BC Shipping News - November 2011

INSIDE: ROYAL CDN NAVY MARITIME FORCES PACIFIC FLEET GUIDE

BC SHIPPING NEWS

Volume 1 Issue 7

www.bcshippingnews.com

November 2011 Retail Price: $4.95

Esquimalt Naval Base Lifeblood of a region.

Industry insight

Rear-Admiral Nigel Greenwood Leadership on the West Coast: A Canadian asset.

International shipping Japan’s success model and some valuable lessons for Canada.

Technology

The race for the perfect fuel.

Plus: Mission to Seafarers: Events raise funds for new facility.

November 2011

Volume 1 Issue 7

On the cover: HMCS Protecteur performs a Replenishment At Sea (RAS) of fuel for Destroyer HMCS Algonquin, May 3, 2008.

Cover Story - P.18

Contents

Esquimalt Naval Base: Lifeblood of a region. Ray Dykes looks at the importance of the Navy to the economy of Vancouver Island.

Rear-Admiral Nigel Greenwood

Leadership on the West Coast: A Canadian asset BCSN speaks with the Admiral about the purpose, platform and people of the Royal Canadian Navy Maritime Forces Pacific.

26 Navy fleet guide

Maritime Forces Pacific fleet

This handy reference guide provides a visual guide to the fleet of the Royal Canadian Navy Maritime Forces Pacific including key specifications.

48 Technology / New products Natural microbes: Cutting edge cleaning solution for bilge oil sheens.

Fuel management: The race for the perfect fuel.

D E P A R T M E N T S

F E A T U R E S

10 Industry insight

6 9

News briefs / industry traffic

23

Mission to Seafarers

32

History lesson

34

International shipping

37

Conference

39

Legal affairs

42

Oil spill response

44

Pilotage

53

Workboats

54

Upcoming events

Letters to the editor and news.

Industry growth

Results of the National Shipbuilding Procurement Strategy bid.

Significant funds raised.

Wrens — birds with big historical wings: The Women’s RCN Service.

Japan’s success model and some valuable lessons for Canada.

A recap and summary of the recent Sustainable Shipping Conference.

Doing business in Canada: A primer on the Coasting Trade Act. Oversight group plays an import role.

Pacific Pilotage Authority: PPA really means ‘Pollution Prevention Assured’.

New Robert Allan Ltd. designed fireboat delivered.

Pacific Marine Expo.

November 2011 BC Shipping News 3

November 2011 Volume 1/Issue 7 Publisher McIvor Communications Inc. President & Editor Jane McIvor

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EDITOR’S NOTE

A heartfelt ‘thank you’ for your service.

L

ast year, I had the privilege of attending Remembrance Day services in London, Ontario with my uncle Alex. Alex Crowley served with the Royal Marines during the Second World War in the Burma theatre as well as assisting with repatriation efforts to take POWs home to Australia and New Zealand. As their motto notes: “Once a marine, always a marine”, and Alex remained an active member of the Royal Marine Association (RMA) in Canada for over 60 years.

Recognizing that Remembrance Day services took place across the country and, indeed, throughout the world, and that this was not the first service I had attended, this day was particularly special as it was the first service I had ever attended with my uncle. Unfortunately, it turned out to be the last as Alex passed away this summer.

Without going into great detail about the kind of man who, in addition to receiving medals for his service in the war, received one of Glasgow’s highest honours for running into a burning building to save a woman and small child, suffice to say that Alex was a very modest man and typically shied away from the spotlight.

Following the service, a crowd gathered around my uncle and his fellow marines and each in turn shook hands with people thanking them for their

service. Amidst it all, a woman approached with her young son and asked if Alex could explain his medals to the boy. Following an account of each medal, the boy turned to his mom and said, quite excitedly: “That’s what I want to be when I grow up.” It was a touching moment — one that made me very proud of my uncle.

This simple interaction provided me with a renewed sense of gratitude for the men and women who have kept — and continue to keep — our country safe and our borders defended. Whether it be here, in present-day Canada, or

Britain in 1945, because of the past and current efforts like those of the Royal Marines, or like those of our own Maritime Forces Pacific, we enjoy a way of life of our own choosing.

This issue of BC Shipping News takes a look at the Royal Canadian Navy Maritime Forces Pacific and pays tribute to their work, their leadership and their efforts to ensure the safety of our maritime borders. It’s also a tribute to my uncle and to his friends in the RMA who continue to uphold the ideals to which we should all aspire.

Thank you for your service. BCSN

From left to right: Marine Jim Keegan, recipient of the General Service medal; Corporal Jim Revely, recipient of the 39-45 Star, Burma Star, and Victory Medal; Marine Bobby Kennedy, recipient of the 39-45 Star, Burma Star, Atlantic Star, Italian Star, African Star and Victory Medal; and Corporal Alex Crowley, recipient of the 39-45 Star, Atlantic Star, Burma Star, Defence Medal and Victory Medal.

Member of: Western Marine Community Association

International Sailor’s Society Canada

November 2011 BC Shipping News 5

INDUSTRY traffic National Energy Board grants 20-year export licence to Kitimat LNG.

T

he National Energy Board (NEB) has approved an application

by KM LNG Operating General Partnership (KM LNG) for a licence to export liquefied natural gas (LNG) from Kitimat, British Columbia to markets in the Asia-Pacific region.

The export licence authorizes KM LNG to export 200 million tonnes of LNG (equivalent to approximately 265 million 103m3 or 9,360 billion cubic feet of natural gas) over a 20-year period. The maximum annual quantity allowed for export will be 10 million tonnes of LNG. The supply of gas will be sourced from producers located in the Western Canada Sedimentary Basin. Once the natural gas has reached Kitimat by way of the Pacific Trail Pipeline, the gas would then be liquefied at a terminal to be built in Bish Cove, near the Port of Kitimat. The construction

and operation of the pipeline and the terminal will require provincial regulatory decisions.

This is the first application for an LNG export licence that the NEB has considered since the de-regulation of the natural gas market in 1985. In approving the application, the National Energy Board satisfied itself that the quantity of gas to be exported does not exceed the amount required to meet foreseeable Canadian demand. The exported LNG will not only open new markets for Canadian gas production, but the ongoing development of shale gas resources will ultimately further increase the availability of natural gas for Canadians.

The Board also acknowledges the potential economic benefits associated with KM LNG’s project. These benefits include employment opportunities due to the development of the LNG terminal and the Pacific Trail pipeline.

Mustang Survival wins dry suit supply contract with U.S. Coast Guard.

M

ustang Survival was awarded a long term contract to supply the United States Coast Guard (USCG) with lightweight and heavy duty dry suits. The contract, with a ceiling value of $20 million dollars over five years, will provide USCG boat crews with Mustang’s new Sentinel™ Series of dry suits for use in a variety of mission-critical operations including search and rescue, maritime law enforcement and maintaining Aids To Navigation.

Mustang Survival’s Sentinel™ Series is the newest and most innovative dry suit platform designed with exclusive Mobility Based Sizing™ and Rapid Repair Technology™. These waterproof and breathable constant-wear dry suits were designed using extensive end-user 6 BC Shipping News November 2011

inputs, anthropometrics sizing data, advanced materials and new production techniques.

With Mobility Based Sizing™, users in demanding operations can be fitted for a near custom dry suit that reduces bulk while increasing range of motion. This new industry-leading sizing system offers users semi-custom suits without the expensive custom price tags or long lead times.

With Rapid Repair Technology™, users can quickly and easily self-repair minor leaks and replace neck and wrist seals onsite and have the suit ready for use in less than an hour.

The Sentinel™ Series of dry suits will be commercially available by late 2011.

NEWS BRIEFS Thordon Bearings Appoints Mill Log Marine Distributors in B.C.

M

ill Log Marine of Burnaby, B.C. has been appointed the authorized distributor in British Columbia for Canadian manufacturer, Thordon Bearings, replacing W.L. Marine. With this agreement, Mill Log Marine becomes the stocking distributor for the world’s largest manufacturer of non-metallic oil and grease-free bearing systems.

“Mill Log Marine’s reputation, expertise and knowledge of the marine market gives us great confidence in knowing that our products will be strongly supported in western Canada”, said Jan Willem de Jong, Commercial Director for Thordon Bearings. “By partnering with Mill Log Marine, we can now offer our British Columbia customers an outstanding level of service while offering the highest quality and most environmentally friendly bearing solutions in the marine, clean power generation and industrial markets.”

Don Lindsey, Director of Sales & Marketing for Mill Log Marine stated: “Thordon Bearings produces high quality, water lubricated rudder and

propellor shaft bearings specifically for the workboat and commercial vessel market. With working applications in extreme operating conditions being used by the U.S. and Canadian Navies, cruise ships, bulk carriers, tankers and workboat ship owners across the globe, we are excited to bring these bearings to this region. Furthermore, this product eliminates the need for petroleumbased products for lubrication, which helps the environment and increases the life of the bearing.”

Thordon Bearings Inc. designs and manufactures a complete range of polymer bearing and shaftline products for the marine, clean power generation, pump, offshore and industrial markets. Thordon’s strong and recognizable global brand is known for high quality and superior performance, eliminating oil and grease from bearing applications in ships, hydro-turbines, vertical pumps and many other applications. Products are sold through an extensive factory trained distribution network that has been established in over 70 countries to service the international customer base.

LETTER TO THE EDITOR Dear Jane, After observing your note, Captain Yousefi‘s letter and Captain Brown’s article, in the latest BCSN issue, once again the hypocrite of environmental policy was brought into my view.

I just can’t believe how the point is missed that in the present global economy, the source of pollution is consumption not production. Should we stop driving our internal combustion engine cars and taking hot showers and flying for vacations and many other modern activities, there will not be any tanker calling any port.

Ignoring all the activities I just mentioned, rather promoting them for job creation and at the same time calling for tanker ban, is not really addressing the problem of pollution but the location of the production.

Regards, Captain Hossein J Kamali

TSB recommends safety improvements to sail training vessels.

F

ollowing its investigation into the loss of the sail training vessel Concordia, the Transportation Safety Board (TSB) is calling for change both domestically and internationally.

“The TSB found the sail training vessel Concordia was lost in a squall because the risk of a knockdown was not understood,” said Jonathan Seymour, Member of the Board.

“Consequently, appropriate action — such as reducing sail or changing course — was not taken before the squall hit. With doors, windows and vents left open, water flooded into the hull and the vessel capsized.”

“Every watchkeeper must understand how their vessel will behave in deteriorating weather,” added Seymour.

The Board’s investigation identified two important safety issues.

Canadian sail training vessels are required to have comprehensive stability guidance onboard, but there is no requirement for watchkeepers to be trained in its use. The first recommendation is for this training to be mandatory.

Additionally, because sail training is international in scope, the Board’s second recommendation is for Transport Canada to lead the way towards international standards for stability guidance and training.

Unlike Canada, some jurisdictions do not require comprehensive stability guidance.

“All 64 people aboard the Concordia survived this harrowing experience,” noted Seymour, “but we need to make sure young people are never again put in this position.”

November 2011 BC Shipping News 7

INDUSTRY traffic The UK P&I Club reveals its concerns about ECDIS.

T

he UK P&I Club recently completed a a series of three short articles which provide a user friendly guide to the mystery surrounding electronic chart display and information systems (ECDIS). These have now been consolidated into a 16-page booklet “ECDIS — Navigational and claims issues”.

While the booklet is not really intended for navigators, it should, the Club

believes, be of great value to anyone in shipping who needs to be aware of what ECDIS is and the implications of any ECDIS-associated errors and oversights.

All three articles can be downloaded individually or in the 16-page combined format from the Loss Prevention section of the UK P&I Club website http:// www.ukpandi.com.

Whilst welcoming the new mandatory requirement to have ECDIS as the

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

Tel: 250.380.0436 Cell: 250.858.8036 Fax: 250.380.0437 8 BC Shipping News November 2011

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

principal means of navigation on board merchant vessels, the Club is warning ship owners and managers about potential problems associated with its implementation.

Karl Lumbers, a Director of Thomas Miller P&I Ltd, Managers of the UK P&I Club, states: “ECDIS is not an easy ride.

There are still thousands of seafarers who will need to be trained and safety management systems will need to be revised.

It will in many cases restrict the flexibility owners/managers currently enjoy to switch officers between the different ships in their fleets and we have seen already that Port State Control inspectors will be looking closely at ships’ ECDIS arrangements to ensure compliance.

“There is a sharp learning curve ahead and if you haven’t yet really started on the journey, you will have to move very quickly indeed. The risk of a vessel detention for non-compliance is very real.”

Lumbers also points out that risks will need careful and meticulous management: “Although ECDIS should make the navigation of ships so much easier, we expect that its incorrect use will feature regularly in accident inquiries.

Humans tend to put a great deal of trust on machines but machines sometimes fail. There will still be a need to look out of the bridge windows regularly.

“Of course, when an incident does occur, we know that investigators look first at data records. It is imperative that data is stored safely. If it can’t be found, there is an immediate suspicion of guilt. Who is going to believe that the data was erased accidentally?”

The UKP&I Club stresses that it is very much in favour of ECDIS becoming a fixture on ships’ bridges, it’s just that like all things new, it comes with a learning curve. It is important that both those on the bridge and those back in the office are alert to this fact and use every means possible to have the right management systems in place.

NEWS BRIEFS Seaspan Shipyards wins NSPS non-combat contract.

E

xecutives and yard workers alike were all smiles at the news that Seaspan Marine Corporation had been awarded the non-combat vessel contract of the National Shipbuilding Procurement Strategy (NSPS).

The $8 billion program will not only inject billions into the local economy, but it will create an average of 4,000 jobs over the next eight years. In addition, the federal government has plans for a further 17 vessels which should fall under the non-combat package.

“While we felt we were more than capable of building the combat ships, we are honoured to have been chosen to provide non-combat vessels for the men and women of the Royal Canadian Navy and Coast Guard,” said Jonathan Whitworth, Seaspan CEO. “We have a long and established track record of working with the Canadian Navy and Coast Guard in building ships on time and on budget. Seaspan is committed to returning B.C.’s shipbuilding industry to its once-thriving roots. This award is a direct result of that commitment. We will deliver world-class ships to Canada.

“We have been ‘in it to win it’ and we haven’t been alone,” said Jonathan. “We couldn’t have won without the hard work and dedication of the team who worked tirelessly over the last 18 months to compile the bid or the many supporters who stepped up to assist including the Government of B.C., our three municipalities, local First Nations, shipyard unions and teaming partners from across Canada. We thank all of them for their support and also thank the federal government for the confidence they’ve shown in Seaspan and the B.C. shipbuilding industry to provide the best value.”

Although planning will begin immediately, construction on the new vessels will not likely start until late 2012.

In the meantime, over $150 million worth of infrastructure will be built at Seaspan’s shipyards in North Vancouver and Victoria, while vessel design work is being finalized.

Big smiles...CEO Jonathan Whitworth and Premier Christy Clark share the news of the announcement.

Careers, not just jobs...Seaspan Marine’s workforce can plan on being employed for a very long time.

Congratulations Seaspan Marine Corporation and partners!

Well done...

On behalf of the staff and readers of BC Shipping News.

November 2011 BC Shipping News 9

INDUSTRY INSIGHT

Leadership on the West Coast: A Canadian asset.

Rear-Admiral Nigel Greenwood, Commander Maritime Forces Pacific, Commander Joint Task Force Pacific, Commander Search and Rescue Pacific and Regional Commander Royal Canadian Cadet Corps, looks at the many facets of naval operations on the West Coast and inadvertently reveals one of Canada’s best assets — his leadership.

R

ear-Admiral Nigel Greenwood, Commander Maritime Forces Pacific, Royal Canadian Navy, carries the great responsibility of providing leadership for the thousands of military and civilian personnel here on the West Coast who are dedicated to ensuring the safety and security of Canadians. This one crowning achievement of a life-long military career would be considered more than enough of a contribution for the average Canadian.

However, as we learn through our interview with the Admiral, the numerous ways in which his leadership extends beyond the Navy and beyond our borders makes RAdm Greenwood a true Canadian asset of the finest calibre. His insights into the strength of Canada and of the Canadian Forces, makes for a fascinating read.

BCSN: Could you provide some context to the role of MARPAC today versus that of say, 10 years ago or even 50 years ago?

10 BC Shipping News November 2011

NG: Fifty years ago we were deep into the Cold War while 10 years ago — with the Twin Towers and 911 — we saw a totally different construct.

The real shift actually happened in about 1989 with the dissolution of the Soviet Union. We were already starting to change our operational focus then and subsequently, we had the Gulf War (1990-91) in which the Canadian Navy was very much involved. Since 1991, we’ve had a presence in the Persian Gulf and the Gulf of Oman — most recently, the focus there has been around piracy — but we’ve had a presence in the Middle East area more or less continuously since the early ‘90s.

In terms of the fleet, there was a big shift from the Cold War navy of, largely speaking, steam-powered destroyer escorts and helicopter-capable destroyers, to the mid-70s when we launched four gas turbine-powered destroyers with a very different command and control system. Those vessels were modernized

in the mid-90s and joined by the new frigates (I say new as we still tend to think of them that way but they’re actually mid-life now and in the midst of a modernization program). Those two classes of ships were the real steps forward from the Cold War fleet. The operational focus shifted from just contributing ships to a naval front in a cold war scenario to having a composite Canadian Task Group that could be deployed in support of Canadian interests worldwide.

BCSN: Looking at the number of maritime issues today — Arctic sovereignty, piracy, illegal immigration, drug trafficking, Asia-Pacific Rim politics, etc. — are there any which are more prevalent now than in the past?

NG: All of those things you’ve mentioned are the kinds of things that we’ve always done. The opportunities for naval engagement and operations span a broad spectrum from safety-oriented tasks (e.g., search and rescue) through

INDUSTRY INSIGHT to security-oriented tasks, (e.g., sovereignty patrols, aid to law enforcement agencies for drug smuggling and illegal immigration) and while we are capable of assisting with all of these, they are not our raison d’etre. Our main focus lies in having forces that can be mobilized in defence of the country against a significant military threat.

Much of our day-to-day operations will include these safety or security-oriented tasks — for example, one of my roles is as the commander for the Search and Rescue Region comprising B.C., the Yukon and our seaway approaches to the west. We work in conjunction with the Canadian Air Force and the Canadian Coast Guard and in very close co-operation with our partners to the north and south, Districts 17 and 13 of the U.S. Coast Guard. The sovereignty piece is addressed on a continuing basis with our maritime domain awareness which is a continuing program of surveillance of our maritime approaches.

We work with our government partners — Transport Canada, Coast Guard, for example — to determine if there is a threat to Canadian sovereignty or to Canadian safety — both physical and environmental. So there’s a very cooperative element to many of our tasks.

By necessity, MARPAC must work with a number of agencies — Transport Canada, CCG, RCMP, CSIS and CBSA — who contribute information from their different departmental perspectives and have an interest in maritime traffic and law enforcement. This is done through the Maritime Security Ops Centre here on the base.

We also interact closely with provincial authorities related to the safety spectrum by co-ordinating contingency planning for disaster assistance. I have responsibility for the Canadian Forces in B.C. to render assistance to provincial or federal authorities in the terrestrial domain. I’m the commander for the Joint Task Force Pacific so I have a staff that looks at the land domain and are

Rising through the ranks: Sub-Lieutenant Greenwood on HMCS Annapolis, 1981. involved in contingency planning. They interface with their colleagues in provincial preparedness for such things as flooding, avalanche control, firefighting or even earthquake and tsunami events.

BCSN: Looking at international cooperation, what is Canada’s current role and extent of participation in joint operations?

NG: Co-operation at sea is the heart and soul of what navies do. Although we have the capacity to deploy a Canadian Task Group that could operate independently in defence of Canada’s interests globally, for the large part, what we do internationally is in co-operation

with our defence partners. One of the great advantages of navies is the facility for interacting at sea through multinational tactics and communication in order to co-operate with other vessels in a fairly ad hoc basis. A good example is the recent operations with Russian and Chinese forces in support of counterpiracy efforts where, although they’re not regular partners and we don’t have the highest levels of classified communications, there are ways in fact that you can communicate and co-operate.

We exercise primarily with the U.S. and then our NATO partners — good examples include recent experiences

Change of command: RAdm Greenwood, seen shaking hands with RAdm Tyrone Pile, as LGen Walter Semianiw and VAdm Dean McFadden watch.

November 2011 BC Shipping News 11

INDUSTRY INSIGHT with counter-piracy operations in Somalia; HMCS Vancouver’s participation in operations off Libya; HMCS Ottawa’s participation this past summer in exercises in the Pacific with U.S. and Australian forces and then later with Korean and Japanese vessels; and HMCS Algonquin which is participating in counter-narcotics operations off the coast of Central America.

BCSN: Looking at some specific issues, what is the Navy’s role in combatting piracy?

NG: Piracy is a big issue for the seafaring community and has a serious cost to global maritime trade — it is a law enforcement issue and something that, while we do engage frequently as we have ships in the area, is not a top of mind priority for the Navy. One of

our fundamental roles as a navy is to aid multi-national maritime forces in helping to protect shipping through deterrence and disruption of piracy efforts.

But that’s just one example of the value navies bring in the protection of shipping and has to be placed alongside the other priorities for navies and armed forces.

Through the government’s direction and policy, we are fundamentally focused on a “Canada First” defence strategy. Firstly, we consider Canadian safety, security and sovereignty in a defence role, then partnering with our closest neighbours for defence of North America and then looking beyond that at ways in which we can contribute to international peace and security. That’s where we get engaged in things such as

On the left, no wait, on the right...RAdm Nigel Greenwood with brother Richard, also a Rear-Admiral (in 2005 as Captains at the Annual Review of the Powell River Senior Cadet Corps).

12 BC Shipping News November 2011

operations off Libya or in support of operations in Afghanistan as well as the occasional piracy incident. So Canada first, then North America and then the rest of the world.

BCSN: And Arctic sovereignty?

NG: Principal and foremost among the projects within the National Shipbuilding Procurement Strategy (NSPS) will be the Arctic Offshore Patrol Ship which will restore to the Navy, for the first time since the mid50s, the ability to go into the ice with a ship constructed and configured for that purpose. This will increase the capacity of the federal fleet to patrol the North during the navigational season in which, by virtue of climate change, we’re seeing more and more traffic.

BCSN: What about the increase in naval capacities in Asia-Pacific countries over the past decade?

NG: Some of those countries have defensive needs that are much more stark than Canada’s. South Korea, for example, with their very tense and unresolved war with their northern neighbour. What you’re also seeing is other countries awakening to the value of sea power and seeing more of their interests on the seas.

Consider China for example — the shift from being a fundamentally continental power with an insular perspective to recognizing that a lot of trade comes by sea, both imports and exports. This is not just a huge part of her economy but a huge part of the integration of her economy with the western world so she sees a greater stake in the free movement of trade. Added to that is an intensification of ocean politics where interfaces with China’s maritime neighbours touch on disputed areas of potential energy sources under the sea. The countries that surround the South China Sea particularly are looking to extend their claim of Exclusive Economic Zones and this is intensified through the unequal power of the competing nations and the fact that it’s a geographically complex area in

INDUSTRY INSIGHT terms of minor islands and shoals which are being used to stake claims under the UN Convention of the Law of the Sea. It’s becoming a contest of maritime law and politics of the ocean and a lot of people in that area are seeing that their own interests are further advanced by having strong naval capabilities to back up their claim.

BCSN: Turning to the economy, how is the Navy faring in the current economic volatility?

NG: We realize that, as a federal government department, and one that comprises 20 per cent of federal discretionary spending, we’re always going to be a large target when it comes to making cuts. We further realize that the government has a very serious and necessary objective of deficit reduction. It’s part of a continuing cycle of change — we grow when times are good and then trim our sails when required.

While we continually look for sources of efficiency and continually examine our expenditures to make sure we’re spending the public purse responsibly and effectively, we’re in a situation now where we have to look much more seriously at reductions and that’s just part of the federal fiscal climate.

In terms of fleet maintenance and renewal, there are some aging platforms — our tankers, for example, are beyond 40 years old; likewise, the 280 Class of Destroyers. In the fullness of time, the NSPS will look to replace those. While we’re looking all the time for economies of scale, we know that there is a longterm plan to recapitalize the fleet and that will be moderated by what’s in the realm of possible. Beyond that, and on a day to day basis, we have to keep the focus on our main job which is to generate trained crews for ready ships and be able to put them to sea to serve the various interests of Canada.

One of the central tenets of the NSPS is to secure a national shipbuilding industry on a sustainable basis.

BCSN: In the past, it seems like federal fleet renewal has been the victim of boom and bust cycles. Do you see the NSPS changing that?

NG: Yes, definitely. One of the central tenets of the NSPS is to secure a national shipbuilding industry on a sustainable basis. We’re expecting the work to be metred out such that there is a

The Greenwood brothers (Nigel is on the left) — age 17 — in their fifth year at the Royal Canadian Cadet Corps in Powell River (1973).

continuous build process. As we get to the end of a long stream of production of CCG and Navy combat and non-combat configurations — and the largest part of that will be a replacement of the destroyers, followed by a replacement of the frigates as they come to the end of their modernized life span — there will be other work to start renewing the fleet from the beginning again. The NSPS should provide the opportunity to avoid that boom and bust cycle like the frigate program that was done in five years and then there was no work to follow. I hasten to add that this is my understanding of the purpose of NSPS beyond recapitalizing the Navy and CCG fleets.

BCSN: In terms of annual operating budget, could you provide a basic overview of how funds are allocated and what kinds of expenditures take priority?

NG: Annually, my operating budget is in the order of $200 million. On top of that, there is $300 million in military salaries plus funding from the Department of National Defence that contracts directly with industry to support a higher level of vessel maintenance such as the frigate refits as well as major projects to address aging infrastructure.

So, the total expenditure is upwards of $600 to $700 million per year.

The $200 million budget that I control is basically spent on the kinds of things required to keep the Navy here on the West Coast — civilian salaries, fuel, parts and ship repair, IT products, etc. While the fleet takes priority, there is quite a bit beyond that which requires upkeep — there’s the infrastructure and logistics support to the fleet, there’s the Fleet Maintenance Facility and operating and engineering support; there’s Headquarters, the Maritime Ops Centre and the Joint Rescue Co-ordination Centre (JRCC) and then aligned with that is the Maritime Security Ops Centre.

BCSN: Looking at the fleet, what are your priorities for recapitalization? Can November 2011 BC Shipping News 13

INDUSTRY INSIGHT you speak to the strengths and weaknesses of the current fleet?

NG: I don’t think of the fleet in terms of strongest or weakest. We recognize that some vessels are older than others and overdue for replacement. In some of these, the age constitutes a liability — for example, our tankers are still singlehull and there are certain areas where there are operational restrictions. That’s a vulnerability that we look forward to getting past with our replacement class of ships through the NSPS. The backbone of our fleet is the frigates. These are the general purpose ships, relatively modern and in the process of being modernized through a mid-life refit which will substantially upgrade their sensors, command and control systems and internal engineering management systems. The Halifax Class is about one and a half years into that process (the FELEX program or Halifax Class Modernization connoting slightly different aspects). All 12 frigates will undergo modernization — currently three are in the process with one more to follow and then they’ll be overlapped as we proceed through the mid part of this decade. By about 2018, we will be back to full strength.

The 280 Class Destroyers, which are approaching the end of their useful life, are an important part of our defensive capabilities in providing an umbrella of air defence for the Canadian Task Group as well as having the additional combination of communication facilities to serve as flagships and to carry the fleet command.

Important to the construct of the Canadian Task Group is the availability of the tankers to do the at-sea replenishment. They are full-service replenishment ships, not just fuel but also provisions, spare parts and helicopter maintenance and ammunition. They are a critical part of being able to sustain the Task Group whether it’s one ship or a group of ships in deployment overseas.

14 BC Shipping News November 2011

Also, there are the submarines. The capabilities of the submarines — not just the high-end combat capability and the deterrent value of a stealthy vessel that can operate close to shore or at a distance — give us value across the spectrum of operations, including sovereignty patrols close to home and deployment operations with foreign navies, but also in terms of training and the ability to train our surface ships in operations against submarines.

So those are the high-end platforms but the minor vessels are also important.

We have six Maritime Coastal Defence Vessels (MCDVs), largely crewed by reservists, and we have eight training vessels (ORCAs) which are critical to the initial training of people for service at sea and for being able to populate the fleet with sailors and officers that can go onto the combat ships as operators, technicians, watchkeepers, etc. We have to constantly remind ourselves that, no matter what the operation — whether its search and rescue, sovereignty patrols or foreign deployment — we need to make sure we have a trained fleet ready to serve.

We’re bound by directives from government to meet or exceed the standards of environmental compliance...

In terms of timing, provided the NSPS is announced soon, the Arctic Offshore Patrol Ship will be the first fleet renewal element delivered by about 2015. The Joint Support Ship (to replace the tanker) will be delivered by about 2017, and then later, in the early 2020s, we’ll see the replacement of the destroyers flowing through into a progressive replacement of frigates.

BCSN: Does the Navy follow IMO regulations for things like ship emissions or ballast control?

NG: Generally speaking, we’re subject to the same restrictions although not necessarily direct compliance with IMO

regulations. We’re bound by directives from government to meet or exceed the standards of environmental compliance, not just in our own regulations but those in foreign waters and we are required to conform with whichever is the higher standard. Each of the ships have, by class, a safety and environmental management system manual that lays out the necessary procedures for things like oil spill prevention; or the proper treatment and disposal of garbage; or on sensitivity to the marine environment during exercises, being particularly vigilant to mitigate effects in the presence of marine mammals.

We face much the same situation as any ship on the water with increasingly strict environmental regulations, especially in the Arctic because of the recognized vulnerability of its environment.

BCSN: Looking at naval personnel, are there any trends in demographics that are prevalent?

NG: Over my career, the big change has been women at sea. We started that process in the early ‘80s and expanded this to combat ships in the late ‘80s. All ships now have mixed gender crews and we don’t make any distinction. On average, about 15 per cent of personnel onboard are women. We find the percentage of women is slightly higher among officers but they are representative in all trades and ranks, right up to the Chief of Reserves and Cadets (a RAdm). Women are steadily making their way up the ranks to sea-going command positions — we have a female officer on the East Coast who has commanded a frigate. This is commensurate with the number of years that we’ve had women in sea-going positions so they’ve been able to work their way through the chain of command. Depending on how you entered the force and your individual talents, it takes anywhere from 17 to 25 years before you get to command a frigate.

Other demographic changes that we’re seeing reflect the growing diversity of

INDUSTRY INSIGHT Canada’s ethnicity. In some cases we’re bucking some cultural resistance and attitudes and we’re constantly looking for ways to showcase the military within those communities and present this as a professional area of work and career development that is highly respected in Canada.

We hold basic training and familiarity programs as well as apprenticeship programs and student co-op hires. For example, the RAVEN Aboriginal Youth Initiative allows First Nations youth to see what we do and to receive leadership and confidence training. It’s a program that has been really welcomed by the elders within First Nations communities as it gives young people the opportunity to be challenged and generate confidence. This kind of program provides a great advantage in interfacing with our native communities but more than that, just having the exposure to the military and what we’re about allows some to consider this as a career.

BCSN: How is the Navy addressing the surge in baby boomer retirements?

Are recruitment numbers enough now to meet future demand for anticipated naval responsibilities?

NG: We’re conscious of this fact regarding upcoming retirements and the military has instituted a little more flexibility in the age profile of our people.

We’re seeing people join the force, sometimes as a second career so it’s not unusual to have recruits who are 30, 40, or 50 years old, however that’s not an ideal demographic if we’re looking to train people for a full career. The best candidates are those people coming out of high school. We want to get them interested in education or training through the military and then allow them to have a full career of 35 to 40 years. We have been actively recruiting to make sure we have the inflow at the front end. Unlike industry, we can only recruit at the bottom, we can’t recruit laterally into advanced positions so that does constrain our current management.

On the civilian side, we employ a wide range of trades for fleet and base infrastructure maintenance. The make-up of the MARPAC workforce is quite different from the rest of the federal government because approximately 60 per cent of our jobs are operational — from specialized marine trades and engineering for ship repair to ship officers. The size of the civilian population is based on work requirements and financial allocations. We’ve seen some growth in the last five years but as part of the federal government’s deficit reduction plan, we may see changes to the size of the civilian workforce.

BCSN: In the private sector, senior personnel have remained in positions for so long that juniors haven’t been able to attain the kind of experience needed to take their place. What is the Navy’s experience with this?

NG: That’s one reason why we won’t relieve the compulsory retirement age altogether — we can’t afford to have people stay static in the most senior positions and block advancement. The

Navy has always been pretty good in moving personnel after two or three years in one position so that they can gain experience in other areas.

The navy is a very hierarchal organization. We continually move people around to provide for an escalation of responsibility and the variety of experience that comes along with that.

Sometimes that’s not the kind of domestic dislocation that people want and we can moderate that to a certain extent with junior people but with officers and senior ranks we require people to be mobile. Where that doesn’t match their chosen lifestyle or perhaps spousal employment, we see some attrition and we have to anticipate and manage that.

BCSN: What is the attrition rate for the Navy?

NG: The attrition rate, by industry standards is quite low — overall, about six per cent. Compared to some navies around the world who experience rates as high as 15 per cent, we consider ourselves well-positioned. We depend on a low attrition rate to have people who

RAdm Greenwood and Cdr Martin Teft, Commanding Officer of the HMCS Ottawa being welcomed to Incheon, South Korea during Westploy 2008.

November 2011 BC Shipping News 15

INDUSTRY INSIGHT have developed a high degree of expertise and experience and who are able to pass their knowledge on to the next generation. And not all attrition is a loss for us — although we don’t want the marine construction and shipbuilding industry to steal our best technicians, there is a bit of a symbiotic relationship with industry in respect to the work that gets done.

BCSN: Could you comment on the integration of naval personnel into the community here on Vancouver Island?

NG: We are very active in fundraising initiatives within the community for charitable events but also we have a huge number of people who volunteer for sports organizations and that sort of thing. It’s somewhere in the order of hundreds of thousands of volunteer hours. We definitely encourage our personnel to participate within the community.

We’re not just in the community, we are the community. That’s very important for us and in some ways, distinguishes us from other garrison locations...

While we have some private quarters here on the base, most of our folks live outside of the base and that’s by design. It allows sailors to get rooted in the community — to get to know their neighbours, build equity in their homes and maintain satisfactory spousal employment. We’re not just in the community, we are the community. That’s very important for us and in some ways, distinguishes us from other garrison locations in Canada where the military might be more separate.

The other aspect of our visibility and participation in the community comes from our cadet programs where we have upwards of 7,500 cadets and cadet instructor officers spread across the province in 81 communities with 130 corps, including Army, Navy and Air Forces.

16 BC Shipping News November 2011

The most pervasive military presence in B.C. is actually the cadets; and they’re visible in their communities and participate in many community events.

Indeed, the purpose of the cadets is not to recruit for the military but to build citizens for Canada. Much of what the cadets do counts for civic credits toward graduation. That’s a very strong program — something I experienced myself when I was young.

BCSN: What advice would you give to someone considering a career in the Navy?

NG: Start early. A career in the military should be long-term, well thoughtout and acted upon with strategic forethought. I strongly advise people who are still in school to look at our subsidized education programs. I think it’s tragic that people would see themselves through university or technical college and engender large student debt just to find out that they’re coming to us for a job afterward. Come to us first, let us pay for your education and give you a start in your chosen field of professional expertise. If you discover after a few years that it’s not for you, at least you’re well set up for success in life.

I think we have fabulous subsidized education programs through military college, universities and technical institutes. Obligations are five years of duty for a university degree and three years for a technical diploma through an institution like BCIT. More than that though, while you’re going to school, you are enrolled in the Forces — your tuition is paid and you draw a wage.

Once you graduate and gain some seniority in rank, you’re going to do fairly well on the pay scale. For example, consider someone who does a subsidized education program at a technical college — following graduation, either in their first year or soon after, they’ll be drawing an annual salary of $60,000. That’s a pretty decent start, especially considering that they don’t have any student debt to pay off.

The other advantage is the responsibilities and challenges you get very early in your career that aren’t necessarily offered through a career in the private sector. Some lieutenants are driving billion dollar ships which you just wouldn’t see in the private sector.

It still surprises me that our subsidized education program is not one of the most celebrated scholarships in Canada.

BCSN: Do you think this ties in with “maritime blindness” — a term used to describe a lack of awareness of the importance of the sea and in particular the Navy?

People are beginning to connect our national prosperity with the safe and timely conveyance of maritime trade.

NG: That’s a term that Vice-Admiral McFadden was fond of using and resonates with most of our naval allies as well.

I think the Naval Centennial helped Canada with this somewhat — there is a growing awareness among Canadians that we are a trading nation and inherently reliant upon the sea. People are beginning to connect our national prosperity with the safe and timely conveyance of maritime trade. It’s a continual effort of public communication to let people know our purpose — both at a high-level and on a day-to-day basis.

The Navy provides a continuing value for Canada that covers a comprehensive range of roles from safety to defence, both domestically and internationally.

It’s not just a matter of preparing for World War III — it’s the kind of constant value we provide in protecting Canadian sovereignty, monitoring ocean approaches, providing search and rescue as well as representing Canada in overseas exercises. We are very proud to be able to showcase the personnel talents, the professionalism and the exceptional technology that we have here in Canada to navies around the world.

BCSN

INDUSTRY INSIGHT About Rear-Admiral Nigel Greenwood

N

igel Greenwood was born in London, England and, at the age of five, moved to Powell River, British Columbia, where his parents still reside. He and twin brother, Richard, began their association with the Navy at the young age of 12. “I recall the first Tuesday in September after we had turned 12,” said RAdm Greenwood. “My Mom turned to my Dad, who was a school teacher and Cadet Officer at the time, and said ‘here, take these two with you’. My younger brother Kevin also pursued a military career.”

Following six years with the Royal Canadian Sea Cadet Corps, RAdm Greenwood attended Royal Roads Military College in Victoria, B.C., graduating with a Bachelor of Science in Physics and Oceanography. He served on HMC Ships Annapolis, Chignecto, Cowichan and Kootenay in his early military years as Bridge Watchkeeper, Anti-Submarine Air Controller and Destroyer Navigating Officer.

In 1987, on completion of the Combat Control Officer Course and promotion to Lt.-Cmdr, he joined HMCS Iroquois as Weapons Officer and later Combat Department Head. He later served as Executive Officer in HMC Ships Algonquin and Preserver and as Commanding Officer in HMCS Ottawa. Rear-Admiral Greenwood’s most recent sea-appointment was as Commander, Canadian Fleet Pacific from 2007 to 2009.

In between sea-postings, Rear-Admiral Greenwood served in a variety of positions ashore. These have included: Flag Lt to the Commander, Maritime Forces Pacific; exchange with the

USN’s Surface Warfare Development Group; Senior Naval Staff Officer at College militaire royale de St-Jean (CMR); miscellaneous duties with the Director General Programme Coordination in National Defence Headquar ters; Deputy Chief of Staff for Doctrine and Plans in Maritime Command HQ; Base Commander at CFB Halifax; Chief of Staff to the Commander Maritime Forces Pacific; and Director of Military Capability Management under the Chief of Force Development at NDHQ in Ottawa.

Rear-Admiral Greenwood’s professional education includes the Canadian Forces Command and Staff Course and the Executive Course of the Asia-Pacific Centre for Security Studies.

In 2006, he attended the Royal College of Defence Studies and obtained an MA in International Relations from King’s College London. He is a qualified Master Mariner, Member of the Nautical Institute, and Fellow of the Royal Institute of Navigation. The Rear-Admiral is married to Deborah and he is an avid motorcyclist, an occasional sailor, and a mediocre flautist.

Rear-Admiral Greenwood was appointed to his present rank in March 2009 and served as Assistant Chief of Maritime Staff until being appointed Commander Maritime Forces Pacific and Joint Task Force Pacific in August 2010. He also holds the titles of Commander of the Search and Rescue Pacific Region and Regional Commander of the Royal Canadian Cadet Corps.

RAdm Greenwood’s twin brother is also a Rear-Admiral and is stationed in Washington as a Canadian Defence Attaché. RAdm Greenwood’s younger brother Kevin retired at the rank of Captain and is now a Navigational Instructor at the Naval Officer Training Centre. Between the three brothers, they have contributed 100 years of service in the Royal Canadian Navy.

Recruiter and recruitees...Nigel with brother Richard and father Frank in 1969.

For information on the Royal Canadian Navy Maritime Forces Pacific, please visit: www.marpac.ca.

November 2011 BC Shipping News 17

“Navy Day” (May 4, 2010): MARPAC members parade through the streets of Victoria, symbolically exercising their right to the freedom of the city.

Freedom of the City is one of the most prized honours that a community can bestow upon a military unit. It signifies the respect, affection and esteem held for the unit by the citizenry and grants that unit the privilege of marching through the community bearing arms, with drums beating and Colours flying. MARPAC was previously granted Freedom of the City of Victoria in 1985 and in the Navy’s Centennial year, elected to exercise that right.

Photo credit: MCpl Daniel Mallette, Imaging Services, CFB Esquimalt.

18 BC Shipping News November 2011

RAY DYKES

Esquimalt Naval Base: Lifeblood of the region.

By Ray Dykes

I

Government and the Vancouver Island Health Authority.

As well, the base, in conjunction with the support of the Military Family Support Centre, is responsible for supporting military families, with 2,600 Canadian Forces spouses and over 3,000 children in the area.

You’ll find base personnel and their spouses as local hockey and

soccer coaches and giving their time and talents as volunteers in a wide variety of community causes. Their impact on the area is hugely helpful and apparent and they have become part of the fabric of the Esquimalt community.

The naval base has been in Esquimalt in some form or another since the Royal Navy first established there in 1855 in a collection of hospital huts intended

Photo credit: MCpl Daniel Mallette

t comes as no surprise that the Royal Canadian Navy and its CFB Esquimalt are key to the health of the region on many fronts, from local shipyards to the continuing success of the neighbourhood Tim Hortons.

The base, which is located in the Township of Esquimalt just west of Victoria, is home to the Pacific Naval Fleet with its paramount mission to provide peace, security and stability for the region. In fact, getting the powers that be at the base to open up about their value to the community doesn’t come easily.

“Don’t point to the economic value to the Canadian people,” one base officer says. “Instead, explain how our role is to defend Canada and Canadian interests abroad.”

With that out of the way, a study of CFB Esquimalt and its impact on the region is still eye opening.

It provides steady pay packets to 4,000 regular and reserve force military personnel and over 2,000 civilians, making it the third largest employer in the Capital Regional District behind the Provincial

May 6, 2009, Victoria, B.C. — HMCS Chicoutimi, being rolled off MV Tern at the Esquimalt Graving Dock adjacent to CFB Esquimalt.

November 2011 BC Shipping News 19

RAY DYKES to care for British sailors and soldiers wounded in the Crimean War naval actions on Russia’s Kamchatka Peninsula.

The graving dock was a prerequisite to British Columbia’s entrance into Canadian Confederation and its completion for a staggering $1.1 million...

The Royal Navy began building a graving dock in 1876 capable of serving the largest vessels in the fleet. The graving dock was a prerequisite to British Columbia’s entrance into Canadian Confederation and its completion for a staggering $1.1 million wasn’t without difficulty — two companies went bankrupt and one provincial government was ousted during its construction.

The graving dock was good news in other ways, however, and strengthened the Royal Navy’s capabilities in the Pacific and was a boost to growth in the then village of Esquimalt. The dock handled an average of 21 ships a year from 1887 through 1927. By 1924, the Canadian Government had built its own Esquimalt Graving Dock, which still exists today. The Royal Navy dock is still in use by the Fleet Maintenance Facility for work on frigate, destroyer and, recently, submarine maintenance.

“They are part of the culture of our community and we cannot think of doing anything without including them in our celebration...”

Known as a “significant enabler” in both a military and community sense, CFB Esquimalt’s tentacles spread widely through the region.

Esquimalt Mayor, Barbara Desjardins, says there is no bigger contributor to the township’s tax base than CFB Esquimalt. The township receives about 20 BC Shipping News November 2011

40 per cent of its total revenues from the base in the form of payments in lieu of taxes.

“They shop here, they spend dollars here and we are grateful to have them,” says the Mayor. “A lot of them live and work here, you just have to see the number of military uniforms in the local drycleaners to realize how much we benefit.”

The township will be 100 years old in 2012 and celebrating the milestone will revolve around co-operation with and from the base and its personnel. “They are part of the culture of our community and we cannot think of doing anything without including them in our celebration,” says Mayor Desjardins.

...projects include a new base Fire Hall and Emergency Operations Centre worth $20 million and providing 100 construction jobs.

On a sadder note, the most recent HMCS Equimalt was the last ship sunk in the Second World War, falling to a German U-Boat just outside Halifax within hours of the war being declared over. “We honour the lives lost in that tragedy every year,” says the Mayor and there’s a commemorative cairn near City Hall.

But, just how much the does the naval base spend in the community and its surroundings? Given employee salaries alone are $344 million a year, the answer is massive amounts with the total bill in the region representing a $540 million injection into the local economy each year.

The list of products purchased by CFB Esquimalt is impressive: • $26 million for fuel for the vessel fleet • $6.7 million on food and rations • $6 million on parts and repairs to the fleet • $2.1 million on IT products • $395,000 for exercise equipment

• $280,000 on tailoring for military uniforms On the vehicle side alone, the base spends $1.6 million on cars and heavy equipment each year, plus another $750,000 on repairs and $144,000 on parts, and contracting out for tools, tires and batteries.

And it’s not likely that base spending will stop anytime soon. The Department of National Defence objective for CFB Esquimalt is to replace 50 per cent of the military’s aging infrastructure over the next 20 years.

Current major construction projects include a new base Fire Hall and Emergency Operations Centre worth $20 million and providing 100 construction jobs.

Then there’s the new 443 Helicopter Squadron hangar worth $100 million and 800 jobs out in neighbouring Saanich near Victoria Airport. And a $3.8 million Sonar Workshop is under construction on the base with another 21 full-time jobs.

No wonder the Esquimalt Chamber of Commerce calls CFB Esquimalt “the heart of this community.”

However, the granddaddy of them all is the on-going complete renewal of the Fleet Maintenance Facility, FMF Cape Breton, a project that began back in 1998 and, when finished, will be the second largest industrial facility of its type next to Seattle’s Boeing complex.

The old FMF is a series of disconnected buildings on the base, but an exact enddate to the huge new building hasn’t yet been announced. Suffice it to say that it is being planned in modules and is playing a crucial role in training apprentices in marine trades as it progresses.

It’s an impressive list. No wonder the Esquimalt Chamber of Commerce calls CFB Esquimalt “the heart of this community.” Chamber President Dino Fiorin, who is a retired naval officer, says a huge

RAY DYKES Photo credit: Sgt Craig Fiander, MARPAC Imaging Services

percentage of business in the community is related to the base and its activities.

The chamber boasts 104 businesses as members and with the base represented on the chamber’s Board of Directors, the annual general meeting is often held in the base Ward Room.

And even if all base personnel don’t live in the township, there’s still a huge temporary invasion every day that helps local businesses prosper, Fiorin points out.

Victoria Shipyards General Manager, Malcolm Barker, knows how crucial working to meet the DND and its naval base needs is to business success...

Outside the base, other businesses flourish in supporting naval objectives.

Few rely more heavily on CFB Esquimalt or can provide a wider variety of services than the Victoria Shipyards Ltd. (VSL), situated next to the Esquimalt Graving Dock and adjacent to the base.

Victoria Shipyards General Manager, Malcolm Barker, knows how crucial working to meet the DND and its naval base needs is to business success for his

October 23, 2010, Duntze Head, Esquimalt, B.C. — HMCS Algonquin passes in review for Captain (Navy) Paul Dempsey, Deputy Commander Canadian Fleet Pacific, other dignitaries and family members as she enters Esquimalt Harbour. busy facility and says 80 per cent of the yard’s work is directly related to FMF Cape Breton at CFB Esquimalt.

Part of the Seaspan Group, Victoria Shipyards has steady work through 2016 thanks to its involvement in such opportunities as the Victoria In Service Support Contract (VISSC) looking after the needs of two of the Royal Canadian Navy’s four-strong submarine fleet

using a custom-built facility; and the Frigate Life Extension (FELEX) project providing upgrades to the Navy’s surface fleet. Further long-term work could build on current levels if Seaspan is successful in winning part of the NSPS major shipbuilding and repair work program now being decided in Ottawa.

Barker says right now the work from CFB Esquimalt is key to the long-term

November 2011 BC Shipping News 21

viability of the marine industry in Victoria, which is made up of the naval base, graving dock and a number of private sector companies. It’s a relationship he sees as beneficial to both industry and the DND. “Thankfully, the staff and workforce at the base has been extremely co-operative in working with us at Victoria Shipyards,” says Barker. “There are many instances where we work sideby-side as business partners, for example on the FELEX and VISSC programs.”

For the Victoria shipyard, the base means business and steady employment, which attracts more and more people into the region. Currently, VSL employs between 550 to 600 people with 125 support staff. This number grows to 750 - 800 people during the cruise ship season. About a decade ago the workforce was 50 per cent of what it is now.

Of the relationship with DND and its West Coast base, Barker says it’s not simply a business arrangement.

“We actually have many common goals, two of the most important being to ensure the safety and sustainability of our workforce,” adds Barker.

For the Victoria shipyard, the base means business and steady employment, which attracts more and more people into the region.

“The steady work from DND/CFB Esquimalt enabled our shipyards to expand our safety programs, further improving our safety record.”

In 2005, VSL had an injury frequency rate of 10.82. As of October 2011, the yards are currently at 6.78, an overall

improvement, according to Barker, of 47 per cent and a significant accomplishment of which to be proud.

“We also worked together and supported the creation of the Industrial Marine Training and Applied Research Centre (IMTARC) — a training facility to help ensure that qualified, motivated and trained trades people enter and stay in our industry,” he adds.

The reliance of the community and industry on DND and CFB Esquimalt works both ways. Perhaps Barker says it best with: “We realize that working together we can be so much more than when apart.”

Ray Dykes is a former journalist who has worked his way around the world.

He is now based in Nanaimo as a writer/ photographer.

Ray can be reached at prplus@shaw.ca.

Photo credit: Cpl Roderick Hopp, Imaging Services, CFB Esquimalt

June 12, 2010, Victoria, B.C. — HMCS Algonquin prepares to debark for the International Fleet Review with Her Excellency, the Right Honourable Michaëlle Jean, Governor General and Commander-in-Chief of the Canadian Forces, onboard. Participating in the review are naval warships from the United States, Australia, New Zealand, Japan and France.

22 BC Shipping News November 2011

MISSION TO SEAfarers

Significant funds raised for new facility at Roberts Bank terminal.

T

wo events in September provided an impressive total of $65,000 for the Mission to Seafarers. The funds secure plans to build a new facility for seafarers at Roberts Bank terminal.

The Fourth Annual Mission’s Cycling for Seafarers In recent times, according to several news articles, cycling is in the process of becoming the new golf for corporations and executives who are seeking team building while encouraging a more active lifestyle. If participation at this year’s Cycling for Seafarers event is any indication, the journalists who made that claim may well be onto something.

Started as a way to pay for Missionspecific cycling jerseys, in an attempt to get brand recognition out amongst the Vancouver population, the Cycling for Seafarers ride has grown from a pilot project with nine riders to an annual event, this year hosting 64 participants.

Two routes, both leaving from the Mission and culminating with an exhilarating descent into Belcarra Park, offered participants either a 40 km or a 100 km ride.

Starting with rather inclement weather, the day improved until the sun broke through and offered its drying rays to the festive day.

Once at Belcarra, boats from the Royal Vancouver Yacht Club gave bikers a boat ride back to Tymac’s Main Street Dock. Seaspan arrived shortly thereafter, transporting all of the bicycles

back. With a short walk or ride, participants headed back to the Mission for a Salmon barbecue, courtesy of Canadian Fishing Company. Enjoying food and drink with friends and volunteers — all the while listening to the tunes of the Colin Parker Quartet — made for a wellrounded day.

Tremendously successful, the event raised over $28,000 for the Mission and its seafarers. Kudos to all who participated: your energy was infectious, your charisma inspiring and your perseverance unwavering — congratulations to all participants and volunteers! Next year’s event — Saturday, September 15, 2012!

World Maritime Day Banquet

Don MacInnes and Bonnie Gee from the Chamber of Shipping of B.C.

The who’s who of the B.C. shipping industry were present at the Royal Vancouver Yacht Club on September 21, 2011 to celebrate World Maritime Day and World Mariners’ Week. The banquet, hosted by the Chamber of Shipping of British Columbia and the Mission to Seafarers, provided a number of opportunities for guests to participate in fundraising for the Roberts Bank facility.

Participants in Cycling for Seafarers started at the Flying Angel Club and ended in Belcarra Park where Seaspan tugs helped transport the bikes back to Tymac’s Main Street Dock.

November 2011 BC Shipping News 23

MISSION TO SEAFARERS

Mission to Seafarer staff: Joyce and Peter Goodwin with Fr. John Eason.

Captain Stephen Brown, Chamber of Shipping of British Columbia, with David Jackson, Canadian Sea Marshals.

Richard Chappell, Chairman of the Chamber of Shipping of British Columbia presents Reverend Nick Parker, Senior Port Chaplain of the Mission to Seafarers, with a cheque for $10,000.

24 BC Shipping News November 2011

Before introducing Reverend Nick Parker, Senior Port Chaplain for the Mission in Vancouver, Captain Stephen Brown, President of the Chamber, welcomed guests of special note, including Captain Bert Bjorndal, Mission to Seafarers’ Chairperson; Kevin Obermeyer, President & CEO, Pacific Pilotage Authority; Captain Jamie Marshall, Vice President, Fleet Operations and Training, BC Ferries Corporation; Robert Hedley, Senior Vice President, Seaspan Marine Corporation; Captain John Clarkson, Associate Dean, School of Transportation and Head of the Marine Campus of BCIT; and many, many other notable shipping industry executives. Captain Brown also gave a special welcome to BCIT cadets who were in attendance at the evening’s event.

Reverend Parker spoke to attendees of the need to engage seafarers in our midst. “People are generally ignorant of the struggles seafarers face,” said Parker and he provided some examples of his experiences with seafarers who were separated from families and home. He noted that, in addition to the $28,000 raised through Cycling for Seafarers, funds from tonight’s event would be used to establish a new set of trailers at the Roberts Bank terminal.

Captain Graham Westgarth, Teekay Shipping and InterTanko; Kaity Arsoniadis-Stein, International Ship Owners Alliance of Canada and Arthur Bowring, Hong Kong Ship Owners Association.

MISSION TO SEAFARERS

Mission to Seafarer staff: Barb Andrew and Kathryn Murray.

More photos online at www.bcshippingnews.com.

Following Reverend Parker’s speech, keynote speaker Captain Graham Westgarth, Chair of InterTanko and Executive Vice President of Innovation, Technology and Projects at Teekay Shipping, provided insights into the issue of piracy, outlining the severity of the problem; the implications on the global economy; and the steps needed to address the issue. “Seafarers today are responsible for the movement of eight billion tonnes of goods transferred on a global basis,” noted Captain Westgarth.

“Despite deployment of additional assets to fight piracy, there has been no improvement to the situation. In fact, seeing that seven people have been killed in 2011, the problem only seems to be getting worse — both in severity and area under threat which now spans across the North Indian Ocean.”

Following Captain Westgarth’s presentation, special guest Arthur Bowring, Managing Director of the Hong Kong Shipowners Association, reinforced the message of the severity of piracy on seafarers. To the cadets present from the BCIT Marine Campus who were on hand, he had a strong message: “Choose your employer very carefully,” said Bowring as he noted that some ship owners were now considering whether it would be easier to abandon ships rather than pay

ransoms. “This would be a horrible development,” said Bowering. Mr. Bowring also tied in the necessity of supporting organizations such as the Mission to Seafarers, citing the important support such organizations provided.

In addition to raffle prizes and live auction items — including the one-of-akind Reverend Parker bobble-head — the Mission to Seafarers was the recipient of a $10,000 cheque presented to Reverend Parker by Chairman of the Chamber of Shippng of British Columbia, Richard Chappell. Helping with the live auction were Terry Duggan with Finning Canada, and John Beckett with the Federal Employers Transportation, Communications Organization. Duggan and Beckett were highly effective in encouraging attendees to increase their bids on items such as a seven-day Mexican Riviera or Caribbean cruise, a brass porthole from the Queen of Tsawwassen and an original oil painting by Frank Alford.

The Mission succeeded in raising $37,000 during the night and, importantly, raised awareness of the needs of seafarers.

For more information on the Mission to Seafarers, their work and how you can get involved, please visit: www. flyingangel.ca. BCSN

Life-like...one of the unique live auctionitems: the Reverend Nick Parker bobble-head.

November 2011 BC Shipping News 25

RCN PACIFIC FLEET GUIDE halifax class patrol frigates

HMCS Vancouver Commissioned: 1993 Builder: Saint John Shipbuilding (Saint John, N.B.) Motto: Semper Vigilans (Ever on guard)

General characteristics

Typical armament

LOA: 134 m Beam: 16 m Draft: 4.9 m Displacement: 4,750 t Crew capacity: 225 Speed: 29+ knots Propulsion: 2 GE LM 2500 Gas Turbines 1 Pielstick Model PA6 20 cylinder cruise diesel Electrical power: 4 MotorenWerke Mannheim AG generators (850 kW each) Aircraft capability: 1 CH124 Sea King

Guns: 57-mm MK2 Bofors (dual purpose); phalanx 20-mm Close in Weapons System (CIWS); 6 x .50-calibre machine-guns Missiles: 16 Sea Sparrow Vertical Launch (SAMs) Eight Harpoon (SSMs) Torpedoes: MK46 MOD 5 via MK32 torpedo tubes or

by Sea King Helicopter Countermeasures: 4 x 6-Barrel Chaff/Infra Red Launchers Towed Acoustic Decoy

HMCS Calgary Commissioned: 1995 Builder: Marine Industries Ltd. (Lauzon, Que.) Motto: Onward

HMCS Regina Commissioned: 1994 Builder: MIL/Davie Ltd. (Lauzon, Que.) Motto: Floreat Regina (Let Regina flourish)

HMCS Ottawa Commissioned: 1996 Builder: Saint John Shipbuilding (Saint John, N.B.) Motto: Egor Beofor (Ocean Beaver)

HMCS Winnipeg Commissioned: 1995 Builder: Saint John Shipbuilding (Saint John, N.B.) Motto: Unum cum virtute multorum (One with the strength of many)

26 BC Shipping News November 2011

RCN PACIFIC FLEET GUIDE HMCS Algonquin LOA: 130 m Beam: 15.2 m Draft: 7.6 m Displacement: 5,146 t Crew capacity: 295 Speed: 27+ knots Propulsion: 2 Pratt & Whitney FT-A4s / 2 Allison 570KF cruise engines Electrical power: 3 Solar Saturn gas turbine generator sets; 1 Detroit Diesel generator Aircraft: 2 CH124 Sea King Commissioned: 1973 (modernized in 1990) Builder: Davie Shipbuilding Ltd. (Lauzon, Que.) Motto: À Coup Sûr (With sure stroke)

IROQUOIS CLASS DESTROYER

protecteur class auxiliary oil replenishment HMCS Protecteur LOA: 172 m / Beam: 23 m Draft: 10 m / Displacement: 24,700 t Crew capacity: 365 / Speed: 20+ knots Propulsion: 2 Babcock and Wilcox boilers / Canadian GE cross compound steam turbine Electrical power: 2 Canadian GE steam driven turbo-alternator sets (1,000 kW each) / 2 Detroit Diesel generator sets (500 kW each) / 1 Solar Saturn gas turbine generator (500 kW) Aircraft: 3 CH124 Sea King Commissioned: 1969 (Refit: 1993/94) Builder: Saint John Shipbuilding (Saint John, N.B.) Motto: Soutiens avec courage (Support with courage) HMCS Victoria / Chicoutimi / Corner Brook LOA: 70 m Beam: 7.6 m Draft: 5.5 m Displacement: 2,400 t Crew capacity: 48 Speed: 20+ knots (submerged) / 12 knots (surfaced) Propulsion: Diesel-electric: 2 Paxman Valenta 16-cyl. diesels driving 2 G.E.C. Alsthom 2,500-kW generators; propelled through the water by a single 5,400 hp electric motor turning a single propeller.

Commissioned: 2000 / 2004 / 2003 Builder: Berkin Head, Liverpool U.K. / Vickers Shipbuilding and Engineering Ltd. / Cammell Laird, Birkenhead Motto: Expect no warning / Maître du Domaine / We rule the sea

victoria class long range patrol submarines

November 2011 BC Shipping News 27

RCN PACIFIC FLEET GUIDE kingston class coastal defence vessels General characteristics LOA: 55 m Beam: 11 m Draft: 3.4 m Displacement: 970 t

Crew capacity: Range of 23 to 37 Speed: 15+ knots Propulsion: 2 x 1,150 kW DC propulsion motors / 2 x Z drive azimuth thrusters (5 bladed fixed pitch propellors)

Electrical power: 4 x Wartsilla UD23 V-12 / 600 VAC diesel alternators Typical armament: 1 x 40-mm rapid fire gun Bofors 2 x .50-calibre heavy machine-guns

HMCS Brandon Commissioned: 1998 Builder: Halifax Shipyards (Halifax, N.S.) Motto: Vires Acquires Eundo (She acquires strength through progress)

HMCS Edmonton Commissioned: 1997 Builder: Halifax Shipyards (Halifax, N.S.) Motto: Industria ditat (Industry enriches)

HMCS Whitehorse Commissioned: 1998 Builder: Halifax Shipyards (Halifax, N.S.) Motto: Audentes fortuna juvat (Fortune assists the daring)

28 BC Shipping News November 2011

RCN PACIFIC FLEET GUIDE kingston class coastal defence vessels

HMCS Nanaimo Commissioned: 1997 Builder: Halifax Shipyards (Halifax, N.S.) Motto: Faith and Labour

HMCS Saskatoon Commissioned: 1998 Builder: Halifax Shipyards (Halifax, N.S.) Motto: Fortis ceu leo fidus (Brave as a faithful lion)

HMCS Yellowknife Commissioned: 1998 Builder: Halifax Shipyards (Halifax, N.S.) Motto: In ardua nitor (I endeavour in difficulties)

November 2011 BC Shipping News 29

RCN PACIFIC FLEET GUIDE FLEET SAIL TRAINING VESSEL

HMCS Oriole LOA: 31 m Beam: 5.8 m Draft: 3 m Displacement: 92 t Crew capacity: 21 Speed: 12+ knots Mainmast height: 28.7 m Mizzenmast height: 21.3 m Sails: Spectra Mylar between 1/4 and 3�

Sail area: Working sails: 564 sq. m / Spinnaker: 644 sq. m Propulsion: 261 hp Detroit Diesel Electrical power: 8 kW Yanmar diesel Commissioned: 1952 Builder: George Lawly & Sons (Boston, Mass.)

Emblem: Oriole (Oriolus aurum)

orca patrol craft training

30 BC Shipping News November 2011

Orca / Raven / Caribou / Renard / Wolf / Grizzly / Cougar / Moose LOA: 33 m Beam: 8.34 m Draft: 2 m Displacement: 210 t Crew capacity: 4 crew / 16 trainees Speed: 18 knots Propulsion: 2 Caterpillar 3516B Electrical power: 2 x 1,864 kW at 1,600 rpm diesel generators Built: Various (8 in total from 2006 - 2008) Builder: Victoria Shipyards

RCN PACIFIC FLEET GUIDE queen’s harbour master Glen Class LOA: 29 m Beam: 9.14 m Draft: 4.6 m Displacement: 400 t Crew capacity: 8 Speed: 12 knots Propulsion: 1,800 hp Cycloidal Drive Electrical power: 2 x 100 kW Built: 1975 Builder: Yarrows, Victoria Ville Class LOA: 13.7 m Beam: 4.6 m Draft: 1.8 m Displacement: 45 t Crew capacity: 3 Speed: 10 knots Propulsion: 365 hp fixed pitch prop in steerable nozzle Electrical power: 10 kW Built: 1974 Builder: Vito, Vancouver Firebrand LOA: 23.16 m Beam: 6.4 m Draft: 2.4 m Displacement: 140 t Crew capacity: 3 Speed: 11 knots Propulsion: 2 x 365 hp Cat 343 diesels; Z-drives fixed pitch props. 2 X 365 hp driven fire pumps, 2 X 2,500 GPM water to three monitors.

Electrical power: 2 X 45 kW Built: 1978 Builder: Vancouver Shipyards Tillicum LOA: 14.6 m Beam: 6.1 m Draft: 3.05 m Displacement: 140 t Crew capacity: 3 Speed: 10 knots Propulsion: 2 X 635 hp 8-149 Detroit Diesels, fixed pitch props, fixed nozzles, four rudders Electrical power: 20 kW Built: 1990 Builder: West Coast Manly, Vancouver

YD 250 Crane Barge LOA: 36.6 m / Beam: 18.3 m Draft: 2.13 m Displacement: 750 t Crew capacity: 6 Lifting Capacity: 50 t Propulsion: Steam, original Scotch Boiler, 400 hp Electrical power: 2 X 30 kW Built: 1957 Builder: Burrard Shipyard, Vancouver YRG 61 Tank Cleaning Barge LOA: 36.6 m Beam: 10.97 m Draft: 2.1 m Displacement: 700 t Crew capacity: 6 Propulsion: Steam, 2 X 220 hp Spanner Watts Boilers Pumping Capacity: 2 vacuum pumps, 1720 CFM each Electrical power: 2 X 30 kW Built: 1963 Builder: Allied Shipyard, Vancouver YDG 3 Degaussing Barge LOA: 27.43 m / Beam: 9.14 m Draft: 1.8 m Displacement: 700 t Crew capacity: 2 Propulsion: 2 X 1680 hp Fairbanks Morse Degaussing Capacity: 4,600 amps at 525 volts Electrical power: 2 X 60 kW Built: 1964 Builder: Mercer Star Shipyard, New Westminster

YPT Torpedo Ship Ranging Vessels (TSRV) LOA: 32.92 m Beam: 8.53 m Draft: 2.44 m Displacement: 290 t Crew capacity: 4 Speed: 13 knots Propulsion: 2 X 671 hp, Cat 3612, fixed pitch, open wheels Electrical power: 2 X 60 kW Built: 1991 Builder: West Coast Manly, Vancouver YAG 680 Sonobuoy Testing/Range Patrol LOA: 12.19 m Beam: 3.96 m Draft: 1.22 m Displacement: 20 t Crew capacity: 3 Speed: 25 knots Propulsion: 2 X 350 hp, Cummins, jet drives Electrical power: 10 kW Built: 1995 Builder: Celtic Shipyard, Vancouver

For information on the Royal Canadian Navy Maritime Forces Pacific fleet, please visit: www.marpac.ca.

November 2011 BC Shipping News 31

HISTORY LESSON

Wrens — birds with big historical wings: The Women’s Royal Canadian Naval Service.

By Lisa Glandt

Librarian / Archivist, Vancouver Maritime Museum

I

n 1942 the Women’s Royal Canadian Naval Service (W.R.C.N.S.) was officially formed in response to a shortage of manpower in the Canadian Navy. Known as “Wrens”, they followed in the footsteps of the Women’s Royal Naval Service (W.R.N.S.) established in England during teh First World War. British officers provided training for the first complement of women who would become the officers and guiding figures of the new Canadian service.

32 BC Shipping News November 2011

Recruiting women aged 18 to 45 was a patriotic endeavour with advertising that claimed: “In a very real way you are helping the Navy play its vital part in Victory when you release a sailor who wants to go to sea.” Other incentives included “comfortable quarters… naval food is justly famous” and “… when joining the Wrens you receive 64 articles of clothing and equipment with an additional allowance of $15.00 for underclothing and toilet necessities.

Pay, allowances and leave are attractive and holidays with pay — salary level of $1.35 - $2.25 based on job/rank.” New recruits travelled to Galt, Ontario for a three-week basic training program that consisted of physical training, parade ground drills, and lectures on naval customs and traditions. Specialized training was later offered at locations in Ottawa, Scarborough and Halifax.

After basic training, women took up positions that supported the Navy’s role in the war effort including clerks; coders; messengers; pay writers; plotters; sail makers; motor transport drivers; stewards and switchboard operators.

They worked as assistants in the operational training centres in Halifax and St. John’s; manned special wireless and loran shore stations; kept operations plots of the war at sea; worked for the Department of Naval Information, and some even stood four-hour watches on the tower overlooking the Halifax harbour. Many Wrens never got to go overseas (official regulations stipulated you had to be 21 before being allowed to leave Canada) and most served their time in Atlantic ports. W.R.C.N.S. officers received the King’s Commission and held the same rank as men. They were entitled to salutes and all marks of respect from non-commissioned men and women of the three armed forces. By the end of the war, there were 39 branches

VANCOUVER MARITIME MUSEUM

Promotional brochure.

Two Wrens contribute to the war effort.

of the W.R.C.N.S. created across Canada (principal recruiting areas were Ontario, British Columbia and Quebec) and by April 1945 the total enlistment was approximately 6,500 women.

On August 31, 1946, the Women’s Royal Canadian Naval Service came to an end. Despite being regarded as a temporary organization, their role and contributions cannot be ignored in the development of the modern Canadian Navy.

In the memoir The Girls of the King’s Navy

by Rosamond “Fiddy” Greer, she writes: “At the end of the war women were back home in cities and towns across Canada but friendships and esprit de corps remain with us for the rest of our lives. Somehow the donning of a uniform (even the work smock) seemed to change us. No longer were we sales girls, stenographers, bookkeepers, waitresses: we were transformed into a sameness that affected strong feelings of camaraderie and unity. We were Wrens…and we were very proud of it.”

The inspection at the Passing Out Ceremony of the first Canadian Wrens (Ottawa, October 29, 1942).

The Vancouver Maritime Museum is pleased to hold a small collection of personal records related to the Women’s Royal Canadian Naval Service — in particular the photograph album of Phyllis Ross Sanderson who was in the inaugural class of Wrens and completed training in Ottawa in 1942. Her album contributes towards a rich photographic record of the Canadian women who joined the Navy and proudly served for their country during the war.

Promotional brochure encouraging enrolment in WRENS. November 2011 BC Shipping News 33

international shipping

Japan’s success model and some valuable lessons for Canada.

By Robert Alexander Ho President, Fairmont Shipping (H.K.) Ltd. Vice-Chairman, International Ship-Owners Alliance of Canada Vice-Chairman, The London P&I Club

T

his article will hopefully provide some ideas for Canada as a nation by drawing examples from Japan’s 20- to 30-year growth cycle which took a Less Developed Country and transformed it into a world super power.

The aftermath of Second World War left Japan as a defeated nation, occupied by the Allied Powers and without independence until 1951. In 1951, Japan was characterized as a Less Developed Country (LDC), defined as a country with a low national income, weak human resources and an unstable economy.

The need for political will and a solid long-term vision The government of Japan realized that, in order to sustain its people, it had to build its economy and introduce robust policy tools. To revitalize Japan’s economy, the government worked on putting together a comprehensive national plan to create and grow opportunities. It did this through the establishment of the Ministry 34 BC Shipping News November 2011

of International Trade and Industry (MITI) and the Ministry of Finance.

MITI provided special tax incentives — for example, tax incentives for the import of new and highly efficient production equipment. Furthermore, the Ministry of Finance together with the MITI established the Japan Development Bank to create the Fiscal Investment and Loan Plan (FILP), a vehicle which held the nation’s savings with the postal savings system, a preferred place where individuals could put their money because their accounts were tax exempt. It has been recorded that FILP generated savings four times

the size of the world’s largest commercial bank. FILP was a powerful policy tool which MITI used to provide lowcost capital to industries that would foster long-term growth. These measures were the building blocks for the growth in the manufacturing industry.

The distinguishing characteristics of the Japanese economy during the “economic miracle” years included: the cooperation of manufacturers, suppliers, distributors, and banks in closely knit groups called keiretsu; the powerful enterprise unions and shuntō; cozy relations with government bureaucrats; and the guarantee of lifetime employment

international shipping (shūshin koyō) in big corporations and highly unionized blue-collar factories.

Government and industry co-operation and partnership In 1957, the Law on Temporary Measures for the Promotion of the electronics industry was enforced. This law was made to increase productivity and allow the development of economies of scale. In addition to this, low interest rates were offered for the purchase of modern and efficient equipment. Also Japan Management Association participated actively to improve efficiencies with respect to Japan’s manufacturing sector.

In the 1970s, Japan was among the leading countries in industrial assembly robots. In order to enhance that market, MITI developed a national R&D project for the development of flexible manufacturing factories. Also, in 1985, MITI created a roadmap for the computer-integrated manufacturing project, which aimed to develop a standard protocol for factory automation.

Industry associations also played a decisive role in the development of Japan’s manufacturing industry.

In 1985, the creation of the International Robotics and Factory Automation Association facilitated effective communication between equipment vendors.

What is Canada’s potential?

Canada is the second largest country by total area, with a population of approximately 34.2 million. Currently it is among the most highly developed countries in the world, with a nominal GDP of $1.57 trillion (2010). Furthermore, Canada has a diversified economy which relies upon its abundant natural resources and the ability to trade, predominantly with the United States. Today, the U.S. is Canada’s largest trading partner accounting for 79 per cent of Canada’s total exports.

Given that international trade is a critical part of Canada’s economy, it is no

surprise that Canada’s exports account for 45 per cent of its GDP. Furthermore, Canada is one of the few developed nations that is a net exporter of energy -Canada’s oil reserves are second only to those of Saudi Arabia and Canada ranks as the second largest exporter of natural gas.

With the ice-free North East Passage and the Gateway to the Asian markets, Vancouver will continue to play a more decisive role in trade and shipping...

Canada’s strategic location, with access both to the Atlantic and Pacific oceans, has also contributed to its development as a major exporter.

Implications of the ice-free North East Passage must also be considered, as western Canada will be the natural first port of call to that forthcoming vessel traffic. Canada’s status as a major exporter is expected to grow due to the increasing demand for energy from the world’s largest developing countries — China and India — whose populations are reaching 2.8 billion people.

With the ice-free North East Passage and the Gateway to the Asian markets, Vancouver will continue to play a more decisive role in trade and shipping. In

light of this, British Columbia and Port Metro Vancouver should consider a major master plan with the creation of a super port that could service this future growth. In fact, the port in downtown Vancouver should be transferred to outer areas similar to Prince Rupert and Kitimat. Ports should move out of densely populated residential areas which should become public parks and areas for the people. With ships getting bigger and bigger, it is only a matter of time for Vancouver port to become inefficient, very costly and possibly obsolete. The potential to B.C. is enormous and there is absolutely no reason why we should not think “Big”. Port Metro Vancouver, North America’s largest port, contributes $10 billion in direct GDP to Canada (approximately 12 per cent of GDP).

As a nation with no natural resources, a low-educated workforce and no economic infrastructure, one might ask how Japan became a global super power...

In light of the above, the Canadian government identified international trade as one of Canada’s critical competitive advantages and has made investments of over $2.5 billion for the

Top three countries by Nominal GDP and Canada (updated to 2009)

United States $14.11 trillion Japan $5.06 trillion

China Canada

$4.9 trillion $1.33 trillion

November 2011 BC Shipping News 35

international shipping development of the Asia-Pacific Gateway and Corridor Initiative(APGCI). The expansion of key sectors of Asia-Pacific Gateway is critical in order to further develop international trade and shipping, as over 80 per cent of global trade occurs by ship. It is estimated that approximately one in five Canadian jobs is linked to international trade.

Lessons Learned From Japan In the 1950s, Japan was classed as a Less Developed Country and by the 1970s it had achieved status as a global power. As a nation with no natural resources, a low-educated workforce and no economic infrastructure, one might ask how Japan became a global super power in 20 years. The answer is because of strong political will and good government policy based on a longterm vision of 50 years.

destructive, as the trade deficit was significant, the policy aimed to transform Japan into a full-scale industrialized power, which eventually resulted in trade surplus. Canada would benefit if it developed a long-term strategy with at least a 30-year horizon, a policy strategy that could remain consistent regardless of changes in government parties.

In addition, in order for this longterm strategy to be successful, all stakeholders such as conservation groups, industry, NGOs, federal and provincial governments, educators, etc., should be included from the very beginning of strategy planning to the implementation stages. In Japan, co-operation among different stakeholders was key to the successfulness of the country’s long-term strategy.

...for this strategy to be successful, all

Canada would benefit if it developed a

stakeholders...should be included from

long-term strategy with at least a 30-

the very beginning of strategy planning

year horizon, a policy strategy that

to the implementation stages.

could remain consistent...

The Japanese government comprehensively analyzed and recognized that together with trade, the manufacturing industry would be a strategic industry for Japan, and provided a number of incentives to help the sector flourish. In addition, close co-operation and expertise-sharing among industry associations enabled the industry to develop innovative concepts such as the robotics segment.

The importance of a longterm strategic plan and stakeholder engagement Japan’s success was based on longterm planning of 30 to 50 years. An example is the import of equipment at the beginning of the 1950s. Although in the short-run, the policy of corporate tax exemptions for machinery and equipment might have been considered 36 BC Shipping News November 2011

As stated by Peter Leitner, the Senior Strategic Trade Advisor of the U.S. Department of Defense: Post-war Japanese industrial policy evolved as a skillfully planned and beautifully executed program that represented the fruits of industrial/governmental cooperation and partnership without precedent in a Western-style democracy.

Strong political will and good government policy The Canadian government should: 1. Conduct a comprehensive review of Canada’s strengths and assess the areas that can be successfully optimized to generate long-term sustainable growth.

2. Develop political will to prioritize sectors and drive forward specific initiatives. For example, Japan’s gov-

ernment, in order to support the manufacturing industry and ensure its long-term viability, developed a number of incentives. One of those incentives was direct financial support. The financial resources were allocated to prioritized sectors, such as the transport and energy sectors. Canada could prioritize its industry sectors and support those sectors to further develop.

As in Japan, trade and transportation are critical sectors for Canada.

3. Ensure global competitiveness by reviewing the taxation system and developing more attractive tax incentives. With respect to Japan, the Japanese Government during the 1950s established the Inclined Taxation System, which provided substantial corporate tax exemptions for machinery and equipment purchases, accelerating the introduction of foreign technologies.

4. Develop a long-term plan with a vision spanning 30 to 50 years.

5. A master plan for a super port based outside of heavily populated residential areas in anticipation of the growth from the opening of the North East Passage and the growth of trade with Asia.

6. Explore the idea of creating a bank through a federal ministry similar to what Japan did when it built the Development Bank of Japan through MITI and the Ministry of Finance, which provided low interest rates for the purchase of equipment.

Canada, your potential is enormous!

SUSTAINABLE SHIPPING CONFERENCE

Collaboration key for a sustainable industry.

V

ancouver was the host city for the recent Sixth Annual Sustainable Shipping Conference, with over 150 shipping representatives from around the world. The theme of the two-day conference was “Collaboration for Change” — and each session provided unique and thoughtful perspectives with this theme in mind. Captain Stephen Brown, President of the Chamber of Shipping of British Columba was in the role of emcee and moderator and kept the conference on track through six sessions of panel presentations and discussions. A brief recap of each session is provided below.

Presentations can be downloaded through http://www.sustainableshipping.com/ events/2011/vancouver/agenda.

Session one: Setting the scene Following opening remarks from Captain Brown and Cara Davies, conference organizer and Petromedia representative, attendees heard welcome addresses from Andrea Reimer, Vancouver City Councillor, and Duncan Davies, Vice President, Corporate Social Responsibility, Port Metro Vancouver.

Ms. Reimer described Vancouver’s goal of being named the “Greenest City in the World” and how the keys to success to any project required leadership, measurable targets, action and partnerships. Mr. Wilson stressed the importance of collaboration and building relationships with communities. He also noted that it was necessary to lead by example and described a number of initiatives undertaken by the Port that reinforced their commitment to sustainability. Mr. Wilson invited people to visit www.portmetrovancouver.com to download the Port’s first sustainability report.

To set the stage for upcoming speakers, Captain Brown reviewed the many issues that the shipping industry currently faces. For Brown, it was important to ensure that the concept of sustainability

included criteria other than just environmental — such as economic sustainability as well as the need to manage compliance with numerous regulations.

Brown’s presentation provided a succinct summary of the many challenges that required the industry’s attention, including IMO credibility, criminalization of seafarers, CO2 emissions, piracy, economic volatility and its impact on dry bulk and tanker fleets, ballast water regulations and even an emerging issue regarding hydro-acoustics. Bright spots for the industry however could be found in such things as emerging fuel alternatives, specifically LNG. T.L.Garrett, Pacific Merchant Shipping Association, noted that the industry has always been proactive in addressing issues however he felt it necessary to stress that we need one set of rules to be able to effectively manage implementation of regulations. He agreed that collaboration was key for successful outcomes of sustainability initiatives as was the need for the industry to be allowed to achieve targets in their own way. Garrett ended his presentation with prophetic words: “It’s not about the California Air Resources Board regulations or the Emission Control Areas but it’s about the regulation after that, and the one after that,” he said. “We don’t have a standard — one that we can reach and then we’re done. In the absence of a goal, there is no incentive.”

Session two: Regulations The panel for Session two consisted of: Katharine Palmer, Lloyd’s Register; Robert Thornton, World Fuel Services; Daniel Lack, National Oceanic and Atmospheric Administration; and Sigurd Some Jenssen, Hamworthy Krystallon.

Ms. Palmer’s presentation focused on the forthcoming regulatory framework that came out of the Marine Environmental Protection Committee (MEPC) meeting in London over the past

summer. She highlighted the requirements for a successful sustainable shipping industry: “Sustainability is not just about complying with regulations,” she noted. “It refers to the way companies integrate economic, social and environmental concerns into their business operations. We need to balance people, planet and profit. Too much focus on any one area and the model collapses.”

Robert Thornton addressed compliance with air emission standards and whether the industry would be able to meet the demands of Emission Control Areas. Challenges included: a lack of harmonization between Port State Control regimes (e.g., EU, MARPOL, USCG/EPA and CARB); a lack of predictability and consistency in sampling procedures as well as inconsistency between different blends; limited geographical availability of low sulphur marine gasoil (LS MGO); long-term demand growth for middle distillates in non-OECD that would potentially put pressure on MGO availability and price; supply markets for LS MGO in 2015; and lack of a clear enforcement plan in Canada.

Daniel Lack posed the question of whether regulations on air emissions in California were having the intended impact. Through a partnership with Maersk, Mr. Lack was able to measure the emissions from the Margrethe Maersk to determine the relationship between fuel sulphur and emissions.

Results from tests confirmed that a combination of switching fuels, reducing loads and reducing speed provided for better reductions than expected.

Sigurd Some Jenssen posed the following question: Is a scrubber capable of meeting emission requirements of the North American ECA? The short answer was yes and Jenssen went on to review the feasibility and economic aspects of scrubbers that provided shipping companies with a viable option to meet incoming regulations.

November 2011 BC Shipping News 37

SUSTAINABLE SHIPPING CONFERENCE Session three: Panel discussion: Addressing the issues — a time for collaboration Captain Brown moderated this panel consisting of Joonatan Haukilehto, Deltamarin Ltd.; Per Holmvang, DNV Maritime Services; Megan McCann, Canadian Ship Owners’ Association; Azin Moradhassel, Canadian Ship Owners’ Association; Katharine Palmer, Lloyd’s Register; Sara Skold, Clean Shipping Coalition; and Simon Walmsley, World Wildlife Fund. Questions posed to the panel included: • The perception is that the shipping industry lacks transparency — how do we move forward from this image?

• What are the commercial advantages of investing in sustainable shipping?

• With the threat of peak oil, what are the most suitable alternatives for fuel?

Panelists provided a wide range of responses and a lively discussion was generated that included interaction from the floor.

Session four: Moving forward Session presenters included Ken Harford, Robert Allan Ltd.; Susan Hayman, Foss Maritime; David Bolduc, Green Marine Management; Oliver Pereira, KPMG Climate Change & Carbon Services; and Dr. Mark Trexler, Climate Risk — DNV Sustainability and Innovation. Each speaker looked at ways in which companies were working towards sustainability. Harford demonstrated how design innovations were leading to ships with low environmental impact and high energy efficiency. Susan Hayman described the experiences of Foss Maritime in continually looking for ways to lessen their impact on the environment; and Dr. Trexler described the dangers of “Black Swans” (unintended consequences of solutions to current environmental issues).

Session five: Marine spatial planning Without a doubt, this session held the most animated discussion of the conference as panelists provided their

Captain Stephen Brown, Commander Rick Rodriquez and Joe Spears.

38 BC Shipping News November 2011

perspectives on the challenges, realities and efforts required to carry out marine spatial planning. Panelists included Paul Holtus, World Ocean Council; Patrick Marshall, Capital EDC; Kaity Arsoniadis-Stein, International Ship Owners Alliance of Canada; and Art Sterritt, Coastal First Nations — Great Bear Initiative. While each agreed on the importance of collaboration and the need to engage in the marine spatial planning process, it was the message from Mr. Sterritt that became a lightening rod for discussion. Sterritt chastised local industry stakeholders for convincing the federal government that funding from a U.S. environmental group should not be used for the consultative process of the Pacific North Coast Integrated Management Area. He further indicated that First Nations were prepared to oppose projects such as Enbridge where First Nations communities would shoulder all of the environmental risks without economic benefit.

Session six: The Arctic Joe Spears, Horseshoe Bay Marine Group; Paul Berkman, University of California; and Axel Swanson, Thordon Bearings each presented an aspect of relevance to the Arctic. Spears took a realistic view of the rapidly changing conditions in the Arctic Ocean Basin and that, while there were many opportunities, the world community needed to ensure proper management of Arctic resources.

Professor Berkman outlined the many risks associated with the changing and opening trade routes in the Arctic. He also made recommendations on the process for moving forward, noting that this would need to be international, interdisciplinary and inclusive.

Axel Swanson looked at the legalities, consequences and solutions to operational discharges, recognizing that the environmentally sensitive nature of the Arctic would require greater vigilince in preventing stern tube oil discharges. Thordon Bearings has developed products that effectively address leakage and minimize a ship’s impact on the environment.

Prior to hearing from Natalie Bruckner-Menchelli, Director, Petromedia Ltd. Vancouver and Senior Editor, Sustainable Shipping, the final speaker of the day was Commander Rick Rodriquez with the U.S. Coast Guard. Commander Rodriquez confirmed the USCG’s commitment to an ocean policy that provided sustainability.

Captain Brown provided a closing summary of the two-day event, highlighting key messages and challenges that would require the industry’s attention. He noted the criticism of First Nations; the “black swans” — i.e., good intentions with unintended consequences; competing political jurisdictions and decisions that were not always based on science; as well as over-regulating and regulations that were unachievable.

The next Sustainable Shipping Conference will be held in Miami in 2012. BCSN

LEGAL AFFAIRS

Doing business in Canada:

A primer on the Coasting Trade Act.

By Catherine A. Hofmann

A Vancouver lawyer with Bernard & Partners

T

he relative strength of the Canadian economy in the North American context has brought about several recent enquiries regarding the application of the Coasting Trade Act (Canada) to the commercial operation of foreign-flagged vessels in Canadian waters. What follows is a primer on the Coasting Trade Act and some of the related issues an owner or operator of a non-Canadian registered vessel should consider before crossing the border. It should be noted, that while this article touches on a number of important areas, the (temporary) importation and use of foreign-flagged vessels in Canada is somewhat complicated and the particular facts in a given circumstance will often dictate the result.

The Canadian Coasting Trade Act, introduced in 1992, regulates the operation of vessels in Canada’s coasting trade. The Act is similar to the Jones Act in the United States. The legislation prohibits any foreign ship or non-duty paid ship from engaging in coasting (section 3) in Canadian waters,

including Canada’s Continental Shelf Zone, or 200-mile limit, whichever is greater. The essence of the legislation is in the definition of coasting in section 2. Without setting out the specific language of section 2, it prohibits coasting, as the carriage of passengers, inter alia, from one place in Canada to another place in Canada or back to the same starting place, unless the ship with the passenger onboard makes a call at a port outside of Canada. The definition allows a person during the voyage to disembark in Canada during what is called an “in-transit” call as long as the person rejoins the ship and makes the voyage to the foreign port.

The primary intent of the Coasting Trade Act is to protect the interests of operators of Canadian-registered ships...

The primary intent of the Coasting Trade Act is to protect the interests of operators of Canadian-registered ships while, subject to administrative

licensing, allowing access to foreign ships when suitable Canadianregistered ships are not available. Under the Act, and subject to a number of specific exceptions, the Minister cannot issue a coasting trade licence authorizing a foreign ship or a non-duty paid ship to conduct a commercial activity in Canadian waters unless the Canadian Transportation Agency (the “CTA”) has determined that firstly, no suitable Canadian ship and secondly, no duty paid ship, where applicable, is available to perform the activity described in the application. If the coasting trade licence application is for the transportation of passengers, the Act requires the CTA to also determine whether an identical or similar adequate marine service is offered.

The aforementioned exceptions are narrow in scope and are limited to those foreign or non-duty paid vessels that are: (a) used as a fishing vessel, as defined by the Coastal Fisheries Protection Act, in any activity governed by that Act November 2011 BC Shipping News 39

LEGAL AFFAIRS and that does not carry any goods or passengers other than goods or passengers incidental to any activity governed by that Act; (b) engaged in any ocean research activity commissioned by Fisheries and Oceans Canada; (c) operated or sponsored by a foreign government that has sought and received the consent of the Minister of Foreign Affairs to conduct marine scientific research; (d) engaged in salvage operations, except where such operations are performed in Canadian waters; or (e) engaged, with the approval of a person designated as a pollution prevention officer under section 174 of the Canada Shipping Act, 2001 or authorized under paragraph 11(2)(d) of that Act to carry out inspections, in activities related to a marine pollution emergency, or to a risk of a marine pollution emergency.

...the most significant language in the Coasting Trade Act is the prohibition against any foreign or non-duty paid vessel engaged in “any other marine activity of a commercial nature in Canadian waters”.

Although these vessels do not require a coasting trade licence, they must still report to border officials upon their arrival and departure from Canada and may still be subject to duties under the Customs Tariff Act. For these purposes, the most significant language in the Coasting Trade Act is the prohibition against any foreign or non-duty paid vessel engaged in “any other marine activity of a commercial nature in Canadian waters”. Although this expression is not defined in the Act, based on Transport Canada and CTA policies published from time to time, it is clear that it will be interpreted 40 BC Shipping News November 2011

trade licence, are calculated in accor-

on the facts of each particular temporary importation; but in general terms, the duties and taxes payable for vessels licensed under the Act to operate in Canada will be reduced to 1/120 of their prescribed rate, payable monthly.

However, those duties may in fact already be nil where, for example, the vessel is subject to a duty reduction under NAFTA or a similar treaty.

dance with the Customs Tariff Act and

...where a Canadian vessel is suitable

the Vessel Duties Reduction or Remov-

and available, written submissions

al Regulations enacted thereunder.

from all the interested parties will be

broadly. Therefore, an application for a coasting trade licence must be submitted where the foreign vessel will be carrying out any commercial marine activity.

Duty reductions for ships imported on a temporary basis under a coasting

Other pre-requisites to the issuance of a coasting trade licence to a foreignflagged or non-Canadian vessel include the following: (i) duties and taxes payable pursuant to the Customs Tariff and the Excise Tax Act applicable to temporary use and importation of the vessel in Canada must be paid; (ii) proof that all certificates and documents issued under the various shipping conventions to which Canada is a party are valid and in force; and (iii) proof that the foreign vessel meets all relevant safety and pollution prevention requirements which may be imposed by Canadian law.

The Customs Tariff provisions deal with the rates of duty for vessels entering Canada. For example, Tariff item 9801.30.00 provides that vessels “engaged in international commercial transportation” having a Canadian base of operation will be duty free. Vessels under this Tariff item must also comply with the requirements of the Canada Shipping Act 2001 and the Coasting Trade Act (the “Act”). Duty reductions for ships imported on a temporary basis under a coasting trade licence, are calculated in accordance with the Customs Tariff Act and the Vessel Duties Reduction or Removal Regulations enacted thereunder. The calculation of the duties and taxes payable will depend

accepted and a determination will be made.

An application for a coasting trade licence must be made to the Canadian Transportation Agency by a person resident in Canada who is acting on behalf of the ship intending to operate here.

There is no cost to making the application and the time required to process the application can vary depending upon the nature of the activity to be undertaken. Following receipt of the application, the Canadian Transportation Agency administers a process by which it will notify operators of Canadianregistered ships of the proposed activity to be performed. Operators of relevant Canadian-flagged vessels are then requested to advise the Agency within the time frame provided whether they have a suitable ship available to perform the activity described in the application. If no offer of a Canadian ship is received by the deadline specified in the Notice of Application, the Agency will consider the application to be uncontested and will issue a determination that there is no suitable Canadian ship available.

Alternatively, where a Canadian vessel is suitable and available, written submissions from all the interested parties will be accepted and a determination will be made. Further information regarding the licensing process can be

LEGAL AFFAIRS found on the Canadian Transportation Agency’s website.1 A coasting trade licence is valid for a maximum period of 12 months. Any ship that operates in contravention of the Act is guilty of an offence which is liable on summary conviction to a fine of up to $50,000 per day that the offence is continued. Two other incidental requirements for vessels subject to a coasting trade licence include the imposition of a marine service navigation fee for services provided by the Canadian Coast Guard as well as the filing of domestic shipping reports to Statistics Canada.

Additional processing time may be required where foreign workers will be employed on the vessel. Subject to a number of exceptions, Citizenship and Immigration Canada must issue a work permit to any foreigner who wishes to work temporarily in Canada. One such exception is available for foreign crew members working aboard foreign-flagged vessels which are engaged primarily in the international transport of cargo and passengers and whose work is related to the operation of the vehicles or the provision of services to passengers.

applicant must demonstrate that there are no suitable Canadians or permanent residents to fill the jobs and that bringing the workers to Canada will not have an otherwise negative impact on the Canadian labour market. It should be noted, however, that an exception to this rule is available for foreign companies which carry on business in Canada who wish to employ non-resident individuals with specialized training or knowledge, including senior managerial or executive staff.

Finally, a discussion on the importation and operation of a foreign-flagged vessel into Canada for commercial activities would not be complete without some mention of Canadian income tax.

Subject to any relevant income tax convention, the federal government imposes tax on the Canadian source income of every non-resident person who carries on business in Canada. Therefore, the determination of which business

organization or entity to carry out such business will be dependent upon the particular facts in each case and the appropriate tax and accounting advice should be obtained to assist in making such a decision. The question regarding the appropriate commercial organizational structure remains for any enterprise wishing to carry on business in Canada regardless of whether or not there is an actual importation of a vessel. In other words, whether as a non-resident you are chartering a Canadian vessel for commercial purposes or applying for a coasting trade licence to operate a foreign-flagged vessel in Canada, how the income generated from the commercial activities is to be taxed will likely be a threshold issue.

Catherine A. Hofmann is an associate and maritime lawyer with Bernard & Partners and can be reached at hofmann@ bernardpartners.com.

Subject to a number of exceptions, Citizenship and Immigration Canada must issue a work permit to any foreigner who wishes to work temporarily in Canada.

For all other foreign-flagged vessels intending to operate temporarily in Canada under a coasting trade licence and which will utilize the services of foreign workers, the employer of such personnel must apply for a labour market opinion from Human Resources and Social Development Canada (HRSDC).

This can often be a time-consuming and lengthy process. In particular, the 1 htt p://www.o tc- c ta .gc .ca/eng/ publication/13-background-process-coasting-trade-licence-issuance

November 2011 BC Shipping News 41

OIL SPILL RESPONSE Pacific Regional Advisory Council on Oil Spill Response:

Oversight group plays an important role.

I

n the September issue of BC Shipping News, we profiled the Western Canada Marine Response Corporation (WCMRC) and its role in oil spill response. Our goal with that article was to provide an educational look at the readiness and capabilities of oil spill response on the West Coast. Continuing on with our educational primer of the many players and stakeholders involved in oil spill prevention and response, one important organization not be overlooked is the Pacific Regional Advisory Council on Oil Spill Response (PRAC).

“Our main goal is to gather information in an unbiased forum and to provide advice and recommendations directly to the Minister of Transport...”

While they have no budget, no authority to make policy, direct operations, approve plans, review technical standards or resolve disputes, the PRAC still has a significant role to play within the oil spill prevention and response regime. As President Captain John Lewis explains: “The council is made up of a diverse group of individuals covering a number of different marine disciplines and geographical areas. Our main goal is to gather information in an unbiased forum and to provide advice and recommendations directly to the Minister of Transport on the full range of policy issues affecting regional preparedness and response. We work closely with all agencies who play a part in oil spill preparedness and are uniquely positioned to consider overall prevention and response capabilities.”

Regional Advisory Councils — of which there are five including the Pacific Region (Arctic, Maritimes, Newfoundland, Ontario and Quebec) — were borne out 42 BC Shipping News November 2011

of the Brander-Smith Panel report in 1990 (a Public Review Panel on Tanker Safety and Marine Spills Response Capability) following the Exxon-Valdez spill. The report highlighted the need for a public accountability mechanism in each region of Canada and through the Canada Shipping Act (now the CSA 2001), the PRAC was established and operational by 1996. The seven-member council is appointed by the Minister of Transport to three-year terms. Members can be drawn from areas representing municipalities; fishing and aquaculture interests; environmental groups; aboriginal interests; port authorities; business and business associations; shipping interests and oil handling facilities; and representatives from academia, marine law or other disciplines.

The current council includes a marine fire and safety consultant, a marine surveyor, a fisherman, a port captain, an environmental consultant, a forest products representative and a harbour towing operator. The members are from different parts of the province, including the north and Vancouver Island.

“Because our mandate includes public awareness, our meetings are conducted in a very transparent manner with minutes posted to our website and an open invitation for any member of the public or private sector to attend,” said Captain Lewis. “Quite often, in addition to regular attendance of federal and provincial government representatives as well as the Western Canada Marine Response Corporation, we will invite representatives from oil and environmental organizations to attend or provide detailed information related to issues being reviewed. We also receive letters and communications from local groups who are looking for more information on the West Coast’s preparedness and we’re able to provide that information in a neutral manner.”

As for the issues addressed by the council, there are quite a few that are actively assessed and monitored. To cite just a few recent examples: WCMRC preparedness exercises — The PRAC sends a representative to observe WCMRC exercises and provide a report containing an evaluation of components such as the Incident Command System, management of stakeholders, communications and general response procedures. Recommendations for areas of improvement, or issues related to current regulations and policies, are provided to the Minister of Transport and all participating agencies.

Diluted Bitumen — The PRAC highlighted concerns over a lack of worldwide experience with respect to oil spill response and prevention when moving unconventional oils (syncrude and

Pacific RAC members John Lewis RAC President SeaFire Training Ltd. Marine, fire and safety training/ consultant Harry Barrett International Forest Products Limited Manager, Coastal Woodlands Stan Bowles RAC Vice President BOWTECH, President and Principal Surveyor Lewis Bublé Fisherman Marine Insurance Co. Director Parks Canada Advisor Shane Deinstadt Minette Bay Ship Docking LTD. Manager, Prince Rupert Division Stafford Reid EnviroEmerg Consulting, Manager Brian Stansbury Seaspan, Port Captain

OIL SPILL RESPONSE diluted bitumen). Conventional recovery systems and booming techniques proved ineffective — in the case example used for review purposes, recovery of viscous oils was an overall five per cent. The council has engaged Enbridge (Kitimat) and Kinder Morgan (Westridge Terminal) and has been working extensively to ensure adequate emergency plans are put in place.

Tanker Escorts — A number of issues have been identified, including observations that there is too much faith in the capability of escort tugs to resolve issues a tanker may have.

Currently, there seems to be too much focus on tankers and not enough focus on non-tank vessels which ply B.C.’s waters in great numbers. This concern has been validated by the recent grounding of the container ship MV Rena off the coast of New Zealand. The council also identified the need to clarify liabilities and responsibilities for response in the guidelines for tanker escort.

Office of the Auditor General Report on Oil Spills from Ships — All RACs across Canada are closely monitoring activities related to addressing deficiencies identified in the OAG report released last fall. In particular, the council receives regular updates from Transport Canada and the Canadian Coast Guard in their efforts to address issues such as effective response to spills north of the 60th parallel; updated risk assessments of ship-source oil and chemical spills; and updated training, equipment and preparedness plans.

Overall, Captain Lewis is satisfied that the work of the council is having a positive and constructive impact on preparedness plans and response procedures. “Council members have a great deal of expertise and knowledge — both of the oil spill response regime as well as geographic coverage — and our opinions and recommendations are often recognized as being in the best interests of Canadians,” noted Lewis. “From a personal perspective, and as a resident of one of the islands in the Georgia Strait, I feel the greatest asset the West Coast has is its magnificent environmental setting and I’m committed to protecting and preserving this. The council provides an additional level of oversight to ensure we have adequate precautions in place and we have the ability to respond no matter what the situation.”

“There needs to be reasonable and informed decisionmaking that considers the many opinions and needs of all... and I feel that this is one of the council’s main strengths...”

Other issues that are addressed at council meetings include responder immunity; challenges with vessels of opportunity training and standardization of safety and capability; geographical response planning; tank trucks on non-tank barges to name just a few. In addition to specific issues raised as they occur, the PRAC is provided with timely reports from Transport Canada, Environment Canada, Canadian Coast Guard and the B.C. Ministry of Environment. The council is also in regular communication with their counterparts across the country and meet at least once a year to review national policy and regulations.

One over-riding concern expressed by Captain Lewis related to the amount of misinformation and public misperception that currently exists in the recent debate on tanker traffic off the West Coast. “I recognize that there are public concerns in increasing tanker traffic on the West Coast but I see a level of hysteria that is without foundation. There needs to be reasonable and informed decision-making that considers the many opinions and needs of all citizens and communities and I feel that this is one of the council’s main strengths — our ability to consider an issue from various perspectives and make educated and realistic recommendations.”

For more information, the RAC website — http://www. tc.gc.ca/eng/pacific/tcc-1459.htm — provides a detailed overview of the council’s role in the oil spill response regime and is regularly updated with minutes from council meetings. The RAC Secretariat, Erik Kidd, with Transport Canada Marine, is also available to respond to public and private queries. BCSN

The RAC closely monitors oil spill prevention and response issues in Vancouver Harbour and throughout the province.

The RAC provides recommendations to the Minister of Transportation on issues related to all vessels, including tugs.

November 2011 BC Shipping News 43

PILOTAGE

Pacific Pilotage Authority (PPA):

PPA really means ‘Pollution Prevention Assured’.

By K.Joseph Spears

C

anada’s West Coast is remote, rugged and rich in marine life with some of the most biologically productive marine areas on the planet. It has been the ancestral home of First Nations for tens of thousands of years. It is a very special place. The Great Bear Rainforest is the last intact temperate rainforest in the Northern Hemisphere. The wild coast of British Columbia is an integrated ecosystem of ocean, land and rivers which First Nations peoples have traditionally considered to be a single ecosystem. The renamed Salish Sea recognizes this holistic system.

Super-imposed on these pristine waters is the Asia-Pacific Gateway, an important trade route for global commodities and vital element of transshipment of goods to and from the United States and Canada. It is Canada’s portal to the world and the fastest growing economies in the Indo-Pacific Ocean Basin. It is a busy shipping route that is only going to increase in ship and cargo volumes as international shipping 44 BC Shipping News November 2011

responds to these economies and will result in the growth of the ports in British Columbia. The Pacific Pilotage Authority (PPA) is a central pillar and is often overlooked in Canada’s robust marine pollution prevention regime.

The recent discussion concerning increased tanker traffic on Canada’s West Coast has Canadians rediscovering the comprehensive pollution prevention regime that is in place in Canadian waters. Since the grounding of the oil tanker MV Arrow on Cerberus Rock in Chedabuato Bay, Nova Scotia in 1970, Canada has taken a proactive approach to the regulation of ship-source pollution in Canadian waters. Canada has led the way in pollution prevention activities at the international level. The provisions of the old Part 20 of the then Canada Shipping Act was considered radical at the time — and has developed a strong overlapping fabric of prevention elements in a holistic risk management approach to ship-source marine pollution prevention. It is a cornerstone of Canada’s ocean management strategy

to protect the marine environment and regulate shipping in an efficient and sustainable manner. This involves an over-arching web of federal marine legislation and federal government departments including Transport Canada, the Canadian Coast Guard and Fisheries and Oceans (Canada) to name a few that are involved in the prevention, protection and response phase of risk management.

On Canada’s West Coast, the PPA — and the Marine pilots that they contract through BC Coast Pilots Ltd. — provide a 24-hour, year-round frontline presence to foreign-flagged vessels in Canadian waters. It is a testimony to this vigilance by marine pilots that we have not had any major oil spill on the West Coast in recent memory. That takes constant hard work by the PPA and a constant embracing of new practices, procedures, training and technologies to ensure that future generations of Canadians have a pristine marine environment. The PPA is highly successful and cost-effective in protecting

PILOTAGE the West Coast. In fact, the entire pilotage service is funded by vessels’ interests. This pilotage service is not a new one.

It works, has served the test of time and continues to evolve in a changing and complex world. The PPA ensures that our marine environment is protected.

The PPA is a federal Crown Corporation created in 1972.

It operates and maintains safe and effective marine pilotage and related services in the coastal waters of British Columbia, including the Fraser River. The Pacific Pilotage system is a long-standing one whose roots are traced back to the United Kingdom. It is one of four pilotage authorities in Canada which include the Atlantic, Laurentian and Great Lakes and which has government oversight by Transport Canada Marine Safety. The recent Senate Standing Committee on National Defence and Security that looked at Arctic sovereignty in a report released in March 2011 (Interim Report on Sovereignty and Security) indicated that pilotage will be a key pillar of Canada’s exertion of sovereignty in the Arctic in future years. The importance of pilotage is recognized by legislators as an important element of Canada’s sovereignty infrastructure and a pollution prevention response.1 The PPA provides compulsory pilotage along a 900-kilometre length of the coast, covering the entire West Coast from the Strait of Juan de Fuca in the south to the Alaskan border in the north and all waters in between. The PPA derives its legislative authority from the Pilotage Act that is applied across Canada and the specific Pacific Pilotage Regulations.

Section 9 of the Regulations requires all vessels over 350 gross tonnes to have a marine pilot onboard while navigating within the compulsory pilotage area. This includes all foreign-flagged vessels engaged in international shipping on the West Coast.

The PPA’s Board of Directors are Governor-in-Council appointments made by the Federal Cabinet and drawn from people with both marine and commercial experience. The experienced Board sets policy to adapt and address new shipping issues such as the Asia-Pacific Gateway and Corridor Initiative and others. The PPA directly employs eight Fraser River marine pilots. The PPA contracts with BC Coast Pilots Ltd., a private company, to supply licensed marine pilots whose number total 100. The marine pilots run this firm. BC Coast Pilots Ltd. works closely with the PPA to ensure that the highest standards of training are undertaken on an on-going basis and that there is a continual and systematic upgrading of skills. In an average year, over a half-million dollars is spent on training. In 2010, $1.2 million was spent in training for the movement of deep draft tankers through Vancouver Harbour’s Second Narrows. It is fair to say that the PPA and BC Coast Pilots Ltd. are some of the most progressive mariners in the world and are constantly updating their navigational skill set. http://www.parl.gc.ca/Content/SEN/Committee/403/defe/rep/rep07mar11-e.pdf

1

MV Golden Cell, a pleasure vessel that was required to have a pilot onboard but failed to do so.

The vessel was successful salvaged by Master Salvor Captain Don Mackenzie of MacKenzie Sea Services in 1999.

The marine pilots have an extensive practical knowledge of West Coast waters. These waters are often a challenge to the navigation of deep sea vessels, especially during the winter months when strong outflow winds, restricted visibility, strong tidal currents and narrow channels, often with a high traffic density, are typical. For example, there can be in excess of 10,000 small vessel movements in the lower Gulf of Georgia, Vancouver Harbour and approaches on any given day, including pleasure, commercial, governmental and military (surface and subsurface) marine activity. These are busy waters even without the numerous fixed wing floatplane movements.

November 2011 BC Shipping News 45

PILOTAGE The testing and examination process for marine pilots is extremely rigorous. The designation of marine pilot is regarded as the pinnacle of a career in navigation in the marine industry here on the West Coast. Unlike other parts of the world, the pilotage process administered by the PPA is one that requires detailed navigational and geographic knowledge of the entire coast and is not restricted to one area. That, in my view, is one of the strengths of the system — marine pilots can operate over the whole coast and there is a ready pool so shipping is kept moving. There is a statutory requirement that a pilot must be provided within 10 to 12 hours of a request by a vessel’s agent. The Pilot’s dispatch office in Vancouver is a welloiled machine that deploys marine pilots via a system of pilot launches and stations located throughout B.C., occasionally using helicopters for more remote locations on the coast.

The pilotage system administered by the PPA works — it is accountable and protects the public interest; it is independent from commercial interests; and is highly nimble, resilient and adaptable to change. The marine pilots, through a constant educational process, are responsive to the latest practices in bridge management procedures, vessel characteristics and operating protocols.

The PPA ensures that foreign-flagged vessels travelling the West Coast have an intimate knowledge of these challenging waters. In 2010, there were two minor incidents out of 11,400 vessel movements. The fact that the safety record for pilotage vessels stands at 99.9 per cent, is an impressive record and speaks volumes to the effectiveness of the system.

The marine pilots, before becoming certified, undergo a testing process which is one of the most demanding in the world when it comes to local navigational knowledge. The compulsory pilotage waters that are administered by the PPA are unlike most areas of the 46 BC Shipping News November 2011

world where there is a specific port and a fixed navigational route which the marine pilot is required to master. It is not uncommon for marine pilots to board a vessel in Vancouver and take the vessel north to the A.B. line that is the Canada/U.S. border in Dixon Entrance and depart the vessel at the Triple Island pilot station near Prince Rupert. This ensures that each foreignflagged vessel, during its movement within West Coast waters, has access to a lifetime of practical navigational experience and the latest in bridge management and voyage planning processes that are delivered through the skill set of the marine pilot. The onboard marine pilot also strengthens the vessel’s bridge management team who are mariners certified by the flag state.

As the recent incident in New Zealand involving the container ship MV Rena demonstrates, marine pilots provide a level of safety which can sometimes mean the aversion of an environmental catastrophe. The MV Rena ran aground on the Astrolabe Reef in the Bay of Plenty. Based on the real time open source Automatic Identification System (AIS) navigational data from the vessel, inspectors have determined that the vessel was proceeding at full speed (17.8 knots) prior to being boarded by a pilot. (A future article will examine geofencing and alarms using spacebased AIS.) This incident could have been prevented had a pilot been onboard. The results can be catastrophic and focuses worldwide attention on the risks associated with international commercial shipping. While attention has been paid to the MV Rena’s bunkers and lubricants, many of the packaged and unitized HNS cargoes in the containers can be much more problematic and pose a greater long-term risk to both the marine environment and human health. They could also impact on a salvor’s ability to board and potentially salvage the vessel and/or cargo. Not a good situation.

Given the low incident rates of marine pollution on this coast, it is clear that the services provided by marine pilots under the authority of the PPA are ensuring that the waters of Canada’s West Coast remain clean well into the 21st century and that the IMO’s motto (“safe, secure and efficient shipping on clean oceans”), Canada’s international obligations under the Law of the Sea Convention and leadership in marine pollution prevention are upheld.

Given the low rate of commercial vessel incidents in Canadian West Coast waters, the system is one that is an integral part of marine pollution prevention and needs to be part of any future development of marine traffic and future risk analysis. The PPA utilizes a risk management protocol developed by Transport Canada called Pilotage Risk Management Methodology based upon a Q850 Quality Assurance process which has been applied to operational and legislative changes. In 1990, the Public Review Panel on Tanker Safety and Marine Spills Response Capability, chaired by highly respected Vancouver admiralty lawyer David Brander-Smith, recognized this: “Pilotage has been important historically, and it will remain so even with the advent of new navigational technologies. Their in-depth knowledge…is valuable in ensuring safe passage of foreign vessels…”. These comments, written over 20 years ago, are even more relevant today.

The marine pilotage regime administered by the PPA is an independent system that works to protect both public and private interests. All Canadians can be proud of the incident-free record and a service that is provided at no cost to the taxpayers. It is an another example of an alternative service delivery that has stood the test of time and can be applied to 21st century sustainable shipping in Canada. It is a collaboration between the public and private sectors and is another example (and untold story) of the safety management regime that

PILOTAGE

The above map shows the areas (in red) that have compulsory requirements for pilotage; the green area (around Vancouver) indicates the Fraser River Pilot field of operation.

underlines Transport Canada Marine Safety’s regulation of marine shipping.

It demonstrates the need for an ongoing, integrated and collaborative approach to marine risk management.

We need to use New Zealand’s Astolabe Reef as a metaphorical waypoint to strengthen and buttress marine pilotage in Canadian West Coast waters to ensure that they remain rich and pollution-free. We need to ensure

compulsory marine pilotage responds to new activities and risks on Canada’s West Coast as international shipping changes and the Asia-Pacific Gateway and Corridor Initiative continues to develop and evolve. Sustainable shipping is an integral part of Canada’s economic future and our ability to be a world leader in marine pollution prevention. The acronym PPA really should be a motto: Pollution Prevention Assured.

Joe Spears is a certified mariner and former Coast Guard coxswain and has a longstanding interest in marine pilotage that can be traced back to his great-grandfather James Spears, a Halifax Harbour and Royal Mail Steam Packet coastal pilot, at the turn of the century who had a 45-year accident-free record. Joe recently spoke at the Sustainable Shipping Conference in Vancouver. He can be reached at kjs@ oceanlawcanada.com.

November 2011 BC Shipping News 47

TECHNOLOGY

Natural microbes:

Cutting-edge cleaning solution for bilge oil sheens.

B

uilding on the success of their “Oil Eradicators” — open-cell foam carriers that float on the surface of water and convert hydrocarbons into edible fatty acids through a bioremediation process — Young Enterprises of Massachusetts, U.S. has developed the Absorbent Microbial Bilge Pillow. The pillow floats on water, absorbing up to a quart of oil and is designed for use in commercial vessels such as tugboats, workboats and fishing boats but can also be used in containment booms, catch basins and oil/water separators. Unless you have a large leak, the bilge pillow should reduce or eliminate the need to have the bilge cleaned or pumped.

The Bilge Pillow contains ground peat moss and 100 billion oil degrading microbes. (The peat moss and microbes are contained in a thin polyurethane

48 BC Shipping News November 2011

foam. Except for the brass grommet, the Bilge Pillow is completely biodegradable.) Thus, this product quickly removes oils from water and at the same time releases oil degrading microbes to destroy any dissolved phase oils, destroying oily sheens and cleaning any contaminated media. Microbes naturally find “sites” on any material that is contaminated by FOG (fats, oils or grease). Microbial activity destroys the FOG, naturally cleaning the contaminated surface.

The microbes are alive and thus when exposed to water and oil, the destruction of the dissolved phase oil begins immediately, however, it takes time for colonies of microbes to grow and disperse into the water column. The microbes are grown using a proprietary media that contains all the molecules of oil and therefore

the microbes adapt readily to petroleum contamination.

The formula consists of a consortium of naturally occurring, environmentally safe and non-pathogenic Archaea microbes.

Many people are familiar with microorganisms (microbes) or bacteria, as they are also commonly called.

Microbes are found throughout the world, in soil, in water, plants, animals, rocks, and people. After death, all living organisms decompose to their base elements of water, carbon, nitrogen, phosphate, and trace elements. This process is called bioremediation or mineralization.

TECHNOLOGY Bioremediation also refers to any method that uses microbes to recycle organic materials and sequester inorganic ions. Because the primary responsibility of microbes is to recycle organic materials, they must be present in sufficient quantities and diversity to degrade that particular material. The formula consists of a consortium of naturally occurring, environmentally safe and non-pathogenic Archaea microbes.

The pillow contains an ultra-high

concentration, 100 billion microbes.

The microbes are activated in either salt or fresh water.

The microbes convert a wide assortment of unwanted organic materials and wastes, including petroleum hydrocarbons, chlorinated compounds, animal wastes, fats, oils, and greases, into beneficial fatty acids, carbon dioxide and water.

Because the microbes are a living assemblage they may be killed by high temperatures (>110째F) and concentrations of

certain chemicals (pesticides, herbicides, bleach, etc.). Also, X-rays kill microbes.

The microbes in the pillow are released to the water and begin to naturally destroy oils and grease. Contained in the polyester foam is natural peat moss. The peat moss is the absorbent. Microbes are in the flap. The flap must be in contact with water to release the microbes.

For more information, visit: www. young-enterprises.com or call Trotac Marine at 1-866-287-6822. BCSN

A simulation of oil in a small bilge was created by adding a quart of #2 fuel oil to a pool of sea water from Hull Gut, the Southern entrance to Boston Harbor. The pool is 38 inches in diameter by seven inches deep and holds only 29.5 gallons of sea water. An oil sheen of 0.051 inches was created, approximately 13 times the USEPA criteria for a sheen (0.003937 inches). This is an extreme case as most bilges contain many more gallons of water. Sampling was accomplished by pumping water through a peristaltic pump with the suction on the bottom of the pool. The water was sampled before oil was added to the pool.

1. Oil is stirred to duplicate motion and disperse into the water.

2. A sample is taken 24 hours later.

3. After the 24-hour sample, the Bilge Pillow is added.

4. End result shows the lack of an oil sheen within one week.

November 2011 BC Shipping News 49

TECHNOLOGY

The race for the perfect fuel.

By Chris R. Smith and François Lauzon, Stantec Consulting Ltd.

T

he global demand for fuel is showing no sign of letting up, and with an eventual end to our ability to cost-effectively extract fossil fuels from the ground, coupled with social pressures driven by sustainability, the effective management of existing fuel supplies is becoming essential. The key issues at hand include fuel losses from equipment and transfers, and fuel quality.

With the demand of quality fuel becoming an international priority and the costs associated with storage and handling, more and more international shipping and large fuel consumers are demanding fuel quality standards.

Outside of the aviation industry that has stringent oversight and fuel quality standards in place, most other commercial and industrial end users have no similar scrutiny. Adding to the challenge faced by industry, refineries are becoming additionally focused on production rather than storage, distribution, and retail. A clear sign of this evolving market place is the closures and downsizing of bulk storage facilities across Canada.

One of the fallouts of this evolution is that the quality of fuel can more easily get lost once it leaves the refinery.

Where Canada has remained somewhat silent, in comparison to countries such as Australia, is in the regulatory implication of quality standards...

On the regulatory side of things, we have seen changes to the provincial and federal policies and regulations regarding issues such as sulphur content in diesel and renewable fuel content in gasoline. Although driven mainly by air quality targets (emissions-based), they have had a direct impact on Canadian 50 BC Shipping News November 2011

fuel quality standards issued by the Canadian General Standards Board.

Where Canada has remained somewhat silent, in comparison to countries such as Australia, is in the regulatory implication of quality standards that are based on operability indicators as opposed to environmental indicators. Operability standards address those parametres of fuel that do not have a direct impact on emissions but, if not controlled, can have adverse impacts on the efficient operation of the engine. Other than

Considering the complexities and costs associated with most engines,...owners would greatly benefit from ensuring superior fuel quality standards... standards that deal with the operation of emergency generation systems in support of life safety systems, there are limited drivers to ensure fuel quality that would ultimately prolong the operational reliance of engines. Considering the complexities and costs associated with most engines and systems, owners would greatly benefit from ensuring superior fuel quality standards in their fleets and inventories.

With over 25 years’ experience in the design, testing, and environmental assessment and remediation for most petroleum companies and retailers, Stantec has witnessed the devolution of the fuel storage and distribution sector, and the resulting gap in quality control directly affecting the end user.

If you were to look back at the industry 10 years ago, you were likely to see that your re-fueling request would be handled by a single manufacturer using their own delivery trucks. In today’s economy, it is likely that a single request for fuel would end up working

its way through a network of independent storage facilities and delivery companies that would greatly increase the risk of fuel contamination. Most quality issues are likely not at the refinery

The contamination issues tend to multiply as the fuel begins its journey through a network of transfers and bulk storage... end of the supply chain as most of these have fuel quality standard systems in place that ensure a quality product for distribution. The contamination issues tend to multiply as the fuel begins its journey through a network of transfers and bulk storage in an unregulated (quality) environment.

Fuel quality standards are governed by countries and based on standards such as those developed by the International Organization for Standardization (ISO).

Countries have not regulated fuel quality in laws with the exception of regulations focused on the environmental issues related to emissions from fuel use. The World Wide Fuel Charter (WWFC) has developed a system where fuels are placed into four quality categories based on a set of quality criteria.1 Although the purpose of the Charter is to promote greater understanding of the needs of motor vehicles for fuel quality that minimizes emissions and obtains the best vehicle performance, it also promotes the need for countries to improve and harmonize fuel quality worldwide in accordance with vehicle needs, because engine and vehicle technologies normally achieve better 1 Jesse Row, Alex Doukas. Fuel Quality in Canada: Impact on Tailpipe Emissions, The Pembina Institute, November 26, 2008

TECHNOLOGY performance and lower emissions with higher category fuels.2 In terms of marine fuels, markets look to the Platts system for fuel pricing based on a standard set of quality fuels. Platts assesses four grades of marine fuel: Intermediate Fuel Oil (IFO) 180 centisoke (CST), IFO 380 CST, Marine Diesel (MDO) and Marine Gasoil (MGO). The worldwide market generally follows similar specifications for these grades in all locations. The specifications followed are those defined by the International Organization for Standardization in document ISO 8217:2005 (E) — Petroleum products — Fuels (class F) — Specifications of marine fuels.3 Of importance to note though, is the fact that these standards are not regulated, and are mostly satisfied on a voluntary basis by reputable refineries at their point of distribution.

The quality can easily get compromised once the product leaves the refinery site to get to an intermediate distributor or at any point down the supply chain.

Owners of facilities are very aware of quality and storage problems that continue to cause operational issues.

Owners of facilities are very aware of quality and storage problems that continue to cause operational issues.

Consequently, they are asking consultants what they can do to obtain better quality fuel. The United Nations (UN) Department of Field Support (DFS) recently engaged Stantec Consulting Ltd. (Stantec) to develop a fuel certification program for its field operations in order to ensure a high quality of fuel services from both an operator’s and fuel quality point of view. This project clearly showed how fuel quality varies 2

Worldwide Fuel Charter, 4th Edition, September 2006 3 Platts Methodology and Specifications Guide, Bunker Fuels & Tankers TheMcGraw Hill Companies, UPDATE: JUNE 2010

worldwide and the importance of testing at all points in the supply chain in order to minimize disruptions and engine breakdown due to poor quality fuel.

Although aviation fuel is the most critically controlled product for flight safety reasons, the impacts of contaminated fuel on any other type of engine can have significant operational impacts on organizations that rely on fuel distributed across a global marketplace.

Before and after...

After conducting hundreds of petroleum system compliance audits...

Stantec continues to see that the most common quality issue with fuel is the intrusion of water!

After conducting hundreds of petroleum system compliance audits across Canada, Stantec continues to see that the most common quality issue with fuel is the intrusion of water! Water in fuel, either in a free phase or dispersed, will create an environment prone for bacterial growth. This unwanted water can originate from a multitude of sources and thermal reactions. Water can be created through condensation caused by either sudden or gradual temperature changes; it can also enter during transportation, during handling, during transfer drop connections, as well as from secondary containment areas around fill pipes.

Water can also commonly be found to originate from either improper maintenance or poor installation practices.

Stantec’s experience in working with a broad range of clients from refineries to independent bulk terminals has shown that upward of 80 per cent of water intrusion issues originate from these sources.

Of importance to note is the fact that there are many other factors that will contribute to the potential for water intrusion such as sizing of vents, location of tanks (either above ground or

In both of the demonstrations above, diesel fuel shown before and then after filtration through the Lorax System. underground), and leaks in piping or the tank itself.

Water intrusion is not a new phenomenon, and has been a factor for the petroleum industry for years. In fact the fuel storage and distribution industry has spent billions of dollars trying to remove this unwanted substance. For the aviation industry, the issue was driven by the water freezing at high altitude because of the low temperatures resulting in blocked injectors and engine failures.

For the bulk storage industry, the issues became driven by tank failures resulting in product losses, and more significantly, by environmental liabilities. The most common failures resulting in losses of fuel to the environment were as a result of tank corrosion. In response to this issue, tank manufacturers started to add sacrificial anodes or impressed currents to reduce the potential for corrosion to affect the buried steel tanks and lines, or those surfaces in direct contact with soils. The next step in the evolution of underground storage tanks November 2011 BC Shipping News 51

TECHNOLOGY independent engineered evaluation of the full benefits of the Lorax filtration systems. The evaluation will allow each facility to compare operational cost savings and air emission quality. The most important outcome however, will show how the Lorax system can ensure a reliable quality fuel supply for any type of emergency and prolonged engine life.

A first step in ensuring a reliable fuel supply is the implementation of a proper fuel management system...

The Lorax System uses a sophisticated proprietary cellulose cartridge that processes the contaminated fuel along its length.

(USTs) and lines was the use of non-corroding material such as fibre glass and polyethylene. Most modern bulk storage systems have water drain valves, raised suction and floating suction all in an attempt to make sure water doesn’t interfere with operations.

With all of these variables and site specific considerations that can affect fuel quality, Stantec recommends that a compliance and best practice audit be conducted in order to determine the optimum engineered solution to ensure a reliable quality fuel supply. This may ultimately include the addition of an engineered fuel filtration system that would be designed to meet the requirements of the facility and its users.

Lorax Filtration Systems were designed and have been installed for the past several years as duplex inline filtration systems to deal with just these types of complex fuel quality issues.

Much like many other technologies, an ideal fuel filtration system is not a “one size fits all” venture, and careful engineering considerations must be assessed because of the breadth of 52 BC Shipping News November 2011

contamination sources and system design parameters that include size and operational requirements.

Lorax has been working in close collaboration with Stantec to provide engineering services to ensure proper design considerations and installations.

With this collaboration, Stantec has also been retained to complete a full system evaluation on Lorax products.

This includes testing of fuel before and after filtration. As part of this evaluation, Stantec has setup a protocol to help with the assessment. The protocol includes the following: 1. Audit the existing tank system conditions prior to installation.

2. Testing of fuel before and after filtration.

3. Filter operations.

4. Generator equipment maintenance review, before and after.

5. Stack testing for particulate emissions.

Although Lorax has installed many systems across Canada that are functioning expertly, our clients and their agents are looking for a more robust

Stantec’s experience in the field of bulk fuel storage and the impacts of poor fuel quality has shown that our clients cannot control all the factors that are required to ensure superior fuel quality. A first step in ensuring a reliable fuel supply is the implementation of a proper fuel management system that includes quality assurance and quality control. As an element of the proven mitigation strategies for ensuring fuel quality, Stantec recognizes that continuous filtration of the stored fuel provides an effective means that gives greater benefits than those by standard in-line pleated fuel filters. This approach to fuel quality will ensure that engines are provided with an optimal fuel void of water and other impurities, which will ensure reliance of operation, cleaner emissions, and prolonged engine use. There is great comfort in having fuel quality issues dealt with, especially considering the rising cost of fuel, engine maintenance, and the need for reliable operations in this competitive market place.

Written by Chris R. Smith and François Lauzon, C.D., M.Eng., P.Eng., ing., LEED AP BD+C, Senior Associate and Principal, Environmental Services and Practice Leader, Environmental Services at Stantec Consulting Ltd.

WORKBOATS

Robert Allan Ltd. delivers new RAnger 2400 Class Fireboat.

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obert Allan Ltd. announced the delivery of a new RAnger 2400 Class Fireboat in October to the Massachusetts Port Authority, Boston. The American United, built by A.F. Theriault & Son Ltd., of Meteghan River, Nova Scotia, Canada was named in remembrance of September 11, 2001. Robert Allan Ltd. of Vancouver, B.C. worked closely with the Owner to define the vessel’s specific operational requirements. The American United will replace Massport’s existing vessel Howard W. Fitzpatrick, built in 1971. Darren Hass, P.Eng. was the Design Project Manager at Robert Allan Ltd. and Jody Bjerkeset, P.E., acted in the capacity of Owner’s Representative throughout the construction process.

This new high-performance fireboat is specifically designed to provide fast emergency response, search and rescue, firefighting operations, capability as an on-scene command post, port security, EMS and assistance with diving operations and recovery. The vessel is of all-welded aluminum construction and is ice-strengthened to suit year-round operations in Boston Harbor and surroundings. The vessel is equipped with

a large aft swim platform, and 30 Switlik life rafts to facilitate rescue of aircraft crash survivors. The vessel is also fitted with a FLIR thermal imaging system and ample flood lighting for nighttime operation.

The vessel has been built in accordance with American Bureau of Shipping (ABS) Guide for Building and Classing High Speed Craft, but was not so classed, and satisfies the requirements for designation as an NFPA Class III fireboat.

The fireboat is designed for a full load response speed of 24 knots, which was achieved during trials, and a low-wake, 12 knot cruising/patrol speed. The powering, sea-keeping, and wake generation characteristics of this semi-displacement hull form were verified by computational fluid dynamic (CFD) analysis.

The American United has the following particulars: Length Overall — 24.10 metres (excluding fenders) Beam, Moulded — 6.76 metres Depth, Moulded — 2.92 metres Maximum Draft — 2.13 metres (to bottom of props)

The American United — a new RAnger 2400 Class Fireboat designed by Robert Allan Ltd. November 2011 BC Shipping News 53

upcoming events

Visit us at the Pacific Marine Expo!

November 17 to 19, 2011 Seattle, Washington CenturyLink Field Event Center (formerly Qwest Field Event Center) Booth 1150.

54 BC Shipping News November 2011

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acific Marine Expo is the largest commercial marine trade show on the West Coast. Serving all aspects of the market, including commercial vessels owners, commercial fishermen, boat builders and seafood processors, this annual event covers it all. If you make your living on the water, or provide services to those who do, this is your show.

You’ll find it all here — equipment, gear, services, suppliers, new products and ideas — and with hundreds of suppliers you can negotiate face-to-face and side-by-side. And, while you’re there, catch up with friends and fellow mariners at the daily happy hour. Pacific Marine Expo is the only show dedicated to the Pacific Northwest and the commercial marine industry.

New products and services that will be featured at this year’s show include: • CENTAX-SEC announces production of the CENTAX-SEC Size 19x range of single ring coupling elements. Available in sizes 190 - 194, these ring elements are believed to be the largest in the world. Now the simplicity of a single piece coupling element, available for larger marine engines.

• Jastram Engineering combined historic Wagner engineering knowledge with their latest production techniques to develop the Hydraulic Follow-Up Unit HFU 210, a replacement of the Wagner M10. The HFU 210 features an enhanced electrical feedback, replacing the mechanical feedback found on its predecessor.

• Krill Systems, a leader in advanced vessel monitoring systems, announced their unique Vessel Operations Center (VOC). VOC consolidates each vessel’s database with others in the fleet and sends synchronized reports anywhere they are required, automatically, in near real time, via Internet.

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