INSIDE: FINAL CHANGES TO THE FISHERIES ACT
BC SHIPPING NEWS
Volume 3 Issue 6
www.bcshippingnews.com
July/August 2013
Commercial Marine News for Canada’s West Coast.
Industry Insight Malcolm McLaren and Chuck Ko, former and current Presidents, Allied Shipbuilders Ltd.
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Huge changes as B.C. shipbuilding industry reinvents itself
Skills and Labour
JUL-AUG 12 CP PM# 42161530 JULY/AUG 2013
Shipyard Review
Plus:
Research highlights critical needs for an increased workforce
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July/August 2013 On the cover: Allied Shipbuilders staff at work on the Goblin. Below: Allied staff at work on the Renegade. Photo credits: Dave Roels (www.daveroels.com).
Cover Story
20
Volume 3 Issue 6
Contents
Shipyard activity update: Huge changes as B.C. shipbuilding industry reinvents itself — by Ray Dykes
Malcolm McLaren and Chuck Ko
High standards prevail through Allied transition Allied Shipbuilders’ former and current Presidents highlight the past, present and future of this 60+ yearold company.
40 Asian shipyards
The new ship of state
BC Shipping News’ Singapore correspondent Jaya Prakash takes a snapshot of offshore shipbuilding and finds that some Asian countries are doing better than others.
Marine engineering Master’s program at UBC 36 New A specialized set of courses that focus specifically on design, 38
construction, maintenance and operation of vessels. LNG engines for ships: state of affairs Colin Keddie recaps the full-day workshop jointly hosted by CIMarE, SNAME and SAE BC.
D E P A R T M E N T S
F E A T U R E S
10 Industry insight
6 18 28
News briefs/industry traffic
29
Ship repair
News briefs and letter to the editor
History lesson
The Coal Harbour wake, by Lisa Glandt
Shipyards
Meridian Marine sets up new yard on the North Fraser Osborne propellers: Pursuing both old and new markets
30
Skills training
34
Labour
44
Legal affairs
IMTARC: Collaboration and support crucial to success of industry, by Captain Alex Rueben Research highlights critical needs for shipbuilding and repair workforce Final changes to the Fisheries Act, by Catherine Hofmann
46
Events (I): Nautical Institute
48
Events (II): CMC Tugboats
50
Events (III): GreenTech
52
Ferries
NIBC conference focuses on passenger vessel safety
The past, present and future of the tugboat industry
First GreenTech on the West Coast hailed as a success Shipyards and ferries share a crucial role, by Serge Buy July/August 2013 BC Shipping News 3
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July/August 2013 Volume 3/Issue 6 Publisher McIvor Communications Inc. President & Editor Jane McIvor Contributing Writers Serge Buy Lisa Glandt Colin Keddie Malcolm McLaren Captain Alex Rueben
Ray Dykes Catherine Hofmann Chuck Ko Jaya Prakash Captain Duke Snider
Advertising and Subscriptions Jane McIvor Phone: 604-893-8800 / Email: jane@bcshippingnews.com ANNUAL SUBSCRIPTION Canada Three Years $99.95 Cdn* Two Years $69.95 Cdn* One Year $37.50 Cdn* USA One Year $60.00 Cdn Other Countries One Year $75.00 Cdn Single copies Outside of Canada *Canadian rates add 5% GST
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4 BC Shipping News July/August 2013
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.
Photos by Dave Roels, www.daveroels.com
EDITOR’S NOTE
When information overload is a good thing.
W
hen Ray Dykes submitted his article for this month — “Huge changes as B.C.’s shipbuilding industry reinvents itself” — a chill went up my spine when I saw his note about ‘see what you can do with the length, I give up’. I opened the file to find a monster of an article. Despite the challenges of editting the piece down to a reasonable size, this was a good sign. Compared to previous shipyard activity updates, a definite uptick in work is noticeable. A number of yards have made (or are about to make) improvements, including a massive modernization project at Vancouver Shipyards; owners are looking for skilled workers; and, for the first time, we get to report on a new shipyard (“Meridian Marine sets up
new yard on the North Fraser”). And work on the first NSPS vessel hasn’t even begun yet! The information on shipyards in this issue is extensive and speaks to a hive of activity not seen for years. While new builds are still few and far between albeit not as few as in past years, repairs and refits are booming right now. In addition to Ray’s comprehensive article, our Industry Insight on Allied Shipbuilders’ Malcolm McLaren and Chuck Ko was a real treat to undertake. I only hope their personalities come through in the writing to fully appreciate the dedication and love of the shipbuilding craft that both of these men share. We also take a serious look at the coming skills needs, as identified by the BC
Shipbuilding and Ship Repair Board, and we’re encouraged by the response and partnerships formed between government, industry and educational institutions who have established initiatives like the Industrial Marine Training and Applied Research Centre and the new UBC Master’s program for Naval Architecture and Marine Engineering. Looks like we’re in for some good years. Jane McIvor PS. Check out the new Chamber of Shipping of British Columbia website: www.safeshippingbc.ca. It contains an abundance of useful information on all aspects of shipping — and all apsects of shipping on B.C.’s coast.
Local traffic...
Thanks to Mark Mulligan with Capilano Maritime Design Limited for these “what a difference a few decades make” shots. On the left, Mark took this photo of the Princess Patricia as it sailed by West Vancouver in 1979; on the right, he shot the Disney Wonder on June 10, 2013 from under the Lions Gate Bridge. The Princess Patricia was built in 1949 in Glasgow, Scotland at Fairfield Shipbuilding. She was 356 feet long with a beam of 56 feet and a 16-foot draft. She carried 400 passengers on seven-day cruises to Alaska. The Disney Wonder, built in 1999 at Fincantieri Shipyards in Italy, is 964 feet in length, has a beam of 106 feet and a 26-foot draft. She carries 2,700 passengers and a crew of 950 on seven-day cruises to Alaska.
Got a great photo? Send it to jane@bcshippingnews.com to be included in our feature on ships visiting our local waters.
July/August 2013 BC Shipping News 5
LETTER TO THE EDITOR Human error: ‘The bitterest truth is better than the sweetest lie’
D
espite numerous marine safety regulations and advances in ship construction and technology, we continue to witness the most appalling accidents at sea. The role of human error in maritime accidents is reaching an alarming level. Some reports indicate that as high as 90 per cent of all maritime accidents are caused by human error. IMO introduced two major legislations at the end of 20th century which had huge effect on seafarers’ future — the Standard of Training, Certification and Watchkeeping (STCW-95) and the International Safety Management Code (ISM Code). These regulations engaged the industry for many years and diverted attention from the humanitarian needs of seafarers. The changes that came with STCW-95 were massive and the outcome was a failure. Seafarer competency is at its lowest level throughout the history of shipping. Many low-quality private training centres surfaced. Seafarers are not getting quality training and as result they don’t have the confidence to do their job.
STCW-95 has set up ‘minimum standards’ and exams and certification are made so easy and with a much reduced seatime requirement that people can become a captain or chief engineer as early as 27 years old. That is a huge mistake. Everyone remembers that the captain in many places is still called the ‘Old Man’, and that is not just for respect. The ISM Code was introduced following the capsize of the passenger/ car ferry Herald of Free Enterprise. Massive operational changes ashore and onboard ships came with the Code. Additional manpower was recruited ashore to handle the work. The result was huge costs on a company’s overhead and massive paperwork for ship staff. Frustration started to show up on ships. The responsibilities were increasing on ship staff and at the same time their authority was diminishing. Master’s ‘Authority’ was clearly highlighted in the Code but in practice it did not exist. A mass exodus of experienced and quality seafarers began. Routine shipboard operations were neglected/ missed and fake drills and checklist
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filling became a norm. The IMO’s bureaucracy and its mountain of regulations eroded the safety culture amongst seafarers. Good old seamanship is replaced by paperwork and checklists. Flag Of Convenience registry (FOC) is another major contributor to human error. Many owners prefer the FOC register to enjoy low tax and fewer labour and safety regulations. Most of the seafarers are working under appalling conditions on FOC ships with longer working hours, a less safe environment, and of course less pay and benefits. FOC ships normally have a bare minimum manning scale causing more stress, fatigue and hardship on the rest of the crew. Seafarers feel abandoned, ignored, criminalized, intimidated and humiliated. They are overworked and frustrated. Their social life onboard ships has vanished. Training quality and competency levels are at their lowest point ever. The biggest challenge faced by the shipping industry in the 21st century is how to reclaim its humanity. We are facing a new generation of accidents with ridiculous involvement of human error. The Costa Concordia is clear evidence of that. Some people are hoping that the ILO’s Maritime Labour Convention (MLC), 2006 may provide protection against seafarers’ rights but it is too late and too little. The industry is going through a long battle with a very poor market. When owners were enjoying the luxury of a good market, their time and money was wasted on regulations like the ISM and STCW. Drastic situations call for drastic measures. Maybe it is time to look at the option of delegating seafarers’ affairs to an independent entity as was done with ship construction and Classification Societies. This has achieved good results. Advances in ship structure and equipment may have reduced the accidents but has not necessarily made shipping safer. You cannot expect ‘Safe Shipping’ with unsafe people at the helm. Sincerely, Captain Ardeshir Yousefi
news briefs John Horton’s work commissioned by Royal Canadian Mint
T
he Royal Canadian Mint recently released gold, silver and platinum coins to commemorate the historic battle beween HMS Shannon and the USS Chesapeake during the War of 1812. What makes this especially momentous is the commission of marine artist John Horton’s work to provide the design. The coins depict the final moments of the famous battle between HMS Shannon (at right) and the battle-worn USS Chesapeake (at left), its decks ablaze and gun-ports destroyed. The coins feature an embossed bilingual title that celebrates HMS Shannon’s victory by listing its name first “THE/ LE SHANNON AND THE/ET LE CHESAPEAKE.” It also features the dates “1813-2013,” commemorating 200 years since the famous war battle. With only 200 coins minted, the gold coin, with a face value of $500, contains five ounces of pure gold (certified 99.99 per cent). Surprisingly large, the coin
measures six centimetres in diamater. It currently sells for $12,000. The one-ounce platinum coin, with only 250 minted (certified 99.95 per cent pure platinum) has a face value of $300 and sells for $3,000. It is three centimetres in diameter. If both of these are outside of your budget, the $50 silver coin, with 1,500 minted, sells for a more reasonable $500. The coin contains five ounces of fine silver (certified 99.99 per cent pure), and is 6.5 centimetres in diameter. John is no stranger to recieving commissions from the Royal Canadian Mint. In 2005, he designed the 20-dollar silver coin The Ketch as part of the 2006 Tall Ship Collection. The coin depicts a 19th-century Ketch as it rounds the bend off Cape Diamond in southern Quebec. The detail is so intricate that sailors can be seen preparing the ship for an incoming storm. A special feature of this coin is the hologram-enhanced background.
Marine artist John Horton with the gold and silver coins and his drawing from which the coins were produced.
July/August 2013 BC Shipping News 7
industry traffic Canadian Coast Guard Western Region welcomes Girouard and McNish
C
anadian Coast Guard Commissioner Marc Grégoire recently announced the appointment of two key executives for the CCG Western Region. Roger Girouard has been appointed to the position of Assistant Commissioner, Western Region, and Joanne McNish has been appointed to
the position of Regional Director, Fleet, Western Region. Roger joins the Canadian Coast Guard from Royal Roads University where he has been an Associate Professor in the School of Peace and Conflict and the Human Security and Peacebuilding Program since his retirement from the Canadian Forces as Rear
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8 BC Shipping News July/August 2013
Admiral in 2007. He held a variety of leadership positions in the Canadian Forces including Commanding Officer of HMC Ships Chaleur, Miramichi and Iroquoi. His last appointment with the Canadian Forces was as Commander Joint Task Force Pacific and Maritime Forces Pacific in Victoria Roger served for 34 years with the Canadian Forces and holds a Masters of Arts in Leadership and Training from Royal Roads University, is a graduate of the United States Naval War College in Rhode Island, and has completed numerous professional development courses in security and defence. Roger is succeeding Vija Poruks who has been the Assistant Commissioner in Pacific Region for the last six years. Grégoire took the opportunity to thank Vija for her dedication to the CCG and to wish her all the best in her future endeavours. He also thanked Denis Sing for assuming the role of Assistant Commissioner, Western Region during the selection process. Joanne McNish has over 28 years of experiencein the Canadian Coast Guard and over 18 years experience as Commanding Officer onboard CCG vessels. She has extensive operational knowledge and experience resolving complex issues and building collaborative partnerships. In her role as Regional Operation Centre Pacific Superintendent, she engaged in consultations with numerous clients and stakeholders; developed and implemented annual vessel schedules; facilitated departmental priorities, vessel capabilities and short and long-term resource demands; and worked with other regions to provide icebreaking support and shared resources. Joanne holds a Bachelor’s degree from the University of Alberta and a Nautical Sciences Diploma from the Canadian Coast Guard College as well as professional development courses in operations and management. Joanne will be replacing Duke Snider who retired in June 2013, after 32 years of dedicated service. Grégoire also took the opportunity to extend his appreciation to Duke for his contribution to the Canadian Coast Guard over his career.
news briefs ClassNK Receives Safety at Sea Award at Seatrade Awards
L
eading classification society ClassNK received the Safety at Sea Award at the Seatrade Awards 2013 held at Guildhall, City of London in May for its efforts to improve the safety of nickel ore carriage. This marks the first time that ClassNK has received an award at the Seatrade Awards. ClassNK Chairman and President Noboru Ueda attended the ceremony and accepted the award on behalf of the Society in front of more than 350 attendees. The Seatrade Awards distinguished panel of judges awarded ClassNK with the Safety at Sea Award for its work in developing its Guidelines for the Safe Carriage of Nickel Ore (Second Edition). Labelled “the world’s most dangerous cargo” by INTERCARGO, the liquefaction of nickel ore cargoes during transport was responsible for the loss of 66 lives in South East Asia from 2009 to 2011 alone. The guidelines not only provide methods to prevent the liquefaction of nickel ore cargoes during transport, but also include the world’s first design standards for building “Specially Constructed Cargo Ships” capable of safely carrying nickel ore cargoes. The Guidelines for the Safe Carriage of Nickel Ore (Second Edition) have previously been awarded with the Safety Award at the Lloyd’s List Global Awards 2012 as well as the Technical Innovation Award at the Seatrade Sri Lanka Ports, Trade and Logistics Awards 2013.
Speaking on the occasion, Chairman and President Noboru Ueda said: “It is a great honour to receive this award and to be recognized by both Seatrade and this distinguished panel of judges. At ClassNK, we are committed to ensuring the safety of lives and property at sea, and the new guidelines we have developed to help reduce the dangers of nickel ore cargoes are an important example of that commitment. ClassNK will continue to dedicate ourselves to research and development and we will strive to provide new innovations to help secure a safer future for the entire maritime industry.” The Guidelines are available free of charge via the MyPage section of the ClassNK website. To download these and other guidelines, please register at www.classnk.or.jp
Chairman and President of ClassNK, Mr. Noboru Ueda accepts the Safety at Sea Award at the Seatrade Awards 2013.
July/August 2013 BC Shipping News 9
INDUSTRY INSIGHT
High standards prevail through Allied transition Former and current Presidents Malcolm McLaren and Chuck Ko, Allied Shipbuilders Ltd.
G
iven that the McLaren Family history could — and has — filled volumes in books, and that Chuck Ko, as relatively new owner of Allied Shipbuilders, has some very useful insights into the shipbuilding and repair industry, this article could never provide the space required to both justice. As one of the oldest shipbuilding, repair and marine engineering operations on the West Coast, Allied and the McLaren Family have outlived most in an industry known for its boom and bust cycles. BC Shipping News sits down with both Chuck Ko and Malcolm McLaren to do what we can to highlight the past, present and future of Allied Shipbuilders. BCSN: Let’s start at the beginning. Describe how Allied came to be. Malcolm McLaren: We should start with my grandfather, W.D. McLaren, and the path that led to Canada. He was the classic Scot. He apprenticed at Fairfield Shipbuilding on the River Clyde in Glasgow — the same company as Rob Allan’s grandfather. Rob’s grandfather worked in the hull design department and mine worked in the
10 BC Shipping News July/August 2013
*
Photo credit: Dave Roels, www.daveroels.com
Allied and the McLaren Family have outlived most in an industry known for its boom and bust cycles.
engine design department. And while Rob’s grandfather left and came to Canada, my grandfather moved to the East Coast of Scotland with a partner where they built coasters for the Union Steamship Company of New Zealand and B.C. He came to Canada in 1927 and worked as a consulting Naval Architect before becoming the General Manager for West Coast Shipbuilders (where the Olympic Village is now) at the start of the Second World War. My father, Arthur, joined the company in 1941 until 1948 when West Coast Shipbuilders shut down. The owner, Frank Ross, was kind enough to rent a corner of the site to my father and a handful of people from West Coast Shipbuilders and that was the start of Allied Builders. In 1961, now renamed to Allied Shipbuilders, my father took over Burrard Shipyard, the repair yard located in Coal Harbour. We moved to
our current location on the North Shore in 1967 (and merged the Coal Harbour repair operations into the North Shore in 1979). Since the beginning, we have constructed 259 vessels, including harbour-patrol boats, fish boats, tugs, log barges, ferries, off-shore supply vessels and Arctic icebreakers. My father suffered a stroke in 1990 which reduced his day-to-day involvement but by then my brothers — James and Douglas — and I were managing the business. The ups and downs of Allied can be matched to the ups and downs of the shipbuilding industry. BCSN: The sub-sections of the book Ships of Steel, A British Columbia Shipbuilder’s Story, written in part by your father, highlight the key peaks and valleys of the industry: • 1900s: The industry takes root • 1910s: The first shipbuilding boom • 1920s: After the boom
INDUSTRY INSIGHT
Arthur McLaren and his sons James, Malcolm and Douglas in front of a Canmar supply vessel, June 6, 1981. Original photo by Ian Lindsay, Vancouver Sun. Photo courtesy of Allied Shipbuilders
1930s: Survival 1939 to 1946: The second wartime boom 1946 to 1949: Period of adjustment 1950s: Slow but steady 1960s: Boom times 1970s: Business as usual 1980s: Decade of change 1990s: Ships few and far between MM: By the mid-1980s, the shipbuilding business in B.C. took a dramatic downturn. A number of shipyards closed over the following decade — Versatile Pacific’s shipyards in North Vancouver and Victoria (Burrard Drydock and Yarrows), BelAire Shipyard, Westcoast Manly, Vito Steel Boat, Matsumoto and Shore Boats — but Allied invested in the future, building two floating drydocks during the same time to pursue repair and conversion work. We changed our strategy from being a shipbuilder to a ship repair shop capable of shipbuilding. You can repair a ship with a shipbuilder but you can’t build a ship with a repairer. BCSN: Tell me about your start in the industry as well as that of your brothers? MM: I would come to the yard with my dad sometimes on a Saturday when I was 11 or 12. Part of his routine would be to drive around the docks and as we’d go by the ships, he’d point out the different kinds — ‘there’s a German ship or an English ship’ — and I’d ask how he knew and he would describe the difference in bows or funnels or other features. Years later I found out he was looking at the flags as well. After the rounds, we’d get back to the shipyard and I was pretty much left to wander and putter about in the shops. Occasionally, he’d get me to trace something or do something else useful but I suspect it was mostly just to keep me busy. By the time I was 16, I was working in the storerooms and handing out parts and pieces during the summers. Following a year of university, I worked in the two shipyards welding and assisting in docking and repairs. After a couple of years of that, I went back to school taking Mechanical Technology at BCIT. I started working in the design office under my father in the late 1970s — doing support technical work for him, hydrostatics (by hand), design checks, pipe schematics, all sorts of projects. My older brothers, James and Douglas, both had similar starts in the business including work on projects in Northern Alberta and the North West Territories. BCSN: How were management responsibilities split between you and your brothers? MM: We all fell into our own niche so we could keep out of each other’s hair. Jim was the push — the guy who knew that “the Man wants his boat” and pushed all the trades to get the work done on time. Douglas understands electricity. He’s got a diploma in electrical engineering as well as a trade’s ticket. He does the design work for all of the electrical systems. He’s the fellow who can pick up a schematic and review it for a length of time and then tell you ‘here’s what will happen if you do this’. He’s a very talented trouble-shooter. Up until 2012, I was the President, Jim was the Shipyard Manager and Douglas, who continues today in the same position, is the Electrical Superintendent. Jim and I sold our shares to Chuck last February.
Photo courtesy of Allied Shipbuilders
• • • • • • • •
Aerial view of Allied’s North Vancouver yard, showing the first two ships for International Offshore Services on the ways. July/August 2013 BC Shipping News 11
Photo courtesy of Allied Shipbuilders
INDUSTRY INSIGHT
Chuck with Ed Steffenson in front of the forward hull section of the Spirit of British Columbia. BCSN: Chuck, could you describe your start at Allied? Chuck Ko: I started on June 2, 1980 — almost exactly 33 years ago — during the summer of my first year at BCIT, where I studied Mechanical Technology. I had applied at a number of places and Arthur McLaren was the
12 BC Shipping News July/August 2013
first to call back. I did my summer here, working as a junior draftsperson, went back to school to complete my diploma and then came back as a draftsperson working directly under Arthur. This was definitely the right choice for me. Because it was a family operation, I got exposed to everything — I’ve done
everything from counting the number of toilets on the site (to account for the amount of water usage) to estimating, designing ships and managing projects. That’s all because of the tutelage of Arthur McLaren. He was subtle — he would teach me and I wouldn’t know I was being taught. I was very lucky — not only was I exposed to all aspects of shipbuilding during the early 1980s when we were still doing a fair amount of new construction, but Arthur was a great mentor. BCSN: And after 33 years, you bought the place? CK: It seemed like a natural transition. Over the years, I continued to be given more and more responsibility and, prior to buying the shares from Jim and Malcolm, was the VicePresident of Operations. BCSN: How have you fared over the last year in terms of the added responsibilities? CK: There are many extra tasks, like personnel issues that I might have been involved in but was not directly responsible for before. Or the administrative
INDUSTRY INSIGHT bull work like invoicing, accounts receivables, customer relations, advertising, soliciting work, work scheduling, physical plant and equipment maintenance, that all goes on behind the scenes. All this is fairly new to me and requires a great deal of time to manage. BCSN: How has the industry changed? What sort of trends have you seen? MM: There have been changes brought about by new technologies and processes that improve efficiency. People see a shipyard and immediately think of steel structures and welding. That’s only a small part of it. The hull is only the start. For the average self-propelled vessel, half the money is spent by the shipyard building the hull and outfitting it with the machinery and equipment. The other half of the ship is what is spent with the suppliers — the engines, the ventilation fans, the alarm panel, the paint, the piping and on and on. People talk about the shipbuilding industry as if you’re only putting jobs in shipyards but what it really does is support an industry of local suppliers — Kobelt Manufacturing, Trimetal Fabricators, Cullen Diesel Power, Osborne Propellers. These companies have been in business for decades and sell products on the world market. Burrard Iron Works still makes winches; Western Machine Works (a division of Allied) still makes and exports towing pins. CK: Because we haven’t had any new construction for about five years and new construction was rare since the early 1990s, we have focused more on repair and refits. The new employees don’t have the same experiences we had in the early days. Building a ship and repairing a ship are different — the techniques and technologies are similar, but building ships is a manufacturing process. The level of planning and organization required to make a new construction successful is a lot higher. Doing a ship from scratch gives you the opportunity to maximize efficiencies. It’s also a lot of fun, offering us the opportunity to be creative. BCSN: Let’s look at your staff for a moment. Are you finding the skill sets you need? What’s the average age of your tradespeople? July/August 2013 BC Shipping News 13
INDUSTRY INSIGHT CK: I have a very high regard for the work force at Allied. They have pride in their work and set a high standard for which Allied has become known. “Allied built” is used as a badge of honour when others advertise a vessel we have built. Currently, we have about 85 tradespersons and 12 administrative, technical and support staff inside. As for age, the majority are in their early 50s and have decades of shipbuilding and ship repair experience. We benefit greatly from their knowledge.
To ensure we have the skills in the future, we maintain young apprentices in almost every trade group to ensure that knowledge is passed along. One of our priorities is to keep the core group working. As an employer, we are committed to our workforce — they are the shipyard. MM: If you went into Allied’s machine shop a decade ago, it probably had the highest average age of any trade group in the shipyard. Yet, as people retired, we hired and trained
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14 BC Shipping News July/August 2013
more. Now the machine shop has a relatively young age and is busy doing quality work. Some years ago we made a conscious decision to keep all the trades necessary for shipbuilding. It allows us to continue to do repair work but also continue to have ability for new ship construction. One of the benefits of controlling most of the labour force internally is that you can make snap decisions. You can’t do that with sub-contractors. The flexibility really helps adapt to rapid changes from outside forces. The challenge is to provide steady work to retain employees. Sometimes, it means you might be bidding on jobs with prices you don’t really like but the show must go on. BCSN: What has business been like over the past year? Chuck, have you changed Allied’s business strategy since acquiring majority ownership? CK: Business has been reasonable. There have been Canadian Coast Guard refits, tugs and barge repairs and other coastal commercial projects. We have Authorization not changed our strategy but we have pursued some of the more non-traditional markets. We’ve done a lot more barge dockings this year than we have Jim:________________ in a long time. We’ve had our people down at the BC Ferries’ Deas Dock facility assisting BC Ferries in their repair and refit work and we have worked off Mike:_______________ site more than we have done in recent history. BCSN: What about upcoming opportunities such as those associated with Ken:________________ the National Shipbuilding Procurement Strategy? CK: We’ll be going after the smaller vessel newRob:________________ constructions that are outside of the big contracts with Irving and Seaspan. There is also more interest in commercial new construction for the local market right now as well. We currently have two proposals for new vessel construction being developed. We were unsuccessful in getting the SeaBus contract. We were very disappointed. I thought TransLink, being a government agency, would have considered the bigger picture and would have recognized the benefits of building locally. With the work going offshore to Damen Shipyards in Singapore,
INDUSTRY INSIGHT Canada gets no benefit from the taxes that would have flowed back and generated additional economic activity or the benefit of the project strengthening the local shipbuilding industry in terms of skills development, especially given that the difference in cost between us and the winning bid was in the order of five per cent. MM: A good example of the cost comparisons is the 100-vehicle ferry Skeena Queen that we designed and built in 1996 for $21 million. Of that $21 million, in the order of 20 per cent of the sale price was paid by the shipyard in taxes to the three levels of government — federal, provincial, municipal, etc. In essence, it was a $17 million ferry compared to the cost to be built offshore. With the SeaBus, those funds won’t come back to Canada and won’t generate any economic activity here. Looking at the NSPS, I see it as a ‘rising tide floats all boats’ scenario. With that much money coming into the industry — more than just Seaspan will benefit. Whether it’s through subcontracting or through an over-flow of work or even incidental benefits like renewing the number of trades people around for the next 40 years, this will keep things alive here. The NSPS means there will be an ongoing industrial marine business here for another few decades at least. It was good to see Seaspan rise to the challenge and go after this work. If this program had been available in the late 1980s, the ships on the NSPS list would have been banged out in no time. You could have dropped the whole program into Burrard Drydock in its heyday and it would have kept the yard open. Almost all countries in the world protect their shipbuilding industry. Britain still builds their government vessels, same with the Americans. It’s great to see our federal government do something to address Canada’s needs. Canada borders three oceans and it’s important for the government to make this kind of commitment. BCSN: What about the tug and barge industry and the fishing sector — what opportunities are you seeing there? CK: We continue to have an aging tug fleet on the West Coast and that presents many opportunities. Owners
have a lot of options either to build new or to modernize their existing equipment. If they are going to build new, we feel we will be very well positioned to meet their needs. Tugs are small, complex vessels and the advantages of importing new tugs from lower-cost shipbuilding nations are greatly diminished. If the owners are going to modernize their existing equipment, they would most likely undertake the work locally. Construction of new barges is different — they’re definitely less expensive offshore. They are simple and the lower cost of labour in the lower-cost shipbuilding countries makes us uncompetitive, even with the transportation costs and the import duty included. We undertake a fair amount of the repair and refit work for the larger fishing vessels, but I do not see their numbers increasing in the future.
MM: There is more work in some areas due to new regulations — escort and berthing tugs, for example — they require big horsepower. Some owners will import 10-year-old berthing tugs and they work just fine so it’s hard to compete for newbuilding projects with that but the tugs still require maintenance and that presents opportunities. For the conventional tugs, people used to say they’ll only last 20 years and then it was 30, then 40. Well it’s 50 years on now. Generally, maintenance is at a high level because of the regulatory regime of Transport Canada. These vessels just keep going and going. BCSN: One might think that the regulations would push tug owners to replace vessels that don’t meet air emission or environmental standards. MM: Rather than a new tug the vessel receives new engines. The ships last far longer than the engine. Engines
Online...Dave Roels’ Photo Essay: Shipyard operations: Photographer Dave Roels provides BC Shipping News readers with an inside look at shipyard operations as he visits a number of shipyards throughout the Lower Mainland. Visit www.bcshippingnews.com/photo to see the results.
July/August 2013 BC Shipping News 15
INDUSTRY INSIGHT CK: It’s a fact of doing business in British Columbia, and operating with higher environmental standards makes for good corporate stewardship. There is a significant cost to this but as long as we are all held to the same standard I have no complaints. BCSN: Chuck, earlier, you mentioned the U.S. shipbuilding industry. Are you able to provide some insight into the competition between Washington State yards and those in B.C? CK: They have comparable wages and costs to us but unfortunately, the U.S. shipyards have access to our new vessel construction and used vessel market but we do not have access to theirs due to American protectionist legislation. The Americans seem to be in a building boom right now, building all sorts of vessels Allied could build. We cannot build for an American vessel owner though. It doesn’t seem fair. MM: The Washington State newbuilding shipyards are relatively busy. The yard in Anacortes is active. Nichols Brothers Boat Builders has recovered from their bankruptcy and are active again. Martinac Shipbuilding in Tacoma is building workboats — the sort of things we used to build. Washington State Ferry Service is building new ferries but they have a policy to only build in Washington State. We have this insane situation, due to NAFTA, where Americans can sell new or used commercial vessels duty free to B.C. yet Canadians are prohibited from selling new or used commercial vessels to the U.S. BCSN: What about future trends for the industry? MM: I believe the coastal marine industry is in a phase of de-industrialization. Using the forestry industry as an
Photo credit: Dave Roels, www.daveroels.com
Photo courtesy of Allied Shipbuilders
are replaced for incentives like reduced fuel consumption or to avoid penalties for emissions applied on older diesels. I just use that as an example. The decision is usually made to upgrade an existing vessel rather than build a new one. BCSN: What about other government regulations? Things like construction standards or perhaps the Delegated Inspection Program? CK: The construction standards in Canada are very high — definitely as high as anywhere else in the world. Allied has routinely undertaken construction and repairs to meet Classification Society requirements so we do not have any problems with construction standards. We have no problems with the Delegated Inspection Program. In fact, we find the Classification Societies very competent and see this as an opportunity. Vessel owners may require some time to adjust to the implementation of the program as class requirements may be different and possibly more rigorous than their experience with Transport Canada. BCSN: Have you had any issues implementing higher environmental standards for the yard? MM: Years ago, industry was not aware of the negative aspects of things like wash water going into the harbour. Today, we wouldn’t even think about releasing deleterious materials into the water — it’s pretty easy to collect wash water and safely treat and dispose it. From what I’ve seen, some rather simple Best Management Practices prepared by the Federal Government have educated the industry and significantly reduced the outflow of harmful material into the waterways. We find that the vast majority of owners are quite prepared to pay for the cost of sustaining the environment as long as it’s done efficiently and realistically.
Chuck consults with Gary Gould, Allied’s Dockmaster. 16 BC Shipping News July/August 2013
Allied Shipbuilders staff circa 2010.
INDUSTRY INSIGHT example, we’ve gone from processing most of our raw materials in local saw and pulp mills to an increase in exporting raw logs. You’ll get people suggesting that we should only process the logs here. I share the desire but the reality is that the world has changed, we’ve seen a decline in the number of pulp mills on the coast so we have lost much of the related skills and infrastructure. The mills that are still operating do so because they already exist. There is no discussion of new pulp and paper mills being built on the B.C. Coast. As well, the commercial fishing industry is a fraction of what it was only 20 years ago. There are some local shipyards
making investments in new equipment and infrastructure — Arrow Marine, Point Hope and Ocean Pacific have all made recent upgrades. And of course, Seaspan is investing millions into the modernization of Vanship. The shipbuilding and repair industry follows the highs and lows of the coastal commercial marine activity and the question becomes one of finding enough work. The local shipyard industry will follow the trends of the resource industries. CK: We feel the future of the ship repair and shipbuilding, especially for Allied, looks very promising. The combination of a major competitor either requiring support to undertake their
About Malcolm McLaren
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ith father Arthur at the helm of Allied Shipbuilders, there was no question about the career path for brothers Malcolm, James and Douglas. Malcolm and Jim sold their majority ownership to Chuck Ko in February, 2012. Diagnosed with Parkinson’s disease in 2005, Malcolm knew that the time had come to move on from shipyard life. He and his brothers worked with Chuck to ensure a smooth transition that would safeguard the continued success of the firm. “I thought the world of the people we’ve worked with,” said Malcolm. “They come in for a coffee and tell us where they’ve been on the ships we have built or repaired often involving great stories about their adventures – it’s a fascinating business to be in. I recall when our joiner foreman retired, he gave a talk to the young guys and told them what shipbuilding was like with all the pieces of raw material coming into the yard by truck and a few months later you launch the vessel and see it sail away under its own power. It’s quite thrilling. Building ships, it’s a great big pulsing machine. It gets in your blood. Just a fascinating business.” Malcolm is married to Roberta with one daughter (Amanda) and two granddaughters.
Roberta and Malcolm McLaren.
Photo credit: BC Shipping News
NSPS obligations or their capacity to undertake other commercial work being diminished; the federal government’s smaller new vessel construction program for non-NSPS shipyards; new BC Ferries work; the aging towboat fleet; and the traditional repair and refit work provide Allied many opportunities. The key is for Allied to be aggressive, and maintain our competence to not only undertake highquality repair work, but to build new vessels as the opportunities materialize. This is the same philosophy Arthur McLaren so wisely chose to direct his company 30 years ago. BCSN For more information, please visit www.alliedship.com.
About Chuck Ko
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or 63 years, Allied Shipbuilders Ltd. had always been owned entirely by the McLaren family. On February 1, 2012, Chuck Ko, a 33-year employee of Allied Shipbuilders, took over the shares of the company owned by Jim and Malcolm McLaren, and joined Douglas McLaren as co-owner of the firm. Photo credit: Dave Roels, www.daveroels.com Chuck was hired by Arthur McLaren, P.Eng in 1980. Arthur, as a ship designer and builder, found Chuck to be an excellent understudy. A Registered Professional Engineer in Naval Architecture and Marine Engineering and a Member of the Society of Naval Architects and Marine Engineers, Chuck has progressed through the company from Design Draftsman to Technical Manager, to Vice-President of Operations, and now into his new role as President of Allied Shipbuilders. Chuck has proven to excel in leading ship construction and refit projects. In the last four years alone, he successfully managed projects valued in excess of $50 million on behalf of Allied Shipbuilders. Chuck credits his success to his wife Sandra. “My wife is the most understanding person in the world,” he says. “No one else would put up with the hours I work. If I didn’t have her by my side, I wouldn’t be able to do this job.” Chuck and Sandra have two daughters who are both afflicted by Myalgic Encephalomyelitis/Chronic Fatigue Syndrome. Oldest daughter Stephanie is a talented writer who does the marketing and graphic design for her younger sister Jacqueline’s Opera Company in spite of their illnesses. “Both are very special,” said Chuck. “They work as hard as they can to overcome the debilitating affects of ME and I’m very proud of them both.” July/August 2013 BC Shipping News 17
HISTORY LESSON
The Coal Harbour wake By Lisa Glandt
Librarian/Archivist, Vancouver Maritime Museum
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“...fond memories of the men and the firms that made Coal Harbour a colourful part of Vancouver’s history for 100 years...”
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n October 22, 1976 the Coal Harbour Club hosted an event to celebrate the maritime history of Coal Harbour. About 300 people attended the reunion, just a small fraction of the hundreds of people that were once employed in the area. Surrounded by historical photographs, the attendees reminisced about the personalities and events that defined Coal Harbour — the construction and repair of vessels by innovative shipwrights, dramatic rum-running adventures during the prohibition years, the first locally built “flying boat” by the Hoffar brothers, and the many industries that supported and thrived in the Coal Harbour marine community. Those in attendance represented some of the once-vibrant businesses: Benson Shipyards, Burrard Shipyards (known for their floating drydock), Sumner Brass, Menchions Shipyards, Hoffer Bros., Osborne Propellers, Easthope Bros., Union Boat Works, Vancouver Shipyards, Western Machine Works, Magnet Electric, Marine Electric, A.W. Le Page, Tommy Yates, Pilkington Blacksmithing, Fred Tuohey Machine Works, Glover Bros.
Coal Harbour circa 1921. 18 BC Shipping News July/August 2013
Electric, Coal Harbour Shipyards, Chappel Bros., Georgia Engineering, Crane Shipyards, Dawe Marine, Black Ball Shipyards, Gobel Engines, Bob Sangster, May Marine, Gardner Diesel, Simson Outboards, Harry Walker, Baker Pattern Works, A. Linton, W. A. Thom Sheet Metal Works, Turner’s Boat Works, and Sinclair’s Boat Works. A special guest of the evening was 92-year-old Peck Easthope who had started building engines in Coal Harbour in 1900. Commradery among those who lived and worked in the area was rekindled during the event and a second reunion was planned for 1979. More than 400 people attended this event which became known as the “Coal Harbour Wake”. The evening further celebrated the history of Coal Harbour and was held in the form of a proper coroner’s inquest — with Provincial Coroner and Master Mariner Glen McDonald in charge of the proceedings. As reported by the media, a flag-draped coffin held centre stage at the reunion. Its contents were carefully selected to remember Coal Harbour and included a caulking hammer, wood shavings, oakum, a can
of paint, gin and scotch bottles, empty beer bottles, a propeller, rope, nails, engine parts and a rudder stock. At the end of the evening the coffin was carried down to the water’s edge at the Bayshore yacht basin and interred into the harbour. Don Tyrell, editor of a publishing firm with offices at Coal Harbour, presented a symbolic trophy at the reunion. In his speech, he remarked “…because of the fond memories of the men and the firms that made Coal Harbour a colourful part of Vancouver’s history for 100 years, I have had a trophy made honouring the memory of those men and firms made from Coal Harbour itself. Known as the Coal Harbour Trophy it is a teredo-carved timber taken from the wall of Burrard Shipyards, who donated the yellow cedar plank from which the base was made. The teredo trophy honours the memory of the skilled craftsmen who built splendid ships, pleasure and commercial, sail and power, repaired and serviced them in the Coal Harbour area over the last 100 years.” The trophy was later given to the Vancouver Area
Photo courtesy of Vancouver Maritime Museum
VANCOUVER MARITIME MUSEUM Racing Council for awarding at their annual interclub sail racing events. In 1990, a small loyal group gathered at the Vancouver Maritime Museum to mark the closing of the Menchion Shipyards, the last operating yard in Coal Harbour. These days, Coal Harbour is known for modern apartments, hotels, restaurants and marinas — many of which proudly display
photographs and mementoes of Coal Harbour’s rich maritime past. Lisa Glandt has been the Librarian/Archivist for the Vancouver Maritime Museum since 2007. She started volunteering at the museum in 1999 sharing maritime stories with school children and now she preserves the stories. She can be contacted at archives@vancouvermaritimemuseum.com. Photos courtesy of Vancouver Maritime Museum
The “coffin” honouring the workers and businesses of Coal Harbour’s early shipbuilding days. After being filled with memorabilia, it was interred into the harbour.
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July/August 2013 BC Shipping News 19
2/7/2013 1:14:42 PM
Huge changes as B.C. shipbuilding industry reinvents itself By Ray Dykes
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dramatic metamorphosis is underway in the B.C. shipbuilding and repair industry. As millions of dollars are applied to the biggest recent upgrade in the industry’s history, the emphasis is going from the repair and refit business of the recent years back to what it was once — the major shipbuilding centre on the North American West Coast. Behind the huge changes underway is the $8 billion National Shipbuilding Procurement Strategy (NSPS) contract won last year which sees Seaspan building non-combat vessels for the Canadian Coast Guard and the Royal Canadian Navy. What’s happening now is the biggest shot in the arm for the shipbuilding industry in decades after years of anguishing over what might have been. The changeover hasn’t been lost on Brian Carter, President of Seaspan Shipyards, who has yards in Victoria, Vancouver and a drydock in Vancouver under his control. He’s part of a comprehensive re-organization at Seaspan which has filled 70 new positions in senior management, and program, technology and production control management as it works toward fulfilling its federal shipbuilding contracts. The first of those, the Offshore Fisheries Science Vessel, is at the design stage (designed by RALion, a joint venture between Robert Allan Ltd. and Alion Science and Technology) and “off and running,” adds Carter, as it heads for eventual delivery in the fall of 2015. His company is spending $180 million on upgrading the Vancouver 20 BC Shipping News July/August 2013
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What’s happening now is the biggest shot in the arm for the shipbuilding industry in decades after years of anguishing over what might have been.
Shipyards and Vancouver Drydock and will be forced to go off its current North Vancouver site to find more warehouse space. “The future is bright and the modernization of our shipyards is ahead of schedule, on track and on budget. “This is an exciting time for young people in the industry as they learn a trade, get a suitable family wage and have employment for 20 years,” says Carter. In all the excitement, however, there are still warning bells sounding from within the industry for those willing to listen. One sees an acute shortage of skilled workers in the next few years as the baby boomer trades people get closer to retirement. “A lot of knowledge will be lost,” says Esquimalt Drydock Company Superintendent & Dockmaster Norm Wickett. “There’s going to be problems fulfilling our obligations on tradespeople.” Another related concern speaks to the mounting need for accelerated skills training. “Skilled people are increasingly hard to find,” says Ocean Pacific Marine Boatyard’s Owner & President Bruce Kempling in Campbell River. “We are playing catch-up and this skills search is going to be a real key to the industry’s future.”
And there are already claims that, in the scramble for skilled workers, yards’ rates and wages are being forced up…perhaps beyond the ability of the smaller yards to compete with the larger ones. Already, a couple of Vancouver Island yards are reported to be in financial trouble as the expected trickle-down from the NSPS work hasn’t happened fast enough for them. And one eastern shipyard company has apparently pulled up stakes and returned home after a spell in Victoria’s highly competitive climate. Here’s a snapshot of how the B.C. shipbuilding and repair industry fared in 2012 and the major projects keeping yards busy in 2013. Victoria Shipyards There’s no bigger or busier shipyard in the nation than Victoria Shipyards in Esquimalt which topped over 1,200 employees in 2012 to keep up with a fever of activity that continues through 2013. “We are still buzzing with projects,” says Malcolm Barker, Vice President & General Manager of Victoria Shipyards Co. Ltd., part of the Seaspan family of companies. A big part of the stability is contract work such as the five-ship Frigate Life Extension Program (FELEX) which
shipyards saw HMCS Winnipeg delivered recently and HMCS Calgary before that. Next up is HMCS Vancouver in the drydock from May-October 2013. Each is given a combat systems upgrade in a process that takes about 12 months with topside finalization. The shipyard is a sub-contractor for Lockheed Martin Canada and its FELEX contract alone involves about 300 workers. But there’s much more going on, says Barker. Victoria Shipyards has an in-service submarine maintenance contract and its own purpose-built repair facility which now holds HMCS Chicoutimi in for what is termed an ELMP (Extended Life Maintenance Period). And the supply ship HMCS Protecteur completed a nine-month refit through September 2012. As well, work continues steadily with SNC Lavalin doing routine maintenance on the Orca Class patrol vessels the yard built and the larger Maritime Coastal Defence Vessels (MCDV). There’s still time for BC Ferries work as it can be squeezed in and the Queen of Chilliwack and Coastal Celebration were in for regular dry docking and class surveys, while the Coastal Inspiration had an emergency docking for shaft repairs. The Ogden Point-based cable repair ship Wave Venture called for piping overhauls, steel repairs and other refits and the barge Nana Provider was
towed to Victoria for $1.5 million in steel work and other repairs after it ran aground in Alaska in March this year. And if that wasn’t enough, in April this year while leaving after a scheduled drydock refit, the American Dynasty, an American Seafoods fish factory trawler, rammed into the berthed HMCS Winnipeg which had just emerged from its FELEX upgrade. While the experts determine exactly what happened, Victoria Shipyards has won a contract to replace the bow on the trawler and do other repairs while the Winnipeg remains tied up. It wasn’t a year for cruise ships because of drydock limitations — there were three handled in 2011 — but the Grand Princess will be in for a regular drydock and refit this December and more are likely in 2014. It remains to be seen whether a new drydock being delivered to Vigor Industrial in Portland, Oregon in 2014 and measuring 292 metres long and 57 metres wide will have an impact on Victoria’s cruise business. Point Hope Maritime Survival for the smaller shipyards is “always a fight” but that must be the way they like it as the good ones like Point Hope Maritime Ltd. seem to manage to survive no matter what. It was another “okay year” for Point Hope in 2012 and General Manager
Hank Bekkering has seen a few in his time. The shipyard offers a 1,200tonne marine railway and turntable with three spur lines, has its own 200tonne floating drydock and a 125,000 square-foot climate-controlled covered assembly shed and attracts a wide range of vessels. Much of the pay cheques for the year came thanks to the navy and its auxiliary fleet. Point Hope did five-year Transport Canada survey work for four Orca Class patrol vessels as well as Maritime Coastal Defence Vessels of the Kingston Class, plus navy tugs and barges. It’s a diet that keeps about 85 employees hopping and Bekkering says the shipyard is “ramping up.” Last year, other major work included the fire-fighting tug Fireband in for a main engine and generator overhaul among other maintenance work and repairs. This year, BC Ferries’ 55-metre Tachek was in for its mid-life upgrade including new Mitsubishi engines and generators and new passenger accommodations among other upgrades and repairs. It will take from April through October to complete the work on the hard. Another Orca, the Grizzly, was in for its five-year ABS survey as was the MCDV Brandon. Other work included the Viking Storm and the Zeal for TC surveys with the usual shaft and sea
Navy vessels like HMCS Winnipeg and Protecteur are keeping Victoria Shipyards busy. July/August 2013 BC Shipping News 21
shipyards was back at the naval base by December. The RCMP 60-foot patrol vessel Lindsay, based in Prince Rupert, was in for its four-year refit which involved a partial engine rebuild, rebuilt Aaronson drives, new Sperry electronics, refurbished interior accommodaOcean Pacific Marine tion and additional minor work. It was This Campbell River boatyard had delivered back to the RCMP in March. a busy 2012 and Owner & President, So far in 2013, the Vancouver Island Bruce Kempling, can’t see why the boatyard has done hull and engine workload shouldn’t continue. repairs to the Comox-based 53-foot His small to medium-sized shipyard search and rescue craft Black Duck employs 35 including its marine store which was damaged when it hit a rock. and Kempling expects a trickle-down The spring has seen the usual bustle effect as the NSPS contracts start keep- of activity keeping the yard “pretty ing the major players busy. “I can’t see full” with installations and painting why there won’t be work all over the work. In late April, the yard completed place,” he says. work on the 65-foot wooden High Seas In 2012, a navy 40-foot aluminum Drifter, a Capacity Forest Products crew vessel, the Egret, used to transport and passenger vessel, which was in for people around the Nanoose testing replanking and a four-year inspection range, was in for a refit which was com- involving the usual work plus a new pleted and delivered back to the Navy diesel hot water heating system and in October. The navy tug Tillicum from desalination water-making machine 1 2013-03-28 09:35:12 EsquimaltBCshipping_may2013_out.pdf had a top to bottom refit and and a new sanitation system.
Daigle Welding & Marine Ltd. The slow economy isn’t helping the industry much, says Steve Daigle, President & Owner of this Campbell River boatyard. With the market down, Daigle focused more on repair work in 2012 rather than new builds but there were still successes to talk about among the 26 employees. One was a 43-foot commercial gooey duck dive boat built and delivered for $1.3 million in 2012. Designed for a crew of three, the boat can stay at sea for up to three weeks. As well, Daigle built eight 12-passenger crew boats throughout the year for various logging companies and BC Hydro and that pace is about the norm for these in-house-designed vessels. Other work included a 32-foot landing craft destined for settling pond work in Fort McMurray and a 38-foot twin diesel pleasure boat for Albertan owners. So far in 2013, Daigle has delivered a new 31-foot research vessel for the Hakai Beach Institute, known as the
Certified System
valve work, plus underwater hull paint and related tasks; and the torpedorange vessel Stikine called for a main engine and generator overhaul and “all sorts of little stuff” including steel work and piping.
MC
ISO 9001 ISO 14001: Pointe-Claire
22 BC Shipping News July/August 2013
shipyards Hakai Explorer, and powered with twin Volvo Penta D4-260s and DPH drives. The $500,000 vessel has its own A-frame for trolling, a troll winch, a hydraulic pot puller and work stations for 12 people in its main cabin. Work on another gooey duck dive boat is under way, this time a slightly larger 46-footer which will allow a crew of four to stay at sea for three weeks. And there’s a Daigle-designed 33-foot single diesel cruiser under construction, plus a small 23-foot research vessel for Simon Fraser University’s Martine Biology Department. With its established EagleCraft brand, Daigle (which means eagle in French) also does vessel leasing. In May, the company launched a new EagleCraft Sportfisher 2300 especially designed for West Coast sports fishing. And owner Daigle was all excited about the prospects of landing a “very, very large contract” for two 43-foot patrol boats and was hoping to hear any day. McTavish Welding Another small Campbell River yard, McTavish was “as busy as ever in 2012,” according to owner Rick McTavish. While it is not positioned close enough to the water for the bigger jobs, McTavish has been on a steady diet of new build 18-foot sidewinder boom boats with eight being completed in 2012, two more underway in 2013 and four options pending. With a crew of seven, McTavish completes loads of logging repair work and also builds aluminum ramps for the aquaculture industry. If he could find the right skilled workers, McTavish says he’d like to hire more at the boatyard, which has been in the family for over 60 years. The company is on pace for its best year ever, he adds. Esquimalt Drydock Company There’s an uncanny roller coaster ride in the employment needs of the Esquimalt Drydock Company and neighbouring Victoria Shipyards, says Superintendent & Dockmaster Norm Wickett. Just as the graving dock becomes hard to access because of defence and other projects, Esquimalt Drydock’s needs diminish with employs dropping from 60 at peak to a summer “five guys in maintenance work” while employment needs of the larger shipyard skyrocket. “It seems to work out just perfectly,” says Wickett as he looks back on another successful year. In 2012, BC Ferries’ Queen of Burnaby docked for a refit which included an underwater survey and was followed by the MV Quinsam in for a sewage upgrade and other underwater work. Other ferries included the Queen of Coquitlam, the Queen of Capilano and the larger Coastal Renaissance and Coastal Celebration, all in for minor repairs. The work on the Coastal vessels was largely performed alongside rather than in the drydock. The largest barge-mounted crane on the West Coast — a 600tonne behemoth — the Amix-owned Arctic Tuk called for survey work and bottom paint. And a regular, the dredge Fraser Titan was in for two weeks needing an underwater survey after running aground during dredging operations on the Fraser. So far in 2013, the Spirit of British Columbia came in for shafting work and underwater mechanical upgrades which
took about three weeks to complete; the Panamax freighter Orient Rose needed a cargo hold inspection and cleaning; the Amix woodchip barge Millbank II called for a power wash and paint; and the ferry Skeena Queen was in for its annual survey and refit. The 1965 vintage Mayne Queen was given an underwater paint, sea valve and anode upgrade and other work with the tasks being completed at Deas Pacific and in drydock in Esquimalt. Just to keep the crews busy, the Esquimalt Drydock Company transshipped 10 yachts in 2012 and so far this year has handled another four. Crews from the Esquimalt company also worked at the old Vito Shipyards in Delta helping prepare the new dredge Fraser 309 that was purchased in the U.S. and given a onemonth mechanical upgrade before going into service. As well, Fraser River Pile & Dredge suction dredge barge Columbia Sceptre and spud barge Peter D. Anderson completed five-year surveys in June. Esquimalt Graving Dock Wooed by numerous suitors, the 86-year-old Esquimalt Graving Dock had another busy year in 2012-2013, dry docking 30 vessels and wet berthing another 63, bringing in total revenues of $10.3 million for the federal coffers in the latest fiscal year. It was a similar year in 2012 to previous years for workload with defence contracts, and BC Ferries keeping the graving dock busy, leaving no room for cruise ship dry docking. The major project underway is a water lot remediation program tackling sediment contamination after 86 years of constant shipping use. Work on the three-part, $40 million project will include an erosion protection sheet pile wall built around the south jetty; open water remediation through the dredging of contaminated sediment and its disposal; and creating a new fish habitat.
July/August 2013 BC Shipping News 23
shipyards A further $101 million is being provided through the Federal Economic Action Plan for health and safety infrastructure projects over the next four years, including an electrical upgrade project now in its design stages.
Vancouver Shipyards It was a good, steady year servicing the Seaspan tug and barge fleet in 2012, says Vancouver Shipyards Vice President & General Manager, Tony Matergio. There were new builds happening, too, with nine chip barges completed during the year and the first of two heavy deck gravel barges completed in 2013. As well, there was a steady diet of third-party ship repairs going through the shipyards, but with a massive $180 million capital works program underway to modernize the shipyards for the upcoming NSPS work, it was a wonder anything could be accomplished by the 250 shipyard employees and their 120 construction worker counterparts, but it was. New assets will include the addition of a 300-tonne Goliath gantry crane and five new buildings to house fabrication, new technology, a fully-automated panel line, a new robotics profile cutting system and a numerically controlled plasma cutting machine. Matergio says the capital works are about 25 per cent complete and will wind up by December 2014. Steel plate cutting for the first NSPS contract — a 55-metre Offshore Fisheries Science Vessel — is expected to begin around April 2014.
Photo credit: Dave Roels www.daveroels.com
Deas Pacific Marine This service arm of BC Ferries had a “fairly busy year” in 2012 but it was mostly repair and refit work plus some capital projects, according to Executive Director, K.S. Ng, with 200,000 man hours and an employment peak of 180. As years go, 2012 was about 70 per cent repair and refit and 30 per cent capital projects and this year that has grown to 90 per cent repair and refit and only 10 per cent capital projects. Looking ahead, Ng says there are 26 vessels due for work in 2014 and 12 to 14 of them will come through the Deas facility. One of the first projects of 2012 was a five-year life upgrade of the Nicola, a former M-Class ferry surplus to the fleet and since chartered to the
On site, Deas has finished a Phase 1 electrical upgrade of its facilities; has added additional workshops and berth space; and is due to spend $50 million on further site works and upgrades over the next 30 years, says Ng. The facility is also two thirds through the process of becoming ISO 9000 and ISO 9001 certified and expects to complete the process by March 2014.
Campbell River First Nation by the Provincial Government. The 20-car ferry had much of its steelwork redone, new sewage pump and holding tanks, new water tanks, upgraded passenger space, a wheelhouse upgrade, asbestos removal, a blasting and paint, new radar and searchlights, plus work on its piping, engine and machinery. It was back in service in August. A $5 million upgrade of the Northern Adventure was completed in early April and the Queen of Chilliwack was also in around the same time through May for a $15 million Phase 2 passenger and crew space upgrade. By July 2012, Deas Pacific had completed a three-year project upgrading the sewage treatment plants on all 35 vessels in the fleet, allowing them to feed into on-shore holding tanks and municipal treatment facilities. So far this year, the Coastal Inspiration completed a floating refit at Departure Bay in Nanaimo by June 15 and the Mayne Queen completed a refit and dry dock on May 29.
The North Isle was brought into Arrow Marine for boom repair, CSI and paint job. 24 BC Shipping News July/August 2013
Vancouver Drydock If 2012 was busy then so is 2013 so far at the Vancouver Drydock, says Matergio of his other key charge in the Seaspan family. Recently, the drydock achieved something unseen for at least 20 years, a triple dry docking when two Foss tugs, Corbin and Lauren shared the space with the local barge ITB Resolution. There have also been several Kirby barges in from the U.S. as well as tugs and barges from Crowley Petroleum also
shipyards from below the border, in for scheduled refits. The Victoria-based cable-laying vessel Wave Venture also used the drydock as part of a standard refit. Matergio says to watch out in June for the docking of the $330 million mega yacht Serene on a three-week routine maintenance call for its Russian vodka baron owner. Allied Shipbuilders Rather than duplicate information already provided in this issue’s Industry Insight (see page 10), suffice to say that President Chuck Ko has managed a smooth transition in his first year as majority owner but is “still catching my breath”. Of the past year, Ko says that activity has been “reasonable” with work on Coast Guard vessels, fishing vessels, tugs and barge repair keeping the shipyard workers busy. “We’ve done a lot more barge dockings than we have in a long time,” he said. He noted that he is pursuing non-traditional work for the yard as well, including off-site work at BC Ferries’ Deas Pacific Marine yard. Just finishing up with the Western Voyager and Western Surf, Allied has also been keeping busy with maintenance, repair and refit work for the George McKay, and the Delcat No.5 and has Active Marine Towing’s tug Goblin in for a lift ashore, clean and paint and hull repairs with Osborne Propellers providing repairs to the propeller. Additional vessels seen in the yard include the Rose Mackenzie, the Renegade, the Bad News and the Hecate Prince. Despite the lack of new construction jobs (albeit fingers crossed on two current bids under consideration), Ko maintains a full complement of tradespeople capable of building new ships. “My priority is to keep the staff working. It would be too difficult to replace them — as an employer, we are committed to the staff — they are the shipyard. It’s our reputation in the balance and it’s important to retain the skills.”
“Things are getting better,” says Brian Charles, Arrow Marine Services Vice President. “The Travel Lift was a great investment and has helped us get about 20 projects of bigger fish boats and tugs; it’s been a positive move.” Continuing work for Ledcor Marine and its six-tug and 13-barge fleet included the June 2012 completion of work on the freight scow Empire 25 which had 10-foot sides added to convert it from a gravel barge into a wood chip carrier. As well, Ledcor called on Arrow to make late modifications to ensure doors fit better on a fleet of 12 new barges built in China. The shipyard also took the former Pacific Towing tug Bandera and repowered it as part of its routine Canadian Steamship Inspection (CSI) for new owners Ledcor who renamed it Storm Bandit. The 330-ton fishing boat Jeana Marie was given its CSI and a paint job, and the yard replaced stern rubber on the Seaspan tug Comox Crown.
By the end of June, work was completed on a rebuild of the U.S.-flagged 70-foot tug Anne Carlander for new owners Harken Towing. The 89-foot fishing boat Pacific Harvester also received its CSI and paint; the tug Schmidt Pride had engine room work and a paint; the 70-foot long tug Cindy Mozel was in for the addition of icebreaker plates and also had her CSI; while the Pacific Cachalot tug Stormforce was in for a CSI and repairs and is due back later this year for an engine replacement. In 2013, Arrow took the newlynamed tug DD Catherwood, the former KG Hodder, and gutted the engine room, repowering with Cummins, doing a new paint job, and a two-winch rebuild. It joined the Catherwood Towing fleet in late January with an inside overhaul as well. Arrow also saw the Prince Rupertbased docking tug Schmidt Dawn and its sister tug, the Schmidt Spirit, in
Arrow Marine Investment in a 330-ton marine Travel Lift has certainly helped lift the fortunes at Arrow Marine Services on Richmond’s Mitchell Island. July/August 2013 BC Shipping News 25
shipyards for repairs and minor work and the Catherwood tug Miller Richmond was in for prop and nozzle repairs and a paint. Fishing boats this year have included the 95-foot dragger Sea Crest now owned by Canfisco which was in for its CSI and a mechanical upgrade; the similar-sized Red Sky tuna boat was also in for its CSI and paint as were the Karenora and Nimpkish II; the 80-foot dragger Viking Moon did her CSI and was given a complete blue strip seal on its underwater hull; the North Isle Canfisco was in for boom repair, CSI, and a complete paint job; and the Cape Spruce was in for a bottom paint and zinc anode replacement plus mechanical repairs. The barge MLT2 owned by Mercury Launch and Tug underwent a transformation — growing by a 30-foot addin section to 100 feet long — and set loose hauling freight in Howe Sound, while Hodder barges 194 and 195 were due to have new spill containment walls completed in June. The landing craft Atlantic Harvester I, which
services fish farms, was given its CSI and also underwent hull repairs. And for Fisheries & Oceans, the fiberglass research vessel Gwaii Haanis II had a two-month refit and CSI, including all new electronics, a repaint, rebuilt cabins and a new 2,000-lb Steelhead davit. That’s quite a load of work for the 28-strong Arrow team, but Charles likes the state of the industry now “with lots to bid on” and the industry picking up even before any NSPS work trickles down. Sylte Shipyard The pride of Maple Ridge had a “pretty good year” according to 85-year-old President, owner and non-retiree, Erling Sylte, who says he “can’t complain at all.” With 14 full-timers on the payroll and Sylte wanting to hire more, the yard specializes in tug boats, both new builds and repairs, plus some fish boat servicing and repair. Two new tugs were built in 2012 — a 49-footer
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for Jones Marine and a 25-footer for Gowlland Towing of Campbell River. This year, Sylte is busy with a 30-foot tug for Gowlland and lengthening a fishing boat by six feet to increase buoyancy. The boss is pondering chasing work to finish two 80-foot fishing boats or build a large tug boat. But, he’s “just a little guy” and doesn’t like all the paperwork involved in the tug quote. So, it looks like he’ll pursue two Australian fishing boat hulls which need everything and are destined to go into service on Vancouver Island. As for the state of the B.C. industry and the market, Sylte says he’s “pretty optimistic” but then “I always have jobs.” ABD Aluminum It was worth a try, but 89-year-old Al Dawson doesn’t think much of working in steel when it comes to boats. An industry expert in things aluminum with co-owner Burton Drody, Al and ABD Aluminum Yachts tried their hand at steel in 2012 to see if it was magic. After building a 64 and 65-foot tug and towboat, Al is convinced steel “isn’t our cup of tea” and aluminum has the lustre once more. The yard got involved in a SeaBus contract with Victoria Shipyards, building a passenger cabin crossover structure, but future project work has apparently gone to Singapore. There’s a 105-foot aluminum fish packer underway since February for the James Walkus Fishing Co. Ltd. of Port Hardy and that should be ready by March 2014 with its 10,660-cubicfoot hold capacity and 1,000 horsepower CAT engine. Known as the MV Amarrisa, the vessel will work local fish farms in near coastal waters. When there’s time, the 14-strong shipbuilding crew at ABD works on a 72-foot aluminum yacht being built on spec. “The B.C. scene is very quiet,” says Al, who surely must be B.C.’s oldest working shipbuilder. Fraser Shipyard Industrial Centre A forced move in a rezoning squabble from land under the Queensborough Bridge on the North Arm of the Fraser River in New Westminster to Shelter Island in Richmond took the wind out of the Fraser Shipyard performance last year.
shipyards Part-owner Elias Haddad, who is in partnership with the Esquimalt Drydock Company, auctioned off much of his equipment in the move as the new site isn’t as big as he had before. He’s had to re-equip and chase smaller work, largely repairs, among the fishing and tug fleets and admits the market is tough, “very, very tough.” In the old yard, he used a 700-ton marine lift. Now he has use of a 150ton lift and a huge chunk of business is unavailable to him. But, help is on the way as the nearby Shelter Island Marina & Boatyard is getting a new 220-ton Travel Lift this spring to service the area’s small marine businesses. Haddad is excited. “It’s going to be much better as I’ll be able to lift some tugs I couldn’t lift before.” And that means wider business opportunities. Meanwhile, the yard has helped on the FRPD dredge 309; performed a CSI and refit for an AMIX tug, and did work on two Campbell River fishing boats, including refits, steel work and even adding a bulbous bow. His crew of 15 is looking forward to better days. Tom-Mac Shipyard It doesn’t take this Richmond yard much to keep busy and it has been busy says Office Manager Kevin Campbell. “We did 100 jobs last year from propeller change to engine removal and install new with gears.” Most of the work was with tugs and most of that with Catherwood Towing and its fleet of 13. The yard did a major refit of a lodge boat used in the Queen Charlottes, including extensive refit of the superstructure, bathrooms and other deck work. And it did work on the Jennel II, a 40-foot tug owned by Black Mount Logging in Squamish including engine removal and reinstall. So far this year, Tom-Mac has helped a Dutch couple sailing around the world in an 85-foot converted fishing boat by repairing its wooden planking, frames and the wooden hull. Pacific Custom Log Sorting sent its tug River Champ in for a new engine and gears; the DD Catherwood called in for a winch rebuild; and another Catherwood tug, Seymour Crown, had a cabin rebuild, a gen set change, and other mechanical and electrical work in May.
Bracewell Marine added two feet to the stern of the Anduril (ex-Haida Provider, ex-Southern Provider) among other modifications to make it a 58-foot Alaska Limit Seiner. Tom-Mac has 16 employees and Campbell says the yard surprisingly has been busy since 2008, right when others were feeling the first impact of the global recession. West Bay SonShip When you’re in the yacht building business and you haven’t had a new build since 2008, there’s good reason for excitement when an order comes in for a 63-foot fiberglass pleasure cruiser. That’s the scene at West Bay SonShip on River Road in Delta as the crew of 20 (and growing again) sets out on a journey that will take up to 12 months restyling its successful 53-footer into something wider and longer for a Canadian customer. President and son of the founder Wes Vermeulen says the repeat buyer was just the news the yard needed as business had evolved into service and refits in the past few years. Now, with a current project rekindling the new build skills, he’s confident it will prompt other such contracts. Meanwhile, the refit and service business is growing healthily at 15 to 20 per cent year over year. Bracewell Marine General Manager Tim Bell would much rather talk about this year than the slow year the Bracewell Marine Group in Richmond suffered through in 2012.
“This year is crazy busy,” says Bell from a yard where the 61-foot pusher tug Miller Mission is being split in two longitudinally to get ready for a truck ride north to Fort Liard in the Northwest Territories. About nine workers have been scrambling over the vessel to prepare it for the road in the biggest dollarvalue project of late. Marine Harvest Canada has the yard busy building a new 13.4-metre fish farm tender Iron Knight and that will take another nine months to complete with the wheelhouse built and work on the steel hull underway. Bell says there are another dozen or more boats in the Shelter Island yard, mainly tugs in for rubber replacement, refits and CSI work. But, at 26 full-time employees, the yard is well short of the 70 it had before it shut down its yacht building division to concentrate on repair and refit. The yard is another that will benefit from the new 220-ton Travel Lift going in this July at the nearby marina. As for the state of the industry, Bell says new builds “suck” with no one doing much of anything. He also says finding skilled trades people such as welder-fabricators is a key issue threatening the industry’s future, but just the same he adds, “hopefully that future is good.” Ray Dykes is a journalist who has worked his way around the world as a writer/photographer. Ray can be reached at prplus@shaw.ca. July/August 2013 BC Shipping News 27
SHIPYARDS Meridian Marine sets up new yard on the North Fraser
R
ecognizing the growing opportunities in the shipbuilding and repair sector, Meridian Marine has relocated to the Fraser River Terminal facility in Richmond to set up its own fully capable shipyard. “The entire footprint of the site that is available to us consists of 4.5 acres of yard, 200,000 square feet of covered workshop area, 6,000 square feet of office space and 500 feet of dockside,” notes Jerry Pedneault, Operations Manager. The move is the next phase of growth for the long-established company cofounded by President Jim McFadden and Vice President Tom Ferns. McFadden and Ferns met while working at Vancouver Shipyards in the 1980s. “In the late 1980s, everything kind of died off and work at Vancouver Shipyards was sporadic,” recalls McFadden, one of three generations of McFaddens who made a career at Vancouver Shipyards. “Tom and I pooled our money, bought a truck and some tools and started out small. It was really just a way to make ends meet while work at the yard was slow.” It didn’t take long before Meridian Marine had built a solid reputation for onsite and enroute repairs and eventually their success led them to set up a second location in Houston Texas, servicing companies like Teekay Corp. With the announcement of the National Ship Procurement Strategy, both Ferns and McFadden saw an opportunity to expand and enhance their services by establishing a presence on the North Arm of the Fraser River.
Pedneault, who was brought in to help manage the expansion, estimates that the industry has a good 20 years of growth ahead of it. Given the expansion here in Vancouver, the decision was taken to close the Houston office and focus on local business development. Now able to offer dockside service to clients in the tug and barge industry as well as smaller class ferries, Pedneault says Meridian will be pursuing “basically anything that will fit under the Oak Street Bridge”. “We’re exploring drydock facilities that would be receptive in this area. We’re looking at a couple of options and design concepts.” Aside from developing drydock abilities, the facilities require little in the way of major upgrades. “We’re just waiting on a final report and recommendations from WorkSafe BC to ensure the site is up to today’s code but other than that, we’re good to go,” said Pedneault. With 18 fully unionized staff at present, Meridian offers everything from repair and refit to new builds. “Our primary goal is have a new build project on the go inside while accommodating dockside repair. The true benefit of this site other than its size, road, rail and water access, is the ability for Meridian to further diversify their offerings outside the actual marine industry. Meridian is now able to explore all opportunities in steel, pipe and related fabrication, including LNG programs that are being entertained, ” said Pedneault.
“We moved in on May 1 and our first project arrived on April 30,” said Jerry Pedneault. 28 BC Shipping News July/August 2013
Top: Jim McFadden and Jerry Pedneault; below: Tom Ferns. As a full-service yard, McFadden cited a list of trades, everything from naval architecture and marine engineering to engine and mechanical services, steel fabrication and much more. And they’re already off to a good start with the first project arriving the day before they moved in. “We moved in on May 1 and our first project arrived on April 30 so we really hit the ground running.” BCSN
SHIP repair Osborne Propellers: Pursuing both old and new markets
W
hile BC Shipping News was on site at Allied Shipbuilders for the Industry Insight article, we stopped by Osborne Propellers to take a look around and ask a few questions. Established in 1935, Osborne Propellers has been a mainstay of the shipping industry in B.C. and, while Bob Osborne has been passed for 10 years now and the company is under the control of the Bell Family, the continuing tradition of high-quality work with propellers carries on — some would say it has even surpassed the reputation of the old company. With Jason Bell in charge of day-to-day operations and production, and Jody Bell in charge of sales, marketing, product development and design, the Bell brothers have been changing their business model to capture vessels outside of their traditional market of commercial tugs and fishing vessels. “Sales and service slowed down significantly after 2007 because we used to do quite a bit of work with the fishing fleet and there is just a fraction of that business left,” said Jody. “Our focus now, while still mainly commercial, is on propellers of all sizes and it doesn’t matter if the vessel is commercial or recreational. We’ve reached out to the marine community to make sure they know we’re here for every type of craft.” And by ‘all sizes’, Jody means it: “The biggest propellers I’ve seen have been off the Sea Launch — each individual CP blade weighed five tonnes.” Osborne is set up to offer a full range of services for marine propellers from repair, reconditioning and alterations to full-custom design, manufacturing or sourcing new propellers.
While they still manufacture a selection of specialty propellers here in B.C., Jody has created partnerships with other propeller manufacturers around the world, including suppliers in America, Europe, Asia and Australia. “Working with other suppliers enables us to provide a wider selection of propeller designs, sizes and materials to our customers. Our partnerships allow us to supply propellers faster and at competitive pricing — and our clients appreciate the flexibility and choice.” In addition to the departure from the marketing and business models of the old Osborne Propellers, Jody also notes that upgrades to infrastructure are being investigated, including the addition of dynamic balancing for higher speed and higher accuracy propellers, especially used in high speed work boats and the recreational market. Osborne’s current use of sophisticated software programs used by naval architects to properly size and develop propellers for different types of hulls is one characteristic that sets them apart from other shops. “We can calculate, based on a current set of data with engine specifications and gear, what changes need to be done to the propellers to meet the owner’s requirements. Sometimes, that will mean a simple job on their existing propeller but if it means a new one, we can use the same calculations to make sure the right propeller is chosen.” As the largest propeller repair facility on the West Coast, the Bell brothers are not only maintaining the traditional markets established by Bob Osborne over 78 years ago, but are well on their way to establishing a hold on new markets in the shipping industry. BCSN
Osborne staff (l to r clockwise): Jason Hanos, Pitcher; Murray McPhail, Senior Pitcher; Nijay Singh, Machinist. July/August 2013 BC Shipping News 29
Industrial Marine Training and Applied Research Centre (IMTARC)
Collaboration and support crucial to the success of the industry By Captain Alex Rueben, Executive Director, IMTARC
T
he West Coast shipbuilding and repair industry is undergoing an industrial renaissance. In October 2011, the federal government announced the results of the National Shipbuilding Procurement Strategy (NSPS), identifying Seaspan Shipyards as one of two successful proponents on the $33 billion program to construct combat and non-combat vessels over the next 20 years. Seaspan was awarded the rights to construct noncombat vessels of over 1,000 tonnes, an agreement that will eventually see $8 billion in shipbuilding contracts. The federal government is also allocating $2 billion towards the construction of vessels in the federal fleets that are less than 1,000 tonnes: these shipbuilding contracts are being made accessible to shipyards other than the NSPS yards. Prior to the NSPS announcement, firms on the West Coast had already won major defence contracts valued in excess of $700 million. A recent study conducted by a B.C. Governmentsponsored Workforce Table determined that annual revenues in the B.C. shipbuilding and repair industry are projected to climb from an average of $265 million (2004-2010) to over $1.4 billion by 2018. A total of $9.9 billion in revenue is projected in the period 2012 – 2020. This translates into over 2,000 new direct jobs in the sector by 2020 and a further 2,500 indirect jobs. In addition to identifying a significant growth in employment, the Workforce Table also produced a `Productivity and Competitiveness Road Map` to identify what the industry needs to do to enhance productivity and increase competitiveness, not only within Canada but also internationally.
30 BC Shipping News July/August 2013
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...annual revenues in the B.C. shipbuilding and repair industry are projected to climb from an average of $265 million (2004-2010) to over $1.4 billion by 2018.
And so the question became `what can we do to support enhanced productivity for the industry through workforce development and the application of new technologies and materials as well as process improvements?’
The Solution The creation of the Industrial Marine Training & Applied Research Centre (IMTARC) is a logical response. IMTARC is a scalable value-adding system integrator for workforce development and applied research that contributes to the competitiveness and productivity of B.C.’s shipbuilding and repair industry. The Resource Training Organization owns and operates IMTARC on behalf of the industry and yet it is the industry that sets the direction and priorities for the Centre. IMTARC is a 4,000-square-foot training facility that comprises two classrooms each designed for 24 students but with capacity of up to 40. Each classroom is equipped with full audio-visual capability including electric screens, LCD monitors and digital light projectors and controls. Given the diverse learning needs of a student population that ranges between 18 and 65 years of age, the classrooms are also equipped with ample whiteboards and paper flipcharts. To cater to computerbased learning, the Centre is fully hard wired throughout with Category 6 connections as well as full wireless
capability. For software applications and advanced computer-based training there is a 12-station computer lab with powerful desktop computers that are backed up by a MS server. There are also offices for use by instructors or to conduct interviews and assessments. The facility is located adjacent to the Esquimalt Graving Dock in order to support the close integration of training into the workplace. The construction and outfitting of IMTARC, costing approximately $1.3 million, was funded by the federal department of Western Economic Diversification and by industry including Seaspan Shipyards, BC Ferries, Babcock Canada, Lockheed Martin Canada and Thales Canada. While the initial efforts to create IMTARC date back to 2008, the Centre’s construction did not begin until August 2012. The Centre received its occupancy permit in early February 2013 and is now in full operation. IMTARC is operated as a not-forprofit entity and is mandated to become self-sustaining by the end of its first year of operations. To do this it needs to keep its costs to a minimum and therefore only employs two full time staff; an Executive Director and a Centre Administrator. As the name would suggest, the mandate of IMTARC is to focus on two areas; workforce development and applied research.
skills training terminology course; and leadership courses focusing on conflict resolution, interpersonal communications, and mentoring and coaching (all in an industrial environment). IMTARC has contracted with multiple training providers in developing the curriculum and learning resources for these courses and aims to have all of these courses on stream by November 2013. Undertaking finite workforce development projects where IMTARC can add value. These include the recent completion of a pilot project carried out in partnership with the Industry Training Authority (ITA) where an Occupational Certificate for Shipyard Labourers was developed and then offered to industry through a detailed assessment process. The pilot involved 50 experienced shipyard labourers and was closely audited by the ITA. The pilot will now
transition to a steady-state process where IMTARC is a registered assessment agency for the Shipyard Labourer credential. IMTARC will also focus on supporting the development of skills and qualifications of under-represented labour market groups such as aboriginal peoples and women. This effort will be commensurate with the demand for employment generated by the industry. In this context, IMTARC is involved with the Coastal Aboriginal Shipbuilding Alliance (CASA) — a project sponsored by the federal department of Human Resources and Skills Development Canada which will be implemented in partnership with a number of First Nation employment agencies. IMTARC will help provide a full range of training options including essential skills, pre-employment training, specialty and high-end skills training.
Photo credit: Dave Roels www.daveroels.com
Workforce Development In workforce development there are four lines of operation. Leasing out learning spaces to clients in the marine industry. The classrooms are leased out at $350/day and $225/half day and the computer lab is leased out at $750/day and $450/ half day. Currently the Centre is running at about 45 per cent occupancy and has hosted 52 training courses to date totalling over 1,060 students. Brokering training courses. IMTARC canvasses the shipbuilding and ship repair sector on specific training needs and then finds private or public training service providers that can deliver the requested training. In this context, IMTARC has created working partnerships with multiple training providers that offer a broad range of courses including software applications, project management and specialty skills. The training is delivered at the IMTARC facility in Esquimalt or can be delivered at other locations in B.C. where there is sufficient demand (e.g. North Vancouver). The value-added component provided by IMTARC to industry clients is the reduced cost of training through achieving economies of scale (24 seats) and the opportunity to learn together with large, medium and small employers coming from private and public sectors. In brokering courses, IMTARC does all of the organization and administration (including registration and gathering of fees), leaving the training service provider to simply focus on teaching the course. Development of new curriculum. In the past several years there have been a number of studies, including a needs analysis and a labour market skills study, that determined the need for curriculum specifically targeted at the industry. Within the framework of a Labour Market Partnership Agreement, the B.C. government has allocated $550,000 to IMTARC for the development of: a Ship Repair Entry Level Training Course; an industrial marine estimating course; an industrial marine planning and scheduling course; an industrial marine Allied Shipbuilders crew at work.
July/August 2013 BC Shipping News 31
skills training Applied Research An objective of the NSPS is to have the selected shipyards invest in infrastructure, design capability, supplychain relationships, business processes, and importantly, the application of new technologies to become more efficient in building new ships for the federal government. It is intended that these improvements, by adding to the
sector’s productivity and competitiveness, will position it to more aggressively pursue and secure commercial business both in Canada and offshore. To further this goal, IMTARC will: • focus on common issues with a goal of reducing the cost of building, repairing and maintaining ships through: manufacturing best practices (lean and six sigma);
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government and industry collaboration; breakthrough technologies and processes; and rapid and widespread implementation. • support the transfer of best practices and leading-edge manufacturing technologies and processes into the industry by leveraging off provincial, national and international contributors in applied research relevant to the shipbuilding and repair industry. • become a repository of information in this context and will act as a catalyst and facilitator for building further knowledge and applications. • co-ordinate and inform industry stakeholders on applied research efforts. • work with industry to determine the skill and knowledge upgrading that is required by the workforce to apply selected progressive technologies and processes, and then work in concert with service suppliers to design, develop and deliver targeted training. IMTARC will also focus on working with industry and government in supply chain development; specifically creating a learning and enabling framework for lower-tier suppliers (Tier 2 – 5), which are normally the small and medium-sized business enterprises that want to become part of the supply chain to the sector. Conclusion The IMTARC motto is ‘Striving towards enhanced productivity’ and all of its operations are geared to helping the shipbuilding and ship repair sector achieve that outcome. It is, however, the industry that needs to use IMTARC to best effect and leverage its capabilities to advance workforce development and applied research to bring the sector into the forefront of B.C.’s continued economic growth. For more information on IMTARC and its operations, please visit the Centre’s website at www.imtarc.com. Captain Alex Rueben retired from the Royal Canadian Navy in 2012 after 35 years of service. A marine engineer, he held various senior appointments in the RCN concluding as Chief of Staff of the Navy on the Pacific Coast. Captain Rueben is the founder of the West Coast Shipbuilding and Repair Forum and was the Chair of the 2012 BC Workforce Table on the Shipbuilding and Repair Industry. He can be reached at alex.rueben@imtarc.com.
32 BC Shipping News July/August 2013
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LABOUR Research highlights critical needs for an increased shipbuilding and repair workforce
F
ollowing the announcement of the National Shipbuilding Procurement Strategy (NSPS) contract to Vancouver Shipyards in October 2011, the BC Government established a BC Shipbuilding and Repair Workforce Table to set about ensuring B.C. would be able to satisfy workforce requirements in the shipbuilding and repair sector. The Table — whose work and research was funded through the Resource Training Organization and the Ministry of Jobs, Tourism and Skills Training under the Canada-BC Labour Market Development Agreement — was charged with confirming human capital requirements associated with the NSPS; reviewing labour supply projects and existing and planned training programs to identify opportunities and gaps; and developing a strategy that would provide guidance for post-secondary training investments. The resulting draft report — Towards 2020: BC Shipbuilding and Repair Industry Workforce Strategy — highlighted key strategies that would be able to guide workforce development through to 2020. It also recognized the need for ongoing co-ordinated efforts in skills training and, to this end, the B.C. Shipbuilding and Ship Repair Board (SSRB) was formed. With an impressive membership list that includes senior representatives from industry (such as Chair Mark Wilson, VP, Engineering at BC Ferries, and Vice-Chair John Shaw, VP of Business Development at Seaspan), labour, and government, the purpose of the SSRB is to provide industry leadership, co-ordination and integration of cross-industry workforce development, technology and process development, and industry development projects. This includes finalizing and implementing an industry-wide Shipbuilding and Repair Industry Human Resource Strategy, using the Workforce Table’s Strategy as a starting point. One important result of the Table’s work was the labour market research — the most comprehensive analysis
34 BC Shipping News July/August 2013
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Employment in the B.C. shipbuilding and repair sector is projected to increase by 47 per cent by 2016 and by another 15 per cent through 2020.
of the B.C. shipbuildng and repair labour market and training needs completed in decades — conducted as part of the R.A. Malatest & Associates Labour Market Analysis Report. It showed significant growth in new job openings in the industry as well as the directly associated metal plate and fabrication sector and projected
almost $10 billion in new shipbuilding and ship repair in B.C. to 2020, including $3.3 billion that is outside of the NSPS work. The Malatest report provided a baseline of shipbuilding and repair employment (for 2012) as well projected employment, job openings (factoring in employment growth
Table 1: Employment Baseline – Shipbuilding & Repair and Metal Fabrication (2012)
Table 2: Projected Workforce – Shipbuilding & Repair and Metal Fabrication (2016 & 2020)
Table 3: Projected Job Openings* – Shipbuilding & Repair and Metal Fabrication (2016 & 2020)
LABOUR and retirements) and projected skills gaps as well as training gaps. The following information is taken directly from their summary report. 2012 benchmark Based on a survey of public and commercial shipyard employers, B.C.’s shipbuilding and repair workforce was estimated at 3,200 workers, of which about two-thirds were employed in commercial operations located in the Lower Mainland and Vancouver Island/Coast. The workforce is dominated by skilled trades workers (66 per cent) and workers in marine-specific trades (14 per cent), such as shipwrights and marine fitters. “Skilled trades” refers to non-marine-specific trades needed by many industries (e.g. carpenter, millwright, welder, etc.). The Malatest research included an analysis of the associated metal fabrication workforce that supplies products and services to B.C.’s shipbuilding and repair sector. Manufacturers located in the Lower Mainland and Vancouver Island/Coast will be particularly impacted by the shipbuilding sector’s new build program. Many of the workers employed in metal fabrication require skills and training similar to the shipbuilding & repair workforce. Malatest estimates the workforce to be 3,198 in 2012; combined with related metal fabrication jobs, the 2012 workforce is estimated at more than 4,600 workers (Table 1). Projected employment Employment in the B.C. shipbuilding and repair sector is projected to increase by 47 per cent by 2016 and by another 15 per cent through 2020. The workforce will expand by almost 2,000 workers over this period. This translates into an average annual growth rate of 6.9 per cent — significantly higher than the provincial average annual growth of 1.6 per cent. Metal fabricators located in the Lower Mainland and Vancouver Island/Coast are expected to add 750 new jobs by 2016 and another 250 jobs through 2020. The combined workforce is projected to exceed 7,600 workers by 2020 (Table 2). Based on employment growth and replacement demand due to retirements, nearly 2,900 job openings are projected by 2016 and more than 4,200 job openings by 2020 in both the shipbuilding and repair and metal fabrication sectors. The vast majority of job openings will occur in the skilled trades, marine trades and manufacturing occupations. Nearly 2,400 job openings are projected for skilled trades workers by 2020 — an average of 265 openings each year between 2012 and 2020 (Table 3). Projected gaps Based on the provincial government’s occupational projection model, skills gaps are projected for all shipbuilding and repair occupations through 2020. Gaps will be greatest in the skilled trades and marine trades, owing to the large share of the industry workforce that these occupational categories represent. Filling these requirements will be particularly challenging in the near term, as the majority of employment growth is projected to occur up to 2016. Continued reliance
on alternative sources of labour, such as hiring from other companies and/or industries, is no longer considered a sustainable long-term strategy as other industries will be facing many of the same recruitment challenges for most of the same occupations. Meeting the demand for skilled workers is challenged by several factors, including a lack of training and upgrading opportunities for new and existing workers. With the exception of apprenticeship training in support of the skilled trades, the shipbuilding and repair sector has managed without the benefit of public training support in most other occupations, including the marine trades, mid-management production, and critical function and support occupations. Although provincial education and training programs exist that could potentially help meet skill requirements, very few are specific to the marine sector. The importance of formal training and upgrading specific to the marine sector cannot be overstated. Skills gaps are most challenging in those occupations where training programs are lacking or non-existent. Education and training gaps are a major risk to the shipbuilding and repair sector going forward, particularly as it prepares to take on the challenge of building new vessels under the NSPS. The new build program is considered a “once-in-a-generation” opportunity to train and develop a shipbuilding workforce capable of serving the industry well beyond 2030. While training and education is a key concern for the sector, employers and unions cannot ignore the need to also take action on attraction, recruitment, retention and career development strategies to ensure a growing, sustainable sector.
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marine engineering New Master’s in Naval Architecture and Marine Engineering program starts in September
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n anticipation of the intended ship“...with the active engagement of many industry professionals, stubuilding contracts, the University of British Columbia’s Faculty of Applied dents will be immersed in a comprehensive curriculum that...will Science has joined forces with marine industry leaders to develop a new Naval equip [them] with the knowledge and skills needed to excel...” Architecture and Marine Engineering (NAME) stream of the Master’s Degree in Mechanical Engineering. Students program. “The coming decade will see be directed toward the university over entering this stream will take a special- a major increase in shipbuilding pro- the next 10 years for the development ized set of courses that draw material jects in Canada, and these will need of the new NAME program. Starting from Mechanical, Civil, and Materials specialist engineers. UBC recognizes in the spring of 2012, a committee Engineering, and that focus specific- the importance of a highly skilled and of UBC faculty and industry repreally on the design, construction, main- educated workforce ready to meet the sentatives met to develop a prelimintenance and operation of waterborne needs of this growing industry, and ary plan for the program, which was so has developed these new courses in then approved by the Dean of Applied vehicles. “UBC has a long tradition of exper- response to that need. Graduates from Science last May. With the help of tise in the related areas of naval archi- this stream can expect to walk away these industry representatives and factecture, ocean engineering and coastal from UBC into rewarding careers as ulty from the University of Michigan’s NAME program, UBC is now working engineering, with many current and tomorrow’s leading naval architects.” Contingent upon the forthcoming on developing the program’s eight new former faculty members in these fields,” said Professor Michael Isaacson, Ph.D., shipbuilding contracts, UBC antici- graduate courses and two undergraduBCSN July Ship Repair_Layout 1 5/2/13 2:53 PM Page 1 $4 million from industry will ate courses. pates that P.Eng., Director of the new NAME
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marine engineering While UBC currently offers a Naval Architecture specialization within the Thermofluids option of the BASc MECH program, it was felt that developing a Masters-level program would allow for the comprehensive and interdisciplinary education necessary to prepare students for immediate work in the industry. “With the combined expertise of faculty in Mechanical, Civil and Materials Engineering at UBC, and with the active engagement of many industry professionals, students will be immersed in a comprehensive curriculum that synthesizes theory and practice, has a focus on design and hands-on experiences, and will equip students with the knowledge and skills needed to excel in one of the world’s important and fast-growing industries,” says Professor Isaacson. The MEng in Mechanical Engineering requires a minimum of 12 months for completion and includes an intensive set of courses, which in the NAME stream will culminate in a capstone ship design project, and a 12-week internship with a company or other organization. In addition to general requirements for admission into a Master of Engineering program at UBC, applicants to the Naval Architecture & Marine Engineering stream will also need to meet the specializationspecific requirements, which include a bachelor’s degree in Civil, Materials or Mechanical Engineering or equivalent, and the completion of prerequisite courses in Mathematics, Engineering Economics, Structural Mechanics, Fluid Mechanics, Automatic Controls, Metals and Fabrication, and Thermodynamics. The program’s 12-month timeframe covers coursework done between September and April, followed by the design project in May and the internship from June to August. Although a Master’s program, NAME does not require a thesis or research and will instead focus on practical applications that will enable students to practice professionally in the marine industry. The curriculum (pending Senate approval) consists of: • Introduction to Ship Structures • Introduction to Ship Hydrodynamics
• • • •
Advanced Ship Structures Advanced Ship Hydrodynamics Ship Dynamics and Control Ship Production and Industrial Engineering • Shipbuilding Project Management In addition, students will take on a Computer-Aided Ship Design Project — a capstone design project designed to give students experience in the preliminary design of a special purpose ship. Students work individually and in teams, using advanced design software and databases, to design a vessel according to specified criteria.
Following successful completion of the theory portion of the program, students will undertake a Shipbuilding Internship for the practical portion. The internship involves 12 weeks full-time work, with a focus on either Design or Production. The internship will be a paid position with a sponsoring company or agency. It is expected that the new courses will be approved and ready for registration this July, and student applications are already being accepted for the September 2013 cohort. For more information, please visit: http://name. engineering.ubc.ca.
Naval Architecture & Marine Engineering Program Advisory Council
UBC Members • Sheldon Green — Committee Chair; Head, Naval Architecture & Marine Engineering; Head, Mechanical Engineering • Michael Isaacson — Director, Naval Architecture & Marine Engineering • Jon Mikkelsen — Associate Director, Naval Architecture & Marine Engineering • Warren Poole — Head, Materials Engineering
• Iain Braidwood — Manager, New Build and Projects, Teekay Shipping, Vancouver • Richard W. Greenwood — Rear Admiral, Royal Canadian Navy (Ret’d) • Dan McGreer — Principal Engineer, STX Canada Marine Inc., • John Shaw — Vice President, Government Relations & Business Development, Seaspan Marine
• Reza Vaziri — Head, Civil Engineering
• Don Smith — Captain, Commanding Officer, Fleet Maintenance Facility CAPE BRETON, Royal Canadian Navy
External Members • Robert Allan — Chairman, Robert Allan Limited
• Ben Thompson — Marine Business Development Manager, Lloyd’s Register North America
July/August 2013 BC Shipping News 37
marine engineering SAE BC / SNAME & CIMarE joint event
LNG engines for ships: state of affairs By Colin Keddie, P.Eng, SAE BC, Board Member; CIMarE and SNAME member
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ollowing-up a joint SAE / SNAME / CIMarE event last year on LNG ships, an informative session surrounding LNG marine engines was held at the Wesport Innovations office in late May. LNG terminals are a hot topic these days and with economic incentives caused by rising fuel prices, LNG ships are coming into brighter focus. The added environmental benefits of lower emissions also make this technology a desirable solution to transportation needs of many kinds. The purpose of this event was to keep members abreast of the latest technologies and information available, and to showcase some of the local companies involved in this pursuit. The event was extremely well received with full attendance from a wide cross-section of industrial
38 BC Shipping News July/August 2013
interests. Thanks to all who attended, our speakers, and especially to Westport for providing the location, coffee and registration ID badges. This was a successful collaboration between four different society groups, including: SAE BC (Society of Automotive Engineers, BC Branch), SNAME (Society of Naval Architects and Marine Engineers), CIMarE (Canadian Institute of Marine Engineers), and ASME (American Society of Mechanical Engineers).
Recognizing the advantages of pooling networks and resources, the four associations were able to successfully come together for a common purpose. This is truly a case where the whole is greater than the sum of the parts. Westport’s Director of High Horsepower Partner Development, David Mumford, led off the speakers with his overview of Westport’s LNG technology portforlio. He is currently responsible for Wesport’s new “offroad” program initiatives, including collaboration with Caterpillar, EMD and others. Next, Tony Vollmers from STX Canada Marine discussed LNG ships from a design perspective and the challenges that are involved in the arrangement of the LNG systems onbaord. Tony is the lead mechanical engineer at STX Canada Marine, and the Vancouver Branch Chair of the Canadian Institute of Marine Engineers (CIMarE). Since 2010, he has been involved with LNG and gas propulsion including design work on the 94-metre Quebec STQ ferry and the Harvey Gulf, North America’s first LNG platform supply vessel. Tony discussed some of the pros and cons of LNG ships, and stated that this technology can be applied to many types of vessels with due consideration. Following a catered lunch in which networking and discussions of various topics were abundent, George Coman from Geco Marine gave a presentation on behalf of ABC Diesel. Dual-fuel engine technology was showcased as a proven solution where fuel sources may be variable. Their engines can seemlessly switch over from diesel to an LNG feedstock without interuption
marine engineering of power. ABC is a pioneer in dual-fuel technology into medium speeds over 20 years ago and their engines are famous for robustness and reliability. Our final presenter for the day was Matthias Teichrieb, a marine project engineer at STX Canada Marine. He is a Transport Canada certified First-Class Marine Engineer and has been involved with several new build projects and extensive refits and conversions in shipyards in both North America and Europe. Matthias provided the appreciative audience with a glimpse of the future for the LNG marine industry on the West Coast. Matthias is a team leader for some of the tasks of the West Coast LNG joint industry project currently underway. The West Coast LNG project is focused on the use of LNG on the West Coast and aims to identify and address barriers for LNG as a marine fuel in Canada. The estimated $1.2 million project involves 18 participating organizations including Port Metro Vancouver, BC Ferries and Seaspan along with marine classification societies, technology and services providers, standards development groups, government, academia, and natural gas producers and suppliers. The project is under the overall direction of the Canadian Natural Gas Vehicle Alliance (CNGVA). STX Marine Canada is the lead consultant for the project. The final thought of the day was with respect to future LNG discussion events, where we would like to consider when/where and what should be our next focus.
Clockwise from top left: David Mumford, Tony Vollmers, George Coman, Matthias Teichrieb and Colin Keddie. To provide feedback or suggestions for addition collaborative events, please visit any of the association websites: www.saebc.org, www.cimarevancouver.ca, or www. sname.org.
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The new ship of state By Jaya Prakash
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Environmental consciousness and its protection are indeed the buzzwords in Asian yards and elsewhere.
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owards the closing days of May 2013, French container giant CMA CGM unveiled the largest container box ship it could ever have to its credit. The Alexander Von Humbold unsurprisingly was built by one of Korea’s leading yards, Daewoo Shipbuilding & Marine Engineering. Measuring 396 metres long with a width of 54 metres and a draft of 16 metres, it is indeed a mega-ship capable of unloading some 16,000 boxes — except that some day in the near future, Maersk — the other leviathan in the shipping business — will ‘kick’ it down its top billing spot when it launches its huge monster-like versions in the Triple-E type vessels. The introduction of these new big mega ships — dwarfed perhaps only by the military hardware seen in aircraft carriers — now possibly marks the coming of age, or even the dawn of a new age in container or other types of shipping. Not only do ships of such huge sizes pose every conceivable kind of challenge from the calling at ports to potentially triggering safety concerns when they traverse the narrow waterways of the Malacca or Bosporus straits, these moving conveyors of trade will henceforth be the new face of global
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maritime shipping and shipbuilding in the years and decades to come. Just taking a simple glance at global trade figures will in itself make it easy to understand why big is not always awful, but beautiful and vitally essential to lubricate the wheels of trade, maritime finance and eventually of shipbuilding itself. Since the euphoria of the North American Free Trade Agreement (NAFTA) in 1994 and an accompanying explosion of sister agreements all over Asia; global trade has hardly stopped growing. The US-Korea Free Trade Agreement alone gives an espy into how the breaking down of tariffs, quotas and trade barriers potentially adds to a nation’s GDP and, by extension, the effects it creates along that supply-chain for it to end at shipbuilding and ship christening. The United States International Trade Commission estimates the reduction of Korean tariffs and tariff-rate quotas on goods alone to add $10 to $12 billion to the annual U.S. Gross Domestic Product, and around $10 billion to annual merchandise exports to Korea. That FTA with Korea, it added, was the most commercially significant free trade agreement in two decades, though that figure
must somewhat pale if compared with the ASEAN-China FTA. Green is the name of the game Thus it does not become hard to understand why increased trade volumes automatically lead to increased ship capacity and for shipbuilders from Korea to China to Malaysia and Indonesia to depart from the building models of the old to embrace the imperatives of the present. The rationale behind the Triple-E types is simple, says Thomas RiberKnudesn, chief executive of Maersk Singapore. “Because they are environmentally friendly and give unmatched economies of scale and efficiency,” he told BC Shipping News within the context of today’s era of modern shipbuilding. Environmental consciousness and its protection are indeed the buzzwords in Asian yards and elsewhere. Analyst Park Mu-Hyun of Korea’s E-Trade Securities, when commenting to AsisSis said: “Ship owners aim to invest in fuelefficient, eco-friendly vessels....”. Inferentially, that statement can only mean the future belongs to yards and naval architects specializing in green expertise. Eco-friendly vessels are also the preferred choice of shippers thus giving yards implied inference that the next generation of their ships have to be both environmentally-friendly and large because to give shippers what they have always sought — economies of scale. The trigger for this new radical thinking has been the continually escalating price of oil; the outbreak of fresh global environmental consciousness targeted
asian shipyards only wishes banks would allocate more funds to shipbuilding companies. Indonesia, according to well-placed sources in the Indonesia Ship Owners Association (INSA), takes what he calls ‘hand-me-downs’ from Malaysia, Korea and Japan to service its domestic more than its international market. “It is not competitive [to build vessels]” he added, owing to the prohibitive cost of bank loans where the ratio stands at 30 per cent equity and the rest being largely debt. The most puzzling aspect is that the banking hurdles are placed despite widespread recognition that Indonesian yards have good ability to build container vessels such as those in PT Dock Koja Bahari, PT PAL Surabaya and a few shipyards in the outlying industrial hub island of Batam. A bigger worry for Indonesia is the changing face of its port modernization program in the country. Most ports are being increasingly moulded to handle containerized rather than generalized cargo due to the nation’s rapidly growing international profile and the onrush of manufacturing investments pouring into the country. Yet to its own self-afflicted detriment, Indonesian shipbuilding has hardly, if ever, powered up to the leagues commensurate with its potential and expertise. It is now believed that shipbuilding firms need some Rupiah 5.7 trillion (USD$5.8billion) in investment to improve their global competitiveness. This would be spent mostly on increasing shipyard capacity from 225,000 tons gross tonnage to 500,000 tons. According to estimates from the Indonesian Shipping and Offshore Association, the nation has more than 9,000 vessels and needs an additional 600 ships and vessels to meet the nation’s economic imperatives. Fuelling that urgency further is a growing demand for the introduction of newer vessels so the country can be rid of the second-rate ones it took from its Asian neighbours and adequately safeguard the cargo and the lives of its seafarers. Thus it is not hard to understand why Indonesia, like the poster boy before it, Vietnam, should be seeking foreign investors for its shipbuilding programs. As with Indonesia, the spitting image of surreal conditions also prevails over Malaysia, although a touch more promising than what Indonesia puts forth.
at shipping; the pollutants bunker fuel emits into the atmosphere coupled with revolutionary new steps taken by Singapore’s Keppel Shipping and their likes to develop new LNG-type ship engines and last but not least, increased trade volumes which will conceivably be better handled if only a few large ships ply the world’s ocean surface rather than a multitude of smaller craft. In Park’s view, eco-ships will steadily replace all existing tonnages; courtesy of the oil ‘factor’. And if current trends are anything to go by, the prognosis will be greater investment in mega containerships; something naval architects, yards, marine insurers, engine and steel manufacturers will have to ponder about deeply in the years ahead.
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Only if Indonesia stirs.. Forget Vietnam. The S-shaped peninsula that boasts of a 3,200-kilometre coastline and which seemingly appeared to be on the cusp of being the next shipbuilding giant is now all but a damp squib. Talk these days in Asia is increasingly of Russia and perhaps in the not too distant future of Philippines as the next shipbuilding titans. Yet the nation that should and could have caught everybody’s attention and which has the largest population after China and India, has not been able to quite fire up the imaginations of peoples’ beyond the borders of its vast archipelago of 17,000 or more islands. Indonesia may have not liked that appellation but it is beginning to look increasingly plausible that Jakarta may have lost an eye to its commercial chance in shipping. In its latest report, the World Bank says Indonesia continues to post significant economic growth. Even as recently as of March 2013, the country’s economy baseline outlook for growth was expected to be 6.2 per cent in 2013 and increase to 6.5 per cent in 2014. Indonesia’s gross national income per capita has steadily risen from US$2,200 in the year 2000 to US$3,563 in 2012. The investment climate, the bank added, though still positive, may also be impeded by regulatory uncertainties and shortcomings in infrastructure provision — the most glaring of which rightly or wrongly could well have been in the nation’s shipbuilding sector. In a recent newspaper report, the Jakarta Post said expansion of the shipbuilding industry is hamstrung by high borrowing costs and a lack of funds. Another obstacle is an acute dependence on raw materials and ceaseless conflicts over land ownership despite the passage of a law in 2011 that seeks to adequately compensate landowners for the acquisition of their holdings. That new law, in the words of lawmaker Daryatmo Mardiyanto, is especially necessary because foreign investors seek certainty — an important consideration as the nation embarks to woo foreign capital. Yet if something is to come out of all of these, then it surely must be a case of two steps forward and one step back for Indonesia. “Local bank interest rates are higher than those in foreign countries,” Harsusanto, president-director of stateowned naval vessel operator PT PAL, Indonesia said. He
The Damen Shipyards Singapore has already started construction on TransLink’s new SeaBus but are tight-lipped on details. July/August 2013 BC Shipping News 41
ASIAN SHIPYARDS According to senior maritime academic Nazery Khalid of the Malaysia Maritime Institute (MIMA), Malaysia has spelled out ambitious shipbuilding and ship repair plans in the small- and
medium-size vessel category. The launch of the Malaysia Shipbuilding and Ship Repair Industry Strategic Plan 2020 (SBSR 2020) in 2011 in his words “represents a serious statement of
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intent on its part to attain this status”. Under the plans it is Malaysia’s fervent hope that it captures some 80 per cent of the local newbuild market, two per cent of the global newbuild market; 80 per cent of the offshore repair market in the South China Sea; and three per cent of the repair market in the Straits of Malacca. However, that is just where both of these nations’ strengths and limitations begin and end. Neither of them are a ‘Korea’ in building prowess or a ‘Singapore’ in repairing expertise. Malaysia, continued Khalid, requires huge capex investments, improved yard productivity, skilled manpower, incentives from the government and support from local ship owners to commission new buildings and undertake repair works at local yards. The operating word — or perhaps the lack of it — is support. Because yards, like nations, have vastly differing commercial capacities, ‘support’ in whatever form does not and simply cannot become the common thread knitting the world’s yards. Like the Alexander Von Humbold, shipping inventories like shipbuilding capacities, can only be expected to remain ‘lopsided’ in nations eager to capture a slice of the market. Expertise and priorities are rarely uniform; all for nothing more than that economic realities and priorities of nations are never or seldom in sync. Yet as any shipping analyst will vouch, all shipbuilding activities are massively capital-intensive industries; something India discovered not too long ago for it to carefully skirt away from it and begin banking on the building of offshore crafts. Perhaps in that way it does not need pay too much attention and detailed scrutiny to green issues. Ultimately, everything always comes back to the rate of return per investment. Asian nations, unsure of their building expertise, gamely skirted away from that or may just be waiting in the wings as perhaps Indonesia could well be doing. But whatever the new state of the ‘union’ is, the new yards and new vessels of the future will be greener, bigger and perhaps even fewer. There is no dispute over that. Jaya Prakash is a Singapore-based maritime journalist. He can be reached at prakruby@hotmail.com.
July/August 2013 BC Shipping News 43
Final changes to the Fisheries Act. By Catherine Hofmann
A Vancouver Lawyer with Bernard LLP
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rguably one of Canada’s oldest and most powerful environmental laws, the Fisheries Act, (the “Act”) was amended with the introduction and passage of omnibus Bill C-38, the Jobs, Growth and Long-Term Prosperity Act on June 29, 2012. Bill C-38 contained amendments to over 50 different statutes and the changes affecting the Act are set to be brought into effect over two distinct phases. Thus, while the new provisions relating to compliance, regulation-making authority and federal-provincial partnerships are currently in force, the amendments governing Ministerial decision-making, the prohibition against the destruction of fish (and fish habitat) and increased penalties are yet to become effective. Although a clear date for the second wave of changes has not been established, according to a recent discussion paper published by Fisheries and Oceans Canada (DFO) on the implementation of the Act, the amendments are likely to receive the approval of the Governor in Council sometime during the summer of 2013. By way of background, it is useful to consider which level of government is responsible for legislating fisheries, the environment and natural resources generally. As with most constitutional matters, things are not entirely simple. While this question has received much scholarly and judicial consideration, for these purposes, it is enough to say that the federal government has authority under section 91 of the Constitution Act, 1982 to regulate impacts to fish and fish habit by virtue of its jurisdiction over Sea-coast and Inland 44 BC Shipping News July/August 2013
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...it [is] an offence to “deposit or permit the deposit of a deleterious substance of any type in water frequented by fish or in any place under any conditions where the deleterious substance or any other deleterious substance that results from the deposit of the deleterious substance may enter any such water.”
Fisheries. However, the provinces right to govern public lands and manage natural resources creates some degree of overlap in this area. Acknowledging this overlap, the federal government has opted to add new sections 4.1 to 4.4 to the Act which enable the federal and provincial governments to enter into co-operation agreements to manage fisheries resources. These amendments create a type of “opt-out” safety net for the federal government. In other words, provided that provincial regulation is equivalent in effect to the relevant provisions of the Act, and consistent with the objectives, purpose and factors outlined in the amended Act, the feds may partner with, or even delegate fully some aspects of fisheries management to the province. For many conservationists, this is not necessarily a welcome change. The hope is, however, that federal/provincial cooperation will lead to the elimination of duplicative resources and the avoidance of regulatory conflict. Only time will tell whether or not this will indeed be the case. Some of the most powerful and wide-reaching provisions of the Act are those dealing with the protection of fish habitat and pollution prevention. With regard to the latter, subsection
36(3) makes it an offence to “deposit or permit the deposit of a deleterious substance of any type in water frequented by fish or in any place under any conditions where the deleterious substance or any other deleterious substance that results from the deposit of the deleterious substance may enter any such water.” A deleterious substance is broadly defined to include, amongst other things, any substance which “if added to any water, would degrade or alter or form part of a process of degradation or alteration of the quality of that water so that it is rendered or is likely to be rendered deleterious to fish or fish habitat” (s. 34(1)). The courts have considered subsection 36(3) many times, and the finding has consistently been that the threshold for contravention is very low and is subject only to a defence of due diligence. Formerly, the singular exception to the prohibition was contained in subsection (5) which enabled Cabinet to create regulations authorizing a prescribed form of pollution in a specific context. While the wording of subsection 36(3) is to remain unchanged, the feds have now provided the Minister with new discretionary power to pass regulations exempting certain forms of pollution involving a prescribed class
legal affairs
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Maximum fines are being increased to $1M for individuals and $6M for large corporations, coupled with a “doubling procedure”...
or Aboriginal fishery, or to fish that support such a fishery.” The amended Act will define each type of protected fishery as well as set out the meaning of “serious harm”. Moreover, new provisions added in section 6 and 6.1 set out the purpose for and factors to be considered by the Minister in making decisions in relation to any authorizations. A draft form of the regulations to be issued in respect of applications for an authorization under paragraph 35(2)(b) have now been published in the Canada Gazette and are available for public comment. DFO has indicated that in implementing subsection 35(1) and the definition of “serious harm” it will interpret the provision as including the death of fish and any permanent alteration to or destruction of fish habitat that limits or diminishes the ability of fish to carry out one or more of their life processes. Thus although the protection of fish habitat is not as prominent as it was under the old legislation it has not disappeared from the Act entirely. Moreover, given the responsibilities of the feds to protect critical habitat under the Species at Risk Act (Canada) and the continued oversight of such protection by environmental organizations, habitat protection for fish is unlikely to be forsaken entirely in favour of fisheries protection. Due care and attention must still be taken in undertaking any activity
that may potentially violate subsection 35(1) and any necessary authorizations for such activity or enterprise should be obtained. This warning should be heeded especially in light of the obligations to self-report and the increased penalties which will shortly be in place under the revised statute. With the coming into force of the second phase of amendments, there will be duty to report either a violation for any unauthorized deposit of deleterious substances or any unauthorized activity resulting in serious harm to fish under subsections 36(1) and subsection 35(1), respectively. Higher fines will also be instituted. Maximum fines are being increased to $1M for individuals and $6M for large corporations, coupled with a “doubling procedure” to double fines for a second offence (both the minimums and the maximums). Following the passage of Bill C-38, opinions were often expressed that the changes have substantially weakened the ability of the federal government to manage fisheries and to protect fish habitat. Ultimately, whether or not this is the case will depend upon the implementation of the new Act and whether or not the feds put financial resources towards enforcement. Legislation can often be a blunt instrument and the skill rests in the hands of those who apply it.
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or classes of substances and which arise from a particular set of activities or undertakings and any conditions related to such deposit (subsection 5.2). How readily this new Ministerial discretion will be exercised, is yet to be seen; however, it is anticipated that such regulations would be issued only in the context of a specific industry or event. In theory, this should reduce the amount of time and government resources required to produce and implement any such regulations. The amendments to the Act which have garnered the most attention and created the most controversy are those concerning the protection of fish habitat. On the whole, there has been a shift in the focus of the federal government away from a general protection of fish habitat toward the protection of commercial, recreational and aboriginal fisheries. Originally introduced in 1977, habitat protection was seen as necessary in the wake of declining fish stocks. Fish habitat was formerly defined as “spawning grounds and nursery, rearing, food supply and migration areas on which fish depend directly or indirectly in order to carry out their life processes”. This definition will, however, be repealed when the second wave of amendments come into force. Previously, subsection 35(1) made it an offence to carry on any work or undertaking that resulted in “harmful alteration, disruption or destruction of fish habitat” (“HADD”). The impact of this overriding prohibition was softened by the ability of the Minister under subsection 35(2) to authorize a HADD under a set of particular circumstances and conditions. There were, however, no specific constraints on the Minister’s ability to exercise his or her discretion. With the recent changes to the legislation, the federal government has opted to shift the focus away from preventing the destruction of fish habitat in general terms and has chosen instead to concentrate its attention on managing threats to Canada’s recreational, commercial and Aboriginal fisheries. Revised subsection 35(1) will soon make it an offence to “carry on any work or undertaking or activity that results in serious harm to fish that are part of a commercial, recreational
Westport Marina (Sidney): 250.656.5832
www.thundermarine.com July/August 2013 BC Shipping News 45
events: nautical institute NIBC conference focuses on passenger vessel safety By Captain Duke Snider, NI Vice President
46 BC Shipping News July/August 2013
Photo credit: BC Shipping News
F
ollowing a string of successful marine-focused conferences related to Arctic Shipping and Command Development, the British Columbia Branch of the Nautical Institute (NIBC) struck success yet again with their 2013 two-day conference on Passenger Vessel Safety held this past May in Victoria. The NIBC, with 120 members, is one of the most active branches of the London-based Nautical Institute. “Passenger Vessel Safety: What is the industry doing to ensure continuous improvement?” remains a topical subject this year following the RMS Titanic Centennial commemoration and the very news-worthy Costa Concordia incident. NIBC remains convinced that the overall picture is more positive than these news items suggest and thus the aim of this conference was to provide visibility and understanding of the advances in Passenger Vessel Safety in the past and into the future. Clearly, maritime industries in and around the Pacific Northwest have a strong stake in demonstrating continuous improvement in passenger vessel safety. Operators of passenger vessels — from small whale watching operations through to ferry services and ocean cruise lines — presented their approach to this ongoing focus. NIBC Chair Captain Chris Frappell welcomed the 90 delegates to the Marriot Victoria Harbourside followed by a short address from Nautical Institute international Vice President Captain Duke Snider. Keynote speaker Dr. Stephen Payne, renowned naval architect and father of over 40 cruise and passenger vessel designs including his crowning achievement, the Cunarder Queen Mary 2, set the stage for the following two days. Dr. Payne presented a history of the construction of notable passenger vessels that represented significant changes in the industry. Beginning with Brunel’s Great Eastern, he pointed out that each successive advance in design and construction almost always outpaced regulation. “Was the Titanic
Left to right: Captain Duke Snider, RAdm (Ret) Nigel Greenwood, Captain John Dickinson and Dr. Stephen Payne.
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Clearly, maritime industries in and around the Pacific Northwest have a strong stake in demonstrating continuous improvement in passenger vessel safety.
deficient? She met or exceeded the requirements of the day…it was the rules that failed,” said Dr. Payne. David Jones of Bernard LLP highlighted some of the most famous passenger vessel incidents and tragedies that sparked change in regulation, design or construction. He pointed out that, in most incidents, the vessels met or exceeded the standards of the day but sometimes, in horrendous consequence, showed how those same regulations failed to address specific aspects. He stressed the importance of consistent global standards, and though noting the oft cumbersome progress of the IMO, the organization works diligently to address new standards of safety. This same point was then clearly defended by John Dickinson, Nautical Institute Head of Delegation to the IMO. Well versed in the processes of the IMO, Captain Dickinson laid out the history of passenger vessel safety guidance from the inception of SOLAS to today’s Passenger Vessel Safety Initiative, reminding us that “where humans are involved, there will always be the danger of accident.” Following on the history lessons of the first three speakers, John Hicks, Lloyd’s Register VP Passenger Vessel Safety outlined how class ensures vessels not only meet the standards of the day but can also meet changes
throughout their operational lives. As the Fleet Technical Director for BC Ferries, Bruce Paterson showed how the local ferry corporation looked to future innovation in design and construction to ensure new builds were always “state of the art when it comes to safety”. Trevor Bailey of Seatag Systems and John Wright of Wrightway Training demonstrated how post-construction safety philosophy must also be of primary focus. Operators must remain vigilant for the unexpected and be prepared for the worst. In doing so, as recent events on our own coast too painfully remind us, ensuring accurate accounting of departing passengers is paramount. Seatag’s proprietary passenger tracking system is one way to do so. John Wright reminded us of the extreme importance in training to ensure the readiness of the crew and that management must adopt “how can I help you” attitudes to replace “I speak you listen” mantras in improving safety. Dr. Payne returned to the lectern to captivate the audience with his presentation, “Genesis of a Queen — the Queen Mary 2”, which began as his schoolboy’s dream to one day see the re-emergence of the “Passenger Liner”, to the life-long ambition culminating in the design and supervision of the modern liner Queen Mary 2. One must see this presentation to truly feel Dr. Payne’s pride in
events: nautical institute receiving his “golden Blue Peter” badge upon the realization of his dream. Rear Admiral Greenwood, as chair of the days proceedings, summed up the day’s information by pointing out that we must constantly move our yardsticks to ensure continuous improvement and that perhaps our focus should be on preventing ships from sinking rather than believing in the impossible unsinkable ship. The human element remains the greatest risk factor. Day Two, chaired by NI Vice President Captain Duke Snider, focused on the more operational aspects of the industry. Opening the day, Ms Elizabeth Steele, Manager Operations and Marketing, Prince of Whales, captivated the audience with her insightful and at times humorous presentation on meeting regulatory and customer needs in the ubiquitous whale watching industry that most typically utilizes small open boats on short runs. With large tourist draws, Ms Steele highlighted the challenges of accommodating passengers with a broad range of experience while with an eye to environmental awareness, all the while dealing with a constantly
changing crew due to the seasonality of the industry. Nearing the end of a dramatic growth phase, this portion of the industry has been well ahead of regulators in developing internal, industry-led safety initiatives, focusing on intensive safety training of personnel and early adoption of new technology. Ms Steele’s entertaining opening set the stage for a fulsome Coastal Ferry Panel, moderated by Captain Snider as BC Ferries’ Jamie Marshall, Washington State Ferries’ George Capacci and Black Ball Ferry Line’s Elmer Grasser described how each ferry operator, unique in its own right, deals with safety. Black Ball, with single-vessel, single-route crosschannel traffic, WSF with predominantly commuter traffic, and BCFS with a full spectrum of widely differing routes and vessel types, all place high value on extensive training, drills and crew preparation for worst case events. Closing the loop on passenger vessel types, Mike Inman, VP Safety and Environmental Management Systems with Holland America Line and Seabourn, highlighted the “uncompromising commitment to safety” that is
HAL Seabourn’s premier core value. HAL Seabourn uses a top down operational safety review and includes all crew, including hotel staff, in safety operations. Closing the day’s session, Rear Admiral Bill Truelove, Commander Maritime Forces Pacific and Commander Victoria Search and Rescue Region described how his command of marine and air SAR resources plan and exercise for worstcase scenarios such as mass evacuations of large passenger vessels. In summing up the two-day event, Nautical Institute Vice President Captain Duke Snider thanked the branch organizers for once again pulling together a topical conference replete with industry specialists and high-calibre speakers. He pointed out the common thread in many of the presentations, that the human element is often the aspect of greatest risk. It is incumbent on all players in the passenger vessel sector of the maritime industry to remain constantly vigilant, train, drill and continuously improve to ensure we are ready for the next “Black Swan” (i.e., an inconceivable event).
Clockwise from top left: David Jones, Ardeshir Yousefi, Mik Inman, Zak Farid, John Roberts, Bruce Paterson, Jamie Marshall, Deborah Marshall, unidentified, and Chris Frappell July/August 2013 BC Shipping News 47
events: cmc tugboats The past, present and future of the tugboat industry
T
he staff and board of the Council of Marine Carriers are to be congratulated for organizing a successful 20th BC Tugboat Industry Conference. The event at the Victoria Conference Centre in mid-May presented a well-organized agenda that took attendees through past, present and future perspectives of the tugboat industry. Following opening remarks from CMC President Phill Nelson and Conference Chair Leo Stradiotti, Marc Grégoire, Commissioner of the Canadian Coast Guard, made perhaps the most significant announcement of the entire two-day conference — that of the replacement of retiring Assistant Commissioner Vija Poruks
Lots of conference photos on the web! Go to www.bcshippingnews.com/photo. with Roger Girouard; and the replacement of Duke Snider on his retirement as Regional Director, Fleet, Western Region with Joanne McNish. (For the full announcement, please see page 8). Mr. Grégoire summarized activities from a busy year which included completion of a regional restructuring, alternative service delivery for buoy maintenance and fleet renewal. Priorities for the coming year focus on renewal of assets; renewal of service delivery; delivery of client-focused Arctic services; strengthening the environmental response program; reinforcing CCG’s contribution to
Peter Woodward honoured at CMC Conference
O
ne of the highlights of the CMC Conference was the presentation of the Legacy Award to Peter Woodward, a long-standing member of the marine industry in British Columbia and past Vice President of the Council of Marine Carriers. Trained in Naval Architecture/Marine Engineering in England, Peter’s career led him and his wife Elsie to Canada and ultimately to positions with both Robert Allan Ltd. and the CMC. Peter has always been very well thought of and respected by the industries he has represented and by all with whom he worked. This is evidenced by the fact that he was awarded the SNAME Centenary Award for outstanding service in 1973 and the Transport Canada Marine Safety Award in 2003. Peter retired from the CMC in June 2003 but left a legacy through one of his most enduring achievements — that of establishing the CMC Tugboat Conference in 1977. Well done Peter!
Council of Marine Carriers staff and wife Elsie congratulate Peter Woodward as he receives the CMC’s Legacy Award for 2013. 48 BC Shipping News July/August 2013
security; and management priorities such as implementation of budgetary measures and workforce management. For the “retrospective viewpoint” stream of the conference, Allan Fowlis (retired, Seaspan) provided his recollections of the characters and companies that made up the early tug industry on the West Coast, followed by a visual presentation of tugs old and new by Leo Stradiotti (retired, North Arm Transportation), clearly showing the evolution of the design of tugs up to the present day. Robert G. Allan, Robert Allan Ltd., gave up a portion of the time allotted for his presentation on “Technological developments in the BC towing industry: A historical perspective” to allow David Bradford, President of the SS Master Centenary Project, to alert attendees of plans for a major refurbishment of the steam towboat to be completed in time for its 100th birthday in 2022. The industry is encouraged to get involved in this very worthwhile project to preserve a key piece of the coast’s history (visit www.ssmaster.org for more information). Prior to breaking for lunch, conference guests were reminded of the importance of the Council’s scholarship program as Kelly Christie, past recipient, described how the funds had helped to achieve her goal of becoming a psychiatric nurse. She thanked the Council and its members and described the opportunities she had been afforded, in part because of the CMC’s help. Two additional presentations — Andy Allan, Transport Canada, and Fred Denning, BC Coast Pilots Ltd. — continued with the theme of a retrospective but this time focusing on “Hulls in Motion”. Allan looked at “The Machinery Evolution” and Denning spoke to “Pilots and Tugs — A Timeless Relationship!”. The second session, entitled “Where Are We Now and Where to Next?”, featured Malcolm McLaren, Allied Shipbuilders, discussing trends in shipbuilding on the West Coast; Frans
events: cmc tugboats Tjallingii, Smit Marine Canada who brought an international perspective to the local towage and salvage industry (albeit a last-minute revision to the agenda delayed his presentation); and Gary Paulson, Prince Rupert Port Authority, who was the perfect choice to finish off the day with “A Look to the Future”. Tjallingii described a competitive salvage industry that was seeing fewer incidents involve casualties however do involve more complex operations, while Paulson, with a record-breaking number of projects under consideration and on the go, foretold of a vibrant and brisk industry that would generate significant opportunities and activity to the tug industry. Presentations on Day Two focused on those organizations that worked closely with the tug industry on issues of regulations, classification, safety, and labour. Always an entertaining speaker, Donald Roussel, Director General, Transport Canada Safety and Security, started by responding to comments made from speakers of the previous day: “I’m from Ottawa and I’m here to help you,” he joked. Seriously though, Roussel’s willingness to partner with industry, other government departments, associations and class societies, just to name a few, on a wideranging list of issues, was sincerely evident. Of note in Roussel’s presentation was mention of an upcoming review of the current TC fee schedule; recent publication of the Guidelines for the Construction, Inspection, Certification, and Operation of Tugs < 24 Metres in Length and a current review of the same standards for barges carrying oil in bulk; and ongoing work with the U.S. on security issues and the Ballast Water Inspections Program. Marcel Laroche, Manager, Marine for Lloyd’s Register, while filling in for LR Vice President Bud Streeter, sought to answer the question: “Is Delegation the Answer — 15 Years On”. Following a review of the statistics related to reported deficiencies, Laroche identified and addressed some of the issues related to class, including how to deal with vessels that could not meet class rules (suggesting that discussion on more acceptance of equivalencies is warranted).
John Clarkson, Transportation Safety Board of Canada, spoke to the topic of “Towboat and Domestic Vessel Safety Culture”. Clarkson focused on safety management systems and made the recommendation that Transport Canada should require all commercial vessels to have a safety management system in place. He cited the pilot project carried out by the Council of Marine Carriers as having a successful outcome that contributed greatly to increasing a culture of safety in the industry. Prior to closing remarks from Leo Stradiotti, Paul Lumsden from the
ILWU, Local 400, provided insights into “Labour in the Towboat Industry — Then and Now”. Lumsden reinforced a common theme from the day, that of partnerships, and encouraged owners to create conditions that were conducive to a safe, effective and efficient working environment. Conference attendees also enjoyed a number of networking opportunities including a well-attended golf tournament and a Casino Night. An Exhibitors’ Cocktail Reception, where attendees could visit with over two dozen exhibitors, was equally well attended.
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events: greentech First GreenTech on the West Coast hailed as a success
W
ith membership in Green Marine continuing to build on the West Coast, holding GreenTech 2013 at the Hyatt Regency Hotel in Vancouver in late May proved to be a great success. Strong attendance numbers, engaging speakers and valuable networking opportunities generated enthusiasm for the organization and its goal of bringing “green” to the shipping industry. Commenting on the first GreenTech on the West Coast, David Bolduc, Green Marine Executive Director, recognized the local growing interest in his welcoming remarks: “Of the 20 new members to the program in the past year, 10 have been from the West Coast...in addition, another important milestone is the creation of the West Coast Advisory Committee to ensure a regional perspective for the program.” Starting with three very strong keynote speakers — Robin Silvester, President and CEO, Port Metro Vancouver; Jonathan Whitworth, President and CEO, Seaspan ULC; and Andreas Chrysostomou, Former Chairman of the IMO’s Marine Environment Protection Committee — a positive and constructive tone for the conference was immediately established. Robin Silvester spoke to the successes the Port has had in recent years in their efforts to balance sustainable growth with environmental challenges while Whitworth highlighted examples of best practices in waste
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Of special note, Green Marine Executive Director was pleased to announce the newest member to the program — Kinder Morgan’s Westridge Marine Terminal.
management and the stark difference between 30 or even 20 years ago to today. Chyrsostomou took a big picture approach to addressing sustainability. Citing the importance of the shipping industry to world trade and the global economy, he stressed the need for a common approach to regulations as well as clearly defined goals from regulators. “Uncertainty is the enemy of business,” said Chrysostomou. Sessions over the next two days focused on all aspects of sustainable shipping practices and regulations, including: • “Early lessons learned on implementing the North American Emission Control Area” with speakers Hauk Larsen Wahl (DNV Petroleum Services), Ron Sahu (consultant), and Greg Wirtz (Cruise Lines International Association, North West and Canada. Wahl provided a look at the challenges of meeting regulations while Sahu argued that the 200-mile limit for ECA was counter-productive when it came to activities like short sea shipping. Wirtz provided the perspective of the cruise lines and noted that, while supporting the goals of ECA, implementation was proving costly.
Left to right: Green Marine staff Manon Lauthier, Davic Bolduc and Françoise Quintus. 50 BC Shipping News July/August 2013
Wirtz suggested that alternative methods to lowering air emissions could be equally effective. • “Perspectives on sustainability in the marine environment” gave an opportunity for speakers like Johanne Gélinas (Raymond Chabot Grant Thornton), Hilary Miller (SMIT Marine Canada), Alexandra Woodsworth (Georgia Strait Alliance) and Ellen Watson (Port of Seattle) to demonstrate the importance of best practices in sustainability. Despite the panel’s diversity in backgrounds, each successfully put forth an argument — be it from a business, environmental or industry perspective — that it is in a company’s best interests to undertake initiatives aimed at improving their environmental performance. • Panelists from the “Rewarding environmental performance” session demonstrated ways that their companies rewarded best practices — for example, Port Metro Vancouver’s Ronan Chester spoke about their EcoAction Program and cost incentives for ships visiting the Port’s facilities. • “LNG in the marine industry — from project to reality” had a very strong panel that included Craig Jackson
Left to right: Jonathan Whitworth, Robin Silvester, Andreas Chyrsostomou and Raymond Johnston.
events: greentech (Canada Metal (Pacific) Limited, ABB Turbocharging and Thordon Bearings). Additional networking opportunities were plenty — a harbour tour arranged by Port Metro Vancouver, a welcoming reception and luncheons each provided relaxed and informal settings — and, in what was perhaps the most significant highlight of the conference, the Certification Ceremony, participants of the Green Marine program were recognized for their results in exceeding regulatory requirements and their efforts for continuous improvement. Of special note, Green Marine Executive Director David Bolduc was pleased to announce the newest member to the program — Kinder Morgan’s Westridge Marine Terminal. President Ian Anderson was on hand to acknowledge the importance of the program and, in addressing the crowd, explained the reasoning behind the pipeline company’s decision to join a marine program . “At the end of the day, while we recognize that we’re a key component
in the economic value chain that exists between upstream producers and downstream refiners, we also recognize that we’re part of the environmental value chain — that the activities both upstream and downstream are critical to our success as well,” said Anderson in addressing guests. And one last note: special recognition must be given to the staff of GreenTech for producing a well-organized, relevant and entertaining two-day event. Manon Lanthier, David Bolduc and Françoise Quintus did an amazing job! GreenTech 2014 will be held in Saint John, New Brunswick, home of Port Saint John, the first East Coast port to join Green Marine. Stay tuned for details. For more information about Green Marine and the benefits of membership, visit: www.green-marine.org. Lots of conference photos at www.bcshippingnews.com/photo.
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(Shell LNG), Marcel Laroche (Lloyd’s Register Canada), John Hatley, (Wärtsilä North America) and Greg Peterson (BC Ferries). From a bigpicture look at LNG facilities, to potential impacts of LNG in emergency situations, to LNG fuel vessel technology and finally to a specific company’s consideration of LNG use, each panelist provided a well-organized (and entertaining) presentation with unique perspectives on the future of LNG vessels. In between agenda topics, break sessions gave attendees the opportunity to network and browse through roughly two dozen exhibit displays. Companies ranged from those offering environmentally friendly solutions (Environchem and their ENVOLV Sustainability Management Software; Filtramax and Envirolin) to energy management services (Schneider Electric and WorleyParsons) and products designed to minimize shipping’s impact on the environment
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ferries Shipyards and ferries share a crucial role. Serge Buy, CEO, Canadian Ferry Operators Association
A
few years ago, the federal government decided to try and end the constant boom and bust cycle experienced by shipyards in Canada. It designed some procurement vehicles (mainly through the Department of National Defence) that would be directed towards the Canadian shipyard industry. This was welcome news for the thousands of employees and potential new hires that would benefit from this effort to renew the sector. The National Shipbuilding Procurement Strategy also has another positive impact: it allows Canadian shipyards to upgrade their facilities and make strategic investments to allow them to become even more competitive in the next few years. This makes their operations more sustainable. Shipyards that are not involved in DND-related contracts will also see an increase in their orders, as their colleagues will be too busy to take new orders. The Canadian government was right to invest in this important industry that has played a significant economic role in our past and will continue to do so into the future. The Canadian Ferry Operators Association (CFOA) supported the strategic investments made by our federal government and the announcements made by Prime Minister Stephen Harper, Public Works and Government Services Canada Minister Rona Ambrose and National Defence Minister Peter MacKay. Having a robust and
52 BC Shipping News July/August 2013
competitive shipyard industry right here in Canada can only benefit Canadian ferry operators, and it is key to a successful maritime sector in Canada. While Steve Martin and John Candy had a great hit with their movie titled “Planes, Trains & Automobiles” in 1987, the movie missed the ferry sector (and our members could have provided plenty of source material). This omission highlights the fact that most Canadians and North Americans do not consider the ferry sector when thinking about transportation. Unfortunately, they also take it for granted. However, the thousands of employees, the billions of dollars in capital assets, and the strategic importance of the ferry sector to our economy make it crucial to Canada’s continued success. Our country was founded on exploration and the transportation of goods and people. Today, some areas of our country are only accessible by ferries. Ferries help millions of passengers go to work or go from an airport on an island to land. Some regions (Vancouver Island being a prime example) rely heavily on ferries, which are the primary mode of transportation for tourists, businesses, residents and goods to and from the island. Provincial and federal governments
are facing difficult financial challenges. The economic recovery is still not very strong, and while figures have improved, public finances are in shambles. Governments are looking at cuts to try and balance their books and pay off debt. We recognize the need for that. However, it is important that we don’t end up stifling growth and development through austerity. Strategic investments still need to be made. The ferry sector needs continued government support in the same manner other transportation infrastructure projects are receiving public support. Bridges, highways and other road projects are highly visible, and therefore they benefit from public support when investments are made. However, we must not forget to enhance our capacity to move people and goods by ferries. For many regions, ferries are the engines of economic development. They enable growth and create employment. The shipyard industry has received public support through federal government procurement opportunities. Its development and growth will enable Canadian ferry operators to consider building new ships in Canada (when feasible and possible). The two sectors are linked and should support each other for mutual benefit. The Canadian Ferry Operators Association will hold its annual conference in St. John’s, Newfoundland and Labrador, in September. At the conference, attendees will be able to see the unveiling of a new study designed to highlight the economic and social importance of the ferry sector in Canada. Should you be interested in attending, please visit our website: www.cfoa.ca.
July/August 2013 BC Shipping News 53
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54 BC Shipping News July/August 2013
ABS Americas..............................................................................................13 Arrow Marine Services.................................................................................35 ATP Instone.................................................................................................42 Bernard LLP.................................................................................................42 Bracewell Marine Group...............................................................................32 Caldwell & Co................................................................................................6 Canada’s Pacific Gateways (Prince Rupert Port Authority)............................19 Canadian Ferry Operators Association..........................................................53 Capilano Maritime Design Ltd.......................................................................52 Chamber of Shipping of British Columbia......................................................32 ClassNK.........................................................................................................9 CLIA-North West & Canada..........................................................................54 CMC Electronics..........................................................................................49 Corix Water Products...................................................................................26 Dave Roels Photography..............................................................................32 DNV.............................................................................................................25 DP World.....................................................................................................39 Gateway Shipping and Transport....................................................................8 General Commercial User Group....................................................................8 Greenwood Maritime Solutions Ltd.................................................................8 International Sailors’ Society Canada............................................................23 Jastram...................................................................................................... BC John Horton, Marine Artist...........................................................................19 King Bros. Limited........................................................................................40 Lloyd’s Register.............................................................................................7 Mission to Seafarers....................................................................................51 Nanaimo Port Authority................................................................................38 Plimsoll Club................................................................................................33 Robert Allan Ltd...........................................................................................14 Seaspan Shipyards......................................................................................36 Schneider Electric.......................................................................................IFC Siemens PLM Software................................................................................54 Sika ............................................................................................................22 Teekay Corporation - Teekay Engineering and Consulting............................ IBC Tervita............................................................................................................6 Thunderbird Yacht Sales...............................................................................45 Vancouver Maritime Museum.......................................................................43 Wärtsilä.......................................................................................................51 W&O Supply................................................................................................12
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