BC Shipping News - September 2014

INSIDE: A LOW-COST SOLUTION TO GPS VULNERABILITIES

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

Volume 4 Issue 7

www.bcshippingnews.com

NEWS September 2014

Industry Insight

Curtis Grad CEO, Greater Victoria Harbour Authority

Ports

Ray Dykes’ annual B.C. ports review

Environment

Living life under the environmental microscope SEP

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Contents

NEWS

September 2014 Volume 4 Issue 7

Cover Story

23

44

Class society

Staying on top of the industry: An interview with Luis Benito, Global Marketing Strategisy, Lloyd’s Register

46 Events

New Wave Conference energizes attendees

48 7 8 12

Editor’s note

By Jane McIvor

20

History lesson

23

B.C. ports

34

Cargo logistics

In brief

Industry traffic and news briefs

Industry insight

A fine balance Curtis Grad, CEO, Greater Victoria Harbour Authority Grad’s skills — and attitude — are the kind that serve leaders well when the job includes building consensus on a common vision.

Policing the Port The rise and fall of the Ports Canada Police

By Lea Edgar

B.C. ports review One thing B.C. ports have in common: oozing optimism

By Ray Dykes

Trade reliant, trade compliant

By Darryl Anderson

Legal affairs

Arrest of ships 101

By Peter Swanson

50 Technology

A low-cost solution to GPS vulnerabilities With Helmut Lanziner

52

Maritime security Naval recapitalization and shipbuilding

By Richard Gaudreau

42

37 Environment

Living life under the environmental microscope

By Captain Stephen Brown

40 Training

No time to rest BCIT grads snapped up by eager employers

42 Ferries

12

Interferry Vancouver forum to map vision for ferry safety

By Len Roueche

On the cover: Ogden Point, Victoria , B.C. (photo credit: Dave Roels — www.daveroels.com); above: Port of Vancouver’s south shore (photo credit: Dave Roels — www. daveroels.com); bottom right: BC Ferries’ Coastal Renaissance (photo credit: BC Shipping News); bottom left: Curtis Grad (photo credit: Dave Roels — www.daveroels.com).

September 2014 BC Shipping News 5

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

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6 BC Shipping News September 2014

International Sailor’s Society Canada

EDITOR’S NOTE

Photos by Dave Roels, www.daveroels.com

In a word: balance

T

here comes a point in the production of each edition of BC Shipping News — once all of the articles are in and layout has begun — that an underlying theme emerges.

While we have our overall focus on ports for this issue, you’ll see that the message of balance is evident in more than a few stories herein.

The interview with Curtis Grad, CEO, Greater Victoria Harbour Authority, is an obvious one. The delicate balance achieved between so many interests is a textbook example of how collaboration, when done right, can result in success for the majority.

But the theme of balance presents itself in other ways. There is the call for balance between conservation and economic growth that you’ll see in Captain Stephen Brown’s article; and the need to

balance and diversify the products that go through B.C.’s ports to ensure a healthy portfolio — one not too reliant on any given resource; balance can also been seen in Richard Gaudreau’s article on naval recapitalization and shipbuilding to ensure the Navy gets the vessels they need and Canadians get the benefit of jobs.

As you read through this month’s issue of BC Shipping News, keep the theme of balance in mind. It’s a good message.

— Jane McIvor

September 2014 BC Shipping News 7

INDUSTRY TRAFFIC Schneider Electric introduces pre-designed, ready-to-use system for shoreside grid power to ships at berth

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reliability of each element and the entire solution is guaranteed through Schneider Electric’s TVD (Tested, Validated, Documented) process.

To find out more, contact Bill Jackson by email: Bill.Jackson@schneider-electric.com or visit www.schneider-electric.com.

Photo courtesy Schneider Electric

he ShoreBoX TM is a patented and tested marine solution from Schneider Electric based on modular architecture and standardized technical containers to ensure ease of installation, modularity and scalability. Through unique design, ShoreBoX connects vessels to the shore grid when berthed, a solution that allows alternator diesel engines to be shut down and totally eliminates emissions, noise and vibrations.

“The ShoreBoX maximizes CAPEX and OPEX investments while maintaining the quality of service offered to customers,” said Bill Jackson, marine sector manager, Schneider Electric Canada.

“This ensures the right investment for the right purpose and is already deployed in locations as diverse as Latvia, Morocco and Indonesia. With its versatility, the ShoreBoX is uniquely positioned to handle Canadian weather patterns.”

The type and number of modules and containers within the ShoreBoX solution

Schneider Electric introduces ShoreBoXTM to the Canadian market.

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8 BC Shipping News September 2014

06/03/2014 19:26:33

NEWS BRIEFS Vard Marine acquires STX Canada

V

ARD has acquired STX Canada Marine Inc., a leading marine engineering and design company with more than 30 years’ history in North America, for 65 million Norwegian Krone (about $11.5 million Cdn).

Headquartered in Vancouver with branch offices in Ottawa and Houston and a workforce of over 75 employees, the new acquisition will be fully integrated with Vard Marine Inc., and operate under the Vard Marine name. The management, directed by President Dave McMillan, will continue, allowing the new organization to combine the best practices of Norwegian and North American marine engineering and design.

Following the acquisition, Vard Marine will provide a broad range of naval architecture and marine engineering services worldwide, including all aspects of ship design and production technology, total equipment and service packages, support for offshore, commercial and naval shipbuilding activities, economic and technical feasibility studies, research and analytical investigations, and model tests and full-scale trials.

Vard Marine’s portfolio ranges from offshore support vessels, offshore subsea construction vessels and semi-submersibles to icebreakers, naval and patrol vessels and research and will complement VARD’s existing product portfolio of vessel designs and equipment. The company currently has an order book of 38 ship designs for vessels under construction for ship owners and yard customers worlwide. Twenty of these orders are for offshore support vessels, constituting more than 20 per cent of the overall OSV order book in the U.S. CEO and Executive Director Roy Reite commented: “Through this acquisition, VARD is really able to accelerate its growth strategy in North America and we can rapidly strengthen our presence, capabilities and client relations in this important market. We are excited about the opportunities this generates for VARD and welcome the new clients, business partners and employees to VARD.” VARD’s majority shareholder, Fincantieri Oil & Gas S.p.A., is a wholly owned subsidiary of FINCANTIERI S.p.A. Headquartered in Trieste, Italy, FINCANTIERI is one of the world’s largest shipbuilding groups and has, over its 200 years of maritime history, built more than 7,000 vessels.

Nigel S. Greenwood

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

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

rpm

September 2014 BC Shipping News 9

INDUSTRY TRAFFIC Austral Asia Line expands Pacific service

Camosun’s Aboriginal in Trades Training students celebrate graduation

A

ustral Asia Line is expanding the pendulum general cargo and project cargo Liner service connecting North Asia (China, Korea, Japan, Taiwan) with the Pacific North West / Canada (British Columbia) into the U.S. West Coast. The service, known as the AAL Pacific Service, will now include Long Beach, California as a regular port.

Having successfully introduced the AAL Pacific Service 18 months ago, the expansion of the service profile into Long Beach further confirms AAL’s commitment to, and trust in, the Asian and North American markets.

Three 31,000 DWAT multi-purpose heavy lift A-Class vessels, with a combined lifting capacity of 700 tonnes, will operate on a monthly frequency calling on the ports of Nansha, Shanghai, Dalian, Tianjin, Busan, Kobe/Osaka, Yokohama to Long Beach, Everett, Vancouver (US) and Vancouver (CA).

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

Photo courtesy Austral Asia Line

O

The AAL Shanghai was used to bring Seaspan’s crane over from Asia.

n July 16, 2014, Camosun’s Aboriginal in Trades Training Program celebrated the graduation of 14 students from Trades Foundation programs: 12 from Welding and one each from Sheet Metal & Metal Fabrication and Automotive Service Technician.

After sharing a lunch with family and friends, the grads each received a certificate acknowledging their accomplishments.

In turn, the students showed their appreciation by presenting ceremonial paddles, made and signed by the students, to welding instructor Ry Williams and community partner Larry Underwood, from the Coast Salish Employment & Training Society.

“This program is transformational,” says Williams. “As a teacher, it was an amazing experience to see these students gain both skills and self-confidence.” Williams also included Camosun in his own educational journey, when he took the training required to gain his Welding B ticket. With years of experience in the oil and gas industry in northern B.C., he’s happy to be back on the Island to share his knowledge with the next generation of welders.

The Aboriginal in Trades Training Program is a partnership between the Aboriginal community and the Industry Training Authority with funding from the Canada-BC Labour Market Agreement. For more information: www.camosun.ca.

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NEWS BRIEFS ClassNK acquires Canada’s Helm Operations

C

lassNK has announced the acquisition of Victoria, Canada-based maritime software company Helm Operations. The deal was hailed by both parties as two world-class companies joining forces to improve safety and operational efficiency in the marine industry while greatly enhancing the success and capabilities of both organizations.

Tokyo-based ClassNK is one of the world’s largest classification societies, providing safety and certification services for more than 8,600 ships, representing about 20 per cent of the global merchant fleet. Founded in 1999, Helm Operations has grown to become a leading provider of manning, maintenance, dispatch, and HSQE software to the workboat and offshore industries. Helm software is currently used on some 1,000 vessels belonging to some of the most respected workboat companies in the world.

“This is a very exciting day for Helm,” said Ron deBruyne, CEO and Founder of

Helm Operations. “Since our founding, Helm has always been about providing great software to the maritime industry.

We’ve been able leverage the incredibly talented IT community here in Victoria, which has also drawn the attention of global leaders like Amazon and Ebay among others, and combine that with the know-how and experience from the workboat industry to create intuitive, userfriendly systems that contribute directly to improving the safety, efficiency, and profitability of workboat companies.

In ClassNK, we’ve found a partner who shares our vision of providing the maritime and offshore support sectors with the best software possible, and we’re incredibly honoured and excited by the potential for new developments that this new partnership will create.”

Yasushi Nakamura, Representative Director and Executive Vice President of ClassNK, praised the purchase, saying: “At ClassNK, our mission has always been to ensure that global innovation is

put to use for the benefit of the entire maritime industry. Commencing with the acquisition of NAPA earlier this year, and now the acquisition of Helm, we are bringing together a team of leading software companies from around the world to help achieve that goal.

We’ve witnessed the impressive growth and success of Helm’s software systems over the years, and have seen first-hand the incredible value that Helm’s software provides to workboat companies.

Through this acquisition we can provide Helm with the resources and reach to even further develop their industry-leading software systems for all aspects of ship operations, and in turn make them available for everyone in the industry around the globe. We very much believe that Helm’s innovative solutions can contribute greatly to the improved safety and efficiency of shipping companies — and are excited about being able to ensure these technologies are available industry-wide.”

September 2014 BC Shipping News 11

INDUSTRY INSIGHT

A fine balance

Curtis Grad, CEO Greater Victoria Harbour Authority

C

urtis Grad, CEO, Greater Victoria Harbour Authority, made a comment during our interview that, while taken out of context here, sums up the character of Victoria Harbour: “…it really is a diverse patchwork of ownership and leasehold rights, but it’s managed quite seamlessly to the public.” Grad’s job involves more than just managing the operations of four unique properties within the Harbour in conjunction with commercial, First Nations, environmental, government and residential interests, to name just a few. Tasked with the challenge of developing a master plan for its properties that will provide both financial and social sustainability into the future, Grad’s skills — and attitude — are the kind that serve leaders well when the job includes building consensus on a common vision, moving that vision forward to reality and all the while maintaining a fine balance of stakeholder and public interests.

BCSN: I’ d like to understand more about the structure of GVHA — both in terms of governance and what properties and responsibilities fall under your jurisdiction.

CG: When the Harbour Authority was created 12 years ago, it was on the heels of an airport divesture program that Transport Canada started in the early 1990s. Smaller airports were divested entirely to local interests and Transport 12 BC Shipping News September 2014

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

...Grad’s skills — and attitude — are the kind that serve leaders well when the job includes building consensus on a common vision, moving that vision forward to reality and all the while maintaining a fine balance of stakeholder and public interests.

Canada retained ownership of the larger airports which are leased to airport authorities. In the case of smaller airports — for example, Nanaimo or Abbotsford — they were sold fee simple to the local authority or community for one dollar.

Victoria Harbour followed in a similar program for ports and harbours. A portion was divested in fee simple to the new harbour authority, a not-for-profit organization, which ended up owning four properties — Ogden Point, Fisherman’s Wharf, Causeway and Ship Point, and Wharf Street to Johnson Street. We also lease Mermaid Wharf, the Steamship Terminal and the Undersea Gardens waterlot from the Provincial Government.

What is a bit odd about Victoria is that the business of divesture was not fully completed. The Federal Government had planned not only for the foreshore land and waterlots to be transferred to a local authority but also the seabed and the harbour master function as well. For a variety of reasons — outstanding First Nations negotiations and environmental

concerns — that was taken off the table and, to this day, remains unfinished business of the divesture of 2002.

In addition to that, Victoria Harbour is the only place I know of where the National Airport Policy remains unfinished business as well. The water airport, which happens to operate on top of the seabed of Victoria Harbour, is also another un-divested operation for a variety of other reasons.

BCSN: Are there plans to resolve these any time soon?

CG: I think there is a strong desire on behalf of the Federal Government to finish what was started. I know they have many things on their list — this is one and maybe it hasn’t percolated to the top yet. I had discussions with the Minister of Transport last year and she made it clear that this was unfinished business and they would like to see this file closed.

When I say closed, there are a handful of airports and ports across the country that have not yet been fully divested. These are remnants of a by-gone era. There are a few

INDUSTRY INSIGHT Photo courtesy of the Bateman Foundation.

others around the country that federal government employees have to continue to manage and administer even though a conscious decision has been made to get out of the business. We just have to wait and be ready for when the Federal Government decides to make it happen.

BCSN: You don’t follow the same rules as the Port Authorities under the Canada Marine Act. Does this give you more or less leeway when managing the properties?

CG: That’s right, we are identified as a non-federal harbour so a different set of rules apply. It probably gives us more leeway in terms of how we can commercially operate, but less certainty in terms of regulatory or seabed authority as an example.

For example, Port Metro Vancouver has more ability to regulate what happens on the water whereas GVHA is a notfor-profit corporation and does not have the legislative or enforcement powers of a crown federal agency.

BCSN: Could you give us an idea of the ownership and governance structure for the properties that don’t fall under GVHA jurisdiction?

CG: It is definitely a coat of many colours — a multi-ownership, multi-jurisdictional mosaic. In addition to GVHA properties, there is the Canadian Coast Guard (so federal property); some private properties, privately owned condos and developments like hotels, etc.; Belleville, which is owned by the Provincial Government; and the Ferry Terminals that operate on provincial property as for-profit operations on public land. The Steamship Terminal is owned by the province but is under long-term lease by GVHA and there is the Tourism Victoria information centre building owned by the province. Ship Point is partly owned by the City of Victoria and GVHA. Harbour Air operates on City land and beyond that, there are some harbour authority water lots and provincial upland.

This gives you an indication that it really is a diverse patchwork of ownership and leasehold rights but it’s managed quite seamlessly to the public — they don’t have the consciousness of the various ownerships. We’ve been able to operate very well in conjunction with the Provincial Capital Commission, the Province, ourselves, the City of Victoria and Transport Canada. What we haven’t been able to do is address strategic investment. It’s easy enough to get everyone in a room and ask ‘how are we going to work together to make everything operate

Spring 2013 — Curtis joins other representatives in welcoming HRH Prince Andrew, Duke of York to the opening of the Robert Bateman Centre. efficiently’. What’s really hard is getting investment into critical marine and commercial infrastructure. The challenge is in achieving a consolidated plan for how the harbour should be developed over time — trying to develop a collective vision and move it forward, knowing that not everybody is going to agree but having the strength and character as a community to follow through.

BCSN: How do you move the process forward? Who has responsibility for doing this?

CG: The one great thing that happened during the divesture was that decisions around strategic investment and operation of transportation facilities were transferred to local interests — and local authorities were set up to do precisely that. Decisions on plotting the way forward rests with local government, businesses, First Nations, the not-for-profit sector and the public. The tricky part is getting consensus, or at least enough of a consolidated voice to move forward.

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September 2014 BC Shipping News 13

Photo credit: BC Shipping News

INDUSTRY INSIGHT

Curtis joined Greg Wirtz, President of the Cruise Lines International Association - North West and Canada, at the cruise season opening receiption for 2014. Cruise accounts for 60 per cent of GVHA’s annual revenue.

BCSN: You mentioned First Nations as part of the decision-making group as well.

Could you provide some insights into that relationship?

CG: It is a very interesting and unique relationship and in some ways, ground

breaking. When the federal government undertook the divesture, they were insistent that First Nations be involved not just in the negotiation but also in the ultimate management, administration and governance of the Harbour going forward. It was

a very unique approach at the time — 12 years ago. Both the Songhees Nation and Esquimalt Nation are founding members of GVHA and what we call Member Agencies. As a not-for-profit corporation, we are accountable to our Member Agencies and two of those members are the two local nations. They are both entitled to have members on our Board of Directors. Our Vice-Chair, Chief Andy Thomas, has represented the Esquimalt Nation since our inception and is the longest serving board member we have.

This was the first time I know of where First Nations were actually invited into the boardroom to be active participants in the governance of publicly divested facilities.

There are also specific provisions within our constitution that speak to working with First Nations to find “creative” ways to have the local nations engaged in the economy of the harbour — not to just be an observer but to be actively involved in the harbour economy. We have explored a number of avenues over the past 12 years but where we’ve really made progress in the last couple of years has been in the development of a special-purpose company.

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In December 2013, GVHA, Songhees Nation and Esquimalt Nation incorporated a company — the Skwin’ang’eth Se’las Development Company — that has three main purposes: 1) to encourage and support participation in the broader economy through development of business management capacity, technical skills and employment experience of members of the Esquimalt Nation and Songhees Nation; 2) to encourage and support the development, growth and success of local businesses controlled by one or more members of those nations and, where appropriate, incubate new business opportunities for transfer on a cost recovery basis to one or more of those businesses; and 3) to promote the economic development of the Greater Victoria harbour area with an emphasis on the history and presence of the Esquimalt Nation and Songhees Nation in the area.

BCSN: What does Skwin’ang’eth Se’ las mean?

CG: It translates from the Coast Salish language to “helping hand”. Chief Andy Thomas has a great expression — First Nations are looking for a hand up, not a hand out. The company is a way of developing the infrastructure that gives a hand up and builds capacity.

BCSN: It’s early days yet but are there any examples of successes for the company?

CG: You said it yourself, these are early days still. They’re just setting up the company as an independent not-forprofit organization. They still need to fully populate the board of directors and the governance structure so they’re not so much focusing on initiatives at this point as they are at getting a good solid start to the organization.

BCSN: Do you think the recent Supreme Court ruling for the Tshilqot’ in Nation land title will have any impact on either the governance of Victoria Harbour or the land ownership make-up?

CG: It doesn’t have an impact on our current land holdings but in certain ways, it does send a strong message to communities, businesses and governments both inside and outside of the province that the status of aboriginal title rights needs to be addressed. It is very challenging for nations to build their economic independence when they don’t have title to their own land. For example, when you can’t mortgage the property to develop it, how can you compete in the modern world. That was a landmark ruling which September 2014 BC Shipping News 15

INDUSTRY INSIGHT doesn’t have a direct impact on GVHA’s properties but has a profound impact on how First Nations will be engaged and respected in negotiations going forward.

We’re quite encouraged by the ruling.

Because First Nations were involved at the beginning of the establishment of GVHA — one of those rare occasions where they were engaged in a meaningful way when divestiture happened and continued to be engaged during ongoing operations — the model of Victoria Harbour’s governance is one that can be used as an example of how to structure a meaningful relationship.

BCSN: I’ d like to spend some time looking at GVHA’s three-year business plan.

Could you provide a summary of the actions and priorities you’ve identified.

CG: At a high level, the plan looks at long-term financial sustainability which is paramount. You can’t do a lot of other things if you’re not financially sustainable. We’re only 12 years old so as a

start-up company, we’ve got our finances in order and we’re in a robust position.

The three-year plan boils down to six major strategic initiatives — four are tangible and the other two are longer term, ongoing priorities. We’ve already talked about the First Nations partnership and the completion of the divesture of the full seabed and water airport — those are two of our tangible priorities. By tangible, I mean a specific beginning and end date.

Terminal consolidation is another initiative. We have no less than nine terminals in the inner and outer harbours of Victoria. For example, we have three terminals at Ogden Point — two for cruise and a heliport. They operate out of trailers, warehouses, and one is a purposebuilt facility. So even on our own holdings there are a variety of levels of service and customer experiences which are not to the same standard.

The same can be said for the Inner Harbour. There’s a privately owned and

About Curtis Grad

S

16 BC Shipping News September 2014

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

askatchewan-born Curtis Grad has a long history in transportation management and leadership. He has managed and led airports in Nanaimo and Abbotsford, B.C., and internationally, in Jamaica, Cyprus and Jordan. His work in airports provided him with critical skills in transportation logistics and infrastructure renewal and expansion for taking over the leadership of Greater Victoria Harbour Authority in June of 2011.

When asked about the similarities and differences between airports and ports, Curtis noted that: “The more you get involved, you realize that there is a very similar set of challenges and opportunities. They have a common pedigree albeit the shipping industry has been here for centuries. Lessons learned in the shipping business are applied to rail and air — logistics, cabotage laws, trying to get perishables from one place to the other without losing the product, getting people from one place to the other — it’s really about transportation. Whether it’s rail, road, water or sky, it’s just a different way of getting things from point A to point B. “Where it really struck home for me was the revitalization of the Steamship Terminal. It was built in 1924 at the end of the steamship era and the end of the era of ship travel. But when you stand at the doors of the terminal, you realize that it was the international airport of the day. Everyone came and left Victoria from there — it was the first and last impression.”

Curtis brings a long track record of successful leadership in strategic planning, market development and operations management. He has also been involved in the B.C. tourism industry, including service as an executive board member of the Vancouver Coast and Mountains Tourism Association.

He is dedicated to working with all the harbour stakeholders to preserve the character of Victoria Harbour as a living and dynamic working harbour, marine transportation hub and accessible community asset.

Within the first six months of Curtis’ arrival, he led a team to submit the winning bid for management of the CPR terminal building with a long-term goal of revitalizing the Belleville Terminal.

operated float plane terminal, Harbour Air, and another float plane terminal for the remainder of the market owned by the Harbour Authority. We think there would be a better opportunity to bring these facilities together. Instead of having two terminals a block and a half from each other, taking up valuable water lot space and real estate, they could be combined.

We have a similar situation at Belleville with two ferry terminals. We think there’s tremendous opportunity to bring those together, build one better, higher quality, better-serviced facility at a reasonable cost and without duplication of resources.

You also have to look at Customs and Immigration — they have to serve two different buildings. Four acres of property for two terminals when perhaps you can do both terminals together on two and a half acres but much less operating cost or capital investment.

The fourth tangible priority is the harbour-wide master plan. That coat of many colours — it doesn’t need to be singular ownership of the property but it does need to be a singular consensus on the future development of the harbour and the infrastructure development.

That’s really the business we’re in. We’re a social enterprise focused on marine infrastructure development. We provide piers and port facilities so that the cruise ships, float planes, whale watchers and others can conduct their business and provide services the public need.

That harbour-wide master plan is key.

If we don’t have a consolidated view of how this harbour should develop over time, we’re going to lose money, investments and time on things that aren’t necessarily working together.

BCSN: Regarding the master plan, could you describe the process so far? What’s been done to date and how close are you to gaining consensus on a vision?

CG: When I first arrived three years ago, Ogden Point was the active file on the master planning and we were about to start the process for Fisherman’s Wharf.

Interestingly enough, we saw that the Fisherman’s Wharf plan was going to advance much more quickly with much less controversy because it was already widely accepted that what was there was what everyone wanted to be there for the future. So we leapfrogged that over the Ogden Point plan and we just concluded the process about two months ago. It took three years but now that property is fully

INDUSTRY INSIGHT planned; fully rezoned to acknowledge existing and future uses including float homes and mixed commercial business; and ready for future development and infrastructure investment.

Ogden Point is more of a blank slate and will, most likely, be more contentious.

There will be a lot more divergence of opinion on what should go on the site, but what we learned from Fisherman’s Wharf in terms of process and engagement, we are going to apply to Ogden Point.

We’ve completed two phases so far — a technical assessment and a market assessment. Phase I focused on looking at what the site is physically capable of holding — we looked at soil conditions, environmental constraints and other geotechnical considerations. Phase II looked at the market and asked industry (most notably cruise) what they could see coming into Ogden Point in the next 25 years.

We now have a very strong indication of the growth potential for cruise over the next 25 years and what facilities will be needed and we’ve also looked at the noncruise sector. The conclusion for noncruise business has been that it’s more of an opportunistic market — for example, the LNG industry, should it all come to fruition, might be in need of some staging or wharfage. That would be incremental work that is more opportunistic that we could take advantage of when they arise.

Phase III is all about facility planning — what don’t we want on the site and what do we — collectively as the Harbour Authority, business and the community.

Early next year, we’ll be re-engaging the public as we get underway with facility planning. That will take about 18 months. Based on previous experience with Fisherman’s Wharf which took three years, we’re about half way through the process for Ogden Point right now.

BCSN: Regarding non-cruise commercial activities like LNG staging, how would you fit that in without interrupting the space for cruise?

CG: That’s the challenge. We’ve identified that cruise is and will most likely continue to be our core business at Ogden Point but during the off season and infill during the summer during noncruise days, there are other businesses that we can do and we’re seeing some of that already — like ship and interior hold cleaning. Western Stevedoring has already brought some of that work to Victoria. Yacht transport is an existing

business that is continuing to grow and find a home in Victoria as well. Those ships are coming in seasonally bringing boats from a more tropical market in here during the summer and moving them out during the winter and that’s a business that’s building as well.

And then small niche things show up — for example, we had an opportunity a couple of years ago where a log carrier had a problem on its way to Japan and had to come back to port. They had to unload what was left on their deck on to our pier and for three and a half months we had logs being sorted and stored while they arranged to reship the load.

Victoria will never be an industrialized port like it was 40 years ago. It’s going to find a more niche-oriented business when it comes to the marine industrial side, but the reality is that cruise will be the predominant use on that site in the foreseeable future.

BCSN: In terms of cruise — the James Bay neighbourhood has raised numerous protests. Could you give some insight into how you’re working to address their concerns?

CG: We’ve certainly put a lot of effort into trying to address community concerns — not just because we’re trying to appease local concerns, which is important, but because it’s also good business.

It’s good business to determine what you’re impact is on a community and to manage and mitigate that. We’ll never completely eliminate all of the sources of complaints but we are taking some progressive steps and doing some pilot projects — like engaging BC Transit to lease their buses in the summer months for shuttle operations and using more efficient, higher-capacity buses including double-deckers. Another example is the capital investment we’ve made for a multi-purpose float at Ogden Point that allows water shuttles to take cruise passengers downtown. The whale watchers can also launch from Ogden Point instead of Fisherman’s Wharf so that is saving several hundred bus trips through the community as well.

There are small pieces of the puzzle that we’re starting to put into place but we still need to plan the long-term strategy as

September 2014 BC Shipping News 17

INDUSTRY INSIGHT There are small pieces of the puzzle that we’re starting to put into place but we still need to plan the long-term strategy as well...We work in a multijurisdictional area that sometimes takes a bit of work to navigate. well which means working with the cruise lines, bus operators and regulators like the federal and provincial governments as well as the City. We work in a multijurisdictional area that sometimes takes a bit of work to navigate. Air emissions and navigable waters are regulated by the Federal Government; passenger vehicles operating to and from Ogden Point are regulated by the Province; things like noise and zoning fall under the responsibility of City Council, so trying to work with all three jurisdictions to get their support and meet their criteria is a bit of a challenge.

BCSN: You recently announced a decision not to pursue shore power. Could you

comment on the reasoning behind that decision?

CG: We took a long, hard look at it.

The analysis of shore power started prior to my arrival three years ago and the world looked very different then. Now, cruise lines have announced a commitment to install scrubber technology which will address not just SO2 emissions but will also remove particulate matter and other contaminants. It’s a vastly superior solution to simply just focusing on sulphur emissions and there is no need to invest in all of the ground-side infrastructure — especially, as in our case, where we have cruise ships five months of the year. In Victoria, shore power was only going to

About the Greater Victoria Harbour Authority

G

reater Victoria Harbour Authority (GVHA) is a not-for-profit corporation governed by a local Board of Directors, which is accountable to GVHA’s eight Member Agencies including; the Capital Regional District, City of Victoria, Esquimalt Nation, Greater Victoria Chamber of Commerce, Songhees Nation, Tourism Victoria, Township of Esquimalt; and the Victoria/Esquimalt Harbour Society. It owns and operates deep water, marina and upland holdings throughout Victoria’s harbour including the large vessel Ogden Point port facility, Victoria’s renowned Fisherman’s Wharf, and the inner harbour’s luxury yacht and marine tourism facility at Ship Point. GVHA’s vision is a harbour where people live, learn, work and play; a spectacular gateway into Victoria’s past and into its future, monumental in look and feel, linking communities and all people together.

Vision – “We envision a harbour where people live, learn, work, and play; a spectacular gateway into Victoria’s past and into its future, monumental in look and feel, linking communities and all people together.”

Mandate – “To be effective and respected advocates for best water, marine and marine-related use and development of the whole harbour while optimizing current and future harbour assets.”

Lines of business include shipping (cruise, moorage for cargo hold cleaning, yacht transport, etc., and cruise shuttle service); marinas and events (moorage, hosting events, causeway artists/night market); and commercial leases and licences (retail, food & beverage, eco-tours, marine fuelling, etc.).

Over the past 12 years, GVHA has built a strong, durable and self-sustaining financial foundation upon which long-term economic, social and environmental sustainability can be realized.

They have re-invested in, and improved, key strategic harbour assets to ensure the continued role and evolution as a “working harbour” and economic driver and have taken concrete steps to actively engage the Esquimalt Nation and Songhees Nation in the local harbour economy.

For more information, please visit: www.gvha.ca 18 BC Shipping News September 2014

capture 30 per cent of our traffic because of the way our port is laid out and the size of ship that can use that facility. It was going to cost upwards of $10 million to serve one berth and it just didn’t make sense. And because we’re a port of call as opposed to a home port and the average call is six hours, it would take too long to hook and unhook the connections. The main reason though is that the majority of emissions occur when the ship is coming in and coming out. It’s when they’re under power that you get the strongest emissions and the scrubbers take care of that.

BCSN: Before our sideline on cruise, we were going through your business plan priorities — I believe you were just about to describe those initiatives that are longer term in scope.

CG: Right. We spoke about the First Nations partnership which, while a tangible initiative was identified, is also part of our longer-term focus. Then ultimately, there are the “umbrella concerns” like long-term sustainability including environmental and social impacts of which stakeholder engagement is a big piece of that. We can’t run our business without engaging with our stakeholders — from industry to government to local residents.

Knowing and accepting that not everybody’s going to agree precisely with the direction we choose and that we’ll never get 100 per cent consensus on what we do, we operate in a “functional democracy” and have to try to go forward with the things that are going to be of the greatest benefit to the most people. For example, we may have an operation that has an impact on a community and we need to manage that very closely but it also has a broader economic impact and benefit to the community so it’s a balancing act.

BCSN: I would imagine that it’s not just a balancing act but an exercise in diplomacy as well.

CG: Absolutely. We try to move forward by keeping focused on what is right for the community, knowing that not everybody will be 100 per cent happy but better that most are happy and you respectfully manage the things that are impacting people who may not agree with you or what’s being done.

The main thing is to keep that longterm goal in mind. You look at that on the horizon and keep moving toward it. It requires a good deal of patience and persistence. BCSN

September 2014 BC Shipping News 19

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

I

By Lea Edgar Librarian/Archivist, Vancouver Maritime Museum

In 1983, the Canada Ports Corporation Act supplanted the National Harbours Board Act and a system of individual port corporations was created. This was the official start of the force called Ports Canada Police... introduction of the National Harbours Board Act of 1936. Every port had its administration brought under the control of the National Harbours Board (NHB) in Ottawa. The harbour police forces in operation at the time continued to operate autonomously, although subject to the local port management. In 1954, the Act was amended to allow for the appointment of police constables. These constables were deemed “peace officers” and had jurisdiction over not only NHB property, but anywhere within a 25-mile radius of the property. Things carried on much as they did before until a 1968 report found the separate forces in the various ports to be exceedingly ineffectual and crime was running rampant. The NHB then decided to officially amalgamate all the individual forces into one force called the National

Photo courtesy Vancouver Maritime Museum

n Vancouver’s early days, policing the port fell to various agencies, including the municipal police. In 1910, the chief constable of the Vancouver Police Department (VPD) asked the city to purchase its first police boat. This vessel was called VPD 1 and was purchased for $4,712.77. The chief constable reported the following year that the police were able to reduce instances of opium smuggling thanks to the new vessel. That year, in 1911, the Vancouver Police Marine Squad was created and was the first of its kind in Canada.

The Vancouver Harbour Commission was officially formed in 1913, although the harbour had been operating informally since 1864. Police constables were not hired until 1921 as stated in the annual report of the Vancouver Harbour Commissioners. The constables’ duties included the “prevention of accident, fire, explosions, pollution of the waters of the harbour with oil, debris or offal and other insanitary and offensive practices.”

All the individual ports across the country faced major changes with the

The rise and fall of the Ports Canada Police

1971 annual inspection of the National Harbours Board Police, Vancouver Detachment.

20 BC Shipping News September 2014

Harbours Board Police. Vancouver was the last port during this reorganization to be brought into the centralized system. In June 1969, the security guard force that had been in place was replaced by sworn police officers. At this time, recruitment and training standards were put in place.

Their functions were better defined and included investigation, intelligence, crime prevention, physical security, national security and emergency planning. They also introduced an official rank structure, new uniforms and new equipment.

In 1983, the Canada Ports Corporation Act supplanted the National Harbours Board Act and a system of individual port corporations was created. This was the official start of the force called Ports Canada Police which fell under the Canada Ports Corporation (CPC) rather than the individual ports. In 1986, a new design for a Ports Canada Police badge was approved by the Queen.

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In the 1990s, talks of eliminating the CPC were taking place as the individual ports were fighting for autonomy once again. With the abolishment of the corporation, the Ports Canada Police would also be disbanded. The Ports Canada Police, and especially the Vancouver Detachment, were very much against losing this dedicated police service. A 1992 external review of the CPC by Judge René Morin was in support of retaining the specialized, national police force. In October 1996, Sergeant Art Ross of the Saint John’s detachment made a passionate case to a parliamentary committee against losing the national force. One of the strongest arguments centred on the failure of the autonomous forces in the past, which allowed crime to flourish and which lead to the creation of the national force in the first place. Sgt. Ross stated: “Without on-site public port police to do this essential work, the ports would once again become dirty, crime-ridden ports, losing their customers, as they once did in the 1960s.” Another solid argument was that shifting the responsibilities of the port police to municipal forces would cause too much strain on an already stretched force, not to mention the lack of specialized training which the Ports Canada Police had.

Despite his and others’ thorough arguments against the disbandment, in 1997, the decision was made to abolish the CPC and the Ports Canada Police along with it. Twenty-nine officers were working in Vancouver at the time.

Since the loss of the Ports Canada Police, policing the Port of Vancouver has returned to being a highly co-operative affair.

Many agencies are involved including the RCMP, Canada Border Services Agency, VPD, Coast Guard, and more.

National Port Enforcement Teams (NPET) have been created

The Ports Canada Police vessel Nahnitch. to share intelligence and spread the burden of responsibility.

In Vancouver, Port Metro Vancouver financially supports the NPET through annual funding and still maintains a harbour patrol and private security agency. Today, policing the port is a complicated, inter-agency endeavor. The loss of a dedicated national port police force necessitated a complete reorganization of port security in this country. The past role of the Ports Canada Police and its forebears should not be overlooked. They played an integral role in protecting Canadians by providing a professional, robust, and dedicated police presence at our ports and creating national standards for port security.

Lea Edgar started her position as Librarian/Archivist for the Vancouver Maritime Museum in July 2013. She can be contacted at archives@vancouvermaritimemuseum.com.

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September 2014 BC Shipping2/7/2013 News1:14:42 21 PM

22 BC Shipping News September 2014

B.C. PORTS

One thing B.C. ports have in common: oozing optimism

By Ray Dykes

A

swell of optimism grips British Columbia’s ports seemingly running contrary to cyclical softness in some key commodities such as iron ore, potash and coal.

With the main port — Port Metro Vancouver — heading for yet another record year at the half, the minor ports in the province are salivating over a flux of liquefied natural gas (LNG) projects, some of which could eventually come to fruition once the provincial taxing formula is revealed.

But, even taking the LNG gold rush off the table, ports are lining up to outdo each other as they diversify as never before. No one wants to be a one trick pony — they learned the folly of that during the forestry boom — so wood pellets, liquefied propane, potash, aggregates, a jump into short-sea shipping of containers, and even the occasional coal mine project are making the news, albeit more quietly than the massive multi-billion dollar LNG proposals being pushed along by the Provincial Government.

But first, most have to deal with aging infrastructure and for some that is proving expensive and hurting the bottom line.

It’s a problem Robin Silvester, President & CEO of Port Metro Vancouver, can probably say he’s enjoying more than most these days as the fruits of years’ of infrastructure renewal planning have arrived on the South Shore and along the Roberts Bank Rail Corridor. Almost every month or two it seems, the port chief and federal and provincial dignitaries are out in the community opening a new overpass to cut congestion or a roadway that will speed the movement of goods along the relevant trade corridor with minimal impact on the surrounding community.

It didn’t happen by accident but by planning and some of the smaller B.C.

...even taking the LNG gold rush off the table, ports are lining up to outdo each other as they diversify as never before. ports are now acknowledging it’s time they looked at improving their prospects through sustained spending on infrastructure renewal.

Here’s how the major British Columbia ports fared in 2013 and so far in 2014.

Port Metro Vancouver

For Robin Silvester, Port Metro Vancouver President & CEO, “this continues to be an extremely exciting time of phenomenal growth”.

The Vancouver port handled over 135 million tonnes in 2013 and will top that this year — up three per cent overall to the end of June. Growth continues to be powered by bulk such as coal and grain and other port essentials like containers.

Silvester says the infrastructure work has enabled this growth surge for the busiest export port in all of North America. As the end of May passed, coal — the largest

single commodity handled by the port — was up 3.3 per cent; grain was up five per cent; forest products, no longer big enough in the mix to spoil the party, was down as were fertilizer shipments.

Cruise ship calls are surging again in 2014 with a 22 per cent jump in 2013 to 812,398 passengers. The port last broke one million passengers back in 2002 and a return is no longer out of the question.

The good news story has happened despite container truck strikes and strife to deal with for much of the year. Silvester says that while a lot of good work has been done, there are still issues to be resolved and both the federal and provincial governments continue to be involved.

Such challenges seem to be dogging every other major container port in North America, he notes, adding that Port Metro Vancouver is in the best position of them all with its truck licensing system,

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September 2014 BC Shipping News 23

B.C. PORTS Silvester says “clearly there is an opportunity for further LNG plants within the port” and “there are a lot of people talking to us quite regularly”. reservations scheme and other advances, even if there is still work to be done.

In mid-July, truck drivers working Port Metro Vancouver urged the two levels of government to take swift action against trucking companies they say still aren’t paying them what they’re owed and living up to a 14-point action plan worked out last spring. It’s a festering sore for Silvester in an otherwise healthy handbasket of opportunities for Canada’s leading port.

A new liquefied natural gas (LNG) project has been proposed for Tilbury on the Fraser River while the existing Fortis plant is under expansion. Silvester says “clearly

there is an opportunity for further LNG plants within the port” and “there are a lot of people talking to us quite regularly”.

There’s even talk of oil and LNG shipments through Roberts Bank.

Not all is sweetness and light as the port continues to tread warily in its consideration of a proposal by Fraser Surrey Docks for a coal export facility.

“We’re working our way through the process, moving us toward a position where we can make a decision,” was as noncommittal as Silvester could politely be on a project which has drawn a surprising amount of flack. There is no timeline for a decision as yet and as the port chief says,

“we are focusing on making the right decision”.

Meanwhile, the port is throwing itself into social media with some enthusiasm as its take its social responsibility more seriously. There’s an office opening soon in Delta to champion the Terminal 2 project at Roberts Bank for a new container facility and there’s even a dedicated Port TV link media campaign on You Tube and PMV pages on the social media.

Victoria

No B.C. port is as heavily reliant on cruise ships as is Victoria. There, Greater Victoria Harbour Authority relies on the cruise trade for 60 per cent of its business and it had a strong season in 2013 and is amid yet another in 2014.

“After reaching a record 224 large cruise ship calls in 2012, we have plateaued at

Including all assets, property and improvements

• • • •

24 BC Shipping News September 2014

• Fee Simple upland waterfront ownership: 12.43 acres • 28-year Water Lot Lease: 6.50 acres • Sound Financials • 8,000 sq ft of warehouses and offices with tenants • Marine vessel dockage and barge moorage tie ups • Five all-tide / all-weather rock ramps and concrete bulkheads Terminal has multi barge loading/unloading capabilities Easy truck access at the Terminal and directly connected to the Inland Island Highway Campbell River and area is experiencing a booming business upswing An opportunity to be part of the exciting marine port and terminal business on the Inside Passage of Vancouver Island, British Columbia

B.C. PORTS Terminal, and with an eye on history, GVHA has relocated the roof of the historic E&N Railway Station into Ogden Point much to the delight of locals and visitors.

Nanaimo

There’s been a change of plan by the Nanaimo Port Authority on its interest in using Berth A of the long-serving Assembly Wharf for short-sea shipping of containers by barge. After a study found that, for geotechnical reasons, the soil was “not conducive to containers” and would need too much work, the Nanaimo Port Authority has switched its interest back to Duke Point for its $9 million project.

Nanaimo Port Authority President & CEO Bernie Dumas says the move back to Duke Point, which already has a single container crane and other barge container services, will mean working with the Asia-Pacific Gateway Foundation — the joint financier with the NPA — to redevelop a portion of land for the project. “I am confident they will agree,” says Dumas.

Nanaimo is working its way out of a “terrible mess” left by the rapid decline of forestry on Vancouver Island around 2009. As there are signs of a forest products revival — a nearby pulp mill at Harmac seems to be thriving and shipping from its own dock and a new $60 million wood pellet plant is being considered for nearby — the port is fighting back.

In 2013, Nanaimo shipped 1,301,244 tonnes compared to 853,758 tonnes in 2012 and a scary 519,004 tonnes in 2010.

Most of the tonnage was raw log shipments and the year-overyear growth was a healthy 52 per cent boost. Dumas says volumes

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around 205 and that’s a very nice place to plateau…I know some ports who would be thrilled with that,” says GVHA President & CEO Curtis Grad. (See our Industry Insight on Grad starting on Page 12).

Studies have shown that each of the up to 500,000 passengers spend $66 while in port and a high percentage — 77.5 per cent — come ashore while their cruise ship is tied up at Ogden Point.

Grad says those calls have an impact on the region of over $100 million a year in direct and induced economic activity.

Thanks to a new finger float near Pier A, cruise passengers can catch a water shuttle from Ogden Point to downtown Victoria and whale watching companies can now pick up passengers directly from that new float.

Outside the reliance on the cruise traffic, Grad admits GVHA has to remain “very nimble” to take advantage of “infill” opportunities. It helps, he says, that GVHA has a good working relationship with its agents Western Stevedoring and the International Longshore & Warehouse Union which, like in most B.C. major ports, supplies the skilled labour pool.

The extra work has included a steady stream of yacht transfers and such unusual requests as a call by the submarine HMCS Chicoutimi to conduct trim and incline tests at Ogden Point both on the water and under it for three days. And the Star Evivva used Ogden Point to discharge 40 lifts to Linden Marine’s Nana Provider as part of that barge’s conversion from a rail barge to a container barge by Victoria Shipyard.

Plans to combine two ferry terminals into one still percolate for the Inner Harbour in an oft-talked about Belleville International

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September 2014 BC Shipping News 25

The bulk carrier Eastern Asia gets ready to take on cargo at the Port of Nanaimo. are up another 12 per cent year-to-date to the end of June.

Exports so far this year totalled 697,000 tonnes (604,000 tonnes for the same six months of 2013) and imports were at 46,000 tonnes (down on the 62,000 tonnes of YTD June 2013). Container traffic continues to be a bright spot YTD at a growing 6,725 TEUs compared to 4,789 TEUs in the same period of 2013.

Dumas says dimensional lumber is coming back slowly and is up eight per cent, but there are many more raw log carriers calling — 422,101 tonnes in shipments YTD compared with 293,845 tonnes for the same period a year earlier.

Project cargoes have included equipment for BC Hydro’s revamp of the John Hart Dam in Campbell River and a variety of equipment destined for LNG projects across the province.

26 BC Shipping News September 2014

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

B.C. PORTS

Like many B.C. ports, Nanaimo is faced with the cost of updating old infrastructure and is spending $250,000 to fix up a dock face at Duke Point. Its ancient former CenTerm container crane is proving more costly to maintain and run than hoped and Dumas says infrastructure is a challenge. “That’s where our losses are coming.” The port almost broke even in 2013, recording a loss of $40,481.

Engineering work has been completed and design details are now being worked out for a $7 to 9 million upgrade of the Nanaimo Marina which could start as early as year-end and is expected to take about three years.

Since the opening of a new cruise ship facility in 2011, the port has been trying to attract regular port of call status sailings rather than feeding on repositioning cruises in the shoulder seasons. In 2013,

there were eight cruise ship calls for a total of 12,382 passengers and five are scheduled for 2015. One of those calls will be the Silver Seas in July on what is Nanaimo’s first official Alaska cruise triumph.

The NPA has been collaborating with the Southern British Columbia Railway and the Island Corridor on a plan to develop a feasibility study leading to a “world class” Vancouver Island rail excursion. A fast ferry service between Nanaimo and downtown Vancouver is also edging closer with the signing of a lease agreement for waterfront land use between Island Ferries and the City of Nanaimo in a service that could start in March 2015.

Port Alberni

Natural harbour assets and port infrastructure, under-utilized as forestry fortunes slumped, have spurred the Port Alberni Port Authority (PAPA) into new vistas of opportunity.

With the completion of a pre-feasibility study — jointly funded by Transport Canada and the port — the much-publicized PATH (Port Alberni Trans-Shipment Hub project) holds at least seven major benefits including an increase in Canada’s Gross Domestic Product of $21.3 billion.

There’s even a reduction in George Massey Tunnel truck traffic of 98,750 hours a year bringing $6 million in annual savings as containers are barged directly to warehouses up the Fraser River.

PATH is envisioned to become a modern, fully automated container terminal able to handle vessels up to 22,000 TEUs.

B.C. PORTS

W

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

If it goes ahead, it would be one of the largest such facilities in Canada.

“The Port Alberni Trans-Shipment Hub is the ‘PATH’ to a new, more efficient, cost-effective and environmentally friendly Asia-Pacific Gateway,” says PAPA President & CEO, Zoran Knezevic.

But first, there are a few hoops to jump through. Federal Transport Minister Lisa Raitt met with the port authority in July and seemed “extremely encouraging”, according to PAPA’s Director of Public Relations & Business Development, David McCormick. The Minister suggested the port authority contact former Member of Parliament David Emerson, who is working on the committee conducting a statutory review of the Canada Transportation Act. One of the issues being looked at is “how strategic transportation gateways and corridors can be developed and leveraged to support Canadian prosperity through linkages to global markets”.

Meanwhile, the port authority is busy on other fronts trying to boost throughput tonnage, offering incentives for using the port’s existing three deepsea berths and four backup-storage sheds. Port Alberni

With three deepsea berths and four backup-storage sheds, Port Alberni is offering incentives to boost business. lost $367,301 in 2013 but Knezevic is convinced a turnaround is “not far away”.

Total shipments in 2013 reached 1,819,773 tonnes and that was the best in well over a decade.

Raw logs were easily the biggest single item but there were shipments of fish, lumber and other cargoes with 67 vessels being handled — from two to four log carriers a month and one lumber ship. A switch to more efficient off-dock raw log loading is being pursued and PAPA is convinced — for hemlock at least — the cost of trucking

in the logs would offset the loss of logs boomed in only to sink with water saturation. McCormick says the port is “confident off-dock loading will be a regular occurrence by the fall”.

There were no cruise ship calls this year and none are scheduled for 2015 but PAPA has not given up hope. A new Centennial Pier and finger floats dedicated last year provides shelter for the commercial fishing fleet; a welcome float plane stop; and a convenient drop-off point for cruise ship passengers tendered from vessels at anchor.

Reinvesting for the future

estshore Terminals has just completed one of the biggest equipment upgrades in its history. This five-year, $110 million work has lifted capacity from 23.5 to 33 million tonnes a year; streamlined the way we handle coal; improved our carbon footprint; and greatly enhanced efficiency.

Now we have begun a $275 million, five-year Terminal Infrastructure Re-Investment Project to replace three of our major coal moving machines, as well as a shiploader and relocate our administration, workshops and warehouse into one complex at the northern end of our site. This will give us a strong future and bring wealth and opportunity for our community and our country.

www.westshore.com

Investing to better serve our customers September 2014 BC Shipping News 27

B.C. PORTS Two other possible projects include a joint venture to revive an idled fish plant and an associated commercial ice production facility; and the creation of a bio char facility using wood waste to produce a powder to be triple-bagged for shipment as a vital component in the production of silicon for solar panels.

And there’s no forgetting the Steelhead LNG Corp. and Huu-at-aht First Nation plan to build a liquefied LNG plant in the Alberni Inlet near Bamfield, about 90 kilometres west of Port Alberni. A final investment decision on whether to proceed is reported to be about four years away.

Port McNeill

Easily the busiest port on Vancouver Island for throughput tonnage, Port McNeill and its Orca Sand & Gravel Terminal had a record 2013 at 3.36 million tonnes and could surpass that this year.

Majority owner Polaris Minerals Corporation and its President & CEO, Herb Wilson, says the aggregate market was in decline for seven years before it began gradual improvement over the past five or six years.

Orca ships from Port McNeill go largely to San Francisco where it has most of its clients in the reviving United States construction industry, but Hawaii also figures into the equation and there’s an occasional shipment that stays in B.C. “We are very, very pleased with the operational and production side of our Port McNeill facility,” says Wilson.

Polaris is currently building another $3.5-million aggregate-receiving facility in the Port of Long Beach, expected to be commissioned next year.

“The game plan is unfolding as we envisioned in 2005, it’s just taking longer,” adds Wilson. However, Polaris hasn’t yet revived its plans to build an aggregate export facility in Port Alberni. “The market hasn’t reached the buoyancy we need to start considering that project again.”

Prince Rupert

Even the best performers have to take a time out and regroup and the Prince Rupert Port Authority is no different.

With back-to-back years of growth driving rival ports crazy, so far this year the port is down eight per cent overall at

the half year. That was still 10.7 million tonnes and while coal slumped 31 per cent to 4.1 million tonnes at the Ridley Terminal, grain movement next door at Prince Rupert Grain was up 23 per cent, led by wheat and canola. June itself was a bonanza month with grain shipments at 563,445 tonnes being up 132 per cent.

Container traffic at Fairview Terminal was up seven per cent at 528,655 TEUs at the half year and wood pellets were pioneering well from a newly converted Westview Terminal for Pinnacle at 205,327 tonnes through June as it shakes off the commissioning, dust and noise troubles in its first year of operation.

Cruise ship visits should total 10 this year — a far cry from the 60 vessels and 100,000 passengers once experienced when the Port of Seattle was amid its amazing cruise expansion to Alaska.

In his role as PRPA Vice President of Trade Development & Public Affairs, Shaun Stevenson, is seemingly never without multiple projects and opportunities to discuss.

There are five LNG projects in their review stages — including two on PRPA

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B.C. PORTS

The $90 million new Road and Rail Utility Corridor in Prince Rupert is almost complete. land — and he expects at least three to go ahead, most likely including Petronas and the BG Group for starters.

“I expect to see the first one go ahead by the end of the year,” says Stevenson with Petronas being everyone’s front runner.

The Fairview Container Terminal has northern and southern expansions in the works if the investment decision is taken by operators Maher Terminals. The first expansion to the north would lift TEUs from the current capacity of 750,000 to 1.3 million. A second expansion to the south, if it proves commercially viable, would take capacity to two million TEUs. The $90 million new road and rail corridor to Ridley Island should be finished by the fall, says Stevenson, and all of the 400 hectares opened up by the development are fully subscribed without any final investment decisions announced so far. The much talked of potash terminal now in its permitting phase for the site hasn’t yet said it would proceed, but there are also LNG, LPG and other energy projects in the mix. PRPA recently invested $10 million moving a roll-on-roll-off ramp from Fairview Terminal to a new position on Ridley Island in the hope of reviving break bulk traffic.

The Ridley Coal Terminal is still up for sale by its Federal Government owners

and while there is commercial interest, there has been a dearth of news out of Ottawa. Ridley is amid a major expansion project that could take its capacity to 24 million tonnes. The facility will slump to about eight million tonnes shipped this year, hurt by mine closures and new mine opening delays in the northeast of the province as the world coal market continues to suffer low demand and slumping prices in yet another downturn in the highly cyclical industry. About three to four million tonnes of potential export coal are reported to currently be on hold.

Overall, Prince Rupert continues to be a port of growing diversification and a place of reasoned optimism.

Stewart

From small beginnings as a bargeonly facility currently, the new Stewart World Port will start construction of its 241-metre-long deepsea dock in August as Phase II of the imaginative project gets underway for Arctic Construction.

With a guaranteed 20-metre draft at low tide, the dock will largely handle selfunloading vessels in the Handymax range from 40,000 to 60,000 deadweight tonnes.

Breakbulk cargoes will be up and running

by January 2015 says Stewart World Port Chief Development Officer Brad Moffat.

Online at www.bcshippingnews.com Faces of B.C. ports...by Dave Roels

30 BC Shipping News September 2014

Phase III construction of the bulk-handling facilities, including a large storage shed and truck unloader, will continue through 2016 when mine concentrates and other cargoes will move across the new dock.

Moffat says Stewart World Port is open to other cargoes including coal but so far has no firm commitments from the many mines in the area albeit “very strong interest”. Brokers and shipping agents call every week looking for opportunities including developers of LNG projects and pipelines.

The only tonnage handled so far during the construction phases has been minimal barge traffic with small loads and project cargoes.

Located two kilometres south of the town of Stewart, the new port sits at the end of the Portland Canal where the main action over the past few years has come from the family-run Stewart Bulk Terminals.

Part-owner Roland Soucie says the terminal shipped 76,000 tonnes of copper concentrate from the Huckleberry Mine and 99,782 tonnes of product from Yukon Zinc in 2013. Trucked-in gold and copper from the under construction Imperial Metals Red Chris Mine south of Dease Lake is expected to start this October and could reach 120,000 to 130,000 tonnes next year.

Soucie says form work has started on a new building that will allow 20,000 tonnes of ore to be handled under cover in a long-planned expansion that will also include a move to dockside loading. The facility is awaiting engineering permits and has cleared all environmental considerations. It is expected to be up and running in 2016.

Other cargoes at Stewart include raw logs which saw Stikine Forest Products, Canada Resurgence Developments, and Alcan Forest Products ship 164,333 cubic metres in 2013 and a healthy 157,211 cm YTD by mid-July. The District of Stewart receives $1 a cubic metre for the logs shipped and should boost revenues once the new port is running.

District Mayor Galina Durant says the town or 500 is “very enthusiastic” over the new port and other developments and she is pleased that Arctic Construction has met all milestones so far.

Meanwhile, the construction by BC Hydro of the 287kv Northwest Transmission Line over 344 kilometres from Skeena substation to Bob Quinn Lake was completed in June bringing the transmission grid to a new part of B.C., much

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B.C. PORTS to the satisfaction of mines developing or operating in the area. Some of the generators and equipment went through Stewart Bulk Terminals as project cargo by barge.

No wonder the District of Stewart and its port are already billing themselves as “the rising star of the North.”

and associated pipelines — and she’s confident some will go ahead after years and years of patient waiting.

The $3.5 billion Rio Tinto Alcan smelter modernization, which includes the latest plant technology, has reached the 69 per cent completion stage and, despite the construction distraction, the company’s shipments of inbound raw materials and outbound finished prodKitimat With a multi-project tab of about $50 ucts totalled 716,633 tonnes in 2013 and billion, there’s never a dull moment for have reached 401,684 tonnes year to date.

The introduction of the latest alumKitimat and its private port which offers inum production technology by the end three deepsea docks.

Clumsy Federal Government attempts of the year will reduce overall emissions to take the port under its wing last year by 50 per cent and boost the annual outwithout consulting locals seem to have put tonnage to 420,000 tonnes.

Shell Canada operates the only other fizzled for now, but that doesn’t mean major dock and the company is busy Ottawa has given up.

“There’s nothing happening on that redeveloping the site of a former methanol front right now,” says amiable Mayor plant into a proposed two-billion-cubicJoanne Monaghan, who at 76 plans to feet-per-day LNG export facility.

Much of the excitement in the town surrun for office again in the next municipal election. The Mayor would like to be on rounds the 10,000 to 15,000 workers that hand when the first of the major projects will double the local population by the fall comes to fruition — the range is from as they prepare sites for the LNG invasion. modernization underway at PM Rio Page 1“They have done so much work, you BC Shipping_1/2 now pg horz 7/22/14 1:39 Tinto Alcan to a variety of LNG projects would not believe what these people have

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done so far,” says Mayor Monaghan of the site preparation activity for the projects. A former European ferry has been converted to house 500 workers and there was a ground breaking recently for another 2,400 person hotel-like camp.

The ground breaking for a Novatel hotel is also imminent and Baxter Apartments had presold its 46 townhouse complex before its recent ground breaking.

The Mayor continues to push for a new private ferry service between Kitimat and Bella Bella and that should help meet the goals of developing companies in training and hiring First Nations people. There is also a move to open a heliport in Kitimat.

There’s at least one coal export proposal for the Port of Kitimat and the prospect of alfalfa shipments. No wonder everyone is scrambling to house workers and bring projects to completion that one day will greatly impact on the future of the port, which is already billing itself as the third largest on the West Coast of Canada.

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

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CARGO LOGISTICS

Trade reliant, trade compliant

By Darryl Anderson

Managing Director, Wave Point Consulting

B

ritish Columbia annually trades with the world about $74.4 billion in goods: exports account for around $31.7 billion and imports $42.7 billion. As a result, 34 per cent of provincial gross domestic product directly relies on merchandise freight and the international supply chains, transportation services, port and logistics infrastructure that underpins this constantly pulsating flow of traffic moving across our entire province.

The results of the Surface Transportation Annual Review 2014 survey revealed that increasing export growth and support for sales channels were important logistics priorities. Increasing trade reliance results in a corresponding duty for logistics service providers and companies to be trade compliant. A clear understanding of the rules that govern international trade is beneficial since failing to comply with the trade rules, even accidentally, can lead to serious consequences. This article will touch on some of the issues influencing maritime trade compliance and highlight best practices that may offer insights to shippers as they seek future growth opportunities.

Issues influencing maritime trade compliance

The changing face of trade compliance requirements can significantly impact exporters, importers and their maritime logistics partners. “It is unprecedented to have so many major trade regulation changes implemented at the same time,” said Matt Goodman, vice president of global trade management for Livingston International.

He cited e-Manifest (Canadian Border Service Agency), the Canadian Food Inspection Agency Inspection Modernization Program (Canada), Food Safety Modernization Act (U.S.) and the Single-Window Initiative (U.S., Mexico

34 BC Shipping News September 2014

The changing face of trade compliance requirements...“It is unprecedented to have so many major trade regulation changes implemented at the same time...” and Canada) as major issues driving trade compliance initiatives in 2014.

In the shipping and port sectors, traderelated regulatory compliance issues often arise from the health, safety and security issues that are associated with the movement of cargo. Rising trade volumes, new rules, procedures, inconsistency of government enforcement, or cost-recovery initiatives all present situations were problems could arise. Stephen Brooks, president, Chamber of Marine Commerce noted that with increased global competition a lot of trade disputes worldwide arise from some form of technical regulation.

Top advocacy issues for his organization include the implementation approach to the North American air emission regulations, ballast water regulations and government cost recovery initiates such as Canadian Coast Guard user fees and others that originate in the United States.

In June 2014, the Canadian-based Chamber of Maritime Commerce made a submission to the U.S. Department of Agriculture, Animal Plant Health Inspection Service in response to a proposed increase in user fees. The fee would jump from $496 to $825 per inspection and the revised regulations would eliminate the annual fee cap of charging the user fee a maximum of 15 times per vessel. For Canadian Great Lakes / St. Lawrence shipping, the change could increase their annual inspection costs by as much as 238 per cent.

Mr. Brooks stated, “these staggering fee hikes fly in the face of President Obama’s oft spoken commitment to the efficient flow of goods between our two nations.”

Stephen observed that the United States’ broad-brush approach to this user is inherently unfair because the regulations apply to all types of cargo, even to marine shippers of bulk raw materials that are not susceptible to biological infestation.

Bonnie Gee, Vice President, Chamber of Shipping of British Columbia stated that her organization has had some partial success in influencing on either how a maritime trade compliance measure is to be implemented, or educating their members to reduce the financial impact of the rules. When fully implemented, e-Manifest will require carriers, freight forwarders and importers in all modes of transportation to electronically transmit

Stephen Brooks, President, Chamber of Marine Commerce

CARGO LOGISTICS advance commercial information to the Canada Border Services Agency (CBSA) within prescribed mode-specific time frames. CBSA’s approach to the marine sector required the Chamber to raise significant concerns in regard to the new requirements for a CBSA-issued carrier code, proof of the vessel operator existence and the length of time needed to obtain a carrier.

The Chamber advised CBSA officials that if these marine e-Manifest implementation issues were not addressed, Canada’s supply chains would suffer numerous interruptions and significant delays, resulting in millions of dollars of extra costs for additional freight and warehousing expenses as well as penalties for missed deliveries. Bonnie stated, “as a result of the Chamber’s efforts, the e-Manifest process for shipping has been simplified” from what was originally proposed.

Nevertheless, the CBSA’s desire for a uniform administrative approach does not always recognize the realities of maritime shipping. Going forward the Chamber is actively working to address the issue of “in transit cargo” that is impacting segments of the market such as grain shipments when vessels coming from the U.S. are required to go to anchorage rather than directly to the marine terminal berth because of congestion or other delays.

getting put off. It’s been three years in the making now.”

Supply chain collaboration is also a best practice for addressing trade compliance issues. “Although it is a carrier function, the broker is usually the one that is open with the light on when the truck arrives at the border and encounters a problem. We’ve taken the approach that we’re going to help carriers with this,” says Cherie Storms, Assistant Operations Manager at Pacific Customs Brokers.

“This is not normally what falls into the stream of what customs brokers do but we’re going to take this on. We’ve run seminars and we’ve educated our staff, so that we understand some of the problems carriers are going encounter with e-Manifest. We want to be able to provide some kind of guidance and solutions to our clients.” Timm adds, “we have developed our Global Trade Concierge System, which will give the shipper a view electronically of their shipments. Clients will be able to

go to our web site with their password and see the status of their goods.”

Another best practice is to apply both strategic and tactical thinking to improve trade compliance results. “We used to operate almost exclusively at a transactional level,” says Timm. “Now we speak to in-house corporate counsel at head offices through video or telephone conferencing in places like Chicago or Toronto, so they understand the risk assessment and the consequences of doing something wrong. In many cases companies haven’t adjusted their business model so that they still have a person that is untrained in customs crossings doing the documentation without any understanding of what the consequences or implications are.”

The adoption of new technology to improve business processes is another best practice to address trade compliance issues.

For example, Kevin Price, a systems engineer originally from the Waterloo region

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Trade compliance best practices for shippers

In this section we see how some British Columbia companies provide best practice solutions for importers and exporters.

Keeping clients up to date on agreements and the current rules is a best practice and prime area where customs brokers service the needs of small and mediumsized businesses and larger shippers. “Our role is to understand government rules and regulations and ensure that our clients comply,” says Greg Timm, CEO of Pacific Customs Brokers.

Being in compliance often involves adapting to new processes and procedures. Timm observed that a pressing issue for Canadian customs brokers and importers was the new electronic system — the e-Manifest — a process of notifying customs officers about goods ready to cross the border. “The United States implemented it approximately six years ago,” he said, noting that Canada was following suit. “But Canada has had a tough time implementing it. The dates keep September 2014 BC Shipping News 35

CARGO LOGISTICS created Burnaby based Chimpkey in 1999 to provide an improved method for “product labeling” for the export market.

A potential client had a large volume of vehicles being shipped south of the border, he recalled. “He wanted to know if there was any way software could be written to help with the mountains of paperwork they had to file to get a vehicle cleared by Canada Customs.” Within six months, Chimpkey released the software to handle export labels in the vehicle sector.

When the Canadian dollar drastically improved compared to the U.S. dollar in the mid-2000s, Chimpkey’s business servicing the vehicle export sector began to weaken. It was clear that the company needed to develop software to handle more than the vehicle export market.

Kevin wanted software that worked for any product. He then created new software and, in the process, began working with customs brokers and logistics companies. The key business problem that Chimpkey made its mission to solve was the movement of data from one business form to another into a digitized database.

Manually entering data not only creates duplication work, but also increases the incidence for human error.

36 BC Shipping News September 2014

As a best practice, Chimpkey developed a pilot project in 2006 that was designed specifically to pull information off a PDF document — a major electronic business form for inter-company transactions in North America — and deliver it in a digital format to customs brokers.

The company has since moved to working directly with customs brokers. In the last two years they have been targeting the European market. The firm is now doing work with two Danish companies — Lego and Carlsen Beer — processing financial documents.” As an example of frequently changing trade compliance requirements, Price pointed to the US Federal Food and Drug Administration’s (FDA) regulations.

And closer to British Columbia’s economic concerns, there was the 2008 amendment of the U.S. Lacey Act that required extra information being filed for wood shipped across the border. “Shippers have to provide more information by completing electronic forms for the U.S. and Canadian governments,” said Price.

Conclusions

All supply chain participants have a vested interest in international trade compliance issues. How well companies

observe the laws and regulations that govern their international business operations, and how well logistics service providers and regulators respond to new challenges, ultimately impacts the Asia Pacific Gateway’s reputation for fluidity and effectiveness. BC Shipping News readers are encouraged to follow trade policy developments and support the important work that our industry associations do to ensure the continued competitiveness of Canada’s maritime commerce.

In terms of best practices, small and medium-sized importers and exporters would be well advised to not even think about logistics options until after they have figured out how to address trade compliance issues. Timm observed that, in his experience, clients just want to do the right thing. “We have hardly ever seen clients trying to do something fraudulent.

Sometimes they don’t pay enough attention and they don’t follow process. But just about 100 per cent are trying to do it honestly, just conducting their business. Doing what they think they should do and sometimes they’re wrong.” It can be a costly mistake to adopt a ‘ship first and worry about trade compliance later’ approach.

With a rising economic outlook and the need to support new sales channels, supply chain professionals will need to deftly navigate trade compliance shoals using both a strategic and operational perspective. Pilot projects, collaborating with others to assess and adopt new technology, and including subject matter experts on your team are all best practices than can be used to chart a successful course.

While every country with which Canada signs a free trade deal may represent an increased opportunity for further trade development, success will require the early adoption of trade compliance best practices. Competitiveness depends on shifting the topic of trade compliance from being more than an afterthought to transportation infrastructure development.

Darryl Anderson is a strategy, trade development, logistics and transportation consultant. His blog, Shipper matters, focuses exclusively on maritime transportation and policy issues. http://wavepointconsulting.ca/shipping-matters. Special thanks to Beverly Cramp for initiating thoughts on the topic, research collaboration and the interviews used to support the best practice examples cited in the article.

ENVIRONMENT

Living life under the environmental microscope

By Captain Stephen Brown President, Chamber of Shipping of British Columbia

I

t was only a few years back when people in jobs like mine would have needed to spend little if any time dealing with environmental issues.

The environment was just not on anyone’s radar but how quickly times have changed.

Today, most shipping companies, ports and terminals employ full time staff dedicated to environmental compliance with executive and board oversight.

Every cruise ship also has a senior-ranked environmental officer, but what has driven all this? What may have been initiated by criticism of shipping’s environmental track record over many decades has now become one of recognition that we all want the world to be a better place for our kids, and there are a few simple things that can be done to make that happen. Over and above that, our ability to effectively function as a global industry — on which international trade and well being is so heavily dependent — comes down to ensuring we have social licence, whether we like it or not.

...our ability to effectively function as a global industry — on which international trade and well being is so heavily dependent — comes down to ensuring we have social licence, whether we like it or not.

It’s unfortunate that extreme views on both sides have been allowed to distort this discussion and as a consequence, here in British Columbia, we find ourselves having to defend almost any project development, no matter how environmentally neutral and important to Canada’s economy. We have therefore been in an endless debate over coal exports, the safety of tanker traffic — entirely routine operations anywhere else in the world. And now, the opponents of LNG projects are coming up with any number of spurious arguments in an effort to sow seeds of doubt in the minds of the general public on the safety of an industry which has an exemplary record since the first LNG carriers entered service almost 50 years ago.

We understand the motivation of many

project opponents and they know that we understand that motivation — none of which has anything whatsoever to do with shipping. However, we are a convenient target at which to throw any amount of mud in the hope that some of it sticks.

Now, to step down from my pulpit, let’s briefly review some of current highprofile issues.

Emissions

The reduction in fuel consumption and therefore emissions per vessel in the past five years alone has been staggering.

There is no single reason but it’s a combination of high fuel prices and therefore slow steaming for economic reasons, tighter fuel quality standards, both at the global level and within the Emissions

September 2014 BC Shipping News 37

ENVIRONMENT Control Areas, immense improvements in marine propulsion technology including waste heat recovery systems and IMO legislation enforcing a progressive decrease in GHG emissions through the Energy Efficiency Design Index (EEDI).

On January 1, 2014, California went even further in being the first jurisdiction in the world to require that container ships begin using shore power while at berth.

The new “Vessels at Berth Regulations” are being phased in over six years with 50 per cent of every container carrier’s fleet calling in California now being required to hook up to shore power, increasing to 70 per cent on January 1, 2017, and to 80 per cent on January 1, 2020. At the same time, the allowable sulphur limit for both gas and diesel oil being burned in

California’s waters was reduced to 0.1 per cent, one year in advance of ECA regulations requiring the same. This standard already applies to vessels at berth in the countries of the European Union.

Ballast water and control of aquatic invasive species

To give it its full name, the International Convention for the Control and Management of Ships’ Ballast Water and Sediments (BWM) 2004 will likely be ratified this year and enter into force in 2015. There has been a delay on account of the legislation itself being ahead of supporting technology and also due to doubts over the robustness of ballast water treatment system type approvals that would provide reassurance to ship owners when making the necessary

capital investments (approximately $2 million per vessel) in such systems. In the meantime, the simple process of midocean ballast water exchange continues but the issue has been further complicated by the U.S. which unfortunately, for entirely domestic political reasons, has chosen to write its own legislation including differing type approval standards for treatment systems.

Hull bio-fouling

Whilst still something of an emerging issue related to control of aquatic invasive species, there are IMO voluntary standards and we see this becoming an expanded discussion as more countries enact governing legislation. Here again, California has gone ahead with new rules which are scheduled to take effect on January 1, 2015, and which stipulate that a hull must have less than five per cent bio-fouling and in niche hill access areas, less than 10 per cent. Both Australia and New Zealand have played a role in crafting the regulations since they are intent on preparing similar legislation for IMO consideration. Inevitably, this highlights the need to continue to advance the quality of hull paint systems which have already improved beyond recognition in recent years, however the advent of silicon-based paints (although expensive) are allowing ships to comfortably go five years between dry-dockings.

Marine mammal avoidance

Also an emerging issue but one which is increasingly receiving attention at the IMO and on the coasts of North America despite the small number of recorded incidents. Also wrapped up in this is the issue of the noise impact of shipping on the oceans.

Here in Canada, as many of you know, a further complication in our lives is the push for integrated management and marine protected areas. No matter how often we ask, the question of “protected from what?” does not receive an answer and we have therefore come to realize that these initiatives are largely political and are primarily being pushed by those within governments and many other groups with an agenda.

In the case of the Pacific North Coast Integrated Management Area (PNCIMA), the final report after three years of meetings largely ignores all input from the marine industry, ignores any concept of 38 BC Shipping News September 2014

ENVIRONMENT ...the success of our members and that of the greater international marine industry is tied to finding the right balance between environment and economic progress. integrated management and fails to make any attempt to strike a balance between conservation and economic development.

The report does however seek to challenge the mandate of Transport Canada as the primary regulator of our coastal sea lanes. For this reason, the collective marine industry has voiced strong opposition to the report.

Similarly, the BC / First Nations Marine Planning Partnership (MaPP) which covers the exact same geographical area as PNCIMA, strikes a direct challenge to the marine sector in all its forms. Even leaving aside the decision of the Province to accept $8.3 million in funding from Tides Canada to finance this initiative, the main plan and its coastal sub-plans are consistent in promoting the interests of a few at the expense of the majority. It is also no coincidence that many of those actively pushing this initiative are equally active in campaigning against resource development activity on the coast of B.C. Last but not least we have the proposal

by Parks Canada to establish a National Marine Conservation Area (NMCA) across a large part of the Gulf Islands and Southern Vancouver Island. This initiative was launched in 2002 but only publicly announced in 2011 by which time several rounds of consultation had taken place but pretty much excluding any party with an established business or economic interest including the many pulp and lumber mills, let alone the shipping, fishing and recreation industries.

The federal legislation covering NMCAs is draconian in so far as pretty much any restriction could be applied and the penalties for non-compliance are huge. For all these reasons, we have joined forces with all potentially impacted business partners in giving a thumbs down to this proposal until such time as justification for same is clearly established. As a consequence, the conversation has now been quiet for over a year but we remain vigilant.

Conclusion

So why do I share all this with you? In the first place, we recognize that you are all too busy in your daily lives to follow

much of this stuff but everyone needs to accept that we are in this together.

Initiatives such as Port Metro Vancouver’s EcoAction Program and Northwest Ports Clean Air Strategy along with Prince Rupert’s Green Wave Program seek to incentivize ship owners to go beyond simple compliance by voluntarily raising the bar to new levels of environmental performance. Similarly, when it comes ports and terminals, Canada’s have come together to make the Green Marine Environmental Program a huge success across the country. The Chamber also co-chairs with Environment Canada an Air Quality Working Group whose membership includes our main ports and all levels of government including Metro Vancouver.

A further layer of leading-edge environmental protection to our coastlines is the federal government’s focus on ensuring that we have a World Class Tanker Safety System in place before the movement of tankers on our coast expands to provide export access to overseas markets. No other country has placed as much emphasis on leaving no stone unturned to this end. Western Canada Marine Response Corporation, an already well-prepared and well-funded first responder, is being developed into an organization in which any reasonable British Columbian can have full confidence. In addition, this will meet one of the key conditions for the provincial government to lend its support the Northern Gateway and Trans Mountain (Kinder Morgan) oil export development projects.

Fear not, the Chamber of Shipping has not sprouted green ears but it has learned that the success of our members and that of the greater international marine industry is tied to finding the right balance between environment and economic progress. Global trade and therefore the global marine industry is reliably expected to double between now and 2030, potentially triple by 2050. This is great for our industry but can only happen in an environment of both financial and environmental sustainability.

We ignore the challenge at our peril.

Top to bottom: PNCIMA, MaPP and the proposed NMCA. September 2014 BC Shipping News 39

TRAINING No time to rest

BCIT grads snapped up by eager employers

O

ut of 18 graduates of the Nautical Sciences and Marine Engineering Class of 2014, 16 already have jobs waiting for them.

And in a first for any BCIT graduate, Deck Officer Cody Kirlik was presented with a company award from Transport

Desgagnés President and General Manager Serge Le Guellec for completing all of his seatime with the company.

The convocation ceremony was held on July 25, 2014 with family, friends, BCIT faculty and an impressive number of industry representatives in attendance.

Photos courtesy BCIT

Marine Engineering Class of 2014: Back row: Dr. Richard Wiefelspuett (A/Dean, BCIT Marine Campus), Matthew Schulte, Scott Dielissen, David Mehain, Kim Dotto (Dean, BCIT School of Transportation). Front row: Laurie Sterritt (Board of Governors, BCIT), Ian Johnson, Doug Ubell, Won Shin, Jordan Derrick, Paul Dangerfield (VP, Education, Research and International BCIT).

Nautical Sciences Class of 2014: Back row: Danny Lundstrom, Philip Sutherland, Reid Graham. Middle row: Dr. Richard Wiefelspuett (A/Dean, BCIT Marine Campus), Michael Fischer, Cody Kirlik, Austin Smith, Robert LeGars, Kim Dotto (Dean, BCIT School of Transportation). Front row: Laurie Sterritt (Board of Governors, BCIT), Mark Spence, Brock Kitzel, Andrew Barry, Alexander MacPhee, Paul Dangerfield (VP, Education, Research and International BCIT).

40 BC Shipping News September 2014

Master of Ceremonies duties were carried out admirably by Captain Brian Young, Director, Marine Operations, Pacific Pilotage Authority Canada. A succession of notable speakers, including MP Andrew Saxton, Laurie Steritt (BCIT Board of Governers), Paul Dangerfield (Vice President of Education, Research and International, BCIT), Dr. Richard Wiefelspuett (Associate Dean, BCIT Marine Campus), Chief Instructors Captain Agnelo Pereira (Nautical Sciences) and Sanjeev Sarwal (Marine Engineering) and Jeff Otto (Co-operative Education Co-ordinator), passed along words of wisdom and advice.

Andrew Saxton, Member of Parliament for North Vancouver, was the first to congratulate the grads and he reminded them of the importance of the marine industry to Canada and the new opportunities that are opening up through increased trade and increased shipping routes in the Arctic. Saxton told the group that they should be proud of their hard work and, as the next generation of Canadian seafarers, be proud in representing Canada.

Laurie Sterritt noted that BCIT’s success “is a measure of your success”. She quoted Mark Twain in summing up her message: “Twenty years from now you will be more disappointed by the things that you didn’t do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbour. Catch the trade winds in your sails. Explore. Dream.

Discover.”

Subsequent speakers carried much the same message: Paul Dangerfield encouraged grads to stay in touch with each other, learning from his own experiences as a colonel in the army that the relationships developed during training were ones that lasted a lifetime. Dr. Richard Wiefelspuett recommended that they continue to learn: “You have chosen a career in an industry that is constantly changing,” he said. “But more than technical skills are needed. You need the soft skills as well — communication, teamwork, adaptability, problem solving, critical observation and conflict resolution. Technical skills will get you the job interview, but it is the soft skills that will get you the job.”

TRAINING Captain Agnelo Pereira, Sanjeev Sarwal and Jeff Otto – all key in the professional development of the students and getting them through their courses, spoke of their admiration for the graduates and to be proud of their accomplishments to date.

“You are ready to take on any challenge now,” said Sarwal. “Be proud of your accomplishments and excited about the future.”

Valedictorians Brock Kitzel (Nautical Sciences) and David Mehain (Marine Engineering) both recognized and thanked family, friends and their instructors for their support. They also thanked and congratulated their fellow classmates who “have become like brothers”.

Following the presentation of certificates, it was the industry’s turn to recognize the accomplishments of the Class of 2014 in the form of Achievement Awards: • Brock Kitzel and Scott Dielissen received the Oak Maritime Awards, presented on behalf of Oak Maritime

by Dr. Richard Wiefelspuett.

• Mark Spence and Ian Johnson received the Algoma Central Corporation Awards, presented by Jeff Otto.

• Philip Sutherland and David Mehain received awards (and high praise) from Captain Stephen Brown, President of the Chamber of Shipping of British Columbia.

• Brock Kitzel was awarded the Vancouver Maritime Arbitrators’ Association Award by Darryl Raibl.

• Austin Smith and Jordan Derrick received the BC Ferry and Marine Workers’ Union Awards.

• The BC Ferry Services Awards were presented to Michael Fischer and Won Shin.

• Reid Graham received the Vancouver Conway Club Book Award, presented

by Captain David Whitaker.

• Alexander MacPhee and Matthew Schulte received the Nautical Professional Education Society of Canada Book Awards, presented by Captains Chris Frappel and John Lewis.

• Representing Lloyd’s Register, Nigel Hastings presented Andrew Barry and Douglas Ubell with awards on behalf of Lloyd’s.

• Cody Kirlik received the Transport Desgagnés Inc. Award, presented by President and General Manager Serge Le Guellec.

Congratulations to the Class of 2014!

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September 2014 BC Shipping News 41

FERRIES

CARGO LOGISTICS

Vancouver forum to map vision for ferry safety

By Len Roueche, CEO, Interferry Interferry’s fast-approaching annual conference will be close to home for CEO

R

unning a global trade association inevitably involves answering a recurring question — “Chicken or fish?” I saw a lot of ships in my 25 years with BC Ferries, but 12 years at Interferry have introduced me to even more aircraft.

A good many of my flights have concerned our annual conference — finding venues, fixing the deal and finally heading our tireless team at the actual event. But this year I can leave my well-worn passport behind, because our 39th edition takes place from October 4 to 8 at the Westin Bayshore hotel in Vancouver, just across the water from my home in Victoria.

Such a short hop will make quite a change from travelling to other conference destinations of the past decade — Athens, Long Beach, Stockholm, Hong Kong, Istanbul, New York, Barcelona, Dubai and last year in Malta. And apart from avoiding jetlag, I’m really looking forward

Len Roueche and many of the speakers...but as he explains, the main topic will be universal. to showing off my corner of the world to hundreds of discerning professionals.

But some things never change. So far as the business end of our gathering is concerned, safety issues will once again be centre stage — not least as a further response to the sinking of the South Korean ferry Sewol in April. As a direct result of the incident, Interferry is already talking with the IMO about joining efforts to improve domestic ferry safety.

Now these and other co-operative safety initiatives will feature when the industry’s major regulatory, commercial and technical challenges are discussed by an international array of speakers, including a notable Canadian and U.S. contingent.

The IMO’s latest safety strategy will be examined by special guest speaker Jeff

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

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

Peter Swanson Catherine A. Hofmann Paul D. Mooney Megan Nicholls

Thomas S. Hawkins Tom Beasley David S. Jarrett

associate counsel: Lorna Pawluk tel: 604 . 6 8 1 . 1 7 0 0 fax: 604.681.1788 emergency response: 6 0 4 . 6 8 1. 17 0 0 address: 1500–570 Granville Street, Vancouver, BC, Canada, V6C 3P1 web: www.bernardllp.ca

42 BC Shipping News September 2014

Lantz, U.S. Coast Guard Regulations Director and Chairman of the IMO Council. His review will cover current thinking on international passenger ship safety after the Costa Concordia accident, followed by an outline of measures to help countries improve safety on domestic ferry routes.

A panel discussion on the human side of safety includes input from Darren Johnston — Safety & Security Director, BC Ferries, (our conference host) — on the company’s SailSafe safety culture project, a trendsetting joint initiative with the BC Ferry Marine Workers’ Union. As he notes: “Things don’t go right because people behave as they are told, blindly following the rules, but they are capable of adjusting performance to match the conditions and challenges of the modern operating environment.”

Fellow panel member John Garner, Fleet Director of U.K.-based P&O Ferries, will describe how Maritime Resource Management (MRM) training aims to enhance company safety culture by changing attitudes and behaviours.

Stressing that MRM is not about technical skills, Mr. Garner explains: “It is about the use and co-ordination of all knowledge, experience, expertise and resources available to the crew to achieve established safety and efficiency goals. MRM includes an understanding of the importance of good management and teamwork.

Importantly, engineers and shore-based fleet personnel are included on the courses with the captains and deck officers.”

Panel debates have become a popular fixture in the discussion-led Interferry conference format. This year’s line-up will also see British Colombia Transport Minister Todd Stone joining ferry company CEOs to discuss subsidies and governance at state-owned operators.

Another top level panel will consider the

FERRIES viability of the ro-pax concept and the future of passenger shipping.

Further Canadian-inspired dialogue is in prospect when another special guest speaker calls for short-sea operators to come together to define, defend and promote the industry. Kirk Jones, Government Affairs VP, Canada Steamship Lines, argues: “We need to find a common pathway to ensure our interests are met on a continual and sustainable fashion at the IMO. It will also be important to ensure that policy makers are cognizant of the value of our movements and the effect that shipping policy has on modal choice.”

Several new short-sea opportunities will be explored in a session focusing on Latin America and the Caribbean. U.S.-based travel consultant Bruce Nierenberg will float the case for international services to Caribbean tourism hotspots. “These destinations require transportation for over 15 million U.S. tourists a year,” he points out. “Amazingly, the only way for Americans to get there is to fly. The ro-ro and container potential is significant as

well. This should provide the catalyst for the world’s ferry operators to take notice.”

Among other presentations, University of Trinidad & Tobago Senior Maritime Lecturer Adrian Beharry will discuss proposals for a southern Caribbean fast ferry service handling intra-regional cargo and passenger trades.

The Vancouver International Airport Authority and Holland America will take part in a retail and customer service session that looks at ways to increase on-board revenue. This will also feature Sweden’s Stena Line, with head of onboard services Per Ola Jönnerheim — a former global sales manager for furniture giant IKEA — detailing his vision for making shopping a reason to travel.

The business case for LNG fuel — a core element of the technical content at recent Interferry conferences — will be updated by John Hatley, VP ship power at Wartsila North America. He will summarize the key drivers of the shift to natural gas, compare the economic merits of LNG and diesel configurations and forecast market trends for the new fuel over

the next decade. In addition, the requirements and options for LNG storage on passenger vessels will be discussed by Päivi Haikkola, R&D Manager at Finlandbased naval architects Deltamarin. Her presentation will include design conclusions drawn from several case studies.

The conference will occupy two days of a five-day working and social schedule that includes an exhibition supported by event sponsors, a golf tournament, a whale-watching safari and networking receptions. The program ends with a technical cruise on board the Coastal Celebration — one of three of the world’s largest double-enders built for BC Ferries

by Flensburger of Germany — when the crew will demonstrate emergency preparedness. Delegates and spouses can then take the option of a three-day postevent tour based in Victoria landmark the Fairmont Empress hotel.

For once, I won’t have far to go to get home. But as always, there will be plenty to think about and act upon when we finally say goodbye to our visitors. I hope you can join them!

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1-877-647-3784 September 2014 BC Shipping News 43

CLASS SOCIETY

Staying on top of the industry An interview with Luis Benito, Global Marketing Strategist, Lloyd’s Register

44 BC Shipping News September 2014

Photo credit: BC Shipping News

S

taying on top of the marine industry — both in terms of remaining a leader in the field as well as anticipating trends and developing services and products that meet clients’ needs — takes experience, skill, hard work and a little bit of intuition. Lucky for Lloyd’s Register, one of their key team players, Luis Benito, Global Marketing Strategist, exemplifies all of these characteristics.

Provided the opportunity to meet with Luis while he visited the field office here in North Vancouver, BC Shipping News jumped at the chance to get some insight into the strategies Lloyd’s has planned to ensure their stronghold in the classification industry.

BCSN: First, tell us about your role within Lloyd’s.

LB: As Global Marketing Strategist, my main responsibility is to make the link between the market and our technology department. My focus is on the marine sector and it’s my job to anticipate trends and then make sure we are creating the products and services that will satisfy the needs of the industry.

That includes making sure relevant research is being conducted continuously on emerging issues so we’re ready to respond when the market is ready for them — for example, with new technologies or new regulations.

BCSN: Were you part of the team that developed the 2030 Forecast?

LB: I was. I didn’t work directly on it but was part of the communications effort behind it. My technical department was in charge of producing the report and our Communications department worked with my team and selected LR managers globally to get it out to the market as well as brief the senior management within the company on how to communicate it out to the industry.

BCSN: What distinguishes Lloyd’s from other classification societies? How do you translate that into the branding?

LB: I believe that we are more independent than other classification societies and our independence is vital to be able to deliver our mission, which is to help ensure that shipping is safe. Only by being independent — from governments, vested interests and shareholders

Luis Benito, Global Marketing Strategist for Lloyd’s Register. focused on financial returns — can we assure ourselves that what follows from our independence, our integrity, is secure.

The value of independent classification is that we help provide the assurance necessary to address risk and enable commercial decisions based on the best possible understanding of safety and technical requirements. Number one always is safety — helping ensure safety is what we do. But, also, we believe that high performance is not possible unless safety is a priority.

So far as the brand is concerned, it’s all about our people — our surveyors and all of our technical experts and support staff.

Recently, we updated our logo. We took the original LR stamp — an entwined ‘L’ and ‘R’ that, literally, used to be stamped on steel by our surveyors and updated it.

We hope the new logo conveys modernity and a spirit of innovation but in a way that is still based on and connected to our heritage — the real LR brand — and our tradition of technical excellence.

I have said that independence is very important for us and last year we took a further step to update our corporate structure to reflect changing times. To ensure we could keep the best aspects of commercial, cost-effective management but still support society with our surpluses, we changed our corporate structure and ownership so that the owner of the Lloyd’s Register Group of companies is a charitable foundation — the LR Foundation — which exists to fund education and science, engineering

and technology research for public benefit worldwide. So while the operating company — i.e., Lloyd’s Register — generates profits, those profits don’t go to shareholders seeking returns for wealth generation.

Our surpluses go toward enhancing safety of life, property and the environment across a broad range of industries.

Here in Canada, we are very well positioned to help clients throughout the entire supply chain and that’s another distinction. Whether it is with ships, shipping operations, ports or terminals, the team here can address the whole spectrum of the supply chain and that’s a big difference between us and other societies. We also have a global network of over 9,000 staff and we’re able to apply those global resources locally to bring additional value to clients.

BCSN: What are some of the short and long-term trends you’re seeing in the market?

LB: For the short term — about two years out — the use of LNG as a fuel is a tremendous priority. It started a few years ago and continues to build in momentum in terms of LNG-powered ships, ships that carry LNG, ports, export terminals and terminals used to supply gas as a marine fuel.

In British Columbia and Canada, like in the U.S. and the Baltic/European countries, the response to Emission Control Areas regulations has led to an increase in the use of alternative fuels. Transport Canada has already decided that gas will be supplied for ships in Canada.

CLASS SOCIETY In terms of new gas ships, this trend is moving fast. Our job right now is more about servicing. The technologies are already existing so the priority is to catch the attention of new clients coming into the market. We’re seeing ship owners from countries like India and Greece making a move. That is something that always keeps my attention.

In addition to LNG as an alternative fuel, we’re also involved in a methanol research project — another very promising fuel. It has many advantages but it also has its challenges. It occupies much less space than LNG onboard and more research is ongoing into how to make it safe and secure for shipping as well as ensure an adequate supply. However, the methanol industry knows they can produce more. They just need to market it — work on awareness, make some commitments and show some examples. So for Lloyd’s, as we’re doing with LNG, we’re looking at how the technology needs to evolve to make the industry compliant.

Another short-term trend is occurring in container shipping. Despite the current market for rates and supply-demand unbalance, companies are ordering more ships — bigger ships and ships being moved into other trade areas. We think there are going to be more large ships very soon — larger than the Maersk Triple E at 18,000 TEUs. Since Maersk designed the Triple E, the sum of evolutionary designs has resulted in the optimization of an 18,000-TEU ship so there is room for added capacity. Container ship optimization is a continuous process.

The other thing that we are now looking very actively at is ship performance for energy efficiency — and again, that is a continuous evolution and a trend that’s here to stay.

BCSN: What are the long-term trends?

LB: One of the trends we’re looking at is the autonomous ship — i.e., a remotecontrolled ship — and moving toward a ship with less and less people. If you want to be really radical, a ship with no people.

BCSN: Do you think we’ ll ever get to that point?

LB: Like so many trends, I think we’ll get there in steps — it takes time and you take little steps toward it. For example, there are some areas of the seas where traffic is not heavy, so why not? This is something that we’re now looking at.

First, we study internally but then we form working groups with industry. To

Technology is moving very fast and we have to make sure that we understand it well so we can use it safely. make it real, you need designers, shipbuilders, ship owners, sometimes government.

We have our own ideas, our own research — in the short term, implementation will not likely be tangible but this kind of research is for the long term. You learn a lot about systems integration and automation and that’s already being implemented on ships. It’s a non-stop process because more and more systems are being installed on board which means there is more software.

So we are looking at software integrity which leads to systems integration.

To make this a reality, however, depends on the willingness of the stakeholders. It’s easy enough to implement but you need to prove its safety and you need to make sure it’s something that makes sense to do.

The other thing we’re looking at is hybrid propulsion — i.e., the use of batteries — for the long term. It’s already here and already exists on ships right now, but it’s currently more of a niche because

the batteries aren’t powerful enough or take up too much space on the ship so it’s not commercially viable for very large ships on very long haul trades. Given the concern about emissions, there might be a time when everything is run on batteries or other low/no-carbon fuels.

And yet another subject is 3D printing.

People are going to start making components for engines or ships and we are working to ensure that when it comes into the industry, it’s safe.

The last area relates to ship performance. While not new, I think there will be more momentum toward the use of massive databases to understand behaviours and create standards for the future.

Technology is moving very fast and we have to make sure that we understand it well so we can use it safely. We have to make sure we’re not stopping technology — we need to work at the same speed as it’s being developed. BCSN

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www.atpi.com September 2014 BC Shipping News 45

EVENTS New Wave Conference energizes attendees Photo credit: BC Shipping News

W

ith interesting speakers, relevant exhibitors and valuable networking opportunities, the Vancouver Island Branch of the Canadian Institute of Marine Engineering hosted a successful technical conference in June at the Delta Victoria Ocean Pointe Resort.

Given the theme of “The New Wave”, presentations highlighted new technologies, opportunities and challenges in ship, marine renewable and ocean technology industries.

Master of Ceremonies Malcolm Barker, Vice President and General Manager for Seaspan’s Victoria Shipyards, did a fine job in leading attendees through two days of sessions where new ideas were introduced, new technologies were discussed and new acquaintances were made.

Presentations gave examples of the kind of innovative and leading-edge research and technology development that is being applied in various sectors of the marine industry. And with a total of 24 presentations, attendees were given a glimpse of what’s possible when imagination, collaboration and ingenuity are applied.

The development of wave and ocean energy was a big part of the conference theme. For example, Matt Sanders, Program Manager, Oregon Wave Energy Trust — a world leader in wave energy development — described how collaboration with the marine industry was creating opportunities to develop ocean energy technologies. Dr. Bryson Robertson, Project Manager/Senior

Some of the New Wave Organizing Committee (l.to.r.): Malcolm Barker (Victoria Shipyards), Bert Blattman, Martin Leduc, Sam Johnson, Alicja Rudzki, Tony Cond, Phil Duaphinee and Mike Weaver.

Research Engineer, Uvic’s Westcoast Wave Initiative, presented an overview of the research program that was investigating the feasibility, impacts and opportunity costs of wave energy power generation on the West Coast of Canada. Jim Matei, President of AOE Canada Accumulated Ocean Energy Inc. spoke about his work to develop technology that could capture the immense power of ocean swells and waves and transpose this energy in usable “green energy”.

Other presentations challenged attendees to visualize a world without the use of fossil fuel. Fred Loomis, Director of

More photos online at www.bcshippingnews.com

46 BC Shipping News September 2014

Technical Projects, W&O Supply —whose presentation was featured in the July issue of BC Shipping News — spoke to attendees about the options for ship owners considering LNG as an alternative fuel. W&O Supply partners with OEMs to provide LNG valves, piping and related fuel system equipment. Dr. Chris Campbell, Marine Renewables Canada, described how aligning the interests of industry with academia and government were moving Canada into a leadership position in providing ocean energy solutions to the world market. Joel Atwater, Chief Technology Officer, Hydro Run, described his project, the HydroKite, which is a tethered robotic hydrofoil that produces firm, base-load electricity from rivers without the need to dam or divert the flow.

Another alternative energy — that of hybrid-electric propulsion — was covered by two presentations that both spoke to significant advancements in the development of battery-power. Geoff Davenport, President, International Business, Corvus Energy provided details on the advances in hybrid and full electric propulsion for passenger ferries; and from the Mechanical Engineering Department at the University of Victoria, Tiffany Jaster, Graduate Research Assistant, and Dr. Zuomin Dong, Professor and Chair, spoke about the trends toward the use of onboard electrical storage systems for full electric operation.

EVENTS New — and very creative — processes for a variety of operations were also highlighted. From the Canadian Coast Guard’s successful undertaking to remove oil from the Brigadier General M.G. Zalinski — a sunken U.S. military transport vessel (presented by Cliff Hunt, Regional Director for Integrated Technical Services for Western Canada), to new technology that provides a cost-effective solution for deep-water geotechnical surveys and mineral exploration (presented by Adrian Woodroffe, Business Development Manager, Cellula Robotics) and a new self-propelled, dynamically positioned barge that, while currently used for harvesting underwater timber, could have applications for other industries (presented by Triton Logging’s Rick Brawn, Engineering Technologist, and Stan Worsley, Director of Engineering), these sessions demonstrated how ingenuity, combined with a little bit of imaginaPublication tion, were leading to new inventions that BC Shipping were opening News up areas of operation never before considered.

And of course, given the audience’s Issue interest in vessel design and operations, June a 2014 number of presentations focused exactly on that. BC Ferry Services’ Bruce Paterson (Director, Naval Architecture, Size Engineering) and Paul Radford Island (half page vertical) (Engineering Superintendent, Vessel Replacement Program) gave insight into the organizations decision to build Deadline three new intermediate-size ferries that Maywill 6, be2014 powered with LNG using dual fuel (natural gas/diesel) engine technology. Denis Morais, Chief Technology Officer, SSI Corporation (developFeatures ers of ShipConstructor), spoke about EDITORIAL FOCUS leveraging engineering information to Terminals Ÿ Industry Insight – Denis Horgan, Westshore Terminals (TBC) Ÿ Put PEP into your emergency response (by John Lewis) EXTRA DISTRIBUTION The New Wave Engineering Conference Ÿ GreenTech 2014 Ÿ

be used in other areas of the shipbuilding process through the integration of data. SSI has developed a product called EnterprisePlatform which solves this challenge.

Most definitely the highlight of the conference was the keynote speech from Brian Carter, President, Seaspan Shipyards who gave a full update on work related to the National Shipbuilding Procurement Strategy, including the modernization projects of Vancouver and Victoria Shipyards. Carter noted that they

should be ready to cut steel on the first vessel — the Offshore Fisheries Science Vessel — by the end of October.

The CIMarE Vancouver Island Branch Conference Committee are to be congratulated on a well-organized and interesting agenda. In between sessions, attendees were able to network and visit exhibit displays from the likes of Jastram, Axys Technologies, MAN Diesel & Turbo Canada, Belzona, Kobelt Manufacturing and Frontier Power Products (just to name a few). BCSN

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September 2014 BC Shipping News 47

LEGAL AFFAIRS

Arrest of ships 101

By Peter Swanson

A Lawyer with Bernard LLP

P

eople will often call and ask about the ability to arrest a ship.

Sometimes they think that because they have a claim against a ship owner, that they are automatically entitled to arrest the ship to satisfy their claim. That is not the case. While the ability to arrest ships exists to support many claims, it is not just any claim that entitles a claimant to arrest. There must, generally, be a valid nexus between the claim and the ship (or the owner, as owner of a ship) to support a right of arrest. Sometimes a specific nexus with the ship owner is not required, but that is in fairly rare cases where a true maritime lien exists.

As a starting point, ship arrest is not available in all courts. The Federal Court, thought of as our admiralty court, has a ship arrest power and procedure. The Supreme Court of British Columbia also has a ship arrest power and procedure, but it is not used as frequently as the Federal Court procedure. The Federal Court practice relating to the arrest of ships, as such, is more evolved and is typically where lawyers will look for guidance on issues that might arise. The ship arrest power in the Supreme Court of British Columbia is actually based on the arrest power set out in the Federal Courts Act. Section 22 of the Federal Courts Act sets out the Court’s maritime law jurisdiction.

Subsection (2) lists various types of claims that can be brought in the Federal Court.

It includes claims such as those involving possession or ownership of a ship, a mortgage on a ship, damage or loss of life or personal injury caused by a ship in collision or otherwise, damage to or loss of cargo carried on a ship, or for salvage, towage or pilotage of a ship. Claims relating to agreements for the carriage of goods, passengers, baggage or personal belongings on a ship or for the use or hire of a ship are also within the Court’s

48 BC Shipping News September 2014

jurisdiction. Similarly, claims relating to the provision of goods, materials or services to a ship (e.g. stevedoring services), or arising out of a contract in relation to the construction, repair or equipping of a ship can be brought in the Federal Court.

Masters and crew can claim for wages and related benefits owing, as can insurers or their insured for matters arising under a contract of marine insurance. As one would also expect, dock, harbour and canal operators can claim for dues and related charges.

Importantly the matters identified as coming within the Federal Court’s maritime jurisdiction, mentioned above, are then deemed by s. 43 of the Federal Courts Act to give rise to a right (in certain circumstances) of arrest. More specifically s.

43(2) says: (2) Subject to subsection (3), the jurisdiction conferred on the Federal Court by section 22 may be exercised in rem against the ship, aircraft or other property that is the subject of the action, or against any proceeds from its sale that have been paid into court.

The right “in rem” as mentioned is the right to arrest. What this section means is that a person with a claim, as described in section 22(2) mentioned above, has a right to arrest a ship for such a claim. The right of arrest is not meant to punish a ship owner.

Arrest, as a matter of practice, is designed to ensure that a successful claimant has a mechanism for obtaining payment if their claim is ultimately determined to be valid.

Arrest of property is an extraordinary legal tool in that it is done before any claim is proven. Indeed, ships and other property are often arrested in cases that are ultimately decided against the claimant. While this can (in Canada) result in cost consequences for the unsuccessful claimant who arrested the property, it is only in extremely rare cases that the unsuccessful claimant

will have to pay damages for “wrongful arrest”. This latter point was clarified by our Supreme Court of Canada in the case of Armada Lines Ltd. v. Chaleur Fertilizers Ltd., [1997] 2 S.C.R. 617 where the Court adopted the test set out in the case of “Evangelismos” (1858), 12 Moo. P.C. 352.

Put simply, a court may only award damages for wrongful arrest where the arresting party acts with either bad faith or gross negligence. These are difficult matters to prove.

In practice, arrests will often be threatened but not actually take place. Rather, the claimant’s lawyer will make contact with the ship owner, or its local lawyer, and basically threaten to arrest. That will often (at least in a deepsea context) prompt the ship owner (typically through its local lawyer) to consider whether the type of claim being asserted gives rise to a right of arrest. If so, a negotiation will often ensue about the form and amount of possible security to be given to a claimant in exchange for the claimant agreeing not to arrest the ship. Assuming an agreement is reached on security and the security is provided, the vessel is simply not arrested and carries on with its usual business. Security (or bail) is generally capped at the value of the claim (plus some incidentals for legal costs and interest) or the value of the ship, whichever is less. As to the form of security, P&I Club letters of undertaking are often used, but they are not the express form of security set out by the Court rules. Rather, the Court rules contemplate security in the form of a bank guarantee from a Canadian bank or a bond from an appropriate Canadian insurer. Bail bonds can also be used, but that is not a very common practice.

It is noteworthy that the right of arrest is not limited to ships, but rather includes “aircraft or other property.” Typically in a marine context, “other property” includes

LEGAL AFFAIRS cargo carried, or contracted to be carried, on a ship. An interesting example of this latter point is found in the case of Phoenix Bulk Carriers Ltd. v. Kremikovtzi Trade, 2007 SCC 13. In that case, a cargo of coal that had been loaded to a ship was arrested, it being alleged that the cargo owner had breached an agreement to have the coal carried on board a different ship. The owner of that different ship was the party arresting the cargo. There was some doubt whether there was, at law, a right to arrest the cargo in such circumstances, as the Federal Court of Appeal in a similar case had reached a different result, holding that there had to be a “physical nexus” between the property being arrested and the claim.

The Supreme Court of Canada concluded that the “physical nexus” interpretation of s. 43(2) previously used was too narrow and favoured an “identifiability” test that seeks to determine “…whether the cargo is the cargo designated in the contract of affreightment alleged to be breached.” If it is, then the cargo can be arrested. If not, then there is no right of arrest. Given that the arrested cargo was the actual cargo that was the subject of the contract of carriage, it was capable of arrest.

As to the general right to arrest, it should be noted that it is limited by s.

43(3) of the Federal Courts Act which says: (3) Despite subsection (2), the jurisdiction conferred on the Federal Court by section 22 shall not be exercised in rem with respect to a claim mentioned in paragraph 22(2)(e), (f), (g), (h), (i), (k), (m), (n), (p) or (r) unless, at the time of the commencement of the action, the ship, aircraft or other property that is the subject of the action is beneficially owned by the person who was the beneficial owner at the time when the cause of action arose.

This is a very important provision.

What it does, in essence, is identify those claims that will still give rise to a right of arrest even after ownership of the ship (or aircraft or other property) has transferred to another person. A good example of how this provision works is found in the case of Fibreco Pulp Inc. v. Star Dover (The), 145 FTR 125, which was affirmed on appeal by the Federal Court of Appeal in 2000. In that case, claims were brought against various ships and their owners for damage to cargo alleged to have occurred during a voyage from British Columbia to Rotterdam where it was transhipped with the ultimate port of discharge in Finland.

In order to avoid the arrest of the ships

involved, security was provided to the claimant, but conditionally as there were various issues raised, including whether one of the ships had been sold before the suit was commenced. These various issues were raised on a preliminary basis.

Written affidavit evidence was put before the Court on the issue of ownership and sale of one of the ships. The cargo claimant strenuously resisted the ship owner’s challenge to the notional arrest based on a change of ownership, but the claimant did not present any evidence to suggest that the ship sale was not legitimate.

The Court, in addressing this issue, made some interesting comments, being somewhat critical of the evidence relied upon by the ship owner, but then noted it was the claimant’s obligation to prove they have a right of arrest. The Court said: [38] The Plaintiffs have not gone beyond speculation as to continuity of beneficial ownership and what one might possibly find on lifting the corporate veil. There is no positive evidence from the Plaintiffs establishing that Gran Inc. is owned beneficially by Kraft Line, or whoever owned the Star Gran in the first place.

While the issue of ownership is usually considered in the context of an arrest, there are maritime claims that are not affected by a transfer of ownership. In other words, some claims will pass with the vessel from owner to owner. Such claims can, as one might imagine, create problems for those looking to purchase a ship. The purchaser will rightly want to know whether there are any claims that will pass with the transfer of the ship. This can create real problems for solicitors involved in the purchase and sale of ships. There are contractual tools (such as indemnities or security) often used to address this issue, but nobody really wants to learn that the ship they just acquired has some claims attached to it that will permit an arrest. Contract relief or security may not be sufficient.

In any event, the types of claims that allow for a right of arrest even after an arm’s length transfer of ownership (assuming the suit was not commenced before the sale) are those types of claims set out in s. 22(2) but not identified in s.

43(3) quoted above. Such claims include claims for ownership of a vessel; claims pursuant to a mortgage; claims for loss of life or personal injury caused by a ship; claims for salvage or general average; claims by pilots, masters, or crew for fees or wages; or claims for dock, harbour

or canal charges or tolls. Some of these claims are considered true “maritime liens” as distinct from a simple “right in rem” (i.e. a simple right of arrest). While sometimes this distinction makes little difference, there are other times when it can matter a lot. Transfer of ownership is clearly one of those situations where the distinction matters.

Another noteworthy power, is the ability (in certain circumstances) to not only arrest the ship that was the cause or source of the loss, but also a “sistership”.

In historical terms, sistership arrest is a relatively new concept. It was addressed in the 1952 International Convention for the Unification of Certain Rules Relating to the Arrest Of Sea-Going Ships. Sistership arrest was first permitted in Canada in early 1992 and, as such, Canadian cases dealing with sistership arrest issues are somewhat limited. As outlined by Paul Mooney in the April 2014 issue of BC Shipping News, Canada’s sistership arrest provision is found in the Federal Courts Act at s. 43(8) which provides: (8) The jurisdiction conferred on the Federal Court by section 22 may be exercised in rem against any ship that, at the time the action is brought, is owned by the beneficial owner of the ship that is the subject of the action.

Not surprisingly many questions have arisen regarding sistership arrest. For example what, or who, is a “beneficial owner”? Is it possible to arrest the offending vessel and a sistership, or must it be one or the other? Can a claimant with a claim greater than the value of the offending ship seek to arrest and obtain security based on the value of a more expensive sistership? Can more than one sistership be arrested? These are all issues that are not addressed by the legislation, but rather have been left for the Courts to decide.

In short, ship arrest is an effective tool used in appropriate circumstances to secure maritime claims. It cannot be used in any and all circumstances involving a ship owner, but it does have broad application and use. While one may think arrest is a simple and straightforward process, it has many complexities and issues.

I have no doubt our Courts will continue to be asked to address ship arrest issues, and the practice of ship arrest will continue to evolve over time.

Peter Swanson is a partner with Bernard LLP. He can be reached at swanson@bernardllp.ca.

September 2014 BC Shipping News 49

TECHNOLOGY

A low-cost solution to GPS vulnerabilities

F

or years, navigation experts have been warning governments and the maritime industry of the vulnerabilities of GPS. Whether unintentional (solar flares) or intentional (satellite jammers), the loss of GPS navigation with no back up can leave a vessel, quite literally, in an unknown position. Given that jamming a satellite is now as easy as a quick Google search, it’s surprising that the global maritime sector has not placed greater urgency on finding an independent back-up positioning system. It is here in North Vancouver that Helmut Lanziner, the founder of ECDIS, has developed a solution.

The issue

Reporting on a panel session at a recent European Navigation Conference (ENC), Peter Gutierrez, with Inside GNSS News, provided a succinct summary of the issues with “At ENC 2014: A GNSS wake up call for Europe”. (GNSS stands for global navigation satellite system.)

“GPS is in so many onboard systems today, that the people who run ships today aren’t even aware of what all can go wrong when GPS drops out.” Presenter David Last told attendees. “Satellites can fail. Solar flares can swamp the system. And there is intentional jamming.”

What’s worse, GPS is now widely the only positioning tool on board.

Professor Last made the observation that one person can knock out all L1 to L5 bands, meaning GPS (global positioning system), WAAS (Wide Area Augmentation System primarily used in the aviation industry), Galileo (a global navigation satellite system currently being developed by the European Union), and Navstar (the network of U.S. satellites that provide GPS services).

In the same ENC session, speaker Erik Theunissen, from the Netherlands Defence Academy, compared GNSS with the Internet. “There was once a time when the Internet was young and everybody thought it was great and no one thought anything could go wrong. Then came the first high-profile hacking incidents. Then came deliberate attacks. And despite all our efforts, they have never stopped.”

Theunissen referenced such examples as the Newark airport case and the recent jamming of South Korean maritime navigation systems by North Korea.

50 BC Shipping News September 2014

Given that jamming a satellite is now as easy as a quick Google search, it’s surprising that the global maritime sector has not placed greater urgency on finding an independent back-up positioning system.

While some experts in Europe are advocating for an international eLoran system — low-frequency, LOng-RAnge Navigation independent from GNSS — with Loran-C abandoned in North America, new infrastructure and significant resources would be required to make this a viable option and is impossible without government participation which appears slow in coming.

Bottom-line: there is currently no realistic back up for GPS and governments are slow to address the problem of GPS vulnerability. As far back as 1998, the White House Weekly reported on the U.S. President’s “Commission on Critical Infrastructure Protection” described GPS navigation as the greatest single risk to America in the modern electronic era.

And yet solutions continue to evade regulation, leaving ship operators and owners to fend for themselves to ensure the safety of crew, cargo and ship.

So what to do?

Enter — or rather, re-enter — Helmut Lanziner. Internationally recognized as the father of what is now known as ECDIS (Electronic Chart Display and Information System), Lanziner and Harvey Russell, President of Russell Technologies have developed Automatic Radar Positioning (ARP) or ‘RadarFix’, a system that provides 100 per cent redundancy in the event of failure of, or interference with GPS.

The Canadian solution

Few in the local shipping sector realize that ECDIS — likely the single largest advance in marine navigation since radar — was invented by North Vancouver local Helmut Lanziner, a pioneer in the field of positioning systems and electronic charting. Lanziner has received the Order of Canada, Transport Canada’s 2005 Marine Safety Award, and the Queen Elizabeth II Diamond Jubilee Medal in recognition of his ground-breaking work.

He was also a part of the Canadian delegation to the International Maritime

Helmut Lanziner — internationally recognized as the father of ECDIS — provides a Canadian solution to GPS vulnerabilities.

Organization to deal with electronic chart-related issues.

For over 40 years, Lanziner has been at the forefront of positioning and navigation technology — he began working on positioning systems as early as the 1970s and supplied the first self-contained operational electronic chart system (PNS, or Precise Navigation Systems) for six offshore supply vessels and dedicated icebreakers in the Canadian Arctic.

He went on to develop PINS, or Precise Integrated Navigation Systems, and then further developed PINS to include radar information and other sensor integration in ECPINS, or Electronic Chart Precise Integrated Navigation System.

Lanziner also developed radar image overlay to identify uncharted hazards relative to a ship’s own position. In 1989, while at Offshore Systems Ltd. — the company he founded (noting he has since moved on) — Lanziner undertook the first trials of RadarFix, a patented radar positioning technology. Originally developed for stand-alone operation in confined waters, ARP has evolved to become an interface to existing shipboard radars and

TECHNOLOGY provides a completely independent, lowcost back up to GPS/GNSS. It requires no additional navigation equipment or infrastructure external to the vessel.

The evolution of RadarFix

Prior to GPS, international efforts focused on coming up with a practical and economic solution for precise, highly reliable, land-based positioning. In order to reduce the complexity and cost of these types of installations, Lanziner undertook development work on a system called RadarFix. The plan was to adapt standard marine radar to become a highly-accurate automatic positioning system by accurately determining range and bearing to distinct shore-based radar targets, and determining position by solving for geometry.

With the integration of a personal computer and software to standard marine radar, RadarFix could extract measurements from existing radar targets of different shapes in a sophisticated manner to yield accurate range and bearing information. Effectively, it can subject the geometric shape resulting from the combination of measured targets to a pattern-matching process with a previously established database.

Detailed parameters about the size and shape of these targets are entered into this database, together with precisely surveyed co-ordinates. This allows the radar to work not only with isolated point sources, but to use information from larger structures, such as faces and corners of buildings, edges of docks, and line-ends evident on jetties. The resulting position accuracies are two to five metres (95 per cent).

Fast forward to present day and the current iteration of RadarFix has some major differences in functionality and performance compared to previous versions. One of the most time-consuming and complex aspects previously was setting up a RadarFix network. This included surveying the reflector/target sites and providing a detailed description of potential targets.

Establishing survey control was costly, which normally resulted in the use of fewer targets than necessary for optimum results.

With GPS/GNSS and accurate heading information available today, this is no longer the case. As an integrated input to RadarFix, these sensors provide a constant position and bearing reference for the acquisition of any number of targets.

While target position determination used to be a one-time opportunity (i.e., all measurements were made during the setup), it is

RadarFix can serve as a totally independent, low-cost, and robust backup to GPS/GNSS without the need for any additional navigation equipment or infrastructure external to the ship. now an ongoing process. The system can continuously check, verify, update and refine target positions. It will allow for the addition of new targets on an ongoing basis, as well as further refinement of target shapes and positions through many hundred, or even thousands of radar observations from different perspectives, with the benefit of a continuous accurate position and heading reference of own-ship.

In addition, given the processing speed of today’s computers, the number of targets that RadarFix can now process simultaneously has increased by orders of magnitude to enhance position accuracy and reliability.

Today’s RadarFix can be used with existing targets. Many of the original RadarFix installations had specially designed radar reflectors to discriminate against background clutter. Experiments and trials in some operational areas revealed that by utilizing existing targets, it is possible to achieve the same level of accuracy and reliability as that accomplished using builtfor-purpose reflectors. The result is that special reflectors are not always necessary and that the standard marine radar, as installed on the vessel, will deliver reliable positioning performance.

Peace of mind

RadarFix can serve as a totally independent, low-cost, and robust backup to GPS/ GNSS without the need for any additional navigation equipment or infrastructure

external to the ship. One of the main weaknesses of GPS is in the low energy of its signals and the relative ease in which jamming devices can be effective. With radar signals being more difficult to jam, RadarFix is well-suited to serve as a back-up. And since RadarFix works with existing radar installations on ships, all that is needed is a sensor interface between the radar and a computer, together with RadarFix software. In addition, shore-based infrastructure that RadarFix needs to perform in most operational areas consists of existing radar targets and inexpensive reflectors that can be added to augment the system in difficult operating areas.

No less than seven international conferences were held in the last year to address the issue of GPS vulnerability with a number of experts predicting that it’s only a matter of time before a major incident occurs. And while governments around the world continue to ignore the reality of GPS vulnerabilities, at least one solution is being developed that can provide peace of mind for ship owners and operators.

Russell Technologies is in the process of translating the old RadarFix software onto new platforms with current software technology. A demo system is expected to be up and running in Vancouver by the beginning of 2015.

For more information about RadarFix, contact Helmut at: HLanziner@ russelltechnologies.ca or visit www.russelltechnologies.ca. BCSN

Located at Vancouver Waterfront and Roberts Bank

www.flyingangel.ca September 2014 BC Shipping News 51

MARITIME SECURITY

Naval recapitalization and shipbuilding

By Richard Gaudreau, Research Assistant, Maritime Forces Pacific, International Engagement Section

N

aval and maritime-related procurement, repair, and development programs are on the rise around the world. A common thread linking these initiatives is debates about how best to deal with the challenges associated with shipbuilding. Ideally, governments hope that their national industrial bases can produce ships and technologies that will meet or surpass a range of commercial and naval needs. However, in reality, the immediate need for vessels, the financial risks associated with domestic development, and the capabilities exhibited by foreign-designed ships prompt some countries to accept that foreign procurements are a better option.

Here in British Columbia, the politics of shipbuilding, at least for commercial vessels, are well-known. For example, BC Ferries’ 2004 decision to build three Coastal-class (“Super C”) ferries in Germany and the corporation’s latest decision to build three smaller ships in Poland have been politically divisive. In both cases, building the ferries overseas would save millions of dollars and thus could lead to lower fares. On the other hand, domestic construction of the ferries would result in local employment within the B.C. shipbuilding industry and enable the provincial government to recoup a portion of the cost in the form of taxes.

The architects of the 2010 federal government National Shipbuilding Procurement Strategy (NSPS) — the largest procurement sourcing arrangement in Canadian history — addressed some of the criticisms of the BC Ferries model by ensuring that the government of Canada would build a range of government vessels indigenously, generate work that will span 20 to 30 years, and counter the “boom and bust” economic cycles that have characterized the industry. That said, the NSPS also faces major challenges. For example, the Auditor General released a report on the NSPS in 2013 that stated that the government had to either increase the amount of money it was willing to spend on new ships, or scale the projects back. This finding is important because trade-offs between cost and capabilities

52 BC Shipping News September 2014

Ideally, governments hope that their national industrial bases can produce ships and technologies that will meet or surpass a range of commercial and naval needs. may occur as a result of financial inflexibility or overambition and this could result in the NSPS failing to achieve all of its goals.

Looking ahead, Canadian policy planners could mitigate these challenges by learning from countries like Australia, which has a similar economic and industrial capacity to Canada, as well as major projects underway, that are similar to NSPS plans, such as the development of new Air Warfare Destroyers (AWD) and the replacement of RAN Collins-class submarines. Australia’s plan to replace its submarines with 12 new conventional boats, for example, highlights the options countries have when choosing how to recapitalize their navies. Rear Admiral Rowan Moffitt, (Ret’d.), head of Australia’s Future Submarine Program from 2009 until 2014 and a speaker at the upcoming Maritime Security Challenges 2014 conference, notes that governments have four options when it comes to building vessels: build an evolved version of existing classes; build a new vessel from scratch; buy a vessel off-the-shelf from countries with greater capabilities or existing designs; or modify an off-theshelf design for their own conditions.

Australia’s construction program of three AWDs is an example of the fourth possibility, including its challenges and opportunities. Beginning in 2007, the building of three AWDs, modeled after the Spanish Álvaro de Bazán class frigate, has created thousands of jobs and given local engineers and workers valuable experience with sophisticated naval combat systems and naval shipbuilding. What’s more, the decision to build indigenously has helped shipbuilding facilities remain operational and may enable through-life support for the AWDs. This has opened the door to opportunities such as commercial

operations, shipbuilding for foreign navies and future indigenous initiatives.

This shipbuilding model, however, is not without its problems. In this case, a newly-released auditor’s report on the RAN’s future AWDs has found that delays of between 15 and 21 months are expected, the cost of building the three ships has exceeded the budget by AUD $300 million and could cost up to $800 million more than the original estimated price of $8.45 billion. The report finds specific fault with vessel modifications as well as inefficiencies within Australian shipyards, which, it suggests, were not prepared to undertake such complex design and construction work.

These difficulties could be overcome by partnering with countries with experience dealing with the more challenging aspects of shipbuilding, an example of Rear Admiral Moffitt’s third shipbuilding option. Australia’s decision to sign a Transfer of Defence Equipment and Technology agreement with Japan illustrates this alternative. The agreement will result in joint research that will focus primarily on sub-surface propulsion systems and the water resistance of submarine hulls. Given Australia’s previously stated interest in the capabilities of Japan’s indigenously-designed 4,200tonne Soryu-class submarine, this could lead to a collaborative effort to design and construct an evolved version of the existing boat for the RAN. Such a partnership promises to ease some of Australia’s shipbuilding challenges and mark a new era in Australian and Japanese military collaboration.

Even successful shipbuilding programs are not free and clear; there are other challenges that governments must consider, such as the maintenance of a highlyskilled workforce to sail and maintain the

MARITIME SECURITY Photo credit: Jörn Prestien, www.shipspotting.com

ships. Immediately prior to his submarine role, Rear Admiral Moffitt lead an examination that addressed work force sustainability. His study, which specifically examined submarines, concluded that in light of technological advances, creating a naval and maritime workforce, which can man, operate, and repair its own vessels, requires a significant amount of time and large amounts of highly technical training.

Thus, in order to maintain the long-term viability of fleets, thought must be given to how the naval and maritime community can acquire and retain requisite skills and levels of employment while remaining efficient and sustainable.

Clearly, shipbuilding is a challenging and contentious activity. In British Columbia and Canada, shipbuilding decisions by BC Ferries or the federal government have remained a hotly contested topic. Looking across the Pacific, the Australians have also experienced a variety of challenges with the construction of their ships. While policy makers continue to assess the best options for building new

The FGS Bonn, part of the German naval fleet, is an example of the Berlin Class support ship, an “off-the-shelf” design chosen for Canada’s fleet. vessels, they may be able to develop new best practices by observing different strategies, studying different partnerships, and taking part in open discussions.

The Maritime Security Challenges 2014 conference seeks to provide a platform that will promote international

dialogue and the sharing of best practices, as well as promote the formation of important relationships. The next iteration in the series is scheduled for October 6 - 9 in Victoria, with panels to discuss building the fleets of tomorrow and other crucial maritime affairs.

September 2014 BC Shipping News 53

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MARITIME SECURITY CHALLENGES 2014

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