ship-owners that could focus on building trust and good will with various sectors of the industry both nationally and internationally, including the provincial and federal governments of Canada, as well as specific interest groups such as labour and environmental organizations in an effort to establish open communications for effective working relationships.

ISAC’s Mission Statement: To promote the interests of ship-owners/operators with a presence in Canada.

ISAC wishes to strengthen Canada’s marine industry. In doing so, ISAC recognizes the need to be environmentally responsible while remaining competitive in the global marketplace. Knowledge of government policy and legislation, awareness of social and environmental impacts, and co-ordination with various sectors such as the unions, are necessary factors to ensure a sustainable shipping industry.

ISAC is a staunch supporter of the International Maritime Organization.

ISAC executive: CHAIR: Oscar Pinto, Valles Steamship (Canada) Ltd. CO-CHAIR: William Jones, Inter-Oceans Company Limited VICE-CHAIR: Robert Ho, Fairmont Shipping (H.K.) Ltd. PRESIDENT & SECRETARY GENERAL: Kaity Arsoniadis-Stein International Ship-Owners Alliance of Canada Inc. c/o Fairmont Shipping Suite 300—1112 West Pender Street Vancouver, BC V6E 2S1 Web: www.isacinc.ca

June, 2011 BC Shipping News 13

Industry Insight refineries to provide the shipping industry with clean fuels, about 50 refineries would have to be upgraded. The cost to oil refineries for the required upgrades is estimated at about $38 billion.

Some argue that oil companies should actually be motivated to produce greater volumes of lighter fuel as it is well

By contrast in Europe and the United States, there are stringent regulations requiring clean petroleum products sold and used by cars and land-based transportation industries. known that oil companies make significant profits from lighter and cleaner fuels when compared to residual fuels. A cynic would say, however, that perhaps even greater profits can be achieved if in controlling the supply, refiners deliberately produce an inadequate supply, which coupled with increasing demand and no workable alternative technologies, offers the potential for even higher profits, without the necessary upfront capital cost investment of some $38 billion.

The improvements we all want with respect to the global air shed can be fully realized if the oil refiners accept their responsibility to improve the quality of the fuels they make available to the shipping industry. By contrast in Europe and the United States, there are stringent regulations requiring clean petroleum products sold and used by cars and land-based transportation industries. With respect to shipping, which moves over 80% of global trade, it is expected that the industry itself should clean the dirty fuel with which it is provided. It seems far more rational and cost–effective that the 600 or so refineries that exist should provide the fuel required by global standards rather than have the world fleet of some 50,000 vessels, on an individual basis, 14 BC Shipping News June, 2011

Kaity, Canada’s Prime Minister Stephen Harper and Kyle Washington, Seaspan. struggle to cope with the absence of functional abatement technologies and the challenges of removing contaminants from fuel.

BCSN: What can be done about this?

Is there any movement within government to recognize and address this?

KAS: This is difficult to answer because unless regulations are imposed on the refiners on a global basis, it will be

doubtful whether they will act voluntarily to provide the clean fuels required by the shipping industry. The reality is that, unlike shipping which is globally regulated through the IMO, the refining industry remains essentially unregulated in the international arena.

We have been working with Environment Canada and Transport Canada discussing this issue and are pleased

Andreas Chrysostomou, Chairman of the Marine Environmental Protection Committee of the IMO and Kaity at the 2009 United Nations Climate Change Conference.

Industry Insight

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About Kaity Arsoniadis-Stein LLB, LLM

aity is the President and Secretary-General of the International Ship-Owners Alliance of Canada (ISAC). Commencing her career in the shipping industry in the United Kingdom, she obtained her LLB degree in English Law and her

Masters of Laws degree (with honours) in Maritime Law from King’s College, London University. After attending law school at the University of Victoria in Canada, she was called to the Bar in British Columbia, Canada in 1999.

Kaity practiced maritime law internationally in England, having worked in the FD&D department of Gard Protection and Indemnity Club, and in Greece she worked for ELDA, the National Oil Refineries of Greece. In Vancouver, British Columbia, she worked with the law firm, Bull Housser and Tupper as well as Teekay Shipping Limited and Seaspan Container Lines.

Kaity drives forward ISAC’s role to monitor relevant marine policy and legislative developments in Canada. Knowledge of government policy and legislation, awareness of social and environmental impacts, and co-ordination with various sectors such as labour unions and environmental groups are necessary factors to ensure a sustainable shipping industry.

Kaity with her grandfather and her brother George.

In this capacity, Kaity has appeared as a witness for the international shipping industry in the House of Commons and the Senate of Canada. She has participated in the Marine Environmental Protection Committee meetings at the International Maritime Organization and has attended the United Nations’ Climate Change Conference in Copenhagen (COP 15) on the invitation of both the Canadian delegation and the BIMCO delegation of Denmark.

Kaity has been with ISAC since 2005 and is also a Director of the International Maritime Centre, Vice-President and Director of Vancouver Maritime Arbitrators’ Association, Trustee of the Insurance Dispute Resolution Services of BC and a member of the Canadian Maritime Law Association.

Her hobbies include travel, art, architecture, and classical piano and she has an interest in politics and fashion. Her passion is her family and outside of the industry, she is mostly known as the wife of Dr. Jeff Stein or the mother of their dynamic four year old daughter, Amélie.

Kaity with her parents at her call to the bar of British Columbia.

Kaity with her husband Jeff and daughter Amélie.

June, 2011 BC Shipping News 15

Industry Insight that they are working on amending Canada’s Sulphur in Diesel Fuel Regulations. Given that the North American ECA will restrict emissions from ships, Environment Canada is considering amendments to its Sulphur in Diesel Fuel Regulations to enable the production/ import and sale of 1,000 ppm marine diesel for use in Category 3 vessel engines.

Both Transport Canada and Environment Canada recognize the need to provide the ship’s master an allowance to fuel the ship with the cleanest available fuel as it is anticipated that the supply of compliant fuels will become an issue.

Of course, there will be a requirement to prove that every effort was made to obtain the fuel as stipulated by regulation. Hopefully, the US will implement similar regulations. It is unfortunate that governments feel they cannot force refiners to provide the supply required by the industry and demanded by global society.

BCSN: What other regulations should we be watching for?

KAS: Proposed draft amendments to MARPOL Annex VI — Regulations for the prevention of air pollution from ships — to make mandatory for new ships the Energy Efficiency Design Index (EEDI) and the Ship Energy Efficiency Management Plan (SEEMP) to reduce emissions of greenhouse gases from international shipping will be considered for adoption at the July, 2011 session of the IMO’s Marine Environment Protection Committee (MEPC), chaired by Andreas Chrysostomou. The EEDI is a non-prescriptive, performance-based mechanism allowing industry to select technologies that would attain the required energy-efficiency levels.

It remains to be seen if these proposed draft regulations will be adopted given the very strong objections voiced by the many States that are not Parties to MARPOL Annex VI. There are many theories about the EEDI, for example, 16 BC Shipping News June, 2011

naval architect Jack Devanney has produced papers stating that it is irrational, unsafe and ineffective. Contrary arguments also exist — for example, Japanese designers and builders have set out how new design and equipment can allow ships to transport the same volumes of cargo with less consumption of fuel and no change in speed.

Although it is recognized that the EEDI requires further development, and although a unified approach on GHGs is preferred, it could be that shipping organizations will voluntarily support the EEDI even if not adopted by the IMO.

There has been considerable debate whether technical and operational measures alone could provide for adequate reductions in GHG emissions from international shipping.

The EEDI is a technical issue that to a great extent has become very political and therefore making it very difficult for the IMO to resolve.

BCSN: Can you tell us a bit about the market based measures (MBMs) for GHG reductions from ships?

KAS: There has been considerable debate whether technical and operational measures alone could provide for adequate reductions in GHG emissions from international shipping or if there was an additional need for MBMs to be implemented. The argument is that since technical and operational measures have yet to be assessed and since no determination has been made with respect to tangible reductions, there is no need to work on MBMs. Nevertheless, there are various MBM proposals tabled at the IMO ranging from a levy on fuel to an Emissions Trading Scheme (ETS). This is a very involved discussion which we should address at a later time, but one thing I will comment on is that an ETS for shipping is unworkable

as it is built on the concept of “Cap and Trade” (setting a cap for the emissions from international shipping, distributing the emission allowance among ships through auctions and enabling trading among them) and will significantly increase administration for shipping companies while allowing pollution to continue at a theoretic price. The following questions must be asked: Should we be working on a proposal that is fundamentally based on a cap on trade? Is the establishment of a carbon market the right approach?

Nobel Prize economist and former chief economist of the World Bank, Professor Joseph Stiglitz states: “On the “Cap and Trade” system it may be easy to implement for major source emissions, but harder to implement for the multitude of small sources. It also gives rise to distortions and transaction costs.

A key issue is how to allocate emission rights, which are a valuable asset, worth perhaps $2 trillion annually (5%

...A key issue is how to allocate emission rights, which are a valuable asset...This issue has become a major stumbling block... of global GDP). This issue has become a major stumbling block in reaching a global agreement, and the attempt to avoid taking on full implications of this issue is one of the reasons for distortionary policies (or for carbon in different uses being priced differently).”

The recent proposal submitted by Japan and the World Shipping Council merits a review as its approach focusses on in-sector reduction and does not set global capping on the total amount of CO2 emission from international shipping. It allows for incentives to accelerate the improvements in the energy efficiency of ships. The proposal would not set an emissions cap but would be designed to motivate definitive

INDUSTRY INSIGHT improvements in the fleet by reducing emissions from international shipping.

I am currently reading The Skeptical Environmentalist, Measuring the Real State of the World by Bjorn Lomborg which is now a documentary movie called “Cool It”. I highly recommend it to those interested in the discussion of Global Warming.

...through geo-engineering, there are stop gap measures that can be adopted until we invent the necessary technologies that will eventually remove societies’ addiction to fossil fuel.

Bjorn Lomborg is a former member of Greenpeace and Professor of Statistics in the department of political science at the University of Aarhus, Denmark. He is also the founder of the Copenhagen Consensus, a conference of top economists who come together to prioritize the best solutions for the worlds’ greatest challenges. In his book he criticizes the way many environmental organizations make selective and misleading use of scientific evidence. He describes how emission trading doesn’t work. What we need to do is take a measurement of where the world is at and what we need to do to improve things. He does an analysis of the $250 billion generated by the EU’s emissions trading and suggests that we need to take that money and apply it in a smart way that actually addresses GHGs effectively. His theory makes sense. He’s not denying global warming. What he’s saying is that, through geo-engineering, there are stop gap measures that can be adopted until (through necessary research and development) we invent the necessary technologies that will eventually remove societies’ addiction to fossil fuel.

BCSN: Before ending our interview, let’s spend a bit of time looking at the issue of piracy — a significant threat,

both for safety of crew and cargo but also for costs and management of security measures. What efforts is ISAC involved in that contribute to a resolution of this issue and what do you think needs to be done by governments to move this along?

KAS: Piracy is spreading and choking global trade. Industry is frustrated by the lack of initiatives from governments. It is frustrating to see the release of so many pirates that have been captured. They need to be prosecuted

In addition to the incalculable trauma piracy has caused to seafarers and their families, it is estimated that the cost to the world economy is somewhere between $7 and $12 billion per year. internationally, as restoring government in the lawless state of Somalia is unlikely to occur in the near future. I would say that an international tribunal should be immediately struck.

In addition to the incalculable trauma piracy has caused to seafarers and their families, it is estimated that the cost to the world economy is somewhere between $7 and $12 billion per year. A basic question is why motherships are not attacked given that their location can be easily determined. The issue with respect to this is that pirates are now keeping hostages on board these motherships.

Recognizing the severity of this issue and the need to raise awareness, in February, the International Maritime Organization decided that the 2011 theme for shipping should be “Piracy: Orchestrating the Response”. The UN Secretary-General Ban Ki-moon helped launch this 2011 piracy theme for shipping while reiterating his personal support and that of the United Nations.

He noted the need to develop Somali capacity to deal with piracy-related ac-

tivities on land and in its territorial sea while being linked to the broader efforts to develop Somalia’s police and coast guard as well as its justice sector to ensure that persons suspected of acts of piracy are prosecuted.

Furthermore, the world’s largest shipping industry groups (including International Transport Workers’ Federation (ITF), BIMCO, INTERTANKO, International Chamber of Shipping, Intercargo, Union of Greek Shipowners etc.) joined together to raise awareness through a joint industry-labour, INTERTANKO and ITF-led “Save our Seafarers” Campaign requesting Governments to take a firmer stance to help eradicate piracy.

In support of this well-organized campaign which included a petition of almost one million signatures, ISAC and ITF Canada jointly wrote to the Government of Canada asking Prime Minister Harper to recognize the threat to our seafarers and the world economy and take the necessary steps to eradicate piracy at sea and ashore by: • Reducing the effectiveness of the easily-identifiable pirate motherships; • Authorizing naval forces to detain pirates and deliver them for prosecution and punishment; • Fully criminalizing all acts of piracy and intent to commit piracy under national laws in accordance with their mandatory duty to co-operate to suppress piracy under international conventions; • Increasing naval assets available in this area; • Providing greater protection and support for seafarers; • Tracing and criminalizing the organizers and financiers behind the criminal networks; and, • Identifying and freezing all ransom deposits. BCSN

June, 2011 BC Shipping News 17

SHIP SECURITY

Security team works for treats.

I

f you happen to be boarding a cruise ship at Vancouver’s Canada Place and Happy Jack or Mister Baker sit next you and stare, it’s likely that you’re carrying something that you shouldn’t. Mister Baker and Happy Jack, along with Sora, Joy, Honeybun, Einstein, Burt and Dennis, Chip and Allejandro are dogs. They are also part of the team at Canadian K9 — one of the few BC-owned and operated, provincially-validated firms providing explosives and drug detection on a regular basis at Vancouver’s docks. “We provide the majority of detection services for cruise ships stopping in Vancouver,” said Margrett Donley, Director and Managing Partner for Canadian K9. “We started with three ships in 2002 and are now doing well over 100. We also provided detection services on-board the Holland America ships that were in port for the Olympics and we are set up to offer the same services out of Seattle with our sister firm, Grifdon K9 Detection.”

Without revealing too many details on security protocols or trade secrets, Margrett Donley and Dale Crump, Director of Operations and Managing Partner, sat down for an interview with BC Shipping News recently to discuss ship security. Established in 1997, Canadian K9 has more than 40 full-time staff plus an additional 20 seasonal staff and 12 detection dogs. During the course of our conversation, it becomes apparent that the reason Canadian K9 has become so successful, and in high demand, is because of their philosophy and approach to professional business practices.

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

18 BC Shipping News June, 2011

Canadian K9 staff: Chris, April and Mister Baker.

“With both clients and employees, we treat each person — and animal — connected to Canadian K9 with respect,” notes Donley. “We firmly believe that building trust, taking a team approach to operations, and providing professional services with frequent communications is the best way to operate any company. We are diligent in our efforts to ensure the best, most effective detection services across Canada, in British Columbia and the Pacific Northwest.”

To provide these services, Canadian K9 undertakes rigorous training and professional development upgrades and especially sessions that increase the bond between dog and handler. “Usually, there will be small details in how a dog performs with a certain handler that can be corrected by on-going

training,” said Crump. “For example, the dog might look away from a suspected source of contraband to see if the handler is going to reward him. This shouldn’t happen. It doesn’t take much to correct but by keeping on top of these small issues, the dogs get used to the proper techniques for detection.”

As mentioned above, Canadian K9 must also undergo an annual validation by the BC Government through the Justice Institute — the only government sanctioned certification program in Canada and the US. There are basically three training cycles both dogs and staff undertake: Regular daily practice sessions — approximately 15 minutes a day (“like practicing the piano”, notes Crump) to test the dogs on scents; formal training every month; and then three months prior to the start of cruise season, staff and dogs undergo an 80hour session (spread out over three months) to ensure they meet provincial requirements for validation, but more importantly, to ensure they are providing top-notch service for their clients.

When dealing with ship security, a basic day will start at 5:00 am. The

SHIP SECURITY dogs are taken to Crab Park, just east of Canada Place, for a run and “pee break” before heading to the terminal to start pre-screening by 6:00 am.

While the security requirements vary from ship to ship, using Disney Cruise Lines as the example, Crump will have five teams on-site prior to the ship arriving. “Every vehicle coming onto the dock is searched and a pass is issued,” says Crump. “We then search all of the unloaded pallets and suitcases.” Two dog teams will search the baggage while another dog is stationed at the service entrance of the ship where every vendor and crew member is searched on their way on or off the ship. The fifth team will conduct random searches on-board the cruise ship — over the course of a day, while the ship is in port, cabins will be randomly searched at the discretion of the ship’s security officer.

“Disney is a very professional organization and considers the security of their guests and crew a top priority,” said Donley. “When we were awarded the contract in November, 2010 we began the process of learning their security procedures and how we would best integrate and complement their existing protocols. Disney staff are great to work with — they are very good at

communicating their needs with suppliers so it was a straight-forward process to be able to ensure we were providing everything they required.”

Donley and Crump also recognized the professionalism of Port Metro Vancouver staff, Ceres terminal operators and longshoremen. “Everyone gets along and are very helpful,” noted Crump. “The fact that we are using non-threatening-looking dogs — Labs, Golden Retrievers and Springer Spaniels — I think helps staff and passengers to relax a bit more around us. Our dogs are trained for detection only and are not guard dogs — they’re very friendly and approachable.”

While the dogs may look friendly enough, their expertly trained noses can sniff out targetted material in the most difficult of circumstances. “There was an incident recently where the dogs focussed on a suitcase in the middle of a full luggage cage. The cage was outside on a windy dock, with smells of diesel and other active smells surrounding them. It turned out that a passenger had borrowed a suitcase from a friend and didn’t realize that there were two containers of strike anywhere type matches left in the side pocket,” said Crump.

“The dogs are capable of identifying the

smallest amount of contraband in an area at least the size of a container.” In fact, Crump noted that on one security detail, Mister Baker, found 80 packets of heroin in a sink drain in an apartment of a large housing complex. “He used to be called just Baker until that incident but he was so impressive that we now call him Mister.”

While providing services for cruise ships is a significant part of their business, Canadian K9 also provides services for the luxury yachting, container and commercial fishing sectors as well as for trucking companies, rental housing organizations, schools, oil patches and even special events.

“When the Aga Khan visited Vancouver two years ago, Canadian K9 was contracted to provide security services for every place he was to visit. We swept BC Place twice, his hotel, the airport hangar and even his car,” said Donley.

With the 2011 cruise season now well underway, and Canadian K9 busier than usual, that doesn’t mean the dogs are over-worked. “These dogs are like our family,” said Donley. “They are well cared for but more than that, they are truly loved. For them, what we call work is playtime.” BCSN

Allejandro

Sora

Mister Baker June, 2011 BC Shipping News 19

CANADIAN COAST GUARD

The three ‘R’s: Renew, rebuild, recruit.

W

ith 4,500 employees nationwide (900 of which serve in the Pacific Region); 142 vessels (30 of which are in the Pacific); providing support services for seven federal departments; managing seven core service disciplines, including maintenance of over 18,000 fixed and floating navigation aids (1,800 in the Pacific Region); watching almost 74,000 km of coastline (27,000 km on the West Coast) and over three million square kilometres of ocean and continental shelf; and running a college, to say the Canadian Coast Guard (CCG) is an integral part of Canada’s maritime operations is an understatement. To say they are busy is stating the obvious.

In providing a succinct overview of CCG’s operations, Assistant Commissioner, Pacific Region, Vija Poruks focussed on priorities and plans for the future. “Fleet renewal, infrastructure upgrades, expanded operations in the Arctic; environmental response, maritime security and an active recruitment campaign are just a few of the priorities that CCG is currently undertaking,” said Poruks. “We need to recognize that all of this has to be done efficiently and effectively within a constrained budget.

But we’re fortunate to have a good workforce and great clients so we’re confident we’ll continue to provide premium services for Canada.”

Background

Canadian Coast Guard operations cover seven core program areas (aids to navigation, environmental response, icebreaking, marine communications and traffic services, maritime security, search and rescue, and waterways management) within five regions (Pacific, Central and Arctic, Quebec, Maritimes, and Newfoundland and Labrador). At headquarters in Ottawa, there are five directorates (Maritime Services, Fleet, Integrated Technical Services, Integrat20 BC Shipping News June, 2011

ed Business Management Services and Major Crown Projects).

As a Special Operating Agency of Fisheries and Oceans Canada (DFO), the CCG helps DFO meet its responsibility to ensure safe and accessible waterways. The CCG also plays a key role in ensuring the sustainable use and development of Canada’s oceans and waterways.

Between 2011 and 2016, CCG has planned capital expenditures of approximately $1.9 billion, which includes $1.4 billion for the procurement of large vessels.

CCG operates nationally on an annual budget of approximately just over $700 million ($95 million allocated to the Pacific Region). Between 2011 and 2016, CCG has planned capital expenditures of approximately $1.9 billion, which includes $1.4 billion for the procurement of large vessels.

Priorities As part of her keynote presentation to attendees at the Canadian Institute of Marine Engineering’s Mari-Tech Conference, Ms. Poruks provided a general overview of CCG’s priorities and how they are managing all of the expectations within a shrinking budget, an aging workforce and an increased role in some areas of responsibility.

Fleet renewal With 142 vessels nationally, a strong priority for CCG is the construction and recapitalization of the fleet. “While we have built a number of smaller vessels over the past 10 years, we haven’t built any large vessels since 1988,” noted Poruks. “If you do the math and look at the average age of the vessels, we’re well

into the latter stages of their lifespan so we have a strong priority to address this.”

Coast Guard currently has $1.4 billion in confirmed funding allocated between now and 2017, however that’s just a small portion of their recapitalization need. CCG has developed a rigorous, structured fleet capitalization plan that outlines priorities up to 2030. Decisions on funding are made by Cabinet.

After that, Poruks is optimistic that over time the plan will be rotational and self-renewing so that CCG in the future doesn’t face another situation of such a long period between builds.

CCG is working closely with Department of National Defence and Public Works and Government Services Canada on the National Shipbuilding Procurement Strategy (NSPS) which is taking a new approach to procurement and entering into long-term agreements for ship construction. Two contracts will be awarded later this year — one for military builds and one for civilian builds. Repairs and refits will continue to be done on a competitive basis much as it is today.

“It’s a very exciting time not just for the shipbuilding industry but for Coast Guard and departments like ours as well,” said Poruks. “We won’t have to start from zero every time we start on a new vessel and we’ll also be able to standardize the class of ships being built. It is a challenge operationally to have so many classes.”

The Fleet Renewal Plan envisions a national civilian fleet of vessels and helicopters built along a class structure, capable of multi-tasking, more efficient to operate and maintain, and better able to respond to changing priorities, environmental conditions and program requirements. The $1.4 billion that is already committed will go toward 14 new large vessels, including:

CANADIAN COAST GUARD

Canadian Coast Guard vessels of all shapes and sizes were on patrol and very visible during the Olympic Winter Games in Vancouver in 2010.

• Nine Mid-shore Patrol Vessels (MSPV) — delivery of the first three “Hero Class” vessels will be in 2011/12 and delivery of the remaining six will be in the 2012/13. They are currently being built in Halifax, Nova Scotia by Irving Shipbuilding Inc. Five of the nine vessels will be used primarily to support DFO’s Conservation and Protection program in the Maritimes, Quebec and Pacific Regions (at least two will come to the Pacific Region).

The other four will be used in a joint program with the Royal Canadian Mounted Police to enhance maritime security along the Great Lakes – St. Lawrence Seaway system. Each vessel will support a crew of nine and up to six enforcement officers. They will be approximately 43 metres in length, have a top speed of 25 knots and a range of 2,000 nautical miles, and be able to stay at sea for two weeks without re-provisioning.

• Three Offshore Fisheries Science Vessels (OFSV) — these will replace aging Coast Guard ships on the East and West Coasts of Canada and will provide a platform from which scientific research and ecosystem-based management can be performed. Each vessel will have accommodations for approximately 39 (crew and scientists). They will be approximately 60 – 65 metres in length and be capable of staying at sea for up to 31 days without re-provisioning. The design will include a modern propulsion system, an integrated bridge system, modern acoustic sensors and modern deck and trawl equipment. The design contract was awarded to Robert Allan Ltd., Alion Science and Technology (Canada) Corporation in a joint venture. Two of the vessels are expected to be delivered in 2014 and the third in 2015.

• One Offshore Oceanographic Science Vessel (OOSV) — to replace

On an average day in Canada, the Canadian Coast Guard: • saves eight lives; • assists 55 people in 19 search and rescue cases; • services 55 aids to navigation; • handles 1,547 marine radio contacts; • manages 2,325 commercial ship movements; • escorts four commercial ships through ice during ice season; • carries out 11 fisheries patrols; • supports three hydrographic missions; • supports eight scientific surveys; • deals with three reported pollution events; and • surveys five kilometres of navigation channel bottom.

June, 2011 BC Shipping News 21

CANADIAN COAST GUARD CCG’s largest science vessel, the CCGS Hudson, built in 1963. The vessel will have accommodations for approximately 59 (crew and scientists). It will be roughly 90 metres in length and capable of remaining at sea for several weeks without re-provisioning. STX Canada Marine Inc. of Vancouver, BC was awarded the design contract. Delivery of the vessel is planned for 2014.

• One Polar Icebreaker — the CCGS John G. Diefenbaker will be designed and built to enter into service in 2017. It will replace CCG’s largest and most capable heavy icebreaker, the CCGS Louis S. St-Laurent, which is nearing the end of its useful life and

is scheduled for decommissioning in 2017. The vessel will be 120 to 140 metres in length and carry a complement of 100 personnel and accommodation for 25 additional people. It will also be able to accommodate two helicopters when required and will have large cargo carrying capacity.

The icebreaker accounts for a total investment of approximately $750 million (out of the $1.4 billion budget for fleet renewal).

• One Air Cushion Vehicle (ACV) — the new vessel is already under construction in England and will replace the CCGS Penac at the CCG Sea Island Hovercraft Base in Richmond, BC. It

will be the same type of vessel but with modern improvements and will be used for ongoing search and rescue coverage and scientific research. “The vessel is very flexible and can be used to provide a number of functions,” noted Poruks. Delivery of the new vessel is expected for the fall of 2013.

Over the past several years, the Pacific Region CCG has managed five Vessel Life Extension Program major refits at a value of $75 million. This year, 2011-12 will be the first year in some time that will not include a major refit for the Pacific Region however an estimated $8 to $10 million will be spent on maintenance and upgrades.

Shore-based assets upgrade CCG nationally manages $1.6 billion in shore-based assets in support of the Aids to Navigation and Marine Communication and Traffic Services programs. These are managed jointly between CCG and DFO and together, they have a significant challenge ahead to catch up on upgrades including some search and rescue facilities that haven’t been updated since the buildings were erected — in some cases over 50 years ago. CCG and DFO together will also be giving consideration to consolidation of some sites. While no decisions have yet been taken, CCG and DFO will be looking at these kinds of issues and more as part of their Long-term Plan for Shorebased Infrastructure (a 15-year strategy for capital investments).

Crews load a long-leg buoy onto the deck of CCGS Sir Wilfrid Laurier.

22 BC Shipping News June, 2011

The Arctic As a result of climate change and a retreat of polar ice, the opening up of potential new year-round shipping routes is creating both opportunities and challenges. Illustrating her point, Poruks pointed out that during this past summer, two vessels — the cruise ship “Clipper”, which hit a rock shelf, and a tanker which was partially grounded in shallow Arctic water, required assistance. “Less than 10% of the area where the ice is melting is currently charted,”

CANADIAN COAST GUARD said Poruks. “Canadian Hydrographic Services is rushing to chart the routes to provide for safer passage.”

With the longer season and increased traffic, CCG has been working with the Department of National Defence and Transport Canada to address their role in Northern commerce, safety and security; sustainable resource development; protection of the Arctic ecosystems and habitats; and facilitation of greater economic prosperity for the North.

With discussions ongoing about sovereignty, oil and gas exploration and security, it is recognized the CCG will have a larger presence in the northern region although it is not yet known what that will look like. The Department of National Defence Arctic Offshore Patrol Ships Project will deliver the first vessel in 2015 but in the meantime, CCG is currently the main agency in the Arctic with six or seven ships present at any given time in the summer. There have been rumours that Coast Guard personnel will be armed in the Arctic. Poruks noted that there is no decision on this yet (for more details on this subject, please read the section on Maritime security below).

Environmental responses Environmental responses fall under multiple departments and are considered a national priority. The Auditor General recently undertook an audit of Canada’s oil spill response system which raised a number of questions and issues, including the need for CCG to do a national risk assessment of oil spills (the last risk assessment and response capacity study was done in 2000). The audit also found that the Coast Guard does not have a reliable system to track spills and as a result, cannot accurately determine the number of spills that occur each year, the size of those spills, their environmental impacts as well as how many spills required on-site responses.

The audit found that Transport Canada assesses private sector response organizations to ensure that they are ready to

respond to spills but that a similar process is needed to verify that the Coast Guard is ready to respond in the event of a large spill.

Further among the issues that CCG will be examining is their responsibility for international spills which could end up on Canadian shores. It would be likely that CCG would need to provide services in cases such as these.

Maritime security Since 2001, the Canadian Coast Guard has become an integral contributor to Canada’s maritime security system, working within a federal multi-agency environment. Over the next five years

and into the longer term, CCG will likely be expected to increase their support of maritime security activities. While the nine new mid-shore patrol vessels can be multi-tasked, their main function will be for enforcement, primarily for fisheries protection.

The Canadian Coast Guard is relied upon to provide on-water platforms, maritime expertise and vessel traffic system information in support of national security priorities. As the manager and operator of the Government of Canada’s civilian fleet, Coast Guard routinely contributes to security and enforcement activities, as seen with the joint RCMP/Coast Guard Marine Se-

The lightstation at Cape Mudge.

June, 2011 BC Shipping News 23

CANADIAN COAST GUARD curity Enforcement Team Program in the Great Lakes/St. Lawrence Seaway, as well as on an as-needed basis, such as during the Vancouver 2010 Winter Olympics and the G20 Summit in Toronto.

The Government will ensure that the Coast Guard can continue to contribute to saving lives, supporting maritime safety and security, and aiding marine commerce, as well as protecting the marine environment and asserting Canada’s Northern sovereignty. Coast Guard officials have been working closely with the Privy Council Office and members of Canada’s security and law enforcement community to assess the scope of these commitments, and the implications they may have on Coast Guard employees, and on the organization as a whole. This work has engaged Deputy Ministers and department heads from key partner agencies, including

24 BC Shipping News June, 2011

the RCMP, National Defence, Transport Canada, Public Safety Canada, the Canada Border Services Agency, and the Department of Foreign Affairs. Beyond acknowledging that a study is underway, Coast Guard officials could only speculate on possible outcomes as part of an overall national security framework.

One key initiative recently implemented that has assisted in security monitoring is the Long Range Identification and Tracking of ships (LRIT) Project. The system allows Marine Security Operations Centres’ partners to track Canadian-flagged vessels anywhere in the world; foreign vessels entering Canadian ports (anywhere up to 2,000 nautical miles from Canadian waters); and foreign vessels transitting through Canadian coastal waters (anywhere up to 1,000 nautical miles from Canadian shores, including the Arctic).

LRIT is part of the International Maritime Organization’s efforts to further enhance maritime security. CCG also continues to maintain and operate the shore-based component of the national Automatic Identification System (AIS) which, as part of the Marine Communication and Traffic Services (MCTS) program, tracks vessels within 40 to 50 nautical miles of shore.

E-navigation E- navigation refers to facilitating safe and secure navigation by making more effective use of hydrographic, meteorological and navigational information, raising awareness of the risks, and improving vessel traffic observation and management.

One example is the integration of operational data from the Fraser River such as the latest bathymetric information and water levels which are available to mariners electronically through the

CANADIAN COAST GUARD Canadian Coast Guard AVADEPTH website.

Coast Guard will be actively involved in the implementation of the e-navigation concept on Canadian waters and is committed to working collaboratively with all partners such as the International Maritime Organization, federal partners, ports and mariners on this evolving concept to ensure Canada remains at the forefront of its implementation while respecting each other’s roles and responsibilities.

Personnel recruitment The recruitment of ships officers and crew, radio operators, electronic technologists, engineers (sea-going and shore-based) is a significant priority for CCG as their workforce, like all sectors within Canada, faces an aging population. Poruks estimated that, with an average personnel age of 46 years, 31% of staff will be eligible to retire over the next few years. CCG’s recent recruitment campaign has resulted in an increase in applications to the Canadian Coast Guard College (CCGC), located in Sydney, Nova Scotia.

“We’ve gone from 80 applicants per year to 3,000,” said Poruks. “The advantage we have over other organizations trying to recruit marine personnel is that, from day one, a student at the college becomes part of the federal family.

Opportunities for training and working in areas such as science, environmental response and SAR begin immediately.

Students at the college receive a monthly stipend in addition to free tuition and books plus additional funding during at-sea training.” Poruks added that there are many opportunities currently within the Coast Guard — both shorebased and at-sea.

CCGC offers a number of courses — from a four-year program in Navigation and Marine Engineering, to a 23-week course for Marine Communications and Traffic Services Officers, to a three-year program for Marine Electronic Develop-

ment. A good resource to learn more about the opportunities at the CCGC can be found at: www.jobs.gc.ca (and select Canadian Coast Guard in the organization field) or on the Careers page of the CCG website: www.ccg-gcc.gc.ca.

be done but lack the resources to do it all.” Poruks points to the resourcefulness and efficiency of staff, as well as good working relationships with clients in helping to overcome a part of this challenge.

Challenges and Opportunities

Looking forward, CCG is working on a strategic plan that will provide operational guidance for the next 15 to 20 years. “E-navigation is becoming a significant technology in the international community and will be part of our strategic planning,” said Poruks. “Our on-board technology is mixed between old and new so we’re looking forward to a continued to plan to upgrade systems. With the rotation in the workforce that is anticipated over the next decade, we will be seeing younger and more technologically-savvy staff that will be keen to work with high-technology.” BCSN

Like all Canadian government departments, CCG is trying to do more with less funding. The challenges ahead for CCG include trying to maintain their infrastructure, especially as it gets older and more expensive in upkeep. “We are expected to be nimble and quick and to do that, we need to have the same technologies and equipment that are common with our clients,” said Poruks.

“The average life span of our assets is 30 years and many of these are being used into their 40th year so there is some frustration in that we see what needs to

June, 2011 BC Shipping News 25

CCG PACIFIC REGION FLEET GUIDE High Endurance Multi-Tasked Vessel — Light Ice-breaker CCGS Sir Wilfrid Laurier Home port: Victoria LOA: 83 metres Beam: 16.2 metres Draft: 6 metres Gross tonnage: 3,812.08 grt Crew/officer capacity: 26 Cruising speed: 11.5 knots Horsepower: 8,850hp or 6600KW Propulsion: Diesel Electric AC/AC (3x) Alco 251-16V Built: 1986 Builder: Canadian Shipbuilding and Engineering Ltd., Collingwood, ON Refits: 2009, Vancouver Dry Dock, North Vancouver, BC

Offshore Oceanographic Science Vessel CCGS John P. Tully Home port: Patricia Bay LOA: 68.9 metres Beam: 14 metres Draft: 4.5 metres Gross tonnage: 2,021 grt Crew/officer capacity: 20 Cruising speed: 10 knots Horsepower: 3,082hp or 2300KW Propulsion: Geared Diesel (2x) Deutz - 8 cyl Built: 1985 Builder: Bel-Air Shipyard, Vancouver, BC Refits: 2010, Victoria Shipyards, Victoria, BC

Offshore Fishery Research Vessel CCGS W.E. Ricker Home port: Patricia Bay LOA: 58 metres Beam: 9.5 metres Draft: 4.5 metres Gross tonnage: 1,104.5 grt Crew/officer capacity: 19 Cruising speed: 10 knots Horsepower: 2,503hp or 1867KW Propulsion: Geared Diesel (1x) Akasaka AH 40 - 6 cyl Built: 1978 Builder: Narasaki Senpakukogyo, Muroran Hoddaido, Japan Refits: 2010, Vancouver Dry Dock, North Vancouver, BC 26 BC Shipping News June, 2011

CCG PACIFIC REGION FLEET GUIDE Medium-endurance Multi-tasked Nav Aids Tender CCGS Bartlett Home port: Victoria LOA: 57.68 metres Beam: 12.98 metres Draft: 4.1 metres Gross tonnage: 1,317.42 grt Crew/officer capacity: 24 Cruising speed: 11.5 knots Horsepower: 1,050hp or 783KW Propulsion: Geared Diesel with fluid coupling — (2x) Mirrless National KLSDM6 Built: 1969 Builder: Marine Industries LtÊe, Sorel, QC Refits: 2010, Allied Shipbuilders, North Vancouver, BC

Mid-shore Patrol Vessels CCGS Tanu Home port: Patricia Bay LOA: 54.7 metres Beam: 9.75 metres Draft: 4.75 metres Gross tonnage: 753.7 grt Crew/officer capacity: 15 Cruising speed: 11 knots Horsepower: 2,624hp or 1956KW Propulsion: Geared Diesel (2x) Fairbanks Morse - 8 cyl Built: 1968 Builder: Yarrows Shipyard, Victoria, BC Refits: 2011, Allied Shipyard, North Vancouver, BC CCGS Gordon Reid Home port: Victoria LOA: 49.95 metres Beam: 11 metres Draft: 5.2 metres Gross tonnage: 863.32 grt Crew/officer capacity: 14 Cruising speed: 12 knots Horsepower: 4,908hp or 3672KW Propulsion: Geared Diesel (4x) Deutz SBV 9M628 - 6 cyl Built: 1990 Builder: Versatile Pacific Shipyards, Victoria, BC Refits: 2009, Point Hope Maritime, Victoria, BC June, 2011 BC Shipping News 27

CCG PACIFIC REGION FLEET GUIDE Hydrographic Survey Vessels CCGS Vector Home port: Patricia Bay LOA: 39.74 metres Beam: 9.46 metres Draft: 3.5 metres Gross tonnage: 515 grt Crew/officer capacity: 12 Cruising speed: 10 knots Horsepower: 825hp or 615KW Propulsion: Geared Diesel (1x) Caterpillar 3508 Built: 1967 Builder: Yarrows Shipyards, Victoria, BC Refits: 2009, Allied Shipbuilders, North Vancouver, BC

CCGS Otter Bay Home port: Victoria LOA: 13.4 metres Beam: 4.2 metres Draft: 1.2 metres Gross tonnage: 21.3 grt Crew/officer capacity: 2 Cruising speed: 10 knots Horsepower: 308hp or 230KW Propulsion: Geared Diesel (1x) Caterpillar 3208 Built: 1992 Builder: Les Bateaux de Mer LtĂŠe, Cocagne, NB

Intermediate Multi-tasked Patrol Vessel CCGS Arrow Post Home port: Prince Rupert LOA: 28.97 metres Beam: 8.8 metres Draft: 3.35 metres Gross tonnage: 228 grt Crew/officer capacity: 6 Cruising speed: 10.5 knots Horsepower: 1,280hp or 954KW Propulsion: Geared Diesel (1x) Caterpillar 3512 Built: 1992 Builder: Hike Metals & Shipbuilding, Wheatley, ON 28 BC Shipping News June, 2011

CCG PACIFIC REGION FLEET GUIDE Small Multi-tasked Patrol Vessels

CCGS Atlin Post Home port: Patricia Bay LOA: 19.8 metres Beam: 5.2 metres Draft: 1.5 metres Gross tonnage: 57 grt Crew/officer capacity: 4 Cruising speed: 12 knots Horsepower: 825 Propulsion: Geared Diesel (2x) Detroit V12-71 Turbocharged Built: 1975 Builder: Philbrooks Shipyards, Sidney, BC

CCGS Kitimat II Home port: Prince Rupert LOA: 19.8 metres Beam: 5.2 metres Draft: 1.5 metres Gross tonnage: 57 grt Crew/officer capacity: 4 Cruising speed: 12 knots Horsepower: 596 Propulsion: Geared Diesel (2x) Detroit V12-71 Built: 1974 Builder: Philbrooks Shipyards, Sidney, BC

CCGS Sooke Post Home port: Port Hardy LOA: 19.8 metres Beam: 5.2 metres Draft: 2 metres Gross tonnage: 58.61 grt Crew/officer capacity: 4 Cruising speed: 10.5 knots Horsepower: 596 Propulsion: Geared Diesel (2x) Detroit V12-71 Built: 1973 Builder: Philbrooks Shipyards, Sidney, BC

Air Cushioned Vehicles (Hovercrafts)

CCGS Penac Home port: Richmond LOA: 25.4 metres Beam: 11.2 metres Draft: 0 metres Gross tonnage: 45 grt Crew/officer capacity: 7

Cruising speed: 40 knots Horsepower: 3,580hp or 2670KW Propulsion: Diesel Turbo-prop Built: 1984 Builder: British Hovercraft, Cowes, England

CCGS Siyay Home port: Richmond LOA: 28.5 metres Beam: 12 metres Draft: 0 metres Gross tonnage: 71 grt Crew/officer capacity: 7

Maximum speed: 60 knots Horsepower: 3,580hp or 2670KW Propulsion: Diesel Turbo-prop (4x) Caterpillar 3412 Built: 1998 Builder: Hike Metals & Shipbuilding, Wheatley, ON June, 2011 BC Shipping News 29

CCG PACIFIC REGION FLEET GUIDE Near-shore Fishery Research Vessel CCGS Neocaligus Home port: Patricia Bay LOA: 25.0 metres Beam: 6.7 metres Draft: 4.5 metres Gross tonnage: 99 grt Crew/officer capacity: 7 Cruising speed: 9 knots Horsepower: 624hp Propulsion: Geared Diesel (1x) Caterpillar 3412 Built: 1990 Builder: Shore Boatbuilders, Richmond, BC

Inshore SAR Patrol Vessel CCGS Osprey/CCGS Mallard Home port: Kitsilano/In relief LOA: 12.4 metres Beam: 4.12 metres Draft: 1.3 metres Gross tonnage: 21 grt Crew/officer capacity: 3 Cruising speed: 26 knots Horsepower: 900hp Propulsion: Geared Diesel (2x) Caterpillar 3196 Built: 1986 Builder: Matsumoto Shipyard, North Vancouver, BC

PACIFIC REGION BY THE NUMBERS:

Fleet size: 30 (7 large, 5 medium, 16 small and 2 hovercraft) Small craft: 150 Helicopters: 5: Bell 212 helicopter (x2), MBB 105s (x3) Number of employees: 900 Aids to Navigation: 1,800 (with 27 staffed lightstations) Number of bases: 3 (Victoria, Prince Rupert, Sidney) Number of stations/facilities: 11 lifeboat, 1 hovercraft, 3 inshore rescue boat (seasonal), 5 MCTS centres, 54 communications and navigation towers, 4 Differential Global Positioning System (DGPS) sites.

Coastline protected: 27,000 km (including Yukon Territory) Ocean coverage: 560,000 square km Coast Guard Auxiliary: 1,060 volunteers serving 50 community-based stations with 76 vessels 30 BC Shipping News June, 2011

COMING SOON: 47FT MOTOR LIFEBOATS (PHASE III) CCGS Cape Dauphin/Cape Naden/Cape Palmerston LOA: 14.6 metres Beam: 4.27 metres Draft: 1.37 metres Gross tonnage: 33.8 grt Crew/officer capacity: 4 Cruising speed: 22 knots Horsepower: 908hp Propulsion: Geared Diesel (2x) Caterpillar C12 Delivery: June, 2011 Builder: Victoria Shipyards, Victoria, BC

CCG PACIFIC REGION FLEET GUIDE 47ft Motor Lifeboats (Phase I)*

CCGS Cape Calvert Home port: Sidney, BC LOA: 14.6 metres Beam: 4.27 metres Draft: 1.37 metres Gross tonnage: 33.8 grt Crew/officer capacity: 4 Cruising speed: 22 knots Horsepower: 900hp Propulsion: Geared Diesel (2x) Caterpillar 3196 Built: 1999 Builder: MIL/Metal Craft Marine, Kingston, ON

CCGS Cape St. James Home port: Sidney, BC LOA: 14.6 metres Beam: 4.27 metres Draft: 1.37 metres Gross tonnage: 33.8 grt Crew/officer capacity: 4 Cruising speed: 22 knots Horsepower: 900hp Propulsion: Geared Diesel (2x) Caterpillar 3196 Built: 1999 Builder: MIL/Metal Craft Marine, Kingston, ON

CCGS Cape Sutil Home port: Sidney, BC LOA: 14.6 metres Beam: 4.27 metres Draft: 1.37 metres Gross tonnage: 33.8 grt Crew/officer capacity: 4 Cruising speed: 22 knots Horsepower: 900hp Propulsion: Geared Diesel (2x) Caterpillar 3196 Built: 1999 Builder: MIL/Metal Craft Marine, Kingston, ON

47ft Motor Lifeboats (Phase II)*

CCGS Cape Ann Home port: Sidney, BC LOA: 14.6 metres Beam: 4.27 metres Draft: 1.37 metres Gross tonnage: 33.8 grt Crew/officer capacity: 4 Cruising speed: 22 knots Horsepower: 900hp Propulsion: Geared Diesel (2x) Caterpillar 3196 Built: 2003 - 2005 Builder: Victoria Shipyards, Victoria, BC

CCGS Cape Caution Home port: Sidney, BC

CCGS Cape Cockburn Home port: Sidney, BC

CCGS Cape Farewell Home port: Sidney, BC

CCGS Cape Kuper Home port: Sidney, BC

CCGS Cape McKay Home port: Sidney, BC

CCGS Cape Mudge Home port: Sidney, BC

*47FT Motor Lifeboats are rotated through the region to accommodate refits.

June, 2011 BC Shipping News 31

legal affairs

Some issues respecting stowaways and deserters: The Immigration and Refugee Protection Act and Regulations

By Peter Swanson A Vancouver Lawyer with Bernard & Partners

H

uman smuggling on-board ships has been in the spotlight recently since the arrival on our shores of the vessels SUN SEA and OCEAN LADY. Mass smuggling of people by ship is not new, but it certainly attracts the attention of the press when it occurs. These events, in part, prompted the Federal government to take steps to enhance marine security. Before the election was called, Bill C-49, an Act to amend the Immigration and Refugee Protection Act, the Balanced Refugee Reform Act, and the Marine Transportation Security Act had passed first reading in the House. Now that the election is over, it is quite probable that similar draft legislation will be reintroduced to Parliament to tighten up our laws in this area.

We will see whether this occurs.

It is worth noting that mass smuggling of people by ship is not the only way in which individuals can enter Canada in an irregular fashion by sea. Less sensational, but a more typical way in which irregular immigration occurs, is the frequent arrival into Canada of stowaways and deserters from ships.

32 BC Shipping News June, 2011

Given the frequency in which this form of irregular entry occurs by ship, it is not surprising to learn that Canada has, for some time, had laws designed

Historically, our laws have looked to impose the financial consequences for stowaways and deserters on shipowners or their local agents. to address the arrival of stowaways and deserters, and importantly, has laws designed to pass the cost of such entry onto others. Historically, our laws have looked to impose the financial consequences for stowaways and deserters on ship-owners or their local agents. The evolution of our laws in this area is interesting.

The Federal government, as distinct from provincial governments, is constitutionally responsible for immigration laws and laws relating to navigation and shipping. As such, Federal laws address the issue of illegal immigrants (deserters and stowaways) entering Canada

on-board ships. Typically, the Federal government looks to pass on the cost of illegal immigration to others wherever possible. To that end, the Federal government, through past and current immigration legislation, has looked to local ship agents in an attempt to recover removal costs when the shipowner is non-Canadian, or when any security posted by the ship-owner is insufficient.

Not surprisingly, the Federal government has worked to tighten the laws.

Back in the late 1980’s the law was fairly basic. For example, Part 5 of the then Immigration Act set out the obligations of a “transportation company”. A transportation company was essentially obliged to pay for the removal of a deserter or stowaway. Of course from a timing point of view, this rarely, if ever, happened before the vessel left Canadian waters and the deserter or stowaway exhausted their legal avenues — including a multitude of appeals.

Importantly, a “transportation company” was defined as follows: “transportation company” means a

legal affairs person or group of persons carrying or providing for the transportation of person,…and includes any agent thereof…”

There are two key features to this definition: 1) it includes “any agent thereof”; and 2) it talks of the transportation of people. In other words, it did not seem to capture vessels engaged in the transportation of cargo.

This point is important when one looks to the amendment to this definition which occurred in December, 1992. At that time the definition was altered to read as follows: “transportation company” (a) means a person or group of persons, including any agent thereof … transporting or providing for the transportation of person or goods by vehicle or otherwise …”

Quite clearly, the 1992 amendments were enacted to broaden the definition of “transportation company” to include vessel owners involved in the carriage of passengers or cargo. Importantly, both definitions contained a reference to “any agent thereof”.

The government, in that case, backed down...so the court never had to actually decide whether an agent of a charterer was responsible for...subsequent removal costs...

A number of cases went before the Federal Court of Canada to try to grapple with the meaning of these changes, and what precisely was meant by the reference to agent. While not determining the issue in any final way, Prothonotary Hargrave in the 1998 case of International Chartering Services Ltd. v. the Minister of Citizenship and Immigration raised serious questions about the government’s stance that an agent of a charterer came within either definition.

The government, in that case, backed down after the decision of Prothonotary Hargrave was given, so the court never had to actually decide whether an agent

of a charterer was responsible for the subsequent removal costs of a deserter or stowaway. Based on the court’s decision, however, it seemed doubtful the government was going to win the case.

Subsequently, in 2001 the scope of the definition of agent went before the Federal Court of Canada in the case of Greer Shipping Ltd. v. the Minster of Citizenship and Immigration. That case involved removal costs of a crew member that deserted from a ship prior to December, 1992. As such, the pre-December, 1992 definition of “transportation company” quoted above was in issue — not the

Despite the conclusions set out in the Colley decision, all is not well for agents in Canada. definition referring to the transportation of goods. At the initial hearing the Judge concluded that to be an agent within the meaning of the legislation required that a true legal agency relationship exists. The Judge found that such a relationship did exist. Importantly, she concluded that the definition of “transportation company” as existing prior to December, 1992 captured the agent of a vessel engaged exclusively in the carriage of cargo. Given the absence of the words “or goods” in the pre-1992 definition, this conclusion seemed incorrect, and, thus, was appealed to the Federal Court of Appeal. In the appeal, the Federal Court of Appeal concluded that since the vessel was only engaged in the carriage of cargo, not passengers, it did not come within the definition of “transportation company” as it existed at the time of illegal entry, i.e. pre-1992.

As such the Court of Appeal overturned the initial decision, creating in the process some renewed uncertainty about the meaning of “agent” as used in both the new and old provisions.

This uncertainty was finally addressed in the 2006 decision of Colley West Shipping Company Ltd. v. the Minis-

ter of Citizenship and Immigration. That case involved a stowaway who entered Canada onboard a vessel some 12 years earlier. While in Canada he committed

...for an agent to be an agent...there had to be a true legal agency — it was not enough that the agent merely did some work for the ship-owner. a multitude of crimes, but the appeal and removal process took more than a decade. What happened then was not unusual. Immigration Canada, realizing the security deposit they had obtained in 1994 was not sufficient, simply looked to the local agent to either arrange the removal of the stowaway from Canada or pay for his removal. The local agent, not surprisingly, considered it quite unfair and inappropriate for the government to make such a request so many years after the fact. After all, they had no long-term relationship with the ship-owner, they had only ever worked once for the ship-owner (and that was in 1994), and they had no real way of seeking or obtaining repayment from the ship-owner. Consequently, a court challenge was launched.

For the moment, however, our immigration officials seem to appreciate the unfairness in burdening local shipping agents...

Justice Phelan of the Federal Court heard the case and wrote a very interesting decision. He noted that the applicable definition was the one in force in 1994, not the current legislation.

He then concluded that for an agent to be an agent within the meaning of the 1994 law, there had to be a true legal agency — it was not enough that the agent merely did some work for the ship-owner. In Justice Phelan’s opinJune, 2011 BC Shipping News 33

legal affairs ion, more was required in order to be an “agent” as referred to in the definition of “transportation company.” Justice Phelan therefore concluded there was insufficient evidence to establish a true legal agency relationship. As a result the removal request was quashed, and Colley West Shipping Company was declared to have no liability in relation to the removal of the stowaway in issue.

Despite the conclusions set out in the Colley decision, all is not well for agents in Canada. As mentioned, the Colley case involved the law as it existed in 1994. That is not the law today. Again, recognizing problems with the scope of the legislation, the Federal government made some substantial changes to our immigration laws in 2001. Noteworthy from an agents perspective is the addition in the Immigration and Refugee Protection Act of the following definition of “agent”:

“agent” includes (a) for the purposes of section 148 of the Act, any person in Canada who provides services as a representative of a vehicle owner, a vehicle operator or a charterer; and (b) for the purposes of paragraph 148(1)(d) of the Act, in addition to the person referred to in paragraph (a), a travel agent, a charterer, and an operator or owner of a reservation system.

This is quite a broadly worded definition, and appears to cast a very wide net. It seems to clearly capture a charterer, operator or owner of a vessel, and may also include a general ship’s agent who provides services “as a representative” of a vessel owner, operator or charterer. Despite the broadly worded definition, there remains some uncertainty in this definition, and it is likely we will only ever have a true understanding of what (and who) it

captures once it is considered and addressed by our Federal Court.

For the moment, however, our immigration officials seem to appreciate the unfairness in burdening local shipping agents with the cost of removing a stowaway or deserter from Canada some years after the offending vessel’s departure. Now they tend to seek sufficient security to cover possible future removal costs, thereby minimizing the risk to local agents. Nevertheless, the risk remains, and only time will tell if our local agents will be forced through another round of court challenges.

Peter Swanson is a senior litigation lawyer with Bernard & Partners. His practice includes maritime cases relating to the carriage of goods, marine insurance, collision, salvage, ship source pollution, charter party disputes, immigration, regulatory issues and commercial matters. Peter can be reached at swanson@ bernardpartners.com

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Telephone:(604) 254-3763 - Toll Free:866-540-DOGS (3647) E-mail: admin@canadiank9.com 34 BC Shipping News June, 2011

HISTORY LESSON

A shipping disaster: the S.S. Pacific

By Carrie Schmidt

Librarian and Archivist, Vancouver Maritime Museum

W

hile mulling over ideas for this month’s issue, I became distracted by a recent reference inquiry: On Nov 4 1875 the S.S. Pacific sank with what was reported an approximate $100,000.00 in gold. Has anyone found her wreckage or reclaimed the lost gold?

The answer: no – at least, there is no official record of the gold being found.

But that is the short version. I became curious about the lost gold, and looked into it further, with the help of long-time library volunteer, Bob Cuthbert, and one of our trusted reference resources, Lewis & Dryden’s Marine History of the Pacific Northwest. This book was published in 1895, so it’s not exactly current, but “old” doesn’t mean “wrong”.

Approximately 250 – or 280, or more – people died when the Pacific collided with the ship Orpheus off Cape Flattery, in Washington, after leaving Victoria earlier in the day. Several bodies washed up on the beach in Victoria, including the body of Fanny Palmer – only a short distance from her home.

Only two people survived, and the passenger manifest was not exactly 100% accurate, according to Lewis & Dryden: “it is known that the purser booked

over twenty passengers whose names were not recorded on shore, and several others rushed on board a moment before she pulled out, some even climbing over the rail after the gangplank was hauled in.” There were also rumours of unaccounted-for miners being on board.

In fact, the whole disaster was rife with rumours that will never be proven – the Pacific was in poor condition and should never have left Victoria, the crew was “undisciplined and inexperienced”, the captain had been drinking heavily.

Then there was the problem with the Orpheus – the fact that she sailed away after the collision; her captain apparently unconcerned about the damage the Pacific had suffered.

The story of the S.S. Pacific is incredibly dramatic, and undeniably tragic.

What truly happened on that night is lost forever, but its remnants are part of what has kept the story alive 135 years later: the Lewis & Dryden publication lists a partial account of the freight on

board, which illustrates the diversity of items transported by sea: 280 tons of coal 18 tons of merchandise 10 tons of sundries 300 bales of hops 2000 sacks of oats 361 hides 10 cords of bolts 11 casks of furs 31 barrels of cranberries 2 cases of opium 6 horses 2 buggies $79, 220 in treasure Also left behind, aside from incomplete passenger lists and items listed as freight, was a small chunk of the Pacific, now housed in the Vancouver Maritime Museum. A piece of driftwood signed by one of the Pacific’s passengers, Sewell P. Moody, with the simple declaration: “All lost”.

S.S. Pacific June, 2011 BC Shipping News 35

PORTS & TERMINALS

36 BC Shipping News June, 2011

Photo courtesy of Neptune Bulk Terminals

PORTS & TERMINALS

Not now dear, I have a coal export headache

By Ray Dykes

A

mazing as it seems, all three Canadian West Coast coal export terminals are operating at capacity and are turning away customers.

In recent years, the three — Westshore Terminals and Neptune Bulk Terminals in Port Metro Vancouver, and Ridley Terminals Inc. in the Port of Prince Rupert — have been scrambling for clients. Not too many years ago in 2004, the Canadian Government-owned Ridley facility was up for sale and had no coal shipments at all.

But that was then. Today all three terminals are amid expansion plans that could add almost another 20 million tonnes to current capacity. And at least two deep-sea coal export terminals are being considered in Washington State as United States coal producers try to get a piece of the action.

The reason for the expansion excitement all along the west coast is world demand which is forcing prices up for both steelmaking (metallurgical) and energy (thermal) coals to record heights. Some deals for steelmaking coal have been as high as US$330 a tonne, well above the previous high of US$300 set in 2009.

Bullish market “I’ve been in the coal business for over 30 years and we are witnessing the most bullish coal market I can recall,” says Denis Horgan, Vice President & General

Manager of Westshore. “Most coal experts feel this cycle is going to be around for quite a while judging by the coal expansion taking place around the world.”

“I’ve been in the coal business for over 30 years and we are witnessing the most bullish coal market I can recall,” says Denis Horgan...

Partially to blame for the bullish market is Mother Nature. She played havoc with mines and rail links in Queensland, Australia, late last year and into 2011.

Flooding swamped many major mines and tore away track, taking millions of tonnes of coal off the world market.

QR National, part of Queensland‘s landscape for 145 years and the largest rail hauler by volume in all of Australia, recently revised upwards its total coal haul tonnage losses for the 2010-2011 fiscal from 25 million tonnes to 35 million tonnes. The railway blamed a slower than expected recovery from flooding.

Cyclone Yasi and continued unseasonable wet weather since haven’t helped either.

In 2010, the major coal producers such as BHP-Billiton and Teck switched from yearly coal price deals with the Japanese Steel Mills to quarterly and even monthly deals, something which

has buyers in a tizzy. But, world steel demand continues strong and the coal used in the blast furnaces of the steel producers needs to come from somewhere.

Enter Canada with its huge reserves of high quality steelmaking coal and coal mines bursting to get their product to the hungry world markets. US producers are also rediscovering the lucrative coal export market with an eye on more long-term sales contracts rather than sporadic entries in and out of the spot market.

Busiest facility The busiest coal export facility in all of North America, Westshore Terminals at Roberts Bank in Delta, completed a $47 million equipment upgrade in early 2010 with the commissioning of a fourth stacker-reclaimer, a new rotary dumper and high speed conveyor.

The three-year upgrade lifted the terminal’s nominal design capacity from 24 million tonnes to 29 million tonnes, but it wasn’t enough. De-bottlenecking studies since the commissioning found some choke points on site that were preventing the optimum flow of coal.

The terminal has since started engineering design work on a $53 million upgrade that will add three train indexers (rail car positioners for unloading), replace a single rotary dumper with a new twin set, smooth out coal flow choke June, 2011 BC Shipping News 37

PORTS & tERMINALS and making other equipment upgrades which should lift capacity to 12.5 million tonnes. Other infrastructure projects underway will help smooth the flow of coal by rail through the north shore terminal, which also handles potash exports. An expanded rail loop will allow Neptune to dump coal trains up to 8,500 feet long compared to about 7,000 feet today.

Pushing the upgrade expansion is Teck Coal, the second largest exporter of steelmaking coal in the world, which owns 46% of Neptune while potash mover Canpotex holds 51%. Teck is also the largest single customer for Westshore Terminals.

Photo courtesy of Westshore Terminals

Ridley

Busy day and night, West Coast coal terminals are seeing an unparalleled period of growth. points at conveyor transfer stations, and make improvements to its three older stacker-reclaimers.

The project should be completed in the first half of 2013 and will lift throughput capacity from 29 to 33 million tonnes.

The terminal, now in its 41st year, has moved over 650 million tonnes of coal since Day One, but never before at today’s heady prices for both steelmaking and energy coal. Westshore set a record at 24.7 million tonnes in 2010 and is bustling along toward another record year if all goes well in 2011. In April, the terminal shipped 2.4 million tonnes, one of its best months in at least a decade.

Best-worst year For Westshore and Horgan it was a strange old year, something he has called “the best-worst year on record.” The terminal set a record for coal 38 BC Shipping News June, 2011

throughput at 24.7 million tonnes and records for US coal shipments (5.6 million tonnes), and for coal shipped to China (4.2 million tonnes).

But, along the way the terminal suffered some rare labour shortages from May through September; a major cold snap slowed shipments through November; there was an explosion in the coal dryer at Greenhills, one of its main mine suppliers; and despite the commissioning of its major equipment upgrade it struggled to meet expected throughput targets because of choke points on site. A failure of its main shiploader in January this year (out of action for 12 days) also hampered the recovery as did a mine strike for several weeks at Elk View in the southeast.

Neptune In the Inner Harbour, Neptune Bulk Terminals is expanding by adding a new stacker-reclaimer, a new rail car indexer

Further up the coast at the Port of Prince Rupert, Ridley Terminals is also singing an expansion song. But, first it had to wait for the May election result as the federally-owned facility was trying to obtain borrowing powers from Ottawa for the first time.

Senior Manager Dennis Blake says the terminal now has that authority and “we are able to continue down the path of expansion.” Ridley has ambitious plans to double its annual capacity from 12 to 24 million tonnes over the next three to five years, says Blake.

Ridley had its best ever all-products year in 2010 at nine million tonnes.

Coal made up nearly seven million tonnes of that boosted by petroleum coke and wood pellet exports and the northern facility expects to continue to see big volumes.

Blake says the target for all exports this year is 12 million tonnes and coal is expected to make up the lion’s share of that at 11 million tonnes...and that would be the best ever.

US coal Ridley is a day closer to the buoyant Asian markets than are the Vancouver coal export terminals and this fact led to the signing earlier this year of a fiveyear deal to ship coal from the United States for the first time.

PORTS & TERMINALS The energy coal agreement with Arch Coal will mean a rail journey of about 3,500 kilometres just to get to tidewater as the coal is coming from the rich fields of the Powder River Basin in Montana and Wyoming. The long haul — perhaps one of the longest export rail journeys in the world — is offset by the terminal being that day closer to Asian buyers.

Arch Coal will ship up to two million tonnes of coal through Ridley this year and up to 2.5 million in 2012 and the remaining years of the deal through 2015.

Ridley has also signed smaller deals with two other US producers, Cloud Peak and Enserco for energy coal exports.

eventual proposal could be resubmitted for a far higher capacity, some critics say as high as 80 million tonnes a year, making it easily the largest bulk terminal in all of the Americas.

And at Cherry Point, not far from the Canadian border, SSA Marine wants to build a $500 million new bulk terminal which could handle as much as 24 million tonnes of coal by 2015, largely from the Powder River Basin.

Other western US coal from Colorado will be shipped through the Port of Houston for the first time as terminal giant Kinder Morgan has signed a deal to export 2.2 million tonnes a year. The

deal is being driven by “a tremendous increase in the demand for coal export,” says Richard Kinder, Chief Executive at Kinder Morgan.

With all three West Coast Canadian coal export terminals running at capacity, the Americans would dearly like to seize the opportunity and set up their own facilities to ship their own coal to the world...providing world prices stay high keeping the prospects attractive.

Ray Dykes is a former journalist who has worked his way around the world. He is now based in Nanaimo as a writer/photographer. He can be reached at prplus@ shaw.ca.

There has been concern by northeast coal producers that Ridley is committing up to 40% of its coal handling capacity to the US just at a time when BC’s mines are trying to boost their capacity.

Ridley’s major customer is Walter Energy (Western Coal) brought in by CN Rail from the northeast coal fields, which are attracting other new players.

Blake says Ridley has been negotiating with the Canadian producers and believes they have no need for concern.

There could be further local opportunities for coal tonnage. Teck Coal is amid a feasibility study on the idle Quintette Mine near Tumbler Ridge, which closed in 2000. Blake says Ridley is anticipating the mine will return to production, but there are no concrete dates as yet.

Meanwhile, south of the border coal export opportunities are big news. At Longview, Washington, a coal export terminal drew environmental fire but is pushing forward through the permitting process. Some 100 kilometres up the Columbia River, the joint venture proposal by Ambre Energy of Australia and Arch Coal known as Millennium Bulk Terminals could have a three berth coal export facility initially shipping five million tonnes a year. But, a site capacity analysis is underway and the

Photo courtesy of Westshore Terminals

New terminals

June, 2011 BC Shipping News 39

MARI-TECH PART ONE

20/20 — Looking to the future

T

he theme of this year’s MariTech conference — 20/20 Looking to the Future — held true to its promise of providing a vision of Canada’s marine industry in the year 2020.

And what an exciting future it is. From presentations on new technologies, to keynote speeches by notable Canadian marine engineers and senior government representatives, to networking and product education through exhibitions, Mari-Tech 2011 was a great success.

The Vancouver Island Branch of the Canadian Institute of Marine Engin-

eering is to be congratulated for not only developing an extremely relevant agenda, but for providing a well-organized, educational and fun event.

John Marrack was effective in his role as Mari-Tech Chair and Mark Collins (BC Ferries) was an excellent Master of Ceremonies. Bert Blattmann, exhibitor coordinator, and all involved in the organization of Mari-Tech 2011 are to be commended for their efforts.

The following summary of presentations is Part One of a two-part series highlighting the trends within the ship-

ping industry that will shape the next decade. The information provided at the conference was so relevant to this magazine, we made the decision to split this article into two segments to give it the attention and space it deserves. The full agenda and PowerPoint presentations are available at: www.cimare.org/maritech. Please note that two presentations — the Merus Ring and Corvus lithium battery technology are featured in the Technology section of this issue of BC Shipping News. Part Two of this summary will be featured in our July issue.

Opening address: Vice Admiral (retired) Peter Cairns

Honourary President Canadian Institute of Marine Engineering, President Shipbuilding Association of Canada  political unrest in the world and the current instability in the Middle East.

With that context, Cairns provided an update on the status of some of the key Canadian Government projects and the potential of growth for the Canadian shipbuilding industry.

Of the solicitation of interest, five shipyards responded:

National Shipbuilding Procurement Strategy (NSPS) “You know it a big deal when you get three federal ministers and one provincial minister to show up at the media announcement,” said Cairns, referring to the June, 2010 announcement of the NSPS.

 Upper Lakes Marine & Industrial – it’s not known if they will submit a bid as there is a logistics problem with getting ships through the Welland canal;

 Seaspan Marine Corporation;  Davie Yards (who, in order to prove their solvency, may include Italian shipbuilders Fincantierri as an investor);

 Irving Shipbuilding Corporation; and  Peter Kiewet who has already withdrawn.

Photo credit: Philip Dauphinee

At the end of his presentation, Vice Admiral Cairns summed up his view that the domestic outlook for stability and predictability for shipbuilders and the industrial marine industry has never been better in Canada. To get to that conclusion, Cairns started with a background of contributing factors including:  the Canadian Navy’s role in responding to natural disasters around the world;  the recession and dire financial straits of countries like the UK, Greece, Spain, Portugal, Italy and most especially, the US; and

Organizing committee members Tony Cond, David Mietla, and Alicja Rudzki.

40 BC Shipping News June, 2011

Mari-Tech 2011 Chair John Marrack welcomes attendees to the opening session of Mari-Tech 2011.

MARI-TECH PART ONE Opening address...continued.

The RFP has been issued and a response is due by July, 2011. Two shipyards will be selected later this year — one will be awarded the contract for combatant ships and the other for noncombatant ships. Speculation has also been raised to the prospect that one yard will be on the West Coast and one on the East Coast. This is in fact just speculation. Cairns noted that the selection will be based on the “best value to Canada” rather than the “lowest cost compliant bid” that is normally used.

...free trade between the European Union and Canada...While touted to be a positive step for Canada as a whole it is unlikely to be as positive for Canada’s shipbuilding industry.

 The Frigate Life Extension Program (FELEX) — is underway. The first ship entered its mid-life refit in October, 2010 with the final ship upgrade completed by 2017.

Cairns raised additional issues that would impact — some positively, some negatively — on the shipbuilding industry. He noted that environmental pressures will only get worse in terms of restrictions and regulations and will equate to higher costs for the industry.

With the exception of Ferries, Cairns pointed out that the Shipbuilding Association of Canada supported the removal of the 25% import duty that was levied on the import of large ships, tankers and ferries. He also commented that free trade between the European Union and Canada will have a significant affect on Canada’s shipbuilding industry. While touted to be a positive step for Canada as a whole it is unlikely to be as positive for Canada’s shipbuilding industry.

One significant question that was waiting to be answered was the fallout from the federal election. With a majority government, Cairns felt the Conservative Party will continue to be committed to the investment in the Navy and Coast Guard however the national deficit needed to be addressed and delaying the project schedule may be a money saving strategy option up for consideration.

Photo credit: www.dieselduck.net

Smaller shipyards Smaller shipyards will have a role to play in building and providing support for approximately 100 other vessels.

While the two successful bidders for the NSPS are excluded from bidding on the smaller vessels, they will be able to bid on repair work. In addition, smaller shipyards are expected to receive subcontracts from the two successful bidding shipyards. Cairns felt that a policy

was needed to ensure the inclusion of smaller shipyards so that repair work is spread throughout the industry.

Cairns provided status reports on additional projects including:  Arctic Offshore Patrol Ship (AOPS) — While ship requirements will be much scaled down from the original concept, the AOPS should be in contract by the end of 2012.  Joint Support Ship (JSS) — The federal government opened the design to international competition. Three options are being considered — a German-designed Berlin Class, a Spanish-designed Cantabria Class, and an in-house Canadian design.

Cairns strongly supports a Canadian design option.  Canada Surface Combatant (CSC) — Cairns noted that the project to replace Canada Patrol Frigates (CPF) and 280s was valued at a cost of $26 billion. While the project is expected to last until 2020, this is one project the Navy would speed up if they could.  Arctic Icebreaker is in the design phase and is expected to enter into service by 2017.  Offshore Fisheries Science Vessel (OFSV) — design was awarded to the team of Robert Allan & Alion Science.  Mid-Shore Patrol Vessels (MSVP) — are under construction at Irving Shipbuilding in Halifax. All nine vessels are expected to be delivered between 2011 and 2013.

Master of Ceremonies Mark Collins presents a speaker’s gift to Brian Hogan, Canadian Coast Guard.

National Chair Jeffrey Smith addresses attendees at CIMarE’s Annual General Meeting.

June, 2011 BC Shipping News 41

MARI-TECH PART ONE Strategic Science and Technology for Canada’s Future Navies Dr. Jack Cornett, Defence Research and Development Canada technology advances; and building multidisciplinary perspectives on complex problems.  As an open innovator — helping provide a two-way window between industry and DND/CF to connect needs and capabilities; facilitating industryto-industry linkages during research and development phases; and helping connect innovation system players.

In providing an update on the status of new ship builds and refit projects underway, Cornett focussed on the upgrades and integration of new technologies.  The modernization of the Halifax Class frigates will include a combat systems integration (CSI) during the refit. Upgraded sensors, trainers, command and control stations, and ops room and compartments are all part of the planned modernization.  The Arctic Offshore Patrol Ship (AOPS) is a Polar Class 5 (capable of breaking one metre first year ice with old ice inclusions), measuring 97 metres in length, 19 metres wide and a draft of 5.7 metres. It will have an open water speed of 17 knots and a range of at least 6,800 nautical miles at 14 knots. The ship will have a state-ofthe-art command management system, full propulsion redundancy and a gun armament for sovereignty en-

forcement. It will also have aviation facilities for commercial and military helicopters, small landing craft and rugged boats for boarding and rescue operations and cargo handling for up to six containers. The AOPS will accommodate 85 personnel — 45 crew and up to 40 mission personnel.  The Joint Supply Ship (JSS) procurement was effectively terminated in 2008 when Public Works and Government Services Canada announced that both bidders were non-compliant with the mandatory requirement to construct three JSS for $1.575 billion. However, the project remains active under the existing project definition funding to redevelop the procurement plan using the National Shipbuilding Procurement Strategy (NSPS). [editor’s note: As per Peter Cairns’ presentation, the federal government has opened the bidding to international firms.] The JSS will provide logistics support to sustain operations of Canadian or allied ships; transport equipment, supplies and personnel in support of contingency, humanitarian or joint operations; and operate in support of Canadian Forces or multi-national operations being conducted ashore.

Photo credit: John Marrack

Dr. Cornett provided a unique insight into how Defence, Research and Development Canada (DRDC) contributes to the strategic roles for science and technology in the development of Canada’s Navy. Of the new ships that the government has committed to build for the Navy, Dr. Cornett explained that DRDC plays four key roles in enhancing capabilities in technology for the new ships:  As an advisor — providing evidencebased science and technology advice to the Department of National Defence (DND) and Canadian Forces; exercising constructive challenges of decision options; and providing credible insights into defence and security science and technology trends, threats and opportunities.  As a risk mitigator — providing decision-makers with foresight into possible futures; bringing science and technology to bear in identifying investment plan options and new opportunities; and synchronizing science and technology results for stakeholder success.  As a knowledge integrator — generating, accessing and applying validated evidence-based knowledge for defence and security priorities; maximizing positive impacts and mitigating negative impacts of science and

Vice Admiral (retired) Peter Cairns’ opening address provided insight into Canada’s shipbuilding industry.

42 BC Shipping News June, 2011

Master of Ceremonies Mark Collins presents a speaker gift to Dr. Dirk Thum, MAN Diesel & Turbo.

MARI-TECH PART ONE Strategic Science... continued.

Brian Hogan, Canadian Coast Guard and Lee Grace, STX Canada Marine Inc. For its latest procurement exercise, cept design and relying on the experithe Canadian Coast Guard established a ence of STX staff and CCG combined, collaborative process with STX Canada reducing the vessel’s length, beam and Marine that has not only sped up the power provided a solution that was suitdesign phase but has also allowed for a able for all. more effective design that meets with Benefits of collaborative design in CCG’s needs. this project were many. Through the Hogan and Grace provided a compara- development stage, STX gained a clear tive presentation that pitted the trad- understanding of CCG’s design intent itional model of vessel procurement with and from CCG’s perspective, the collabthis new collaborative model, noting oration allowed for a greater in-house that this new model allowed for CCG in- knowledge base of the vessel specificavolvement throughout the entire design tions, allowing them to answer quesprocess, increasing communications and tions directly from the builder. Time effectively resulting in a better product and cost saving factors were not the more in line with CCG’s needs. From a only benefits of the collaborative prodesign point-of-view, Grace noted that cess — STX and CCG developed a level timelines have become more efficient of trust and communication that now with a significant reduction in down guides their relationship. Through the time while staff waited for responses, concept design phase, a mere one week or worse, would lose valuable time when was added to the contract length.

The OOSV is now well into the prefeedback was late and required changes liminary design phase. Once the work past the expected timeline.

Hogan and Grace explained the new on refining the design has been comapproach by using the Ocean Offshore pleted, CCG expects to deliver construcScience Vessel (OOSV) as an example. tion drawings and specifications to the There were clear cost constraints which shipbuilder.

Both Hogan and Grace agreed that, made achieving all of the elements of the CCG in-house concept design dif- without a collaborative approach to the ficult. When the proposed budget for problems encountered, delays would STX’s developed design came in, it was have been far longer and more costly too high but through reworking the con- with a less satisfactory outcome.

Photo credit: John Marrack

 The Canada Surface Combatant Project (CSC) is intended to replace the Forces’ core equipment fleets, including destroyers and frigates. Cornett described the project as “the biggest on the block and the cornerstone of the NSPS”. Currently, the project is undergoing reviews to provide for cost/capability trade-off objective evidence; identification and evaluation of technically feasible and economically viable ship concepts; refinement of the requirements document with better known impact on cost-capability; and reduction of overall project execution risk.

On the horizon, Dr. Cornett spoke of the potential for autonomous vehicles that could operate under ice for extended periods of time. He also indicated that the US is putting a huge push on the development of electric weapons.

The strategic scientific opportunities that could be realized through pursuit of science and technology included autonomy, new materials, and electro-optics.

In summing up, Cornett emphasized the key to major shipbuilding projects over the next decade would be flexibility in design. He noted that there were lots of opportunities for joint DRDC/ industry partnerships. Of the full NSPS budget, $50 million has been allocated to research and development.

Canadian Coast Guard Vessel Procurement – Collaboration on Design

Jack Cornett, Defence Research & Development Canada receiving a speaker gift from Mark Collins.

Attendees were treated to wine tasting and dinner at the Church and State Winery in Brentwood Bay. June, 2011 BC Shipping News 43

MARI-TECH PART ONE The Sulphur Challenge – Technology for Energy Dr. Dirk Thum, MAN Diesel & Turbo Ltd. With two Emission Control Areas (ECA) already in place (Baltic Sea and North Sea) and the North American ECA enforceable by August, 2012, Dr. Thum’s presentation focussed on technology solutions that would lower sulphur emissions enough to meet incoming Tier III requirements in 2016 established by the (IMO). Following a background briefing of the International Maritime Organization’s (IMO) implementation schedule (see side-box for summary), Dr. Thum split his presentation equally between consideration of SOx reduction technologies and gaseous fuels.

In addressing countermeasures for SOx and NOx, Dr. Thum described a dual fuel technology consisting of Marine Gas Oil (MGO), a Dry Exhaust Gas Cleaning System (EGCS) and Wet Scrubber for SOx reduction, and Selective Catalytic Reduction (SCR) and Exhaust Gas Recirculation (EGR) for NOx reduction. To outline the benefits and challenges of each technology, Dr. Thum provided the following observations: - Marine Gas Oil is a proven technique which requires no additional space, fuel heating or reduced treatment. It provides for clean exhaust gas with

less deposits and better heat recovery.

The challenge however is the cost.

- Wet Scrubber technology will reduce SOx by as much as 90 to 95% while still using heavy fuel oil and there are several systems already on the market however there are no benefits regarding heat recovery and the equipment is bulky at the funnel end.

- Dry Exhaust Gas Cleaning System benefits include the continued use of heavy fuel oil, no wash water treatment required, low energy requirements and can be used in combination with SCR technology. Challenges include dealing with bulky equipment, having enough storage capacity for the absorbent and adequate infrastructure.

Another solution to reduce NOx and SOx emissions that Dr. Thum covered in his presentation was the use of Liquid Nitrogen Gas (LNG). Benefits included no additional measures needed to reach NOx and SOx limits; reasonable fuel price; and the possibility of excessive heat recovery. However, challenges were seen to be the installation of storage equipment; regulations that are not yet settled; and a lack of infrastructure and refuelling facilities. Dr. Thum reviewed and provided comparisons in detail on the available engines operating with

gas as fuel, including both pure gas engines and dual-fuel engines. One of the main benefits seen with the dual fuel engine is that they are based on wellestablished diesel engines, including the same speeds and cylinder numbers that are available for the original diesel engine, making retrofits possible.

MARPOL Annex VI standards/IMO implementation schedule: Reductions in nitrogen oxide (NOx) • Global NOx limits: Previously 17.0 g/ kWh, increased for Tier II marine engines installed on a ship constructed on or after January 1, 2011 to 14.4 g/kWh. • ECA NOx limits: For Tier III engines installed on ships constructed on or after January 1, 2016 to 3.4 g/kWh. Reductions in sulphur oxide (SOx) • Global SOx limits: • Currently: 4.5% • From 2012 onward: 3.5% • From 2020 if feasible, otherwise from 2025: 0.5% • ECA SOx limits • Previously: 1.5% • From July 2010: 1.0% • From 2015: 0.1%

Canadian Institute of Marine Engineering Branch directory CIMarE Branches across Canada hold regular meetings and presentations of technical papers on a regular basis.

We strongly encourage you to contact the branch nearest you to learn more about membership opportunities.

Vancouver: www.cimarevancouver.ca Vancouver Island: www.cimare.org/branches/vanisle/main.html Great Lakes: www.cimare.org/branches/greatlakes/main.html Ottawa: www.cimare.org/branches/ottawa/main.html Atlantic: www.cimare.org/branches/atlantic/main.html St. Lawrence: www.cimare.org/branches/stlawrence/main.html Newfoundland: www.cimare.org/branches/newfoundland/main.html 44 BC Shipping News June, 2011

MARI-TECH PART ONE Emerging roles and increasing responsibilities of classification societies Jeffrey J. Smith, CIMarE National Council Chair

Starting with the history of the creation and rationale behind classification societies, Smith went back to the late 1600s and Edward Lloyd’s coffee house in London. Captains of industry would meet and share intelligence and it was here that the notion of classification and insurance underwriting first arose from being anecdotal to a uniquely British construct. By 1828, Bureau Veritas was created and in 1834, Lloyd’s Registry was published for the first time.

Through the latter half of the 1800s, three more class societies were created and in 1876, Samuel Plimsoll succeeded in his campaign to amend the British Merchant Shipping Act to require load markings on ships. By 1900, there were five classification societies along with the early origins of one non-European society — Japan’s “ClassNK”.

It wasn’t until the 1912 sinking of the Titanic that the disconnect between value of Safety of Life at Sea and international standards was reconciled but it would take until 1929/1930, when the SOLAS II and Load Line Convention conferences were held before there was a truly transnational convention established to act as the catalyst for global regulation in the shipbuilding industry.

Over the next 70 years — through the

establishment of the United Nations International Maritime Organization (out of the original Inter-Governmental Maritime Consultative Organization); the creation of the International Association of Classification Societies (IACS); the SOLAS IV Conference; and

...increasingly, governments [are] coming to rely on classification societies as replacements and substitutes for flag state and port state regulations. the International Safety Management (ISM) Code — classification societies matured into their current role within the shipbuilding industry of the 20th Century characterized by an increased complexity of steel hull construction; increased ship construction and maritime trade; the start of transnational industry regulation; and the emergence of open flag registers.

Having set the stage for a prediction into the future role of classification societies, Mr. Smith provided evidence that current trends suggested a more central and regulating role for this sector in the marine industry. He noted that increasingly, governments were coming to rely on classification societies as replacements and substitutes for flag state and port state regulations. To prove the point, Smith noted that there are five societies within Canada that are about to receive a mandate via Transport Canada to regulate and provide approvals and ship inspections.

Smith predicts that in the coming years, “second tier” non-IACS member classification societies will be reduced in numbers as more and more insurers demand better regulatory compliance of vessels, shifting to those members of IACS who provide a higher level of competency. He also expects the con-

tinued diversification and expansion of business lines of classification societies across technical standards, safety systems and management consulting.

Already, naval and government construction increasingly involves classification societies in concept design and construction oversight. Another area of business development will be in the implementation of the IMO’s Polar Code.

Additional factors that will shape the future development of classification societies include the increased exposure to legal liability as their responsibilities expand, especially in areas of design and technical consulting; and increased competition among classification societies as the ability of ship-owners to change between societies becomes easier in response to market selection.

Mr. Smith summed up his presentation by noting the following: “The emerging and primary governing-regulatory role of classification societies, in tandem with the coordinating work of the IMO, will mark a retreat of government from the marine industry. The challenge in Canada will be to recognize that phenomenon and adapt to it.” BCSN

Photo credit: John Marrack

Mr. Smith’s PowerPoint presentation and technical paper, both available at: www.cimare.org/maritech, provide much more detail than space here allows. The technical paper is definitely worth a read.

The May issue of BC Shipping News featured a full length article from Jeffrey Smith on the role of the International Maritime Organization in Canada’s shipbuilding industry. His presentation at Mari-Tech 2011 — On a flood tide: Classification societies and Canada’s marine industry in 2020 — continued this theme of international regulation and coordination of standards on a global scale.

Jeffrey Smith, National Council Chair of CIMarE, presents his views on the future of classification societies.

June, 2011 BC Shipping News 45

The indo-pacific ocean

Canada looks West to the new pond: The Indo-Pacific Ocean

By K. Joseph Spears

A

s a maritime nation and middle power, Canada is dependent on international trade carried by international shipping for its economic prosperity. The Atlantic Ocean, often referred to as “the pond”, was a key strategic region and battle space during two World Wars and the Cold War. As a founding member of the North Atlantic Treaty Organization (NATO) — both a defence and political organization — Canada has played a key leadership role in the Atlantic pond. Melting sea-ice has recently caused Canada to “look north” to the Arctic Ocean Basin and the security and sovereignty challenges that are presented by a rapidly changing Arctic.

Most analysts agree that the Atlantic has been the primary focus of Canada’s Navy — but that is changing. During the 21st century, Canada’s Navy will need to assume a growing role in the Indo-Pacific Ocean Basin. Some have quipped that the US Navy has already become a two ocean Navy — but its focus is on the Indian and Pacific Oceans. For example, most of the countries in the region are maintaining and operating growing conventional submarine fleets. The US Navy now maintains 60% of its submarine fleet in the region. In fact, these 46 BC Shipping News June, 2011

waters are now considered a “submarine rich environment”. One commentator called the region a tough neighborhood — it is, and will continue to be in the coming decades.

The Indo-Pacific’s growing economies and resulting demand for resources will continue to provide a ready market for Canadian exports well into the future.

Canada needs to look and focus westward as the 21st century unfolds. Trade across the Indo-Pacific will experience significant growth in this century.

China and India have massive populations of 1.34 billion and 1.18 billion respectively out of a global total of 6.9 billion. To put that into perspective, Canada’s population is only 34 million.

The Indo-Pacific’s growing economies and resulting demand for resources will continue to provide a ready market for Canadian exports well into the future.

Canada has recognized the importance of this market and taken active steps to streamline at all levels of government in an effort to improve its port and inter-

connected rail and road infrastructure through the Asia-Pacific Gateway and Corridor Initiative. This, of course, is aimed at becoming more competitive in the Asia-Pacific region. Over $9 billion of federal and stakeholder funds have been directed to these infrastructure projects and is seen as an important investment in Canada’s future economic prosperity.

There is much discussion about the proposed $5.5 billion Enbridge Northern Gateway Project, which will consist of an oil export pipeline and a condensate import pipeline from Edmonton, Alberta to Kitimat, British Columbia.

This project will provide an ocean facility to allow Alberta’s tar sand oil to be sold to growing markets in China, India, and elsewhere. China continues to purchase interests in Canadian companies engaged in natural resources.

Kinder Morgan’s TransMountain pipeline, which stretches 1,100 kilometres from Edmonton across the Rocky Mountains to Vancouver, has a 300,000 daily barrel capacity; it provides energy to Vancouver and the Pacific Northwest.

Some reports calculate that this pipeline is already overscribed by 33% and unable to handle the volume of growing

The indo-pacific ocean oil exports from the tar sands. We are seeing increasing numbers of oil tankers, presently 65 (a five-fold increase is expected — up to 300 tankers yearly), moving bulk oil exports through the Port of Vancouver to foreign markets using the existing and a proposed upgraded TransMountain pipeline. Traditionally, tar sand oil has moved to the sole American market via pipelines.

growing region with many outstanding maritime issues and unresolved maritime boundaries.

Shipping is a key component of globalization. Over $110 billion of trade goods are carried by sea to and from Canada.

It is estimated that 80% of the world’s global trade is carried by some 50,000 cargo vessels. Canada has just over 150 vessels engaged in some form of international maritime activity. Much of Strengthening our Navy is an important Canada’s exports are sold on an FOB basis (the buyer is responsible for shipand critical component to Canada’s ping) from Canadian ports, but this sovereignty infrastructure as a mari- does not diminish the fact that these exports are critical to our economic prosperity even if they are carried in time and exporting nation... ­foreign-flagged vessels. If there are imStrengthening our Navy is an import- pediments to global shipping, such as ant and critical component to Canada’s piracy in critical choke points, Canada’s sovereignty infrastructure as a maritime trade will, of course, suffer as a result. and exporting nation engaged in interWhen it comes to the Indo-Pacific, national trade. Canada’s long history of while Canada participates in the Comtrade with China can be traced back to bined Task Force 150 (CTF-150) — a the silk trade and Canadian Pacific Emp- multinational coalition naval task force ress liners that plied the Pacific with a that operates from the Horn of Africa land bridge by rail across Canada and region to the Indian Ocean — we need then on to Europe that dates from the an independent presence early and end of the 19th century. However, to- often at the national and sub-national day, trade with the Indo-Pacific region level. A naval relationship is a good — currently estimated at $128 billion starting point for Canada and can pro— will continue to grow rapidly as the ject a Canadian presence in a very cost Indo-Pacific economies mature. It is a effective and efficient manner, leading

to prompt results — especially when integrated with air power which allows a great deal of flexibility for our national interests. For example, Victoria’s Viking

Relationships are key to business success, and the same holds internationally between nation states. The situation with navies is no different.

Air is selling its new Twin Otter Series 400 as maritime surveillance aircraft to Vietnam. A prime example is seen with the international naval response to piracy in the waters around the Horn of Africa.

Relationships are key to business success, and the same holds internationally between nation states. The situation with navies is no different. A consistent and dependable presence can build longterm relationships between the navies of like-minded nations. One example is the US Navy’s Pacfic Partnership 2011.

Sponsored by the Commander US Pacific Fleet (CINCPac), the underlying goal of this event is to build strong relationships through humanitarian and civic assistance being provided by partner nations. The Canadian Navy participates in this unique partnership, which seeks

Members of HMCS Regina’s naval boarding party make their way in a Rigid Hull Inflatable Boat, to a suspect vessel in the Gulf of Oman.

Photo credit: Mcpl Frank Hudec

June, 2011 BC Shipping News 47

The indo-pacific ocean to develop working relationships across a wide range of activities, including humanitarian aid and civic assistance.

Naval vessels provide a unique opportunity to show the Canadian flag in a non-threatening and internationally acceptable manner.

Photo credit: Sgt Edward Whitmore

The present Commander of MARPAC, Rear-Admiral Nigel Greenwood continues to build on the groundwork laid down by a series of former insightful MARPAC commanders, retired Rear-Admirals Tyrone Pile and Roger Girouard, who have worked hard to build Canada’s presence in the Pacific with strong staff support through MARPAC’s Office of the Asia-Pacific Advisor, headed by Dr. James Boutilier who has pioneered many of these relationships. Our Canadian Navy’s leadership has long recognized that Canada’s interests are linked to trade and longstanding relationships — by building trust and frienships between other navies through exercises, port visits and exchanges — is vital to international security and pays big dividends in the long-term.

Naval vessels provide a unique opportunity to show the Canadian flag

in a non-threatening and internationally acceptable manner. For many years, the MARPAC Commander (head of the Navy on the West Coast) has sponsored Maritime Security conferences which have been attended by hundreds of government and navy delegates from around the Indo-Pacific Basin. The goodwill and personal relationships developed at such events put Canada in good stead with other nations, but these types of events require both continuous and sustained funding and governmental and political support. The return on investment is incalculable when working together to solve international challenges. They also open the door for Canadian industries for various maritime foreign government market opportunities.

Security challenges are mounting in the Indo-Pacific region. The recent press reports that MARPAC headquarters would be moved to Halifax met with swift resistance, both in the press and from the public. Prime Minister Harper advised in a subsequent press release that no such move would take place. Given the importance of the Indo-Pacific Basin, this was the right decision. The fact that such a move was contemplated highlights the need for Canada to look more closely at the endgame in the Indo-Pacific and the world’s largest growing economy and export markets. Canada as a nation, needs

On April 5th 2009, Her Majesty’s Canadian Ship (HMCS) Winnipeg launched a rigid hulled inflatable boat (RHIB) to investigate a skiff loaded with people in the Gulf of Aden. After confirming that the individuals onboard were not in distress, the Naval Boarding Party provided humanitarian assistance in the form of water and fruits.

48 BC Shipping News June, 2011

to take an integrated holistic approach to this region. Strengthening its own national and naval presence in that region would benefit Canada for a variety of security, defence and trade and commerical reasons. In simple terms it is good for Canada.

Our Navy can be a key component of Canada’s foreign and international trade policy, integrating into a broader and more holistic approach to Canada’s foreign policy. Expanding the federal government’s Asia-Pacific Gateway and Corridor Initative and giving it a more external outlook to include defence and foreign policy would be an effective option to consider and build on the solid work that has been done to date on expanding Canada’s international trade.

The Australian SeaPower Centre, a component of the Royal Australian Navy, is a world leader in naval thinking and has a good working relationship with Dalhousie’s Centre for Foreign Policy Studies (CFPS). Australia takes a more holistic approach to its maritime affairs and, with its strong export base of bulk natural resources, clearly recognizes the importance of shipping trade to its economic prosperity. It was not always so. In 1979, the problem was recognized and the Australian Association of Maritime Affairs was set up to change this thinking. Since that time and working with public and private interests, Australia has developed a comprehensive approach to maritime issues, and takes a multi-disciplinary approach to the subject. It now has a comprehensive maritime outlook with strong links to its Navy. As a nation, it has developed a strong and clear policy on maritime issues and the importance of sea-borne trade.

Canada can learn from the Australian example.

There are five policy elements (described as lenses) to the Asia-Pacific Gateway and Corridor Initiative.

They set out the framework for a more productive and competitive

Photo credit: Sergeant Kevin MacAulay, Canadian Forces Combat Camera

The indo-pacific ocean

A CH-124 Sea King Helicopter provides air support to Her Majesty’s Canadian Ship (HMCS) Fredericton’s Naval Boarding Party during the conduct of a routine operation in the Gulf of Aden on December 1, 2009. transportation system that the Government of Canada supports.

LENS 1: International Commerce Strategy LENS 2: Volumes and Values of National Significance LENS 3: Future Patterns in Global Trade and Transportation LENS 4: Potential Scope of Capacity and Policy Measures LENS 5: Federal Role and Effective Partnerships These work in tandem with the bricks and mortar — the transportation infrastructure projects. This Initiative can serve as a starting point for discussion on an increasing Canadian naval presence which is linked to trade and Canada’s economic prosperity. Relevant to this discussion is the third lens of the Initiative which requires a forward looking approach. Gateway and corridor strategies must address major trends in international transportation. Longterm planning is essential, but must be based on empirical evidence and analysis, not just optimism.

In the region, defence and ocean issues are uncertain. We need to apply

the same rigour and policy approach to our defence policy when it comes to the Indo-Pacific. This will require Canada to become more active in the region.

It will also require our Navy to have a robust combat capability, as Canadian ships will be in these waters doing important and necessary work for our nation’s interests in the short, medium and long-term. Canada needs to prepare for the long-term — especially given the increasing naval activity which has an impact on Canada’s trade.

Some of these issues were discussed at a recent Asia-Pacific Security Workshop this past April at Royal Roads University’s new Comprehensive Security Working Group (part of the School of Peace and Conflict Studies headed by retired LCol Alex Morrison). The workshop provided an overview of issues in the region, and created a great starting point for further work. Royal Roads has a long history in the region, first as a Military College and now as a University. A security focus from Royal Roads University bodes well for developing a strong Canadian position in the region and building on academic work at UVic and UBC. Professor Ian Townsend-Gault of UBC is a leading expert on marine boundaries disputes in the region. Canada needs to be prepared for the many threats brewing in the Indo-Pacific — and must be seen as a player and partner with other maritime nations.

We are seeing increasing Indo-Pacific regional disputes with respect to ocean space. Analysts have noted the increasing size of navies in the region, along with more submarines and flight deck vessels capable of launching aircraft. Predictions suggest there will be 110 conventional powered submarines and 11 new aircraft carriers or equivalents planned or being built in the region by 2030.

China has been vigorous in expanding its navy including moving toward nuclear powered submarines. China has recently given international legal concepts a restrictive definition under the Law of the Sea Convention to protect its national interests in the South China

Sea. They do this by putting a narrow interpretation on the right of transit passage within its exclusive economic zone (EEZ). China seeks to limit foreign warships entering its Exclusive Economic Zone (EEZ). This has been described as

Canada needs to prepare for the longterm with a strong Navy that has support and sustainable funding. lawfare and can be quite effective with a limited use of naval resources. China is also making similar comments in the Arctic Ocean Basin. A plethora of piracy and other criminal activities are occurring in the region, and yet naval resources are in a state of flux. This provides an opportunity for Canada’s Navy, who have earned a world renowned reputation gleamed during WW2 and the Cold War for anti-submarine warfare, to punch well above its weight as a medium-sized navy through various naval alliances in the coming years. Canada’s sailors are ready for this challenge.

Canada needs to prepare for the long-term with a strong Navy that has support and sustainable funding. Our defence policy should be intertwined with our ­foreign and international trade policy. Canada’s Navy has the stamina and leadership to become an important element in the evolving future across the “other” pond. This component will help foster a stronger and more robust economy in a rapidly changing world.

Canada’s future trade and prosperity is at stake. Canada must prepare now. British Columbia’s marine firms will play a key role. We need more Navy, not less, in and around the Indo-Pacific Ocean in the coming century. Canada needs to be ready — its future trade and prosperity depends on it.

Joe Spears has a long standing interest in maritime issues in the Region and was part of a CIDA team lead by Professor Ian Townsend-Gault of UBC that developed a Maritime Code for Vietnam. Joe is a Principal of the Horseshoe Bay Marine Group and can be reached at kjs@oceanlawcanada.com June, 2011 BC Shipping News 49

Visionmaster FT Totalwatch Multi Function Workstation

T

he Visionmaster FT Totalwatch

Like all Visionmaster FT systems, Total-

ship telematics. Visionmaster FT is scalable

multi-function workstation pro-

watch work stations are designed to be inter-

to provide for any or all of these functions to

vides the ultimate in flexibility and

faced with the optional Performance Based

meet each ship’s unique requirements, and

redundancy for bridge configuration and

Navigation suite that includes fuel manage-

is easily upgradeable to add any functions as

manning. Totalwatch represents the ultim-

ment, chart downloads and corrections and

your requirements evolve.

ate in situational awareness for the navigator. All Visionmaster FT watch keeping modes can be displayed — Radar, Chart Radar, CID, ECDIS, and ECDIS with Radar overlay. Other shipboard systems such as machinery automation, central alarm management, ShipSentry, Performance Based Navigation modules and CCTV can be monitored. At a Totalwatch workstation, any Visionmaster function can be selected by the operator as a Watch Mode at the click of a button. With Totalwatch:  Any combination of workstation functions and watch keeper manning configurations can be created to suit the navigational situation, with optimal configurations to meet the unique requirements of inshore piloting, open sea navigation, docking and anchoring.  All navigational data is available to any watch stander at any moment in time, enhancing navigation performance and increasing safety.  Having multiple functions available at individual workstations provides the redundancy necessary to maximize system availability.  The flexibility of Totalwatch enables reduced manning, which will result in major cost savings, as well as supporting single watch keeper bridge requirements.

Further enhancing performance, with a dual display Totalwatch configuration and the optional chair mounted trackball control, a single watch keeper can control and monitor two Visionmaster watch modes at a single location.

50 BC Shipping News June, 2011

TECHNOLOGY

Commercial marine drive systems.

The benefits of lithium polymer technology.

F

or Ron Burchett, Commercial Marine Manager for Corvus Energy Ltd., challenges are considered opportunities. And with global energy demands increasing by 50% by 2030, and fuel costs doubling over the past three years, Burchett has the solution: Hybrid and diesel electric drives that combing the best in batteries with optimum diesel drivelines. “By reducing the size of the diesel drives necessary and making up the balance of power with Corvus Batteries, ship-owners will see better overall performance, safer overall systems, reduced operational costs and reduced environmental impacts,” said Burchett.

Burchett recently presented this solution to attendees at the Mari-Tech 2011 conference in Victoria, drawing great interest in the compact, modular lithium-ion battery system for use in commercial marine vessels including ferries, tugboats, port machinery and oil rigs among others. To demonstrate the cost savings, Burchett used an example of a vessel running four hours per day, 320 days per year with a fuel burn of 405,000 litres per year (on a 45-tonne boat) and fuel costs at $1 per litre. “On just this simple calculation,” said Burchett, “fuel saving with the hybrid system would be just under $350,000 per year.” Burchett goes into more detail that extrapolates that $350,000 annual savings over a 25year lifespan of the vessel, resulting in an annual return on invested capital of 17% after initial payback.

In reviewing the duty cycle of a vessel with a hybrid application, Burchett broke down the cost savings by discipline and noted that 100% fuel savings is possible when the vessel is in transit.

Using an example of a ferry in Norway, he noted that after 16 hours of travel, the ferry still had 20% left in power.

And in the case of cable ferries, Corvus

Batteries will actually regenerate power upon deceleration with the potential to recoup up to 25% of total energy used.

All-electric applications using Corvus’ lithium-ion battery technology provide the ability to moderate power peaks and valleys and thus provide for an even output. This allows an even absorption and discharge of large volumes of power and energy. With longer life, no maintenance and no gas emissions, the electric application is gaining in popularity amongst ferry operators, tugboats and submarines among others.

When compared to regular lead-acid batteries, one key feature of the Corvus Battery is the significant reduction in space required. With only 1/4 of the weight and volume, Corvus Battery modules have four to ten times the energy and power of regular lead-acid batteries and may be configured in arrays in multiple megawatt capacities. In addition, each module is continuously monitored for input charge, discharge, current, voltage, internal and ambient temperature and other factors. If ever required, crew on the vessel or operations techs on shore would be alerted to a potential problem or a battery that is out of spec and allow replacement at a regular service interval as opposed to an emergency situation.

Communications and monitoring is sent by text message, smart phone or any other form of communication choice selected. Recyclability of the Lithium Polymer Cells is another key benefit of use — 99%

of materials are recovered through incineration and the heat required for incineration is also recoverable.

Questions from the audience led to robust discussion and indicated that there was great interest in the Corvus Battery. Burchett acknowledged that both Transport Canada and the US Coast Guard have already provided approval for the lithium-ion technology and that Det Norske Veritas and Lloyd’s see benefits to using the batteries over gas. Because of concerns about corrosion, Burchett noted that the battery is totally sealed (waterproof up to three meters) and can operate in environments as cold as -27 degrees Celsius and as warm as 42 degrees Celsius without requiring extra safeguards.

“Of the testing done in the US,” Burchett summarized, “not one has failed. And there are no requirements for ventilation or any other special considerations for location. In normal use, the batteries require no cooling system other than normal passive air circulation”.

To learn more about Corvus lithiumion battery technology, please visit: www.corvus-energy.com or send email to: info@corvus-energy.com.

June, 2011 BC Shipping News 51

TECHNOLOGY

Modulated molecular oscillations.

A lasting solution to fight rust, lime, scale and microbiological problems.

T

he MERUS Group, headquartered in Sindelfingen, Germany, has developed a technology that puts them at the forefront in nonchemical industrial water treatment. Roland Dworschak introduced attendees at the recent Mari-Tech conference in Victoria to the MERUS Ring — a software-based technology that changes the physical behavior of the solved and solid ingredients in water thus reducing harmful side effects that occur in piping systems and equipment.

Dworschak was quick to point out that MERUS Rings do not change the chemistry of the water or liquid (including crude oil and natural gas) but rather achieves its results through oscillations that are emitted by the MERUS Ring and enter into the water to change its behavior as it travels downstream.

When using the technology, proven results on scaling/fouling, corrosion, and algae and bacteria have been recognized by ship-owners and has been praised as a green — and effective — alternative to other methods of cleaning. The MERUS Ring is a passive device that is installed around the pipe (without cutting it). There is no power supply and no maintenance required. Normal water systems continue to operate without any need for chemicals. The MERUS Ring reduces the amount of water needed for blow downs and significantly extends the cleaning cycles needed.

For the commercial marine industry, the applications are numerous, including:  fresh water generators or RO systems to produce drinking water;  drinking water and sanitary water supply throughout the vessel;  engine cooling direct or indirect via heat exchangers;  ballast water treatment;

52 BC Shipping News June, 2011

 steam boilers;  separators;  barnacles and marine growth;  sea shells and mussels; and  organic growth/bacteria in fuel.

Dworschak’s presentation provided many examples and testimonials from ship operators who installed the MERUS Ring and saw noticeable results:  Cunard Cruise Lines installed MERUS Rings on the Queen Elizabeth II and the Queen Mary II on the seawater evaporators (see photo on opposite page) and additional rings to solve problems with corrosion and scaling that occurred when using seawater to flush toilets.  Hapag Lloyd’s container vessel, the Tokyo Express used the Ring on freshwater generators to produce drinking water out of seawater — without any chemical or mechanical cleaning, the condition of the evaporator was “very good” as testified by the fleet man-

ager: “All plates are clean, no residues on surface of evaporator and condenser. During test period…ship staff carried out no cleaning of the evaporator and no additional chemical was used during service…”  The Ferry Joline in the UK – a small, 24-year old ferry experienced a lot of fouling and scaling in the engine due to cooling with seawater. A MERUS Ring was placed on the inlet of the cooling for the engine and has taken care of the problem. Where cleaning was required sometimes as much as a once a week, cleaning now occurs once every three to six months and the scale found is easier to remove.

The MERUS Ring is made out of two halves of a treated alloy. The two halves can easily be installed on the outside of a pipe as a collar. Once the Ring is installed, it automatically starts to emit different kinds of oscillations. For each problem there are dedicated oscillations, for example, one oscillation fights

TECHNOLOGY rust and corrosion, another fights calcium carbonate and other salts, with further oscillations that fight microbiological problems such as bacteria, algae or bio-fouling.

MERUS Engineers provide full professional service by taking control of entire water systems, delivering not just the MERUS Rings to inhibit the technical problems, but also conducting regular on-site monitoring, and delivering regular reports on troubleshooting and operations.

To learn more about the MERUS Ring, please visit: Admartech at www.admartech.com where you will find details on applications and your nearest Admartech agent.

Details of other applications can also be found at: www.merusonline.com.

Demonstrating the effects of the MERUS Ring: before and after shots of a fresh water evaporator on-board a Cunard Cruise Line ship.

Gearing up for growth

With a major three-year, $47 million equipment upgrade behind it in 2010, Westshore Terminals continues to grow to meet customer demands. As the premier West Coast coal gateway to the world, Westshore now has a nominal design capacity of 29 million tonnes a year and is ever evolving.

Debottlenecking studies have identified choke points to the free flow of coal on site and further enhancements are now underway to solve this challenge.

As Canada’s leading export terminal, we are currently upgrading our coal dumper system, a move that will increase yearly nominal design capacity to 33 million tonnes by 2013.

And, we continue to build on our strengths, taking advantage of the successful automation of our four stacker-reclaimers, as we strive to meet increasing customer demands.

w w w. w e s t s h o re . c o m

The West Coast’s premier coal gateway

June, 2011 BC Shipping News 53

EVENTS JUNE

The Nautical Institute: Vessel Management On-Board and Ashore June 2-3, 2011 Marriott Victoria Inner Harbour, Victoria, BC www.niseminar.com Baltic and International Maritime Council (BIMCO) General Meeting sponsored by Chamber of Shipping of British Columbia June 6 - 9, 2011 Fairmont Waterfront Hotel, Vancouver, BC www.bimcogeneralmeeting2011.ca

National Maritime Safety Association (NMSA) Safety Innovation Forum June 22 - 24, 2011 Wosk Centre for Dialogue, Vancouver, BC www.nmsa2011.com

Consilium and Startech Marine Safety and Environmental seminar June 3, 2011 (8:00 am to 12:00 pm) — Vancouver Terminal City Club Consililum and Startech Marine are hosting a half-day seminar to provide product information on marine navigation, safety and the environment. Consilium products to be featured include: • Oil Spill Detection Radar • EMS (Emission Monitoring) • Opacity Measuring System • Navigation Radar • ECDIS • VDR’s • Speed Logs • Navigation Bridge Watch Alarm Systems • Integrated Bridge System • Oil Mist Detection • Fire Detection • Emergency Shutdown with Safety Management System • Gas Detection To find out more or to register (free of charge), please call Peter at 604-888-5128 or e-mail info@startechmarine.ca.

BC SHIPPING NEWS

Canada’s West Coast Commercial Marine News Magazine.

NOW ON-LINE! w w w. b c s h i p p i n g n e w s . c o m

List of advertisers: Bernard & Partners.................................9 Canadian K9.........................................34 Chamber of Shipping of British Columbia..................................8 International Sailor’s Society Canada.......4 International Ship-Owners Association of Canada Inc.....................12 King Bros..............................................18 Lorax Systems......................Outside Back Maritime Services...................................4 Nanaimo Port Authority...........................7 NAVIS Marine Insurance Brokers...........25 Peninsula Waste Water Services............54 Sperry Marine.......................................50 Startech Marine....................................24

Specializing in the treatment and disposal of bilge water, waste fuel, waste oil, sludge and hazardous waste.

Tel: 250.380.0436 Cell: 250.858.8036 Fax: 250.380.0437 54 BC Shipping News June, 2011

825 Admirals Road Victoria, BC V9A 2P1 plehmann@pwws.ca

Turmot Inc..............................Inside Front Vancouver Maritime Museum..................4 Wartsila.................................. Inside Back Westshore Terminals.............................53

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