BC Shipping News - October 2012

INSIDE: BC FERRIES’ FLEET REPORT

BC SHIPPING NEWS

Volume 2 Issue 8

www.bcshippingnews.com

October 2012

Commercial Marine News for Canada’s West Coast.

Industry insight

Donald Roussel, Director-General, Transport Canada Marine Safety & Security

Coal terminals

U.S. coal export terminals gunning for our business by Ray Dykes

Ferries

Canadian Ferry Operators Association: Ensuring consistently safe operations for travellers

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The cruise lines’ perspective of ECA by Donna Spalding and LNG conversions for marine installations by the Wärtsilä Team

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October 2012

Volume 2 Issue 8

On the cover: BC Ferries’ Northern Expedition Photo courtesy of BC Ferries

Contents

Cover Stories:

P.22: BC Ferries’ fleet maintenance report P.26: Ensuring consistent, safe travel for ferry passengers — By Anthonie de Hoog

10 Industry insight A synergy with the sea Being in charge of carrying out Canada’s marine safety and security programs requires understanding, balance and strong will — all attributes that Mr. Roussel exemplifies.

50

Tugs & Barges New deliveries from Robert Allan Ltd.

With seven deliveries in just over one month, Robert Allan Ltd. has been a very busy company.

Technology P. 42: LNG conversions for marine installations The Wärtsilä team provides a checklist for LNG conversions.

P. 53: New advanced technology: SmartVIEWTM New microprocessor-based control system for searchlights.

D E P A R T M E N T S

F E A T U R E S

Donald Roussel

6

News briefs / industry traffic

18

History lesson

20

Cruise industry

29

Spill response

32

Terminals (I)

36

Terminals (II)

39

Legal affairs

47

Engineering

51

Training

52

Nautical Sciences

Letters to the editor and news

Crossing Burrard Inlet: From row boats to the SeaBus — By Lisa Glandt North American ECA: The cruise lines’ perspective — By Donna Spalding The U.K.’s pollution response regime — By K.Joseph Spears U.S. coal export terminals gunning for our business — By Ray Dykes Diversity key to growth at Pacific Coast Terminals The return to provincial sales tax in B.C. — By Catherine A.Hofmann Port Engineers of tomorrow — By BMT Designer & Planners Onboard training proves critical for safety at sea A new crop of graduates from BCIT’s Marine Campus October 2012 BC Shipping News 3

NORTH WEST & CANADA CRUISE ASSOCIATION

Representing eleven major cruise lines operating in the Pacific Northwest, Canada, Alaska and Hawaii.

NWCCA member lines are at the forefront of environment, security and safety initiatives. NWCCA provides community and government relations and representation for development of local opportunities.

Members:

Carnival Cruise Line Celebrity Cruises Crystal Cruises Disney Cruise Line Holland America Line Norwegian Cruise Line Oceana Cruises Princess Cruises Regent Seven Seas Royal Caribbean International SilverSea Cruises

www.nwcruiseship.com Canadian K9 Detection, Security & Investigations Ltd. Explosives l Narcotics l Firearms Canine Detection services by the largest, full service Security and Canine Detection firm in Canada.

October 2012 Volume 2/Issue 8 Publisher McIvor Communications Inc. President & Editor Jane McIvor Contributing Writers BMT Designers Mark Collins Diana Dilworth Ray Dykes Anthonie de Hoog Maryse Durette Lisa Glandt Catherine A.Hofmann Deborah Marshall Donald Roussel Donna Spalding K.Joseph Spears Wärtsilä Team Advertising and Subscriptions Jane McIvor Phone: 604-893-8800 / Email: jane@bcshippingnews.com ANNUAL SUBSCRIPTION Canada Two Years $69.95 Cdn*

One Year $37.50 Cdn* USA One Year $60.00 Cdn Other Countries One Year $75.00 Cdn Single copies Outside of Canada *Canadian rates add 12% HST

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Subscribe online at www.bcshippingnews.com Contents copyrighted 2012 McIvor Communications Inc. 300 - 1275 West 6th Avenue, Vancouver, British Columbia Canada V6H 1A6 Phone: 604-893-8800/Fax: 604-708-1920 E-mail: contact@bcshippingnews.com

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4 BC Shipping News October 2012

International Standard Serial Number ISSN: 1925-4865 Published 10 times per year.

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

EDITOR’S NOTE

No matter why you’re reading, we’ve got you covered

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nother issue of BC Shipping News and yet another raft of issues raised, potential leads for your business and information that you will hopefully find entertaining.

One of the most important issues we raise this month comes from Catherine Hofmann at Bernard & Partners and deals with the upcoming transition back to a provincial sales tax. As I read her article, two things struck me (once the headache died down): first, I’m really glad I’m not in charge of the BC Marine Trades Association anymore where part of my job as executive director was to sort through the mess that we used to call the provincial sales tax; and second, I’m concerned that this transition is going to end up costing B.C. taxpayers more than they realize. Catherine does a good job of highlighting some of the intracacies and questions that will need to be addressed to ensure a smooth transition. I urge you to read Catherine’s article and start thinking of how your own business is going to prepare for the change back to PST. April 2013 is closer than you think.

Another relevant article that provides a good update on current and upcoming government regulations is our Industry Insight with Donald Roussel, Director General, Transport Canada Marine Safety and Security.

I have to say that I was quite impressed with Mr. Roussel’s grasp of each issue — especially given that each issue comes with many varying perspectives depending on where you live in the country. And especially given that shipping is a global industry that requires co-ordination efforts with U.S. and international partners like the U.S. Coast Guard or the International Maritime Organization. The balance that Mr. Roussel must exercise on a daily basis is key to ensuring Canadian regulations are fair and in keeping with international standards while meeting the needs of local operations.

I urge you to read Catherine’s ar ticle and star t thinking of how your own business is going to prepare for the change back to PST. If you read BC Shipping News with an eye on current activities and trends, you’ll be pleased with the article on BC Ferries and the detailed outline of upcoming vessel work. We also go beyond our local ferry industry to look at the issues across Canada with a good summary from Executive Director of the Canadian Ferry Operators Association, Anthonie de Hoog. And in terms of trends, the

article from Wärtsilä on the feasibility of engine conversion to LNG will provide you with a good understanding of the details that need to be considered before you start.

To keep up to date on current activities, check out Ray Dykes’ look at the expansion of U.S. coal export terminals or the article on expansion plans underway at Pacific Coast Terminals.

The Industry Traffic section gives some brief updates on current events like a new service centre from MAN Diesel; the B.C. shipping community’s ‘tour guide for a day’ excursion with representatives from the China Maritime Pilots Association; and new moorage arrangements for Seaspan tugs in Victoria.

And for the entertainment value, Lisa Glandt’s article on past ferry services across Vancouver Harbour is great — as is the article congratulating BCIT’s latest graduates of the Nautical Sciences program (entertaining from the point of view that it’ll jog memories of your early years and the start of your own career).

So no matter why you’ve picked up this issue of BC Shipping News, we’re sure our coverage of local, national and international issues, trends and activies will make it worthwhile. We hope you enjoy the news.

— Jane McIvor

Member of: International Sailor’s Society Canada

October 2012 BC Shipping News 5

INDUSTRY traffic Seaspan vessels moor at Ogden Point

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“We are very excited to be moving in to this great location at Ogden Point,” said Robert Hedley, Senior Vice President of Marine Operations at Seaspan. “Vancouver Island and Victoria, in particular, have a deep maritime heritage. This new operations base for our tugs reflects Seaspan’s commitment to servicing the marine industry and the community for many years to come.”

Curtis Grad, GVHA President and CEO, noted that Seaspan’s move to Ogden Point represents an excellent step forward in the continued diversification of marine activity on the site.

“Tug service is critical to the longterm sustainability of our working harbour. We look forward to hosting Seaspan’s working vessels which will help in maintaining a healthy and thriving marine industry in Victoria.”

Three tugs will find a home at the new Ogden Point floats — the Seaspan Foam, Charles H. Cates IV and Charles H. Cates XX. The tugs are used for ship docking and barge work in Victoria and Esquimalt harbours.

Golder and Associates is overseeing the environmental protection measures of the dock installation on the inside of the breakwater. They conducted tests of water turbidity and underwater sound from pile-driving to limit the impact to fish and marine mammals.

Photo credit: Murray Polson

reater Victoria Harbour Authority (GVHA) has signed a 15-year lease with Seaspan Marine Corporation for water and upland space at Ogden Point.

The agreement includes more than 8,500 square feet of water area for a dock and gangway on the inside of the breakwater; a 2,500-square-foot section of the Pier A warehouse to use as a workshop for repairing and maintaining vessels; and a parking area for Seaspan employees.

The initial five-year term runs from August 1, 2012 to July 31, 2017, with two five-year renewal options.

Ogden Point serves as the new home for Seaspan vessels.

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6 BC Shipping News October 2012

ACPA welcomes new executive director

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he Board of the Association of Canadian Port Authorities has announced the appointment of Wendy Zatylny to the position of Executive Director.

In introducing her to members at the Annual General Meeting, Chair Robin Silvester (President and CEO of Port Metro Vancouver) noted that “Wendy is a seasoned, bilingual communications and government relations professional, who brings with her 25-plus years of experience in stakeholder relations, public affairs, media relations and government relations. She joins ACPA after seven years at Rx&D, the association representing Canada’s brand-name pharmaceutical companies, where she led their stakeholder relations and government relations functions.”

While Wendy may be new to ports, she is not new to the marine environment. She is an avid sailor who owns her own boat, and has cruised the Greek islands, the Caribbean and the North Atlantic.

The hiring of the new Executive Director is one of the cornerstones of the governance review and association renewal process the ACPA Board undertook earlier this year.

NEWS BRIEFS Two Canadian MAN PrimeServ shops open to service MAN Diesel & Turbo customers

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lready with 116 shops worldwide, MAN PrimeServ, the after sales company servicing MAN Diesel & Turbo products, opened Numbers 117 and 118 in Halifax and Victoria respectively this past week.

“Business opportunities are growing in Canada and we are excited to be a part of that,” said Wayne Jones, Senior Vice President, Business Unit After Sales.

“Being able to support customers in the same time zone will have a very positive impact on our efficiency and ability to respond quickly when the need arises.”

Jones goes on to say that: “MAN Diesel & Turbo is represented in all key markets and major ports worldwide.

Our hubs are equipped with advanced technologies for repairs and our skilled field service managers provide firstclass technical support 24/7, 365 days a year.

Pierre Poulain, Customer Support Manager, Atlantic Canada, and Riseley D’Souza, Customer Support Manager, Pacific Canada, were both present during a recent reception to meet with key customers and industry representatives in Vancouver. While D’Souza will be based in Vancouver, the service shop will be in Victoria and will operate out of Point Hope Shipyards in their 1,200-square-foot assembly shop.

Hank Bekkering, General Manager, Point Hope Shipyards, expressed great enthusiasm for the new venture.

MAN PrimeServ offers the full spectrum of service packages. From tailor-made operations and maintenance contracts to sole standby support through their service centres. Establishing this presence in Canada is just one more step in MAN PrimeServ’s overall strategy to have

120 full-service locations by the end of 2012.

For more information, please visit: www.mandieselturbo.ca.

Riseley D’Souza, Customer Support Manager, Pacific Canada.

October 2012 BC Shipping News 7

INDUSTRY TRAFFIC B.C. shipping industry hosts China Maritime Pilots Association visit to Vancouver

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he B.C. shipping community played host to a contingent from the China Maritime Pilots Association (CMPA) who were visiting Vancouver in mid-August as part of a multi-city North American tour to gain knowledge about pilotage best practices. Representatives from BC Coast Pilots Ltd. (Captain Fred Denning and Captain Robin Stewart), Chamber of Shipping of British Columbia (Captain Stephen Brown and Aleksandar Novakovic), Pacific Pilotage Authority (Captain Kevin Obermeyer), Port Metro Vancouver (Tom Corsie) and Seaspan Marine Corporation (Captain Doug Towill) were on hand during a harbour tour aboard the Seaspan Raven to give a first-hand look at pilotage practices here on the West Coast.

The six pilots, representing China’s provinces of Shanghai, Guangzhou and Ningbo, are members of the 1,000-plus members of the CMPA, established on January 8, 2008.

Chaired from Shanghai, the CMPA provides for a uniform application of regulations for the entire coast of China as well as a training and knowledge resource for apprentices and working pilots.

In addition to learning about the particulars of West Coast pilotage (regulations, typical voyages, etc.), the tour of the harbour provided an opportunity to see the working harbour up close. The knowledge exchange between the two groups included comparisons of regulations, training requirements and port activities as well as physical features of the shoreline and waters.

Following their two-day visit to Vancouver, the contingent’s tour includes visits to Toronto, Washington, DC, and California.

8 BC Shipping News October 2012

Representatives of B.C.’s shipping community with visiting members from the China Maritime Pilots Association.

LETTER TO THE EDITOR Letter adds to log carrier story Dear Editor, I’d like to clarify and add some commentary to Syd’s story in BC Shipping’s September 2012 issue, “The Passing of the Log Carrier”.

One of B.C.’s most infamous and famous log barges was the Malahat. The Malahat was a wooden five-masted ship built in 1917, at Genoa Shipbuilding in Victoria, B.C. She became famous because of prohibition and was a mother ship for liquor shipping to the USA during this era. The Gibson Bros purchased her in 1934 and converted her to a log barge that year and was in constant use till she floundered off the West Coast of Vancouver Island, March 23, 1944. She had been caught in a gale. She was inspected at Green Bay and declared a total loss.

I will quote from Gordon Gibson’s book, Bull of the Woods, page 120: “The Malahat had been the only selfpowered, self-loading and self-unloading log barge until MacMillan Bloedel built the Haida Brave in 1978 at a cost of $15 million dollars. The Haida Brave cost 6,000 times as much as the Malahat, and carried only four times the cargo at twice the speed.”

The Malahat could load and unload logs weighing up to 40 tonnes each. Gordon Gibson devoted three chapters

in his book to the Malahat, and it was clearly one of their greatest early efforts and victories. While our company records do not indicate the number of trips she made to Powell River, Victoria or other ports, her ship registry records and photos hang proudly in our Delta offices.

I remain, Michael E.Owen, Managing Director Ladner Reach Properties Ed.Note: Check out the March 2012 issue of BC Shipping News for more on the Malahat’s history.

The Malahat, circa 1931.

Photo courtesy of Vancouver Maritime Museum

October 2012 BC Shipping News 9

INDUSTRY INSIGHT

A synergy with the sea Donald Roussel

Director General, Transport Canada Marine Safety and Security

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eing in charge of carrying out Canada’s marine safety and security programs requires understanding, balance and strong will — all attributes that Donald Roussel, Director General, Transport Canada Marine Safety and Security, exemplifies. Coming from a long line of seafarers, and, given that his own career at sea started at the young age of 13 in the Sea Cadets, Roussel’s synergy with the sea provides a foundation that has served him well in his current position.

BCSN: What are the trends you’ve seen in the shipping industry over the past decade? What are some of the challenges we face now and in the future?

DR: The trends we’re seeing right now in the overall marine sector are linked to the health of the economy.

Any fluctuations in worldwide market demand will impact on shipping overall — from heavy public debt in EU countries to higher fuel prices due to political instability in some parts of the world. The world is adjusting to a new modus operandi and the overall challenge is to keep pace with the demand in commodities, energy and different product sectors including the demand in leisure sectors like cruise. This all puts significant pressure on the ports

10 BC Shipping News October 2012

and coastal nations and there is a need to adjust accordingly.

The Conference Board of Canada’s February 2012 report, The Outlook for Canada’s Transportation Sector, anticipates soft economic growth in Canada that could be derailed by global events.

The report further comments that Canada’s marine shipping industry was hit seriously by the recession and is still recovering. The drop in U.S. demand for commodities hit the industry hard.

The world is adjusting to a new modus operandi and the overall challenge is to keep pace with the demand...

Another pressure on the industry is that the average age of the workforce is higher than that found in other transportation modes. For instance, the Conference Board report noted that more than 20 per cent of water transportation workers were over the age of 55 (based on the 2006 census).

Then there are the sensitivities to the environmental impact of shipping and the public’s concern over any detrimental activities. Clean air and water are at the highest level of our attention.

It has taken a significant amount of effort to maintain and minimize the environmental impact of shipping sectors. That’s a bit of a segue to the Brander-Smith Report of 1991 — in the second paragraph of the Forward, the three authors of the report noted: “as we travelled throughout Canada, we were shocked by the extent to which our coastal and inland waters are polluted.”

If you did a tour of Canada’s waterways today, I don’t think you would see this.

This is the result of improvements in the regulatory regime on all fronts, especially through International Maritime Organization (IMO) conventions including port-state control.

Agreements such as the Asia-Pacific MOU or the Tokyo and Paris MOUs provide a significant amount of coverage of all vessels in our country and ensures that they are all meeting international standards.

Another challenge, for Canada in particular, is the increased interest in Arctic shipping. The melting ice gives access to a longer season but it also frees up multi-year ice which flows down through the archipelago and increases risks in navigation. Ships need to be built better and crew need to ensure they have proper training to

INDUSTRY INSIGHT Photo credit: D.Roussel

be able to make it through those areas.

To address the anticipated increase in traffic, for example, Canada made the Northern Canada Vessel Traffic Services Zone Regulations, or NORDREG, compulsory as of July 2010; and we are co-ordinating the newly defined Arctic NAVAREAS/METAREAS numbers 17 and 18 (covering the Canadian Arctic, the northern Alaska coast and part of the Greenland coast) as well as providing navigational and meteorological warnings and forecasts to mariners.

Canada (represented by Transport Canada) is also an important player in advancing the development of the Polar Code through the IMO. Within an organization like the IMO there is a hierarchy of documents — guidelines, then codes, then conventions. The goal is to ensure there is an agreed instrument with which you can work. We’ve seen some conventions that weren’t necessarily ratified but became a benchmark for countries anyway. In the context of the Polar Code, Canada already has the Arctic Waters Pollution Prevention Act and the Arctic Shipping Pollution Prevention Regulations that were put in place back in 1970 and even today they form one of the most comprehensive regulatory regimes in the world for Arctic waters.

BCSN: Are you seeing any progress at the IMO level in moving the Polar Code forward?

DR: One of the challenges with the IMO is, because of its sheer size —more the 160 member states — it’s hard to find the interest to develop a code that will apply to a limited number of countries (i.e., coastal states around the Arctic) but I don’t think that should stop our efforts to have, at a minimum, a level playing field like the Polar Code.

BCSN: My understanding is that we’re still years away from regular shipping routes — is this your opinion as well?

DR: Since 2000, some of our clients have reported a 500 per cent increase in the volume of cargo going through eastern portions of the Arctic. These are eastern-based companies who are now enjoying a significant amount of free water west of the Northwest Passage — up to six weeks beyond the regular season. It opens up good opportunities but the change in the pattern of trade

Mr. Roussel speaks to attendees at the 13th Asia-Pacific Heads of Maritime Safety Agencies Forum (July 2012). can be a challenge — for example, different stakeholders operating in areas where they’re not familiar with the conditions they may face. Part of our work includes a big co-ordination effort with the Canadian Coast Guard (CCG) and other stakeholders in the Arctic Sealift discussions as well as discussions with ship operators to ensure they have a good understanding of what will happen over a season.

Then there is the destination shipping for resource development and research as well as an increase in interest in adventure and leisure travel. We also need to ensure we maintain our co-ordination efforts with the U.S. on safety, security and environmental stewardship. There is the Beyond the Borders initiative within our security portfolio as well as other elements regarding safety standards. We enjoy a good relationship with the U.S. Coast Guard and have had a lot of discussions with them in the past.

BCSN: Let’s look at the security side of your department for a minute — this is a new portfolio for you.

DR: The marine security portfolio is very complex and requires the full co-ordination of many partners — National Defence, Coast Guards, Border Security, Fisheries and Oceans, to name a few. A good example is the Marine Security Operation Centre where we have full-time staff in the operation centres in the Great Lakes, Esquimalt and the Atlantic. They are mainly operated by DND (for both coasts) and the RCMP (on the Great Lakes) and we partner with them on “marine domain awareness”. It’s been a very successful venture and we’re praising our partnerships — DND has maintained significant capacity on this as has the RCMP. We’re used to having multiple business lines and this new portfolio has been a natural merger for us. The stakeholder base is similar which will allow for a one-stop shop when it comes to client services and it also helps in dialogue with our U.S. partners, especially the U.S. Coast Guard who provide much of the lead for compliance and enforcement in marine safety, security and stewardship (which, like Canada, October 2012 BC Shipping News 11

INDUSTRY INSIGHT example, the shipbuilding portion of the portfolio.

BCSN: Are you on track for meeting the goals within the New Wave strategy?

DR: Marine Safety’s vision describes our goal to be a safe, sustainable and environmentally responsible marine community recognized worldwide as a leader. To achieve this, we set out four objectives: • consistent and effective compliance and enforcement activities; • education and awareness of safe and environmentally sound marine practices fuelled by an understanding of risks and their proactive management; • continuous improvement, effective leadership and sound management practices in program delivery; and • harmonized and effective Marine Safety policy and regulatory framework focused on performance and risk management.

We have made good progress in achieving these four objectives. Initiatives like working with industry to advance the development of authorization and monitoring processes for Safety Management Systems (SMS); the annual National Integrated Inspection and Certification Plan for commercial domestic vessels; and the Revenue

Photo credit: P.Nelson

is done in co-operation with the Environment Department). So there is a synergy and a similarity in how we want to operate.

BCSN: How does the merger of the security portfolio fit in with Transport Canada Marine Safety’s New Wave strategic plan that was published in 2009?

DR: The New Wave takes us up to 2015 and the Security portfolio has a vision document that goes to 2020. At this juncture, we have been meeting our objectives within the New Wave strategic plan. The challenge right now is to stabilize the organization in its new format — it means bringing over 800 employees together and adjusting our operations appropriately. For the remainder of this fiscal year and a portion of the 2013/14 fiscal year, we will be in a transitional phase followed by discussions with stakeholders on how they would like to see us move forward. This will likely take us through to 2014/15 at which point we can combine the vision and statements to take us to 2020. The goal is to maintain and continually improve upon services to stakeholders. We need to make sure we’re able to respond to the needs of stakeholders in areas of increased activity and have the appropriate resources in place to support that — for

Donald with Captain Phill Nelson, President of the Council of Marine Carriers.

12 BC Shipping News October 2012

Generation and Sustainability Strategy to review and update Marine Safety fee structures are all being undertaken with these four objectives in mind.

One of our main goals this year will be to move forward with the amendments to the Marine Transportation Security Regulations (MTSRs). Phase I of the MTSR amendments is focused on responding to Canada’s obligation to implement new IMO requirements, further harmonization with the United States’ regulatory regime, reducing industry’s regulatory compliance and financial burdens, and addressing both interpretation issues and regulatory gaps. We have consulted with industry and other government departments and are now working towards implementation.

We are also working on the Perimeter Security Action Plan initiative which is the development of a framework, with the U.S., to jointly manage the movement and recovery of marine commerce and traffic in the event of a major disruption. As the first step in developing this framework, a pilot project is being conducted in the British Columbia Lower Mainland-U.S. Pacific Northwest region with the collaboration of the Pacific Northwest Economic Region, a cross-border public-private partnership of governments and businesses.

The outcome of this pilot, which is on track to be completed this year, will be the creation of preliminary planning guides, communication and information-sharing protocols that will guide similar work to be undertaken in the Atlantic and Great Lakes regions beginning in 2013.

And finally, we are looking to expand the Joint Initial Verification Project to include safety inspections, in conjunction with the U.S. Coast Guard. Once the pilot project in the St. Lawrence Seaway is complete, we hope to apply the lessons learned to other parts of the country in order to facilitate the crossborder movement of ships and goods, and the harmonization of regulatory requirements.

BCSN: Regarding Safety Management Systems, you conducted a successful pilot project with the Council of Marine Carriers to test a Domestic Safety Management Program. There was hope that the Program

INDUSTRY INSIGHT

A performance-based approach has completely changed the way of looking at regulations.

Our objective right now lies with vessels of 24 metres and above in order to enhance the delegation of those vessels. That will be part of what we’ll be announcing — to have more third parties coming in to leverage the work. We need to have a level of comfort that we have good control over delegation to be able to fill the gap between the ship owners’ needs and our (i.e., the regulator’s) needs.

Photo credit: BC Shipping News

would be continued and expanded but instead you opted for the Blue Decal Program (largely a self-declaration system).

Could you provide an update on where that stands now?

DR: The Blue Decal program allows small vessel owners to engage with the Ministry to demonstrate conformity with the regulations. You still need to meet the requirements of the regulations but we do not issue certificates.

For those smaller operations, it’s been very successful. If you look at last year’s report on the National Integrated Inspection Certification Plan and the Small Vessel Compliance Program, we were already 72 per cent on target in the first quarter. We have an overwhelming number of applicants that are adopting the regime. It’s been a very good success except that we need to be able to respond to demands on follow up and help stakeholders maintain their compliance.

The portion of the project dealing with a delegation program showed us that we have to do an adjustment on how we move forward. It was a dialogue between the ship owners and us, the inspection regime, without a third party. At the end of the day, there was a challenge in the industry to take on the level of risk that was attached to certain portions of the requirements. For us, it was a good learning experience. We found that within the different companies, the level of knowledge varied a lot. We had to pause at this point to analyze how fast we can move forward on this. At this point, we’re still in the analysis phase.

Donald with Kaity Arsoniadis-Stein, President and Secretary-General, International ShipOwners Alliance of Canada, and Vija Poruks, Assistant Commissioner, Pacific Region, Canadian Coast Guard.

BCSN: When TCMS brought in the CSA 2001, you moved away from regulations that were “prescriptive” to “performance-based”. Could you describe how this has impacted on: first, your operations and handling of regulations; and second, the industry and their response to these changes?

DR: A performance-based approach has completely changed the way of looking at regulations. It has required a significant amount of dialogue. A good example is the establishment of the Emission Control Area — that was presented as prescriptive and now operators are seeking performancebased goals. On the Great Lakes, we took the performance approach right away with things like fleet averaging.

We embraced that discussion with our ship owners as well as with the U.S. Environmental Protection Agency from the start. It has been a long dialogue and very challenging but at the end, we were able to close the deal to the satisfaction of a large number of operators and now we’re just waiting for the regulations to be published in Gazette II. That’s a concrete example of how we set the objective and then asked the industry how they intend to comply.

By giving them operational flexibility, they can better respond to customer demands, fleet renewal, changes in technology and also be able to better plan their investments which can

be significant when it comes to a capital investment like a ship. Some other regulations are more challenging but accepting equivalent regimes is acceptable to us.

The delegated statutory inspection program is another example. Ship owners work with classification societies to be able to present to us a regime that is equivalent to the actual regulatory regime. It is then vetted through a marine technical review board. Once we’re satisfied that the regime is equivalent (and often it is more aligned with internationally acceptable standards), the ship can operate in Canadian waters. There’s always the caveat that there might be a Canadian supplement — for example, recommendations from the Transportation Safety Board or additional requirements for harsh winter or Arctic conditions but overall, it simplifies compliance and enforcement whether the vessel is travelling abroad or in domestic territory.

BCSN: How are you managing budget challenges? There was a rumour that one of the Transport Canada Centres (TCCs) on Vancouver Island was going to close — is that true?

DR: No, it’s not closing. The only thing we’re doing there is within the management of the TCC — we’re asking managers to manage a couple of centres. This isn’t new — across the country we already have managers who October 2012 BC Shipping News 13

INDUSTRY INSIGHT oversee two or three TCCs. The centre itself stays open.

While budget impacts are always a challenge, we’ve been carefully reviewing our program delivery and organizational structure for the past several years with an eye to modernizing much of our program delivery.

For example, centralizing some services that are normally dealt with by mail or the Internet. Ships Registry, for example, will be centralized by next year.

BCSN: You mentioned ECA earlier — are we still on track for a November timeframe for implementation? My understanding is that there are still a number of issues to be resolved, including supply and a definition of reasonable efforts to comply (e.g., how far back on a ship’s voyage would it be deemed appropriate to obtain low-sulphur fuel before entering the North American zone).

DR: Yes, we’re still aiming for November. We’re currently within the 75-day comment period and still receiving input from stakeholders. It’s a significant adjustment for operators and situations will occur. Regarding supply, Transport Canada is not in the business of offer and demand and we believe that if there is demand, the fuel will be there. For tramp-type voyages, there will be situations that will need to be assessed on a case by case basis

14 BC Shipping News October 2012

but those who want to trade on the North American continent will need to resolve these. At this juncture, we’re still developing the guidelines and are still in dialogue with the industry.

From an efficiency perspective, I believe the IMO is one of the most resultbased organizations in the U.N. family.

BCSN: With the U.S. regulations already in place, have you heard of any issues there regarding implementation or compliance?

DR: We are in contact on a regular basis with the U.S. on this and, so far, we have not heard that it’s been a total nightmare. I would not say it’s running smoothly but we have not heard a significant amount of concern other than perhaps the cruise operators who are trying to take a more objective-based approach. This is still a challenge — especially for vessels that operate completely within the ECA. BCSN: Looking at other regulations related to the environment — greenhouse gases, the Energy Efficiency Design Index and the Ship Energy Efficiency Management Plan, Ballast Water Control and Management, etc. — are there any new developments?

DR: We share the environment portfolio with Environmental Policy (Pierre

Marin is the Director General). We assist Pierre as part of the delegations that represent Canada at the IMO’s Marine Environmental Protection Committee (MEPC) meetings. We follow discussions very closely and participate on a number of working groups.

We’re actually leading the discussions on market-based measures. IMO discussions are still ongoing on how to achieve a reduction in greenhouse gases so it would be premature for us to take a position at this point but our overall support to the IMO is pretty extensive, including the link with the U.N. Framework Convention on Climate Change (UNFCCC). The IMO is the most appropriate vehicle to deal with discussions that focus on climate change issues and the marine sector.

The challenge is that it has a large sector base and there is a polarization of ideas among certain groups. To untie those Gordian knots is taking a lot of discussion and a strategic approach.

I think we’ve been very clear in our initiatives — for example, the establishment of the ECA — and have demonstrated that we’re moving forward very strongly. There are challenges in finding the right balance between what we are promoting at UNFCCC and what we are also supporting with the IMO and MEPC discussions. The goal is to have the best balanced approach that delivers on tangible results. The worst thing that can happen is the perception that IMO efforts do not result in tangible results. From an efficiency perspective, I believe the IMO is one of the most result-based organizations in the U.N. family.

Regarding greenhouse gases, Canada committed $48 million in the 2011 budget for Clean Transportation Initiatives as part of the Clean Air Agenda.

Through this, we are focusing on aligning Canadian regulations with U.S. and international standards to improve the efficiency of our transportation system and promote green technologies.

Regarding the EEDI and the SEEMP, both were part of our proposed air emissions regulations this past spring so we will be ready by January 2013 to implement these.

BCSN: How are we doing overall in keeping Canada in line with the international

environmental standards and guidelines set by the IMO? DR: We ratified 11 IMO conventions between 2009 and 2010 that address air and water pollution from ships in Canadian waters and ensure the safety of vessels, goods and workers in the marine sector. As well, Canadian regulations have fully incorporated all Annexes to the MARPOL Convention. Our Ballast Water Control and Management Regulations implement most of the Ballast Water Convention and when this convention comes into force — estimated to be within the next two years — we’ll be adopting the remaining standards that set out when ships must fit treatment systems.

The structure of the IMO is such that it works on high-level policy and direction but also develops a significant amount of technical requirements to make the policy applicable. That’s the strength of such an organization — its ability to develop standards that are very technical in nature is the result of a lot of discussion. For our part, being an active participant in the discussions allows us to report back to Canadian stakeholders (through the Canadian Marine Advisory Council) and gather feedback which we then communicate back to the IMO. Within the IMO, from the time a decision is adopted to the time it is put in place, usually takes between 12 to 18 months. That’s where we need to accelerate our regulatory development and be able to follow up as those new requirements come on stream.

[The Maritime Labour Convention] will lead to a significant improvement on the quality of life of seafarers.

BCSN: Another aspect of the IMO is its work on training and crew conditions — conventions like Safety of Life at Sea (SOLAS) and the Standards of Training, Certification and Watchkeeping (STCW).

Could you describe how Canada is keeping up with aligning our regulations to those?

DR: Yes, there are new developments in this area as well. First, there are the Manila Amendments for the STCW and we’re currently consulting with October 2012 BC Shipping News 15

INDUSTRY INSIGHT that the modified Marine Personnel Regulations will come into force in 2013.

There is also the Maritime Labour Convention (MLC) through the International Labour Organization which

the Canadian marine community to amend the Marine Personnel Regulations in order to implement the changes. So far, the response from marine training institutions has been positive and supportive of the changes. We anticipate

was just ratified by the Philippines.

They were the 30th country to do so — this represents 60 per cent of global shipping — so the Convention will enter into force in August 2013. This will lead to a significant improvement

About Donald Roussel

1974 — Donald at CFB Quadra in Comox, B.C. (second row, second from right sitting).

Photo credit: D.Roussel

16 BC Shipping News October 2012

Photo credit: D.Roussel

D

onald Roussel got an early start on his career in the marine industry.

After joining the Sea Cadets at the age of 13, he took his first trip out to B.C. the following year to the HMCS Quadra in Comox, British Columbia. The year after that, 1975, he travelled to Halifax for a bosun’s course and then back to B.C. for on-the-job training at the Boat Shed.

“By the time I was 16, I’d had the chance to travel coast to coast to coast and it helped me understand the sea and the ports and the extent and diversity of this country,” he said. While coming from a long line of seafarers (his mother is part of the Perron family of Saguenay, who operated in the Lower St. Lawrence during the French regime), his experience in the Cadets was instrumental in his decision to follow a career at sea. At the age of 18, Donald started a marine engineering program in Rimouski.

Mr. Roussel was appointed Director General, Marine Safety (and now Security), Transport Canada, in October 2008.

His responsibilities include developing, co-ordinating, enforcing and managing national safety legislation, policies, standards and regulatory controls governing Canada’s marine transportation and pilotage systems and services; managing the Navigable Waters Protection Program; approving environmental response systems; regulating and licensing of vessels; examining and certifying seafarers; and establishing and maintaining international liaison.

Mr. Roussel is Chairman of the Canadian Marine Advisory Council and the Canadian representative at numerous International Maritime Organization and International Labour Organization meetings for the marine sector.

Before joining Transport Canada in 1988, Mr. Roussel worked as a Marine Engineer for Canadian and foreign com-

1975 — Donald at CFB Halifax (bottom row, far right). panies. From 1988 to 2000, he served as Senior Surveyor and Manager of the Transport Canada Centre in the Quebec region.

He joined the Headquarters’ Marine Safety Directorate in 2000 as Manager, Marine Occupational Health and Safety and then became Director, Personnel Standards and Pilotage. In January 2007, he became Executive Director, Regulatory Services and Quality Assurance, until his recent appoint-

ment as Director General, Marine Safety.

He holds a Master’s degree in Maritime Resources Management, Marine Transportation, as well as professional certifications as First-Class Certificate Motor Vessel and Second-Class Certificate Steam Vessel.

Donald has been married to Claudine for 28 years and has two daughters, Laura and Joée.

INDUSTRY INSIGHT on the quality of life of seafarers. I was the lead negotiator of the nine sessions of the development of the MLC in 2006 and Canada was the 10th country to give ratification. It’s another step in the right direction to maintain a high level of working conditions for seafarers including things like safety and operations of vessels. We have already started work within the ILO to engage in discussions for potential amendments or additional guidelines — for example, training for inspectors to be ILO-accredited. We’re adjusting our own port-state control training to be able to apply the convention when it comes into force and we’re also developing certificates of compliance and declarations of compliance for our domestic vessels.

BCSN: Looking at labour supply, do you anticipate a shortage within the marine industry? And following that line of thought, will you be changing the way foreign worker certificates are accepted?

DR: It’s currently within the Canada Shipping 2001 Act (section 89) how we accept foreign workers and we can accept equivalent or superior certificates already. But we are not the gatekeepers for this policy — that rests with the Department of Human Resources and Skills Development Canada (HRSDC). If a company feels it has a need for immigrant workers in the marine sector then they need to follow the process through HRSDC, including a labour market analysis to demonstrate demand.

BCSN: This leads me to ask about the issue of the criminalization of seafarers through the Migratory Birds Act. Have there been any prosecutions yet?

DR: No prosecutions yet. It’s a very delicate subject and until you have an actual case, you cannot say that Canada is a place where there is criminalization of seafarers. It would be a terrible thing at this juncture.

BCSN: A hot topic on the West Coast has been the debate over tanker traffic. Do you have any insights into this issue?

DR: Appearances in front of the Joint Review Panel on the Enbridge Northern Gateway Project are scheduled for later this year. Again, it’s an extremely delicate situation and I don’t think it would be appropriate

to discuss before we have made those presentations.

BCSN: A recent report from the Commissioner of the Environment and Sustainable Development called for better oversight of compliance with regulations.

How is Transport Canada responding to the concerns expressed?

DR: We take the recommendations and findings in the audit very seriously and are aggressively undertaking

the Management Response and a Management Action Plan. It’s important to recognize though that the Transportation of Dangerous Goods program continues to be very successful in preventing incidents. There are over 30 million shipments of dangerous goods every year in Canada with 99.999 per cent reaching their destination without incident.

BCSN

About Transport Canada, Marine Safety and Security

T

he Marine Safety program protects life, health, property and the marine environment in the context of an efficient and sustainable marine transportation system worthy of public confidence.

The Marine Safety program develops and administers a national program supported by approximately 620 employees and a budget of approximately $65 million to serve Canadians. Our mandate includes the full spectrum of responsibilities related to the safety of vessels, pleasure crafts and environmental protection. We: • Develop, administrate and enforce national and international laws and policies governing marine safety, and the protection of the marine environment; • Promote safe practices and procedures; • Develop and maintain regulations, examinations, and training standards for the certification of seafarers — including issuing Certificates of Competency; • Respond to marine occupational safety and health issues; • Maintain a Canadian vessel registry; • Deliver an internal technical training program to our program’s inspector community; • Deliver prevention-based programs to promote small vessel/recreational boating safety; • Conduct research in the marine transportation sector (e.g. safety equipment); • Administer the navigable waters protection program; and • Oversee pilotage matters.

The Marine Safety program derives its authority from numerous Acts which include the Canada Shipping Act 2001, Arctic Waters Pollution Prevention Act, Navigable Waters Protection Act, Transportation of Dangerous Goods Act, Safe Containers Act, Pilotage Act, Canada Labour Code Part II, and Coasting Trade Act. In addition, Marine Safety is required to enforce a variety of international conventions, to which Canada is a signatory. These conventions apply to foreign vessels in Canadian waters and to Canadian vessels trading internationally.

The Marine Security Directorate is responsible for marine security policy, marine security regulatory affairs, and marine security operations, as well as functional authority for regional marine security operations through the Regional Directors.

Through the Interdepartmental Marine Security Working Group, this Directorate has a lead role in the co-ordination of government-wide marine security initiatives. It is also responsible for the Marine Security Contribution Program.

For more information, please visit: www.tc.gc.ca.

October 2012 BC Shipping News 17

HISTORY LESSON Crossing Burrard Inlet:

From row boats to the SeaBus

By Lisa Glandt

Librarian/Archivist, Vancouver Maritime Museum

T

he history of navigating the busy waters of Burrard Inlet dates back to 1866 when one of Vancouver’s early pioneers, John “Navy Jack” Thomas took paying passengers across the inlet by rowboat. A few short years later, ferry boats began providing regular service across Burrard Inlet. From 1868 to 1873 a small steamer called Sea Foam operated between Vancouver and the north shore at Moodyville. Other boats soon followed on the route including the Chinaman, the Lily, the Elonora and the Senator.

The municipality of North Vancouver paid Union Steamship Co. $100 per month for the service which ran until 1899.

The first scheduled ferry service between Vancouver and North Vancouver started in 1893 when the Union Steamship Company signed an agreement with North Vancouver to make six return trips a day across Burrard Inlet. The municipality of North Vancouver paid Union Steamship Co. $100 per month for the service which ran until 1899. North Vancouver then took over servicing the route and had the

steam-powered ferry Norvan (later known as the North Vancouver No.1) built in 1900. In 1903, the ferry service was sold to the North Vancouver Ferry and Power Company. In 1904, the St. George (later the North Vancouver Ferry No.2) was built and added to the route enabling car transport. A few short years later North Vancouver resumed control of the ferry service and operated it as a public utility. Demand for service quickly grew and in 1911 North Vancouver Ferry No.3 was launched. Over the coming years, North Vancouver Ferry No.4 and North Vancouver Ferry No.5 would be added to the route. The ferry service ended in 1958 due in part to the completion of the new Second Narrows Bridge. Over a span of 40 years, North Vancouver Ferries carried 112,466,693 passengers across Burrard Inlet.

Ferry service to West Vancouver began in 1909 guided by the efforts of John Lawson and W.C. Thompson. Their first vessel, West Vancouver No.1 carried 35 passengers from the foot of Columbia Street to the West Vancouver terminus at the foot of 14th Street (Ambleside). In 1912, the Municipality of West Vancouver purchased the company and over the years added the vessels Doncella, Sonrisa, West Vancouver No.5, Photos courtesy of the Vancouver Maritime Museum

The Senator, circa 1890.

18 BC Shipping News October 2012

West Vancouver Ferry No.5.

VANCOUVER MARITIME MUSEUM promoting the benefits of a cable ferry, the idea was turned down. In 1977, the Transportation Division of BC Hydro began operating the SeaBus ferries across Burrard Inlet, taking passengers on the same historic route taken by the first Vancouver-North Vancouver ferries. The success of the SeaBus today can be measured by its continued service for the past 35 years, transporting

millions of passengers each year across Burrard Inlet.

Lisa Glandt has been the Librarian/ Archivist for the Vancouver Maritime Museum since 2007. She started volunteering at the museum in 1999 sharing maritime stories with school children and now she preserves the stories. She can be contacted at archives@vancouvermaritimemuseum. com.

CANADA

The steam-powered Norvan, later known as the North Vancouver No.1.

West Vancouver No.6, Bonabelle, and Hollyburn to the route. The 20-minute trip across Burrard Inlet was used by regular commuters, hikers, and skiers heading to Hollyburn Mountain. In 1930, the municipal ferry line reported that it transported 261,699 passengers in just four months! Despite popular use, the passenger numbers began to decline after the Lions Gate Bridge was completed in 1938 and commuters took to their automobiles. In 1947, the West Vancouver ferry service ceased operations.

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The success of the SeaBus today can be measured by its continued service for the past 35 years, transporting millions of passengers each year across Burrard Inlet.

In 1968, Harbour Ferries Ltd. revived service between Vancouver and North Vancouver for a short time, charging $0.50 each way for foot passengers.

At the time, they also proposed a cable ferry across the entrance of the inlet: a barge-like, steel-hulled vessel that could carry up to nine transit buses, trucks or trailers plus foot passengers. It would move on an endless cable loop suspended 60 feet below the water’s surface and operate back and forth across the inlet for 16 hours a day, thereby easing traffic congestion.

Despite interest and media support

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October 2012 BC Shipping News 19

CRUISE North American ECA

The cruise lines’ perspective

By Donna Spalding, North West and Canada Cruise Association

T

he member cruise lines of the North West & Canada Cruise Association support the goals and principles of the North American Emission Control Area (ECA). We are committed to protecting coastal air quality not only because it is the responsible thing to do, but also because the very nature of our business depends on a healthy natural environment.

NWCCA is proud of the stewardship of our member lines and the fact that this industry currently outperforms all applicable international and Federal air emissions requirements wherever the ships operate.

Background On August 1, 2012, the 200-nautical mile North American Emission Control Area (ECA) came into effect around the U.S. and Canadian coasts, with the exception of the Aleutian Islands and certain other outlying areas. As of this date, ships operating within this zone are required to use fuel containing no more than 1.0 per cent sulphur. By January 1, 2015, ships will be required to use fuel containing no more than 0.1 per cent sulphur.

Allowance for alternative compliance is contained within MARPOL Annex VI for technologies such as exhaust scrubbers, shore power and operational equivalencies.

20 BC Shipping News October 2012

Industry support of ECA A fundamental goal of the ECA is to reduce the human health and welfare impact of all shipping on coastal areas — the cruise industry fully supports this goal and are compliant with its associated regulations. Our member lines have had numerous and extensive meetings with the EPA and Transport Canada to determine how they can work within the framework of the existing regulations to minimize the impacts on human health and welfare.

A global industry, cruise also wants to minimize the economic and job-related impacts of the ECA...while meeting or outperforming its related health benefit goals.

Regulatory impact In the United States, the EPA has been reluctant to consider equivalencies that are available to industry under MARPOL Annex VI. This approach could result in higher impacts on human health than could be achieved using other innovative alternative strategies for compliance.

There are also significant concerns about the cost, as well as current and future availability of ECA-compliant fuel in

various regions. Should ECA-compliant fuel, in the specific form of diesel fuel, be the only alternative within the entire ECA, the shipping industry will compete with land-based businesses for the same fuel supply, further driving up the cost of compliance.

The net result of higher fuel costs and a rigid approach to regulation will be to create an incentive for cruise lines to re-deploy ships to other markets.

The industry’s perspective We believe that cruise lines should be allowed to deliver equal or better human health and welfare benefits while minimizing the possible economic impact of lost cruise business on coastal communities.

Cruise lines are evaluating a range of compliance approaches designed to provide greater benefits to more people.

A global industry, cruise also wants to minimize the economic and job-related impacts on coastal communities as a result of the ECA, while meeting or outperforming its related health benefit goals.

Without the benefit of alternative compliance measures, the industry projects the number of cruise passengers visiting North American ports would fall by 2.2 million, resulting in a loss of 14,000 jobs and an annual loss of $1.5 billion to local economies.

CRUISE The industry’s proposal — achieving a better outcome The cruise industry has proposed a variety of flexible approaches that can be utilized to achieve equal or better health benefits, including averaging based on air quality, innovative exhaust scrubbers, using alternative energy sources such as shore power in port, and adjusting ship speeds.

One approach is weighted averaging based on air quality. Under this approach, participating cruise ships would consume lower sulphur fuels where the environmental and human health benefits are greatest, such as when in or near ports, and utilize conventional fuels where the benefits are minimal, such as in open seas or away from population centres. Further, under the proposed approach, no community would be subjected to higher emissions from a cruise ship and the global limits on sulphur content would continue to apply to all fuel consumption.

NWCCA members are part of an initiative which commissioned ENVIRON International Corporation to undertake a study on the effectiveness of this approach for ECA compliance.

ENVIRON developed a customized software program that tracks shipoperating parameters and calculates resulting fuel consumption and emissions for a number of cruise itineraries within the ECA. Human health impacts of particulate matter (PM) and sulphur oxides (SOx) emissions were then estimated using state-of-the-art atmospheric modelling techniques.

Model results were used to calculate a weighting factor proportional to the emissions impact for each segment of the ship’s voyage. The calculations take into account atmospheric chemistry, meteorological conditions, and geographic data when quantifying emission impacts. The equivalence of complying with the ECA regulation is demonstrated when the impactweighted average emissions for a ship or fleet of ships, operating on a given set of itineraries using a combination of fuel types, are shown to be less than or equal to what they would have been had the ships relied solely on fuel sulphur content to comply throughout their voyage.

ENVIRON conducted these modelling equivalency demonstrations for several different cruise itineraries throughout the ECA and determined that weighted average emission impacts can be reduced in an economically efficient manner below levels achieved using ECA-compliant fuel alone by using a combination of fuel types during the voyage. For example, based upon 2012 scenarios: • A typical cruise ship on a seven-day roundtrip to Alaska from Seattle using a combination of fuel types that satisfy the ECA requirements on a weighted average basis generated nine per cent less particulate matter and SOx impact at a 41 per cent compliance cost savings as compared to the same ship consuming ECA-compliant fuels alone during the entire voyage; • A typical cruise ship on a 10-day roundtrip from New York City to Quebec using a combination of fuel types that satisfy the ECA requirements on a weighted average basis generated four per cent less particulate matter and SOx impact at a 19 per cent compliance cost savings as compared to the same ship consuming ECA-compliant fuels alone during the entire voyage; and • A typical cruise ship on a Hawaiian inter-island itinerary using a com-

bination of fuel types that satisfy the ECA requirements on a weighted average basis generated seven per cent less particulate matter and SOx impact at a 50 per cent compliance cost savings as compared to the same ship consuming ECA-compliant fuels alone during the entire voyage.

Concluding Thoughts The International Maritime Organization (IMO), the United Nations agency that created the North American ECA at the request of the United States and Canada, specifically endorses the deployment of alternative strategies that are “at least as effective in terms of emission reductions”.

The IMO supports the ECA concept and in developing this global legislation recognizes the need for variation based on regional needs. As a global industry we are committed to global regulation.

The cruise industry proposes that EPA and Transport Canada allow cruise lines to fully embrace the range of compliance options under the IMO’s regulations. Further, they should facilitate and support all innovative approaches that are being developed to deliver equal or better human health benefits while minimizing the economic impact upon the North American ECA on coastal communities.

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October 2012 BC Shipping News 21

ferries

BC Ferries’ fleet maintenance report

The Queen of Chilliwack recently underwent a major life extension.

Photo courtesy of BC Ferries

I

review of recent projects, upcoming new projects and an overview of some of the issues that “are always top of mind”.

n looking at upcoming work on BC Ferries’ fleet, Mark Collins, Vice President, Engineering, expects to spend $60 to $80 million during the 2012-13 fiscal year. “Most of this falls within the scope of capital and refit work which will continue for the next couple of years,” said Collins.

“The really big projects come in 201516 when we start on major mid-life upgrades for four vessels and next year, we begin with the concept development and design for new builds that will replace three vessels plus the proposed addition of a cable ferry for Denman Island.”

In an exclusive interview with BC Shipping News, Collins provided a

...Collins provided a review of recent projects, upcoming new projects and an overview of the some of the issues

Photo courtesy of BC Ferries

that “are always top of mind”.

Mark Collins, Vice President, Engineering.

22 BC Shipping News October 2012

Looking back over the last 12 months: Queen of Chilliwack: major life extension. “It’s an older ship operating on Route 40 in the north. It was getting to the point where we didn’t feel the ship was reliable enough to meet our terms of the contract and our commitment to the people within the northern route, so the prudent thing to do was a life extension,” said Collins.

Improvements were made to the stability control of the vessel and the cargo flood control doors; upgraded accommodations for crew and passengers; the main mechanical systems were overhauled; and coatings were renewed.

The work was done in two five-month phases with the second phase completed this past spring.

“One of the big technical challenges was a complete electrical upgrade, including new generators, new switchboard system and propulsion system controls,” noted Collins. “In total, we invested $15 million through a cost recovery agreement with the B.C.

Government. Without this substantial investment, the Chilliwack would have needed to be retired.”

M.V. Kahloke (Hornby Island Route) upgrade: A new propulsion system and complete new right angle drive units were installed as well as new controls, state-of-the-art evacuation systems, alarm and monitoring systems, a new suite of navigation equipment and a sewage pump ashore system as well.

Queen of Burnaby refit: “An elder statesman that is scheduled for retirement in 2016,” said Collins. “But to get her there, for safety and reliability, we did quite a bit of work on the hull steel, the propellers, the shafting and the coating.” The refit also included an overhaul of the main machinery — engines, bow thrusters, etc. — in the 12-week project at Esquimalt Dry Dock (Joe Sansalone’s company).

Bowen-Class vessels: A series of projects were completed for the Bowen Queen, Mayne Queen and Powell River Queen. “They’re the stalwarts of our fleet,” said Collins. “They’re great ships that quietly go about doing their job with great service but they were getting tired in terms of their passenger accommodations, especially on the Bowen Queen, it was a bit like going back in time to the 1970s.” Upgrades were done to improve safety and passenger comforts — washrooms, lighting, new seating, flooring and evacuation systems. “It’s much more in line with the

ferries Photo courtesy of BC Ferries

The Spirit-class vessels (above, the Spirit of British Columbia) are scheduled for major mid-life upgrades in 2015-16.

Photo courtesy of BC Ferries

higher standards passengers have come to experience.”

When asked how decisions are made on whether work is done internally or sent out to commercial suppliers, Collins noted that BC Ferries doesn’t have a drydocking facility so, while not always the case, floating refits are done in-house and work that requires a drydock is sent out.

Looking forward, there are 14 projects on the books — five major ones going into drydock and nine floating projects slated for BC Ferries’ Richmond yard. It’s mostly all refit work to ensure the ships stay in good condition. The Queen of Coquitlam, Coastal Renaissance, Queen of Cowichan, Queen of Cumberland, Queen of New Westminster, Northern Adventure, Queen of Oak Bay and Tachek are the ships that come up next in rotation according to BC Ferries’ 20-year schedule. “It’s a fairly predictable refit schedule that follows Transport Canada’s regulations for a four-year dry dock (or a two-in-five-year cycle),” said Collins. “For the larger ships, which are on a two-in-five-year mandatory cycle we may be able to go to class and get an in-water survey in place of the docking every five years. That’s a big money and time saver for us.”

...you can hear the pride in Collins’ voice when he describes the five-year, $62.5 million project to eliminate the

The Queen of Burnaby, while undergoing a refit this past year, is scheduled for retirement in 2016.

fleets’ sewage discharge.

Photo courtesy of BC Ferries

As previously mentioned, four big projects are slated for the 2015-16 timeframe with mid-life upgrades of the S-class vessels (Spirit of British Columbia and Vancouver Island), the Queen of Capilano and the Queen of Cumberland.

There are also new builds planned: On the small end, assuming all goes well with the studies, a 50-car cable ferry for Denman Island will be built. On the bigger scale, new vessels will be required to replace the Queen of Burnaby (which will retire in April, 2016), her sister ship, the Queen of Nanaimo and the smaller North Island Princess. “If you work back from that 2016-17 timeframe, you have delivery, training, planning, etc., so we will be getting into details of concept

Upgrades on the Bowen-class vessels (above, the Mayne Queen) focused on safety and passenger comfort.

October 2012 BC Shipping News 23

ferries development and design work starting next spring and we’ll be deep into planning by this time next year.”

To manage a fleet of 35 vessels, Collins noted that BC Ferries is always looking at “big picture” issues related to environmental sustainability, cost efficiency and safety and training to ensure they remain ahead of the curve.

In this vein, you can hear the pride in Collins’ voice when he describes the five-year, $62.5 million project to eliminate the fleets’ sewage discharge. “BC Ferries is now zero discharge

except for three vessels out of 35,” he said. “Everything is pumped ashore now to be handled through municipal systems. Only three ships remain but those have state-of-theart treatment systems (the Island Sky, Queen of Capilano and Queen of Oak Bay).” In addition to modifying the ships’ holding and pump-ashore systems, reception systems at seven of the terminals are now connected to the municipal systems.”

Another issue that is always top of mind is fuel efficiency. “It’s our biggest cost after labour. A few years ago, we Photos courtesy of BC Ferries

Both the Tsawwassen and Swartz Bay Terminals have sewage reception facilities which are connected to municipal treatment systems — all but three of BC Ferries’ vessels are now zero discharge.

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ferries candidates for conversion to LNG, it takes nine or 10 years to get that return on investment which Collins feels is a little too long.

And in a final note of describing upcoming changes to the engineering department, Collins was looking forward to having the SEA program implemented next year. The Standardized Education and Assessment program is

web-based and provides a consistent training process across the company. It replaces the traditional job-shadowing approach to familiarization with a structured program and a full evaluation process. “We’ll be starting with the newest employees and working up from there. It’s a great program — a major step forward in marine training.”

BCSN

M.V. Nicola — 52-year old ship gets a facelift

A

n additional project for BC Ferries this past summer was the refit of the M.V. Nicola. The project actually noted a major milestone for BC Ferries in that it was the first heavy lift of a vessel at the company’s Fleet Maintenance Unit at Deas Dock in Richmond, B.C. Through the co-ordinated efforts of BC Ferries’ fleet engineering team, the vessel was lifted out of the water and on to 29 blocks on shore.

“This project was undertaken as one of our efficiency initiatives. Generally, the summer time is a slower period for our shipyard as all of our ships are in service,” said Mark Collins, BC Ferries’ VP of Engineering. “By undertaking the Nicola refit in this way, not only are we saving money, but we are keeping our people employed during a traditionally slow period.”

Since 1997, BC Ferries has bare boat chartered the M.V. Nicola to the Lax Kw’alaams First Nation Band, who renamed the vessel the Spirit of Lax Kw’alaams.

The Band operates the 15-vehicle ferry providing passenger and small commercial vehicles transport between the north end of Tuck Inlet and the airport ferry dock in Prince Rupert. The 52-year old ship is 220 tonnes and 110 feet in length.

The refit work included sand blasting the entire ship; recoating the hull; ultrasonic hull, deck and superstructure steel testing; steel renewal; servicing of all machinery; installation of a new sewage pump-ashore system; and upgrading the passenger lounge. In addition, new energy-efficient lighting upgrades. The lights, manufactured

by MariTeam Lighting and distributed in Canada by Jastram Technologies Ltd. (www. jastramtechnologies.com), will mean a 40 to 50 per cent power savings.

Photo courtesy of BC Ferries

re-engineered a lot of ships — installed electronically controlled engines, propellers and cleaned the hulls, that kind of work. Now, with all of the ‘easy’ stuff done, it’s a game of inches,” he said. Some of the innovations that are considered when a vessel comes in for a refit include things like low-friction coatings, new propeller designs, lighting and HVAC systems. The Spirit-class vessels, for example, will be assessed for consideration of low-friction hull coating. “We have used it in the past but you have to save enough fuel to pay for the coating. We’re able to get about threequarters of a knot more speed so we can throttle back and save fuel. The stuff does work in the right application.”

While everything on a ship can be boiled down to fuel efficiency, Collins notes that the focus is on total energy efficiency. A good example of this was the recent energy-efficient lighting upgrades on the M.V. Nicola which are projected to save 40 to 50 per cent on power (for more on this, read the side-bar).

“When the mid-life upgrades for the Spirit-class come up, we’ll be looking at things like propeller blades, hydrodynamics of the hull, windage, coatings, HVAC efficiency, galley efficiency, and of course the engines — LNG is getting a lot of attention these days.”

When asked about the prospects of LNG fuel for the fleet, Collins first noted that B.C. is fortunate in that there is an abundant, inexpensive supply here on the West Coast (about one-fifth the cost in Asia and onethird the cost in Europe) and no new infrastructure is required. “The bigger challenge is the cost of converting the ship compared to the money you save — the return on investment — that’s a bit marginal right now. We have to find a way to get the cost of converting a ship down by about 20 to 30 per cent.

If we can’t get it down, we may not use it. New builds are entirely a different case. You start from scratch and design everything for the optimal configuration. That’s a no-brainer but conversions are tougher.”

Using the Spirit vessels as an example, they represent 20 to 30 per cent of BC Ferries’ total annual fleet consumption. While they’re prime

The heavy lift of the M.V. Nicola — the first heavy lift undertaken by the Fleet Maintenance Unit at Deas Dock in Richmond, B.C. October 2012 BC Shipping News 25

FERRIES Ensuring consistent, safe travel for passengers of Canadian ferries

By Anthonie de Hoog, Executive Director, Canadian Ferry Operators Association

T

he Canadian Ferry Operators Association (CFOA) encompasses virtually all of the Canadian Ferry operators from east to west and every province and territory save Saskatchewan and Alberta. Its history spans a quarter century with the Association being founded and federally incorporated in 1987 by a core group of companies that have carried on to this day. The founding companies consisted of the Government of B.C., BC Ferries, Government of Northwest Territories, Owen Sound Transportation Company, STQ, Northumberland Bay Ferries, Coastal Transport, Marine Atlantic and the Government of Newfoundland and Labrador In 2005, the CFOA experienced a rebirth when an executive director was chosen to carry the Association forward.

Now, with marine and allied companies being invited to join, membership continues to grow on a monthly basis as member companies see the value of a close association with ferry operators.

The purpose of the CFOA is to ensure that the travelling public receive a consistently safe operation whether it is in the far north, central, east or west coasts of Canada. The CFOA consists of three membership levels: Full (operating members), Associate members and Individual members. There are now 62 members with a total of about 250 individuals. The Association meets annually and has a very close relationship with Transport Canada Marine Safety and Security during the bi-annual CMAC meetings in Ottawa.

The CFOA provides unified, collaborative and constructive dialogue between industry and government on

26 BC Shipping News October 2012

security programs. The Association has very good representation each year at the Canadian Marine Advisory Council meeting in Ottawa. Recently, the CFOA also worked very closely in the development of the Domestic Ferries Marine Security Regulations. This set of regulations takes a risk-managed approach to enhancing Canadian ferry security. Each ferry route was assessed and only routes deemed to be most vulnerable were affected. This process has worked very well.

issues concerning ferry operations and regulations in Canada, and offers ferry operators and industry a forum for frank, open exchange of information with the aim of providing safe, reliable, cost-effective and environmentally responsible passenger vessel management now and in the future.

The Association fleet consists of 133 ships with BC Ferries and Marine Atlantic Inc. having the largest ferries in Canada. Annual traffic levels are nearly 50 million passengers and 25 million vehicles with approximately 7,500 employees nation-wide.

Fuel efficiencies are constantly being

The CFOA provides unified, collabora-

explored as the cost of marine diesel

tive and constructive dialogue between

fuel continues to increase.

industry and government on issues

Fuel cost The cost of fuel is an ongoing issue for operators. In some cases, surcharges have been applied and in other cases, ships have changed from operating on four engines to two engines.

Fuel efficiencies are constantly being explored as the cost of marine diesel fuel continues to increase.

concerning ferry operations and regulations in Canada, Challenges facing the operating members include: Passenger levels Members have reported slight drops in passenger and vehicular traffic during recent years. This is consistent with tourist level reports and border crossing reports. Lower traffic affects the bottom line — many operators are government-owned and therefore rely heavily upon subsidies. High fuel costs also affect tourist travel which in turn affects the summer vessel utilization.

Marine Safety and Security The CFOA worked very closely with Transport Canada Marine Safety and Security in developing safety and

Air emissions from ferries As of August 1, 2012, the North American Emission Control Area (ECA) has come into effect (albeit noting that the Canadian regulations will be introduced in late November). Additional standards will be coming into affect in 2016 which will require Canadian ferry operators to meet lower sulphur and nitrogen oxide emissions.

Sulphur emission controls are also part of the air emission plan and again, this becomes a challenge in finding ultra-low-sulphur fuel that meets the

FERRIES engine requirements as well as the flash point that is currently set by the International Maritime Organization at 60 degrees Celcius. Many suppliers are now finding it difficult to meet this flash point.

Much has already been written about Liquid Natural Gas (LNG) as an alternative fuel. This trend is now quite common in Scandinavia and, here in Canada, operators such as BC Ferries and STQ in Quebec are considering, or are already having, a new build capable of being a dual-fuel ferry. The regulations will have to be prepared to permit for use of this new environmentally friendly fuel source — infrastructure too will require development. The CFOA Annual Conference had a number of presentations in this exciting new area.

Human element Canadian ferry operators are not immune to the shortage of qualified officers and crew, as with marine operators in other areas such as the towboat industry and Great Lakes operations.

This is especially acute in the more remote areas where CFOA members operate — the East Coast, Mackenzie River and James Bay are but a few.

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FERRIES The new regulation for Passenger Safety Management and Specialized Passenger Safety Management for RoRo vessels has also been an issue for operators. The requirement of certain crew members to be trained has been costly and time-consuming. It has, at times, been difficult to obtain qualified trainers to come to remote areas.

A new Transport Canada policy, aimed at allowing certain crew members to become familiar with the vessels on which they work for six months prior to obtaining the endorsement, has gone a long way in making it easier to operate vessels whilst the new employees undergo familiarization.

Vessel recycling The Canadian ferry fleet is, by and large, quite elderly. BC Ferries, Marine Atlantic and several provincial operators have started a fleet renewal program. As more of the older Canadian ferries are replaced, ship owners will have to become more and more versed in the IMO Guidelines for safe and environmentally sound ship recycling.

This is called the Hong Kong Convention.

It is no longer an option to sell a vessel and allow the purchaser to deal with the recycling of substances such as asbestos or contaminated lubricants.

...ship owners will have to become more and more versed in the IMO Guidelines for safe and environmentally sound ship recycling.

Replacing elderly ships is also a very costly exercise as, typically, a reasonably sized ferry in the 130-metre range meeting all the IMO and Transport Canada regulations costs in the neighbourhood of $140 to $160 million. Smaller vessels for shorter routes are, of course, not as costly but still very capital intensive The CFOA and its members are looking at the future with new possibilities, greener vessels and fuel costs that can be more easily managed by using LNG. Anthonie de Hoog is the first Executive Director for the Canadian Ferry Operators

Association. He brings a great deal of operating experience to the position as past Chief Engineer on both Great Lakes and ocean-going vessels, and as Senior Technical Manager at Marine Atlantic which he joined in 1987 in Saint John N.B. as Marine Superintendent for the two ferries Princess of Acadia and Bluenose. In 2005, Anthonie retired as Senior Technical Manager in North Sydney, Nova Scotia.

As Executive Director of the CFOA since 2006, Anthonie has seen the Association grow from the 13 original members to its current level of 62 operators and associated companies.

Anthonie is a Member of the Canadian Institute of Marine Engineering Atlantic Branch, British Institute of Marine Engineering, Science & Technology as well as the Society of Naval Architects and Marine Engineers.

Anthonie now resides with his wife Carol in Sussex, New Brunswick, where he is very active as a volunteer for a number of community organizations. He is currently President of the Sussex Health Centre Foundation.

The Alphonse Desjardin.

The Blue Puttees.

The Ivan Quin.

The Grand Manan Adventure.

28 BC Shipping News October 2012

SPILL RESPONSE

SOSREP:

The United Kingdom’s world-leading pollution response regime

By K. Joseph Spears

H

aving written about pollution response in past issues of BC Shipping News, I thought it would be worthwhile to compare Canada’s regime to that of the United Kingdom with a particular emphasis on command and control and casualty intervention. The U.K., an island nation with a long maritime history, has some of the world’s highest density of commercial marine traffic, especially in the English Channel. It also was the site of the first major tanker incident, the Torrey Canyon spill off the south coast of England in 1967, which served as the catalyst for the modern international pollution prevention response and liability and compensation regimes that we see in place today.

Canada’s marine pollution response regime was recently considered by the Commissioner of Environment and Sustainable Development, Scott Vaughn, in the Auditor General of Canada report to the House of Commons published in the fall of 2010.

Chapter One, “Oil Spills from Ships”, raised questions about Canada’s ability to handle a major marine tanker pollution incident and made a series of recommendations to improve response by the Government of Canada. The report can be found on the Auditor General’s website at www.oag-bvg.gc.ca.

The Government of Canada has struck an interdepartmental committee to look at the OAG’s findings and that work is ongoing. The last time Canada’s oil pollution response capability was reviewed comprehensively was in the early 1990s by the Public Review Panel on Tanker Safety and Marine Spills Response Capability, Protecting Our Waters, commonly referred to as the Brander-Smith Report.

The last time Canada’s oil pollution response capability was reviewed comprehensively was in the early 1990s... commonly referred to as the BranderSmith Report.

Recently, Premier Christy Clark stated publicly that one of the terms of supporting the Enbridge Northern Gateway Project was that there must be a: “World leading marine oil spill response, prevention and recovery system for B.C.’s coastline and ocean to manage and mitigate the risks and costs of heavy oil pipelines and shipments”.

The Province of B.C. released a technical analysis — Requirements for British

Columbia to Consider Support for Heavy Oil Pipelines — setting out in detail what a world-leading response would look like. (The document can be found on the BC Ministry of Environment’s website at www.env.gov.bc.ca.) That chapter runs 26 pages in length and is a must read for all mariners. British Columbia has been a very active participant in the Pacific States/BC Oil Spill Task Force that was developed after the Exxon Valdez oil spill in 1989.

The U.K.’s regime is considered a “world-leading pollution response regime” that is very proactive and brings into play the coastal state’s intervention early in any marine casualty so decisions on pollution response can be made in a timely way.

Since 1967, marine tanker pollution incidents, while on a significant decline, have garnered much public attention. Two recent incidents, the Erika and Prestige off the EU coast galvanized action in the EU. (In Canada, we have not had a major pollution incident since the tanker Kurdistan broke in two in 1979 in the Strait of Belle Isle.) As a result, the oil spill response has matured and evolved with lessons learned being incorporated into coastal state ocean management regimes and practice. The International Maritime Organization (IMO) has been — and October 2012 BC Shipping News 29

SPILL RESPONSE continues to be — active in this area.

From a risk management standpoint — from the perspectives of the vessel owner, their insurers and the coastal state — vigorous action at the prevention and the protection phase is required as a marine casualty develops.

Often, the initial steps taken in the first hours will determine the final outcome of the casualty. It should also be noted that as commercial vessel size has grown, so has the fuel bunkers carried by non-tankers so this risk management regime is also applicable to all commercial vessels, not just tankers.

The United Kingdom takes a much more interventionist approach than Canada.

The United Kingdom takes a much more interventionist approach than Canada. One person is appointed and is delegated all the necessary statutory powers for pollution response and

30 BC Shipping News October 2012

intervention. That person is a knowledgeable mariner who is known as the Secretary of State’s Representative for Maritime Salvage and Intervention (SOSREP). Since 1999, the SOSREP is tasked to: “oversee, control and if necessary to intervene and exercise ‘ultimate command and control’, acting in the overriding interest of the United Kingdom and consolidates operations within U.K. waters involving vessels or fixed platforms where there is a significant risk of pollution”.

The SOSREP’s powers extend to marine safety matters in the territorial sea and, in the case of pollution, applies to the outer edge of the Exclusive Economic Zone (EEZ) (200 nautical miles).

The SOSREP position grew out of Lord Donaldson’s review on behalf of the U.K. government concerning the Sea Empress incident in 1996. His report (published in 1999) was entitled Lord Donaldson’s Review of Salvage and Intervention and their Command and Control. He made it clear that when it came to a marine casualty, “salvage by committee”, as

witnessed during the Sea Empress incident, was generally found to be ineffective and inefficient. It was his opinion that what was needed in such emergencies was a single voice able to make decisions on behalf of the U.K. government and in the overriding public interest, and, if necessary, to override any and all other interested parties.

It was [Donaldson’s] opinion that what was needed...was a single voice able to make decisions on behalf of the U.K. government...

It is important to note that Lord Donaldson was an experienced maritime counsel with extensive knowledge of marine casualties and was well aware of the competing private and public interests taking place in real-time, involving large sums of money and the requirement to make difficult decisions in a time-sensitive manner. It could be

SPILL RESPONSE said that he was well aware of the doctrine that “committees of one are effective”. He went on to state: “The SOSREP must be a considerably and preferably charismatic figure.” He recognized the importance of the individual and the human element in casualty intervention. Lord Donaldson made a series of 26 recommendations of which 23 were adopted by the U.K. government.

The

SOSREP

takes

a

proactive

approach and interacts with the U.K.’s overall

pollution

response

regime

administered by the U.K.’s Department of Transport’s Marine Safety Agency His inquiry report was the genesis of the unique SOSREP concept and was an international first. He held that the SOSREP should be free to act on behalf of the Secretary of State independently and without recourse to higher authority. Indeed he could not be more specific: “We cannot over emphasize that whilst the Chief Executive and Ministers will ultimately be accountable for decisions of the SOSREP, whilst operations are in progress they must either back him or sack him.”

From October 1999 to December 2007, there were 672 incidents and 62 directions given by SOSREP. The system has worked and stood the test of time. The regime is a proactive one that allows early intervention leading to effective pollution prevention. It was held that the trigger point for intervention is when there is a significant threat of pollution to the U.K.’s pollution control zone, territorial waters and coastline. The SOSREP takes a proactive approach and interacts with the U.K.’s overall pollution response regime administered by the U.K.’s Department of Transport’s Marine Safety Agency and other governmental agencies. He has developed a strong working relationship with the public and private sector.

Canada can learn from the United Kingdom example of appointing one person to be in charge during a marine incident. Section 678 of the previous

Canada Shipping Act gave broad powers to the Minister to take all necessary steps to deal with pollution including destruction of the vessel. Section 678 was used to sink the oil filled bow section of the tanker Kurdistan off the Nova Scotia coast by the Royal Canadian Navy. The Canadian Coast Guard, then part of Transport Canada, allowed the vessel’s insurers to tow the stern section of the tanker from the Strait of Canso to a drydock where it was rebuilt and put back in service.

These were hard decisions to make at the time and would be even harder to make today. The intervention powers exist in the Canadian legislative regime for pollution prevention in the Canada Shipping Act, 2001 (parts 8 and 9 and, in particular, section 180). Section 180 and the old section 678 has not been used in over 30 years in a major incident.

Canada’s present oil pollution prevention regime takes a much more passive approach with the Canadian Coast Guard taking a supervisory role over the vessel owner based on the “polluter pays” principle. There are potential time lags given the number of government agencies involved and competing interests and jurisdictions if the Canadian Coast Guard had to take over from the vessel owner. The key element of the SOSREP system is the triggering

of early intervention and monitoring at the prevention and protection stage of pollution response and the overriding goal of protecting the public interest.

This clearly recognizes the competing interests.

When it comes to world-leading pollution response, Canada is well advised to look at the U.K.’s SOSREP model of early intervention during marine casualties. This is especially important on the remote British Columbia coastline where there are few resources and very little infrastructure. A unique West Coast SOSREP model can easily interact with the unified incident command set out in B.C.’s Technical Analysis. The two are not mutually exclusive. We need to have a frank and open discussion about Canada’s oil pollution response capability for existing marine traffic that cuts across federal, provincial, municipal and First Nations jurisdictions. On Canada’s West Coast we need to get this right. We will be a stronger, more robust and resilient ocean nation for it. “World-leading” means talking to one another.

Joe Spears of the Horseshoe Bay Marine Group has acted for the State of Washington in the Tenyo Maru incident and was the Chair of the 2002 Conference on Emergency Planning for Marine Industries in Vancouver. He can be reached at kjs@oceanlawcanada.com

com m ercia l a nd ma ritime law on ca na da 's we s t coa s t.

W. Gary Wharton Mark W. Hilton Katherine A. Arnold David S. Jarrett

Nevin L. Fishman David K. Jones Catherine A. Hofmann Mark Tinmouth

Peter Swanson Neo J. Tuytel Connie Risi

associate counsel:

Lorna Pawluk

Joan Rush

Thomas S. Hawkins Tom Beasley Paul D. Mooney

Peter G. Bernard, QC (retired) tel: 6 0 4 .6 81 . 1 700 fax: 604. 681 . 1 788 emergency response: 604. 681 . 1 700 address: 1500–570 Granville Street, Vancouver, BC, Canada, V6C 3P1 website: www.bernardpartners.com

October 2012 BC Shipping News 31

terminals

U.S. coal export terminals gunning for our business

By Ray Dykes

D

espite two failed attempts in the past in Portland and Los Angeles, there’s a frenzy of new coal export terminal proposals on the United States West Coast.

In fact, there are six different proposals at various stages of approval or feasibility study and if all were successful it could bring up to 150 million tonnes of export capacity for coal miners in the West in the Powder River Basin (PRB) in Montana and Wyoming, Idaho and Utah.

A seventh coal export terminal proposal for Grays Harbour WA has recently been shelved by its proponent Rail America Inc., a short-line railroad recently bought by rival Genesee & Wyoming Inc. The frenzy underscores that currently there is no U.S. West Coast coal export facility and the outlet of choice has become Westshore Terminals in Port Metro Vancouver. Last year, Westshore shipped a record 8.2 million tonnes of U.S. coal, largely from the Powder River Basin, but occasionally from Utah as well.

Some experts paint the U.S. coal industry as desperate to export because of faltering domestic demand thanks to President Barack Obama and his “close down the coal-fired power stations” stance. At 107 million tonnes in 2011, the United States reportedly had its highest export of coal in about 20 years, about half of it going to a coal-hungry

32 BC Shipping News October 2012

Asia and a considerable amount to Europe.

Getting creative And with no West Coast U.S. coal export terminals, the mining companies have had to get creative.

There are reports of Powder River Basin coal being railed to the Great Lakes to use the St. Lawrence Seaway to get to European markets. Some mines are also using barges along the inland waterways such as the Mississippi River to get their product to Gulf Ports for export.

The need for something closer to home...has spurred the mounting list of proposals on the U.S. West Coast.

American coal has also been railed as far north as the Port of Prince Rupert and Ridley Terminals, in a brain-numbing, combined rail company effort that covers about 3,500 kilometres just to get the coal to tidewater.

The need for something closer to home to offset transport costs and take advantage of an Asian coal-buying boom has spurred the mounting list of proposals on the U.S. West Coast.

Should British Columbia’s three major coal export terminals be quaking in their boots as they prepare to be swamped by new terminals opening in the United States?

Not yet, at least. All three major coal outlets in B.C., including Neptune Bulk Terminals and Westshore in Port Metro Vancouver, and Ridley in Prince Rupert are still turning away business while expanding or improving their capacity through equipment upgrades.

Enough for all Westshore’s Vice President & General Manager, Denis Horgan, remains convinced that not all six U.S. terminal projects could hope to go ahead, and besides, he figures there’s enough business for all contenders who do proceed.

But, he also cautions that the coal market is a volatile beast that can change quickly threatening viability.

In another boost to Canadian coal export terminal business, there are at least half a dozen coal startup projects in B.C. and Alberta coming on stream in the next few years and this new business remains largely unallocated, although a couple of mines have signed long-term shipping agreements, particularly with Ridley, which is doubling in size from 12 to 24 million tonnes capacity a year by 2015.

Westshore will begin a six-week shutdown of part of its site on October 1 to replace a single coal car dumper with a new twin rotary dumper set, plus two exit and one entry train positioner systems. This will take that facility’s capacity from 29 to 33 million tonnes a year.

And Neptune is also expanding from 8 to 12 million tonnes capacity

terminals out) and even a bomb scare to Port Metro Vancouver which closed both Westshore and neighbouring Deltaport for three hours early in August.

Meanwhile, Bellingham is concerned over increased coal train traffic through the city but the City Council recently dropped a proposal for a non-binding vote. Not so in Seattle, the largest city on the route to Cherry Point, which voted a resolution in June opposing the development of coal export terminals

in the whole state, even though it has no say in the ultimate outcome.

Let’s have a look at the proposals from north to south.

Cherry Point WA: The widely publicized $665 million Gateway Pacific Terminal project to build three deepsea docks at Cherry Point north of Bellingham for SSA and Peabody involves not just coal exports, but also grain and potash exports and even dry bulk imports. It would mean nine

BNSF Chairman & CEO Matthew Rose expects two or three of the current six proposed terminals to come to fruition.

Photo credit: Ray Dykes, PR Plus

by adding a second dumper and new conveyors.

But, that’s not to say Horgan and his colleagues at B.C.’s major coal export terminals aren’t watching the progress of the U.S. West Coast coal export terminal proposals with close interest.

Two of the surviving proposals are in Washington State and four others in Oregon, including increasing barge shipments of coal along the Columbia River to a transshipment port nearer the coast.

For Westshore, the biggest threat for its U.S. business is likely to come from Cherry Point north of Bellingham and only a hop, skip and a jump from the Canadian border.

Seen by some as the most advanced of the six surviving U.S. proposals, the Peabody Energy and SSA Marine inspired Pacific Gateway Terminal Project at Cherry Point has the promise of what is thought to be the last easily available deepsea terminal site on the West Coast.

In the early 1990s, SSA and Westshore looked closely at developing the site for coal exports, but the project fizzled out after much study and surprisingly little protest.

Widespread protests Today, protests are varied and rampant for all of the six new export terminal projects. Coal is seen “as the enemy of the earth” and there is a proliferation of anti-coal sites and bloggers on the Internet...more opposition than ever seen before.

Some are strangers to the truth when it comes to hard facts about coal and coal usage and what the industry is doing to clean up its act, but there’s no doubting their enthusiasm for stopping coal shipments of any kind by promising to do whatever it takes.

Back in May, in a widely publicized blog-fired move, one protest group said they would blockade Burlington Northern-Santa Fe coal trains rumbling through White Rock. The police and news media were there and indeed, the protestors did stop a coal train, although I am reliably told, it was an empty heading back to the United States.

There have also been Roberts Bank causeway attempted blockades to stop port expansion (both fizzled

October 2012 BC Shipping News 33

terminals trains a day served by three deepsea berths capable of handling up to Capesize vessels. Throughput capacity will range from 25 to 50 million tonnes on full build out of the 1,092-acre site.

Lately, the Bellingham Herald has been airing more and more letter writers favouring the jobs and wealth the new port could bring.

Lately, the Bellingham Herald has been airing more and more letter writers favouring the jobs and wealth the new port could bring. Initially, there was a flood of anti-coal sentiment, but as an SSA spokesman said: “This project needs a chance to prove itself through science and facts and not emotion. That’s all we ask.” The project is preparing to enter a scoping process this fall – a pre-environmental impact stage —to determine what issues the impact study should include to give the public a wider say in the permitting process.

Grays Harbour WA: Rail America has shelved, for business reasons, a proposal to ship coal from this Washington port, which currently handles pulp. It would have meant two more trains a day and about 100 extra ships a year for a target of five million tonnes. Those trains cut off a Walmart shopping centre

on their way to the port and there were also water and air quality issues.

Longview WA: Australian mining company Ambre Energy, through its Millennium Bulk Logistics subsidiary, has received Cowlitz County Board of Commissioners approval to renovate an existing dock at a former aluminium smelter owned by Alcoa Inc. The $643-million project will see coal exports of up to 44 million tonnes a year, plus cement and alumina using a former Reynolds Metals Co. site west of Longview. The coal will come by rail from the Powder River Basin. The facility will also handle imports of alumina and cement materials.

The U.S. Army Corps of Engineers in July announced it will require an environmental impact study for the project, which is what was expected.

Kinder Morgan Terminals...plans to build a new $200 million coal export dock in Port Westward Industrial Park near Clatskanie Saint Helens OR: Kinder Morgan Terminals, which operates 180 facilities in North America, plans to build a new $200 million coal export dock in Port Westward Industrial Park near Clatskanie in the Port of St. Helens, about 45 kilometres northwest of

The Ocean Compass loading at Berth No.1 at Westshore Terminals.

34 BC Shipping News October 2012

Portland. Details are sketchy so far, but Kinder Morgan plans to rail in the coal from the Powder River Basin. Last May, the company signed a Memorandum of Understanding with the Columbia Pacific Building Trades Council guaranteeing that union labour would be used to build the new terminal.

Boardman OR: Another Ambre Energy project, this time headed toward Port St. Helens on the Columbia River. The $242-million Ambre proposal comes via its Coyote Terminals LLC subsidiary and plans to barge coal along the Columbia River to St. Helens where it will be off-loaded onto oceangoing coal carriers. Up river, the Powder River Basin coal would be railed to a new coal-handling dock at the Port of Morrow in eastern Oregon for the trip west on 20 custom-built covered barges, which will move efficiently on the river in four barge tows.

Ambre Energy proponents say they’re further along than any of the other West Coast U.S. coal export projects and they believe barging will sharply reduce the environmental impact on surrounding communities. Initial export tonnage is 3.2 million tonnes a year, but the company has its eyes firmly on eight million tonnes a year.

And according to Port of Morrow General Manager, Gary Neal, “this is going to be the most environmentally protected movement of coal in the country today.”

Photo credit: Ray Dykes, PR Plus

The Shape of & terminals ports dventure.

Coos Bay OR: Known as Project Mainstay, this coal export terminal proposal has undisclosed international backers working with the Port of Coos Bay. The backers include a terminal operator, an end user, and a commodity trader, says Coos Bay Port CEO, David South end of Burrard Bridge Koch. The aim is to export 10 million 1905 Ogden Ave tonnes of Powder Basin River coal a Vancouver, BC year using a terminal to be built on a 604 257-8300 sandy spit near the port entrance. www.vanmaritime.com With no connection to an interstate 1/2 pg v #3_Ad Del Comm 8/21/12 10:33 AM Page 1 freeway, Coos Bay is isolated and the terminal project will likely require the successful proponents to upgrade the existing short-track rail line that conEquipment & Expertise Trolley coupon Ad_prd.indd 1 nects to the Willamette Valley. Van Bridge upgrades alone are estimated at $40 Marine Solutions for Our Generation million. An upgraded rail line would also help the port attract more business and be a boon to existing local commerce.

In-fighting There’s in-fighting between the Governors of Washington and Oregon and Montana and Wyoming over whether all six proposals should be made the subject of a “programmatic study” of all six proposed Pacific Northwest coal export terminals at once to determine the effects of rail congestion, coal dust and other environmental factors region-wide.

However, business interests, economic development officials and ports contend such a study would be a dangerous precedent and thwart economic growth in the Pacific Northwest.

Matthew Rose, Chairman & CEO of Burlington Northern-Santa Fe Railway, said recently in Vancouver WA that he expects only two or maybe three of the coal terminals will actually go ahead.

He fears that layers of environmental review will morph into a way to stop a project, regardless of its merits, adding that in Southern California, BNSF has been waiting for seven years for permits to be issued for one project.

While adding that environmental reviews are necessary and the country “is much better for it,” Rose said “at the end of the day, we have to find the right balance in all of this.”

The Shape of dventure.

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

& Beyond

22/02/11 9:47 A

Phone 604.988.3111 www.seaspan.com October 2012 BC Shipping News 35

terminals Diversity key to growth at Pacific Coast Terminals

T

here’s a lot going on right now at one of B.C.’s oldest terminals.

Pacific Coast Terminals, having just signed a 30-year lease with Port Metro Vancouver earlier this year, is gearing up for an expansion that will not only diversify the products being handled but will “take us back to our roots,” says Kent Smith, Manager, Maintenance and Engineering. Having been known for their handling of potash in the late 1960s/early 1970s, PCT is in the early stages of planning and consultation for an expansion that will bring both potash and food-grade canola back to the terminal.

In outlining the specifics of the plan — an investment valued at roughly $150 million — Smith noted that, while their footprint will remain the same, they are making the site “more efficient”: “We’re taking the land that is currently used for a pond and reconfiguring it to accommodate storage. Of the 108-acre site, 40 acres will be developed over the next three years.”

Since 2008, sulphur volumes have been on a sharp decline at the terminal — by as much as 50 per cent — due to a lack of deep-well gas development (which is where most of the sulphur comes from). “We had hoped that refining of oil sands crude would produce more sulphur for export. Unfortunately for us, this sulphur is being exported to the U.S. in liquid form instead of being exported offshore.” Currently, PCT handles about two million tonnes of sulphur per year, down from its peak of 4.5 million tonnes in 2004. In addition to sulphur, PCT also currently handles ethylene glycol. “Both potash and canola align with our current terminal operations and will not require a fundamental change,” said Smith. “We will continue to use the same on-site technology that is currently being used to handle ethylene glycol and sulphur.”

To handle the new products, PCT will construct a potash storage warehouse and additional liquid storage tanks.

The facilities will be located beside the

existing sulphur piles on the east side of the property where currently there is a pond used for water storage (which will subsequently be stored in a new tank). For the canola, plans include the construction of three tanks fed by a new pipeline from the existing but upgraded rail car unloading facility, and a new pipeline to service the ships.

Smith anticipates one to two million tonnes per year for potash...and approximately 750,000 to one million tonnes of canola...

In terms of volume, Smith anticipates one to two million tonnes per year for potash (“it’ll ramp up as the mines increase production”) and approximately 750,000 to one million tonnes of canola, roughly doubling the liquids handled currently. The upgrades and modifications for potash include the

Photos and images courtesy of Pacific Coast Terminals

Stages of development at Pacific Coast Terminals: top left: 1976; top right: 2006; bottom left: current configuration; and bottom right: following the expansion.

36 BC Shipping News October 2012

construction of a new bottom dump rail car facility and conveyors that will link to a new warehouse and then to the existing ship-loading system. In addition to the $150 million being invested to handle these products, several million more will be spent on upgrading water treatment facilities, rail trackage and other infrastructure to accommoPort Metro Vancouver works closely with marine industry date the new products. and government stakeholders to develop new ways to further In terms of timing, preliminary strengthen existing safety procedures. We have served as engineering designs, community consultations and commercial negotiations Canada’s Pacific Gateway for more than 100 years. We manage should take the rest of this year. By early port operations, security incidents and emergency responses next year, Smith expects to start on through our 24/7 Operations Centre.

Port Metro Vancouver’s Project Review and permitting process. Between April and September 2013, plans for the potash facilities include development of a detailed design, equipment procurement and site preparation while construction on the canola facilities could start during the same timeframe.

Construction of the potash facilities is expected to last through to 2015.

The new business should generate 400 construction jobs (full-time equivalents) by the end of the two-year construction period and will add an additional 90 jobs (full-time equiva-WASSERMAN + PARTNERS ADVERTISING ART: AF AE: SS DSGN: WH PROD: SC CMYK LASER % lents) to the current staff level of just AD SIZE: 4.6875” x 4.9375” PRESS / STOCK: digital DESIGN : RES FINISHED: 300 PPI under 70. Municipal taxes — currently PMV-P20286.05 BLEED: File: !PMV919_BCSN ARTWORK SCALE: 1 : 1 at just over $1 million — could very AE/PROD : FINISHED: RES ARTWORK: 300 PPI well double over the next number of Rev: Sep. 6, 2012 – 3:48 PM NOTE : FORMAT: InDesign CS5 PMV919 years once the expansion is complete TRAP AT OUTPUT STUDIO : DELIVER: PDF-X1a BC Shipping News and operations are at full speed.

Marine and corporate travel experts available 24/7.

Pacific Coast Terminals’ contributions to the community of Port Moody If you’re looking for a Marine Travel Management Company to manage don’t stop there. “For 52 years, we’ve your marine & shipping travel, we offer the perfect solution. tried to be the best community citizen Our multi-national buying power for marine, offshore and corporate travel, that we can. We are very supportive of together with our local and global expertise, make us a perfect partner to the local government, local community meet your travel needs. associations and participate in quite a few events throughout the year,” said ATP Instone agents are worldwide travel experts specializing in the Diana Dilworth, Community Relations shipping and energy sectors. We understand the complexities of moving a Co-ordinator. “Since we’ve been here, diverse crew around the world and the challenges of finding efficient and we’ve given back over $1 million in effective travel for the marine industry. charitable contributions, including scholarships. Last year alone, we supported 25 Tri-City organizations and Contact: Louise Kawaler ACTM, Director Canada events with financial contributions and Mobile: 604.329.1143 we’re on track to do the same this year.”

Email: Louise.Kawaler@atpi.com And to ensure their neighbours are aware of their plans and have ample access to information, PCT has made community communications a priority. “We’ve done a special mailing to www.atpi.com residents, a large update to our website,

TRAVEL WITH THE INDUSTRY’S BEST...

October 2012 BC Shipping News 37

terminals local newspaper stories, paid advertising in the newspaper and we’re organizing an Open House, planned likely for November.”

While the special project has kept Dilworth busy with additional communications, she described a regularly active engagement with the community. “We publish newsletters three times a year that are mailed to all residents in Port Moody and we regularly hold open houses so the community can come down to the site and see what we do. We get a great response from that.”

Indeed, PCT should be proud of their record — both in safety and environmental sustainability. In June of this year, they celebrated over 10 years of

safe operations with an annual Safety Day at the Port Moody facility. “For over 10 years, we have had the best safety record of all terminals within Port Metro Vancouver,” said Dilworth.

“We have not had a ‘lost-time’ accident in almost 4.5 years in operations and over 6.5 years in maintenance.”

In addition to being recognized by WorkSafe BC, PCT won an award from the International Bulk Journal for their safety record in 2010.

PCT has also won awards for their efforts in environmental sustainability — both from the City of Port Moody (in 2004) and the International Bulk Journal (2011). The award from the City related to the installation of a water recycling system that reduced the

amount of water PCT purchased by 60 per cent and 50 per cent less water discharged through the municipal sewer systems.

And long before it was fashionable, PCT reduced their carbon footprint as early as the 1980s. “We changed the facility and reduced our carbon footprint by 85 per cent,” said Smith.

“We went from diesel-powered mobile equipment to an electrically powered stacker reclaimer and indexer. Much of the work done in the 1980s eliminated an entire fleet of mobile pushers and front-end loaders.” Since that time, PCT has also reduced the number of vehicles on-site and now operate a large fleet of electric vehicles — everything from golf carts to electric trucks.

Even their “pest control” is environmentally friendly with the use of Jane the Falcon. “Every couple of months, we bring Jane in to scare away the seagulls, crows and pigeons who create a safety hazard on the docks,” said Dilworth.

“Our terminal expansion program to add canola oil and to welcome potash back to our site we feel is part of a natural evolution to keep pace with changes in the market,” adds Lorne Friberg, PCT’s Chief Executive Officer. “We are excited for what the future holds not only for our terminal, but for the community of Port Moody as well.” BCSN

Piera Faber, a PCT staff member, holds Jane, a key partner in PCT’s efforts to keep their docks free from other birds.

38 BC Shipping News October 2012

legal affairs

The return to provincial sales tax in British Columbia

By Catherine A.Hoffmann A Vancouver lawyer with Bernard & Partners

I

t seems not so long ago that we were preparing and planning for the change from our old system of provincial sales tax (PST) to a more efficient and streamlined system of harmonized sales tax in British Columbia. It was in fact just two short years ago.

However, it was a change that was not welcomed by all. Indeed just over one year after the implementation of the HST, approximately 55 per cent of the provincial citizenry who voted in the referendum chose to scrap the HST in favour of a return to the PST. In May of this year, the provincial government introduced legislation to effect the necessary regulatory change and to provide businesses and consumers alike with the necessary opportunity to prepare for the transition to the revised rules. The date of implementation for the new legislation will be April 1, 2013 and it is a good time to start thinking about how the move from HST may affect long-term agreements or anticipated importations which may straddle that date. By considering the impact of the change in taxing regime, it may be possible to avoid increased and unnecessary costs.

By way of background, it is useful to consider that the financial structure of the two taxes is very different. Both HST, and its federal component GST, are value-added taxes, whereas PST

for the most part is a compound tax. A compound tax is not deductible by business and tax is levied at every level of the production process. By contrast, a value-added tax is a tax that is only applied to the “value added� within a given supply chain. Ultimately, the value-added tax is considered to be more efficient because the end user is not paying tax on the same good multiple times. For business, it simply means that to the extent that the additional tax paid in the supply of the good or service cannot be passed on to the consumer, there will be an increased cost to doing business. While some exemptions will be available to reduce the impact of these increased costs, it is likely the case that there will be an additional tax burden for businesses located in British Columbia.

While some exemptions will be available to reduce the impact...it is likely the case that there will be an additional tax burden for businesses...

The original provincial Social Service Tax Act was enacted in the 1940s and many amendments to the legislation were made throughout its over 60-year history. The result was a confusing system of taxation filled with

odd exemptions and idiosyncrasies.

Fortunately, the B.C. government did not simply choose to reinstate the old Act but rather created new legislation which is intended to make its administration easier for businesses throughout the province. However, whether or not this will indeed be the case remains to be seen. A review of the legislation as it is presently drafted neither makes for easy reading nor does it utilize language common to any other taxing jurisdiction. The implication of this being that the Act will be difficult to interpret and it may be some time before we fully understand its breadth of application.

It should also be noted that not all of the new legislation regarding the implementation of the revised PST regime has been introduced.

It should also be noted that not all of the new legislation regarding the implementation of the revised PST regime has been introduced. Anticipated late this fall are regulations designed to establish the true operation of the new Act as a taxing statute. The government has also announced that, beginning in October 2012, it will begin outreach seminars to train businesses October 2012 BC Shipping News 39

LEGAL AFFAIRS on how PST will apply and to explain the administrative aspects of the collection and remittance of the tax.

Along with a return to increased staffing at the provincial Ministry of Finance Revenue Division, some of the new and hopefully more streamlined administrative measures to be introduced will include the following: • New online access for businesses, including the ability to register, update accounts and make payments; • The due date for tax remittance and returns for monthly filers will be moved to the last day of the month to match GST remittance, simplifying administration for business; • Businesses can register with their federal business number, making registration easier; • Retailers will be allowed to refund tax to customers in a broader range of circumstances; • Businesses that collect and remit tax will again receive commission of up to $198 per reporting period (typically monthly).

Although the federal government changed the law governing the B.C. HST in June 2011 to lower the B.C. portion of the HST to six per cent on July 1, 2012 and to five per cent on July 1, 2014, the change was subject to a “No” vote in the HST referendum.

Consequently, the rate of tax imposed under the new Act will be reinstated at seven per cent. This means that after March 31, 2013 the combined rate of provincial and federal sales tax on every sale or lease of new or used tangible personal property, or every supply of a taxable service will be 12 per cent unless a specific exemption applies.

While the full spectrum of transitional rules have not yet been introduced by the province, the general transitional rule for goods and services states that if the tax becomes payable or is paid before April 1, 2013 the provincial portion of the HST will apply at a rate of seven per cent along with the federal portion at five per cent. By corollary, if the tax becomes payable after March 31, 2013 without having been paid before April 1, 2013, PST of seven per cent and the federal GST will apply.

PST, in respect of sales of taxable goods and services, will generally become 40 BC Shipping News October 2012

payable at the earlier of the time the consideration becomes due or the time the consideration is paid without becoming due. When consideration becomes due will be determined utilizing the same principles underpinning the federal rules regarding consideration.

The CRA does not consider a deposit to be a payment for a supply of goods until the supplier applies it against the total consideration for the supply. If, for example, a deposit is paid in February to secure a purchase which will occur after April 1, 2013, the deposit only becomes partial payment for the supply of goods after April 1, 2013. PST will therefore apply to the deposit as part of the total consideration for the purchase price and will, subject to any exemptions, be included in the supplier’s tax for its reporting period that includes April 1, 2013.

There are several provisions in the new Act which apply to marine related commercial activities including vessel purchases, leases or charters, moorage agreements, vessel importations and changes of vessel use.

There are several provisions in the new Act which apply to marine related commercial activities including vessel purchases, leases or charters, moorage agreements, vessel importations and changes of vessel use. To cover all of these issues in this article would make for laborious reading; however, I will try to address some of the general principles set out in the legislation. What is clear is that the change in taxing regime will affect the way business is conducted by industry throughout the province.

It is important to note that the new Act does not apply to vessel purchases between private individuals. Effective July 1, 2010, the Consumption Tax Rebate and Transition Act established a 12 per cent tax on designated property (TDP) including boats purchased in British Columbia in a private sale. This Act will continue to govern private sales following the enactment of the Provincial

Sales Tax Act. Under that legislation a private sale means a sale by a seller who is not a registrant under the Excise Tax Act (Canada) for GST/HST. Private buyers are required to self-assess and the pay the tax due to the provincial government. Although an exemption from TDP is available for vessels purchased outside the province or the country and then brought into B.C. after July 1, 2010, the application of the federal and provincial components of HST are generally applicable. This will continue to be the case until April 1, 2013.

After March 31, 2013, the B.C. component of the HST will not apply to tangible personal property brought into the province. While the rate of PST applicable in a given circumstance remains subject to the development and enactment of the regulations, typically a rate of seven per cent will apply to purchases of tangible personal property at a sale in British Columbia where the goods are acquired from a GST registrant. Tax is also applicable where tangible personal property is brought into B.C. for use within the province by a B.C. resident or by a principal for whom the B.C. resident acts as agent.

The tax does not, however, apply where the person bringing the goods into the province does so either temporarily or as a lessee. Additionally, as was the case under the HST regime, provincial sales tax will not be exigible on tangible personal property that is purchased and imported into British Columbia from outside Canada where the goods are for commercial use.

There are several specific reductions in the amount of tax payable which depend on the particular facts and circumstances of a transaction.

There are several specific reductions in the amount of tax payable which depend on the particular facts and circumstances of a transaction. Two exceptions worth noting for these purposes are the reductions available in respect of the amount of tax payable for any tax previously paid and not otherwise refunded under the Consumption Tax Rebate and Transition Act (e.g., for a

LEGAL AFFAIRS private sale) and those which apply to the sale and importation of an “interjurisdictional conveyance”.

An interjurisdictional conveyance includes any vessel that is used in interprovincial or international trade for the commercial carriage of passengers or goods. The new Act establishes a formula for calculating the tax payable that is dependent upon the amount that the interjurisdictional conveyance is used within the province. In simple terms, only the use of the vessel within B.C. will be subject to PST. “Usage” is defined as meaning in respect of a vessel the distance the conveyance will travel, during the year after its date of purchase, in the waters of British Columbia. A similar provision exists for transactions involving the sale and lease back of an interjurisdictional conveyance.

Special rules also exist for the combined supply of goods and services and the change of use of tangible personal property, including vessels. Depending upon when the goods and/or services

are delivered, when the change of use occurs and/or when the consideration therefore becomes due, different rules will apply. The array of possible scenarios under these circumstances is vast and I recommend that a determination of the applicability of HST/PST be examined on a case by case basis by a qualified tax advisor.

Many questions regarding the new legislation remain unanswered and only once the full complement of regulations are introduced will we begin to understand the potential impact of the changes.

Many questions regarding the new legislation remain unanswered and only once the full complement of regulations are introduced will we begin to understand the potential impact of the changes. There is no question that

the legislation presents a broader base of taxation than was the case under the old Social Service Tax Act. Concerns have also been expressed by tax professionals regarding several aspects of the legislation including the ability of the government to retroactively introduce regulations up to and including March 31, 2016. This would provide the government with the potential power to reach back and retroactively apply tax to transactions occurring at anytime during that three year period. Of even greater concern is the rumored possibility that goods acquired during the current HST regime, and for which input tax credits have been received, will not be considered tax paid under the new legislation. Should such a position be adopted by the provincial Department of Finance, the political backlash will no doubt be felt for years to come.

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

October 2012 BC Shipping News 41

LNG ENGINES

LNG conversions for marine installations

By Wärtsilä staff: Sören Karlsson, General Manager, Ship Power Technology; Mathias Jansson, LNGPac Product Manager, Ship Power Technology ; Jens Norrgård, General Manager, Project Proposals, Services; Jens Häg gblom, Project Proposal Manager, Services

T

he year 2015 is rapidly approaching and with it the new emission reduction requirements within Emission Control Areas (ECAs). For ship owners and charterers operating in these areas, there are mainly three solutions available: low-sulphur fuel (MDF), SOx scrubbers, or liquid natural gas (LNG). Converting to gasfuelled propulsion is an increasingly viable option.

There are a number of reasons why a gas conversion makes sense, though customer needs naturally vary. In a majority of cases, the main drivers for converting to gas are the significant emission reductions, the consequentially reduced fees, and the reductions in fuel costs.

In practice, all vessels can be converted where available space exists for the LNG tank. Nevertheless, the prime target vessel types can be listed as being: RoRo/RoPax, product/chemical tankers, container vessels with LNG containers, and bulkers.

LNG storage tank should be kept as small as possible and instead more frequent bunkering intervals should be considered. The existing liquid fuel storage system would continue to work as a backup system if necessary.

The LNG storage location can be freely selected onboard the vessel, and either vertical or horizontal tanks, on open deck or below deck, can be selected.

When storage is above deck, the requirements set by the classification societies are slightly lower. Additionally, for the

conversion, installation on an open deck is very straightforward, and some of the system ventilation requirements can be circumvented.

The LNG storage tanks and any additional steel structures may have an impact on the vessel’s stability. These vessel stability criteria, with new LNG tanks installed, can be analyzed inhouse by Wärtsilä as part of the initial feasibility study. For vessels with a very high stability, the rolling behaviour and crew comfort can even be improved.

There are a number of reasons why a gas conversion makes sense, though customer needs naturally vary.

LNG storage A key factor for the success of a gas conversion is finding sufficient space for storing the gas onboard the vessel.

For the Wärtsilä gas engine portfolio, gas storage in the form of LNG can be considered the most attractive alternative due to the high-energy density of LNG and, therefore, the relative compactness of the storage required.

Currently, LNG is also being developed for use in road vehicles with considerably less installed power and it can be anticipated that LNG will increasingly dominate the marine market.

Daily gas consumption can easily be calculated based on the existing operating profile. In order not to incur unnecessarily high capital costs, the 42 BC Shipping News October 2012

The Bit Viking owned by Tarbit Shipping after becoming the world’s first merchant ship to undergo a LNG conversion.

Lifting of the LNG tanks aboard the Bit Viking during the conversion.

LNG ENGINES Converted or new engines?

The second step in the process is to check whether or not the existing engines onboard can be converted, or if they should be exchanged for new dual-fuel engines. Generally speaking, converting an existing engine is recommended and is economically more feasible than installing new ones — especially when keeping in mind that a conversion basically brings the same benefits as new engines. For example, the same warranty is granted as for a brand new engine, in addition to which there are also savings to be made on maintenance costs since the running hours are reset. However, with smaller generating sets, say below 2 MW, it might be more cost effective to install new engines.

At present, a conversion can be offered for basically all Wärtsilä 32, Vasa 32 and Wärtsilä 46 engines.

Wärtsilä is actively considering expanding its portfolio of conversions, and in the future it may even be possible to convert two-stroke engines.

If the existing engines aren’t suitable for conversion, the only option is to replace them with new ones. When doing this, one may need to replace the gearbox and some of the auxiliary equipment as well should it prove that the capacity of the existing equipment is insufficient.

Unless it’s a question of replacing old engines with new ones, a DF-conversion will usually mean a lowering of the total output onboard. If the utilization of the available power onboard is normally in the lower range, this is, in most cases, acceptable. In other cases, it may prove to be quite critical and has to be compensated for in some way, like for instance, omitting the use of shaft generators. Another important consideration is, of course, the age of the installation. A DF-conversion is a fairly large investment, and if the vessel is near the end of its service life, there is a big risk that a conversion would never pay itself back.

Generally speaking, converting an existing engine...is economically more feasible...especially when...a conversion basically brings the same benefits as new engines.

From vision to offer Developing a LNG conversion solution, from a vision to a completed project, will involve a number of progressive steps. Since almost all vessels are in some way unique, it is very difficult to have ready- made concepts for all types

of LNG conversion projects. Therefore, one always has to start with a desktop study, which later leads in turn to a “pre-study”. A pre-study can include everything from a ship check to a lot of engineering hours just to determine if the concept can be applied or not, is feasible or not, or even possible or not.

In addition to the engine technology, engineering/naval architecture, and the equipment, there are a number of other aspects to be considered when developing the LNG conversion solution. These include: • minimizing the yard time in order to reduce losses in charter revenues; • site location for the conversion work; • pre-selection of shipyards; and • external stakeholder requirements (autonomy of tanks, shore-based fuel bunkering systems, safety, classifications and flag states, etc.).

In practice, the entire conversion schedule/project is developed and planned during the sales phase.

As can be seen from Figure 1, the cost of the engines and auxiliaries is just 1/5 of the total price. The biggest price impacts come from the autonomy of the tanks, the complexity of the project (design & engineering), and of course, the installation work. The latter needs to be considered very thoroughly since not all shipyards have the capacity to undertake these conversions.

Figure 1: Cost split for the major tasks in a LNG conversion.

October 2012 BC Shipping News 43

LNG ENGINES As pointed out earlier, the year 2015 is rapidly approaching, and with it the new emission reduction requirements within Emission Control Areas (ECAs).

This means that owners and operators need to quickly start considering which technology to use. There is only one year remaining before action must be taken if one wants to comply with the new legislations.

Project execution and risk management A conversion project is managed by certified Project Managers with the aid of a dedicated project team. A project process utilizing the gate/milestone principle is used. It involves the project team early enough in the sales stage and this, together with a work breakdown structure, planning and follow up routines,

ensures full control of all phases of the project execution. Sufficient resourcing in the planning and design phase minimizes the risks of costly mistakes, and schedules should contain buffers for the unexpected. The dedicated project team normally consists of a Project Manager, Project Engineer, Site Execution Manager and Team Leaders in the following disciplines: naval architecture, process design, electrical and automation, classification, engine conversion, LNG storage and feed system, and steel outfitting. Team leaders would manage the engineering tasks assigned to internal and external suppliers. A frame agreement with selected shipyards enables the development of longterm co-operation and the best use of previous experience.

Sufficient resourcing in the planning and design phase minimizes the risks of costly mistakes, and schedules should contain buffers for the unexpected.

Interface handling between the different parties is crucial for the success of a conversion, due to the short lead time involved. Therefore, detailed and defined specifications and areas of responsibility are the key to a successful engineering result. A document management system that is open and available for all involved engineering parties enables revision handling and better interface communications.

Engineering review meetings with subcontractors, the yard and the customer, guarantees that no additional change requests to the design appear during the actual installation work at the yard.

Laser scanning of the vital parts of the vessel can be recommended if the added values are seen as being crucial.

Scanning of the structure is dependent on the available drawings and CAD models of the vessels.

The classification and quality assurance of all engineering work and equipment installed in a conversion is the responsibility of the project team working closely with the classification societies. Classification requires a project-specific Failure Mode and Effects 44 BC Shipping News October 2012

Analysis (FMEA). The HAZOP or FMEA would be based on the already available FMEAs of the engine and gas fuel feed system. During the project execution, close co-operation with the classification society is crucial in order to ensure that all class requirements are met and fulfilled as a result of the conversion.

The conversion work at the yard is managed by the site manager, who is part of the project team. Further to the actual installing of all new equipment commissioning, the quay and sea trials of the vessel are the responsibility of the site manager.

Tailoring a service agreement After conversion, the propulsion train can be operated as normal. Improved reliability and assistance based on the ship operator’s needs and preferences can be achieved following conversion.

By teaming up with partners at an early stage, maintenance schedules can be jointly developed, which often results in: • improved reliability and availability; • extended maintenance schedules, but in a controllable way; • optimization of the maintenance planning and execution — doing the maintenance at the right time and place to ensure economic benefits (lifecycle management); • reduced risk exposure for the ship owner; • long-term savings in operation and maintenance costs due to improved lifecycle costs; and • improved fuel consumption as an additional plus from assuring optimal running values.

Case study and references Wärtsilä performed the first conversion of a marine vessel from heavy fuel oil (HFO) to liquefied natural gas (LNG) operation when the MT Bit Viking was converted in 2011. The total scope included the installation of two 500 m3 LNG fuel storage tanks (LNGPac) on the ship’s deck, converting the two existing Wärtsilä 46 engines to Wärtsilä 50DF engines, the installation of two LNG bunkering stations, all the LNG and gas piping onboard, updating the vessel’s automation, and the gas detection system. Furthermore, the classification documents were updated as required.

October 2012 BC Shipping News 45

LNG ENGINES This included, among other things, updating the stability handbook and docking plane.

The project started in the summer of 2010 with the signing of the project contract. The engineering, procurement, and manufacturing started immediately thereafter and continued into the summer of 2011. The conversion work was finalized in autumn of 2011, and the project was completed in October 2011. The conversion of the engines to DF operation was carried out in just six weeks.

Since 2005, Wärtsilä has converted 40 diesel engines to dual-fuel engines in land-based power plants around the world.

Conclusions The key driver in the increasing interest in LNG as a marine fuel, on a global level, is the increased focus on reducing emissions. In whichever way the ship owner prefers to address future trends regarding fuel prices or emission abatement methods, Wärtsilä can meet such

46 BC Shipping News October 2012

Complete vessel conversion:

• Engine conversion • LNG tank(s) and foundation • LNG/NG double walled piping • Gas detection and fire suppression Inert plant/N2 storage and control air • Bunkering station(s) • Automation and control system • Exhaust pipe gas burst disc(s)

LNG tanks and components required for a LNG conversion. needs for both new builds as well as gas conversions. An already established track record of completed turnkey conversion projects is available, including the SOx scrubber conversion of the Containership VII vessel, and the LNG conversion of the Bit Viking. The longterm commitment to this strategy can

be further exemplified by the acquisition of Hamworthy to add even greater strength to the company’s environmental capabilities. The lead time from idea to completion may require up to one and a half years, and starting such discussions in good time is essential if the potential 2015 deadline is to be met.

engineering

BMT Designers & Planners

Port Engineers of tomorrow

O

nce considered as solely advisors, Port Engineers must now, not only understand, but enforce the many requirements associated with managing the repair and sustainment of an organization’s maritime assets. This will include surface preparation and preservation, drydock evolutions and safety, propulsion system alignment and welding processes and procedures etc. Taking a particular project from cradle to grave and becoming the single point of contact is no simple feat, therefore it is vital that today’s Port Engineers are properly equipped with the necessary skills.

The United States Coast Guard’s (USCG) recent modernization program saw such a step change in the role of their Port Engineers. In order to better equip them with the necessary skills, the USCG turned to BMT Designers & Planners, a subsidiary of BMT Group Ltd. Charlie Marino, Maintenance Analyst at BMT Designers & Planners, discusses the diverse skills Port Engineers require. He also highlights the bespoke training approach undertaken for USCG, ensuring that they are able to meet the challenges and in turn, help to maximize the organization’s investments.

Recent re-organizational changes within USCG have led to significant modifications in the way its Port Engineers (PEs) operate. In 2009, the USCG made the strategic decision to change its structure under its ‘Modernization’ model. Within this model, the organization set up Product Lines placing types of ships/vessels into specific categories. The Product Line then quickly became the single point of contact providing accountability for system support, right from introduction to retirement.

Recent re-organizational changes within USCG have led to significant modifications in the way its Port Engineers (PEs) operate.

Each Product Line now has three discrete branches, the first of which is the Engineering Branch that responds to technical service requests, develops and maintains all maintenance procedures, preserves asset configuration data, approves all parts for use and conducts reliability analyses. Secondly, the Supply Branch concerns itself primarily with supporting the budgetary and supply management needs for the

asset, including spare parts provisioning and procurement services.

The final branch is the Programmed Depot Maintenance (PDM) Branch which concentrates on planning and managing all depot maintenance activities, including dockside and drydock availabilities at both organic and commercial shipyards. It is within the PDM Branch that the USCG’s PE’s role now sits, working as a direct representative between the Product Line and the vessels for which they are responsible. PEs now have to deliver all planning and execution of depot level maintenance for each vessel that is assigned to them.

Prior to the modernization program, PEs were involved with maintenance planning albeit at a far lesser extent than is required under the new organization. The diversity of the skill set needed to perform as a PE in the USCG is certainly noteworthy. Firstly, the PEs are required to perform complete hull, mechanical, and electrical (HM&E) assessments on each of their assigned vessels. Although the manner in which these complex assessments are completed is the same, the intervals of the assessments are in different periodicities dependant on the type of vessels for which each Product Line is responsible.

October 2012 BC Shipping News 47

engineering It is also the job of the PE to continually assess the work required on each vessel assigned. This includes work identified by the individual vessel’s Chief Engineer, any work generated by engineering changes to upgrade systems and all scheduled maintenance items. This is where the PE will be expected to work with the PDM Branch in order to develop the vessel’s work packages, both dockside and drydock.

Being the primary contact between the contractor performing the maintenance work, the USCG Contracting Officer and the PDM Branch, a significant part of the PE’s role is to manage the overall maintenance project effectively. Ensuring all processes are followed during repair availabilities and providing detailed reports is vital.

• National Association of Corrosion Engineers (NACE) corrosion inspector program level 1 certification training • Warranty administration and contract close-out It was often the case that the USCG would assign people to position by virtue of rank, not necessarily related experience. Consequently, PEs within the USCG could be a Junior Officer, mid-level enlisted person or senior enlisted person with diverse backgrounds. Therefore, without sufficient training it would take many, many years to obtain the necessary experience in

order to carry out the responsibilities now required of a Port Engineer.

Prior to this course being developed, the USCG’s approach to training their PEs was fragmented and often they would only ever receive ad-hoc training on the job, or their Naval Engineering Support Unit may have sent them to a commercial school to be taught in one specific area such as welding. Through this training program, PEs can now better understand the overall structure of the USCG and how they fit within the organization.

The training also helps PEs to overcome the operational challenges they

Drawing on years of experience, BMT has developed a unique training programme helping to prepare today’s PEs to meet changing requirements.

The USCG quickly recognized that individuals carrying out the new range of PE duties needed additional training and no current program could provide all the different skill sets required. In an effort to develop a bespoke Port Engineer Training Course (PETC) that had both a curriculum as diverse as the skills required and the ability to complete practical handson exercises in support of learning the required skills, the USCG approached BMT Designers & Planners.

Drawing on years of experience, BMT has developed a unique training programme helping to prepare today’s PEs to meet changing requirements.

Delivered over four weeks, the course includes key areas such as: • Operator, engineering, contracting and shipyard organizations • Preparing for a maintenance period • Engineering administration including contract workbook database and logistics support systems • Fundamentals of project management • Weld inspections and nondestructive testing • Drydocking • Propulsion system alignment 48 BC Shipping News October 2012

Port Engineers must manage the overall maintenance project — both dockside and drydock.

engineering may face in their day to day role.

Without the right type of training, PEs may find it difficult to address questions such as how to assess what needs to be done and when to do it, as well as knowing what work to schedule when.

Providing the information needed to determine what work to perform when, whilst always considering time and budget and managing risk within the project, is an integral part of the training programme delivered by BMT

The diversity of the skill set needed to perform as a PE is certainly noteworthy.

who instructs on the type of work that should be accomplished to a vessel in drydock, directly comparing that to the type of work that should be accomplished dockside.

Another challenge for the PE might involve how to deal with a contractor that isn’t performing as expected or that may not be familiar with the references detailed in the specification.

The training provides the tools to better understand and interpret any references within the specification to avoid any miscommunication.

As we continue to face uncertain economic times ahead, the shipping industry is looking at ways of ensuring its maritime assets are well protected.

PEs now play a significant role in providing accountability which in turn, will allow for improvements to be made in the completion of maintenance and availability of work, on time and within budget. Training its PEs to the standard now required has given the USCG the opportunity to reap those benefits — the question is will other organizations follow suit?

October 2012 BC Shipping News 49

tugs & barges

Hard to choose just one...

R

obert Allan Ltd. has been busy.

Over the past month, they have unveiled no less than seven new deliveries. Rather than pick just one to review in this issue of BC Shipping News, we’re bringing you all seven! Details on each vessel, including general arrangement drawings and specifications, can be found at www.bcshippingnews.com.

Starting with a series of three RAmparts 3200-W tugs delivered to the Saudi Ports Authority, the Rasalkir 1, Rasalkir 2 and Rasalkir 3 are powerful ship-handling/terminal support tugs designed to act as harbour, escort, pollution control and fire-fighting tugs for the ports of the Kingdom of Saudi Arabia, in both the Red Sea and Arabian Gulf waters. RAL worked closely with

Zamil Offshore Services (Saudi Arabia) who built the tugs.

The next two tugs — delivered to Abu Dhabi Ports Company from Grandweld Shipyards in Dubai — are the RAmparts 3200 design, specially designed to assist in marine and harbour operations at Khalifa Port, including escorting and towing, mooring/ unmooring and fire-fighting operations. The design of the Al Fenci and the Al Durrah is based on an intended low-manning opeation with a high standard of machinery automation.

The vessels were classed and built according to ABS notations.

The Z-Tech 6500, ICDAS 19 was successfully delivered to ICDAS Port Operations in Turkey (built by sister company, ICDAS Shipyards). The Z-Tech

6500 is a unique class of ship-handling tug designed to provide a combination of the superior handling characteristics of an ASD tug with that of of a Z-drive tractor.

Rounding out recent deliveries is the Doña Clary, a RAmparts 3700 ASD tug to Serviport S.A. of Colombia (built

by Cotecmar shipyard in Cartagena, Colombia). The Doña Clary is the first of the new RAmparts 3700 class design and features enhanced manoeuvring and sea-keeping capabilities and is fully equipped for ship-assist, long distance towing, fire-fighting, anchor-handling, cargo handling and other offshore support duties.

More details online at www.bcshippingnews.com.

The Rasalkir 3 — part of a series of RAmparts 3200-W tugs delivered to the Saudi Ports Authority.

The Al Fenci, one of two RAmparts 3200 tugs delivered to Abu Dhabi Ports Company.

The Z-Tech 6500, ICDAS 19, delivered to ICSAS Port Operations in Turkey.

The Doña Clary, a new RAmparts 3700 class design delivered to Serviport S.A. of Colombia.

50 BC Shipping News October 2012

training Onboard training proves critical for safety at sea

A

SOLAS-approved fast rescue boat using the vessel’s righting system. Mariners in immersion suits are instructed on what actions to take immediately following a FRB capsize including how to use the buoyant umbilical to keep the crew together and how to activate the roll over bladder. Once righted, the instructor directs the trainees into the FRB and teaches them post-capsize skills.”

Q3 Marine Training Solutions instructors have trained many mariners aboard different types of ships and have worked with a variety of boats with complex launch and recovery equipment. In addition to offering classes on Survival Craft, Water Rescue training, Computer-Based Training and Team-Building Workshops, they can

also design custom variations to meet the specific demands of any vessel or fleet. They will also undertake a variety of assignments to address safety training including LSA equipment audits, analysis and recommendations; crew skill assessments; and new equipment commissioning and training.

“Our clients have recognized the benefit of being serviced by a company that provides a comprehensive suite of services,” said Wilson. “We become partners in safety management with our clients, giving them the assurance that all of their needs — and especially the safety of their crew — are being met. Our goal is to ensure that the crew are prepared for any emergency and we work with companies who share that goal.”

Photo credit: C.I.Hood

The Fast Rescue Boat course combines practicum training and skill assessment drills.

Photo credit: C.I.Hood

s any mariner will attest, safety of life is the priority for any voyage regardless of the type, size or destination of a vessel. The International Maritime Organization requires all professional mariner certifications to be compliant with Standards of Training, Certification and Watchkeeping requirements including Basic Safety Training and Proficiency in Survival Craft and Rescue Boats. It is the latter requirement — Proficiency in Survival Craft and Rescue Boats — that can potentially become a problem if crew have not been trained properly.

According to Graeme Wilson, Principal at Q3 Marine Training Solutions (Q3), familiarizing yourself with onboard life-saving appliances (LSA), while a critical first step, does not ensure proficiency. “With over 80 manufacturers of LSA equipment, crew need to be fully trained for the specific system onboard their vessel,” Wilson said. “When a real emergency arises, it’s too late to read the instruction manual or realize that the system you have now is not the same as the one on your last ship.”

Wilson further notes that shipboard training and drills are key to preparing crew to respond quickly and effectively. “Q3 finds itself at the intersecting point between technology, training and human behavior...certainly an interesting place to be but also one of critical importance, not only for ship’s crews but for senior operational, financial and risk managers worldwide.”

In addressing the need for a full, multi-dimensional approach to marine training and certification, Q3 has designed a number of programs — all US Coast Guard and Transport Canada approved — that start with that initial familiarization and then build up the competency levels of crew to ensure that they have the knowledge and the confidence to react competently in a real emergency.

Taking the Fast Rescue Boat course as an example, Wilson notes that Q3 combines practicum training and skill assessment drills with simulated real life scenarios. “Capsize exercises are conducted with an actual 7.3-metre

Free fall training and onboard drills provide additional assurances that crew are ready in the case of an emergency.

October 2012 BC Shipping News 51

nautical sciences Nautical Sciences graduates ready for the future

B

CIT’s Nautical Sciences graduates were greeted by a loud round of applause from family, friends and representatives from the shipping industry as they entered the ceremony to recieve their certificates in Nautical Sciences. Following welcoming remarks

from Jeff Otto, Co-operative Education Co-oridinator with BCIT’s Marine Campus, emcee Captain Phil Douglas (Assistant Manager, Vessel Operations, Seaspan Ferries Corporation) congratulated the graduating class and recognized their efforts and dedication of the

Standing with the Nautical Sciences Class of 2012 are (far left), front row: The Honourable Naomi Yamamoto, second row: Paul Dangerfield; top row: Laurie Sterritt.

past four years that led to this moment.

Speeches from the Honourable Naomi Yamamoto (Minister of Advanced Education, Government of British Columbia); Laurie Sterritt (BCIT Board of Governors); Paul Dangerfield (BCIT Vice President, Education, Research and International); Captain Louis D’Mello (Nautical Sciences Instructor, BCIT Marine Campus); Jeff Otto; and Class Valedictorian Andrew Turner who has already been hired on by Princess Cruises as a Deck Officer.

Following the presentation of their certificates, Achievement Awards were given to: • Jessica Calado (Oak Maritime Award presented by Jeff Otto).

• Dmitry Belyakov (Algoma Central Corporation Award presented by?).

Duncan Graham (Chamber of Shipping of British Columbia Award presented by Captain Stephen Brown).

• Jane Woo (British Columbia Ferry Services Award presented by Captain Jamie Marshall).

• Jessica Calado (Vancouver Maritime Arbitrators Association Award presented by Captains Alex Smith and David Read).

• Andrew Turner (Conway Club Book Award presented by Captains Donald Trantor and Ian Hopkinson).

• Darren Pereira (Nautical Professional Education Society of Canada Book Award presented by Captains David Whitaker and Brian Johnson).

Congratulations to the Nautical Sciences Class of 2012!

Dmitry Belyakov James Bone Jessica Calado Duncan Graham Stanislav Karateev Taylor Lawson Darren Pereira Andrew Turner Jane Woo

Quality welding solutions for the marine industry.

52 BC Shipping News October 2012

More photos online at www.bcshippingnews.com in our Photo Gallery!

technology New advanced technology from 118-year-old company

T

he inventors of the world’s first carbon arc searchlight (for the Mark Twain paddlewheel boats) and the world’s first toy electric train — Carlisle & Finch Co. — have developed SmartVIEW™ technology — a new powerful microprocessor-based control system which allows vessel operators to control Carlisle & Finch products (the NightFINDER™ systems as well as their standard Searchlight products), from any screen onboard the ship or from a remote PC anywhere in the world.

The NightFINDER™ is the combination of a high-intensity searchlight and night vision camera integrated onto the same pan/tilt base, the only system of its kind today. Carlisle & Finch’s SmartVIEW™ technology will allow this powerful NightFINDER™ product, as well as any of their standard searchlight products, to be controlled through the Ship’s Integrated “Glass” Bridge.

In addition to the powerful network connectivity, SmartVIEW™ technology provides the following additional benefits as well: proportional-speed multifunctional joystick, joysticks which “intelligently switch” from searchlight to searchlight, an Ethernet connection allowing digital control throughout the ship’s IT network, and remote Internet control from any PC anywhere. Carlisle & Finch has targeted initial shipments to be delivered toward the end of the 1st Quarter of 2013.

Founded in 1894, Carlisle & Finch has been a pioneer in the development of new lighting technology for over 118 years. Following their inventions of the carbon arc searchlight and electric trains, they were instrumental in building marine lighting products to help with the First World War effort. Continuing its leadership in the development of new lighting technology, they also pioneered the use of xenon arc searchlights for marine use.

Today, Carlisle & Finch lighting technology is used in a number of industry sectors in addition to commercial marine applications. They are the approved defence contractor for the U.S. Military and their products have been a standard for defence forces around the world,

Advanced micro-processor controls allow any searchlight or NightFINDER™ system to be controlled seamlessly, from any screen onboard or from any remote PC via the Internet. including Israel, Canada, Mexico, Brazil, Australia, New Zealand and many more. They manufacture single and double drum rotating lighthouse beacons (and are the standard supplier to the U.S. Coast Guard for these) and have created a line of searchlights with

features specifically designed for prisons and security firms as well as the anti-piracy industry.

In Canada, the distributor for SmartVIEW™ is Jastram Technologies (w w w.ja s t r a mte c h nolo g ie s.com).

BCSN

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T: 604-893-8800 / E: jane@bcshippingnews.com or visit: www.bcshippingnews.com October 2012 BC Shipping News 53

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