BC Shipping News - June 2015

INSIDE: TANKER SAFETY EXPERT PANEL’S PHASE II REVIEW

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

Volume 5 Issue 5

NEWS

www.bcshippingnews.com

June 2015

Terminal Update Terminal upgrades and expansions powering growth spurt

Industry Insight Jeff Scott, President & CEO Fraser Surrey Docks

JUN

CP PM# 42161530 JUNE 2015

Plus:

> MV Marathassa spill: A first-hand account > A fine idea but NIMBY: Places of refuge

7

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Your Business is Our Focus

Fraser Surrey Docks is an efficient, reliable, multi-purpose marine terminal that has been serving our customers on the West Coast of British Columbia for over 53 years. Operating within Port Metro Vancouver, Fraser Surrey Docks efficiently handles Breakbulk, Containers, Bulk-Agri-Products, Project Cargo, Forest products and more. Look to Fraser Surrey Docks for solutions to your next cargo movement on the West Coast!

FRASER SURREY DOCKS

Pacific Rim Stevedoring

www.fsd.bc.ca

The 6th Annual Fundraising Event for the Vancouver Maritime Museum

4 BC Shipping News June 2015

BC SHIPPING

Contents

NEWS

June 2015 Volume 5 Issue 5

Cover Story

20

37

Spill response III

39

Ports & sustainability I

42

Ports & sustainability II

44

Shore power

46

Legal affairs

7 8 12

18

Editor’s note

By Jane McIvor

In brief

Industry traffic, letters and news briefs

Industry insight

The FSD Ascent Beyond borders. Breaking through.

Jeff Scott, President & CEO, Fraser Surrey Docks Under Jeff Scott’s leadership, Fraser Surrey Docks is proving to be a formidable player on the Fraser River.

History lesson

Those strange yellow mountains — Vancouver Wharves sulphur piles

By Lea Edgar

20 Terminals

Terminal upgrades and expansions powering growth spurt

By Ray Dykes

26

Inland terminals

Inland logistics and terminals drive Gateway growth

By Darryl Anderson

29

Spill response I

33

Spill response II

MV Marathassa spill A first-hand account of efforts

Phase II report Tanker Safety Expert Panel finalizes all-encompassing review of Canada’s spill response regime

Clean Pacific offers a serious discussion on spill response Prince Rupert & Pinnacle A competitive advantage with sustainability initiatives

By Edward Munro Port Metro Vancouver demonstrates leadership in sustainability

By Duncan Wilson A burgeoning market for shore power

By Bill Jackson, P.Eng. A fine idea but NIMBY Places of refuge

By Thomas S. Hawkins

49 Events

Mari-Tech raises the issues, provides solutions

51 Environment

Polar forecasts Climate journalist shares her concern for the Arctic at GreenTech 2015

By Julie Gedeon

29

12 On the cover: The MV Edward Oldendorff on her first load of copper concentrate from the Red Chris mine out of the Port of Stewart (photo: Dave Roels — www.daveroels.com); above: Terminals on the North Shore — Cargill, Neptune and Lynnterm (photo: BC Shipping News) right: The MV Marathassa spill (photo courtesy WCMRC); left: Jeff Scott, President & CEO, Fraser Surrey Docks.

June 2015 BC Shipping News 5

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June 2015 Volume 5/Issue 5

BC Shipping News is as much a business journal as it is a forum for the industry. With informative, educational and entertaining articles, BCSN is a vehicle for discussion on local, national and international maritime issues.

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6 BC Shipping News June 2015

Contents copyrighted 2015 McIvor Communications Inc. 300 - 1275 West 6th Avenue, Vancouver, British Columbia Canada V6H 1A6 Phone: 604-893-8800/Fax: 604-708-1920 E-mail: contact@bcshippingnews.com International Standard Serial Number ISSN: 1925-4865 / Published 10 times per year.

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.

Member of:

International Sailor’s Society Canada

EDITOR’S NOTE Photos by Dave Roels, www.daveroels.com

I

cringed when I read an email from a friend living abroad. Here’s an excerpt: “I have been following the expected hysteria arising from the little bunker spill you have had there recently.

From what I have seen and heard this was an accident on a new ship. It could have been avoided but when it did occur the response mechanism functioned quite well — i.e. a response to a spill in most major ports usually occurs within 5-8 hours. Over 80 per cent of the oil was contained and the rest was cleaned up very quickly, efficiently and professionally. ”

An international embarrassment While our leaders at the Province of B.C. and the City of Vancouver were spewing their rhetoric for the cameras on the inadequacy of the response to the MV Marathassa spill, I wonder if either of them thought of anything other than their own political agendas. Their conduct was an international embarrassment.

Neither leader took the time to learn the facts and preferred to feed the panic that the media was trying to instill.

Definitely not the leadership skills that would be wanted if there had been a real emergency.

More than this though, I felt really bad for those working on the water, the shore and in the operations centre, including representatives from the Province and the City of Vancouver who were just thrown under the bus by their bosses.

On behalf of BC Shipping News and our readers, I’d like to take this opportunity to thank those who worked through the night and round the clock on the clean up.

It was a job well done by any standards and you should be proud.

— Jane McIvor

June 2015 BC Shipping News 7

INDUSTRY TRAFFIC BC’s Marine Surveyors join forces with International Institute

A

t a recent meeting of the International Institute of Marine Surveying’s (IIMS) management board in Portchester U.K., it was unanimously agreed to accept the proposal from the Association of Marine Surveyors of British Columbia (AMSBC) to amalgamate and form IIMS BC, the British Columbia chapter of IIMS Canada.

The realization of IIMS BC and IIMS Canada is the result of much due diligence work behind the scenes. The formation of IIMS Canada brings the number of IIMS regional branches to six, the others being Australia, India, New Zealand, Pakistan and UAE.

Commenting on the news, Richard Smith, President of AMSBC said, “Looking to the future, I am convinced that this will prove to be a very positive and beneficial move for both our members and the profession at large here in British Columbia.

“Our access to an association with a sizeable realm of national and international knowledge, combined with the considerable educational resources that will now be available to us, will be of great value and help us to elevate the status of our profession and thus the level of service that we will bring to the marine industry in B.C.”

Nigel S. Greenwood

MA, BSc, Master Mariner, FRIN, MNI Rear-Admiral, RCN (Ret’d)

www.greenwoodmaritime.com nsg@greenwoodmaritime.com / 250-507-8445

THE GLOBAL HUMAN RESOURCE SOLUTION We bring you the best of breed in Crew Management, Crew Planning and Payroll Systems for the maritime and offshore industries.

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8 BC Shipping News June 2015

Richard went on to formally thank the Amalgamation Committee, and in particular Tim Ellis and Captain Andrew Korek, for all their efforts in helping bring this project to fruition.

Speaking on behalf of the IIMS, Mike Schwarz, Chief Executive Officer, said, “I am delighted that we have been able to facilitate and agree to the amalgamation between our two organizations and look forward to welcoming AMSBC members into the IIMS family.

“I am most grateful to those involved in British Columbia, who have worked tirelessly to make this a reality. Captain Andrew Korek (who will become Regional Director of IIMS Canada) and I have already forged a close working relationship and I look forward to developing things further in the coming months.”

The IIMS is an independent, non-political organization promoting the professionalism, recognition and training of marine surveyors worldwide.

NEWS BRIEFS

New ISO-based Progressive Speed Trial Analysis software free to industry

C

lassNK (Chairman and President: Noboru Ueda) releases PrimeShipGREEN/ProSTA, making it the world’s first classification society to develop software which analyzes and calculates a ship’s speed trial results for EEDI calculation in compliance with the latest IMO Guidelines on May 1, 2015.

MARPOL AnnexVI states one parameter to calculate EEDI as the ship’s speed in calm sea conditions based on the speed trial results. To eliminate the effects of external factors during sea trial (wind, waves, current, water depth, sea temperature) and provide a way to analyze and calculate a ship’s speed in calm sea conditions, IMO assigned two methods in its Guidelines on survey and certification of the Energy Efficiency Design Index.

Those were ISO 15016:2002 and the International Towing Tank Conference (ITTC) Recommended Procedures.

In response to requests from IMO to eliminate this dual standard, ISO and

ITTC worked together to create the new harmonized international standard ISO 15016:2015 which was published on April 1, 2015. ISO 15016:2015 will be adopted at this month’s MEPC68 and is expected to apply to all sea trials from June 2015.

In addition to providing technical support for standard harmonization, ClassNK has also developed support tools such as PrimeShip-GREEN/ProSTA for shipyards, shipowners, and the greater maritime industry to enable smooth adoption of the amended standard. The software enables ship designers to calculate the ship’s speed in compliance with ISO15016:2015 and reduces the workload required for EEDI calculation.

As a non-profit organization that is dedicated to supporting the advancement of the maritime industry, ClassNK is offering this software completely free of charge to all applicants. Applying is easy.

Simply go to www.classnk.or.jp/hp/en/ activities/primeship/index.html.

In additional news, ClassNK also announced the establishment of a new Global Research and Innovation Centre (GRIC). The two main sectors that the GRIC will cover are: • Maritime technologies: Research and development into creating new technologies and improving existing technologies in the fields of safe/smart ships such as condition-based monitoring technology, and eco-technology covering areas such as alternative fuel engine technologies, and emission control.

• Marine renewable energy: Establishing a marine energy test site for the tropics to support R&D in energy storage systems, biofouling materials, energy converters, prototype design testing, and creating possibilities to provide energy for maritime industry usage like in ports and harbors.

For more information, visit: www. classnk.com.

June 2015 BC Shipping News 9

INDUSTRY TRAFFIC

BC Ferries unveils name of cable ferry

I

n a special ceremony at Seaspan’s Vancouver Shipyards, BC Ferries unveiled the name of its newest vessel.

The brand new cable ferry, to be run on the Buckley Bay — Denman Island route, was named the Baynes Sound Connector, reflecting the name of the channel it will be crossing.

“Today marks a special milestone in our vessel replacement program as we honour maritime tradition with the naming ceremony and thank the workers at Seaspan’s Vancouver Shipyards who have produced a fine vessel for us,” said Mike Corrigan, BC Ferries’ President and CEO. Brian Carter, President, Seaspan Shipyards, noted that the ceremony was an important step in Seaspan’s longstanding commitment to BC Ferries and its customers. “Seaspan has a deep-rooted and established relationship working with BC Ferries to build and repair ships for the people of B.C., and we are proud to construct, and officially christen its firstever cable ferry,” he said.

The Baynes Sound Connector will be towed to Buckley Bay in late May, where it will be connected to three cables that were laid in April. In June and July, BC Ferries’ crews will undergo training and familiarization exercises in preparation for passenger and vehicle service. After receiving certification from Transport Canada and classification society Lloyd’s Register, the cable ferry will enter into service by late summer.

The Baynes Sound Connector measures 78.5 metres and can accommodate 50 vehicles and 150 passengers and crew.

The cable ferry will operate with one drive cable and two guide cables. With a crossing of approximately 1,900 metres, this cable ferry will be the longest one in the world, capable of speeds of 8.5 knots with a normal service speed of 7.5 knots.

The cable ferry project follows several other recent BC Ferries contracts that have been successfully completed at Seaspan Shipyards, including a multimillion dollar upgrade of the Queen of Oak Bay, as well as several other maintenance refits on the Northern Adventure, Island Sky, Coastal Celebration, and Spirit of Vancouver Island.

10 BC Shipping News June 2015

Council of Marine Carriers bestows Legacy Award on Captain Russel Cooper

T

he Council of Marine Carriers is pleased to announce the recipient of this year’s Legacy Award. Captain Russel Cooper will be honoured that the CMC’s 21st BC Industry Tugboat Conference on May 29.

Captain Cooper was born and raised in New Westminster.

Wanting to work on tugs since he was six years old, Russ worked with his grandfather, Tom, and father Art in the family tugboat business while still going to Lester Pearson High School. After graduation in 1958, he immediately went to work for Marpole Towing and later for Gilley Brothers.

In 1964, he joined Western Tug and Barge (which became Vancouver Tug Boats), obtaining his Masters Certificate the following year. In 1966, he re-joined his father’s business of Westminster Tug Boats Ltd., initially as Master, then as Operations Manager, General Manager and Shareholder. In 1976, Rivtow Straits purchased Art’s shares in the business. Russ became a corporate partner with Rivtow in 1982, continuing to manage Westminster Tug until 2000 when the company was bought out by Smit Towage. Russ retired at the end of 2002.

Russ became involved in the wider tug industry as a member of the British Columbia Towboat Owners Association in 1967, eventually becoming the President. He got involved with the Towboat Industrial Relations Association soon after the 1970 strike. After the formation of the Council of Marine Carriers, Russ became a Director, continuing in that role for 26 years and as Chairman of the Board for six years, stepping down in 2001. He served on many CMC committees such as Labour Negotiations, Noise Abatement Program, Bridge Committee, Fraser River Users Group, Engineer Requirements Committee, Employees Assistance Program, and the Conference Committee to name a few. He was involved with the Towboat Conference from its inception — from when it was started by the BCTOA. While Chairman of CMC, he was invited to serve on the Coast Guard Marine Advisory Board and travelled to Ottawa every few months for two years.

He was a member and Chair of the Fraser Port Nomination Committee and served on that Port’s Advisory Committee.

Russ was also involved in his community of New Westminster and was appointed to the city’s Police Board. He was named Citizen of the Year in 1990. In 2005, Russ and his family were inducted into the Fraser River Discovery Centre Hall of Fame.

Russ has been married to Yvonne for 52 years. They have three married children, two daughters and a son, along with six grandchildren. Russ’s son, Gordon, followed his father into the towboat industry as a sixth generation mariner and is now a qualified Fraser River Pilot.

TUGBOAT CONFERENCE

Rising to the New Coastal Challenges!

Council of Marine Carriers Conference generating a buzz.

I

n selecting the theme of Rising to the New Coastal Challenges, the Council of Marine Carriers have set a very relevant agenda for their 21st Conference — May 28 to 30 at the Delta Victoria Ocean Pointe Hotel. Stakeholders in B.C.’s tugboat industry will be well served with engaging presentations, informative exhibits, and premier networking and relationship-building events.

If you haven’t already done so, registration can be done through the Council’s website at www.comc.cc.

Thank you to our sponsors!

Agenda Thursday, May 28 1000

Golf Tournament at the Pacific Highlands Golf Course

1700 - 1900 Conference Registration (Arbutus Foyer)

1700 - 2000 Opening Night Hospitality Reception (Arbutus Ballroom)

Friday, May 29

0730 - 0900 Continental Breakfast (Songhees Suite) 0845 0900

Conference Opening — Leo Stradiotti, Conference Chair

Keynote Speaker — Donald Roussel, Associate Assistant Deputy Minister of Transport, Safety & Security

Session One 0930 1000 1045 1110

1200

A generational opportunity for the B.C. Marine Industry — Captain Stephen Brown, President, Chamber of Shipping of B.C. LNG as Fuel — Calum McClure, CEO, Cryopeak Coffee Break

Applying Hybrid Technology to the Marine Market: Application optimization through MTU’s value proposition and cross-application experience — Andrew Packer, Senior Manager, Application Engineering, MTU America Inc. Legacy Lunch (Harbour Patio) The Council of Marine Carriers is proud to honour Captain Russel Cooper with this year’s Legacy Award.

Session Two 1330

e-Navigation and Marine Pilotage — Paul Devries, General Manager, BC Coast Pilots Ltd.

1500

Preparing for the Worst — Salman Azam, Director of Operations, Western Canada Marine Response Corporation

1415

SILVER SPONSORS BC Ferries Corporation Bull Housser & Tupper Chevron Canada BRONZE SPONSORS Alexander Holburn Beaudin & Lang LLP Aon Reed Stenhouse Chamber of Shipping of B.C. North Arm Transportation Port Metro Vancouver MEDIA SPONSOR BC Shipping News

1545

CHS Charting Activities in the Pacific Region — Dave Prince, Director, CHS Pacific, Navigational Products and Services, Canadian Hydrographic Service Escort and Rescue Towing on the B.C. Coast: What does the Future Hold? — Robert G. Allan, Executive Chairman, Robert Allan Ltd.

1630 - 1900 Exhibitors’ Cocktail Party (Arbutus Ballroom and Foyer)

Saturday, May 30 — Session Three

0730 - 0900 Continental Breakfast (Songhees Suite) 0830 0915

1000 1020 1115 1830

Canada’s World Class Tanker Safety System — Donald Roussel, Associate Assistant Deputy Minister of Transport, Safety & Security

How TERMPOL Works and What it Means — Bob Gowe, TERMPOL Manager, Transport Canada Coffee Break Pace of Change in BC Waters: The Coast Guard Piece — RAdm Roger Girouard (ret’d), Assistant Commissioner, Canadian Coast Guard, Western Region Closing Remarks — Leo Stradiotti, Conference Chair Gala Dinner and Casino (Arbutus Ballroom)

June 2015 BC Shipping News 11

INDUSTRY INSIGHT

The FSD Ascent

Beyond borders.

Breaking through.

Jeff Scott President & CEO, Fraser Surrey Docks Photo by Dave Roels (www.daveroels.com)

W

hen asked about Fraser Surrey Docks’ branding — “The FSD Ascent: Beyond borders.

Breaking through.” — President & CEO Jeff Scott describes multiple meanings.

“We know we have a long road ahead and a big mountain to climb but we’re prepared to make that journey and make that ascent,” he says. “It’s really about thinking beyond the status quo and about overcoming barriers.” Indeed, Fraser Surrey Docks — the largest modern, multi-purpose marine terminal on the West Coast of North America — is proving to be a formidable player on the Fraser River as it continues to attract new commodities, new services and increased attention for its significance as an economic driver for the economy of B.C. BCSN: There’s a lot to cover but before we get started, let’s look briefly at FSD’s history.

JS: FSD has been in operation for over 50 years when it was started by Johnson Terminals. Prior to that, there was a one-acre grain facility with a silo on the property. Forest products and steel were the mainstays throughout the 1970s and into the 1980s. In 1974, we got involved in handling containers when we purchased two dock gantry cranes and started a barge/short sea shipping service to move containers back and forth to Seattle, Tacoma and locally.

Containers really took off for us in the 1990s and continued to grow to a

12 BC Shipping News June 2015

>>> Fraser Surrey Docks is proving to be a formidable player on the Fraser River as it continues to attract new commodities, new services and increased attention for its significance as an economic driver for the economy of B.C. peak in volume in 2005 when we moved about 400,000 TEUs. Our container business was hit hard through the series of mergers of container liner companies.

In 2006, we lost about 75 per cent of our business when TUI AG (Hapag-Lloyd) bought CP Ships and they were forced to amalgamate services at Deltaport due to Maersk buying P&O Nedlloyd which pulled them out of the Grand Alliance.

Since then (post 2008-2009 and the economic downturn), we’ve been sitting at about 94,000 TEUs. We started handling bulk-agri-products about three and a half years ago through a joint venture with Parrish & Heimbecker. With an investment of about $12 million, we made a number of modifications — converting a pulp shed into flat storage, adding reclaim areas and a rail pit plus some mobile equipment.

This year, we’re on track to handle over 500,000 metric tonnes which will be a record. In April this year, we handled a record volume of 100,000 mt.

We have also handled project cargo for quite some time. It fluctuates from year

to year but we’ve handled a variety of projects — the Gold River project, Fortis upgrades, the Seaspan crane (Big Blue), the windmill on top of Grouse Mountain, a huge telescope to Chile…we even moved a hotel that was created in Canada and reconstructed in Siberia and we moved it piece by piece. That was one of the more unique projects I’ve seen.

To summarize, we handle over $3 billion worth of goods each year. Over 60 per cent of all steel for construction and pipe projects in Western Canada moves through FSD each year.

We are a true multi-purpose facility.

We handle all sectors except cruise, cars and liquid bulk. From a growth/planning perspective, we’re always evaluating our best options — for example, whether we continue to be multi-purpose or if we should become more focused on bulk, break bulk or containers.

BCSN: Could you tell me about the relationship to Pacific Rim Stevedoring?

JS: Sure. Pacific Rim Stevedoring was established in 1974 as a joint venture with Nootka Shipping, who were the

INDUSTRY INSIGHT Photo by Dave Roels (www.daveroels.com)

agent for the largest steel import shipping line coming into the Vancouver Gateway at the time. Ten years later, we purchased Nootka’s 50 per cent and PRS is now wholly owned by FSD and performs all of our stevedoring services.

BCSN: I understand FSD was acquired

by Macquarie in 2007. Could you provide an overview of that?

JS: Yes, we’re now part of Macquarie Infrastructure Partners (MIP I) — a $4 billion North American infrastructure fund that falls under Macquarie Infrastructure and Real Assets (MIRA).

MIRA — which focuses on four main sectors (utilities and energy, transportation, communications, and waste management) and manages about $40 billion in infrastructure assets globally. They have 24 port assets in nine countries.

BCSN: You mentioned that you were evaluating whether to continue to be multipurpose or focus more on one sector. Could you describe what sort of factors you would consider in making a decision like that?

JS: Our biggest challenge on the Fraser River is draft. When we consider all of our options, that plays a big part. For example, the challenge with containers is that vessels are growing very big, very fast and with no indication on where the limit for size will settle. At our current draft of 11.5 metres, the maximum-sized vessel we can accommodate is about 4,200 TEUs. The average size of vessel visiting Vancouver now is between 6,000 and 8,000 but it’s moving up and that’s the challenge. So, even if we dredge deeper, we still might not be in a position to accept the 10,000-to14,000-TEU vessels that are starting to appear in the Pacific Northwest.

The break bulk sector is very cyclical and leaves us fully exposed to the market as it goes up and down. There’s a lot of volatility.

For the bulk sector — things like agriproducts, coal or dry bulk — we can accommodate larger and more consistent volumes and we can set up long term customer commitments which give a more guaranteed volume flow. There are also better opportunities to partner for capital investments which you typically don’t see with the break bulk or container sectors. And when you look at fleet of vessels on the bulk side, the current fleet is 80 per cent Panamax which we can accommodate easily. In fact, many customers have custom-built vessels which provides even greater certainty that Panamax vessels will be a mainstay of the market for the next 20 years.

Jeff sits in front of the Atlantis Yucatan as it takes on a load of a wheat, one of the many products currently moved through FSD.

So if we look at our five-to-10-year growth plan, it makes more sense to focus on bulk more than the other two options. That’s not to say we’re giving up on either containers or break bulk but we’re looking at options and alternatives — and there are a lot of options.

BCSN: What are your current priorities in terms of growth?

JS: Our primary plan is to get the coal facility up and running and to undertake an agri-product expansion. Those are the two things we want to make sure we have functional within the next couple of years.

We continue to try to grow the break bulk portion and maintain our container business but we’ll be using the next three to five years to fully evaluate all options.

BRITISH COLUMBIA MARITIME EMPLOYERS ASSOCIATION

The British Columbia Maritime Employers Association (BCMEA) is a multi-employer waterfront organization, representing 58 ship owners, agents, stevedores, and ocean going terminal operators in the Asia Pacific Gateway. The BCMEA advocates on behalf of its Customer-Members for legislative and regulatory reform on issues affecting labour reliability. The Association is a service provider of labour relations, training, recruitment & dispatch of longshore employees.

www.bcmea.com

The Asia Pacific Gateway contributes over $12 billion to Canada’s GDP, and more than 129,500 jobs.

June 2015 BC Shipping News 13

INDUSTRY INSIGHT >>> Basically, the proposed amendment could mean using one covered vessel instead of eight barges. So it would mean 80 covered vessels per year compared to 640 uncovered barges.

BCSN: How large a footprint does FSD currently have — and further, are you able to expand beyond that?

JS: Right now, we have 180 acres in total. We’re a very large brownfield facility which means we have existing infrastructure so it’s an easier conversion. We have seven deep-sea berths, the rail connections (we’re unique in that we have all major Class One railway connections), and the road connections. If a new bulk product was being considered, all we would have to do is construct storage and unload capabilities. Everything else fits within our footprint and our game plan.

And the South Fraser is a great location — in addition to direct access to all mainline railroads and 38,000 feet of on-dock rail, we’re centrally located (less than 30 minutes from downtown or to the U.S. border) and we have direct access to the South Fraser Perimeter Road.

In terms of expansion, yes, there’s access to additional industrial lands. That’s a big advantage we have over the Burrard Inlet — we don’t have the same urban encroachment that they do so there are additional opportunities which we’re exploring.

14 BC Shipping News June 2015

BCSN: You mentioned the new South Fraser Perimeter Road — how much difference has that made to FSD? JS: It’s been a significant improvement. What used to take a minimum of a half hour to get to Deltaport can now be done in 15 minutes. The new SFPR also provides a direct connection to the TransCanada Highway versus trucks having to drive up to 104th Avenue through Surrey. Our only disadvantage is the “right in, right out” (i.e., access and egress to the right only) but the province is working with Port Metro Vancouver to see if we can have a more permanent solution. We’re looking at an interchange that can be accessed off of Tannery Road.

BCSN: I’d like to focus now on the process you went through with your direct transfer coal facility application. Let’s start with the current status of the project.

JS: We’re working through a set of appeals and we’re also working with our customers to look at ways to improve and enhance the project so we can start construction and move forward. It’s really a matter of trying to find the right time and right fit from a business perspective. We believe in this project and are confident that we can deliver it without significant impact.

On that note, we recently announced a process to look at amending the project. We’re considering applying to Port Metro Vancouver to permit loading direct to vessels and potentially eliminate the barges. We’ll proceed in two phases — first, going out to the public to provide information about the proposal and get their feedback regarding updates to our studies. Then, based on that feedback, we’ll assess and determine whether we submit an amendment to the port.

Basically, the proposed amendment could mean using one enclosed vessel instead of eight barges. So it could mean 80 covered vessels per year compared to 640 uncovered barges. We would be using the same Panamax-size vessels that currently come to our docks now.

Economics and coal prices play a factor but it’s really about trying to enhance the project — both from an operating cost perspective and for efficiency. It’s faster and less expensive to move direct to vessel than double-handle the product.

Once we start construction, it should take about 12 to 14 months to become operational.

BCSN: What about Texada Island?

JS: Our preference would be to load direct to vessels at FSD but we would retain the option to use barges to provide flexibility.

BCSN: The application process received great scrutiny as well as significant opposition. First, could you describe the scope of the application and, following, comment on the opposition.

JS: Yes, it was a very thorough and rigorous process with lots of analysis and consultation. We had third-party consultants look at every aspect of the project — marine, environmental, health, toxicology, fire, structural, product, all facets were looked at in great detail. We did that very early on in the process because we wanted to make sure we fully understood what we were getting into.

We take our obligations to the community very seriously. We have longshoremen and staff who work here — some second and third generation — and we all have families in the communities. We’re not interested in putting anyone at risk so we went out of our way to ensure that coal was safe to transport and handle.

Coal is not regulated as a dangerous good. Further to our own studies, we know that other coal facilities have handled coal for over 40 years with no higher incidents of health impacts and Delta did studies on air emissions and air quality in the early 1990s that also showed no incidents of health issues related to dust exposure. There has been no correlation between the transport of coal and health issues in any of the research done.

Regardless of those findings, we have taken additional steps to ensure care and control when transporting coal — measures that would reduce and eliminate dust and exposure. The current amendment we’re considering would mitigate potential dust exposure even further

June 2015 BC Shipping News 15

INDUSTRY INSIGHT >>> Marine traffic on the Fraser River rivals that of the St. Lawrence Seaway... and it’s important to recognize the many opportunities afforded by the waterway. because the vessels have closed hatches rather than uncovered barges.

BCSN: Following on that line of thought, could you describe your efforts in addressing environmental sustainability?

JS: Sure. Aside from addressing concerns about coal (which have led to such measures as spraying coal cars twice with an environmentally friendly binding and topping agent; eliminating the need for stockpiling; ensuring all conveyor systems and transfer points are fully enclosed and fitted with wetted dust suppression systems; and limiting loading to only those times when the wind is less than 40km/hour), we take an active role in initiatives like Green Marine and another environmental sustainability program through Macquarie.

For Green Marine, we’ve been members for a few years now. Jurgen Franke, our Director, Engineering and Terminal Development, sits on the Green Marine West Coast Advisory Committee and we’ve been very engaged in the program. We also have a sustainability program and an environmental management policy where we encourage staff to submit ideas and

Today’s Challenges,

Rewards Tomorrow’s

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PARRISH & HEIMBECKER LIMITED est.1909

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16 BC Shipping News June 2015

look for ways to improve our environmental footprint — for example, we’ve put auto-switches in all of our sheds so that the lights turn on and off when vehicles enter and exit; we’ve put auto-switches and auto-shut-offs on our equipment and enforce anti-idling policies; we have a hybrid locomotive on site which has a 60 per cent fuel reduction; and we are one of the first facilities to look at getting an electric forklift in the 36,000-lb lifting capacity range.

And as mentioned, Macquarie has a pretty substantial program they administer through Dupont. As part of that, we’re required to provide quarterly reports that track our progress with sustainability or environment-improvement initiatives.

BCSN: What about safety and staff training?

JS: We take an aggressive approach on safety. We’ve been successful at reducing our time loss injuries. With just over 300 fulltime-equivalent employees, we currently sit at around two to 2.1 compared with an industry average of around four.

About Jeff Scott

President & CEO, Fraser Surrey Docks eff has a Bachelor of Commerce (Finance Major) from the University of British Columbia and a Diploma in Shipping and Marine Operations from British Columbia Institute of Technology.

Jeff worked at Port Metro Vancouver during his University studies, where he was involved with Cruise Operations in the summer and he was a Communications Operator for the Port Police in the winter.

Jeff joined Fraser Surrey Docks LP in 1993. During the last 20 years, he has had the opportunity to work in various roles within the organization which contributed to his wealth of experience and knowledge in the industry. On January 1, 2009, he was appointed as the new President and CEO of FSD and Pacific Rim Stevedoring.

Jeff took over responsibility for the organization at the height of the Global Financial Crisis. His first task was to restructure the company due to an unprecedented loss in cargo volumes. He was able to quickly right size the business and set a new vision for FSD. He has led the terminal’s diversification into the handling of bulk products while building a stronger foundation to support the steady growth of its traditional commodity base.

In April 2011, Fraser Surrey Docks opened their new agricultural products handling facility and, in August 2014, received conditional approval to build a direct transfer coal facility. Jeff continues to explore growth and development opportunities at Fraser Surrey Docks that will bolster the success of the terminal as well as the local and provincial economy.

Jeff has been involved in numerous industry and stakeholder groups and currently sits on the Boards of the BCMEA and WESTAC. He is also involved in various community outreach programs, such as the Foundation Board for the Reach Child and Youth Development Organization.

Jeff is married, has three children and resides in Delta. He is actively involved in his community and volunteers his time coaching and serving as an Executive on various community sports team associations.

J

INDUSTRY INSIGHT We’re constantly holding awareness and communications campaigns as well About Fraser Surrey Docks as performing risk analyses, and active raser Surrey Docks LP, is the largest modern, investigations and follow to impleFraserups Surrey Docks is an efficient, reliable, multi-purpose multi-purpose marine terminal on the West ment new protocolsmarine and terminal procedures. that has been serving our customers on the West of 53 North America, serving within the needs of We also work handCoast in hand with our of British Columbia forCoast over years.

Operating Port unions (ILWU Locals 502, 514 and 517) their Container, Break Bulk, Project Cargo, Forest ProdMetro Vancouver, Fraser Surrey Docks efficiently handles Breakbulk, to improve safety and we are actively Pacific Rim Stevedoring ucts and Bulk customers in the Port Metro Vancouver Containers, Bulk-Agri-Products, Project Cargo, Forest products and involved in National Occupational Safe area and around the world since 1962. Their facility is more. to Fraser and Health campaigns, for Look example, we Surrey Docks for solutions to your next cargo located in the greater Vancouver area of Surrey, British Columbia along the banks of the Fraser River. movement on the West Coast! www.fsd.bc.ca held a series of events to raise awareness In addition to direct access to the South Fraser Perimeter Road, FSD’s rail connections to the terminal and receive feedback.

In terms of staff training, primarily, are provided directly by the Canadian National Railway, Canadian Pacific Railway, Burlington Northern BCMEA is responsible for training all Santa Fe Railway (BNSF), and Southern Rail of British Columbia. longshoremen but we work closely with In 2014, Fraser Surrey Docks handled 262 vessel calls, 50,668 truck calls and 6,553 railcars moving them to provide input into their promillions of tonnes of cargo such as steel, lumber and logs, containers, project cargo and agri-bulk grams and procedures — for example, products. Over the past year, FSD gained approval from Port Metro Vancouver for a direct transfer coal adjustments specific to FSD on things like orientation, awareness and understandfacility that would handle four million metric tonnes per year. ing of what we do.

FSD is currently considering a request to amend the project to allow for direct-to-ocean-goingBCSN: For my last question, I’d like to vessel loading (and eliminate or reduce the number of barges required). To accommodate the amendlook at a much bigger picture — beyond ment, a number of modifications would be required, including lengthening the reach and height of Fraser Surrey Docks — and ask about the economic contributions of the Fraser River. the marine vessel loader; shifting the receiving pit and modifying the building construction; shifting I sometimes feel that gets overlooked. the location of the wastewater settling basins (but keeping the dimensions the same); adding dust JS: Yes, you’re right. There’s a real lack mitigation measures through the use of closed hatches on vessels and spraying empty outbound railof understanding about the economic sigcars; reducing the size of the overall water catchment area; adjusting the rail loop (which would allow nificance of the Fraser River and what it for the front gate to remain where it is); and adding up to 20 more full-time jobs. means for local communities. Collectively — and looking at the bigger picture — we Currently, with almost 300 full-time equivalent employees and $40.2 million in wages, FSD’s total have to do a better job at communicateconomic benefit to British Columbia in 2014 was over $67 million. Over the last 10 years, FSD has ing and raising awareness of the working invested $125 million into capital assets; they have invested $150 million in short-term capital projand industrial component of the river. ects (in the last five years); and plan to potentially put more than $500 million into other capital inThis should be done in conjunction with vestments in the next five to 10 years. environmental stewardship and sustainability efforts so the economic story isn’t For more information, visit www.fsd.bc.ca. overlooked.

And in fact, a number of businesses along the South Fraser River have been discussing ways to do that — to bring together stakeholders of the Fraser River to provide a voice that speaks to its importance. We feel there are some real opportunities to bring industrial partners together to work on initiatives like communication and awareness around the things we do and the economic benefits that are realized.

The Richmond Chamber of Commerce released a major study last year — The Economic Importance of the Lower Fraser River — and it was a real eye-opener.

Marine traffic on the Fraser River rivals that of the St. Lawrence Seaway in terms of tonnage and jobs and it’s important to recognize the many opportunities afforded by the waterway. The study concluded that, given its strategic assets, the Fraser River is poised to become an even more significant economic drive in the future. BCSN

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FRASER SURREY DOCKS

June 2015 BC Shipping News 17

HISTORY LESSON Photo credit: Dave Roels (www.daveroels.com)

T

Those strange yellow mountains

Vancouver Wharves’ sulphur piles

By Lea Edgar

Librarian/Archivist, Vancouver Maritime Museum

here is an iconic Vancouver landmark that doesn’t get very much acclaim. You have seen it in film and television, and every time you spotted it, you could confirm the production was filmed in Vancouver. You have pondered it during your walks on Stanley Park’s seawall. Tourists have asked you about it. It’s the Vancouver Wharves’ sulphur piles. Sitting on the edge of the North Shore, the bright yellow mounds cannot be missed.

Personally, I have always wondered about the site’s history, why it is there and what the sulphur used for, so I decided to find out.

The Vancouver Wharves terminal was built back in 1959 by the Williams-Hudson Group of England on leased lands from the Squamish First Nation. The facility has five berths and manages both bulk and break bulk cargo. The terminal was built by filling the intertidal foreshore with coarse dredged material. It was constructed at a time when mineral exports from Vancouver were on the rise. Vancouver Wharves is one of Vancouver’s two major sulphur export terminals (the other being Pacific Coast Terminals in Port Moody). The company leased the site from Pacific Great Eastern Railway, which later became BC Rail.

The first vessel to ship out sulphur from Vancouver Wharves was the Greek freighter Aspis in 1962. It was loaded with 5,660 metric tonnes of sulphur originally from British American Oil Company’s gas processing plant at Pincher Creek. Four thousand tonnes were shipped to India and 1,660 tonnes to Formosa (Taiwan).

>>> While the sulphur export trade is central to...the Vancouver Wharves site, the local fame of the sulphur piles is what will likely leave a lasting legacy.

Williams-Hudson maintained the site until 1983 when it became a wholly owned subsidiary of Stolt-Nielsen. It was then run by a management-investor group in 1987 and finally sold to BC Rail in 1993. BC Rail invested heavily in developing the site into a modern terminal. Then, in 1999, BC Rail created BCR Marine which was made up of Vancouver Wharves, Canadian Stevedoring and Casco Terminals. In 2003, Canadian Stevedoring and Casco Terminals were sold off, and eventually in 2004 BC Rail was too. Vancouver Wharves then operated as a commercial crown corporation until 2007 when Kinder Morgan purchased the operation. Kinder Morgan now operates the terminal under a 40-year lease from the government. According to the company, sales of mineral concentrates and sulphur are the largest portion of Vancouver Wharves’ revenue. Since it acquired the site, Kinder Morgan has invested $150 million into expanding and creating environmental improvements at the facility.

Image courtesy of Kimon Berlin.

18 BC Shipping News June 2015

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The piles of sulphur are used primarily in fertilizer. Sulphur can also be used in other products such as pigments, pharmaceuticals, cosmetics, batteries, detergents, bleach, matches, fireworks, and shampoo to name a few. It is produced as a by-product of the processing of natural gas and oil. China is a major buyer as it imports a third of the global sulphur production annually.

From Vancouver, the sulphur is also shipped to Australia, New Zealand, South Africa and Brazil.

One interesting story (or urban myth?) relating to the sulphur piles is that West Vancouver teenagers used to sneak into the terminal and ski down them as a kind of graduation rite of passage. Some even say that management has allowed employees to snowboard down the hills of sulphur. I can neither confirm nor deny that either event has actually occurred, but I find the idea amusing nonetheless.

The popularity of the sulphur piles is reflected in the number of times it has been used as a backdrop in film and television. Two of the most notable instances are in the TV shows Highlander, as a backdrop to a fight to the death between immortals, and Stargate: SG-1, where it served as an alien planet. The piles have also appeared many times in local photography and paintings.

While the sulphur export trade is central to and profitable for the Vancouver Wharves site, the local fame of the sulphur piles is what will likely leave a lasting legacy. That striking colour inspires the imagination of both Vancouverites and tourists alike. As long as there is a desire for sulphur, those strange yellow mountains are here to stay.

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June 2015 BC Shipping News 19

TERMINALS

Photo by Dave Roels, www.daveroels.com

Terminal upgrades and expansions powering growth spurt

By Ray Dykes

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>>> Grain is big business in the port — in 2014 it was second only to coal in bulk volumes... could discover up and down the coast for all commodities from coal to grain, containers to aggregates. The total capital cost is in the billions of dollars.

Richardson Grain Terminal

Commissioning should begin this fall on a $130-million grain silo expansion and facility upgrade that will increase storage capacity by 80,000 tonnes for grains and oilseeds at the North Vancouver Richardson Grain Terminal. According to Richardson’s General Manager, Phil Hulina, the expansion will allow the terminal to handle over five million tonnes of grains and oilseeds every year. And it can’t happen fast enough. Last year, as the expansion work continued, Richardson handled 4.9 million tonnes, following what it thought was a bumper 3.8 million tonnes in 2013.

Photo by Dave Roels (www.daveroels.com)

rom the Stewart World Port in the north to Westshore Terminals in the south, many British Columbian terminals are undergoing widespread upgrades aimed at increasing efficiency and powering new growth.

Nowhere is this more apparent than in the grain industry where most of Vancouver’s terminals are undergoing radical upgrades or awaiting Port Metro Vancouver permit approvals to go ahead with expansion or modification plans.

Grain is big business in the port — in 2014 it was second only to coal in bulk volumes and tallied a record 19.6 million tonnes, up 22 per cent over 2013 levels.

Wheat still leads the way at almost nine million tonnes, followed by canola at six million tonnes, specialty crops at three million tonnes, animal feed — up 152 per cent — at 813,000 tonnes, and barley at 696,000, a 73 per cent increase.

No wonder most of the port’s five grain terminals have expansion on their minds.

Here’s a list of as many terminal upgrades or expansions BC Shipping News

AMIX Group helps with the upgrades at Richardson Grain Terminal.

20 BC Shipping News June 2015

Hulina says the terminal will handle about 4.8 million tonnes again this year and even more in 2016 of canola, peas, wheat, durum, barley and lentils from Western Canada destined for Pacific Rim countries.

Most of the expansion infrastructure is now in place but two main galleries have yet to be connected up; an electrical substation is being rebuilt; and the upgraded electrics and control systems are being completed in time for what is expected to be a reasonably lengthy commissioning process this fall.

Alliance Grain Terminal

A change in the travelling shiploader specifications saw Alliance Grain Terminal Ltd. go back to Port Metro Vancouver for a revised development approval permit. The terminal on the south shore of Burrard Inlet had received earlier permit approval for a Shipping Gallery Replacement Project in March 2014.

Alliance CEO David Kushnier, says final engineering work is now being done and building should start within the next six months on a project that will take 18 months to complete. The high throughput, automated shipping gallery will take loading capacity from the current 600 tonnes per hour to 1,200 tph. But, first the terminal needs a new development permit from PMV and then a building permit.

In 2014, Alliance handled 2.3 million tonnes of wheat, canola, soy beans and peas and Kushnier says that will increase to three million tonnes per year with the new loading gallery which will be able to load from either side of the dock.

TERMINALS Viterra Pacific Terminal

It’s two down and two permits to go for Viterra at its Pacific Terminal on the south shore of Port Metro Vancouver in a $100 million plus upgrade project. A permit for dredging was received last September to take the depth to 13.7 metres from the current 10.6m and allow Panamax vessels to dock. That work is expected to take up to three months to complete. Then, last October, PMV issued a permit to allow structural, seismic and electrical upgrades. The two outstanding permits are for a shiploading system upgrade and a modernization of dust control systems.

The Regina, Saskatchewan-based Viterra hopes to have completed all of the upgrades by the end of 2016. The work, which does not increase the terminal’s footprint, will bring its shipping capacity up to six million tonnes a year for agricultural products including peas, canola, flax, lentils, soybeans and corn.

Columbia Containers

A terminal upgrade is in the plans of Columbia Containers at its Commissioner Street location on the south shore of Burrard Inlet. Two permit applications are now being considered by Port Metro Vancouver for a new grain transloading facility including silos plus the installation of a new modular office building.

PMV has approved two earlier permits allowing the demolition of Columbia’s System II building, scale room, and augur shoot; and also allowing a sheet pile wall realignment.

If approved, the new grain handling facility on land Columbia leases from the port will unload grain from rail cars and trucks and load ocean containers and trucks. The removal of an existing grain elevator would be a future permit application. In 2006, Columbia demolished corroded storage silos on site in anticipation of the current project proposal for 13 new grain silos.

in the central site — work that should be completed by the end of the year.

Then the fun begins in earnest for Westshore’s Director of Engineering & Environmental Services, Greg Andrew, as the first two pieces of major equipment — a new shiploader for Berth 1 and the first of three new stacker-reclaimers — will arrive in April 2016. The existing shiploader on Berth 1 will be loaded onto the heavy lift vessel once the new machine has been offloaded, making it a major engineering exercise.

Then in 2017 and 2018 a new stackerreclaimer will arrive each year, eventually replacing the three oldest of the four big machines now working the 54-hectare site. The demolition of existing office, maintenance, workshops and warehouse buildings will clear the way for an additional 120,000 tonnes of stockpile space.

The project will also lift annual throughput capacity from 33 to 36 million tonnes per year without adding to the size of the terminal’s overall footprint.

The major upgrade comes as Westshore has had back-to-back record years of 30.1 million tonnes in 2013 and 31 million tonnes in 2014, making it the busiest single facility in Port Metro Vancouver by volume. Westshore will remain fully operational throughout the replacement

of aging equipment despite partial shutdowns to accommodate changes and expects to threaten a new record again this year.

Neptune Bulk Terminals

The $450-million capacity upgrade at Neptune Bulk Terminals on the north shore of Port Metro Vancouver, which began in 2009, is poised at about the halfway point. The second phase — to add a second rail car dumper, new conveyors, a longer mobile shiploader boom, and an additional rail loop — is still active “and continues to move forward,” says Neptune President Jim Belsheim.

However, as yet no timing for the completion has been set.

Low coal prices and a global oversupply probably haven’t helped.

However, last year Neptune handled a record six million tonnes of coal thanks to a new stacker-reclaimer installed in Phase 1. Overall, the facility shipped a record total of 16.2 million tonnes thanks to a strong year by potash, plus shipments of phosphate rock and canola oil.

Pacific Coast Terminals

These are exciting times at Pacific Coast Terminals Co. Ltd. in Port Moody with the inaugural shipment of canola oil

Westshore Terminals

Work is well underway on the first leg of a five-year, $270-million infrastructure reinvestment project at Westshore Terminals at Roberts Bank in Delta – the busiest coal export terminal in North America. A new office, workshop, warehouse and employee facilities complex should be completed and occupied by early September at the northern end of the site and that will clear the way for the demolition of a string of other buildings

June 2015 BC Shipping News 21

TERMINALS made March 15 this year and the groundbreaking for a new potash rail handling facility set for June 2.

PCT is busy growing its business these days in a $200 million plus project and its Vice President & General Manager, Wade Leslie, says things are humming along.

“We are pretty well aligned and continue to work on it, things are coming along.”

The only flies in the ointment are permits expected any day from Port Metro Vancouver for building and construction of the potash handling shed including a rail car dumper, and another permit to allow dredging to bring the shipping basin from its current 10.5 metres to 14.5 m, which will allow 24-hour access.

“Permitting is a little slower than we had hoped,” says Leslie, but there’s no doubting the project is bringing new enthusiasm to the terminal.

PCT last handled potash from 1965 to 1971 and the move back is due to a 34-year contract it has signed with K+S Potash Canada. Leslie hopes to have the potash handling project completed by the end of Quarter 3 in 2016 and the first shipments should follow soon after.

The new canola handling business will see about 400,000 tonnes of the product handled each year; potash will ramp up to about 2.8 mtpy; and the declining sulphur business should stay around 1.1 mtpy. The major project will mean PCT will be doubling its employment base over the next year or so to about 120 fulltime jobs.

Squamish Terminals

The multi-million dollar under-the-dock fire at Squamish Terminals on April 16 this year was a difficult situation for the community and for the deep-water break bulk terminal 32 nautical miles north of Port Metro Vancouver.

22 BC Shipping News June 2015

No cause has been revealed as yet for the fire under the East Dock and after dismantling the dock to help in firefighting and surface debris removal, Fraser River Pile & Dredge has now shifted its focus to the final clean up task of sweeping the ocean floor for debris.

Thankfully, there was no cargo or human loss in the fire which took days to extinguish. All subsequent investigations into possible environmental threats or damage have proven false alarms and the community has been told it is safe to carry on normal life.

Remarkably, it has also been business as usual for Squamish Terminals. Although logistically challenging, the terminal is using its West Dock to handle all shipments of wood pulp and lumber exports; plus pipeline and construction steel imports in vessels up to Panamax in size.

While the cause of the fire is still under review, the terminal is now exploring conceptual designs for a dock rebuild, says Kim Stegeman-Lowe, Vice President, Administration at Squamish Terminals.

Meanwhile, she adds that the cleanup “has gone very well” and the terminal is now focusing on designing and investing in a new dock which is unlikely to use wooden pilings, concentrating instead on steel and/or concrete. No timeline for the rebuild has been set.

Site preparation work is expected to start in March 2016 and construction should be completed by the fall of 2017.

The two-storey, dual-purpose complex will be used by CBSA to inspect imported containers and trim a significant number of truck movements to the existing Burnaby facility eliminating an average of 2,000 tonnes of greenhouse gas emissions a year. It will also house offices and a warehouse plus outside container storage.

Port Metro Vancouver is planning a Tsawwassen Container Examination Facility on industrial land just five kilometres from the Deltaport container terminal. The project is aimed at taking some of the pressure off a similar facility in Burnaby and will give Canada Border Services Agency a second site for marine container examination using technology rather than relying just on manual scans.

A plan to expand Centerm from its current 900,000 TEU (20-foot equivalent) capacity to 1.5 million TEUs is being discussed among project partners in preparation for its Preliminary Design Phase including geotechnical and environmental studies.

This will lead to a Project Definition Report, possibly by the end of the year, and then on to the permitting phase. If approved, construction could start in late 2016.

Tsawwassen

South Richmond

Although it is about five years away, if approved by Port Metro Vancouver, an aggregates processing and distribution facility is planned for Richmond at the south end of No. 7 Road on industrial lands owned by the port.

Lehigh Hanson Materials Limited is behind the project to be known as the South Richmond Terminal and will lease the lands from the port. The project will include a wash plant, aggregate material stockpiles (sand and gravel), a reclaimer, a rail loading facility and two marine berths on the Fraser River for loading and unloading aggregate barges.

If the project gets the green light from PMV there will be several years of preloading and other site preparation before construction which is expected to begin in 2020.

Centerm

TERMINALS Operated by DP World Vancouver, Centerm currently handles about onefifth of all containers in the port each year. The project will take advantage of the port’s recent decision to close the aging Ballantyne Cruise Terminal just east of Centerm and consolidate cruise operations at Canada Place.

Centerm wants to extend its container storage area westward, create a combined in-gate and elevated parking structure; extend its rail yard; rehabilitate the Ballantyne Pier; and reconfigure the container yard.

One added benefit is that the expansion is expected to reduce existing road and rail congestion and improve safety for all port users.

>>> Faced with a banner year for cruise ship visits, it’s no wonder the Greater Victoria Harbour Authority is pushing forward with its Phase 3 of an Ogden Point Master Plan.

Part of a process to develop a 25-year road map for the sustainable growth and development of the port, Phase 3 of the Ogden Point Master Plan is a functional and facilities plan. It follows a Phase 1 technical feasibility study and a Phase 2 market assessment conducted between 2008–2013. The GVHA plans to have the Master Plan completed in 2016 for its facility which can handle three cruise ships at once and continues to be a highly popular port-of-call.

The latest phase of the plan will identify ideal site uses and infrastructure.

Ogden Point Cruise Terminal Faced with a banner year for cruise “Success of the plan,” says GVHA Chief ship visits, it’s no wonder the Greater Operating Officer, Sonterra Ross, “will be Victoria Harbour Authority is pushing measured by how it achieves economic, forward with its Phase 3 of an Ogden social, environmental and technical Point Master Plan. The capital city cruise requirements of the site with a strong ship facility has never been more popular level of support from the stakeholders.”

Since it took control of much of the with 229 ships and 513,000 passengers BCSN June 2014_1/2 horz 4/29/14 3:07 PM harbour Page 1 from the Federal Government expected this cruise pg season.

in 2002, the GVHA has spent $13.4 million improving facilities at Ogden Point including $4 million on a Pier B expansion in 2010 and, in 2013-2014, work included replacement of old bollards with new ones at Pier A, caisson upgrades and transportation improvements for the terminal.

A new CEO, Ian Robertson, took over at the GVHA on April 27, 2015 and the Ogden Point future is very much on his plate during what is expected to be the best cruise season ever.

Fraser Surrey Docks

This Fraser River terminal is working its way through legal appeals after the granting last year by Port Metro Vancouver of a permit to set up a direct transfer coal facility capable of handling about four million tonnes a year. “We are working our way through the appeals process,” says Jeff Scott, President & CEO.

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June 2015 BC Shipping News 23

TERMINALS “We haven’t set a date for the start of construction but we are still going ahead with the project. We’re looking at the best timing from a business perspective. ” (Jeff Scott is this month’s BC Shipping News Industry Insight feature — see page 12).

The river terminal recently announced that it was considering applying for an amendment to the project that would replace the uncovered barges — about 640 of them each year — with the direct-tovessel loading of Panamax-size ships — about 80 per year — which will have covered hatches. After a public consultation phase, FSD will decide whether to submit the application in June of this year.

Nanaimo Assembly Wharf & Duke Point Plans to redevelop the lightly used Assembly Wharf in the Nanaimo Port Authority downtown harbour for shortsea shipping duties have been abandoned. The geotechnical report was “quite depressing” says Nanaimo Port Authority President & CEO, Bernie Dumas.

The soil at the 1930s vintage wharf landside was not conducive to the weight of stacking containers, he adds.

The port authority had received $4.65 million from the Federal Government, which it was matching with a similar amount of its own funds, to bring the Assembly Wharf up to standard for the shortsea shipping container project.

But, all is not lost and Dumas and DP World, which has the contract to operate the port’s major multi-purpose terminal at nearby Duke Point, are moving ahead with an upgrade project.

Soon to leave Brazil bound for a new Nanaimo home, is a lightly used Liebherr mobile harbour crane with a 104-metric-tonne lift capacity, which is expected by June and will be the largest mobile harbor crane in Western Canada. Dumas says the old Centerm container crane, bought for $1 many years ago, will be retired. It was getting difficult to operate the old crane and the port authority had been forced to manufacture its own spare parts.

Meanwhile, the NPA has applied for federal Build Canada funding in a $20 million P3 project with DP World to redevelop Duke Point and double the cargo space at the terminal. The project hinges on winning federal funding.

Fairview Terminal

First came the expansion news for Prince Rupert’s Fairview Terminal in March…and then news of its sale in April from Maher Terminal LLC to DP World Ltd. for $580 million. Very much in the news these days, the container terminal has started work to boost its capacity by 500,000 TEUs to 1.3 million TEUs in a project that expands to the north of the existing terminal. Due for completion in mid-2017, the project will see a second 150metre deep-sea berth added; an additional four gantry cranes; and landside reclamation to allow a redesigned higher capacity rail track configuration.

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TERMINALS Once it has the necessary regulatory approvals for its purchase, DP World, which operates ports from China to Peru, will have the option of further expansion to the south of the existing terminal.

Prince Rupert Port Authority Vice President of Trade Development & Public Affairs, Shaun Stevenson, says the terminal, which has grown in throughput faster than any other in North America, will look at the southern expansion “when it makes sense to activate it.”

Prince Rupert RORO

While it doesn’t rank high in the major scale of terminal expansions and upgrades, the Prince Rupert Port Authority has created a roll-on, roll-off ramp on Ridley Island near the existing Prince Rupert Grain Terminal. The ramp was relocated from the Fairview Container Terminal in a $10-million project and is now handling project cargoes, local construction modules and other barge trade.

It has a nine-acre staging area with direct access to CN Rail or easy truck use of Highway 16. The project is a joint venture between Tidal Transport and the Coast Tsimshian First Nation.

Ridley Terminals

No news is puzzling from the federally-owned coal export facility, Ridley Terminals Inc. in the Port of Prince Rupert. With coal throughput dwindling because of mine closures, there is not a word emanating from the facility about its potential sale by the Federal Government, or even a progress report about its $200-million capacity expansion from the current 18 million tonnes to 30 million tonnes. Ridley handled only 7.1 million tonnes in 2014 (down 41 per cent) and at the end of Q1 it was down by 43 per cent over the same quarter of 2014. Official word from the terminal is that it is under a “directive to say nothing.”

Tidal Transport and the Coast Tsimshian First Nation have entered into a joint venture for a Ro-Ro ramp in Prince Rupert.

So far, Moffat says all kinds of break bulk imports — “we have a number of potentials” — are being considered for the new port, which will be able to handle vessels up to Panamax-size of about 82,500 deadweight tonnes. Project cargoes, pipe, modules, or most types of break bulk cargoes are all being considered.

“We are also working on securing an anchor tenant shipping wood chips or pellets,” he adds. That will allow Stewart World Port — a Canadian company — to go ahead with Phase 3, a bulk loading system. The port has a crawler crane currently but will be seeking a travelling, rail-mounted shiploader capable of handling 3,000 tonnes per hour.

“We are still shooting for next year on Phase 3, it’s all designed and ready to go, we just need that anchor tenant,” says Moffat.

Stewart Bulk Terminals

Construction permits from the Canadian Coast Guard are still awaited by Stewart Bulk Terminals for a $15-million shipside loading project at the bulk facility.

Unfortunately, with lots of talk about possible LNG projects in the Port of Stewart, the terminal upgrade has become embroiled in discussions over future shipping issues in the Pearse and Portland Canals leading to Stewart. Previously, Stewart Bulk had cleared the environmental permits stage.

President and joint owner of Stewart Bulk Terminals, Dan Soucie says Transport Canada is involved in the process and the 20-year-old facility seems to have become tied up in the discussions over shipping in the channels, which was unfortunate.

The bulk terminal’s plan was to shorten the current trestle loading equipment to allow it to do alongside the dock loading of vessels. Stewart Bulk started receiving truckloads of copper produced at the Red Chris Mine for the first time early this year in trade that could go as high as 140,000 tonnes a year. It also received about 80,000 tonnes of copper concentrate from the Huckleberry Mine. A third customer, Yukon Zinc, is in financial restructuring and no tonnage was received in 2014.

Stewart World Port

Construction of a 230-metre-long, 20-metre-wide break bulk wharf is past the three-quarter mark in a $200-million project now completing the second of three phases in the northern port of Stewart. The Chief Development Officer for Stewart World Port, Brad Moffat, says the dock will be open for break bulk from June and the first ship to use the new facility will likely call in July or August.

Simplified & Reliable

June 2015 BC Shipping News 25

INLAND TERMINALS Inland logistics and terminals drive Gateway growth

By Darryl Anderson

Managing Director, Wave Point Consulting

T

he New West Partnership Premiers from British Columbia, Alberta, and Saskatchewan indicated in 2014 that their top priority was solving problems with getting western goods to market. A year later, the challenges and pressures facing the freight transport system and logistics sector have increased. Economist Phil Davies stated, “Total North American Pacific Coast container traffic reached 24.7 million TEU’s in 2014, finally recovering to the peak levels reached in 2006 and 2007.”

“High container traffic volumes are driving demand for well-located logisticsoriented industrial land. As there is a shortage of suitable sites on the coast, then the best alternatives are within growing inland terminals,” observed Richard Wozny, principal Site Economic Ltd. This article will explore how the development of inland logistics and terminals are not only serving the needs within the New West Partnership region but are also an essential driving force in the growth of Canada’s Asia Pacific gateway.

Saskatchewan

In Regina, Saskatchewan, the Global Transportation Hub (GTH) is the developer, maintainer and regulator of a greenfield project that is being specifically designed for firms in the warehousing, distribution, transportation and logistics sectors. The 1,800-acre facility benefits regional shippers in southern Saskatchewan with its strategic position adjacent to CP’s mainline between Regina and Moose Jaw. The GTH integrates important transportation infrastructure such as rail and the national highway system. It provides opportunities for the co-location of distribution centres. Clients of the logistics park include Loblaws, Consolidated Fastfreight, the Emterra Group and others.

26 BC Shipping News June 2015

>>> In Saskatoon, both infrastructure improvements and CN’s supply chain solutions approach is helping drive growth.

Recognizing the need for timely logistics infrastructure development (that is environmentally sustainable), the inland port authority was created in 2013 through the passage of Bill No. 81 by the Saskatchewan legislature. The act not only created the GTH Authority but also created a streamlined process for logistics infrastructure development in the province.

GTH Vice President or Business Development Rhonda Ekstrom emphasized that the GTH has seized on the unique differentiator of being a true inland port to attract new investment and create supply chain solutions. Ms. Ekstrom stated, “We’re autonomous and self-governing. We can streamline processes to help clients move quickly through activities such as development plans and permitting.” The GTH is involved in everything from site zoning and by-laws to property design and roadway. For logistics service providers, the GTH is banking on the fact that efficiency in development and infrastructure design will drive a higher return on investment for companies operating at the inland port and shipping cargo through the facilities. As a greenfield developer, the GTH offers land for sale or lease.

A key piece of the logistics infrastructure within the GTH footprint is Canadian Pacific’s intermodal facility.

Open since January 2013, the intermodal facility is both larger and more efficient than the terminal it replaced. CP’s facility is located on a 300-acre industrial parcel owned by the company. The intermodal

facility is designed to handle up to 250,000 containers per year, five times more than their previous terminal.

The co-location of logistics service and new transportation infrastructure provides a number of potential supply chain benefits such as reducing costs, lowering transit times, and creating physical space to handle growth. GTH’s value proposition was attractive to both Loblaws — who built a new world-class distribution center to serve Western Canada — and Consolidated Fast Freight — who opened a 10,000-square-foot cross-dock facility on 10 acres of land.

To date, the GTH and CP Rail’s intermodal terminal are serving the supply chain needs of regional customers that require a variety of international and domestic products — ranging from imported consumer products like electronics, clothing and furniture to auto parts and the export of agricultural specialty crops such as peas, beans, lentils, soya beans and alfalfa that move through the Asia Pacific Gateway.

In Saskatoon, both infrastructure improvements and CN’s supply chain solutions approach is helping drive growth.

Since 2007, two projects totalling $20 million as part of the Asia-Pacific Gateway and Corridor Initiative were undertaken by the City of Saskatoon. The projects improved access to the Canadian National Railway’s (CN) intermodal freight terminal located in Southwest Saskatoon and facilitate Saskatchewan shippers’ participation in Asia-Pacific trade.

Dan Bresolin, CN’s Marketing Director, Intermodal and International,

INLAND TERMINALS highlighted the fact that CN is bringing together five different supply chain participants (shipper, shipping line, rail road, inland terminal and container) at a location such as Saskatoon to create a supply chain solution for exporters. This could involve the domestic repositioning of a container originating from a location in central Canada into Saskatoon so the contain becomes available for an export opportunity. Bresolin stated, “Success of the port, shippers and railways starts with the round-trip experience of the 40-foot box. Success in generating a new import box depends to a large degree on how well the rail carrier can mitigate round-trip costs of the container for the shipping line.”

Since Saskatoon’s container exports exceed imports, CN is actively managing relationships and taking opportunities to introduce shipping lines (who own the boxes) to export opportunities. For CN, offering supply chain solutions means “being a relationship builder and matchmaker,” said Bresolin. CN Saskatoon intermodal facility is supporting the regional economy by handling a wide range of export commodities such as hay, lentils, split peas, peas, specialty wheat and a variety of proteins. The expansion of the Prince Rupert container terminal is also likely to drive the demand for inland logistic and terminal services in Saskatoon.

Alberta

The industrial real estate sector in Calgary is so far weathering the economic slowdown brought on by low oil prices, according to a recent Colliers International report. One of the reasons is that the transportation and logistics sector remains resilient. Supporters of the Calgary logistics cluster would argue that the driving force is the lowest total landed cost for Alberta shippers.

The scope and scale of Calgary’s logistics activity can be assessed by a number of performance measures including the size of shippers’ facilities and logistics companies operating in the region.

Major shippers include Costco, Wal-Mart, Loblaws, Sears, Canadian Tire Group, Marks Work Warehouse, Forzani, Canada Safeway, Gordon Foods, and Sysco.

One recent major current development is the construction of a one-millionsquare-foot Home Depot distribution hub near the CP Railway intermodal terminal. The project includes a

425,000-square-foot rapid deployment centre and adjacent 650,000-square-foot stocking distribution centre. The new facilities are slated to open in December 2015 and February 2016 respectively and will serve 58 stores in Alberta, British Columbia, Manitoba and Saskatchewan.

Within the Calgary region, there are over 4,000 logistics and transportation companies offering all the services that shippers require. Major firms include: CPR, CN, Mullen Group, Livingston International, Cole International, DHL Supply Chain & Global Forwarding, Panalpina, Inc., Kuehne + Nagel, C.H. Robinson Worldwide, Inc., DB Schenker Logistics, Agility, UPS Supply Chain Solutions, CEVA Logistics and FedEx. While the region posts an impressive roster of service providers, Mr. Reginald Johnston, logistic consultant for the Calgary Regional Partnership, offers one statistic that provides a partial glimpse into the volume of freight traffic that is sure to catch the attention of BC Shipping News readers. He observes that, in terms of “just rail picks, 810,000 TEU movements occur annually in the region (CPR and CN combined).” In comparison, the marine containers terminals in Prince Rupert handled 618,167 TEUs and Port Metro Vancouver 2,912,928 TEUs in 2014.

To support Asia Pacific Gateway traffic, CN has been offering import/export container train service between the Port of Prince Rupert and Calgary and Edmonton since 2012. CN’s decision was based on the fact that until recently Alberta had one of the fastest growing industrial- and

consumer-based economies in North America. In response to growth opportunities, CN relocated its Calgary intermodal terminal to a new, larger 680-acre logistic park in Rocky View County near the airport in Calgary. The $200-million logistics park, along with connectivity to both the Port of Prince Rupert and Vancouver, provides customers with fluid access to world markets for consumer goods and industrial materials, as well as two prime export routes for its forest products, plastics and agricultural products.

British Columbia

Discussions regarding inland terminals and logistics solutions in B.C. often focus on CN’s assets in Prince George. The community’s geographic location provides for direct access to both the Port of Prince Rupert and Vancouver for export shippers. The company has an 84,000-squarefoot warehouse with 10 acres of outside storage. CN’s adjacent intermodal rail yard features two 2,400-foot pad tracks, truck-pick-up capabilities and an automated gate system. In 2012, CN’s Prince George transload facility was expanded to allow regional shippers to take advantage of a facility that is co-located inside their Intermodal yard. Prince George allows for in-park movement of containers, significantly reducing drayage and handling costs for customers. CN’s Dan Bresolin advised that the company has added staff and forklift capacity at Prince George to handle increases in lumber and pulp shipments and the emerging forage exports

June 2015 BC Shipping News 27

INLAND TERMINALS

Photo courtesy Global Transportation Hub

The Global Transportation Hub in Regina, SK is a 1,800 acre inland port. The Greenfield development is designed to serve companies and organizations in warehousing, distribution, transportation, logistics, as well as light processing and manufacturing.

that are occurring in the region. Along with applying supply chains solutions similar to those used in Saskatoon, the company is also in a good position to make other operational changes to support growth that will come from an expanded Prince Rupert container terminal.

With an inland port development occurring at Ashcroft Terminals, the increase in choice of logistics service providers will no doubt appeal to some forest products exporters that have traditionally relied on Lower Mainland transload operators. Earlier this year, Canaan Group, a global logistics company, announced they would commence container handling operations and logistics services at Ashcroft Terminal starting in the second quarter of 2015. Partnering with selected shipping carriers, Canaan Group will operate container handling services including, on/off rail, storage, container and truck management, transloading and distribution of products.

Kleo Landucci, Vice President, Projects and Development for Ashcroft Terminal, firmly believes that the logistics value proposition provided by their facility is the result of a one-of-a-kind geographic location that offers cost savings for shippers. Located at the Eastern end of CP/ CN mainline co-production, Ashcroft is the last location westbound, and the first location eastbound, at which mainline traffic can stop, to or from Metro Vancouver.

Using a new Canaan facility being developed at Ashcroft, customers will

28 BC Shipping News June 2015

have the option to source load their products and return containers back to Ashcroft Terminal to be shipped out by rail. Customers will also have the option to send products directly to Ashcroft Terminal where Canaan will transload to containers. The loaded containers will go back on rail to the marine terminals for vessel loading.

The location of Ashcroft Terminal provides some manufacturers that are currently trucking forest export products to the Lower Mainland, a more costeffective location. Export products being targeted include lumber, OSB, plywood, pulp, and wood pellets. Container line and railway company support for logistic efficiencies provided by inland terminals is vital since empty containers from eastern locations will need to repositioned to Ashcroft Terminal by rail.

Conclusions

The New West Partnership region covers 2,258,486 square kilometres. As a result of this vast geography, the location of population centres and the needs of customers, each inland logistics cluster and terminal offers a distinct value proposition. However, a unifying theme is that the co-location of logistics services and collaboration improves supply chain performance and cost. Innovation and infrastructure investments are helping to ensure that shippers through Canada’s Asia Pacific Gateway ports have a healthy choice of options to serve regional customers.

Inland logistics parks and supply chain collaboration strategies are most effective when shipping lines have an economic reason to supply containers to these locations. With the full opening of an expanded Panama Canal soon upon us, there will be more intense competition to serve Asia-generated container traffic volume from the U.S. Gulf and East Coast ports. Perhaps it is time to realize the true direction of our competitive threats.

B.C. port’s West Coast market share of container traffic has remained surprisingly stagnant even in spite of the difficulties experienced by U.S. West Coast ports last year. If “a robust export ability depends on obtaining and attracting an import box,” as CN’s, Bresolin suggests, the debate about what role inland logistics facilities can play in the supply chain should not solely be limited to shifting growth away from port locations. Rather, discussion and economic analysis of how the total system can be leveraged to grow our container market share so we remain resilient through the full economic cycle should be an important part of the policy discussion. Increased traffic and logistics resiliency will help support the investments required by marine container terminals and others to support the needs of the next generation of super-sized ships.

Darryl Anderson is a strategy, trade development, logistics and transportation consultant. His blog Shipper matters focuses exclusively on maritime transportation and policy issues. http://wavepointconsulting.ca/shipping-matters.

SPILL RESPONSE MV Marathassa spill

A first-hand account of efforts

B

C Shipping News caught up with Michael Lowry, Manager, Communications, Western Canada Marine Response Corporation, to get a first-hand account of the response to the MV Marathassa spill in English Bay on April 8. While official reports will no doubt be forthcoming over the weeks ahead, Michael’s observations are meant only to give BCSN readers insight into a typical spill response — the many players involved and the steps taken to ensure an effective operation.

BCSN: Let’s start at the beginning. When did you first hear there might be an incident in English Bay? ML: At around 6:00 pm, both the Canadian Coast Guard and Port Metro Vancouver advised that they were hearing of a sheen in English Bay. I should note that CCG is working on a comprehensive timeline document that all agencies will sign off on. That document is still being drafted so I can only talk to what I know directly.

At 8:06 pm, we were officially activated

by CCG. When WCMRC crews arrived on scene at 9:25 pm, they started encountering heavy oil so they began skimming recovery operations right away. At this point, it’s an unknown spill of unknown origin.

In a normal situation, the first thing the crew would do is control the source if it’s known. The next step is to contain it and then begin skimming operations. In this case, the source of the spill was unknown and, therefore, the product was unknown.

We were suspecting it was bunker oil but at this point, there was no ship identifying themselves as the source. It wasn’t until 4:00 am that our crews, using the MJ Green’s infrared camera, suspected that the likely source was the MV Marathassa after oil continued to reappear at the stern of the ship following initial skimming operations. It was at that point the decision was made to boom the vessel.

BCSN: Could you describe what sort of efforts were made to identify the source?

ML: Transport Canada officials were onboard the Marathassa, trying to find a leak. Divers were sent down to look for leaks. They weren’t finding anything and that’s why it was not clear if it was that vessel. All our crews could do at that point was continue with skimming

>>> ...it was ironic that at first, people were complaining that the operation was inadequate and then, they complained that it was impossible that the recovery rate was that high. operations, which were ongoing throughout the night. Even though no official leak was found, the decision was made to boom that vessel. Once the decision was made, it was boomed within the hour.

BCSN: The media found an “expert” who reported that a U.S. response would have been less than half an hour. How accurate is that?

ML: I would like to dispel the notion that the length of time it took to boom the ship was somehow a reflection of a delayed response. Our crews were on scene within 80 minutes of being activated and began recovering product from the water and conducting containment sweeps. In those first hours it was still an unknown spill of unknown origin. In fact, it wasn’t until Friday that the Marathassa was officially identified as the responsible party. If you don’t know the source

of the spill, you cannot boom it. It’s as simple as that.

BCSN: Could you describe the equipment and assets used during the operation?

ML: In total, we had about 35 staff working on the spill. We deployed 1,700 metres of boom — 1,100 during the initial 24-hour period to contain the Marathassa and another 700 to re-boom the ship because the oil on the boom was re-soiling the ship. We had six vessels, including the MJ Green, WCMRC’s newest vessel, on scene. Multiple vessels were dedicated to skimming sweeps — they were doing huge sweeps of English Bay, capturing the product before it reached the shore and then skimming the product they recovered.

One of our mobile skimming vessels, the Burrard Cleaner No. 3, was sitting at the hull of the Marathassa collecting oil as it came out. The skimming operation was being

maritime and commercial law on canada’s west coast Nevin Fishman Mark W. Hilton Katherine A. Arnold James Vander Woude

W. Gary Wharton David K. Jones Connie Risi Joanna R. Dawson

Peter Swanson Catherine A. Hofmann David S. Jarrett Megan Nicholls

Thomas S. Hawkins Tom Beasley Russell Robertson

associate counsel: Lorna Pawluk tel: 604.681.1700 fax: 604.681.1788 emergency response: 604.681.1700 address: 1500–570 Granville Street, Vancouver, BC, Canada, V6C 3P1 web: www.bernardllp.ca

June 2015 BC Shipping News 29

Image courtesy WCMRC

SPILL RESPONSE

Figure 1: WCMRC has vessels and assets stationed throughout Vancouver Harbour.

directed from the air by Scott Wright, WCMRC’s Director of Response Readiness, up in CCG’s helicopter and Trevor Davis, South Coast Area Manager, was directing crews from the ground. Meanwhile, the MJ Green was finding patches of oil, chasing the oil down and cleaning it up.

By about 3:00 pm on April 9, the National Aerial Surveillance Program sent out their surveillance plane which calculates that, at that point, 80 per cent of the known product has been recovered. Ultimately, all of the recoverable product was captured so that 80 per cent was a snapshot of the situation at 3:00 pm.

BCSN: I’d like to understand more about how NASP was able to calculate the initial volume of the spill as well as confirm cleanup efforts were being effective. Further to that, “experts” in the media were noting that it’s impossible to clean more than 20 per cent of any given spill. Could you explain?

ML: Yes, it was ironic that at first, people were complaining that the operation was inadequate and then, they complained that it was impossible that the recovery rate was that high. In terms of calculating the size of the spill, the NASP plane has equipment on board that allows them to measure the size of the slick and the estimated thickness and, based on those parameters, determine the volume of the spill. The final number still needs to be confirmed by Transport Canada who will review the records and logs of the vessel and then compare that to the amount recovered by WCMRC to come up with a more accurate volume but the NASP calculation is usually pretty close.

30 BC Shipping News June 2015

Regarding the 80 per cent recovery, when you look at international averages for recovery rates, they’re primarily based on open-water spills — or unsheltered waters. In an unsheltered, openwater environment, recovery rates are lower because there is more wave action and other issues at play. WCMRC rates for sheltered recovery are much higher when the spill takes place in a sheltered environment.

If you look back historically, for example, in 2007 when we responded to the Inlet Drive spill, the recovery rate was about 80 to 90 per cent so the numbers reported in this spill are realistic.

Having said that though, no two spills are ever the same — there are so many different factors — the weather, location, type of product, the tides and current. It’s very hard to compare individual spill response efforts in terms of per cent recovered.

BCSN: Could you compare this spill to the exercises you undertake on a regular basis?

ML: The operation worked exactly how the regime is set up to work. There is a spill and, in the absence of identifying the Responsible Party (RP), CCG steps in as the on-scene commander. So someone is always in charge. CCG initiated the Incident Command System (ICS) right away including Unified Command and the entire operation was run through ICS and included representatives from the Province (the BC Ministry of Environment); the Federal Government (CCG, Transport Canada, Environment Canada, Wildlife Services); First Nations (Tsleil Waututh

and Squamish on site and many others by phone); and the Municipalities (Vancouver, West Vancouver and North Vancouver). There were about 90 people in total involved in the ICS. The Incident Command Post was set up at Port Metro Vancouver’s Operations Centre and everyone worked together very effectively through the ICS system.

Once it became obvious that the source of the spill was the Marathassa, the captain and crew were very co-operative from what I understand. Through their P&I representative, they hired Polaris Applied Sciences Inc. to represent them in the Unified Command. However, CCG remained as the Incident Commander.

BCSN: Did you come away with any lessons learned?

ML: We recently did an exercise in Nanaimo which was a 1,000-tonne exercise. That exercise and the Marathassa spill reaffirmed the importance of collaboration with the municipalities and First Nations. Continuing to build those relationships will be an important part of the lessons learned. Fortunately, we had already been engaged with emergency planners in Vancouver, West Vancouver and the North Shore. The key lesson is making sure that the information gets passed on and making sure that everyone in those crucial early days is aware that things are in hand.

BCSN: On that note, the Mayor of Vancouver and the Premier of the Province came out with extreme criticism in the early hours of the spill. How did the people who were active in the operation feel when they heard that criticism?

ML: There was a true disconnect. To be standing in the Incident Command Post with people from the Province and the City, we were surprised to say the least.

We’re standing side by side doing exactly what they’re saying we’re not doing. There was some serious frustration obviously.

First responders worked throughout the night to protect Stanley Park and protect Ambleside and for those guys to be attacked as opposed to celebrated for their work was extremely demoralizing.

So that was really unfortunate.

Eventually, Mayor Robertson did tour the ICP. Everyone in Unified Command went around the room and said how well they thought the response was going.

Everyone acknowledged that the first 12 to 18 hours was, as is to be expected, a flurry of activity. But after that initial period, people developed a rhythm and worked within the ICS system and

SPILL RESPONSE everyone in that room — the Province, First Nations, everyone was talking about how well it was going.

BCSN: Could you put that 2,700 litres into perspective — what are some examples of other spills where WCMRC has responded?

ML: The largest spill we’ve ever done is 100 tonnes (one tonne equals 1,000 litres). That was the Inlet Drive spill.

There was a spill in Squamish in 2007 that resulted in about 39 tonnes and then there was the Queen of the North sinking. The Marathassa spill was less than three tonnes. We are regulated to clean up 10,000 tonnes but we have equipment capacity for 26,000 tonnes. That doesn’t mean we can’t do larger spills — but under the Canada Shipping Act regulations a Tier 4 10,000 tonne spill is the highest certification.

We get called out about 15-20 times per year. Typically they’re minor — pleasure craft or a lot of calls from vessel operators who may have seen something on the water. Everyone on the water has a responsibility to report a spill if they see one. We do get quite a few calls from people seeing sheens and slicks, but under the CSA, WCMRC must be activated by members, CCG, ports or a third party willing to pay for the spill response.

BCSN: I’d like to spend a minute on shore-side clean-up efforts — could you describe those?

ML: Environment Canada and the BC Ministry of Environment use a shoreline management technique called “SCAT” — the Shore-line Cleanup Assessment Technique. The idea with SCAT is that you divide the shore into segments and have teams of experts walk the beach and record the degree of oiling and recommend the best clean-up techniques. They will then summarize their findings and recommendations back to Unified Command for the operational implementation for the next Incident Action Plan. Then WCMRC deploys contractors to go in and clean that area. The contractors are companies that have been trained in advance on shoreline clean-up techniques. Because only trace amounts of oil were being found, the teams were using absorbent pads to pick up the oil. Had it been more than that, we would have employed more aggressive treatment techniques with the approval of the municipalities and First Nations. Each area is re-examined by SCAT experts and representatives from Unified Command and they will sign off on the cleaned segments.

BCSN: From start to finish, how long did the whole operation take?

ML: Our official last day was on Friday, April 24. The vessel went back up to Cascadia Terminal to load grain so it could complete its journey and we placed a precautionary boom around it there and then escorted it back out to its anchorage.

It’s in an assessment mode now where crew keep checking the beaches to see if oil comes back up again. All of our vessels were decontaminated and placed back in a ready state.

The oil on the water was recovered by April 9 and the bulk of the shoreline clean up was completed in seven days with small teams conducting spot cleaning until April 24. The cleaning of the ship’s hull was completed on April 24.

BCSN: Another criticism from “experts” in the media was the idea that had the Kits Coast Guard base been kept open, it would have improved response time. Could you comment on that?

ML: In terms of our response time, no, it wouldn’t have made one bit of difference.

And in terms of our response efforts, WCMRC does not include CCG equipment in our inventory. The regime is set up so

that we, as the Response Organization, have the capacity to respond to spills so we don’t rely on what may or may not have been available from CCG. BCSN: Would WCMRC benefit by having one of their own vessels and assets stationed at Kits?

ML: We have a fleet of 31 vessels.

Eleven of those are positioned all around Vancouver Harbour. The MJ Green, for example, is stationed at Canada Place along with assets.

BCSN: Do you have any recommendations for additional resources that would assist your response efforts?

ML: That discussion is taking place within the larger context of a full regime review as part of the Tanker Safety Expert Panel reports. Some recommendations from their first report have already been made — for example, Area Response Planning is being implemented in four areas with higher levels of traffic. From that planning process, new standards for things like response times will flow.

We’re very supportive of this — moving to planning standards that reflect the risk and the traffic volume will only serve to improve our capacity. BCSN

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SPILL RESPONSE Phase II report

Tanker Safety Expert Panel finalizes all-encompassing review of Canada’s spill response regime

U

pon review of the Phase II report of the Tanker Safety Expert Panel — Requirements for the Arctic and for Hazardous and Noxious Substances Nationally — one might come to the following conclusions. First, there’s not much missing. The three-man panel consisting of Captain Gordon Houston, Mr. Richard Gaudreau and Dr. Michael Sinclair, has drafted an allencompassing, comprehensive review of prevention, preparedness and response requirements for ship-source spills in the Canadian Arctic and of hazardous and noxious substances (HNS) in Canadian waters. They are to be complimented on an outstanding job. The second conclusion is that, for the most part, Canada is starting with a near blank slate in developing programs and policies that would address both areas of focus.

One additional observation: With an overall price tag for Phase I implementation estimated to be in excess of $100 million, Phase II would be significantly higher. Significantly. When BC Shipping News met with Captain Houston to gain insight into the efforts of the Panel, he did not hazard a guess as to the cost but noted that “you’re basically starting from scratch so yes, much higher.”

He softened the remark by adding that recommendations for the Arctic could be spread over a number of years in tandem with the increase in commercial activities.

Follow up to Phase I

The Panel’s first report — A Review of Canada’s Ship-source Oil Spill Preparedness and Response Regime — offered 45 recommendations to the Federal Government covering areas of prevention, preparedness and response; strengthening the polluter pay principle; leadership and stewardship; communication and engagement; and continuous improvement. While the Panel concluded that “the overall preparedness and response regime is fundamentally sound,” the report noted that the last comprehensive review of Canada’s spill response regime was 20 years ago with the Brander-Smith Report and that, since that time, resource extraction, port activity and shipping traffic volumes had increased; new technologies and best practices in the field of oil spill response had been developed; and that the review would “set Canada on a course of continuous improvement.”

Of the 45 recommendations, the Federal Government accepted 44. The remaining recommendation — that of disbanding Regional Advisory Councils — was rejected, however, the Review had called for its dissolution because it had the impossible task of educating the public and providing advice to government without having any funding in place to do so. That may have changed as Houston believes that a budget has been established for RACs. So in a way, the result is better than the recommendation.

Houston notes that the secretariat who assisted that Panel during their review has morphed into an implementation team and are busy engaging and assisting various government departments. Indeed, many of the recommendations are already being acted upon — to name just two, four pilot regions have been established for Area Response Planning and the Canadian Coast Guard has already proven (with the MV Marathassa spill) that they are more than capable of mounting a response using an Incident Command System.

>>> The three-man panel...has drafted an all-encompassing, comprehensive review... [and] they are to be complimented on an outstanding job.

Phase II at a glance

As per its title, the Phase II report deals with Canada’s prevention, preparedness and response requirements for ship-source spills in the Canadian Arctic; and prevention, preparedness and response requirements for ship-source releases of hazardous and noxious substances (HNS) in Canadian waters. It was a pleasant surprise to see that the Panel had elected to include a third section entitled Marine Casualty Management.

The Tanker Safety Expert Panel

Captain Gordon Houston is the former President and CEO of the Vancouver Fraser Port Authority. After a seagoing career spanning three decades, Captain Houston was Harbour Master for the Prince Rupert Port Corporation before joining the Vancouver Port Authority where he held a variety of positions, culminating in his appointment as President and CEO. Dr. Michael Sinclair is the former Director of the Bedford Institute of Oceanography in Dartmouth, NS. He holds a Ph.D. in Oceanography from the University of California’s Scripps Institution of Oceanography. In 2000, Dr. Sinclair was appointed Director of the Bedford Institute and Regional Director of Science, Maritimes Region, for the Department of Fisheries and Oceans.

Richard Gaudreau practised law from 1969 until the end of 2012. His experience includes all activities related to maritime and admiralty law as well as international trade. He has vast experience before Canadian and Québec courts and was an active member of the National Coalition on the Coast Guard Recovery Program and the Canadian Bar Association.

June 2015 BC Shipping News 33

SPILL RESPONSE In total, the Panel made 43 recommendations — 25 for the Arctic, 17 for HNS, and just one for Section 3. Arctic recommendations were based on an understanding that changes were occurring to sea ice patterns with a resulting increase in economic development activities. With this increased activity, improvements to prevention, preparedness and response need to keep pace. Recommendations are generally split into two categories — one for updating and aligning regulations to reflect international standards and to provide guidance and oversight for ship operators; the other to focus on response operations, risk assessments and activities that would strengthen navigation aids and other preventative measures as well as preparedness and response resources.

34 BC Shipping News June 2015

In covering HNS, the Panel recommended that a national preparedness and response program should be aligned with international regimes (“but should also integrate additional elements to address current and future Canadian realities”), and specifically, that Canada should accede to the HNS Protocol of the IMO’s International Convention on Oil Pollution Preparedness, Response and Co-operation (OPRC Convention). Given that there is currently no HNS regime in Canada, the Panel’s recommendations outline a path to a program that would establish such parameters as training and exercises, identification of response resources, contingency planning and access to technical expertise.

The remaining section — Marine Casualty Management — had only one

recommendation: “The Government of Canada should improve the timeliness of decision-making for marine casualties by establishing a centralized marine casualty decision-making authority acting in the public interest, similar to those authorities established in the United Kingdom and Australia.”

Section 3 first

When it came to Phase II, Captain Houston confirmed that the Panel was given more latitude in their terms of reference and were encouraged to “step outside of their mandate” if it was felt to be important to the overall development of a world-class response regime. Section 3 recommends that Canada establish a position similar to that of the U.K. (i.e., the Secretary of State’s Representative, or SOSREP, who has the power to override any decision related to a marine casualty incident if it is in the public’s interest) or to that of Australia (i.e., the Maritime Emergency Response Commander, or MERCOM, with similar powers).

“We looked at this recommendation from a number of different angles — legal, scientific, etc.,” said Houston, “And we met with Hugh Grant, the current SOSREP in the U.K., and became convinced that it was a good recommendation.” Given the similarities in governance with overlapping regional and federal authorities, the Panel felt that the Australian MERCOM model would be a better fit for Canada.

Houston described a hypothetical scenario in which a stalemate occurs in the process of a spill response. “Those in disagreement will start deferring to their bosses for a decision and eventually it will become a political football while the spill spreads further,” he said.

“In these instances, time is of the essence.

You need someone that can act in the public’s interest and ensure that decisions can be made and carried out quickly and effectively.” Houston further noted that coastal European countries are considering similar positions with some, such as Denmark, close to implementation.

“The only person the SOSREP answers to is the Secretary of State,” said Houston, “and the only thing the Minister can do is fire the SOSREP. They have a phrase: ‘back him or sack him’ — otherwise the Secretary of State is not allowed to interfere and if the SOSREP deems the public’s interest is not being addressed, he has full authority to step in and direct operations.”

When meeting with Hugh Grant, the panel heard of an example where the SOSREP used his authority to avoid a significant disaster. A container ship in distress in the English Channel was being refused port of refuge from every country in the world. The vessel started to leak so the SOSREP ordered the vessel to be beached at Lyme Bay, just south of Cornwall. “If it had sunk in the English Channel,” Houston said, “it would have had a tremendous impact on the environment and economic activities such as trade, tourism and fishing. So that’s when he acts. When the consequences of inaction are a threat to the public interest.”

“From my perspective,” Houston commented, “this recommendation could provide the best value out of all the recommendations.” He was quick to note that his colleagues on the Panel may have different answers to the same question.

The Arctic

In describing the extent of research and review the Panel undertook to reach their recommendations, Captain Houston noted that Canada is one of the leaders in addressing ship-source spills in the Arctic. “Of the Arctic Council (Canada, Denmark, Finland, Iceland, Greenland, Sweden, U.S., and Russia), Denmark, Finland, Greenland and Sweden have done little to address the issue,” he said.

“The U.S. is more focused on the south except for Valdez and Anchorage where community response models provide a good base for response.”

And while there are collaborative agreements in place and a guideline on how a joint spill response regime could work, “the pamphlet is not about how to do it, but rather what could — or should — be done.”

And while the recommendations are not listed in terms of priority, Houston felt that the first three — dealing with charting and navigation — would be the key priorities for the Government’s initial attention. However, the big problem is the cost. “To do the whole thing by today’s modelling standards would be very expensive,” said Houston.

“The Northern Corridor Initiative is where they should be focussing. A lot of the charts through the Northwest Passage are already updated and it’s not the regular commercial traffic that would benefit but rather the voyages of opportunity — environmental or niche cruises as well as regular cruises. Some

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SPILL RESPONSE of the charts in that area haven’t been looked at since the 18 th century.”

Other issues — such as proof of competency for Ice Navigators, pilotage requirements, the lack of a Responding Organization (RO) and the availability of response resources — are identified and addressed however Houston expressed concern that adequate resources would be needed to ensure the Canadian Coast Guard — identified as the lead for many of the recommendations — was not restrained in their efforts. “As with other government departments, CCG has seen several cuts to their budget,” he said. “They’re at the stage now where if they have to respond

to a spill, the costs will come out of the year’s budget and it can take two to three years to get it back. It’s hampering them.”

Before moving away from the subject of the Arctic, Captain Houston had one last comment: “We met with a lot of citizens and a lot of groups during our investigations,” he said, “and I don’t think there is anywhere in Canada where we saw such a willingness and earnestness to get things done. They were eager to help and offered great support to our work. It was greatly appreciated.”

HNS

At the surface, this topic for discussion is short. Aside from some international regulations that provide guidance, there is no marine HNS response regime in place in Canada and we need to start working on one. Simple enough. Yet Houston points out a few realities that will be difficult to resolve.

“The problem is that there are over 6,000 items on the HNS list,” Houston said. “Spills will either float, mix or sink or evaporate. HNS rarely floats; heavy metals will sink; gases and some liquids will evaporate but most HNS will mix with the water. The actual bit you can do anything about is really quite small. Once it’s diluted in the water, all you can do is monitor to assess the direction of travel and the rate of dilution.”

“The other problem is that unless it’s carried in bulk, it’s going to be very difficult to mount an effective response,” Houston said as he explained that if the HNS is carried within a container, on a container ship holding thousands of other containers, and no one knows where the specific container holding the HNS is located, it could potentially be a big problem. If the vessel sinks, hundreds of containers could be floating and responders would have no idea where they had been stowed.

“When Hugh Grant, the current SOSREP, made the decision to beach the container ship in Lyme Bay, they had to take all the containers off one by one because the bills of lading didn’t tell them anything. The information is there but not in a format that’s useful for a response operation. The bills of lading will say something like ‘45 containers of Nitric Acid. Weight 450 tonnes’ but not where it is stowed. The Stowage Plan will tell you where a container is stowed, but not what is in it. Marrying this information for up to 15,000 containers must be done manually.”

This is reflected in the Panel’s recommendations to Transport Canada and CCG. Houston further noted that Canada was not alone in trying to resolve this problem. “The HNS Protocol within the OPRC Convention has very broad terms and a country that wants to accede to it only has to have an HNS response system in place. The actual system is not defined.” Noting that only about 12 countries have actually acceded to the Convention, Houston says Canada is ahead in terms of addressing the issues. “Implementation of our recommendations would create a base of a system,” he said.

Conclusion

36 BC Shipping News June 2015

For Houston, effective regimes for both the Arctic and HNS will rely heavily on prevention while preparedness and response capabilities are being developed. And, like the conclusions reached in Phase I, Phase II calls for more resources to allow CCG to take a leadership role in developing an effective regime.

So what now? Now that the Panel has fulfilled their mandate and provided their recommendations, it is up to government to gather feedback, gain consensus on accepted recommendations, and develop plans for implementation. And, oh yeah, allocate a budget. BCSN

SPILL RESPONSE Clean Pacific offers a serious discussion on spill response

T

he CLEAN PACIFIC Conference & Exhibition happens June 16-18, 2015 in Vancouver, B.C. The event takes place at the Vancouver Convention Centre and is designed to bring education and training in spill preparedness and response to its attendees. The conference will cover a wide range of spill preparedness and response topics, with a focus on the large growth in crude transportation by rail, pipeline and vessel. Hundreds of operators, responders, regulators, environmental groups, equipment providers and First Nations will be in attendance to discuss best practices and lessons learned with their peers in the spill response community.

Three concurrent tracks take place at CLEAN PACIFIC: Prevention; Planning & Preparedness; and Response & Recovery.

Over a two-day period, each track will hold six educational sessions led by key industry stakeholders. In addition, CLEAN PACIFIC will host a Keynote Address delivered by Roger Girouard, Assistant Commissioner for the Western Region of the Canadian Coast Guard, and a Mega Session led by a panel of stakeholders discussing the future of marine and inland energy transport across the West Coast of Canada. The final day of CLEAN PACIFIC will kick-off with Jurisdictional Updates from the regulators responsible for implementation and enforcement in the Pacific States & British Columbia and a presentation of the Pacific States & British Columbia Oil Spill Task Force Legacy Awards.

>>> Hundreds of operators, responders, regulators, environmental groups, equipment providers and First Nations will be in attendance to discuss best practices and lessons-learned with their peers...

Training workshops take place on Tuesday, June 16, and include Building and Executing a Communication Strategy Before a Spill Occurs and Shoreline/ Inland Response and SCAT Surveys. After the Keynote Address and Mega Session on Wednesday, June 17, attendees can choose from multiple conference sessions.

Wednesday conference sessions include:

• How Marine Safety Regimes Prevent Oil Spills • Assessing Risk Protocols/Risk Assessment and Continuous Improvement; • Assessing Risks in Marine Environments • Advances in Planning • Information Sharing: Getting Everyone Prepared • Developing Technologies in Response • Define the Toolbox and Use the Right Tool for the Job On Thursday, June 18th, the day kicks off with the Jurisdictional Updates and Legacy Awards. Immediately following, conference guests can attend multiple

BC SHIPPING NEWS

conference sessions running throughout the day.

Thursday conference sessions include:

• Jurisdictional Updates and Legacy Awards • Managing Risk in the Inland Zone • Evolution of Prevention — How to Take the Results to the Next Level • Funding and Insurance Issues • Mounting a Transboundary Response • Advances in Drills and Training • Inland Planning and Preparedness for Rail and Pipelines • Wildlife Response Issues • Response Safety • Operations — Hot Topics, Cool Places The CLEAN PACIFIC exhibit hall will feature 50+ exhibitors showcasing their products and services for spill prevention and response. Attendees will have the opportunity to meet face-to-face with all of the exhibitors to discuss their unique products and services over a two-day period.

For information on registration, session descriptions and a list of exhibitors, visit www.cleanpacific.org.

Commercial Marine News for Canada’s West Coast.

For subscription or advertising information, contact BC Shipping News T: 604-893-8800 / E: jane@bcshippingnews.com or visit: www.bcshippingnews.com

June 2015 BC Shipping News 37

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SUSTAINABILITY Prince Rupert Port Authority and Pinnacle Renewable Energy

A competitive advantage with sustainability initiatives

By Edward Munro PR Associates

T

Green Marine

PRPA is a member of the Green Marine Environmental Program, an independent environmental certification program that promotes sustainable marine practices.

The program audits reported air emissions such as sulphur dioxide, nitric oxide and greenhouse gases (GHGs) as well as invasive marine species, cargo residues, oil leaks, noise, dust, odours, and luminous pollution. Both the Port Authority and most of its terminal operators are members of Green Marine. As a result, “There is a high level of engagement and collaboration in sustainable operations across the marine community in Prince Rupert,” according to Veldman. He adds, “Green Marine provides industry standard

>>> “Our sustainability plan includes initiatives such as membership in Green Marine, ongoing measurement of environmental conditions and providing shore power to container vessels...”

Photo: courtesy of Prince Rupert Port Authority

he Prince Rupert Port Authority (PRPA) is serious about environmental stewardship. In fact, all of the Port Authority’s activities are guided by fundamental principles of environmental sustainability, including pollution prevention, preservation of environmental integrity, efficient use of resources, and continuous improvement. The sustainability initiatives also help make the vessel and rail operations more competitive. Ken Veldman, Director of Public Affairs, explained to PR Associates how the Port’s sustainability program works.

First initiated in 2010, the program is now an essential component in achieving the Port Authority’s growth plan.

PRPA focuses on building long-term, sustainable connections. “We are building a culture for collaboration that seeks a higher standard,” explains Veldman. “Our sustainability plan includes initiatives such as membership in Green Marine, ongoing measurement of environmental conditions and providing shore power to container vessels, which together realize port efficiencies and represent best practices in environmental stewardship.”

benchmarks against which we can measure progress. We have a sustainability plan in place that allows us to plan for the long term. This plan — combined with our analysis of baseline environmental conditions — will guide our environmental initiatives through expected growth in the next 10 years and beyond.”

The growth Veldman speaks of is already underway. Over the past 10 years, the port has grown considerably to accommodate the increased trade and connectivity with major ports in China, Japan, Korea, and other burgeoning Asian markets. Over 23 million tonnes of cargo passed through the port in 2013, a substantial increase over the five million tonnes moved in 2005. The growth rate

is expected to continue, especially given the recent announcement of an expansion project for Fairview Terminal. While Fairview has seen annual growth in the 15 to 18 per cent range year over year, topping out at 620,000 TEUs in 2014, the expansion will bring capacity up to 1.3 million TEUs by mid-2017. Veldman attributes the increase in port traffic to the unique advantages that Prince Rupert offers shippers. “We save our customers up to three days in sailing time because we offer the shortest distance from Asian ports to North America. We also have a deep, ice-free harbour that allows safe and direct navigation for the largest vessels visiting the West Coast of North America today.”

Sustainability operations at the Prince Rupert Port Authority include environmental monitoring and incentive programs for shipping lines to reduce their carbon emissions.

June 2015 BC Shipping News 39

Photo courtesy of Pinnacle Renewable Energy

SUSTAINABILITY

The Westview terminal in Prince Rupert is Pinnacle’s state-of-the-art facility capable of loading Panamax class vessels in record time.

Prince Rupert’s strategic advantage

Prince Rupert builds on its strategic advantage through its fast and efficient loading and unloading facilities. For example, Fairview Container Terminal recently added a fourth gantry crane that allows for more capacity while accelerating loading and unloading operations. CN’s continental rail network provides the Port with its connection to North America’s most populated markets and its richest resource areas. CN’s northern mainline tends to avoid the urban congestion that can result in delays and impact reliability.

In addition, CN’s pass through the northern Rockies is significantly lower in elevation than other corridors through the Rocky Mountains, meaning CN can run longer, faster, more efficient unit trains. More efficient transportation means less fuel, and coupled with the shorter sailing distances to Asia, makes the Chicago to Prince Rupert to China route one of the lowest carbon footprints available to shippers. As Veldman spoke about the future, he noted, “Our growth strategy is on pace to increase from the current 500 annual deep-sea vessels to an estimated 1,500 by 2024. We’re undertaking substantial preparation to ready the Port of Prince Rupert for dramatic increases in marine traffic and are ensuring we recognize that our existing environmental footprint is a big part of that.”

Shore power

PRPA’s shore power service is beginning to catch on. Ships that use shore-supplied electricity while in berth can manage all cargo handling while also providing power for onboard ventilation, refrigeration, lighting and other operations. Known in the industry as “cold ironing,” the practice saves on fuel costs while also cutting carbon dioxide and air pollution emissions. Prince

40 BC Shipping News June 2015

Rupert offers the first shore power service for container ships in Canada. Vessels are beginning to take advantage of this service as they obtain the necessary electrical hook-up equipment onboard. Veldman explains, “We are starting to see more vessels capable of using this important service, and we are confident that the use of shore power will soon become the norm.”

The Port Authority also introduced its Green Wave environmental incentive program to encourage vessels and shipping lines to reduce greenhouse gas emissions. The program uses the Environmental Ship Index Scale, among other criteria, to assess emissions from visiting ships. Reduced harbour dues are offered to vessels that reduce emissions by burning cleaner fuels, for example. The program is a success with 111 ships qualifying for a total of $99,548 in reduced fees so far in 2014, representing 166 port calls.

Pinnacle Renewable Energy

The Pinnacle Renewable Energy wood pellet shipping facility is one of the PRPA’s newer terminals. Pinnacle is a supplier of softwood pellets, a sustainable fuel source. The terminal was constructed to accommodate larger Panamax vessels that can load at a rate of 2,000 tonnes per hour. As Veldman says, “Because this new terminal is capable of handling large Panamax vessels, the port has further diversified by shipping clean-burning biofuel to European and Asian markets.” As the PRPA continues to expand its operations, the sustainability plan is paying dividends with greater efficiency and a cleaner environment, both on the water and land. The Port Authority’s growth program is tightly integrated with sustainability practices that produce confidence about the possibilities to continue serving its customers and the community.

Meeting the demand for low-carbon fuel

PR Associates met with Vaughan Bassett, Senior Vice President Sales & Logistics at Pinnacle Renewable Energy. The discussion focused on biomass fuel in the form of wood pellets that has been quietly growing into a major export for B.C. over the past 20 years. Bassett has an extensive background in commercial trading and logistics and is responsible for managing customer relationships and product movement across the globe.

Bassett says, “When Pinnacle Renewable Energy began producing wood pellets in the early 1990s, they were made from dry shavings. Over time, Pinnacle learned to incorporate all saw milling residuals (shavings, sawdust and bark) and all of the harvesting residuals (thinnings, trimmings, tops and branches) into their pellets. At certain plants today, Pinnacle can process round-wood too, which sets us up to receive timber killed either by fire or beetle and which has little or no value elsewhere in the greater forest products industry.”

Europe is the largest export market for Pinnacle’s wood pellets, where most of their customers are electrical power plants seeking a lower carbon alternative to burning coal. Bassett estimates that of the approximately 20 million tonnes of wood pellets going to Europe, 11 million tonnes are for electricity generation while nine million tonnes are used for commercial and residential heating. This latter category is highly fragmented and supplied mainly in 15 kg bags versus the full vessel loads servicing the power plants.

One of the largest buyers of wood pellet fuel is the United Kingdom. The biomass fuel initiative gained momentum in 2009 when the U.K. began its Low Carbon Transition Plan that

SUSTAINABILITY has enabled thermal coal-fired power plants to make the switch to low-carbon energy sources, including wood pellets.

The move to using lower-carbon fuel sources for power generation has been a key driver that has allowed Pinnacle to increase its exports over the past six years. These actions also resulted in Pinnacle being awarded the BC Exporter of the Year for 2013.

In the U.K., the electricity provider, Drax Group, is on track to become one of the largest biomass-fueled energy providers in Europe. Bassett explains the conversion to wood pellets from coal began with a co-firing process where up to 10 per cent wood pellets were mixed with coal. Over time, the percentage of wood pellets was increased to over 80 per cent and now, Drax have made the switch to 100 per cent biomass fuel in two out of their six generating units, with plans to convert a further unit in 2015 and possibly one more in the next couple of years. Other generating companies in Europe are similarly advancing plans to convert coal-burning units to biomass, to be fueled principally with wood pellets.

The Pinnacle advantage

Pinnacle operates six plants across British Columbia including its original plant in Quesnel. The other facilities are in Williams Lake, Armstrong, Burns Lake, Houston and Meadowbank. With six operating plants and another on its way next year, Bassett explains, “there is a consistent and steady flow of product from multiple sources that significantly diminishes the risk of interruption.

Power plants that rely on any 100 per cent dedicated fuel are very sensitive to fuel supply risk, so we have set about reducing this for our wood pellet fuel in a number of important ways.”

According to Bassett, “Having multiple plants is the obvious first step. Each of these plants also enjoys the benefit of belonging to the most experienced wood pellet producer in the world. Furthermore, each of these run on residuals supplied by the most senior and significant saw milling companies in B.C. Another huge risk reducer is our wholly owned Westview Terminal in Prince Rupert. This is a stateof-the-art dedicated wood pellet terminal, capable of loading up to Panamax class vessels in world-beating times. In addition, it means that we can load ships both out of Vancouver and Prince Rupert, because all of our plants are connected by rail to both ports.” Bassett further

contends, “This makes Pinnacle a unique multi-plant, dual port operation located in one of the richest and most sustainable fibre baskets in the world. In addition, the company leases 500 covered hopper railcars that each contains up to 100 tonnes of wood pellets in bulk form. These are cycling faster now with the availability of additional dumping capacity and additional storage at Westview.” Bassett adds, “Albeit on a far lower scale, the company also ships 15-kg bags of pellets used for residential heating or animal bedding.

This product goes mainly to service the domestic market and sells through a network of retail stores that includes Home Hardware.”

Market security

With European countries increasing their percentage of power generated by renewable energy, the need for secure sources of wood pellets is driving market demand. Typically, contracts are signed for five- to 10-year periods and these are hedged in all sorts of ways due the risk-averse nature of the buyers in Europe. Bassett points out, “The

European power producers are investing large sums of money into converting their coal-fired plants to biomass, so they prefer secure fuel sources such as wood pellets from Canada. With our residual fibre-based approach, sourced from vast Crown-owned lands with the highest percentage of certified forests in the world, we offer a unique product that our foreign competitors are simply unable to match.”

The Port of Prince Rupert and Pinnacle Renewable Energy are adapting to new business practices that include sustainable solutions such as less carbonintensive methods. These include faster moving port facilities and rail networks that facilitate the transport of wood pellets to overseas destinations. As a result, it is these sustainable business practices that help the province of British Columbia remain competitive on the world stage.

Edward Munro is a Communications & Sustainability Consultant with PR Associates, a Vancouver-based public relations and communications firm. He can be reached at emunro@prassociates.com.

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SUSTAINABILITY

Port Metro Vancouver demonstrates leadership in sustainability Duncan Wilson

Vice President, Corporate Social Responsibility, Port Metro Vancouver

I

t goes without saying that shipping plays a significant role in Canada’s economy. Whether it’s transporting goods that Canadians rely on in their daily lives, or exporting the commodities that keep Canada’s economy strong, shipping keeps us moving forward.

But it’s also important to remember that all shipping must occur in a safe, responsible and sustainable manner, with the health and safety of our environment being of paramount importance.

This is something Port Metro Vancouver takes seriously. In fact, it’s written right into our federal mandate. Not only must we facilitate Canadian trade, our duty as stewards of port lands require us to go to great lengths to ensure that the land, air and water in our jurisdiction are protected, maintained and, where possible, enhanced.

Those three elements — land, air and water — are important to us all, and making sure we can protect them for the next generation is our priority. It’s part of our culture.

Port Metro Vancouver was the first port in Canada to create an environmental team. More than two decades later, that team now comprises 15 experts in the areas of biology, air emissions, atmospheric science, chemistry, soil science, geology, sustainability and energy management, and environmental management systems.

Our efforts are all set against the backdrop of what we call the Sustainable Gateway Initiative. Two years ago, we set out to define what a world-class sustainable port in Vancouver would look like, working with First Nations and communities, as well as our customers and tenants to develop the definition together.

At its simplest, our version of a sustainable gateway is economic prosperity

42 BC Shipping News June 2015

>>> At its simplest, our version of a sustainable gateway is economic prosperity through trade, healthy ecosystems and thriving communities. through trade, healthy ecosystems and thriving communities. Our environmental initiatives across land, air and water are some of the supporting elements for what we believe is a sustainable port.

Land

When it comes to land, Port Metro Vancouver engages with local communities, Aboriginal groups, governments and regulators to preserve the environment through our Habitat Enhancement Program.

The Habitat Enhancement Program is an initiative focused on creating and enhancing fish and wildlife habitat. The program is a proactive measure intended to provide balance between a healthy environment and any future development projects that may be required for port operations.

One such project under the Habitat Enhancement Program is the Glenrose Tidal Marsh Project.

The Glenrose Tidal Marsh Project is located in North Delta on the Fraser River.

We undertook this project to improve the overall ecological productivity of this part of the Fraser River and provide high-quality habitat for juvenile salmon rearing and other fish and wildlife. This project was also undertaken in response to requests from local First Nations to protect archaeological values, as some of the sites had been subject to degradation from erosion or illegal collection of artifacts. Working with local First Nations,

we created intertidal freshwater marsh habitat at three locations which involved the use of dredged sediment and the planting of marsh vegetation. We monitor the tidal marsh regularly to ensure the newly created habitat is meeting its objectives.

The Glenrose Tidal Marsh Project is one of several projects within the Habitat Enhancement Program. We’ve also worked hard to enhance habitats at other sites, including the Gladstone Park Tidal Marsh and Salt Marsh Restoration sites in Delta. We’re exploring new projects, such as the McDonald Tidal Marsh Project, which would involve the creation of intertidal marsh habitat on Sea Island, along the Fraser River.

Air

British Columbians are no strangers to the wonders of clean air. From the freshness of an ocean breeze, to crisp, cool mountain air, we’re lucky to live in this region, and Port Metro Vancouver is doing its part to help keep it that way by being an industry leader with several of our air emissions initiatives.

For example, Port Metro Vancouver was the first port in Canada to introduce shore power for cruise ships. This collaborative initiative has thrived since 2009, improving both the competiveness and sustainability of our operations and those of our cruise line partners. Shore power is an important component of our efforts to improve air quality throughout the region, and reduce contributions

SUSTAINABILITY >>> We are proud of the initiatives undertaken by Port Metro Vancouver that not only safely facilitate trade across Canada, but do so in an environmentally responsible manner.

Southern Resident Killer Whales are an iconic species that frequent this region, and we are collaborating with multiple partners to better understand and minimize the potential impacts of shipping activities on whales in the region.

Known as the Enhancing Cetacean Habitat and Observation (ECHO) Program, this was established by Port Metro Vancouver in collaboration with scientists, the shipping industry, conservation and environmental groups, First Nations and governments. Together, our goal is to develop solutions that will address some of the key threats to whales such as acoustic disturbance, physical disturbance, environmental contamination, as well as reduced prey availability.

Our efforts to protect water quality also included work that led to strict regulations around ballast exchange to ensure the safety of the port. By requiring ships to conduct ballast water exchange in mid-ocean, we can limit the possibility of transferring potentially invasive species from a different ecosystem into Canadian waters.

We are proud of the initiatives undertaken by Port Metro Vancouver that

Photo courtesy Port Metro Vancouver

to climate change. By providing cruise ships an option to plug in to the electrical grid, they are able to shut down their diesel engines, while still accessing necessary power when docked at Canada Place.

During the 2013 cruise season, through the use of our shore power facilities, cruise ships reduced their greenhouse gas emissions by more than 3,000 tonnes.

Since its inception in 2009, shore power at Canada Place has reduced GHG emissions by over 11,000 tonnes.

We also work collaboratively with other ports in the region to tackle the issue of emissions from port activities. Developed in 2007, the Northwest Ports Clean Air Strategy is the result of co-operation between Port Metro Vancouver, Port of Seattle and Port of Tacoma, and enjoys the support of both Canadian and U.S. regulatory agencies. The clean air strategy is focused on reducing diesel particulate matter and greenhouse gas emissions across the shared Georgia Basin - Puget Sound airshed. In 2013, we updated the strategy and set a goal to reduce diesel particulate matter emissions by 80 per cent and greenhouse gas emissions by 15 per cent per ton of cargo by 2020, which will enhance air quality and reduce associated climate change, environmental, health, and economic impacts.

With our marine vessel partners, we also promote reduced air emissions through our EcoAction Program and Blue Circle Award, which encourage operational efficiency and the use of alternative fuels and technologies. Port Metro Vancouver provides financial recognition for vessel operators who go beyond requirement to reduce emissions.

Harbour fees for these vessels can be reduced by up to 47 per cent.

Finally, in 2015, we implemented the Non-Road Diesel Emissions Program to help reduce diesel particulate matter emissions from cargo-handling equipment. Port Metro Vancouver tenants and terminal operators pay fees on older, higher emission equipment, with up to 80 per cent of those fees eligible as a rebate when they retire, replace or upgrade that equipment to an acceptable level.

not only safely facilitate trade across Canada, but do so in an environmentally responsible manner. Sustainability is a key component of our mandate, vision, strategic priorities and corporate values.

These efforts have not gone unnoticed.

Port Metro Vancouver has received awards from Sir Richard Branson’s Carbon War Room, Aon Hewitt’s Canadian Green 30 List, Corporate Knights’ Future 40 Responsible Corporate Leaders in Canada, and the Environmental Achievement Award by the Pacific Northwest International Section of the Air & Water Management Association.

Every day, we work to minimize the impacts of port operations and enhance the surrounding environment. By making comprehensive decisions today that will lead to lasting success, Port Metro Vancouver is leading a major change in thinking and acting to deliver sustainable growth.

While a lot of great work has been done, there is still much to do — which is why Port Metro Vancouver will continue to innovate and maintain its environmental stewardship for decades to come.

Water

We know water is the essence of life and our work is two-fold. We are looking out for the marine habitat, as well as water quality.

Marine mammals, for example, are an important part of the ocean habitat. The

The Glenrose Tidal Marsh Project, part of Port Metro Vancouver’s Habitat Enhancement Program.

June 2015 BC Shipping News 43

CARGO LOGISTICS SHORE POWER

A burgeoning market for shore power

By Bill Jackson, P.Eng.

Ship and Shore Power, Marine Sector Leader, Schneider Electric Canada Inc.

A

The environment

Shore power is primarily about environmental and health concerns within neighbouring port communities.

In the past few years, there has been a strong movement towards the regulation of air emissions from ships. Currently, the International Maritime Organization (IMO) requires ships to burn low sulphur diesel (0.1 per cent) when operating within the 200-mile coastal Environmental Control Area surrounding North America. This type of fuel is more expensive but helps to reduce sulphur (SOx) emissions as well as particulate matter. Ships, however, also produce nitrogen oxides (NOx), other greenhouse gases (GHG) and noise. Because of their potential impact on nearby port communities, the removal of these by-products is a worthy objective and a valid reason to shut down engines. Since ships

Photo courtesy Port of Los Angeles

s Canadians, we can be very proud of our track record and support for shore power — the environmental best practice of allowing a ship, when berthed at a port, to shut off its diesel engines and plug into the electricity grid. Shore power, otherwise known as “cold ironing,” “ship to shore connection” or “alternative marine power,” is a solution that was pioneered for container ships about 10 years ago when the Port of Los Angeles began designing a system to safely connect these ships to the grid.

The benefit of doing so was to eliminate all marine air emissions and greenhouse gases.

There are several key drivers for port authorities and ship owners when considering shore power, including the environment, international regulations, energy management and adapting to increasing intercontinental trade flow.

AMPTM trademarked by Port of Los Angeles.

44 BC Shipping News June 2015

can save on energy costs, and ports can eliminate marine air emissions, it’s a winwin scenario.

Port Metro Vancouver proudly tells us that the shore power systems they have in place have eliminated 11,000 tonnes of GHG from the atmosphere since 2009.

This can also be expressed in terms of the number of trees planted to effectively achieve the same offsetting result by considering the sequestered carbon. Using that measure, the result is the astounding equivalent of planting well over a quarter of a million trees according to EPA Clean Energy calculations.

International regulations

In California, there is now a regulatory requirement for ships to shut down engines and plug into shore power. The Canadian Government has supported Canadian ports in constructing shore power infrastructure through Transport Canada’s innovative and successful Shore Power Technology Program (SPTP), which is based on a substantial shared funding model.

In Canada, Prince Rupert Port Authority and Port Metro Vancouver have been leading innovators in the deployment of shore power capabilities. Port Metro Vancouver, for example, demonstrates its commitment to sustainability by encouraging ships to plug into shore power through discounted berthing fees.

Its comprehensive “EcoAction Program” for environmental stewardship is a model for the industry and has been recognized by the Green Marine Organization. Green Marine, an organization founded in Canada, has an environmental program offering a detailed framework which can assist maritime companies first to establish, and then to reduce, their environmental footprint.

SHORE POWER A big step forward has been made this year in Europe as a new “Directive on Deployment of Alternative Fuel Infrastructures” (DAFI) has been adopted as a binding regulation for shore connection.

Under this Directive, it will be mandatory for European ports to implement shore power systems by 2025. European Union co-financing from the trans-European transport network (TEN-T) program for improving transport infrastructure across Europe is assisting ports to build shore power infrastructure.

Energy management

The most energy efficient vessels entering Canada’s two largest West Coast ports are rewarded by Prince Rupert Port Authority and Port Metro Vancouver for minimizing their GHG through energy efficiency as well. These ports were the first ports in the world to encourage energy efficiency through innovative incentive programs. The Kyoto Protocol recognizes that CO2 emissions from international shipping cannot be attributed to any particular national economy due to the global nature and complex operation of the industry. Therefore, the IMO has been strongly pursuing the limitation and reduction of GHG emissions from international shipping through energy management and energy efficient design requirements. Recently, the BC Public Utilities Commission received a broadly supported application for tariffs to encourage ships to take advantage of clean B.C. energy, further demonstration of the support of B.C.’s maritime and energy sectors for shore power.

The IMO has energy efficiency requirements that have a connection of sorts to B.C. as well. There is a requirement for all ships to have a Shipboard Energy Efficiency Management Plan (SEEMP).

Schneider Electric’s Power Solutions group on Vancouver Island has developed meters and software that has been incorporated into a marine class-approved platform for energy management on a ship. This allows ship owners to move from paper-based plans to real-time systems monitoring energy consumption and potentially identifying proactive actions to minimize energy consumption sooner.

Schneider Electric’s ShoreBoxTM Solution.

ships, increases the need for ports located on the West Coast of North America to be shore-connection ready. The same is true on the East Coast given the DAFI directive that establishes the implementation of shore connection in all ports by 2025. Worldwide, containerships are rapidly approaching a state of readiness in terms of being provisioned to utilize shore power. Other vessel types are not far behind or, in the case of cruise ships, are for the most part already there, being among the first to utilize shore power.

Shore power availability is becoming a key competitive advantage for ports and western Canada is well positioned to take advantage of future opportunities for growth.

Bill Jackson, P.Eng., is the Ship and Shore Power, Marine Sector Leader for Schneider Electric Canada Inc. The company has been

a key player over the last 10 years in helping to develop international standards that deliver safe and interoperable operations to global ports and ship owners. Schneider Electric chairs the technical committee of the IEEE/ISO/IEC 80005 Shore Connection standard and has delivered over 45 berths of container ship shore power in North America alone.

Schneider Electric has invested in the development of a “Tested, Validated, Documented Architecture” (TVDA) solution called the ShoreBoxTM that can be quickly deployed. Port infrastructure, including the electrification of rubber tire gantry cranes (eRTG’s) for example, is becoming a significant focus of the marine group of Schneider Electric, a global multinational, with over 160,000 employees worldwide including over 700 in B.C. alone.

Bill can be reached at Bill.Jackson@ schneider-electric.com.

Intercontinental trade

Increasing pressure on Asian ports to provide shore connection facilities, especially in those seaports for container

June 2015 BC Shipping News 45

LEGAL AFFAIRS A fine idea but NIMBY

Places of refuge

By Thomas S. Hawkins

Maritime Partner with the Vancouver firm of Bernard LLP

I

mages of an oil pollution spill with depictions of oiled birds and oilsoaked coastlines resonate loudly in the homes and offices of citizens, politician and government agencies. A ship-source oil spill is messy at the best of times, but when it results from a ship invited to enter a port of refuge, matters can become a lot more complicated.

When a ship is in distress from heavy weather or breakdown, immediate action must often be taken to protect lives, the environment and property. Generally, and historically, the best approach is to permit the vessel to enter a safe port, a place of refuge.

The underlying policy problem, worldwide and in B.C., is the natural human dynamics that lead local ports to act in their own interest, often to the detriment of the greater regional and perhaps international interests. The International Maritime Organization (IMO) defines a place of refuge as “… a place where a ship in need of assistance can take action to enable it to stabilize its condition and reduce the hazards to navigation, and to protect human life and the environment.” The places of refuge problem arises, from a policy perspective, when a ship requests access to a refuge, defined by the IMO as “… what to do when a ship finds itself in serious difficulty or in need of assistance where there is no immediate risk to the safety of life of persons on board.” A natural response is “Not In My Back Yard” (NIMBY). By permitting a vessel to access a port of refuge, the coastal state runs the risk of incurring some environmental damage to the place of refuge. However, the greater risk may be to the entire region if the ship is refused access to refuge, leading to a major catastrophe over a much wider area.

Oil spills have the potential to cause significant harm to the marine environment. Ship-source oil pollution has

46 BC Shipping News June 2015

>>> The underlying policy problem, worldwide and in B.C., is the natural human dynamics that lead local ports to act in their own interest, often to the detriment of the greater regional and perhaps international interests. the potential to effect marine mammals, birds and inter-tidal species with impacts ranging over short- and longterm time scales. Oil discharges into the sea become a highly politically charged event, particularly in the context of the recent British Columbia politics and protests surrounding the Northern Gateway pipeline initiative and the expansion of the Trans Mountain pipeline into Vancouver, all of which will increase tanker traffic significantly off the coast.

The very recent oil spill in English Bay involving a bulk carrier, made it only too clear that the media frenzy and political finger pointing when ship-source oil goes into the sea has reached heightened levels. This is notwithstanding the fact that worldwide medium to large oil spills from ships have dropped dramatically in the last 30 years. On the B.C. coast and in the port of Vancouver, shipsource oil discharges are very infrequent and occur far less often now than even 15 years ago.

There is no question that the prevailing consensus politically, environmentally, and with the person on the street, is that oil spills in B.C. waters must be avoided at all costs. While few would argue against that general statement, it creates a significant problem when dealing with the policy problem of places of refuge. Observing the negative reactions reported in the media in regard to the recent English Bay spill from local politicians, environmental groups and the average citizen, it is not a stretch to suggest that a port that could serve as a place of refuge will probably favour a vessel leaving the area. There may even be a willingness to risk regional pollution to avoid the problems and potential damage

to a local port that could occur if a place of refuge request is granted.

Until relatively recently, there has been a longstanding maritime custom to assist ships in distress by providing a place where ships can seek refuge. However there appears to be a creeping erosion of the long-accepted custom that a request by a vessel for a place of safety is rarely, if ever, refused. Even as the international community has heightened discussions about the problem of places of refuge, the question of the right of a ship in distress to seek refuge and the responsibility of a coastal state to accept such a request, is murkier than ever. A catastrophic example of precisely that scenario involved the Prestige incident in 2002.

The tanker Prestige, with 77,000 tonnes of heavy fuel oil on board, found herself in heavy seas and suffered damage off the coast of Spain. The ship’s request for access to a place of refuge was refused

by Spain and she was towed further offshore where the vessel broke in half and sank causing a massive oil spill. The spill was so large it impacted large portions of the coast of Spain, France and the U.K. The accident investigation report later suggested that access to a port of refuge would have significantly reduced the environmental damage that occurred.

Two recent Canadian incidents highlight the problem occurring worldwide, that is the resistance to permitting a ship to enter a place of refuge. In 2002, the tanker Eastern Power was on route from Newfoundland to Egypt when the hull developed a crack and began leaking crude oil. Refuge in Canada was requested but Transport Canada required that the master confirm that there was no further leaking oil before the vessel would be

LEGAL AFFAIRS permitted to re-enter the Canadian EEZ zone. Subsequently, the vessel was later permitted to enter Canadian waters under the condition that oil from the leaking tank was first transferred to other tanks.

In 2001, the vessel Kitano, carrying 2,000 containers, caught fire in a storm south of Halifax. The ship’s request for refuge in order to fight the fire was initially denied

by Transport Canada on the basis that the ship was unsafe as it was loaded with dangerous goods. Due to heavy weather and high seas, no rescue vessel could be dispatched during the night and the crew was left to fight the fire alone at sea. The vessel was eventually permitted to enter into Halifax later the following day where fire-fighting continued.

At the international level, the IMO realized that the problem of places of refuge was not sufficiently addressed in the international conventions and therefore it developed and issued voluntary guidelines on places of refuge (IMO Guidelines).

The IMO recognized that it had to attempt to deal with the central issue, which is the conflict between a ship’s right to Publication request accessNews to a place of refuge with BC Shipping the coastal state’s desire and right to protect its environment. The IMO Guidelines require vessel masters to assess the risk Issue and2015 make early contact with the coastal June state regarding the hazard and assistance required. Coastal states are asked to develop contingency plans and decisionSize making processes for granting requests Island (half page vertical) and to give shelter “whenever reasonably possible.”

Canadian policy in regard to places Deadline of refuge is now informed by the IMO MayGuidelines 8, 2015and reflected in the introduction in 2007 by Canada of the National Places of Refuge Contingency Features Plan (PORCP). The Canadian position Terminals Environment is to adopt/ as far as possible the IMO Guidelines. The PORCP applies to all Bonus distribution: situations where a vessel may request a place of refuge in Canadian waters Ÿ GreenTech including the Ÿ Council ofterritorial Marinesea and the EEZ. It also applies where a ship is destined Carriers (TBC) for Canada and has reported a problem such as a deficiency, casualty or defect.

The PORCP goes further than the IMO Guidelines by introducing risk management principles and decisions to be based on a risk matrix.

The PORCP is a risk management tool for decision makers written to take into account the likelihood of a spill or a sinking and the severity of any consequences to a port or place of refuge. Concerns have been raised in Canada that applying risk

management principles may not be the best way to deal with urgent decisions regarding requests for a place of refuge.

Recent international incidents such as the fire on the Stolt Valor in March 2012, a case where it took three months before the vessel was towed to Bahrain during which time a full risk assessment was conducted, showed that quick access to a place of refuge may be illusory. In 2013, after 100 days at sea following a collision with a car carrier, the chemical tanker Maritime Maisie was finally provided refuge in Korea, after much political wrangling.

g n i d Lea

The PORCP is a Canadian model of risk management assessment that may have built into it an inflexibility together with time-consuming requirements to consult with authorities and other stakeholder parties before a decision can be made on a refuge request. Where urgent decisions are required when a vessel is in distress, the broad consultation process under PORCP may be a hindrance to efficient decision-making in an emergency.

The PORCP acknowledges that many parties must be consulted but only specifies that responsible authorities must make

n g i s e

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June 2015 BC Shipping News 47

LEGAL AFFAIRS >>> In the U.K., a number of accidents raised concerns when lines of authority were shown to be deficient... every effort to agree on a required course of action. Further, the risk matrix tool is likely to place a minor but highly likely accident scenario into the medium range of the matrix, leading to a real possibility of a refusal to a place of refuge. Therefore the refusal, based on fear of relatively minor pollution damage, could result in a scenario of a much larger risk of environmental damage occurring over a wideranging area.

In the U.K., a number of accidents raised concerns when lines of authority were shown to be deficient and decision-making hampered by delay, indecision and arguments between many parties. The U.K. maritime authorities came up with a new approach by appointing a Secretary of State’s representative who has overall charge of a marine emergency. The SOSREP, as he is known, is in automatic charge of the emergency response to a marine incident and it is the SOSREP’s

48 BC Shipping News June 2015

decision that counts with all the interested parties, including coastal authorities, emergency responders and politicians.

A similar marine casualty model was adopted in Australia. Interestingly, the recent Tanker Safety Expert Panel’s Phase II report recommends that Canada establish a centralized decision-making authority along the lines of those in place in the U.K. and Australia.

Although Canada has rightly implemented a place of refuge policy and contingency plan in the form of the PORCP, the potential inflexibility of the risk matrix assessment process and the requirement for consultation with numerous parties each with their own interests, policies and objectives, can lead to a situation where failure to urgently address a refuge request by a vessel in distress may lead to a much more catastrophic situation. The recent English Bay oil spill resulted in much publicized and public, political and

inter-agency finger pointing, criticism and buck-passing, making it abundantly clear that the PORCP admonition that “every effort must be made for the responsible authorities to agree on a required course of action,” in a place of refuge situation, may well be wishful thinking. Whether the U.K.’s SOSREP-type of single decision maker operating in consultation would improve and expedite decision-making where urgent situations demand it is a legitimate question. Perhaps that discussion will only occur once there has been a significant place of refuge occurrence in Canada, leading to a post-accident assessment, much as what happened in the U.K. Certainly if the recent experience of the oil spill in English Bay is indicative, then one wonders if an agreement by responsible authorities, politicians and environmental stakeholders can be reached in a timely manner under the current system when faced with a distressed vessel seeking urgent access to a place of refuge in Canada.

Tom Hawkins is a maritime lawyer and partner at Bernard LLP and can be reached at hawkins@bernardllp.ca.

MARI-TECH 2015 Mari-Tech raises the issues, provides solutions

T

>>> A special highlight of the conference was the award of the CIMarE Medal of Excellence to Malcolm Barker... retired Vice President and General Manager of Seaspan Victoria Shipyards.

Before presenting Malcolm with the award, Bert Blattman with the CIMarE Vancouver Island Branch gave an account of Malcolm’s career, starting at the age of 16 as an apprentice at Swan Hunter Shipbuilders of England. He moved up through positions of increased responsibilities such as Senior Contracts and Design Engineer, New Construction Superintendent, Warranty Engineer and Production Manager for companies in England, California and Canada. After several years as Manager of Ship Repair at Yarrowsyard and Project Manager at Vancouver Shipyards, Malcolm took on the position of Manager of Victoria Shipyards in 1994 and was made Vice President and General Manager in 2006.

In accepting the award, Malcolm thanked the CIMarE and conference attendees and noted that it was an

exciting time in the industry. “If you’re in the marine industry today and not excited,” he said, “you probably should find something else to do.”

There were many interesting presentations over the next two days. Sessions were balanced between raising and identifying issues and challenges, to those that described solutions and innovations. To follow are a few of the highlights: • Tanker Safety on the Pacific Coast Panel Session — Moderated by Peter Bernard, QC, Maritime Lawyer (Ret.), attendees heard from Captain Stephen Brown (Chamber of Shipping of British Columbia), Karen Wristen (Living Oceans Society), Captain Kevin Obermeyer (Pacific Pilotage Authority), Captain Brian Falconer (Raincoast Conservation Foundation), Rob G. Allan (Robert Allan Ltd.) and Dr. Lance Barrett-Lennard (Vancouver

More photos of Mari-Tech 2015 online at www.bcshippingnews.com/photo

Photos: BC Shipping News

he Canadian Institute of Marine Engineering Vancouver Branch is to be congratulated on developing an interesting and engaging agenda that touched not only on new and innovative technologies but on current issues, including the environment, in which the marine industry is changing. In addition, the strong turn-out of industry professionals, an active exhibit area and an enjoyable evening reception allowed for opportunities to network and discuss some of the issues being raised by speakers Creative Relations Event Planning did a fine job of ensuring all events and sessions were well organized.

Held at the Hyatt Regency Hotel in Vancouver in early April, Mari-Tech 2015 kept the sessions true to their theme — Changing Tides…The Pacific North-West.

Tony Vollmers, Conference Chair and outgoing Chair of CIMarE Vancouver Branch, welcomed guests and spoke of how the presentations to follow would demonstrate a dynamic marine industry on the West Coast and Canada, using examples from the local ship designers as well as some projects from Canadian operators to demonstrate the incredible activity in the Canadian marine industry.

A special highlight of the conference was the award of the CIMarE Medal of Excellence to Malcolm Barker, now

The CIMarE Mari-Tech 2015 organizing committee: Tony Vollmers (Vard Marine), Matthias Teichrieb (Vard Marine), Russel Oye (BCIT), David Rahn (Western Mariner) and Allan Turner (Robert Allan Ltd.).

Malcolm Barker, Vice President and General Manager of Seaspan Victoria Shipyards (now retired) recieves the CIMarE Medal of Excellence from Bert Blattman with the CIMarE Vancouver Island Branch.

June 2015 BC Shipping News 49

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Aquarium). Each succinctly outlined their perspective of the current debate on increased tanker traffic on the B.C. coast.

While opinions differed greatly, all agreed that trust, transparency and truth were important elements to be achieved through discussion and education.

• Shipping Noise and its Potential Impacts on Marine Life — Kathy Heise, Vancouver Aquarium, described research that studied how underwater mammals were affected by noise — specifically threatening their ability to detect food, predators, and family members. Noting that there were a number of steps ship owners and operators could take that would reduce this impact — for example, speed optimization or addressing propeller cavitation — Heise further pointed out that, while currently there are no regulatory thresholds for underwater noise, she believes changes will be coming.

• Preventing the Spill: Tugs for Tankers — Naval Architect Mike Phillips, P.Eng., Robert Allan Ltd., outlined the trends for increasing safety and risk mitigation of tanker traffic.

Focusing on prevention, Phillips described innovations in the design of escort tugs. In addition to looking at variables such as hull form, propulsion and onboard equipment, he described various methods to verify performance, including 3D modelling and simulations.

• The Polar Code: Implications for Designers and Operators — Rob Hindley, Lloyd’s Register Canada, provided a comprehensive overview of the Polar Code that would enter into force on January 1, 2017. Drawing on his extensive experience on projects related to the implementation of new technologies for Arctic ship design, Hindley outlined steps on how designers and operators should assess operational parameters against requirements of the Code to achieve class certification.

• Tier III Technologies for Large Bore Diesel Engines — Les Gingell, MAN Diesel & Turbo, gave a very informative presentation on the various technologies and methods that could be used to meet Tier III requirements. Gingell compared exhaustive gas recirculation (EGR) to selective catalytic reaction (SCR) scrubber technology and advised on considerations like space, installation flexibility, cost and reliability as factors in the decision-making process.

Other highlights included a keynote speech from Mike Corrigan, President, BC Ferries, who spoke to an attentive audience about the many initiatives underway that were making the organization more efficient, safer and accessible. From the new cable ferry to the three new LNG dual fuel ferries to improved staff safety and performance records, Corrigan highlighted the many ways in which the company was addressing issues such as environmental sustainability, maintaining an effective fleet, and ensuring the safety of crew and passengers.

The reception at the Vancouver Aquarium, hosted by Robert Allan Ltd., was most certainly a treat for out-of-town guests who were able to take in one of Vancouver’s most interesting tourist attractions. All who attended were impressed with the casual atmosphere that allowed for browsing through the many exhibits at the aquarium as well as networking with friends and colleagues.

Mari-Tech 2016 is set for St. John’s, Newfoundland. Bob Rutherford with the CIMarE Newfoundland and Labrador planning committee announced that the theme of the conference will be “Harsh Environments” and will explore engineering challenges and solutions for marine operations in harsh ocean environments. The date is set for May 4 to 6, 2016. BCSN

ENVIRONMENT Polar forecasts

Climate journalist shares her concern for Arctic at GreenTech 2015

By Julie Gedeon

I

magine skiing on ice that expands in every direction as far as the eye can see. The only sound is the wailing wind and thunderous cracks and collisions of the frozen landscape as fierce gusts and oceanic currents push and pull the ice sheets around the polar cap. Every stride can bring a new challenge in terms of negotiating icy terrain or donning a wetsuit to hop or swim across fissures.

This is Bernice Notenboom’s element. “The ice is a living organism that requires constant attention and response, as well as thinking ahead,” says the climate journalist who, in 2008, became the first woman to reach the North, South and Cold (Siberia) poles and cross Greenland’s ice cap on skis within a year.

Notenboom will be the keynote speaker at GreenTech 2015 — Green Marine’s annual conference on sustainability in maritime transportation at the Seattle Renaissance Hotel this May 27-29. She will outline her motivations for ending her career with Microsoft in favour of becoming a wilderness explorer and embarking on projects to convey the importance of the polar regions to the planet.

Her adventures began as a personal quest to test her selfreliance. For years, she ran an outfitting enterprise in Colorado that won various environmental best practice awards for being among the first such companies to integrate Navajo and Hopi culture into rafting and other expeditions.

“We offered a spiritual component through sweat lodges, vision quests and visits to cherished places that gave native people a real voice about their environment in the process,” she says. The expeditions were so popular among German and Swiss tourists and then others that she ended up primarily behind a desk to organize and supervise everything. “The very thing I love most — being outdoors with nature and native people — became almost impossible,” she says. “It was also a lot of stress, so I decided to sell the company.”

with their story of the ice, and subsequently visited Antarctica, Siberia, Greenland and the North Pole again to write the book Poles Apart regarding the impacts of climate change on polar environments. “I tried to convey what these areas are like to people who consider them use- Bernice Notenboom less,” she says.

“Polar ice and permafrost have a vital role in keeping our planet cool.”

Now halfway through a five-year mission to document polar ice fragility in a film called Arctic March, she and her team have visited Russia, Norway, Iceland and Greenland, and will revisit Alaska and the Canada’s North this summer.

“We are choosing stories — good and bad — that indicate the preparedness, actions to date, and intentions of the nations bordering the North Pole,” she says. “The film will be our attempt to communicate what people are really about to lose if we don’t take environmental action and why and how it matters.”

Life-changing journey

In 2007, she and a photographer were assigned by National Geographic magazine to do a story about weekend adventuring.

“We left on Friday to ski the North Pole and were supposed to be back in our offices on Monday,” she recalls. “But that year was a tipping point in terms of climate change and we became caught in the turmoil of the ice breaking up everywhere, including our landing strip, and our transport couldn’t get us for days.”

Notenboom made the best of the situation by interviewing the disgruntled scientists who had to cancel their research trip because of the dire ice conditions. She became fascinated

June 2015 BC Shipping News 51

ENVIRONMENT

Photo credit: Martin Hartley

Notenboom is documenting changes to the Arctic and the importance of “doing things right” when it comes shipping in the area.

Varied approaches

Photo credit: Martin Hartley

With approximately half of its coastline in the Arctic, Russia boasts the longest polar experience. “The Arctic is part of Russian culture,” Notenboom relates. “Russians are proud of their nuclear shipping program, noting they don’t have spills and one icebreaker can go 15 years without having its rods changed.”

Norwegians seem the most in tune with the environment, taking great care with their shipping and offshore oil and gas operations. “Interestingly, Norway and Russia have collaborated the most up to this point when it comes to the Arctic region,” Notenboom adds. Finland manufactures the world’s largest icebreakers.

“We also filmed in Rotterdam where a huge LNG terminal has just been built,” she notes. “LNG is being used not only for transportation but to heat homes in the Netherlands to reduce the dependency on Russian oil.”

Bernice Notenboom, keynote speaker at GreenTech 2015, was the first woman to reach the North, South and Cold (Siberia) poles and cross Greenland’s ice cap on skis within a year.

52 BC Shipping News June 2015

By comparison, Canada has limited experience in the Arctic and the United States shows minimal interest, she says. With shipping and energy/ mineral exploration still limited, she adds there’s still an opportunity “to do things right” by using cleaner ship fuels and taking every precaution to prevent spills.

Her recent trip to Greenland explored the impact of black carbon on ice and Greenlanders’ health. “We already know that black carbon derives from traditional shipping and travels in the atmosphere for hundreds of kilometres in any direction and then falls with rain or snow,” she says. “And black carbon has the dual impact of both thinning existing ice so it melts faster and providing less of a reflective surface for solar rays to bounce back into space, which helps to limit global warming.”

Notenboom aims to show the film leading up to the next climate change talks in Paris in late November and a subsequent gathering of the International Maritime Organization (IMO) when the Polar Code is scheduled to be on the agenda.

Having also climbed Mount Everest in 2008, Notenboom considers polar environments a bigger challenge. “If you’re acclimatized, it only takes three weeks to climb Everest and you have Sherpas to carry supplies and set up tents,” she explains. “In the Arctic or Antarctic, it’s just you to do everything and it can take hours to set up your tent to ensure it doesn’t blow away.”

Being the first woman to trek across polar expanses is significant to Notenboom as not only a personal achievement but to signal a new era of exploration that doesn’t involve conquest and exploitation. “I love the world’s ice and hope I can show others why our polar regions are so vital to preserve as our planet’s air conditioning,” she says.

INTERFERRY CONFERENCE 40th ANNUAL OCTOBER 3 -7, 2015

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MEDIA June 2015 BC Shipping News 53

Photo: Dave Roels

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Securing a bright future Westshore Terminals – North

America’s busiest coal export terminal – is amid a five-year, $270 million project to make it even better. As we work to secure a bright future over the next few years we will: a new office, workshop • Build and employee complex three of our four • Replace stacker-reclaimers which either stockpile or reclaim coal on our site our largest shiploader • Replace at Berth 1 additional dust • Install suppression systems For our customers it will mean they can plan for the future with confidence. We will have new equipment and increased coal stockpile capacity without increasing our site footprint. Every tonne of coal from train to vessel will be handled more efficiently and with improved environmental safeguards.

The changes will not come without challenges as we are a busy terminal. However, the results will prove worthwhile for Westshore and its unitholders; to our customers; and to Canada in increasing coal export revenues, and productive jobs.

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We’re taking time to do it right June 2015 BC Shipping News 55

THE PORT OF PRINCE RUPERT

Growing fast. Going strong.

Prince Rupert is connecting Canada’s industries and communities to fast-growing Asian economies. As a North American leader in security, marine safety and environmental sustainability, we’re proud to uphold the highest standards while moving the world’s goods and resources through British Columbia’s northern trade corridor.

@rupertport | www.rupertport.com