BC Shipping News - June 2018 by McIvor Communications

Underwater Noise: Ship design with a porpoise in mind!

Biofouling: Industry deals with invasive aquatic species

Legal Affairs: Practical federalism: A cynical strategy

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

Volume 8 Issue 5

NEWS

www.bcshippingnews.com

June 2018

Industry Insight Angie Kalhar, KTL Transport & Euro Asia Transload

B.C. Terminal Activity Facing up to competitve challenges

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BC SHIPPING NEWS

BC SHIPPING

CONTENTS June 2018 Volume 8 Issue 5

NEWS

Cover Story 43 ENVIRONMENT

Washington State partners with DNV GL to deliver on Washington Maritime Blue strategy

EDITOR’S NOTE

IN BRIEF

INDUSTRY INSIGHT

By Jane McIvor

20 TERMINALS

B.C. marine terminals Facing up to competitive challenges By Captain Stephen Brown

Industry traffic and news briefs Defining the keys to success Angie Kalhar, KTL Transport Inc./Euro Asia Transload The Kalhar family has successfully taken one driver and a truck and turned it into one of the largest transload and trucking companies in Canada.

HISTORY LESSON

Mayday! Marine traffic management in B.C. By Lea Edgar

LNG TERMINALS

B.C.’s LNG dream still a reality

44 EVENTS

Mari-Tech 2018 Strong attendance and relevant speakers make for a highly successful conference

46 TECHNOLOGY

Milestone reached for Carlisle & Finch

33 BIOFOULING

The maritime industry deals with invasive aquatic species By Darryl Anderson and Georges LaRoche

UNDERWATER NOISE

LEGAL AFFAIRS

Ship design with a porpoise in mind! By Liz McCrary and Donald MacPherson

Mercy Ships Cargo Days Hospital ship lightens the load for those in need of medical care By Tim Maloney

49 FERRIES

Interferry conference to feature three key issues in record attendance bid

BALLAST WATER

USCG limits extensions for ballast water systems

MERCY SHIPS

MARITIME SECURITY A Canadian imperative

Update on interprovincial transport of oil Practical federalism: A cynical strategy By Russell Robertson

On the cover: The YM Maturity at Fairview Terminal, Prince Rupert (photo: Lonnie Wishart — www.lonniewishart.com); above: terminals on the North Shore of Vancouver (photo: BC Shipping News); right: the Africa Mercy (photo courtesy Mercy Ships Canada); left: Angie Kalhar (photo: BC Shipping News)

June 2018 — BC Shipping News — 5

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EDITOR’S NOTE

Photo: Dave Roels

Ever the optimist

n addition to our annual B.C. terminal activity update this month, we take a closer look at the remaining LNG projects still alive (or in the case of some, not quite dead yet). In 2012, when the B.C. government released its LNG strategy, they predicted there would be three LNG terminals in operation by 2020. Clearly, that’s not going to happen. However, we could potentially see three (FortisBC, Woodfibre and LNG Canada) by the mid-2020s. That the prediction was only five years off isn’t actually that bad. Global markets have played a role in delays as have lengthy government approval processes, changes in governments at both the provincial and federal levels and pursuit of the holy grail that is social licence.

But I’m optimistic (as is our update). While B.C. may have started out with 20 proposals — now down to 15 (and definitely to go much lower) — I still believe B.C. will have a vibrant LNG industry. The only question is the timing. B.C. has a 200-year supply of natural gas. With the U.S. now a net exporter, I can’t believe that the current (or future governments for that matter) will give up the opportunity to create thousands of jobs and billions in revenue. Indeed, even with the threat of losing the balance of power that comes from the support of the Green Party, Premier Horgan has already issued incentives for LNG Canada and other proponents. In terms of a strategy, Premier Horgan is likely right to suspect that, even if Andrew Weaver

tries to bring down the government over this issue, the Liberal party in opposition will not. Given B.C.’s abundance of natural gas and forecasts of global demand outstripping supply by the mid-2020s, I don’t think there’s any question that this industry will be developed. Consider Australia’s LNG industry. They discovered their reserves of natural gas in the 1970s; had their first LNG project in the late 1980s (and now have eight operational with at least two more planned). B.C. only developed its LNG strategy in 2012. We still have a long way to go before we should be counting Canada out as an LNG exporter. After all, what could go wrong? — Jane McIvor

June 2018 — BC Shipping News — 7

INDUSTRY TRAFFIC

Amendments to Port Information Guide formalize safety best practices in Fraser River

he Vancouver Fraser Port Authority has made amendments to the procedures outlined in its Port Information Guide to introduce the term Traffic Control Zone (TCZ) to replace Movement Restriction Area (MRA) and formalize existing best practices for traffic control and safety in the Fraser River. “As a port authority, we are responsible for ensuring the safety of the waterways in port jurisdiction. These amendments more clearly articulate existing best practices and procedures to help keep recreational and commercial vessels alike safe on the water,” said Egge Kloosterboer, manager of marine operations and deputy harbour master at the Vancouver Fraser Port Authority. “The changes are intended to highlight critical safety information on where the deep-sea transit route is and the potential hazards and risks of collision

that are unique to river waters and narrow channels.” Members of the public were invited to submit feedback during a 30-day comment period between February 13 and March 14, 2018. Following the public comment period, the port authority reviewed and considered all comments. As a result of public feedback, the originally proposed amendments were changed to add clarity around the boundaries of the Fraser River Traffic Control Zone (known as TCZ-4) and how these boundaries impact recreational boaters on the Fraser River. The final amendments reflect the port authority’s mandate to ensure safety and its commitment to promoting awareness about safe and efficient navigation on the water for all vessel operators. For more information, visit: www. portvancouver.com.

Rolf Habben Jansen confirmed as Hapag-Lloyd CEO until March 2024

he supervisory board of HapagLloyd AG has unanimously approved to extend the contract of Chief Executive Officer Rolf Habben Jansen for a further five years until March 31, 2024. “With Rolf Habben Jansen at the head, Hapag-Lloyd has further improved its position as a leading global liner shipping company in a challenging market environment and as an active driver of industry consolidation. The extension of his contract ensures continuity in the corporate management. We have thereby created the best conditions for the continuation of the successful course of Hapag-Lloyd. I am very much looking forward to our further cooperation,” said Michael Behrendt, chairman of the supervisory board of Hapag-Lloyd AG.

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NEWS BRIEFS

Peak Challenge 2018 set for June 25

he International Sailors Society Canada (ISSC) is holding this year’s industry Peak Challenge on the Day of the Seafarer, Monday, June 25, on the Grouse Grind in North Vancouver starting at 1600 hours. The IMO has chosen to address issues of seafarers’ wellbeing and, in particular, mental health for this year’s Day of the Seafarer and there’s no better way to show support than a bit of excercise for a good cause. Companies are encouraged to put together a team of three to compete in this second annual event of the ISSC. Show your support for this year’s Day of the Seafarer which aims to draw attention to the well-being of seafarers and the need for a positive and healthy work environment. (On June 25, tweet your team pics to #SupportSeafarersWellbeing and #GoodDayatSea.) The ISSC provides annual grants to seafarer centres across Canada and teams and individual climbers are encouraged

For a great cause — last year’s event sold out quickly so register right away to avoid disappointment. to help by collecting pledges in support of the challenge. Tax receipts will be provided for all donations over $25. Participation is limited so register early to avoid disappointment. If you don’t have

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NEWS BRIEFS

Minister Garneau launches roundtable series for Ports Modernization Review

n early May, the Honourable Marc Garneau, Minister of Transport, chaired a first roundtable in Ottawa with Canada Port Authorities to discuss the port authority system and what Transport Canada can do to ensure this country is well positioned to innovate and compete for years to come. In the coming weeks, Transport Canada will host a series of roundtables and meetings with Indigenous peoples, provincial governments, municipalities, broader domestic and international marine stakeholders, and Canadians. The roundtables

are the next step in a review of Canada Port Authorities that was announced in March, The review will optimize their role in the transportation system as strategic assets that support inclusive and sustainable growth and trade. The current port system has served Canada well in supporting regional economic development and international commerce. However, a lot has changed since Canada Port Authorities were established 20 years ago. This change is expected to continue at an ever-increasing pace.

Transport Canada wants to hear what Canadians and marine stakeholders have to say about how our ports can turn current and future challenges into opportunities. The public is invited to provide input on the review. Information is available on the letstalktransportation.ca/ports-modernization-review website. The findings of the review are expected in 2019 and will identify potential policy, legislative and regulatory changes to help Canada Port Authorities remain a critical part of the Canadian economy. “Ports are a critical part of Canada’s transportation network and trade corridors. They need to remain innovative and competitive in today’s dynamic environment. Collaboration with marine stakeholders and Canadians will help shape the future of Canada’s port system, so that it continues to support sustainable and inclusive growth,” said Minister Garneau.

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NEWS BRIEFS

Lloyd’s Register Foundation releases review on design for safety

he Lloyd’s Register Foundation, a charity helping to protect the safety of life and property by supporting education, research and public engagement, has announced the next in its series of Foresight reviews. This Foresight Review explores how a culture of design for safety can enhance the safety of the world around us. Design for safety goes beyond legislation, regulation and standards, which all play an important role for established products and services, but their limited scope often leads to missed opportunities to enhance safety by taking a broader perspective. A design for safety culture takes a holistic approach to understanding the influences that affect safety. Such influences are varied and take into account the broader environment within which design operates including complex interactions, behaviour and culture. It goes beyond traditional design methods and focuses on the goal of a safer design. Led by principal investigator, and Dean of the Royal College of Art (RCA) School of Design, Professor Paul Anderson, co-chairs Professor Rachel Cooper and Chris Ross, and co-investigators Professor Ashley Hall and Dr Laura Ferrarello, a panel of international experts representing industry, academia, government, regulators and representative bodies were identified to explore the topic of design for safety. The panel assembled in London in February 2018 for a two-day symposium, followed by a more focused event in March 2018. The review’s findings highlight the importance of multidisciplinary teams working together to understand a broader range of safety risks than traditionally considered; an example of which includes design that takes into account how people both affect, and are affected by, design.

An important finding is that the introduction of new technology and emerging industries bring with them risks that are not well understood. A design for safety culture is needed to make sure that these risks are controlled before they are able to cause harm. The review makes a set of recommendations to bridge the design for safety gap between products, services and infrastructure and safer design. The recommendations are: • Identify future design for safety challenges: There is a need to establish a design for safety research observatory capability that identifies emerging major safety issues and investigates whether new design for safety methods are required. • Develop future design for safety methods and skills: There is a need to establish a capability that has expertise in design for safety methods including research and experimental design activity, graduate and postgraduate educational programs and engagement with the wider international community to learn and share experiences and best practice. • Establish a network of global excellence: To maximize the impact of these two recommendations, an international network of centres of excellence should be established. Copies of the Design for Safety foresight review can be downloaded from www.lrfoundation.org.uk/publications/.

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June 2018 — BC Shipping News — 11

INDUSTRY INSIGHT

Defining the keys to success Angie Kalhar KTL Transport / Euro Asia Transload Photo: BC Shipping News

he first thing that one notices when walking into the main office of Euro Asia Transload and KTL Transport is the many plaques and certificates that hang on the walls recognizing contributions and support for a range of initiatives, mostly focused on education and health for children. “Giving back to the community has always been important for us,” said Angie Kalhar, President of KTL Transport, who, along with her Father, CEO Tanjit Kalhar of Euro Asia Transload, demonstrate how success is a formula consisting of hard work, right place/right time, smarts and a healthy dose of a good attitude. Over the course of BC Shipping News’ interview with Angie, it becomes evident that the Kalhar family has found the perfect balance of these keys to success. BCSN: Let’s start with some background on you, your family and the business. AK: KTL started in 1988, a few years after my Father immigrated to Canada from Punjab, India. Dad drove truck; Mom was the dispatcher; and I did some paperwork (I was about nine years old). We started the business at our kitchen table — it’s still a family joke that Mom didn’t see the top of her dining table for years given all of the paperwork stacked on it. 12 — BC Shipping News — June 2018

I grew up in the industry and have always had an interest in it. On days off from school, I would ride in the truck with my Dad and help with deliveries. I grew up in the industry and have always had an interest in it. On days off from school, I would ride in the truck with my Dad and help with deliveries. On weekends, we would go to flea markets to sell products that my Dad bought in bulk from importers. Today, KTL has 215 trucks, 1,000 container chassis and moves over 100,000 containers annually (within the Port of Vancouver). Between the drivers, office staff, mechanics and forklift operators, we have a team of 350. My Dad started Euro Asia in 1995. He saw an opportunity through his trucking work with Eaton’s to get involved on the warehousing side and Euro Asia was borne out of that. At the time, we didn’t have drayage trucks — we started off with five-ton trucks doing P&D (pick-up and delivery service). Euro Asia started with 25,000 square feet of warehousing, and in 1996 we expanded to 80,000 square feet on 13 acres served by CN rail. In 2004, we made the leap to 290,000 square feet in Burnaby.

In 2008, we completed the first phase of our facility in Richmond which added 230,000 square feet and, in 2013, we added another 265,000 square feet and additional rail capacity to the Richmond location and closed the facility in Burnaby. In 2014, we completed the final phase of our Richmond facility adding another 150,000 square feet. Today, we have 100 acres of land which includes a warehouse footprint of 650,000 square feet in Richmond as well as two container yards in Queensborough. We have further expansion plans for a 300,000-square-foot facility on Tsawwassen First Nation land on 23.5 acres situated four kilometres from Deltaport (we will share a fence with the new facility being built for the Canadian Border Service Agency). We should be operational by the first quarter of 2019 and have a 60-year lease with the Tsawwassen First Nation. BCSN: What are the main commodities you handle and, further to that, could you describe some of the logistics involved?

AK: We specialize in pulp, OSB and metal products. The majority of these products arrive to us by rail and the remainder by truck. The logistics are simple movements, but getting the container for export onto the vessel involves solid communication and coordination between all parties (rail, warehouse, truck, shipping line, container terminal) as there can be many variables. BCSN: What have you seen in terms of trends for the commodities you handle? AK: We’ve been handling forest products since 1997. If you look at port statistics back then, you will see the upward trend of forest products being containerized. My Father was a pioneer in starting that trend since we had the rail and the infrastructure to accommodate it. Since then, forest products have remained very steady. In addition to that, some of the mills that we work with have been able to increase their production. As an example of trends, I think the whole industry felt that 2016 was a tough year but it was followed by a strong 2017. All in all, although the markets vary from time to time for all kinds of products, the

Photo: BC Shipping News

Angie and her Dad, Tanjit, stand in front of a replica of a truck in her Grandfather’s fleet in India, the first generation of the Kalhar family to be in the trucking industry. overall market conditions are favourable to our B.C. shipping industry. BCSN: Has the technology behind transloading changed very much over the years? AK: For our industry, like many others, technology is at the heart of our success and our capacity to adapt to the changes that are taking place in shipping. We

are continuously looking for new technologies to improve the efficiency of our activities. For example, we are upgrading systems to automate, providing real time information and visibility to our customers and keeping up with technology trends and customer requirements. As another example, we are considered on the export side as the ‘last mile’ before

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INDUSTRY INSIGHT

Teamwork...Kalhar believes strongly that one of the keys to success is staff, many of whom have been with the company since Day One. the product leaves Canada and because of that, we’re the link between CN, the shipping lines, and the container terminals so there is a lot of information exchanged and visibility required. This is why we put a

lot of emphasis on our infrastructure and capacity to meet our customers’ needs. BCSN: Could we look at the trucking side of the business now and some of the issues related to terminal access?

AK: Like any other process, the fluidity of movements in the trucking business is key to our competitivity and viability as well as those of B.C. shipping stakeholders. There have been changes over

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INDUSTRY INSIGHT the last four or five years, starting with the establishment of the Office of the B.C. Container Trucking Commissioner. The government’s objective was to build in more stability by requiring companies to apply regulated rates for truck drivers and implementing a truck tag system. The Commissioner’s office has been conducting audits and they are posting results on-line so we have seen movement in the right direction. That said, it is important to continue to follow the situation closely with a view to continue to improve the system while ensuring labour stability. The government recently announced that the Commissioner will be given more capacity to enforce and investigate existing regulations with more auditors and, effective June 1, 2018, trip rates and hourly wages will be raised 2.6 per cent for licensed container truck drivers serving the Port of Vancouver. They are also raising the minimum daily call-out rate from $200 to $300 and taking a closer look at the overall rate structure. We will see with time the results of these measures. The truckers now have an outlet and somewhere to express their concerns. Driving a truck can be a tough job and being able to have an open conversation and hear those concerns is important in ensuring a vibrant industry. BCSN: What about the Tag Management Policy? AK: Again, we have to look at the overall situation as a continuous improvement process. Time will tell the impact of the tag system that was put in place but in any event, we must remain open-minded and creative in the approach. The port has to remain competitive and there is a fragile balance in trying to do that. We’re in competition in terms of costs and fluidity not only with Prince Rupert but also with U.S. West Coast ports and this should be kept in mind at all times. BCSN: How do you manage issues like congestion and wait times? AK: This is something that is being managed daily by key stakeholders. The important thing is that a lot of efforts are put out by all to reduce the congestion and minimize the waiting times. It is for the benefit of everyone. For instance, Global Container Terminals just announced a pilot program to normalize

Time will tell the impact of the tag system that was put in place but in any event, we must remain open-minded and creative in the approach. long-haul truckers. Essentially, the new federal regulation requires all truckers and commercial bus drivers to have ELDs in place by 2020. At present, trucks that travel within a 160-kilometre radius will be exempt from ELDs, but we will still be making the transition over. There are some concerns it will reduce capacity as has been seen in the U.S. which implemented the system in December 2017. There are some reports that show it has taken out about 20 per cent of the trucking capacity in the U.S. Consequently, this forthcoming new regulation needs to be monitored very closely. BCSN: In terms of safety, are there other initiatives you take to keep the truckers safe? AK: Absolutely. For us, safety is non-negotiable. We have full-time staff dedicated to safety, including the maintenance of our trucks and on-site red seal

their reservation fee. Previously, there was a daytime fee of $50 and nighttime was free and it created at times an imbalance resulting in drivers waiting two or three hours between reservation windows. The fee will now be $35 all the time, and is expected to increase capacity and asset utilization. It is expected to allow for more double-ended transactions (i.e., bring an export in and take an import or empty container out) which would be a huge benefit to the truckers and the terminal. It will mean fewer truck trips and less traffic. Once again, what is important is that all stakeholders keep a close eye on the results of these changes simply because any improvement benefits the whole B.C. shipping industry. BCSN: Are there any other regulations coming up that will impact on operations? AK: Electronic logging devices (ELDs) will most likely have an impact on

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INDUSTRY INSIGHT

Euro Asia completed its south Richmond location in 2014, expanding their overall footprint to 100 acres when combined with their two container yards in Queensborough. mechanics as well as an on-site tire shop and the ability to switch out chassis if needed. We provide on-going training and hire drivers who have a solid safety record and proven experience. We hold our drivers accountable to the same criteria that Commercial Vehicle Safety and Enforcement does. In addition, we are in the process of obtaining our COR certification through SafetyDriven. BCSN: Earlier, we discussed congestion and I want to jump back to that and ask about environmental initiatives you undertake. AK: We’re always looking for ways to minimize our impact on the environment. For example, in 2008, we converted our forklifts over to natural gas (CNG), and have two natural gas pumping stations onsite. We have also just purchased 15 electric forklifts that will arrive in September. In addition to that, we have yard trucks that run on natural gas and we are also running a pilot project on three trucks that have been converted to run on natural gas and diesel. We are expecting to reduce fuel consumption and emissions by 25 per cent (every litre of diesel burned produces 2.6 kilograms of carbon dioxide). Another environmental initiative we have been practising for over 10 years is having the empty containers staged at our loading facility which eliminates a truck trip.

Lastly, when our new facility on the Tsawwassen First Nation lands is complete, we will be four kilometres from Deltaport which will help greatly to reduce truck transit times and our impact on the environment. BCSN: I want to look now at emerging trends and issues, starting with the availability of industrial lands. AK: I believe that issue is going to require some creativity to find solutions. While the needs of industry need to be taken into account, there must be a balance with and consciousness of the

About Euro Asia Transload and KTL Transport

uro Asia Transload is Canada’s largest container transload facility privately held and family operated. With a footprint of 650,000 square feet and an additional 300,000 square feet coming online in Q1 2019, Euro Asia is strategically located within the Port of Vancouver with a rail receiving capacity of 85 cars on CN siding. KTL Transport, established in 1988, currently has 215 trucks with 1,000 container chassis which move over 100,000 containers annually.

For more information about Euro Asia or KTL Transport: www.euroasiainc.com. 16 — BC Shipping News — June 2018

INDUSTRY INSIGHT urban communities and farms that surround the port lands. There needs to be communication, consultation and discussion with all stakeholders to find solutions that work for everyone. Transportation is the back bone of the economy. Without ports, trucks and port infrastructure, consumers will very quickly feel the impact from a lack of products available. As long as there are ports and ships, the transload function will be needed as well as

About Angie Kalhar

ngie Kalhar started to be exposed at the age of nine to the trucking and transloading industry when the KTL Transport family business was being run from the family kitchen. After obtaining her Bachelor’s degree from Ryerson University, she received her Certificate in Business Management from George Brown College in Ontario. Angie was promoted in 2009 to President, KTL Transport Inc. however also plays a role within Euro Asia Transload where her Father, Tanjit Kalhar, is the CEO.

land close to the port. We must work together in the best interests of all concerned. Another trend that will continue to have an impact is the size of the ships coming in. Bigger ships mean more volume so we need the infrastructure and capacity to manage that. We must be proactive, ahead of the competition and find means to maintain the B.C. shipping market share and, of course, increase it. BCSN: What about the future for Euro Asia and KTL? Have you considered expansion into other regions? AK: We have but at present, we’re focused on the Lower Mainland and getting our Tsawwassen facility operational. We’re very much looking forward to working with the Tsawwassen First Nation and have had ongoing discussions with the community about training programs and the different jobs and opportunities that will be available. We are committed to providing opportunities to the local community. BCSN: Last question: there are a lot of plaques and certificates on the wall outside — I’d like to ask about the source of motivation to be so involved. AK: We strongly believe in teamwork and our employees are important to us. Some have been with us since Day One and they are key to our success. Giving back to the community is very important to us. My Father built a school in a very poor, rural part of India in the 1970s and today, it has over 600 children attending it. It’s something that we’ve always believed — to be a true part of the community you need to give something back. BCSN

Seaforth Environmental

HISTORY LESSON Mayday! Photo: Dave Roels

Marine traffic management in B.C. By Lea Edgar Librarian & Archivist, Vancouver Maritime Museum

efore there was radio or radar to assist vessels travelling into British Columbia’s harbours, seafarers were on their own to navigate safe passage. Marine traffic management was eventually put into the hands of the Canadian Coast Guard (CCG) which created the Marine Traffic Control Centres along the coast. Today, only two such centres remain: Victoria and Prince Rupert. But traffic management on the Pacific Coast of Canada has a long history. As technology evolved, so too did the system, until it shrunk to the current arrangement we see today. After Marconi sent the first wireless Trans-Atlantic transmission, the importance of radio communication for marine traffic became paramount. Before this time, there was no way to coordinate marine traffic. In 1904, the Canadian government signed a contract with the Marconi Company to establish a network of wireless stations starting on the East Coast. It wasn’t until 1906 that stations on the West Coast opened, creating the West Coast Radio Service. The locations included Point Grey, Gonzales Hill, Pachena Point, Estevan Point, Triangle Island, Ikeda Head, Digby Island and Cape Lazo. When Canada entered the First World War, the wireless stations and their employees became part of the military. After the Second World War, with an increasing number of radio stations, regional management was required. So, the Department of Transportation took over the military stations. By 1950, the Marine Services division consolidated all maritime business under their department. In the 1960s, a new method of management for marine traffic was created and traffic centres started to be built first on the East Coast. In 1972, control of marine traffic was moved to the CCG. On the West Coast, only the individual wireless stations helped with marine traffic. No single unit managed the traffic going in and out of Vancouver harbour. 18 — BC Shipping News — June 2018

After Marconi sent the first wireless Trans-Atlantic transmission, the importance of radio communication for marine traffic became paramount. In January 1974, the West Coast’s marine traffic centres came into service. Named the Canadian Coast Guard Vessel Traffic Management System Western Region, the centres were designed to establish traffic routes, two-way communication with commercial vessels, radar surveillance of the heaviest trafficked areas, as well as management of traffic throughout the area. The province was split into three zones: Tofino, Prince Rupert, and Vancouver. At first, there were three centres, one of which was not even in Canada. The Seattle station helped with the management of the Vancouver region. They were all linked by teletype circuits but regulators also had a direct voice hotline to the other centres. At this early phase of traffic management, radar was not yet used north of Nanaimo. Regulators used only radio and the route stripping method, similar to air traffic control. The traffic centres worked with harbour masters to ensure a safe journey of the vessel. The Victoria region on Vancouver Island originally had a number of radio stations. This included the Victoria VSD/VAK station, located on Gonzales Hill, which opened in January 1908. E.J. Haughton was appointed as the first radio operator. It was still in operation in 2014 as a Marine Traffic Control Station at Patricia Bay but was eventually absorbed into the Comox Centre. The Comox station opened in 1921 to replace the Triangle Island station. In 1994, the Alert Bay Coast Guard radio closed and Comox’s area of responsibility doubled. It included all of Johnstone Strait, Queen Charlotte Strait and southern Queen Charlotte Sound. In 1962, a new station was constructed in the Civil Air Terminal building at the airport and operations were carried out from there until 1993. A new

facility was built at Cape Lazo in 1993 and Comox became a fully integrated Marine Traffic Control Centre (MCTS) in 1996. Comox sent out its final message on May 10, 2016, before its responsibilities were taken over by the Victoria Centre. Another notable station on Vancouver Island was the Tofino Centre. It opened on January 2, 1978, at Amphitrite Point near Ucluelet. When the need was identified for an integrated vessel traffic management system in 1974, it was known that the system must cover all the inside waters of Vancouver Island from Carmanah Point in the Juan de Fuca Strait, up to Cape Scott at the northern end of the Island. In 1977, the construction of the Tofino Centre began. The first regulators were trained in Vancouver and the course lasted about nine months. The Centre received radar in July 1978. With all the new systems in place, the Tofino Coast Guard Radio Station was relocated to the new VTS Centre in April 1980. Strangely enough, although both systems were located at the Tofino Centre, the Vessel Traffic Services and the Coast Guard Radio Station worked as two independent operations until the amalgamation into MCTS began in 1996. The Tofino Centre eventually closed in 2015 and was absorbed into the surviving Victoria Centre. The Vancouver traffic centre was located at the Capilano 100 building in West Vancouver. A closed-circuit camera was mounted under the Lions Gate Bridge along with radar. Prior to this, there were two radio stations in Vancouver. Point Grey (PGD – VAI after 1915) station opened in 1907. The station closed sometime in the early 1990s when amalgamations were happening across the system. The second station was VAB which was previously the call sign of Ikeda Head

but was re-assigned when the station was established in downtown Vancouver in 1923 at 815 West Hastings Street. Leonard James was the first operator. The station was not entirely necessary as the services provided could have been handled by Point Grey. However, shipping agents and tow boat owners wanted a station to contact their vessels in Vancouver Harbour. The National Research Council installed radar on the Lion’s Gate Bridge in the late 1940s. The station was later moved to the Marine Building and eventually closed during the Second World War. During the consolidation that occurred in the 1990s, it was moved to the Sears Tower, Harbour Centre in downtown Vancouver. This decision was made to monitor the harbour more effectively because there are many blind sections with radar for that area. The Vancouver Centre closed in 2015 with its operations taken over by the Victoria Centre. One of the last centres to open was Prince Rupert. It opened on January 1, 1984. Before the MCTS centre, there was a radio station built in 1910 on Digby Island. The station remained there until

Photo: BC Shipping News

Today’s MCTS staff from the Victoria Centre recently toured the Fraser River with the Canadian Lifeboat Institution to get a first-hand look at traffic on the Fraser River. 1967 when it was co–located with the airport’s aeradio station. In 1981, they were both moved to Seal Cove, creating what is the current location for the MCTS. Between 2011 and 2016, the CCG underwent a consolidation and modernization project. The result was that 22 existing MCTS centres were consolidated into 12 centres across the country. This decision was met with backlash as questions about safety arose but with advanced systems in radar, GPS and the Automated Identification System, a visual sightline of vessels was no longer needed. By the

spring of 2016, only the Victoria and Prince Rupert Centres remained to monitor all of B.C.’s marine traffic. Prince Rupert absorbed the Tofino Centre while Victoria absorbed Vancouver and Comox, effectively turning the three zones into two. As modern technology continues to evolve, it will be interesting to see how marine traffic management will evolve along with it. Lea Edgar started her position as Librarian and Archivist for the Vancouver Maritime Museum in 2013. She can be contacted at archives@vanmaritime.com.

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“Vancouver Bound” This specially commissioned painting features the tanker MT Kirkeholmen heading for Vancouver on one of her regular north bound transits.

For special commissions:

www.johnhorton.ca (604) 943-4399 / john@johnhorton.ca June 2018 — BC Shipping News — 19

TERMINALS B.C. marine terminals

Facing up to competitive challenges By Captain Stephen Brown West Pacific Marine

would doubt that there is a single marine terminal manager in British Columbia who is not plotting his or her next moves to be more efficient, competitive and user-friendly. Here in B.C., we are a microcosm of the international challenges faced by marine terminals as world trade continues to grow, ships get bigger, infrastructure development becomes increasingly expensive and environmental resistance to port expansion projects is unrelenting. So, what are the specific challenges for British Columbia? Many terminals were designed for ships far smaller than those calling today with container, bulk, breakbulk and cruise terminals all struggling to keep up. At the same time, the demand for the shortest possible turnaround times is ever present as ocean carriers seek to realize the unit cost benefits of their investments in bigger ships. Line-ups of more than 30 ships at anchor, as commonly experienced by the Port of Vancouver, primarily waiting to load grain or coal will not be sustainable once the bulk market,

11 - 4

20 — BC Shipping News — June 2018

On Canada’s West Coast, we are seeing a regional trend towards diversification and in some cases a complete change of utilization. and by default, freight rates recover as they surely will. The already high monthly demurrage costs being borne by cargo will otherwise render Canada seriously unattractive as a reliable business partner. This is not news. It is acknowledged by the federal government, the provincial economies and shippers that rely on West Coast ports, terminals, railways, freight forwarders, ocean carriers and the wealth of logistical support expertise that, in combination, keep the wheels turning. On Canada’s West Coast, we are seeing a regional trend towards diversification and in some cases, a complete change of utilization. Arguably, the prime example occurred in 2007 with the launch of the single-berth Fairview Container Terminal in Prince Rupert, once a thriving lumber dock supported by lumber mills across Northern B.C. With initial federal, provincial and CN Rail investment, the skeptics were quickly silenced. Largely thanks to the commitment of COSCO, container handling has increased year over year and, in August 2017, a second deep-sea berth was commissioned, representing a capacity expansion of 60 per cent. Now operated by DP World, the terminal handled 926,540 TEU in 2017, a 26 per cent increase over 2016. Overall, the port handled 24.1 million tons in 2017 thanks to stronger coal and wood pellet volumes and despite a six per cent decline in grain throughput. We should also mention the emergence of supporting ventures including Ray-Mont Logistics which is purpose-built for transloading grain into containers, and the CT Terminals lumber transload facility on Ridley Island, a limited partnership between Tidal Coast Terminals and Coast Tsimshian Enterprises which complements Tidal Coast Terminals’ main operational site at Prince Rupert’s Butze Bay Industrial Park. The facility sorts logs, handles containers and reloads forest products in addition to handling breakbulk and project cargoes by barge. All this for a port which in the late 1990s was ready to close the doors and throw away the key. From a regional perspective, the closure of pulp, paper and lumber mills across B.C. in the decade beginning in 1995 was painful for many communities. Gold River, Thasis, Duncan Bay, Woodfibre, Skeena and Eurocan to recall but a few household names in the forestry industry that failed on account of unsustainable cost pressures and/or failure to modernize their mills. In retrospect, this restructuring, including a number of renegotiated labour agreements at surviving mills, was necessary to put the B.C. forestry industry on a sustainable footing. However, thanks in part to the amalgamation of Lower Mainland ports effective

TERMINALS

An artist’s impression of the proposed BHP potash export project at Fraser Surrey Docks. January 1, 2008, in combination with a continuous squeeze on the footprint of the Port of Vancouver, the trend towards diversification and even entire changes in utilization has gathered pace. A prime example of the need for diversification occurred in 2005 when Hapag-Lloyd acquired CP Ships and almost overnight diverted most of its container trades from Fraser Surrey Docks (FSD) to Deltaport. FSD lost around 75 per cent of its 400,000 TEU throughput, a major blow given that the terminal had strategically elected to withdraw from handling forestry to focus on container handling. The road to recovery has been long but thanks in part to the acquisition of FSD by Macquarie

22 — BC Shipping News — June 2018

Source: Vancouver Fraser Port Authority

Infrastructure Partners in 2007, there has been a steady uptake in the terminal’s fortunes. The project to introduce coal handling was tough but ultimately successful, even if implementation remains subject to market conditions. On the other hand, the prospect of investment by Parrish & Heimbecker in a new grain-handling facility with capacity to handle up to 3.5 million tons/year represents a major opportunity to build on the successful but limited capacity mobile grain loading system currently handling about one million tonnes/year. In addition to grain, the terminal continues to handle containers along with large volumes of steel imports, raw log exports and project cargoes, making it a genuinely diversified multi-purpose terminal. We should also mention that a proposal by BHP Billiton to develop a new potash export facility with an annual capacity of eight million tonnes is under preliminary review by Vancouver Fraser Port Authority. The project would utilize an existing berth and portion of the container yard. Staying with the theme of bulk handling diversification, and potash in particular, the decision of Pacific Coast Terminals in Port Moody and Germany’s K+S Potash Group to enter into a long-term contract in April 2014 for the handling, storage and export of potash products from K+S Potash Canada’s Bethune mine in Sasketchewan was another milestone of capacity optimization. Following completion of the $200-million infrastructure in August 2017, including 160,000 tonnes of storage capacity, the first 30,000 tonnes shipment to Asia left the port in late October. K+S Potash determination to get it right was perhaps further underlined by a decision to invest in a dedicated fleet of 531 rail cars to be handled under an exclusive rail service agreement with CP. The project is now well on the way to achieving the initial two million tonnes/year throughput projection. Faced with declining sulphur exports and the end of a contract to handle ethylene glycol, the decision of PCT to diversify can be judged as inevitable but it didn’t stop with potash. In 2013, PCT had signed an agreement with Bunge Canada to develop facilities for the handling of up to 400,000 tonnes/year of food grade canola oil with the potential to expand this to an eventual 750,000 tonnes/year. With Canada being the world’s largest producer of canola and controlling some 15 per cent of global supply, the $35-million project was a strategic move to maintain specialized liquid cargo handling capacity at the terminal.

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TERMINALS

Source: G3 Canada

Rendering of the new G3 Terminal. Another bulk facility which is currently turning the page on history is North Vancouver’s Fibreco Export Inc. Faced with declining throughput volumes in the company’s traditional wood chip and wood pellet markets, the terminal applied for approval to diversify from its business model of four decades to the handling of agricultural products through what is formally described as a “Terminal Enhancement Project.” In December 2017, the company received a Christmas present in the form of a project permit from VFPA subject to a number of conditions and while the terminal will no longer handle wood chips, it will continue to handle wood pellets in tandem with agricultural products. In February this year, the District of North Vancouver also issued a development permit and all

24 — BC Shipping News — June 2018

seems set for the new terminal operations to be in business in 2019. Also placing money on the continued expansion of agricultural exports are the existing grain handling terminals and the major redevelopment at what was previously Lynnterm West, or as many of us remember it “Seaboard International Terminal.” Proponent G3 Global Holdings, with partners Bunge Canada — a vertically integrated food and feed ingredient company, supplying raw and processed agricultural commodities and specialized food ingredients in the animal feed, food, food service and bakery industries — and Saudi Agricultural and Livestock Investment Company (SALIC) — a joint stock company based in Riyadh, Saudi Arabia. Vancouver’s first new grain terminal in more than 50 years will feature a

rail loop track with capacity for three 134car trains, over 180,000 metric tonnes of storage for cereal grains, oilseeds, pulses and special crops; and provide an annual increase in throughput capacity of around eight million tonnes. To give context to these investments, agricultural commodities (primarily grain) through the Port of Vancouver reached a new record high of 23.6 million tonnes in 2017, an eight per cent increase over 2016, representing the fourth consecutive year of growth. Overall cargo volume through the port reached a record high of 142.1 million tonnes, up five per cent from 2016. With respect to the Port of Vancouver’s largest bulk export, that of coal, volumes made something of a recovery in 2017 to reach almost 37 million tonnes, 70 per cent of which was metallurgical coal. At Westshore Terminals, throughput for the year was 29 million tonnes (25.8 million tonnes in 2016) assisted by the recovery in coal prices which began in 2016 and was sustained through 2017. The terminal’s $270 million capital upgrade project is on schedule with two of the three new stacker reclaimers now in operation. The third stacker reclaimer is expected to be assembled during the second half of 2018 and will be operational in late 2018 or early 2019. Another small development which has attracted local attention is the $32-million Vancouver Wharves “North Shore Diesel Handling Facility Expansion Project.” The project calls for construction of two additional fuel storage tanks and a rail track extension to accommodate 12 additional railcar unloading positions along with

TERMINALS supporting infrastructure, all within the terminal’s existing footprint. Turning to containers, the Port of Vancouver’s throughput in 2017 packed a heavy punch with an 11 per cent increase in throughput over 2016 to reach a record 3.3 million TEU, distributed between Global Container Terminals at their Deltaport and Vanterm facilities, along with DP World at Centerm and Fraser Surrey Docks. Deltaport remains Canada’s largest container terminal and in 2017, completed the Intermodal Yard Reconfiguration Project with delivery of 12 state-of-the-art rubbertired gantry (RTG) cranes from Konecranes of Finland. In addition, the second stage of the multi-phased expansion, described as the Deltaport Terminal Road and Rail Improvement Project (DTRRIP), was completed. This included rearranging the existing two sets of four rail tracks into a single set of seven tracks; replacement of seven existing electric RMGs with eight new, modernized, electric CRMGs; the addition of mobile container handling equipment; and the addition of a new rail maintenance building

In anticipation of the era of Ultra Large Container Vessels (ULCV), in 2017, GCT Deltaport also took delivery of two highefficiency “Megamax” Ship-to-Shore Cranes from Shanghai Zhenhua Heavy Industries (ZPMC). The impressive new cranes have 60 tonnes SWL and provide for 23+ container outreach. If all this were not enough, there are two more VFPA strategic initiatives designed to enhance efficiency at the terminal. The first is the establishment of a truck staging facility at the intersection of Highway 17 and Deltaport Way, designed to ease truck queues at the terminal gates through more efficient staging aligned to reservation times. The new facility will have the capacity to accommodate up to 140 trucks, a secure vehicle access gate, a Commercial Vehicle Safety and Enforcement (CVSE) area for truck safety inspections and new access and exit ramps to and from Highway 17. The project is a joint partnership with the Government of Canada, the BC Ministry of Transportation and Infrastructure, and VFPA.

The other important initiative, the new CBSA-approved Tsawwassen Container Examination Facility, has been in the making for some time. The new facility stands on an 11.4-acre site on Tsawwassen First Nation (TFN) industrial lands and will supplement the long-standing “Stream Logistics” facility in Burnaby. The major gain will be a significant reduction in the inefficient flow of traffic across Metro Vancouver, purely for the purpose of container inspections. The project also translates into action the VFPA commitment to partner with TFN in identifying opportunities for cooperation. Funding of construction is provided by VFPA and Transport Canada while an operator will run and maintain the facility on a shared basis with CBSA. The facility is expected to be up and running in late 2019. Back to the Vancouver inner harbour, on April 20 this year, the Centerm Expansion and the South Shore Access Projects received a project permit from VFPA following a review that began in late 2015. The project includes a series of both on and off terminal improvements to

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TERMINALS Centerm and to access roads. The permit includes 86 conditions, many of which relate to the avoidance of significant adverse environmental impacts. Centerm Expansion Partners (CXP), an unincorporated joint venture between Dragados Canada, Jacob Bros. Construction, and Fraser River Pile & Dredge, has been identified as the Design Build Contractor and contract negotiations are underway with a view to beginning construction later this year, subject to the issuance of permits. All going well, construction will be completed in early 2022 thereby increasing the terminal footprint by some 15 per cent and raising annual capacity from the current 900,000 TEU to 1.5 million TEU. Looking further ahead, the VFPA-led Roberts Bank Terminal 2 (T2) project continues to wind its way through the regulatory review process. The Project is undergoing a federal environmental assessment by an independent review panel, under the Canadian Environmental Assessment Act, 2012 and also a review under the BC Environmental Assessment Act. Should the project be approved there will inevitably be conditions, but this will clear the way to seek the required permits and authorizations to allow for construction. The new three-berth container terminal would add 2.4 million TEU of container handling capacity and

is predicted to be needed within the next 10 years based on throughput growth forecasts. Funding would be shared by VFPA and private investors. One final issue related to container terminals is the installation of shore power infrastructure. In 2015, VFPA and the then federal government announced $12 million of funding, $7 million at Centerm and $5 million at Deltaport, for the installation of shore power at Deltaport Berth 3 and Centerm. As with the shore power at Canada Place for cruise ships, key to success was the negotiation of a favourable rate agreement with BC Hydro. We should also recall that the Port of Prince Rupert already offers shore power at Fairview Container Terminal berth 1. The use of shore power is but one aspect of environmental impact reduction that West Coast ports and terminals are pursuing. Quebec City-based Green Marine has established a West Coast regional office in Seattle and several Canadian West Coast ports and terminals have signed up to the program. In addition to the major ports, the list of members includes, Global Container Terminals, DP World, Squamish Terminals, Fraser Surrey Docks, Pinnacle’s Westview Terminal (Prince Rupert), Neptune Terminals, Westshore Terminals, West Coast Reduction, Ceres Terminals, Kinder Morgan (Westridge) and Tidal Coast Terminals.

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Returning briefly to Canada Place, the VFPA estimates that almost 900,000 cruise ship passengers will transit the facility in 2018 — an increase of seven per cent over 2017. Despite the by now welldocumented restrictions presented by the air draft under the Lions Gate bridge, on September 30, the recently commissioned Norwegian Bliss, will be the largest ever cruise ship to make a port call and in 2019, both Ovation of the Seas and Celebrity Eclipse will home-port in Vancouver. Notably also in 2019, Cunard’s Queen Elizabeth will undertake a series of Alaska cruises from Vancouver, representing Cunard’s first appearance here for 20 years. Meanwhile, potential options for accepting today’s mega cruise ships at facilities outside of Burrard Inlet continue to be considered. On a very different theme, and while many projects have lapsed, planning for the expanded export of oil and eventually LNG through B.C.’s ports is far from dead, even if a few are on life support. In addition to the much-in-the-news Kinder Morgan Westridge Terminal expansion project, Woodfibre LNG, WesPac Midstream on the Fraser River, the LNG Canada (Shell) project in Kitimat and Steelhead LNG’s Kwispaa LNG project off Port Alberni are all still in play as is Kitimat LNG and the WCC LNG export project under joint development by Imperial Oil and ExxonMobil in Prince Rupert which is also home to Pembina’s Prince Rupert LPG Export Terminal on City of Prince Rupert owned Watson Island. Building on the port’s pursuit of diversification, the terminal is expected to be in service mid-2020, subject to completing regulatory approvals. Finally, and still on the energy front, I would mention the Eagle Spirit Pipeline project, the context and subject of which I described in some detail in last month’s edition of this magazine. It would be negligent not to mention another important project in Northern B.C., that of construction of a second berth at the Rio Tinto Alcan dock in Kitimat, formally known as the “Terminal A Extension Project.” Following completion of the $4.8 billion Kitimat Modernization Project in 2015 resulting in a 48 per cent expansion of production to 420,000 tonnes/year, the company has been using

TERMINALS the previous Eurocan paper dock for aluminium export loading on account of the main smelter dock being fully occupied in receiving raw materials in the form of alumina, petcoke and liquid pitch shipments. With the formal sale of the Eurocan Dock to Canada LNG, additional berth capacity became a pressing need. In addition to the 250-metre wharf extension, the project includes a barge ramp, tug dock and laydown area in addition to extensive dredging. Turning to the breakbulk terminal sector in the form of Lynnterm East and Fraser Surrey Docks, the sector saw a two per cent increase in throughput over 2016 due to improved wood pulp exports and the growing movement of freight between the Lower Mainland and Vancouver Island being handled by Seaspan Ferries. The previously discussed developments at Fraser Surrey Docks along with much reduced capacity at Lynnterm has, as anticipated, translated into significant handling capacity challenges for steel imports but at the same time opened up

further diversification opportunities for Squamish, and others, tied to creative trucking and transhipment agreements. Finally, let’s not forget the neverending drain on our pockets, that of our cars. Economic confidence provided the auto sector with a nine per cent throughput increase in 2017 over 2016. WWL Vehicle Services on the Fraser River somehow managed a third consecutive year of growth as their land footprint continues to operate at full capacity and at the mercy of rail fluency. Some of this pressure may be relieved by the recently announced plan by Nanaimo Port Authority, Western Stevedoring and their affiliate organization, the Auto Division of SSA Marine (SSA) to design, build, finance and operate a multipurpose breakbulk terminal at Nanaimo Assembly Wharf. The project calls for the development of a full Vehicle Processing Centre and Auto Terminal. First vessel calls are expected in Q1 2019. In summary, despite several disappointments related to provincial LNG

projects, there is clearly a great deal of other terminal development, expansion and modernization activity taking centre stage. The major challenge is to find a home for new projects given the lack of waterfront industrial land suitable for development, but also the competition for finance in support of another round of much needed infrastructure improvements. In the meantime, the trend towards diversification and alternative utilization of existing terminals seems certain to continue if we are to optimize what we have available to work with. Captain Stephen Brown spent 21 years at sea where he served as Master for the last five years with Gearbulk Shipping. After coming ashore, he worked in various levels of operational management before going on to serve as Chamber of Shipping of BC Director (2000 to 2008) and President (2008 to 2016). Captain Brown is currently the owner of West Pacific Marine Ltd., Marine Consultancy. For more information, visit www.westpacificmarine.ca.

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Better solutions... @portnanaimo 28 — BC Shipping News — June 2018

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LNG TERMINALS

B.C.’s LNG dream still within reach

n early 2012, the B.C. government of the day released an LNG strategy that looked to have the first LNG plant “up and running by 2015, with a total of three LNG facilities operating by 2020.” Even the Honourable Rich Coleman, then Minister of Energy and Mines, noted that “these are bold targets...” A number of factors have played a role in delaying B.C.’s dreams of a strong LNG industry — global LNG markets, licence approval processes, etc. — but the fact remains that B.C.’s LNG industry is still alive and inching forward. What started out as 20 projects in 2012 has been reduced to 15 following the cancellations of Aurora LNG, Grassy Point LNG, Prince Rupert LNG and Pacific Northwest LNG and the indefinite shelving of Douglas Channel LNG. The remaining proposals are at various stages — some much more positive than others when it comes to seeing light at the end of the pipeline.

Current climate

B.C. has a 200-year supply of natural gas. Given that the U.S. is now a net exporter of LNG (and expected to become the third-largest exporter in the world by 2020), finding new markets for Canada’s resource is becoming a critical, even

Given that the U.S. is now a net exporter of LNG (and expected to become the third-largest exporter in the world by 2020), finding new markets for Canada’s resource is becoming a critical, even urgent task... urgent task, one not going unnoticed by the provincial government. In March 2018, Premier John Horgan announced a new framework for natural gas development in the province that provides for relief from provincial sales tax; new GHG emission standards; electricity rates that are consistent with other industrial users; and elimination of the LNG income tax that had required LNGspecific tax rates. The new approach also set out conditions for all projects that guarantee a fair return for B.C.’s natural resources; jobs and training opportunities; respect and partnerships with First Nations; and protecting B.C.’s air, land and water. While the announcement was made to facilitate a positive financial investment decision later this year by LNG Canada (the largest project proposed for B.C.), Green Party leader Andrew Weaver and the three-member caucus that holds the balance of power in the B.C. government

expressed concern that development of an LNG industry will thwart B.C.’s efforts to meet GHG reduction targets. In stating his position, Weaver promised that if the measures were to go ahead “unamended,” the Greens would no longer have confidence in this government. Whether he follows through on bringing the government down over this issue remains to be seen. In terms of the global market outlook for natural gas, demand continues to grow around the world. Predictions from Shell indicate an increase by at least one-third by 2040. According to Shell’s recent LNG Outlook 2018, “The LNG market has continued to defy expectations, growing by 29 million tonnes in 2017. Based on current demand projections, Shell sees potential for a supply shortage developing in the mid-2020s, unless new LNG production project commitments are made soon.” ExxonMobil was even more optimistic with their predictions, expecting 40 per cent growth over the same timeframe.

Source: Woodfibre LNG

Conception of the Woodfibre LNG project in Squamish. June 2018 — BC Shipping News — 29

LNG TERMINALS

Source: WesPac LNG

Artist’s rendering of the WesPac LNG marine jetty at FortisBC’s Tilbury Island LNG plant.

Yes, yes and fingers crossed

Canada’s first shipment of LNG left FortisBC’s Tilbury LNG facility in midNovember 2017 destined for China. The LNG ISO-container shipment of approximately 17 tonnes was transported by container ship rather than LNG tanker, but was nonetheless a milestone. Subsequent

LNG ISO-container shipments have also gone by container ship. WesPac Midstream – Vancouver LLC is proposing to build a marine jetty next to the Tilbury LNG facility. The marine jetty would provide the capability to dock and load LNG barges or carrier ships directly from the Tilbury LNG facility,

rather than just by container ship. This project is still in the early days of the planning and consultation phase. Current activities are within the Environmental Assessment process managed by the BC Environmental Assessment Office. Coupled with the expansion project at Tilbury — which will add 1.1 million gigajoules of LNG storage capacity and according to the latest project schedule is expected to be operational later this year — FortisBC is one of the front-runners in B.C.’s LNG export industry. Having been granted a 40-year licence from the National Energy Board (NEB) to export approximately 2.1 million tonnes of LNG per year, Woodfibre LNG cleared another hurdle this past March when it received environmental approval from the Minister of Environment and Climate Change for changes to its cooling technology. Despite reports in October 2017 that they were delaying the start of construction, Woodfibre spokesperson Jennifer Siddon noted that significant progress on the project has been made. This past

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LNG TERMINALS

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Artist’s rendering of the LNG Canada site in Kitimat (looking northward). December, KBR, Inc. was selected to carry out Pre-Notice to Proceed services. This followed the completion of a competitive Front End Engineering Design (FEED) process which was announced in October 2016. The next project milestone will be the award of an Engineering, Procurement and Construction contract sometime this year with construction on the terminal expected to start by late 2018/ early 2019. Should all go according to plan, Siddon expected Woodfibre LNG to be operational by the early to mid-2020s. Well over 10 times the size of Woodfibre at 26 mtpa (at full capacity) and representing the largest energy investment project ever to be built in Canada, LNG Canada is working towards its FID, which they expect their Joint Venture Participants to announce later this year, although the exact timing is up to the JVPs to determine. It has achieved all of its regulatory permits and a 40-year export licence from the NEB, and recently announced the successful bidder for the Engineering, Procurement and Construction Contract. The joint venture between JGC Corporation and Fluor Corporation will be responsible for directly hiring the majority of the thousands of skilled workers that will be required during the five-year construction period. While careful to not disclose their decision prematurely, a sign that things are looking positive came when BC Energy Minister Michelle Mungall told reporters that Petronas was back at the table and now investing with Shell’s LNG Canada project. While neither

Petronas nor LNG Canada has confirmed the report, if true, it would be a very good sign nonetheless.

Maybe

Beyond the three above, three additional LNG proposals continue to make progress albeit have indicated final investment decisions are still at least a couple of years away. Steelhead LNG is developing the Kwispaa LNG project on Huu-ay-aht First Nations-owned land in the Alberni Inlet, just 11 nautical miles from the open ocean. Steelhead LNG and Huuay-aht First Nations executed lifecycle Relationship Agreements in June 2017, and in January 2018, Steelhead LNG shortlisted four global contractors for the FEED work, with two successful bidders to be announced in Q3 2018. Steelhead LNG has also provisionally nominated Hyundai Heavy Industries to supply the hulls for the At-Shore LNG™ units. A Project Description is expected to be filed in mid-2018, with FID expected in 2020. Steelhead LNG has been granted NEB export licences for up to 24 million tonnes per annum for 25 years, with Phase 1 starting with 12 mtpa in 2024. The Chevron and Woodside joint partnership project known as Kitimat LNG has received all major provincial and federal environmental assessment certificates as well as its NEB export licence to ship 10 million tonnes per year. Currently in the FEED phase, the project website notes that FID is dependent on “finalizing the engineering and design work, establishing

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www.flyissgmt.com June 2018 — BC Shipping News — 31

LNG TERMINALS a stable and competitive fiscal framework from government, gaining additional First Nations support and securing firm LNG sales agreements.” In what could be taken as a sign that news may come soon, a recent Globe and Mail news item reported that Chevron is in talks with Petronas to sell a minority stake in the project. In the meantime, WCC LNG Ltd., whose 30-mtpa project is just north of Prince Rupert, announced that while remaining in the Pre-Application stage of the environmental assessment process, the Imperial Oil/ExxonMobil project will continue at a slower pace throughout 2018, citing uncertain LNG market conditions and economic uncertainties. No timeline has been established for an FID.

Maybe not

There are six projects that, at present, look doubtful — or at the very least, still have a long process ahead of them. Discovery LNG, proposed for the old Elk Falls Paper Mill, while having obtained its NEB export licence for 20 mtpa, is still looking for investment partners and has not yet identified a pipeline route. Likewise, Orca LNG, while having been granted an export licence for six floating facilities with a capacity to ship 24 mtpa, hasn’t yet confirmed their location (except to say that it would be in the Prince Rupert area) and have not yet confirmed whether they would build a new pipeline or use existing infrastructure.

Cedar LNG has received approval from the NEB for one of its three applications for floating facilities but has yet to secure approval for another two and have still not settled on a pipeline route. And while the official word from Altagas on Douglas Channel LNG and Triton LNG is that “both projects are on hold,” with their LPG terminal moving ahead on Ridley Island, it is unlikely either of these projects will proceed anytime soon. Watson Island LNG is also another one unlikely to be realized. The project, while never officially cancelled, no longer has a website.

You never know

Five more projects that have been announced but are at very early stages of development and could go either way include NewTimes Energy LNG which has received NEB approval for a 12-mtpa floating facility but has not yet selected a location; Nisga’a LNG which has yet to submit an application but is first looking to attract investors; the Kitsault Energy Project north of Prince Rupert for 20 mtpa which is described as “still speculative;” the Canada Stewart Energy project which has been granted an export licence but has still to reach an agreement on a pipeline that would supply a floating facility to start before moving to a land-based infrastructure; and — while Shell may have cancelled their Prince Rupert LNG project, Engbridge’s Spectra is trying to find another partner for the Westcoast Connector pipeline that was associated with it.

Conclusion

Predictions that B.C. would have three terminals exporting natural gas by 2020 will obviously not happen. However, it is looking like at least three will be operating by the mid-2020s — WesPac at FortisBC’s Tilbury facility, Woodbridge, and LNG Canada (Mark Turner, Senior Marine Advisor for LNG Canada reported to BC Shipping News in 2017 that, once the FID is made, construction will take about five years). Optimistically beyond that, another three have a good shot of moving ahead although timing is less certain. That being said, all projects are still at the whim of global markets and economies as well as cumbersome government approval processes, political machinations and social licence. Time will tell. BCSN

32 — BC Shipping News — June 2018

BIOFOULING

The maritime industry deals with invasive aquatic species By Darryl Anderson and Georges LaRoche

nvasive aquatic species (IAS) — via “biofouling” — is one problem that has now been identified by the International Maritime Organization as a significant environmental threat. Biofouling occurs as the result of an accumulation of aquatic organisms such as micro-organisms, plants or animals on surfaces and structures immersed in or exposed to the aquatic environment. Dr. Theofanis Karayannis, an IMO technical officer, recently suggested that hull biofouling could be as severe a cause of the incursion of IAS as ballast water has previously been thought to be. In this article, we will explore the environmental risks associated with biofouling. It will also present insights into the emerging regulatory framework both globally and in North America so ship operators can help gauge their compliance readiness. It will close with a discussion of some of the challenges and some solutions available for vessel operators.

Global and regional environmental effects of biofouling

The IMO‘s November 2017 legal update provided three major observations regarding aquatic invasive species on a global level: • Seventy to 80 per cent of IAS introductions occur through biofouling, and new geographic areas are constantly being invaded. • IAS can cause enormous damage to biodiversity, and the damage they cause is often irreversible. • The spread of IAS is one of the greatest threats to the ecological and economic well-being of the planet. The effects of IAS in North America have been felt throughout the Great Lakes, Mississippi, East, West and Gulf Coasts as well as the Arctic. Many nonindigenous species have been introduced to all the North American coasts, including the spread of the very venomous Lionfish on the Florida South Coast. This

Invasive aquatic species (IAS) — via “biofouling” — is one problem that has now been identified by the International Maritime Organization as a significant environmental threat. is a species that, until recently, was native mainly in the South Pacific and Indian oceans. The Asian Carp has invaded the Mississippi River and is now threating entry into the Great Lakes as well. Also, the incursions of species such as zebra mussels, gobies and the ruffe have had destructive effects on the Great Lakes ecosystem. The Transport Canada website states that the Great Lakes now have over 170 established aquatic alien invasive species. Between 2009 to 2012, Fisheries and Oceans Canada (DFO) has conducted surveys on six of Her Majesty’s Canadian ships in the Arctic. A total of 229 hull scrapings were taken before, during and after the Arctic voyages. DFO presented their findings at the 2018 annual Canadian Marine Advisory Committee conference in Ottawa. DFO’s analysis showed that: A total of 293 species types were identified, including one species that has never before been observed in Canada.

One non-indigenous species was verified as being able to survive in the Arctic region.

Governance

The International Convention for the Prevention of Pollution from Ships (MARPOL) established the International Convention on the Control of Harmful Anti-Fouling Systems on Ships in 2001. It prohibits the use of harmful organotin compounds in anti-fouling paints used on vessels. It defines “anti-fouling systems” as “a coating, paint, surface treatment, surface or device that is used on a ship to control or prevent attachment of unwanted organisms.” The convention called for a global prohibition on the application of organotin compounds in anti-fouling systems on ships by January 1, 2003, and a complete prohibition by January 1, 2008. The convention became valid and enforceable on September 17, 2008. Consequently, ships

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June 2018 — BC Shipping News — 33

BIOFOULING Canada continues to formulate programs and commit considerable resources to tackle the problem of IAS and waterborne toxins. must remove any harmful coatings or completely seal them with an approved coating. Several new types of coatings have been developed to assist with this issue and are in accordance with the “Guidelines for the Control and Management of Ships’ Biofouling to Minimize the Transfer of Invasive Aquatic Species” in 2011. More recently, the International Convention on the Control and Management of Ships’ Ballast Water and Sediments came into force in September 2017. Internationally, New Zealand is currently working through the IMO process to bring about revisions to the 2011 requirements. New Zealand may be at the forefront of biofouling protection, having passed various laws including the 1993 New Zealand Biosecurity Act, and the 2014 New Zealand Craft Risk Management Standard. The implication for vessel operators entering New Zealand waters is that, as

34 — BC Shipping News — June 2018

of May 2018, vessels must arrive with a ‘clean hull.’ This means: • Vessels staying up to 20 days and only visiting designated ports (places of first arrival) will be allowed a slight amount of biofouling (slime layer, goose barnacles, and up to five per cent cover of early biofouling depending on the area fouled). • Vessels staying longer than 20 days or visiting places that aren’t places of first arrival will only be allowed a slime layer and goose barnacles. In North America, the United States Coast Guard has required a biofouling management plan (BMP) on board a vessel since June 2012. The State of California established a Marine Invasive Species Act in 2003 with the goal of reducing the risk of introducing invasive aquatic species. The State passed legislation entitled California’s Marine Invasive Species

Program (MISP) and beginning January 1, 2018, California requires stringent reporting and inspection procedures far above national standards and consistent with the best practices found in the IMO biofouling guidelines. The Californian law provides for more extensive reporting and data recording procedures than the USCG requirements. Canada continues to formulate programs and commit considerable resources to tackle the problem of IAS and waterborne toxins. Efforts to address biofouling include legislative instruments, regulations, policies and practices that are evolving over time. Some of the most important legislation is contained in Canada’s Oceans Act, Species at Risk Act, Fisheries Act, Aquatic Invasive Species Regulations and Regulations for the Prevention of Pollution from Ships and for Dangerous Chemicals. Canadian ports are proactively working to protect marine life. In 2012, the Prince Rupert Port Authority (PRPA) began a partnership with Northwest Community College (NWCC) and the Smithsonian’s

Invasive Tunicate Network’s Plate Watch program to launch one of only a handful of invasive aquatic species monitoring programs on the B.C. coastline. The program now includes a partnership with DFO and others in the region. The program also includes plankton sampling and trapping for Green Crab. The Plate Watch program is a collective of researchers and volunteers from various marine science groups that stretch from California to Alaska. Since its formal launch in 2007, Plate Watch has created an online network that was established to share information across the broad network of participating sites. The program utilizes the simple device of a clean, flat PVC plate tied to a brick, which is then deployed from a pier or floating dock. The plate is secured approximately one metre underwater where the largest percentage of target species can be found. It is allowed to collect samples for up to six months before they are pulled up and investigated. Together with NWCC’s Applied Coastal Ecology program, approximately 40 plates at four different waterfront sites are monitored. To date, no invasive species have been detected in the Prince Rupert harbour, while a few have been found in the general area of B.C.’s north coast and the Alaska southeast. However, the Plate Watch program establishes critical baseline data and a registry of species in the region. It also provides the Port Authority with the ability to participate in a larger view of the arrival and spread of invasive species along the North Pacific coast. Participation in the network allows for a greater mobilization of potential management strategies. Jason Scherr, PRPA’s Manager, Environmental Sustainability, stated that “the local program reports its findings to the coast-wide collection of experts and contributes to an early detection system for invasive species not previously present in the Northwest Pacific. Industry has to work with partners and experts to understand the environment in which the port operates and take coordinated action with others. Collaborative projects such as Plate Watch and forums such as the Port Authority’s environmental stewardship committee are important for building stakeholder relationships and collaboration.”

Photo courtesy Prince Rupert Port Authority

BIOFOULING

Volunteers for the Plate Watch program, a joint initiative between the Prince Rupert Port Authority and the Northwest Community College to watch for invasive aquatic species on B.C.’s coastline.

Impact of biofouling on ship owners

For a ship owner, there are four main concerns regarding biofouling: • It raises the level of drag and reduces the vessel’s maximum speed. Added drag on the vessel causes an increase in voyage time and fuel/power consumption. • It increases fuel and power consumption, therefore reducing the fuel range. • It causes greater frequency of maintenance. • It introduces vessel risk and the possibility of port entry denial or quarantine. Each of the four impacts results in additional costs due to extra fuel, inspection and maintenance. The risk of delays due to port entry denials or quarantines could have substantial effects on the vessel’s voyage costs. A number of methods have been used by ship owners to reduce biofouling on a ship’s hull. Anti-fouling paints have traditionally been used to coat the bottoms of ships to prevent invasive aquatic species and other organisms from attaching themselves to the ship’s hull. However, some of the most effective older anti-fouling paints were found to contain the organotin tributyltin (TBT) which has been proven to be leaching into the marine environments and causing damage to aquatic life. This type of coating must now be removed or

sealed before entering the various ports and territorial waters. The added fuel being consumed by vessels where excessive fouling occurs not only depletes the planet’s natural resources at a greater rate, but also increases the level of emissions being released into the atmosphere. The build up of hull fouling on vessels also causes an increase in the level of underwater noise which is causing concern over its effects on marine species in the vicinity of the sound. After progressing from the old coatings (where lime and arsenic were used to prevent biofouling) to using metallic compounds, it was discovered that elevated levels of the organotin tributyltin (TBT) were leaking into the water and causing significant damage to marine life, initially being proven to cause deformations and even sex changes in various shellfish. Research has shown that these toxins persist in the marine environment and continue to kill sea life and cause further damage. New authorized coatings are available and can be found listed on several government and international websites (for example, http://pr-rp.hc-sc.gc.ca/ls-re/index-eng.php lists registered coatings on the Canadian Government site). Cleaning in drydock can be effectively controlled but dockside cleaning becomes complicated and risky when the vessel is afloat. The main complication with past systems (for example, wire brushes and June 2018 — BC Shipping News — 35

BIOFOULING Scientists, governments and shipping company officials are becoming ever more aware that biofouling of a ship hull has to become a significant priority... blasting) was that they tended to release the organisms and paint toxins into the water during the cleaning process. Quite often, they would remove but not kill the unwanted creatures and in the process, damage existing coatings. Mechanical or electronic systems are being used to prevent biofouling and the maintenance of affected ships. For example, on March 2018 Sidney, B.C.based EMCS Industries received purchase orders for its anti-fouling NoXX system from ferry builder Damen Shipyards Group. The NOXX™ LFP (Low

36 — BC Shipping News — June 2018

Frequency Pulse) Anti Fouling system uses extremely low power, adds very little weight to the vessel and is a tried-andtested solution in fresh and salt water. The system works regardless of the material used in the hull or onboard applications. The electronic devices are being installed on two new B.C. Ferries vessels currently being built in Romania. Several new tools have been developed such as encapsulation (wrapping the ship and killing all organisms), heat treatment (doesn’t clean but kills existing organisms) and the underwater “clean

and contain” systems such as Whale Shark/All-Sea (Canada), Franmarine EnviroCart (Australia), and the TridentMaersk Trident V TecHullClean system (Spain and Canada). The main challenge with these systems at present seems to be non-widespread availability and a relatively high and thus more prohibitive cost in comparison to old methods.

Conclusion

The effects of biofouling on the Pacific and Atlantic coasts, Arctic and Great Lakes are already being experienced. Scientists, governments and shipping company officials are becoming ever more aware that biofouling of a ship hull has to become a significant priority in the management and prevention of marine invasive species. Consequently, biofouling is a substantial global challenge and will soon, if not already, take centre stage in the prevention of IAS. Internationally and regionally, solutions to ballast water management are in their late stages so the focus will now begin shifting to this problem. Through its unique monitoring program, PRPA is working collaboratively with partners in Prince Rupert and across the West Coast of North America to understand better how we can collectively keep our coastline healthy and free from potentially harmful organisms. The Watch Plate program demonstrates that wise stakeholders have been proactive in dealing with biofouling. For ship owners, the issues are more than avoiding costly maintenance in the future. The cost of trying to manage IAS infiltration into various regions is significant. The whole research, regulatory and application processes that are required to remedy this problem has been, and will prove to be, quite costly to both stakeholders and governments. Darryl Anderson is a strategy, trade development, logistics and transportation consultant. His blog Shipping Matters focuses exclusively on maritime transportation and policy issues. Georges LaRoche is a cargo consultant at LaRoche Consulting. He has over 30 years’ experience managing gearless and self-unloading dry-bulk carrier operations on the Great Lakes, St. Lawrence, and Atlantic regions and internationally.

BALLAST WATER

USCG limits extensions for ballast water systems

hanges in US Coast Guard policy may see operators struggle to align compliance between US and IMO regulations, says Evon Li, Senior Engineer, Advisory Services, ABS. Regulations governing the discharge of ballast water in the United States and globally have solidified for ship owners who are trying to do their part to limit the spread of invasive aquatic species. While the IMO continues to allow limited delays in the enforcement of its Ballast Water Management Convention, the enforcement of the US Coast Guard’s (USCG) policy has drawn nearer. Until recently, ship owners trading in U.S. waters could defer the installation of a Ballast Water Management System (BWMS) on existing vessels by obtaining an extension from the USCG: Because there was an insufficient availability of USCG-approved systems, vessels scheduled for drydocking in 2016 or 2017 were allowed to delay installation until the next scheduled drydock in five years’ time. However, in a March circular from the USCG, ship owners were told they could no longer rely on these extensions. The USCG indicated the type approved BWM systems are able to cover nearly all classes of vessels and are compatible with a broad range of operational requirements.

The USCG indicated the type approved BWM systems are able to cover nearly all classes of vessels and are compatible with a broad range of operational requirements. In some cases, the deadline for installation has been reduced to a year or less from the date of an upcoming drydock, unless extraordinary circumstances justify an extension. For vessels with a drydock scheduled in 2018, the extension period has been reduced to 30 months from five years. These changes could become problematic for ship owners and operators of ‘midlife’ vessels who, for commercial reasons, are trying to align USCG compliance with the later IMO D-2 compliance dates. Vessels drydocked in 2016 — including those with extensions to drydock through 2018 — are in a better position to align the U.S. and IMO compliance dates; however, vessels with drydocking scheduled from 2019 onwards are unlikely to be able to align the two; they would need to opt for an earlier installation of a BWMS or use another compliance method allowed by the USCG. In addition to selecting the right system, owners are faced with making decisions on their retrofit plans, which may have a cascading impact on compliance timelines, extension requests, crew

training and other steps to meet the new requirements. To help ship owners understand the options and obligations for compliance with IMO and USCG regulations, ABS is offering a BWMS Technology Evaluation service to support them with the transition, and in finding the system that is most suitable for specific vessels. The service utilizes an interactive, multiphase process with an extensive database of BWMS technologies, design capabilities/limitations, installation requirements, power requirements, operating considerations and restrictions on equipment use. It also provides support for requesting USCG extensions. The new limits on USCG extensions for installation of a BWMS apply to Canadian vessels with ballast tanks operating in U.S. territorial waters (12 nautical miles from the baseline) on any of its coasts, and to ships entering U.S. waters from outside the US EEZ and then entering the Great Lakes via the St. Lawrence Seaway system. The regulations do not apply to vessels operating solely within the Great Lakes.

June 2018 — BC Shipping News — 37

UNDERWATER NOISE

Ship design with a porpoise in mind! Liz McCrary and Donald MacPherson, HydroComp, Inc.

or readers of this magazine, it should come as no surprise that owners and operators are under growing pressure to ensure that their ships are quiet. The principal contemporary driver for this is the impact of ship-produced Underwater Radiated Noise (URN) on marine mammals. Governmental oversight and regulation of URN are not far off, and all stakeholders — especially the designers of these ships — should evaluate URN in the design process like they would stability or hydrodynamics.

We are blind to the noise

Noise is a transient experience, leaving us with no permanent evidence of what is happening below the ocean surface. While

If the interest is noise, then let’s use practical noise metrics as a way to rank vessel operation in noise-sensitive zones, and not use a one-size-fits-all speed limit. other physical types of detrimental ocean activities are visibly apparent and call for action, the out-of-sight impact of sonic pollution has long been overlooked. We do have evidence, however, via the documentation of marine mammal response to certain noise spectrums plus the measurements of ship noise using transducer arrays. The overlap of the two leaves us with the incontrovertible conclusion that ship-produced URN — which for a containership has been likened to a 190 dB

marching band — affects marine mammals in ways that are devastating. The problem of URN is worldwide. At any given time, over 60,000 ocean-going ships are transiting our oceans. It has been established that noise levels have doubled every decade for the last 60 years. So how do we make ships quieter?

Speed limits

The typical regulatory response to issues of noise reduction is to introduce a limit on transit speed. Underwater Radiated Noise is substantially (but not completely) related to propeller cavitation, and any action that reduces cavitation will be beneficial. Reducing speed will indeed lower propeller thrust and cavitation — and noise, if the ship is demonstrating excess propeller-driven noise. A common speed limit figure is not appropriate, however, as a metric of “acceptable noise” for all ships. As there is a broad range of propulsor and vessel types, some ships will be noisier than others. Companies that invest in noise mitigation and purposeful design will actually find their investment and good will to be meaningless as they are measured against a “worst case” speed limit. If the interest is noise, then let’s use practical noise metrics as a way to rank vessel operation in noise-sensitive zones, and not use a one-size-fits-all speed limit.

Shortcomings in noise assessment

Photo: BC Shipping News

HydroComp’s focus on propeller cavitation could help ship owners reduce underwater radiated noise. 38 — BC Shipping News — June 2018

Virtually all efforts to reduce noise in ships of commerce happen “after the ship has sailed.” Mitigation of excessive URN on an existing vessel, of course, is always expensive and frequently complex. While the cost of mitigation includes the engineering and refit to resolve the noise, it also includes the lost time conducting the company’s business. The most effective

UNDERWATER NOISE

Liz McCrary and Donald MacPherson, HydroComp, Inc. are collaborating with others in the maritime industry to advance prediction tools for underwater radiated noise. and least costly URN prevention is during early-stage design. Unfortunately, the ship design community currently has very limited options to assess whether URN levels for any particular ship are harmful or dangerous, let alone to propose design revisions to mitigate noise. Noise is a complex physics, and high-order simulation models require a specialist in both hydrodynamic computation and acoustic analysis. Very few design offices have the necessary specialized tools and the experienced staff. We do have a handful of simplistic models that attempt to connect ship operating metrics to the principal generators of URN — propeller cavitation. There are numerous types of cavitation, with tip vortex cavitation as one of the first and most powerful noise generators. Two of these simplistic models are “Cavitation Inception Speed” (CIS, or the speed at which cavitation starts) and “Turns Per Knot” (TPK, or propeller rotation per ship speed).

Cavitation Inception Speed

It is logical that if one can determine the CIS for a ship, then operation below this speed will be URN-free. Current CIS limits, such as by SNAME (Society of Naval Architects and Marine Engineers) Bulletin 3-37, are regrettably too simplistic to be useful. For example, Bulletin 3-37 states that CIS is at a speed calculated by the following equation where ship length is the only variable:

CIS [kts] = 7 + 0.005 x Ship length [ft] In other words, CIS is 9.5 knots for all 500-foot ships — regardless of ship type, stern characteristics, or propeller design. Of course, if this type of CIS were to be used for regulation, ship owners who have invested in noise mitigation strategies for the ship and propeller will be considered no differently than any other owner that has not. The use of CIS as a metric for URN is certainly reasonable, but a prediction of CIS that is simplistic and does not consider important ship and propeller design characteristics is not.

Turns Per Knot

This metric is based on the supposition that URN can be principally affected by a change in RPM. There is some merit in this idea, but like CIS, the broad use of TPK for predicting noise reduction is not universally valid. It again does not consider the problem in sufficient detail to provide alternative ways to achieve noise reduction in a manner that might better support the business plan of the ship. The equation to estimate the reduction in Radiated Noise Level (RNL) for a constant speed solely uses RPM and propeller diameter reduction ratios. While a reduction in RPM or diameter will indeed reduce tip velocities and generally lead to a reduction in tip vortex cavitation, this equation neglects the effect of other hydrodynamic influences. For example, at any given speed, the propeller June 2018 — BC Shipping News — 39

UNDERWATER NOISE Our industry needs prediction methods that are functional and comprehensive, yet accessible to engineers and naval architects without the support of specialists. needs to generate a particular thrust. For a reduced RPM, the propeller must have an increased pitch to generate this thrust. If the pitch is increased near the tip — as it likely would be — there is no guarantee that the tip vortex strength will be measurably less than before. Also, if the lower diameter is not compensated with a larger blade area ratio, the significant blade cavitation will rise. An increased blade area will also reduce propeller efficiency, leading to a modest rise in power, fuel consumption and emissions. In short, the simplistic TPK model omits hydrodynamically significant details that

might allow the naval architect to seek out quieter alternatives that do not compromise the owner’s business plan. Our industry needs prediction methods that are functional and comprehensive, yet accessible to engineers and naval architects without the support of specialists.

Better design tools for naval architects

Collaborating with other technical partners such as VARD Marine (BC) and Lengkeek Vessel Engineering (NS), HydroComp, Inc. has embarked on a project to develop and deploy new functional

URN prediction tools for naval architects. The objective is a URN prediction capability that finds the “sweet spot” between fidelity and functionality that will: • allow its use by the ship design experts and not require acoustic specialists; • include ship and propeller descriptors in sufficient detail to allow for investigation of different options that do not compromise the intended performance of the ship; • be conducted without the need for expensive computational resources; and • relate to a broad range of vessel types and operating scenarios. The team will be building upon many years of experience in propeller performance modelling and development of hydrodynamic and propulsion system simulation tools. The basic framework of the prediction models will be the identification of inception for both blade and tip vortex cavitation, along with relationships between cavitation strength and noise levels. It will also include non-cavitating pressure pulse assessment, which is a notable omission from available simplistic methods. The overall objective is to provide naval architects with capabilities to evaluate typical noise-lessening strategies early in design, where actions to mitigate URN are most effective and least costly.

An opportunity to help

To advance this initiative, the team is actively seeking contributors to assist in this meaningful project. A formal “Joint Industry Project” prospectus is available for any company interested in participating as a sponsor or data contributor. All sponsors will be invited to be a partner in the team’s activities and outreach. Owner members of Green Marine may be able to identify their sponsorship as a contributing task to meet “Performance Indicator” criteria of the association’s “Underwater Noise” levels. As specifically stated, members are encouraged to: “Support/collaborate on scientific research on underwater noise allowing the estimation of relative ship noise levels.” For additional information about this project, meeting URN compliance criteria for your vessels, or for general URN technical questions, please contact Liz McCrary, URN Project Coordinator, at liz.mccrary@hydrocompinc.com.

40 — BC Shipping News — June 2018

LEGAL AFFAIRS Update on the interprovincial transport of oil

Practical federalism: A cynical strategy By Russell Robertson

A Vancouver lawyer with Bernard LLP

ince my colleague, Karrisa Kelln, only one month ago wrote on this very topic, a number of new developments have occurred that have shifted the landscape yet again. B.C. has unveiled details of the draft legislation to regulate increases in diluted bitumen flows and announced it would refer the constitutionality of the proposed legislation to the court. In response, the legislatures of Alberta and Saskatchewan both tabled draft legislation to restrict oil or gasoline exports to B.C. In addition, the Supreme Court of Canada recently issued a landmark ruling on the so-called ‘free the beer’ case which focused on the related issue of interprovincial trade barriers. First to B.C. In January, the B.C. government announced plans to provide additional environmental protections and raised the possibility of banning increased diluted bitumen exports flowing from Alberta through the Kinder Morgan Trans Mountain pipeline expansion. We now know more about those specific plans. B.C. proposes to create a new permitting regime under the Environmental Management Act S.B.C. 2003, c. 53. The regime would apply only to those with care and control of heavy oil or bitumen and it would apply only to increased volumes (over a 2013 to 2017 baseline). In other words, it would apply only to Kinder Morgan if the company were to go ahead with the Trans Mountain pipeline expansion, but would not affect the existing pipeline. The amendments would allow B.C. to base its permitting criteria on the results of new scientific studies of the effects of diluted bitumen spills and to alter that criteria as the scientific data evolves. If Kinder Morgan were lucky enough to be granted a permit, the permit would also include requirements for enhanced spill prevention, planning, response and compensation.

As anyone who has experienced litigation can attest, these things take time — and the B.C. government, the primary litigant, does not appear to want an expeditious hearing. B.C. will refer the constitutionality of its proposed permitting scheme to the BC Court of Appeal. This is known as a reference question. A reference question is a submission by the federal or a provincial government to the court asking for an advisory opinion on a major legal issue, such as the constitutionality of legislation. The reference is treated in the same way as an appeal case. The Attorney General of BC is entitled to appear and to make submissions. The Attorney General of Canada and the Attorneys General of the other provinces are entitled to notice and may appear to make arguments on the case. Other interested parties are able to apply for intervener status to make submissions during the hearing. The Court of Appeal may also direct that certain persons be notified of the hearing and allowed to participate. The B.C. government has framed the matter as a division-of-powers issue concerning the provincial government’s jurisdiction to legislate in relation to “property and civil rights” (s.92(13), Constitution Act, 1867) and the federal government’s jurisdiction to legislate in relation to “interprovincial undertakings” (s.92(10(a)). The Court will be asked three questions: 1. Is the draft legislation within provincial jurisdiction to enact? 2. Would the draft legislation be applicable to hazardous substances brought into B.C. by means of an interprovincial undertaking? 3. Is there inconsistent federal legislation that would render the draft legislation inoperative? As anyone who has experienced litigation can likely attest, these things take

time — and the B.C. government, the primary litigant, does not appear to want an expeditious hearing. Some may even accuse B.C. of stalling for tactical reasons. The case will proceed as an appeal case with multiple government parties and almost certainly multiple intervenors. Although the Court of Appeal would have the authority to demand tight timelines for the hearing of the reference question, it is unlikely that the court would give any less than 30 days for the Attorney General of Canada and the other responding parties to file their written arguments (called a factum), after receiving the Attorney General of BC’s factum. Only then could a hearing be scheduled. The Attorney General of BC has not yet filed its factum and there is currently no timeline for it to do so. Should procedural issues, such as parties’ intervenor status, become an issue, those determinations will need to be resolved well before the hearing takes place. Once the hearing does take place, the Court of Appeal can issue its judgment at any time; days, weeks or even months later. Following that decision, any party can pursue an appeal to the Supreme Court of Canada, and a new judicial procedure begins again. It is not the intention of this article to render an opinion on the constitutionality of B.C.’s draft legislation. However, the governments of Alberta and Saskatchewan have likely considered that B.C., merely by taking these steps and submitting the reference question to the courts, has created a big enough cloud of uncertainty over the fate of the Trans Mountain pipeline expansion, that Kinder Morgan may back away. Suffice it to say, those provinces believe June 2018 — BC Shipping News — 41

LEGAL AFFAIRS B.C.’s draft legislation is clearly an unconstitutional attack on an area of federal government jurisdiction and an attack on an industry critical to their provinces’ economy. They have retaliated. Alberta has tabled Bill 12, named the Preserving Canada’s Economic Prosperity Act, which would establish a permitting process for individuals or corporations seeking to export energy products outside the province. Last week, Saskatchewan followed suit by tabling the very similar Energy Export Act. The Minister of Energy is given complete discretion to issue permits if considered to be in the public interest, but the specific enumerated goal is to ensure “adequate pipeline capacity is available to maximize the return on resources.” The constitutionality of these latest two moves by Alberta and Saskatchewan is dubious in light of the Supreme Court of Canada’s decision in R. v. Comeau, 2018 SCC 15; the so-called ‘free the beer’ case. In that case, a challenge was made to the constitutionality of New Brunswick’s law that prohibited having anything more than a very small amount of liquor purchased from anyone other than the New Brunswick Liquor Corporation. Mr. Comeau was charged under that law for bringing more than the allowable amount back home from a shopping trip across the border in Quebec. The challengers claimed the law (and any other laws like it) violated s. 121 of the Constitution Act, 1867 which says: “All Articles of the Growth, Produce, or Manufacture of any one of the Provinces shall, from and after the Union, be admitted free into each of the other Provinces.” The Supreme Court disagreed with the challengers and sided with New Brunswick. In the Court’s opinion s. 121 “…prohibits governments from levying tariffs or tariff-like measures (measures that in essence and purpose burden the passage of goods across a provincial border); but, s. 121 does not prohibit governments from adopting laws and regulatory schemes directed to other goals that have incidental effects on the passage of goods across provincial borders.” The liquor law did not violate s. 121 because although it in essence functioned as a tariff, the objective of the regulatory scheme was not to restrict trade

across a provincial boundary, but to enable public supervision of the production, movement, sale and use of alcohol within New Brunswick. The law served this primary objective and thus its effect as a tariff was only incidental. Alberta and Saskatchewan’s draft laws, on the other hand, appear to lack any objective other than to restrict interprovincial trade and to punish B.C. Their constitutionality is doubtful and those who drafted the laws probably know it. Suffice to say they were born out of frustration with the seeming lack of respect B.C. has shown for the otherwise valid exercise of federal jurisdiction over the Trans Mountain pipeline. Arguably, B.C. has demonstrated contempt for the very principle of federalism; something that should concern all of us. As the Supreme Court stated in Comeau, quoting from its previous decision in Reference re Securities Act, 2011 SCC 66, at para. 7: It is a fundamental principle of federalism that both federal and provincial powers must be respected, and one power may not be used in a manner that effectively eviscerates another. It is a fair comment that B.C.’s attempt to ban, or at least regulate, increased diluted bitumen flowing through the province, even if found to be constitutional on its face, effectively eviscerates the authority all of us understood the federal government exercised over the Trans Mountain pipeline as an interprovincial undertaking. Would the federal government have engaged in the three-year national energy board review of the project if approval was always only subject to B.C.’s ultimate right to restrict flows of goods through the province? If B.C. believes its proposed legislation is constitutional, what does this say about B.C.’s views on federalism and the role of our federal government? For example, does B.C. also believe it could introduce a law to prohibit the transportation of Canadian military equipment and armaments through the province? Ultimately, does B.C. see Canada more as a united country or a name brand for a loosely organized collection of sovereign provinces? We must leave those existential questions aside and return to the practical reality. One thing is for sure, May 31, Kinder Morgan’s deadline for the federal government to resolve uncertainty, will pass long before the BC Court of Appeal renders its ruling. Thus, the company will have to decide if it is still interested in choosing Canada as a country to do business in. Kinder Morgan no doubt considers the matter knowing that it has already spent many millions over the last 10 years laying the legal ground work for the pipeline and fighting wave after wave of administrative and legal obstacles. If Kinder Morgan is prepared to abandon the pipeline after all of that, we can be sure that many other organizations will simply avoid Canada in the first place. If Kinder Morgan abandons the Trans Mountain pipeline, B.C. will have won the battle simply by stalling and creating a climate of uncertainty — a strategy that could be described as practical federalism. As Ms. Kelln pointed out last month, the danger in playing fast and loose with the Constitution is that it becomes easier with repetition. Practical federalism may become the new normal. Russell Robertson is a maritime lawyer at Bernard LLP and can be reached at robertson@bernardllp.ca

42 — BC Shipping News — June 2018

ENVIRONMENT

Washington State partners with DNV GL to deliver on Washington Maritime Blue strategy

ashington State Governor Jay Inslee’s Maritime Innovation Advisory Council launched an effort called “Washington Maritime Blue” in December 2017 to develop a comprehensive strategy for leading the nation in “blue” ocean industry technology and practices. DNV GL, the world’s leading classification society and a recognized advisor to the maritime industry, is supporting the Washington State Department of Commerce to help achieve this vision. The roadmap and supporting strategy framework is driven by the Maritime Blue Task Force, which is made up of 38 maritime industry leaders and stakeholders from across the public and private sector. DNV GL and the Washington State Department of Commerce held the first meeting of the Task Force in late January this year in Seattle, and in late April in Tacoma. At the meeting, Task Force members examined how leading international maritime clusters have pursued similar sustainability and innovation-centric agendas, which spurred a working session to identify potential development pathways for Washington Maritime Blue. Some of the key goals of the strategy, developed with guidance from the Governor’s Maritime Innovation Advisory Council and the Task Force, include establishing Washington State as a global maritime innovation hub and pursuing a competitive path to decarbonization. To realize these goals Washington State is committed collaborate and to draw from the experiences of a diverse and inclusive community that is reflective of the whole maritime sector. Joshua Berger, the Governor’s Sector Lead and Director of Economic Development for Maritime said: “DNV GL have shown themselves not only clear leaders on maritime innovation and technology, but offer facilitation skills to engage our broad set of stakeholders. They are sensitive to the challenges the industry and our communities face as we adapt to ensure resiliency and relevance for a sustainable future. Based on their successful track record, DNV GL can clearly support us and

our stakeholders as we move forward in a coordinated and visible process.” “DNV GL is proud to partner in this project and support Washington as it works to position itself in the competitive national and international marketplace,” said Freddy Friberg, Regional Manager of DNV GL – Maritime Americas. “The members of the Maritime Blue Advisory Council and Task Force bring a broad range of perspectives to the development of the new roadmap. Input from all stakeholders, including business, government, ports, community, education, labour, advocacy, and research is important to ensure the strategic roadmap for Washington Maritime Blue is robust, actionable and considers the interplay between market sectors.” For its part, DNV GL has taken on the task of cluster benchmarking. To do this, they started by reviewing the cluster mapping of earlier studies and incorporated recent developments. The subsequent detailed analysis provided definition and baseline figures for each component in the sector and subsector and development at the national level. Trends and developments identified through the analysis will help to shape potential areas of focus for Washington State in furthering their vision of being the U.S.’ most sustainable maritime industry by 2050. Nine trends in maritime sustainable development have been identified through DNV GL’s work: • Alternative fuels — following the IMO’s Marine Environmental Protection Committee decision to increase pressure for the low carbon transition is placing greater emphasis on natural gas, biofuels, methanol and hydrogen concepts, as well as fuel cell technologies. • Digitalization — data availability and transparency is revolutionizing traditional business models, presenting opportunities to improve efficiency, adding customer and stakeholder value and generating new business. • Automation/Autonomy — cost pressures and manning shortages are driving advances in automated and

autonomous technologies. This will require a focus on potential safety and reliability benefits as well as a future skills transition that must be understood and addressed. • Electrification — falling costs and technological advances of battery and hybrid solutions are resulting in the rapid expansion of these applications in shortsea and ferry. • Environmental capital — the growing awareness of and sensitivity to the health of marine ecosystems requires that industry take a broader view of its environmental impact. • Efficient design — advances in computing power and advanced materials are driving more efficient designs. DNV GL identified advanced hydrodynamics simulation capabilities, modelling of complex cyberphysical systems and lightweight and next generation materials as all having an influence on design. • Policy and incentives — maritime nations are taking a more strategic approach to the industry with “smarter” policy driving and incentivizing development in key strategic areas. Local emissions and environmental rules are rewarding positive efforts. • Aquaculture — significant growth is forecast in this sector to meet global consumption demand. Rapid innovation in technology and practices will be seen. • Partnerships — leading maritime capitals are investing in collaborative initiatives that see government, industry and academia partnering through more formal and dedicated cluster organizations. These trends were reviewed this past April in a presentation to stakeholders by DNV GL and Commerce who also highlighted next steps, including the formation of working groups that can define pathways, milestones and demonstration projects. Groups will work over the summer to produce a detailed roadmap which should be ready for implementation by late 2018. Monitoring and evaluation will take place for six months before a final report can be aligned with updated policies by June 2019. June 2018 — BC Shipping News — 43

EVENTS Mari-Tech 2018

Strong attendance and relevant speakers make for a highly successful conference

he Vancouver Island Branch of the Canadian Institution of Marine Engineering and Podium Conferences are to be congratulated for organizing such a successful conference. From the Victoria Conference Centre as the venue and an agenda reflecting the theme of “Honing the Leading Edge” to exhibitors and networking opportunities, Mari-Tech 2018 was the place to be for the maritime industry from April 18 to 20. Indeed, roughly 500 industry representatives were on hand. To follow are a few highlights. For a more detailed summary and photos, please visit www.bcshippingnews.com.

Pre-conference workshops

It was standing room only at the Outlook Session hosted by Public Service and Procurement Canada (PSPC) as one of three pre-conference workshops. The session provided an overview of the federal government’s upcoming procurement over the next three years and included areas such as small vessel construction, vessel repair, refit and life extension, vessel chartering, disposal and other special projects in the realm of marine equipment. PSPC also held B2G Sessions on both April 18 and 19 for one-onone engagement between PSPC and industry. The ProteusDS Workshop, run by Dynamic Systems Analysis, explored a new thruster model used for assessing global performance of vessel motion and a new cable state generator which makes it much easier to create segments, create initial conditions and assign element properties for cables. And the HydroComp Propeller School, led by Don MacPherson, HydroComp’s Technical Director, looked at how the propeller influences many key vessel operations. The class was divided into three groups who looked at propellers as part of a system; propeller hydrodynamics (thinking like the water and how shape affects performance); and propellers as a component (the purpose for various propeller characteristics).

Presentations

In his role as Master of Ceremonies, Rear Admiral (Retired) Richard Greenwood did a superb job keeping speakers on schedule for the full two-day agenda. While space doesn’t permit a full recap of all presentations, we’ve done our best to summarize the highlights.

Keynote speakers

Mark Collins, President & CEO, BC Ferries — Since taking on the role of President & CEO, Collins has sought greater engagement with communities and more focus on customer relations. In addition to providing a snapshot of operations, Collins highlighted the importance of BC Ferries’ commercial services that support and enable growth of businesses all along the coast. Not only does BC Ferries move $7 to 8 billion worth of cargo to Vancouver Island every year, the commercial services add $90 million in annual revenues.

44 — BC Shipping News — June 2018

Collins described the new vision that has been adopted by BC Ferries. “Trusted and valued,” he said. “I believe if we do not operate with an inherent level of trust between us and the communities we serve, we will do nothing but argue and get bogged down in detail and won’t be able to make true progress in meeting community expectations.” He further outlined the mission of connecting communities and customers to the people and places that are important in their lives and that this mission would be carried out in a way that reflects the values that are important to customers — safety, reliability and sustainability — and then highlighted a number of initiatives that demonstrated the implementation of those values. Looking at the fleet, Collins noted that the North Island Princess, the oldest vessel in the fleet, will be replaced in 2020. “We have a fleet that, despite an investment of $2.5 billion on new vessels and infrastructure in the last 14 years, still has ships from the 1950s and 1960s,” he said. “We still have a way to go to get the fleet up to date,” adding that one of the drivers for fleet renewal was interoperability and reducing the number of classes of vessels, estimating that within about 15 years, BC Ferries would go from 17 to about five, including new classes such as the Salish Class; the M47 (a 47-car, diesel-electric hybrid with two to be delivered in late 2019); a replacement for the Bowen Queen (with contracts being issued later this year); and a new major class to replace the older vessels like the Queen of Coquitlam and Queen of Alberni (at least five vessels to be built with contracts to be issued by 2020 and delivery between 2023 and 2025). In addition to the new fleet acquisitions, Collins also pointed out that BC Ferries has spent $1.5 billion since 2004 on ship repair. As heavy users of the local industry, he highlighted the importance of the local industry and noted the support of BC Ferries for organizations like the Association of BC Marine Industries and local educational institutions. Robert Wight, Director General of Major Projects, Canadian Coast Guard — Wight’s presentation, entitled “Seas of Change: Innovation, Learning and Modernization at the Coast Guard,” gave an excellent overview of current activities related to the procurement of major builds for the Canadian Coast Guard. Prefacing his remarks with a note about the Oceans Protection Plan and how the environment, including spill response, has become a much larger focus for the CCG, Wight outlined the current transformation being seen when it comes to building Canada’s fleet. Like BC Ferries, CCG is moving to a smaller number of ship classes, ultimately ending up with four major classes. “We are looking to have more diversified ships as opposed to those that are singular in their mission capabilities,” Wight said. “Looking at the future, we want to be able to accommodate different missions — for example, environmental response was not something that was on our radar to a large degree a number of years ago and not a lot of our ships are set up with tow winches or response

MARI-TECH 2018 capabilities, so we want to move to a more flexible, versatile type of ship.” With regards to the smaller vessels — the mid-shore patrol and search and rescue lifeboats — as well as CCG’s fleet of helicopters, the same principles are being applied. As CCG undertakes the construction of the new vessels, Wight highlighted a number of key requirements: icebreaking; mission modularity to provide for increased flexibility on the use of vessels; ‘cradle to grave’ manufacturing processes and materials to provide for minimal impact on the environment (for example, noise reduction and lower emissions); and “function and diversity in the workplace” to provide for the ability to attract diversity in crew in terms of different sizes and different abilities of people. Looking forward, Wight outlined both challenges — for example, integration of the new vessels into the fleet, including training and change-over — as well opportunities to get more people involved, such as other Coast Guards, universities or other industries, to study best practices for a number of areas, such as environmental sustainability.

Technical presentations

There were a whopping 18 technical presentations over two days. Each provided engaging and relevant material as evidenced by robust discussions during question and answer periods. And each topic kept the conference theme of “Honing the Leading Edge” top of mind. To give just a few examples: • How to achieve weight savings from deck coatings, presented by John Mangano with AkzoNobel. • LNG experiences: Imagination to operation, presented by Greg Peterson, BC Ferries. • On the edge of sustainability? Global shipping and climate change, presented by Jeffrey Smith. • Building a graving dock for future generations at B.C.’s oldest shipyard, presented by Riccardo Regosa (Point Hope Maritime) and John Wyder (Advisian).

CIMarE Medal of Honour

Bert Blattmann, Chair of the National Council of CIMarE, had the great privilege of presenting the CIMarE Medal of Honour to Mr. William Jamer. In describing Jamer’s achievements in marine engineering, Blattmann highlighted his career in the Canadian Coast Guard, culminating in the role of Chief Engineer with service in numerous regions and exposure to many classes of vessels. From the CCG, Jamer moved over to Public Works (now known as Public Services and Procurement Canada) where he was involved in both inspections and contracting on both the Atlantic and Pacific coasts. His responsibilities included contracting for major refits and procurements of major services. Notably, he was eventually assigned as the head of National Marine Procurement in Ottawa, where he was involved in the Canadian Submarine Acquisition Program for the Navy. Following his retirement, Bill formed a consulting company and is called upon regularly for advice relating to marine issues.

to the marine industry, and specifically to professional marine engineers. Notable displays included a sizeable Babcock Canada booth which saw significant traffic and 3GA Marine, who had a continual line up of people wanting to try out their 3D laser scanning system used for refit and maintenance projects. Jastram Technologies used the opportunity of Mari-Tech 2018 to announce the new NightFINDERTM LED Night Vision System manufactured by Carlisle & Finch Co. The system is a new, lowpower, long-range Infrared LED that changes total darkness to daylight on a camera monitor. With upwards of 500 people in attendance, including registrants, exhibitors and speakers, it was a good thing there were many networking opportunities scheduled throughout the entire three-day event. Beginning with a Welcome Reception at the Sticky Wicket Pub, followed by breakfasts, refreshment breaks and lunches (all held within the exhibit area) and an evening event at the Royal BC Museum, attendees were able to catch up with old colleagues and make new acquaintances.

Of special note

No summary would be complete without acknowledging the hard work of those who spent months organizing the conference. From the selection of the Victoria Conference Centre as the venue, to developing the agenda, filling the trade show floor and getting ‘bums in the seats,’ the Planning Committee did an outstanding job. Chair Sam Johnson, along with Bill Wallace, Michael Weaver, Alicja Rudzki, Tony Cond, Hunter MacDonald, Bert Blattmann, Phil Dauphinee, Edward Camilleri, Martin Leduc and Ryan Nicholl are to be congratulated on their efforts. Assisted by Podium Conferences, who lived up to their reputation for delivering on goals, Mari-Tech 2018 has set a new benchmark that subsequent CIMarE branches must now strive to meet. On that note, Mari-Tech 2019 is already in the planning stages. Scheduled for April 23 – 25, 2019 in Ottawa, the theme has been set as “Full Speed Ahead: Firing on all Cylinders” and will challenge marine engineers to look past the status quo and consider new, inventive solutions for the most important issues facing marine engineering in Canada. BCSN

Exhibits and networking

The trade show portion of Mari-Tech 2018 sold out very quickly in the weeks leading up to the event. Roughly 75 companies represented the many products and services that are relevant June 2018 — BC Shipping News — 45

TECHNOLOGY

Milestone reached for Carlisle & Finch

Launch of NightFINDERTM LED

Carlisle & Finch made additional news this past month when it announced the launch of a new Night Vision System. The NightFINDER™ LED uses low power, long-range Infrared LEDs to emit an “Infrared Beam” that is invisible to the human eye but seen with a lowlight camera. As a result, mariners will now be

46 — BC Shipping News — June 2018

Photo courtesy BC Ferries

he Carlisle & Finch Company marked a significant milestone this past month when it was confirmed that BC Ferries had taken delivery of the 100,000th searchlight, a 500-Watt Xenon. Jastram Technologies confirmed the sale, noting that the equipment would be installed on BC Ferries’ Northern Sea Wolf. Carlisle & Finch has been designing and manufacturing “Quality & Reliable” marine searchlights and associated equipment since 1894. This searchlight system for the Northern Sea Wolf was manufactured in conjunction with C&F Co.’s nationwide Canadian distributor, Jastram Technologies, with which a longstanding and loyal business relationship is had. The Northern Sea Wolf was originally built in 2000 and is in the process of a major upgrade to provide significant enhancements and vessel modernization for safe and comfortable journeys for residents and regional visitors up and down the B.C. coastline this summer.

BC Ferries’ Northern Sea Wolf received the 100,000th searchlight, a 500-Watt Xenon — a milestone for Carlisle & Finch. Jastram also supplied other lights, horn and steering. able to see covertly in total darkness as harbours and channels appear lit up like daylight on a camera monitor. Normally, a standard searchlight can only be used intermittently because the bright visible beam blinds oncoming vessels. However, the infrared illuminator can be used continuously like

TECHNOLOGY an “invisible headlight” as it covertly monitors harbours and navigation channels at night. The IR illuminator will also monitor the crew and survey the surface areas of the vessel in total darkness without harming the crew’s night vision. Only about a year ago, IR LEDs could service maximum distances of a few hundred metres. With the combination of advanced optics and the latest and most efficient IR LEDs on the market, Carlisle & Finch is now servicing distances of up to a mile. The camera and IR illuminator are sold as an upgrade kit which can be bracketed to the searchlight head. Therefore, the searchlight pan/tilt base can be used to aim the LED Night Vision System in addition to the searchlight. Similar to an IR beam on a weapon site (i.e., the IR illuminator and searchlight beam are precisely aligned on the same target), the IR beam can be used as a covert targeting device to instantly and accurately illuminate the object with the searchlight. Marine vessels have begun adding more and more cameras in order to record

Examples of the difference the new NightFINDERTM LED makes for night vision. incidents and events for the purposes of reducing liability. However, these cameras cannot perform suitably at night. With the addition of long-range IR illumination, incidents and events can now be recorded at night as well. In addition to being more affordable than thermal camera systems, the LED Night Vision technology has several technical advantages as well. The video image is more clear and crisp and it can also read vessel names and numbers as well as identify flags. Unlike thermal cameras, it

can see through glass and can more readily identify floating objects, such as logs or buoys, because a heat signature is not required to see them. Finally, the same camera which is used to see with the IR illuminator at night is also used as a highresolution colour camera during the daylight hours. Jastram Technologies Ltd., long-time Canadian representatives of Carlisle & Finch, are the sole distributors of the new NightFINDER™ LED. For more information, visit www.jastramtechnologies.com.

June 2018 — BC Shipping News — 47

MERCY SHIPS Mercy Ships Cargo Days

Hospital ship lightens the load for those in need of medical care by Tim Maloney, National Director, Mercy Ships

48 — BC Shipping News — June 2018

Photos: Mercy Ships Canada

eaders in the international and Canadian shipping and trade communities are rallying to raise financial support during Mercy Ships Cargo Days. Momentum is building for this October 3, 2018, event where marine industry stakeholders make donations, pledge cargoes or share their commission in favour of Mercy Ships. Mercy Ships is a non-government organization with a mission to increase access to healthcare worldwide through the deployment of the world’s largest private hospital ship. Since 1978, Mercy Ships has provided services and materials in developing nations valued at over $1 billion, impacting more than 2.5 million direct beneficiaries through 587 port visits. Cargo Days, now in its third year, is the forum where everyone involved in the shipping and the commodity trading industries can collaborate on a dedicated event aiming to improve the lives of millions of people. In 2017, 24 charterers, 20 ship owners, 24 shipbrokers, seven port agents and nine service companies/associations participated in Cargo Day, which has raised $1 million in the two years since it has launched. “Mercy Ships truly makes a difference to peoples’ lives. Being able to witness all the work they do for those living in the poorest countries in Africa makes me believe even more in the Mercy Ships organization and that our support really is needed and makes a difference,” said Kris Ellefsen, head of tankers at Fearnley Shipping. “I can’t think of a worthier cause for Nor-Shipping and the global business community we represent to support,” said NorShipping Director Per Martin Tanggaard, “We’re looking forward to assisting them in any way we can, enabling them to keep reaching out to the men, women and especially children that need their specialist care the most.” Whether your firm is a charterer, a ship owner or freight broker, a port agent, an inspection company, terminal operation, shipyard, ship chandler, insurance, legal or marine consultancy, all sectors of the marine industry can join in this unprecedented event. For example, charterers can pledge cargoes (these cargoes are called Mercy Cargoes) to participating shipbrokers, port agents and inspection companies, who will then donate 50 per cent of the commission made on these cargoes to Mercy Ships. All marine industry stakeholders can pledge directly to Mercy Ships. Companies in the maritime sector understand the vital importance of revenue growth required to support ongoing operations and capital investment. Industry financial support is critical since Mercy Ships is actively working on their fleet expansion. The new vessel will be capable of serving anywhere in the world and will initially expand Mercy Ships’ activity on the African continent. This new ship will enhance the ability of Mercy Ships to deliver

Funds raised through Cargo Day will go towards a new ship and ongoing operations for Mercy Ships.

The Cargo Days fundraising initiative provides much needed funding to allow Mercy Ships to bring healthcare to some of the poorest nations in the world. medical care, while significantly increasing capacity-building and training potential. Delivery of the vessel from the shipyard is anticipated in the next 14 months with full deployment in 2020. Darryl Anderson, Managing Director of Wave Point Consulting, stated, “thanks to the combined action of the shipping and trading communities through Cargo Day, Mercy Ships can continue to lighten the load for millions of people in need of medical care through its hospital ship. I invite others involved in Canada’s maritime trade to join me in supporting Mercy Ships Cargo Day 2018.” Get involved with Mercy Ships Cargo Day 2018 by visiting mercyshipscargoday.org.

FERRIES

Interferry conference to feature three key issues in record attendance bid

Interferry has also approached a multinational authority for a keynote presentation on global terrorism trends and the potential impact on ferry operations security within the European Union, particularly in the context of a study project that will include several Interferry members. Within its own meetings, the committee has reviewed various mitigating solutions such as CCTV, canine units and Advanced Passenger Information (API) — but their overriding conclusion is that, rather than a blanket approach, security measures must be tailored to the diverse requirements of individual operators and routes. Outcomes from a security practices questionnaire issued to Interferry members last December supported this strategy, leading the committee to decide that the measures listed should be circulated not as ‘Best Practice’ but as ‘Possible Measures’ to help operators make a bespoke choice. The speakers program will also feature a report from Interferry’s Domestic Safety Committee about its work focusing on improvements in the developing world. In April, Interferry Regulatory Affairs Director Johan Roos and two other committee members took part in a dedicated workshop in Port Moresby, Papua, New Guinea — the latest stage of a commitment that previously involved direct engagement in the Philippines, helping to produce a dramatic reduction in incidents and fatalities over the past five years. The report will be supplemented by presentations from suppliers with safety-orientated technologies that Photo: Dave Roels

he highly topical issues of safety, security and the environment set the theme for the 43rd annual Interferry conference in Cancun, Mexico this October. Port of Vancouver President and CEO Robin Silvester will be among the keynote speakers. Canada’s largest port is acknowledged as an industry leader on environmental sustainability, notably through the rolling Port 2050 initiative launched a year after Silvester was appointed in 2009. The project is designed to identify various scenarios that could affect the port’s long-term future in terms of both challenges and opportunities. Among such scenarios, The Great Transition has been acclaimed for supporting a shift to a lowercarbon economy that strikes the balance between sustainable trade, social factors and a healthy environment. Since 2016, this focus has evolved into a new vision — to make Vancouver the world’s most sustainable port. The mission is further driven by the port’s mandate under the Canada Marine Act to grow the economy while protecting the environment. The port has implemented a host of measures to safeguard the waters, land and wildlife within its jurisdiction, together with steps to reduce air emissions throughout its supply chain including ships, trucks, rail locomotives and terminals. Silvester brings a wealth of experience to his keynote address. A Cambridge University graduate and chartered engineer, he spent a major part of his career in senior international roles in the ports industry before making Vancouver his home — initially as the inaugural President and CEO of P&O Ports Canada. Another keynote has been confirmed for the equally timely session on security — Mark Sutcliffe, Director of the U.K.-based CSO Alliance of maritime company security officers formed in 2012. Following six years in the British Army, Sutcliffe has worked in the maritime industry for 25 years, progressing from roles in the U.K. ports of Hartlepool and Bristol to senior positions with Gearbulk, the Gulf Agency Company and Wilhelmsen Ships Service. Interferry has also confirmed Ben Lofstad, Directorate of Operations, Allied Maritime Command – NATO, as a keynote speaker. Mr. Lofstad will address global terrorism trends and the potential impact on ferry operations, which will be further reviewed by the association’s new Security Committee. Although no sector specific threats have been identified, the committee was formed as a precautionary response to recent events targeting the general public, and aims to ensure that the ferry industry becomes more visible on security issues. Added to the industry-wide perspectives of guest speakers, such input from Interferry’s own expert members will play a prominent part at the conference — reflecting the year-round, high-level work undertaken by the association in consultation with authorities such as the International Maritime Organization (IMO), national administrations and other stakeholders. As a case in point, the Security Committee’s participation will include an update regarding ongoing discussions about ferry

Robin Silvester, President & CEO, Vancouver Fraser Port Authority, has been confirmed as a keynote speaker for Interferry 2018. June 2018 — BC Shipping News — 49

FERRIES

The 43rd annual Interferry conference will be held at the JW Marriott Cancún Resort and Spa, October 6-10. can readily and cost-effectively be implemented in developing nations. In addition, the safety session will review Interferry’s input on RO-PAX fire precautions — largely through its IMO consultative status — following several high-profile incidents in recent years. This work was again underlined by its key interventions at the fifth annual session of the IMO Ship Systems and Equipment sub-committee in March. Interferry gained support for a more generic and practicable approach to risk mitigation on existing ships, allowing for adaptations to the ship’s current systems rather than potential solutions more suited to newbuilds. The association has likewise established a strong track record of consultation and interventions on environmental issues, which will also be highlighted in Cancun. In April, the IMO Marine Environment Protection Committee confirmed the

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immediate application of a 20 per cent correction in its Energy Efficiency Design Index (EEDI) calculation formula for RO-RO and RO-PAX vessels. The EEDI requires all types of new ships built for international operation to be more energy efficient than the average of existing designs in their respective trades. From 2016, based on concerns voiced by members, Interferry argued that even highly efficient newbuild designs were struggling to meet the sector-wide target, citing the diversity of such vessels. Backing for the immediate introduction of the 20 per cent adjustment enables the revival of existing newbuild contracts that had been inhibited by the original criteria. Alongside hydrogen fuel, ballast water management and underwater ship noise, Interferry plans to make shipbreaking and disposal a major element of the environmental session, with presentations and a panel discussion among operators and breaking yards on the legal, regulatory and ethical issues. “The core themes of this year’s conference are of major significance, not just to the worldwide ferry industry but across society as a whole,” said Interferry CEO Mike Corrigan. “As such, we are very hopeful that Cancun 2018 will break last year’s record attendance in Split, Croatia, where we attracted 370 delegates from 27 countries.” The two-day conference takes place on Monday and Tuesday October 8-9 as the centrepiece of a comprehensive networking and social program that runs from October 6-10 and provides an industry-leading opportunity to gain practical guidance and valuable new contacts.

43rd ANNUAL

INTERFERRY

CONFERENCE SAFETY, SECURITY

REGISTRATION IS OPEN!

& ENVIRONMENT

We are assembling a world-class speakers program that will address current topics and issues relevant to the ferry industry, expanding on our theme of Safety, Security and the Environment.

CANCUN

Our three keynote speakers are Ben Lofstad of NATO, Robin Silvester of the Port of Vancouver and Mark Sutcliffe of CSO Alliance – Maritime.

OCT. 6–10, 2018

The full program will include networking events, a Technical Tour, the Carus Cup golf tournament, host-sponsored activities at Aquaworld and amazing tours including Tulum and Isla Mujeres. PLATINUM SPONSORS