BC Shipping News - September 2017

Arctic Shipping: MSV Nordica sets records

Intermodal Rail: Energizing port traffic

Clear Seas: Setting the facts straight

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

Volume 7 Issue 7

www.bcshippingnews.com

NEWS September 2017

Ports

Leadership perspectives on sustainable development

Industry Insight

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Chris Wellstood, Harbour Master Vancouver Fraser Port Authority

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Contents

NEWS

September 2017 Volume 7 Issue 7

Cover Story

48 Legal affairs

7

Editor’s note

8

In brief

By Jane McIvor

Industry traffic and news briefs

12 Industry insight

All that and a bit more Chris Wellstood, Director of Marine Operations and Security, Harbour Master, Vancouver Fraser Port Authority With 640 kilometres of shoreline, 27 major marine cargo terminals and over 3,100 deep-sea vessel visits per year, Wellstood has his work cut out for him as Harbour Master of Canada’s largest port.

20

18 History lesson

A brief history of kayaks

By Lea Edgar

50 Arctic shipping

Earliest ever west-to-east Northwest Passage voyage highlights changes in Arctic shipping.

By Captain Duke Snider

20 Ports

54 Technology

34 Intermodal rail

56 Interferry

Sustainable development of B.C. ports: Leadership perspectives

By Captain Stephen Brown

Intermodal rail energizes port traffic

By Darryl Anderson

39 Containers

Maersk Line Canada President shares insights on container sector

41 Op-Ed: Cabotage

12

Ship recycling and the transboundary movement of hazardous materials

By Mark Gill

Fight for cabotage gathering global strength

By Terry Engler

Robotics prompting shift in class surveys

By Julie Pray

Stronger together Innovation and the customer experience

50

43 Clear Seas

Setting the facts straight An interview with Peter Ellis, Executive Director, Clear Seas

On the cover: The yepanec harbour patrol vessel (photo: BC Shipping News); above: Port Alberni’s harbour (photo: BC Shipping News); right: The MV Noridica (photo: Captain Duke Snider); left: Chris Wellstood.

September 2017 — BC Shipping News — 5

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September 2017 Volume 7/Issue 7

Publisher McIvor Communications Inc. President & Editor Jane McIvor

Contributing Writers Darryl Anderson Captain Stephen Brown Lea Edgar Peter Ellis Terry Engler Mark Gill Jack Mahoney Jane McIvor Julie Pray Captain Duke Snider Chris Wellstood Editorial Assistant Amanda Schuldt

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Proud member of: 300 – 1275 WEST 6TH AVENUE, VANCOUVER, BC V6H 1A6 T: 604-893-8800 / F: 604-708-1920 E: JANE@BCSHIPPINGNEWS.COM 6 — BC Shipping News — September 2017

International Sailor’s Society Canada

EDITOR’S NOTE Photo: Dave Roels

Dave captured the shipping industry like no other

M

arine photographer Dave Roels passed away shortly after we went to print with the July/ August issue. While our tribute to him was posted quickly on-line, it wouldn’t feel right to leave the tribute out of this issue.

Dave was an integral part of BC Shipping News. It was through his photography over the past six years, that the magazine’s personality shone through.

His talent was self-evident; his enthusiasm and passion for the industry and, more importantly to Dave, the people within it, knew no bounds. I think of all the times he called after an assignment — the excitement in his voice as he described the people he’d met that day and the things they did. It was so obvious he loved what he was doing and, for me, it was motivational.

To work with someone like Dave was a gift. From his knowledge of the craft and his ability to be as comfortable shooting a tug crewman coupling up a boom as he was to positioning Presidents and Prime Ministers for an official handshake shot, he treated everyone with the same respect, politeness and cheer. He was a true professional.

But for all of his contributions to the magazine and the pleasure of seeing a true artist at work, it is his friendship that I value and miss the most.

My heartfelt condolences to Georgina, Dave’s wife and love of his life for 33 years. I think I can safely speak on behalf of the entire marine industry that Dave’s passing has left a hole in all of our lives and the world seems a bit less colourful today than it did yesterday.

— Jane McIvor

Dave holds the record for most photos featured on the cover of BC Shipping News. Here are just a few of my favourites. For a gallery of Dave’s work, please visit www.bcshippingnews.com/photos.

September 2017 — BC Shipping News — 7

INDUSTRY TRAFFIC

Presenting BCIT’s Class of 2017

Y

8 — BC Shipping News — September 2017

The Marine Engineering Class of 2017: Front Row (L to R): Alfred Crocker, Cassandra Ritchie, Larissa Galloway.

Middle Row (L to R): Angelo Rubini, Jacob Ray, Devin Shkuratoff, Tim Leeming. Back Row (L to R): Matthew Bowen-Saez, Karl Ng, Max Margel, Abinan Masilamani.

Missing: Androu El Masry, Daniel Lamont, Aleskander Mihov, Tobias Moretto, Troy Pearson, and Aaron Rossi.

Photos courtesy BCIT

ou know there must be something very special about the students when the Co-operative Education Co-ordinator (Jeff Otto) makes a point to remark on how much strength and determination he’s witnessed from this particular graduating class over the past four years — and even more special when he and the Chief Instructors of both the Marine Engineering and Nautical Sciences programs (Eamon Hayden and Captain Agnelo Pereira respectively) receive standing ovations from the students. So it was at this year’s Convocation Ceremony for BCIT’s Marine Campus graduates, held in Downtown Vancouver in July.

With family, friends, faculty and industry representatives on hand, another 32 graduates (15 in Nautical Sciences and 17 in Marine Engineering) were welcomed into the shipping industry. Congratulatory remarks from Captain Philip McCarter, Associate Dean, BCIT Marine Campus; Jack Davidson, Chair, BCIT Board of Governors; and Kathy Kinlock, President, BCIT described how they have chosen an exciting, diverse and growing industry and, with evident drive, talent and ingenuity, they were about to embark on thrilling adventures.

Speaking on behalf of the Nautical Sciences Class, Valedictorian Christopher Cornwell recalled “an experience I’ll never forget” and described eager anticipation as he and his classmates looked to the future. Devin Shkuratoff, Valedictorian for the Marine Engineering Class, echoed Cornwell’s words and further recognized the support and encouragement received from family, instructors, faculty and especially, fellow classmates. “I’m very grateful to be a part of this class,” he said. “We did it together.”

As is tradition at the Convocation Ceremony, a number of Achievement Awards were presented on behalf of the maritime community. Recipients included: • Oak Maritime Award: Phoebe Gilday (NS) and Devin Shkuratoff (ME) • Transport Desgagnés Inc. Award: Colin Mackie (NS) • Nautical Institute of BC/Vancouver Transportation Foundation: Ali Hassan and Serguei Koutaitsev (NS) • Algoma Central Corporation Award: Gordon Sawers (NS) and Tim Leeming (ME) • Chamber of Shipping Award: Jeremy Botel (NS) and Alex Mihov (ME) • Vancouver Maritime Arbitrators’ Association Award: Ali Hassan (NS) • BC Ferry and Marine Workers Union Award: Sarah Bidner (NS) and Jacob Ray (ME) • BC Ferry Services Award: Luke Rodine (ME) and Cassandra Ritchie (NS) • Lloyd’s Register Award: Cory McLachlan (NS) and Lenissa Pereira (ME) • Vancouver Conway Club Book Award: Matthew Mansley (NS) • Nautical Professional Education Society of Canada Book Award: Brennan Phillips (NS) and Alfred Crocker (ME).

On behalf of BC Shipping News readers, congratulations to the Class of 2017!

The Nautical Sciences Class of 2017: Front Row (L to R): Jeremy Botel, Ali Hassan, Brennan Phillips. Second Row (L to R): Phoebe Gilday, Erik Rothwell, Chris Cornwell, Sarah Bidner, Serguei Koutaitsev. Third Row (L to R): Matthew Mansley, Jude Lesack, Gordon Sawers, Luke Rodine.

Fourth Row (L to R): Jacob Walker, Colin Mackie, Robert Mackin-Lang.

NEWS BRIEFS

BIMCO brings Masterclass to Vancouver

A

s the world’s largest international shipping association, BIMCO has been at the forefront of global developments in shipping for over 110 years. And with members in more than 120 countries, the opportunity to have a Masterclass session hosted in Vancouver is indeed a special honour.

BIMCO’s Commodity Trading & Chartering Masterclass — at the Pinnacle Hotel Harbourfront from September 11 to 13 — will consider the commodity sale as a whole. The close links between the sale contract, the insurance contract and the carriage contract will be examined in presentations and case studies to see why and how the various documents which are customarily issued inter-relate.

Each aspect of the arrangement, such as the cargo sale, the cargo insurance and the carriage contracts will be considered both separately and in relation to the other relevant aspects, including: • Principles and common forms of commodity sale contracts.

• The relationship between the sale, insurance and carriage contracts.

• Principles of cargo and liability insurance.

• Shipowner versus charterer duties.

• Forms of contracts of carriage.

• The relevance of compulsory international conventions • The bill of lading as a receipt, evidence of contract of carriage and document of title.

• The transfer of rights and obligations between holders of the bill of lading.

• Letters of indemnity (LOI).

An impressive panel of experts is scheduled to present, including: • Richard Williams, partner with Ince & Co for 25 years and former chairman of the firm’s dry shipping business group specializing in carriage of goods, charter parties and P&I issues.

Williams is the co–author of the standard textbook “Limitation of Liability for Maritime Claims.”

• Professor Baris Soyer, Director of the Institute of International Shipping

and Trade Law at Swansea University; member of the British Maritime Law Association and British Insurance Law Association; and author of Warranties in Marine Insurance as well as an extensive list of articles published in elite journals such as Lloyd’s Maritime and Commercial Law Quarterly, Journal of Business Law, and more.

• Peter Grube, Head of Training and responsible for developing, co-ordinating and delivering BIMCO courses and seminars.

This Masterclass will be a key learning experience for all staff in operations and chartering as well as traders, importers/ exporters, port agents and brokers looking for a content specific course and wide-ranging overview of the chartering field, and the mechanisms driving the market. It is also well suited for finance, accountants and legal consultants who wish to broaden their knowledge base.

For more information on registration, visit www.bimco.org/training.

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INDUSTRY TRAFFIC

GCT announces new President and CEO

D

avid Emerson, P.C., O.B.C., Chair of the Board for GCT Global Container Terminals Inc. (GCT) has announced the appointment of Doron Grosman as President and Chief Executive Officer. Doron replaces Stephen Edwards, who served in the position since 2012. On behalf of the entire organization, Mr. Emerson extends GCT’s sincere thanks to Stephen for his service leading the company, and wishes him well.

Doron is widely known for his ability to drive company performance through the acceleration of revenue growth, optimization of costs and capital, as well as the delivery of superior customer value.

“We are confident that Doron’s operational focus and broad range of industry experience will lead GCT through the next transformational stage of growth, improving service delivery to our customers and value to our stakeholders,” said Emerson. “He will be responsible for all operations in both Canada and the United States.”

Doron is a seasoned, multi-industry executive with experience in a variety of C-suite roles at global Fortune 1000 companies as well as middle market private equity owned companies. Most recently from 2010 to 2017, he was an Operating Partner at New York-based Court Square Capital Partners, where he

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was a member of the Investment Team working with portfolio companies in a variety of service and technology industry sectors, on key strategic and operational initiatives.

Prior to this, Doron was President for Hexcel Corp., a public company that is a global leader in advanced composites technology and was previously also the President of Quebecor Magazine Printing Solutions. His leadership drove enhanced results throughout both of these organizations.

Doron started his career at Bain & Company, the management consulting firm, and then spent eleven years in various senior executive roles in General Electric (GE) both in the corporate office and at GE Plastics.

Following his career at GE, Doron was the de facto Chief Operating Officer for American Standard’s global Trane AirConditioning business.

In addition to more than 30 years of leadership experience, Doron holds a MBA from the Harvard Business School as well as a Masters of Science in Engineering from the University of Witwatersrand in South Africa.

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Ferries

NEWS BRIEFS

Two more Robert Alan Ltd. engineers earn accreditation

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obert Allan Ltd. is pleased to announce that two team members have earned their accreditation as Registered Professional Engineers with APEGBC (Association of Professional Engineers and Geoscientists of British Columbia).

Mr. Jianbo Zhang has been working with Robert Allan Ltd. since 2010 as a Naval Architect, specializing in structure design with ShipConstructor production design among his other significant job duties.

Prior to this, he worked with a variety of organizations including the Chinese site office of the Greek Marine Technical Bureau, Seabridge Marine Contractors, DBC marine, and Wuhu Jiangdong Shipyard in China. He obtained his education from Wuhan University of Technology with a B.Sc. (Naval Jianbo Zhang Architecture) from 1985 to 1989.

Mr. Ryan Ayres has been working with Robert Allan Ltd. since 2011 as a Naval Architect where he has been involved in all aspects of tug design. Ryan now focuses his time in a Project Management role.

Prior to this, he worked with Burness Corlett Three Quays Australia as a Consulting Naval Architect for the defence industry.

He obtained his education from University of New South Wales in Sydney, Australia with a Bachelor of Mechanical Engineering (Naval Architecture) from 2005-2008.

Established in 1930, Robert Allan Ltd. has grown to become a world-renown leading naval architecture firm, recognized for their many unique and specialized designs. The company recently celebrated the milestone of 1,000 tugs designed Ryan Ayres and delivered.

Building for the Vancouver Gateway’s Future On May 5th, GCT Deltaport welcomed the largest container vessel ever to call Canada, the 13,200 TEU Hapag-Lloyd “Antwerpen Express”. As the leading facility for big ships in the Port of Vancouver, our goal is to help our customers grow by providing them with the same superior level of service even as their cargo increases. Our recently completed $300 million Intermodal Rail Yard Reconfiguration project allows us to seamlessly handle the volume surges from bigger ships like the Antwerpen Express. We’re honoured to have been chosen as her first port-of-call directly from the Far East.

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September 2017 — BC Shipping News — 11

INDUSTRY INSIGHT

All that and a bit more Chris Wellstood Director of Marine Operations and Security, Harbour Master, Vancouver Fraser Port Authority

A

ccording to Wikipedia, a harbour master is “an official responsible for enforcing the regulations of a particular harbour or port in order to ensure the safety of navigation, the security of the harbour and the correct operation of the port facilities.” Now, put that into the context of the largest port in Canada — 640 kilometres of shoreline, 27 major marine cargo terminals with over 3,100 deep-sea vessel visits annually and don’t forget about the domestic tug and barge operations, the SeaBus, recreational vessels and one of the largest float plane airports in the world.

According to Chris Wellstood, Director of Marine Operations and Security as well as Harbour Master for Vancouver Fraser Port Authority, the job is “all that and a bit more.”

BCSN: Describe the steps in your career that have led to your current position.

CW: I was trained as an officer and an engineer in the Netherlands and started my maritime career sailing all over the world on semi-submersible, heavy-lift deep-sea vessels. I later moved to the dredging and offshore industries where I became a dynamic positioning officer on the SSCV Thialf, one of the largest selfpropelled floating crane vessels in the world, capable of tandem lifting 14,200 tons.

While I enjoyed working at sea and travelling to many different ports around the 12 — BC Shipping News — September 2017

Photo: BC Shipping News

...it’s difficult to answer the question about what a Harbour Master does. Really, the question should be framed more toward what is the role of a port authority... world, I eventually came to the decision that I didn’t want to be a seafarer for the rest of my career so I went back to school.

I obtained my Bachelor of Science Degree in Maritime Sciences from the Maritime Institute “De Ruyter,” HZ University of Applied Sciences in Vlissingen, the Netherlands and then received a Master of Science Degree in Maintenance and Safety Management from the University of Bradford in the U.K. In the late 1990s, I started as a management trainee with SMIT International, a division of Boskalis, one of the largest dredging and hydraulic engineering companies in the world. I worked within marine salvage, marine transportation, harbour towage, and oil and gas terminal markets all over the world and in various management positions. My responsibilities usually included looking at optimization of operations, including efficiency improvements and restructuring.

My last position was as General Manager for SMIT’s operations on the West Coast of Canada. This was a few years after SMIT had acquired RivTow and I was brought in to bring the business and assets more in line with SMIT’s corporate profile. That included selling off

many assets to clear the way for a focus on harbour towage. We also bought Minette Bay Ship Docking in Prince Rupert during that time and, again, my job was to align the assets and operations.

I joined Port Metro Vancouver (as it was known at the time) in 2011 as the Deputy Harbour Master. I enjoyed the complexity of the function, both internally and externally. No two days were the same and every day was a new challenge. I became Harbour Master and Director of Marine Operations and Security in 2013 and it was during this time that I obtained my Master of Business Administration from Simon Fraser University.

BCSN: Could you describe your responsibilities both as Director and Harbour Master?

CW: As the Director, I have four distinct areas of responsibility: marine operations, security, emergency management and safety. Under the Canada Marine Act, a port authority also requires a harbour master who governs port practices and procedures and has responsibilities related to the safety of navigation and marine operations within the port’s jurisdiction.

The Port of Vancouver is the largest port in Canada. The Port Authority’s navigational jurisdiction covers 640 kilometres of shoreline from Point Grey to Point Atkinson and everything east of that to Port Moody. Our jurisdiction also includes the north, middle and main arms of the Fraser River from Sandheads up to Fort Langley and then up to Pitt Lake. We also oversee Tsawwassen and Deltaport through to the U.S. border.

I should note that False Creek is not included — that was handed over to the City of Vancouver a number of years ago.

Within my department, I have 35 staff — four managers (two for marine operations, one for security and one for safety and emergency response) and they each have their own respective teams as well as various contractors for activities like dredging or security.

BCSN: So tell me, what does a harbour master do? [At this point in the interview, Wellstood pulls out four large plastic folders, each with at least two dozen files or more.]

CW: These are some of the current active files — for example an upcoming Delta emergency exercise, waterside

Photo: BC Shipping News

Chris stands with patrol officers Wayne Leslie (left) and Jeffrey Tengku (right).

security framework, contracts for dredging, Movement Restricted Area (MRA) procedures, night-time transit studies, recent incidents…it never ends.

You can see it’s difficult to answer the question about what a harbour master does. Really, the question should be framed more toward what is the role of a port authority — and that is to facilitate Canada’s trade in a safe, efficient, and environmentally sound manner with consideration for local communities.

We’re here to ensure deep-sea vessels are able to come into the port, dock, transfer their cargo (either on or off) and manoeuvre out, all as safely and efficiently

as possible with minimal impact to the environment.

While we’re doing that, we have to account for all of the domestic traffic — tug and barges, fishing vessels and recreational craft. We also have one of the largest float plane airports in the world, the SeaBus and a heliport.

It’s our responsibility to ensure safe navigation. To assist with this, the main document that covers all of the practices and procedures for the port is the Port Information Guide — it contains everything you would need to know about operating within the jurisdiction of the Port of Vancouver. For example, port

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Photo: Dave Roels

INDUSTRY INSIGHT

Working with industry and other stakeholders is a key part of the role of a harbour master. Above, Chris participates in the Chamber of Shipping’s Navigation and Pilotage Committee meeting.

operations and services, navigation, safety and security, and nautical services.

An integral part of the Guide is the MRA procedures. These provide for more detailed information for moving within constrained areas — for example, we have MRAs for the First Narrows (MRA-1) and Second Narrows (MRA-2)

and we’re also working on one for the Fraser River (MRA-4). Each outlines specific rules and regulations as well as details like bridge clearance heights, tide data and requirements that will facilitate safe passage within that constrained area.

I like to think of the port as a small town that is continuously growing. At

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Photo: Dave Roels

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first, there are no traffic lights or parking regulations because there’s enough space for everyone to go about their business.

But as traffic increases and becomes more complex, you need to implement rules to govern where traffic can go and at what times. It’s a port authority’s job to make sure that traffic can flow smoothly.

BCSN: You also have all of the structures surrounding the port — the shipyards, terminals, etc. Do you get involved in the foreshore activities?

CW: That depends on the property.

Some land is owned by the port and other areas are privately held. For example, Vancouver Wharves is private land but Centerm is port-owned and leased to an operator, in this case, DP World. In cases where the land is privately owned, the interface between the water and the land is leased by the operator through the Port Authority. So there’s always a relationship.

BCSN: What sort of trends do you see in terms of port activity?

CW: Within the jurisdiction of the Port of Vancouver, we see about 3,100 deep-sea vessels on an annual basis.

What’s really interesting is that this number has been constant over the last 20 years yet we’re moving more cargo than ever before. In 1996, we moved 70 million metric tonnes of deep-sea cargo, and in 2016, we moved 110 million metric tonnes — that tells you that an additional 40 million metric tonnes of cargo were moved with the same number of vessels. So definitely, the vessels are getting bigger. That’s across the board — container ships, cruise ships, bulk carriers, everything except tankers which continue to be Aframax-size.

The other trend is the increasing role technology plays in helping us manage traffic. Many ports now have marine domain awareness systems which provide for situational awareness within their jurisdiction, but now we’re seeing this expanded to an integrated domain management system. While the foundation is the domain awareness system, management modules are layered on top of it to provide extra segments of information and enable active management of activities within the jurisdiction of responsibility.

BCSN: How do these trends impact on the port and operations?

CW: As vessel size increases, they start to push the boundaries of the navigation envelope. Issues like minimum clearances under bridges or under the

INDUSTRY INSIGHT What’s really interesting is that this number [of vessels] has been constant over the last 20 years yet we’re moving more cargo tonnage than ever before. keel come into play and areas that were once two-way shipping channels now become one-way channels.

Consider cruise ships, for example.

Some of the larger cruise vessels need lower tides to ensure they have enough clearance under the Lions Gate Bridge so we work closely with the cruise industry to see what they can do on their end to reduce the height of the ship (lowering masts, etc.) and from our end, we look for ways to maximize the navigational envelopes while maintaining appropriate safety margins. This could mean having to time their arrival with the tides which can get complicated if they’re following a schedule to keep their itinerary.

The Port Authority’s integrated domain management system is an inhouse proprietary system which allows us to go beyond simple awareness and expands into data logging and data mining to provide a greater ability for us to manage traffic flow and improve efficiency in a safe manner. It’s no longer just about being aware of what happens within the domain but also about managing what happens by using the data being gathered.

The system allows us to manage large and complex amounts of data — things like an electronic system of scheduling and identifying which vessels require certain tide windows or will need tidal assist.

BCSN: And, of course, in addition to traffic management and marine operations, you still have the issues of safety, security and emergency response. Could you describe the functions within those portfolios?

CW: For safety, security and emergency response, we have our patrol boats and harbour patrol officers on the water seven days a week and our operations centre is staffed 365/24/7. We also have a security patrol throughout our jurisdiction and we work very closely with local law enforcement and emergency responders to ensure effective management of any issues that arise.

That’s the one thing that I should emphasize — and it’s just as applicable to marine operations as to the other three portfolios — the collaboration and importance of relationships with other agencies. The Port of Vancouver intersects with 16 municipalities, a number of First

Nations groups and numerous federal government departments. For example, there is the Canadian Coast Guard (CCG), Transport Canada, the Vancouver Police Department’s Marine Detachment, Delta Fire Department, RCMP, numerous local police, fire and ambulance detachments, Fisheries and Oceans Canada, Canadian Border Security Agency, Environment Canada, Pacific Pilotage Authority, the Fraser River and BC Coast pilots, Western Canada Marine Response Corporation, the Chamber of Shipping, the Shipping Federation of Canada, the Council of Marine Carriers and many more. It makes for a very complex environment where communication becomes a key priority.

BCSN: What role does your department play within that bigger picture?

CW: We work very closely with each organization and play a co-ordinating role, providing situational awareness and enabling information flows.

There are a lot of moving parts and a lot of relationships that need to be fostered and maintained. For example, the Marine Emergency Response Coordination Committee, co-hosted by ourselves and the CCG, meets on a regular basis to bring together first responders and other stakeholders who have a role to play in emergency response.

We regularly attend meetings like the Pacific Marine Advisory Review Panel, the Navigational Aids Committee, the Western Marine Community Coalition and the CCG’s Western Marine Advisory Board Committee to name a few. We also work closely with the Canadian Hydrographic Services (CHS) — for example, we’re installing tide and current gauges in co-operation with the CHS and the live data is made available to our integrated domain management system and to the Pilots Personal Pilotage Units through AIS. Navigational aids are another example — ultimately, they are the responsibility of the CCG but we work with them on new navigation aids to ensure the safety of navigation within our jurisdiction.

September 2017 — BC Shipping News — 15

INDUSTRY INSIGHT All of our activities are geared toward achieving the vision of the Port Authority which is to be the world’s most sustainable port. There are three over-arching drivers which guide this: 1) economic prosperity through trade; 2) a healthy environment; and 3) thriving communities. Within these three drivers, there are 10 areas of focus and 22 statements that define success. For example, under the driver of economic prosperity, there is the focus on competitive business; and within that focus, initiatives are geared toward continuous improvement in efficiency and reliability.

BCSN: How does your department factor into overall efforts of mitigating impacts on the environment?

CW: The Port Authority has a very robust environmental management plan that is led by our environment team and we assist where ever we can. From our perspective, management of the environment needs to focus on prevention. Our

About Chris Wellstood

C

hris Wellstood is the Director of Marine Operations & Security with the Vancouver Fraser Port Authority and is responsible for all marine operations, security and emergency response activities with the Port of Vancouver. Besides his role as Director, Chris also acts as the Harbour Master and provides leadership and guidance in all facets of port marine logistics and operations; ensuring secure, safe, efficient freight flow and environmental protection within the port authority’s jurisdiction.

Chris started his career as a Maritime Officer sailing on semisubmersible, heavy-lift, deep-sea vessels and later moved to the offshore industry where he became a Dynamic Positioning Officer on the largest self-propelled crane vessels in the world.

After getting his hands “wet and dirty” in the marine environment, Chris moved toward the management side of the marine business, starting out as a Management Trainee with SMIT International, a division of Boskalis, one of the largest dredging and hydraulic engineering companies in the world, operating in the marine salvage, marine transportation, harbour towage and oil and gas terminals markets.

In the 15 years with SMIT, Chris was deployed in many different management challenges around the world and moved on from management trainee through various management positions to the position of General Manager. His last position with SMIT was as General Manager of SMIT Marine Canada Inc. in Vancouver, where he was responsible for all operational and commercial aspects of SMIT’s operations in Canada.

Chris holds a Bachelor of Science Degree in Maritime Sciences from the Maritime Institute “De Ruyter,” HZ University of Applied Sciences in Vlissingen, the Netherlands; a Master of Science Degree in Maintenance and Safety Management from the University of Bradford in the United Kingdom; and a Master of Business Administration Degree from Simon Fraser University.

Chris lives in Vancouver with his wife Caroline, daughter Elise and son Eric.

16 — BC Shipping News — September 2017

rules and regulations are all geared toward ensuring the safety of operations and hence the protection of the environment. If something did happen, then it’s the relationships we have that facilitate a holistic response.

BCSN: Chris, thanks so much for such an enlightening interview. Any final words?

CW: The common denominator for all of our activities is to ensure the safety, security and efficiency of port operations.

To do this, it takes a lot of collaboration — both internally with other departments in the Port Authority as well as externally with so many stakeholders and organizations that contribute to this over-riding goal. I used the analogy of a small town earlier — and like any town, success depends on working together toward common goals. I feel very fortunate to be a part of the great team that contributes toward that success.

BCSN

About the Port of Vancouver and Vancouver Fraser Port Authority

T

he Vancouver Fraser Port Authority’s role is to responsibly facilitate Canada’s trade through the port. This involves working together with port terminals and tenants to ensure the efficient and reliable movement of goods and passengers, integrating environmental, social and economic sustainability initiatives into all areas of port operations.

Located on the southwest coast of British Columbia in Canada, the Port of Vancouver extends from Roberts Bank and the Fraser River up to and including Burrard Inlet. The port is Canada’s largest, supporting trade with more than 170 economies around the world.

With the most diversified range of cargo of any port in North America, the port operates across five business sectors: automobiles, breakbulk, bulk, container and cruise. In 2016, 136 million tonnes of cargo moved through the port, valued at $200 billion. Almost 95 per cent of the port’s total volume serves Canadian import and export markets.

Many different enterprises operate in the port including cargo and cruise terminals, industries requiring tidewater access, shipyards, tugboats, railways, trucks, shipping agents, freight forwarders, suppliers, builders, and administrative agencies.

The port is home to 27 major marine cargo terminals, three Class 1 railroads, and a full range of facilities and services to the international shipping community. Deep-sea terminals provide Super Post-Panamax capacity and extensive on-dock rail facilities with virtually no draft restrictions. Freshwater facilities offer integrated services for the automobile and coastal forest industries, and for short-sea shipping. The Canada Place cruise terminal at the Port of Vancouver serves as homeport for the Vancouver-Alaska cruise industry.

For more information: www.portvancouver.com

HISTORY LESSON

A brief history of kayaks

By Lea Edgar Photo: Dave Roels

Librarian & Archivist, Vancouver Maritime Museum

Although the traditional kayak design has largely been replaced with modern imitations, there are still a dedicated few that build the classic skin and frame vessels.

T

he light-weight, manoeuvrable, and versatile design of the kayak makes it a popular choice for recreational use in Canada. With roots stretching back thousands of years in the Arctic, this little vessel lives on in various modern designs. Its popularity is a unique example of the Inuit people’s creativity and ingenuity.

The Inuit and Aleut peoples were the first to build kayaks. The earliest example we have dates back 2,000 years ago, however the vessel design likely dates back much farther. It is probable that the Siberian ‘umiak’ design came first. This boat was intended to carry both people and cargo, had an uncovered deck, and was propelled by several short paddles. Although umiaks were sometimes used for hunting, at some point a smaller, more manoeuvrable hunting and fishing boat was constructed which would become the kayak we recognize

today. It evolved to become an essential hunting tool for the Inuit people.

The kayak, or ‘qajaq’ as it is called in Greenland, is used for sealing, whaling, and fishing in the Arctic. Young Inuit boys would spend a great deal of time learning how to use a kayak properly.

They would work on their balance, manoeuvring the vessel, and rolling in case of capsizing.

For the Inuit people, there were two basic types of kayak. One type was built using driftwood, and the other, whalebone. Animal skins (usually sealskin for its waterproof quality) were stretched over the frames. Whale fat was used to help keep the vessel watertight. To assist with buoyancy, seal bladders filled with air were placed in the fore and aft sections. Kayakers sometimes also wore a sealskin parka or cape called a ‘tuilik’ that was attached to the rim of the hatchhole, essentially making the entire vessel

An example of an Inuit kayak, 1929. “Eskimo Kayak at Port Burwell” by Richard S. Finnie / Library and Archives Canada / e002342624.

18 — BC Shipping News — September 2017

watertight. This tightly covered deck and increased manoeuvrability made the kayak the superior hunting vessel to the umiak, although the umiak was still used for travel and transport.

The design of the kayak depended on its owner. Typically, the length was three times the paddler’s arm span. The width was measured as the paddler’s hips plus two fists. The kayak’s design also differed slightly depending on the region.

In the Bering Straight, the vessels tended to be wider and shorter which allowed for more storage room for game and supplies.

It was also more stable on rough water.

Aleut kayaks tended to be slenderer and longer to accommodate for long distance travel and speed. Construction of kayaks was a job for both men and women. Men would construct the frame and women would sew and attach the skins.

The incredible kayak design is thought to have spread from the Arctic by the Russians. They first made contact with the Inuit people of the Aleutian Islands in the 1740s. The Russians took notice of the Inuit’s proficiency in hunting seals and sea otters — whose fur held a high value — and adopted the vessels for themselves. But when furs fell out of favour, so did the kayak. The Inuit began to lose touch with their traditional ways and the kayak almost disappeared from history. Only a handful of people retained the skills necessary to construct the unique vessel.

It was a Scotsman in 1845 who, in some ways, brought the kayak back to life. He designed his own vessel based on early sketches of Inuit kayaks. His boat, which he called the Rob Roy, inspired other enthusiasts to create their own for paddling around the seas of Northern Scotland. If it weren’t for this hobby, kayaks may have died out entirely.

In the early 1900s, people began toying with and improving the kayak’s design.

Hans Keppler, a German kayak enthusiast, designed a foldable kayak in 1905.

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Two kayaks before the skin covering was applied, 1949.

“Three Inuit men examining the frame of a kayak” by Richard Harrington / Library and Archives Canada / PA-144043.

He made the frame from aluminum poles and covered it with rubberized cloth. Then, in the 1920s, two distinct classes of kayaks emerged: river kayaks and ocean kayaks. River kayaks were short and wide and designed for navigating white water while ocean kayaks were longer and narrower for open water.

By 1936, river kayaking was a recognized Olympic sport. By the 1960s, recreational kayaking became popular. It was then that the first fibreglass kayak was introduced. In 1973, the first plastic kayak was made which enabled the cheap and fast production of recreational kayaks. This invention created an explosion of the kayak’s popularity in the 1970s as affordable models were made available to the masses.

Although the traditional kayak design has largely been replaced with modern imitations, there are still a dedicated few that build the classic skin and frame vessels. Nonetheless, it should be remembered that we have the Inuit people of the Arctic to thank for this invention. Without their resourcefulness and innovation, we would not have such a wonderful vessel to enjoy today.

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

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PORTS

Sustainable development of B.C. ports: Leadership perspectives

By Captain Stephen Brown West Pacific Marine

I

...how fortunate we are to have such a group of talented and dedicated CEOs who literally live and breathe their jobs against a background of major expectations...

It is against this background that I had the opportunity to sit down with Robin Silvester, President & Chief Executive Officer of Vancouver Fraser Port Authority (VFPA); Don Krusel, President & Chief Executive Officer of Prince Rupert Port Authority (PRPA); Bernie Dumas, President & Chief Executive Officer of Nanaimo Port Authority (NPA); Ian Robertson, Chief Executive Officer at Greater Victoria Harbour Authority (GVHA); and Zoran Knezevic, President & Chief Executive Officer of Port Alberni Port Authority (PAPA).

The diversity of our ports is well known, but perhaps less well known is that the ports governed by the Act are jointly represented by the Association of Canadian Port Authorities (ACPA) which was founded in 1958 and which is based in Ottawa. ACPA is widely recognized as the very capable Association

for the “advocacy and advancement of the Canadian Port Industry.” It is worth noting that Vancouver has been selected to host ACPA’s annual conference which will take place from September 18 – 20, 2017.

It should further be noted, that following a long struggle for local control, GVHA is not governed by the Canada Marine Act but instead was established in 2002 as a non-profit society. Today, the GVHA is governed by its own constitution and bylaws overseen by eight member agencies: Esquimalt Nation, Songhees Nation, City of Victoria, Victoria Esquimalt Harbour Society, Capital Regional District, Victoria Chamber of Commerce, Township of Esquimalt and Tourism Victoria. This is a complex arrangement which has long challenged those taxed with its implementation but which, as you will gather, is finally showing solid results.

Photo: Dave Roels

n meeting with the leaders of our primary ports, Vancouver, Prince Rupert, Nanaimo, Victoria and Port Alberni, one is quickly reminded of how fortunate we are to have such a group of talented and dedicated CEOs who literally live and breathe their jobs against a background of major expectations from government, regulators, users, environmentalists and service providers.

It is therefore perhaps worth reminding ourselves of the requirements of the Canada Marine Act which was introduced in 1998. These are summarized in just 187 words: • To implement marine policies that provide Canada with the marine infrastructure that it needs and that offer effective support for the achievement of national, regional and local, social and economic objectives and will promote and safeguard Canada’s competitiveness and trade objectives.

• To promote the success of ports for the purpose of contributing to the competitiveness, growth and prosperity of the Canadian economy.

• To base the marine infrastructure and services on international practices and approaches that are consistent with those of Canada’s major trading partners in order to foster harmonization of standards among jurisdictions.

• To ensure that marine transportation services are organized to satisfy the needs of users and are available at a reasonable cost to the users.

• To provide for a high level of safety and environmental protection.

• To provide a high degree of autonomy for local or regional management of components of the system of services and facilities and be responsive to local needs and priorities to manage the marine infrastructure and services in a commercial manner that encourages, and takes into account, input from users and the community in which a port or harbour is located.

20 — BC Shipping News — September 2017

Robin Silvester, President and CEO, Vancouver Fraser Port Authority.

PORTS Tasked with managing Canada’s largest port by a country mile, Robin Silvester and the VFPA executive team are very much in the forefront of leading by example and meeting a close to impossible spectrum of expectations. To this end, there has to be a vision and in the case of VFPA, this is manifested in the Port 2050 initiative, launched seven years ago but which is regularly reviewed for relevance. Of four potential scenarios originally identified, The Great Transition, a rapid transition to a post-industrial/post-carbon model, continues to be the outcome to put money on but as Robin was keen to point out, there is a major new factor rearing its head in the form of trade protectionism. It remains to be seen how far this will go given the strength of forces pressing for the expansion of free trade but there are undoubtedly many CEOs who are reflecting on the protectionist rhetoric which is currently all the rage.

When it comes to shorter term issues, Robin spares no effort to repeat his long-held view that the most critical issue for Gateway growth and future port development is access to industrial land.

As he said during his address to the VFPA Annual General Meeting in May, “companies that need warehouses and distribution centres are struggling to find suitable land in the Lower Mainland and are being forced to locate elsewhere, far away from the port.” Indeed, a recent Commercial Real Estate Service Report has concluded that the Port of Vancouver is facing the tightest access to land availability of any North American port.

By way of providing concrete examples, Robin points to the decision by Home Depot to set up a distribution centre in

Photo: Stephen Brown

Vancouver Fraser Port Authority

Shore power hook up at Canada Place.

Calgary and a decision by IKEA to do likewise in Tacoma, in the latter case with consequential loss of Canadian employment opportunity, more trucks on the road and increased logistical costs with the inevitable environmental implications. With one in four jobs in B.C. being tied to the availability of industrial land at wage rates that are 50 per cent higher than the national average, Robin is understandably a dog on a bone which it comes to this issue, especially given that a recent analysis has estimated that the Vancouver Gateway generates 115,000 jobs across the country.

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PORTS ...construction of the first, entirely new grain export terminal in the Port of Vancouver for half a century is now underway, namely the G3 project...

Robin is no less passionate when it comes to a discussion around the development of infrastructure. Despite controversy, previous on-time and on-budget infrastructure development successes completed in 2013/14 have only served to underline the need to do more in addressing conspicuous bottlenecks which are constraining port efficiency, costing mega dollars and damaging our reputation. The Gateway Transportation Collaboration Forum (GTCF) consisting of the Federal and Provincial governments, Translink and the Greater Vancouver Gateway Council has therefore been hard at work over the past couple of years in an effort to prioritize the next round of projects for funding. Key to success will likely be based on a similar shared funding model to that previous.

The mega infrastructure project on the books right now is of course Roberts Bank’s T2, an entirely new and technologically

advanced container terminal which, if all goes to plan, will be commissioned in the late 2020s. The project continues to be subject to a very thorough Canadian Environmental Assessment Authority review, initially commissioned in January 2014 and which was anticipated to be a two-year process but which in reality seems likely to require about four years on account of some 35,000 hours of field studies alone to work through. Despite a four per cent negative blip in container throughput in 2016, VFPA continues to advocate strongly for the T2 project, a view seemingly vindicated by a rebound of eight per cent in throughput for the first half of 2017.

With respect to bulk cargoes, VFPA is very encouraged by the continuing strong throughput of grain exports which last year reached 21.8 million tonnes.

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of the first, entirely new grain export terminal in the Port of Vancouver for half a century is now underway, namely the G3 project on what was formerly known as Lynnterm West. In addition, Parrish and Heimbecker is well advanced with proposals for a new state-of-the-art grain terminal at Fraser Surrey Docks.

With these major additions to handling capacity, Robin is hopeful that the traditional back-ups of grain loaders and railcars can be resolved once and for all but feels there is still room for the grain industry to take a leaf out of the potash exporter’s book when it comes to tight scheduling supported by a dedicated fleet of railcars.

Turning to the Canada Transportation Act Review, VFPA is supportive of many aspects, including that of unhelpful regulatory issues such as the freight cap on movement of grain by rail if the rail companies are to be motivated to invest in improved service levels to the sector. On a more cautious note, VFPA believes that care needs to be taken with the review of the Pilotage Act of 1972 given that there are many advantages gained from a regionally administered service. VFPA is not at all sold on the argument, advanced by some, for a single national structure.

No interview of this nature can avoid a discussion on the environmental impacts of a large port such as Vancouver but Robin is proud of VFPA’s leadership record. He points out that Vancouver was one of the first ports to introduce a mandatory ballast water exchange program, way ahead of the IMO Ballast Water Management Convention which, following ratification in 2016, is now being phased in to require the mandatory treatment of ballast water. VFPA is equally proud of the evolution of the Eco-Action Program, along with the ECHO program in protection of the Southern Resident Killer Whale, which has led to vessel slowdown trials in Haro Strait to allow for the evaluation of reduced noise levels. On a smaller localized scale, an investment like the Brighton Park Shoreline Habitat Restoration program is resulting in a return of the first juvenile Chum Salmon.

Of equal importance to VFPA is the leadership role and environmental success of shore power at Canada Place used by cruise ships, an initiative which is soon to be emulated by investment in shore power infrastructure at both Deltaport and Centerm container terminals. At

TERMINALS

PORTS the same time, VFPA is keenly aware of global LNG propulsion developments and is therefore well advanced in a review of the business and environmental case for investment in an LNG bunkering infrastructure.

In recent times, VFPA has faced questions related to its long-term commitment to the cruise industry. However, Robin is adamant that the port values and is committed to the future of the industry irrespective of the practical realities that are generated by growth in the size of cruise ships serving the Alaska trade. To this end, VFPA recognizes that Canada Place was never designed to handle the turnaround of three large cruise ships in 10 hours and is therefore open to a conversation with other parties as to the options for development of a new facility

24 — BC Shipping News — September 2017

to serve those cruise vessels that face restricted access to Burrard Inlet.

Looking forward, Robin is proud of the fact that despite many doubters, the Container Vessel on Time Performance Program is proving its worth with $1.87 million having been paid out in 2016 to those qualifying for reward. The program continues to be looked upon by VFPA as an equally essential ingredient to achieving container terminal fluidity as the major investments in technology and data collection which are feeding the Truck Licensing System and container gate online monitoring. At some time soon, technology will also be harnessed to develop a Vessel Traffic Management System in order to further enhance the management of growth in size and volume of vessel traffic.

While never one to play down the many challenges, Robin remains entirely optimistic for the future of the Vancouver Gateway and the ability of VFPA to provide effective leadership.

Prince Rupert Port Authority

In the words of Don Krusel, President and CEO of the Prince Rupert Port Authority, there are three pillars and assumptions on which the port bases its forward strategy: • Trade will continue to grow • Build on early successes • Plan for the long term During our discussion, I was constantly reminded that all roads lead back to these principles beginning with a discussion centred on capacity for growth.

Rather than add and build capacity on a project-by-project basis, Don explained that PRPA is taking a long-term view in recognizing that trade will continue to grow and thereby place demand on West Coast capacity. Prince Rupert therefore begins from the premise that there is a need to supply as much capacity as possible by optimization of existing port lands. A review of current property holdings has therefore concluded that the port can achieve a throughput of at least 100 million tonnes of bulk and general cargo plus at least four million TEUs of container handling capacity within existing land holdings and is therefore methodically planning as to how the infrastructure will be developed over the coming years to facilitate this reality. Details of what common user infrastructure needs to be built in the form of rail corridors, connector roads and logistics parks in order to support and facilitate this level of capacity throughput is the exciting challenge.

Already today the Prince Rupert Rail, Road, Utility Corridor (RRUC) has three in-bound tracks and two outbound tracks but the plan is ultimately to expand this to 13 in-bound and 11 out-bound.Plans are also well advanced for a new connecting, port-controlled road along with CN rail tracks between Fairview Container Terminal and Ridley Island, representing an investment of $90 Million by PRPA. The significance of the Connector Road is that it will link Fairview directly to a future 150-200-acre logistics park and thus create a seamless connection between the container terminal and the park with

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PORTS

Don Krusel, President and CEO, Prince Rupert Port Authority.

no limits on the number of trailers or on weights. Fairview operator DP World is lending its considerable expertise to PRPA in the development of the logistics park.

Much to the chagrin of those of us who remember it as a pulp, lumber and bulk cargo loading dock, since inauguration in 2007, the Fairview Container Terminal has arguably been the port’s star attraction. However, there has been no sitting back and despite some frustrating delays, Fairview Phase 2

expansion construction is on schedule to allow for a late August 2017 opening ceremony.

Emphasizing serious intent, Fairview took delivery of three new Malacca-max dock gantry cranes in May this year, each crane having a horizontal reach of 25 containers which effectively promotes the terminal to being capable of handling the largest container vessels afloat once the expansion project is complete.

With eight per cent growth in throughput in 2016, filling the new capacity which elevates Fairview from a theoretical 850,000 TEU to 1.35 million TEU looks to be the least of the challenges with COSCO operating two weekly services on behalf of the Ocean Alliance, Maersk and MSC operating a weekly service as the 2M Alliance, but allocation also having been granted to OOCL, Evergreen, CMA CGM, APM and Yang Ming. In addition, ZIM Line has a slot sharing agreement with COSCO. Of note, the port relies on highly supportive, well-trained ILWU labour of which 35-45 per cent is aboriginal, a fact that Don is particularly keen to promote.

But, as he patiently explained, it doesn’t stop there. PRPA is working with DP World on Phase 2B — expansion to both north and south of the existing terminal which will increase handling capacity to around 2.45m TEU by 2022.

Of course, it’s not all about containers and much of the focus in the past five years has been on a plethora of LNG export projects. Sadly, the project considered to the front-runner, namely Pacific Northwest LNG, was cancelled. However, other projects highlighted are the proposed AltaGas propane export plant situated in proximity to Ridley Terminals International

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26 — BC Shipping News — September 2017

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Inc. (RTI) which proposes to share the RTI ship dock. Also of note, Watson Island which is controlled by the City of Prince Rupert is working with Pembina to develop an LPG export facility.

Turning to the cruise sector, which Don readily acknowledges the port has struggled to attract in recent years, there is a turnaround in fortunes. PRPA has identified a niche market in smaller ships which are more easily manageable in terms of eco-tourism opportunities and in the number of visitors at any one time to the city. To this end, 25 cruise vessel calls are scheduled for 2017 with an estimated count of 15,000 passengers. Also contributing to growth are log exports serviced by Tidal Transport and Trading which also operates the nearby Tidal Coast Terminals log handling and container stuffing logistics facility. Not to be overlooked, wood pellet exports were up by 22 per cent to 896,000 tonnes in 2016 and continue to thrive.

Last year was also the third busiest year on record for grain exports with only coal succumbing to a decline on account of weak global markets. Of some

Prince Rupert’s Fairview Terminal takes delivery of new Malacca-max gantry cranes in mid-May.

significance however, Ray-Mont Logistics has announced the development of an integrated logistics and container loading operation for agricultural products at the south end of the Ridley Island Industrial Site on the new RRUC. Operations are scheduled to begin in September this year on the dedicated 15-acre site. Meanwhile, CT Terminals is operating a second site

on the rail corridor for the purpose of stuffing forest products into containers which are then trucked to Fairview.

On the environment, I know well from my years with the Chamber of Shipping that PRPA has made enormous efforts to be a good neighbor, something that Don likes to describe as “being ahead of the issues before they become a problem.”

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PORTS Examples are many but to name but a few, Don likes to reference the port’s marine mammal program in protection of the Northern Resident Killer Whale, the continuous monitoring of air and water quality along with noise levels and a determined pro-active approach to engaging port users in the Green Wave Program which resulted in 164 vessels receiving a discount on Harbour Dues in 2016. All this is complimented by the development of a new Port Operations Centre including an investment in $2 million of new technologies over and above recent investments in new navigational aids and full coastal radar coverage.

When it comes to the review of the Pilotage Act, Don takes the view on behalf of PRPA that there must be a convincing demonstration that alternatives to the current pilotage system would be of meaningful value before rushing in to make changes. Also, while PRPA has not formulated a formal opinion on potential changes in port governance, some options could provide greater commercial discipline, improve decision making and open up additional sources of capital and funding for infrastructure projects.

With respect to the proposed North Coast moratorium on the movement of crude and other oils, PRPA has made known its views to Transport Canada, the main concern being that of policy creep whereby the list of excluded products expands beyond just crude and bitumen and impacts existing or potential projects.

Overall, a very positive discussion and it was good to find Don as enthused today as when I first met him on the hatch covers of a Gearbulk malt loader on a tough night in Prince Rupert 20 years ago.

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Photo: BC Shipping News

One of 242 cruise ship calls in 2017, the Carnival Legend berths at Ogden Point, Victoria.

Greater Victoria Harbour Authority

As I quickly concluded when we met, if enthusiasm alone was a guarantee of success, Ian Robertson, the CEO of the Greater Victoria Harbour Authority, would today be running a mega port. Following on from his senior roles with the highly successful Rocky Mountaineer, Tourism Association of BC, not to mention six years with the Vancouver Board of Parks and Recreation, Ian is tailor-made to lead GVHA which he joined in 2015.

Ian is acutely aware that his challenge is to run a harbour economy, based primarily on tourism. He therefore sees that the exploitation of a unique harbour with 100 years of history in moving people, planes, ships and ferries combined a deep understanding of the needs and expectations of modern tourists will be the key to success. Having said that, the diversity of the role with more than 100 commercial licences and sales agreement with local businesses, tour operators and corporations across diverse multi-use facilities requires a realistic business, rather than a pure not-for-profit approach. In this he is determined to overcome bureaucratic barriers to growth and while GVHA currently projects an operating surplus of $2.5 million in 2017, he sees the necessity to improve this to the $3.0-3.5 million range in the next two to three years. It is also worth noting that GVHA pays the City of Victoria around $1 million in direct taxes.

So how to move forward? Ian’s philosophy is simple but direct, take a firm but friendly approach in building consensus, mitigating port impacts and celebrate the port’s strengths. By way of example, Ian’s promotion of the benefits of the cruise industry is a good example of a fresh approach — an unapologetic and enthusiastic drive to harness the benefits of existing business while seeking a path to future growth. The numbers are impressive as Victoria takes full advantage of cruise industry growth in Seattle, positioning itself as the preferred Canadian port of call to satisfy Jones Act obligations. A total of 242 cruise ship calls are scheduled for 2017 including the largest ship serving the Alaska

PORTS Photo: BC Shipping News

market, Explorer of the Seas. This number is forecast to rise to more than 250 calls in 2018 including the new mega cruise ship, Norwegian Bliss and Royal Caribbean’s Quantum Class in 2019.

Ian’s concern however, is that Victoria has long taken the cruise industry for granted. He rolls off the numbers: Cruise Canada annual impact is $3.2 billion with $2.2 billion of that in B.C. alone including $130 million local impact in Victoria. Ian is determined to build on this with active promotion of pre-season and post-season receptions for stakeholders but also an ambitious plan to offer Victoria as a home port by 2020. To this end, GVHA along with 20 partners had their own booth at Seatrade Cruise Global in Fort Lauderdale this year, something that will be repeated in 2018.

Ian is realistic as to the challenges of home port status and is therefore strongly supportive of Bill C-23, the Preclearance Act, which would allow for significant expansion of U.S. Customs and Border Protection operations in Canada.

Inevitably, every objective needs a plan to get there and predictably, Ian

Ian Robertson, CEO, Greater Victoria Harbour Authority.

has a plan. Following years of consultation, GVHA’s Ogden Point Master Plan was submitted to the City of Victoria in December 2016. In moving this forward, successful rezoning will be critical as the plan seeks to optimize the under-utilized asset of Ogden Point but also support the desire of cruise lines to grow the Alaska trade which is seen as a safe destination catering to traditional western

cruisers but also a growing volume of Asian cruisers.

For expansion plans to materialize, Ian is keen to recognize the key players that can help him make it happen, not least the Western Stevedoring management team at Ogden Point and exemplary cooperation from both ILWU 508 and 514.

But it doesn’t stop there as Ian is quick to praise the roles of tour guides, bus drivers

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PORTS ...GVHA ... sees enormous opportunities in building on existing core strengths in both tourism and marine industrial infrastructure... and the hard-working staff of GVHA who all work together to make good things happen. Of course, there have been challenges, not least on account of local concerns for the perceived levels of cruise ship impact on air quality along with traffic volumes and noise levels.

While it is well known that all ships are now subject to the requirements of the North American Emissions Control Area and the cruise lines in particular are investing hundreds of millions of dollars into Exhaust Gas Cleaning Systems (scrubbers), GVHA has itself taken a few somewhat simple measures. For example, pedicabs are now at the front (instead of the back) of the lines as a transport option and a fully electric double-decker bus is now providing service between Ogden Point and the City. These measures are backed up by the waiving of passenger fees on buses built in 2010 or later. Another of Ian’s interesting statistics is that in 2012

there were 17 per cent passenger walkoffs; in 2016, this number was up to 23 per cent. These measures and more have resulted in a much-improved dialogue with the local James Bay Neighbourhood Association and of which Ian is justifiably proud.

Of course, GVHA is not exclusively about cruise ships. Ian is an enthusiastic supporter of the new V2V daily ferry service between Victoria and Vancouver which he sees as offering further options to the tourism industry while also offering a choice to us locals. This will be further enhanced should Clipper confirm their project to launch a similar service in 2018. The new whale watcher Salish Sea Dream is also now in operation out of Victoria but GVHA balances this with wholehearted support to the VFPA lead ECHO program.

Looking forward, GVHA is open to hosting escort tugs for tanker and LNG

traffic, but also sees enormous opportunities in building on existing core strengths in both tourism and marine industrial infrastructure to revitalize Ogden Point.

I wouldn’t bet against their success.

Nanaimo Port Authority

Shortly following our discussion, the Nanaimo Port Authority formally announced the decision of Bernie Dumas to retire from his role as President and CEO. The timing therefore proved to be fortuitous in providing Bernie with an opportunity to provide us with an insight of where the port is, and needs to go, as a change of the guard approaches.

With the demise of the traditional role of NPA as a centre for forestry exports, the need to diversify was apparent when Bernie assumed leadership in January 2009 given that the first ship to be scheduled to load forestry exports did not turn up until August that year. Diversification has therefore been the cornerstone of strategic policy in the years since, however despite several Island forestry producers currently relying on their own terminals, it is ultimately expected that

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there will be a need for a consolidation point for ocean carriers and Nanaimo is well placed to provide this. Overall, cargo is generating 45 per cent of NPA revenue.

Bernie is encouraged by the partial revival of dimensional lumber exports to the tune of 3-400 MMFBM per annum but perhaps the most high-profile move to diversify occurred with the initiation in 2012, of a container barge service from Duke Point to DP World’s Centerm in Vancouver, aided by a federal Short Sea Shipping development grant of $4.5 million. From humble beginnings, volumes have steadily risen and in 2016 reached 43,000 TEU with 50,000 TEU projected for 2017. The service operates from a dedicated barge berth using a Liebherr mobile crane imported in 2015. To consolidate the success of the service, NPA is now prioritizing growth in import volumes to balance exports. A direct-call monthly container service introduced by Westwood Shipping was not sustained due to a drop in lumber volumes to Japan and Korea and a consequent inability to maintain minimum inducement, however NPA is now examining with DP World the feasibility to switch older gantry cranes from Centerm to Duke Point in order to attract other main line container calls.

Also of note at Duke Point, land purchased from CP Rail has been leased to Seaspan Ferries to allow development of a new 18-acre, multi-berth facility, which has enabled consolidation of operations from the previous downtown operation and the original facility at Duke Point.

While the Assembly Wharves require significant investment in seismic upgrades, NPA has been successful in harnessing their use for log exports with volumes increasing by 100 per cent in each of the last two years. Bernie was also keen to mention that Western Canada Marine Response Corporation (WCMRC) has selected the Assembly Wharves for the establishment of a new response base even though he has some concerns that government is moving too hastily on the broader implementation of the Oceans Protection Plan. However, the 15 acres of land at Duke Point that NPA does not have under lease is the primary focus for growth in throughput of other products, with NPA hoping to gain a slice of the Canadian Infrastructure Bank’s $10.1 billion allocation for terminal expansion.

Turning to the cruise sector, the new dedicated terminal which was commissioned in 2011 is not meeting growth expectations with cruise calls averaging six ships per year against a target of 20-25 per year. More encouragingly, liquid kaolin is recovering from a low in 2016 of 19,000 tonnes with already 24,000 tons received by the end of April 2017. Other business

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Bernie Dumas, President and CEO, Nanaimo Port Authority.

this year involves a cargo of replacement windmill blades, a call by a dedicated yacht carrier, small volumes of scrap metal and the port was unusually called upon to service a cable ship — an operation reported to have gone well.

Often in the news as a pending project, is the establishment of a foot passenger ferry service between Nanaimo and Vancouver and NPA continues to work with the City of Nanaimo in securing a viable proposal to re-establish such a service. Meanwhile, Helijet has lost no time in growing its operation, originally launched in 2016. The company is now operating four Vancouver flights each way daily and is considering to increase this to six while also evaluating the case for a Nanaimo to Victoria service. At the same time, float plane traffic is growing by 15-20 per cent every year.

At the centre-piece of the downtown core is NPA’s marina, a feature which attracts a great deal of community interest.

Berthage currently comprises around 6,000 linear feet but such is demand, the plan is to expand this to 10,000 linear feet.

In winding up the discussion, Bernie underlined the NPA commitment to working with Xanatos Marine in furthering investments in Marine Domain Awareness in support of Transport Canada, the Canadian Coast Guard and the broader marine industry, despite administrative obstacles such as the inflexibility of Letters Patent. As an enthusiastic member and former Chair of the Association of Canadian Port Authorities he is an advocate of them assuming an expanded role to “tell the port story.”

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Photo: Nanaimo Port Authority (Arrowsmith Aerial)

Log exports at Nanaimo Assembly Wharf have increased 100 per cent in each of the last two years.

tonnes per year of frozen hake into reefer containers for export. PAPA has invested in the necessary power supply infrastructure to secure this business. A further diversification is Cantimber Biotech, an innovative start-up operation initiated in 2016 involving the leading Wood Based Activated Carbon manufacturer in Canada. The company utilizes retort pyrolysis technology to produce clean and high quality activated carbon using bio waste from timber harvesting operations. This is eventually expected to generate 1,000 TEU of exports per year and around 24 full-time equivalent jobs. Local environmental concerns surrounding the operation prompted PAPA to commission a review by Golder Associates in June 2016 resulting in 21 recommendations. PAPA is now working with an informal Cantimber Working Group to finalize implementation of those findings.

Much in the news in the past couple of years is Steelhead LNG’s proposed Sarita LNG Project to be located on Huu-ay-aht First Nation-owned treaty

Looking to the future, with the Island’s population now at 700,000 (Nanaimo 90,000) and expected to double in the next 20 years, NPA has recently joined with Port Alberni and Victoria in lobbying the Province on the need for a Comprehensive and Collaborative Vancouver Island Marine Transportation Strategy by way of complimenting the broader Asia-Pacific Gateway initiative.

For sure, this will be a worthy policy initiative for Bernie’s successor. On behalf of us all, thanks Bernie for a job well done.

Port Alberni Port Authority

Photo: BC Shipping News

When speaking with Zoran Knezevic, President and CEO of Port Alberni Port Authority, accompanied by David McCormick, Director, Public Relations and Business Development, one is quickly reminded of a phrase once frequently used by Don Krusel in relation to Prince Rupert, i.e., the little port that could. Hence, the unsurprising Port Alberni vision statement: “To be a thriving and diversified international port.”

From a strategic policy perspective, Zoran highlights the need to raise awareness of the advantages that a natural harbour such as Port Alberni offers to a growing Island population. There is no small degree of local frustration at the difficulties in securing recognition of opportunities given the ease of port access and economic growth potential.

To this end, PAPA is closely aligned with the Vancouver Island Economic Alliance (VIEA), regional Chambers of Commerce and local First Nations in actively spreading the word.

Current port activity consists of a healthy average of five ships per month to load logs and lumber. The port also has an interesting arrangement with the Independent Seafood Corporation of Canada to transfer approximately 8,000

land at Sarita Bay, about 10 kilometres north of Bamfield, itself about 50 kilometres southwest of Port Alberni at the southern end of Alberni inlet. The National Energy Board (NEB) has granted Steelhead LNG four export licences (up to 24 million tonnes per annum) to export LNG for 25 years and The Province of BC has reserved 750 hectares of land for the development of this and the conceptual Port Alberni Transhipment Hub (PATH).

The prospect of PATH clearly raises Zoran’s emotions as it is a project in which he passionately believes. All levels of government, Chambers of Commerce and the City of Port Alberni have expressed an interest in the estimated $1.7-billion project which essentially calls for the development of a threeto-four-million TEU capacity, semiautomated container terminal serviced by 14-16 Malacca-max gantry cranes.

Zoran and his team have spared, and continue to spare, no effort in marketing their vision internationally.

On the cruise front, while there are no calls scheduled for 2017, PAPA is working to develop an attractive and uniquely Port Alberni forest practices tour that focuses on how forest products are handled “from the forest floor to the customer door.” Included in the tour would be visits to recently logged areas and visits to both a lumber and paper mill.

As a member of Green Marine, West Coast Aquatic and the Tofino Salmon Enhancement Society, Zoran emphasized the commitment of PAPA to balance economic and social development

32 — BC Shipping News — September 2017

Zoran Knezevic, President and CEO, Port Alberni Port Authority.

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Photo: BC Shipping News

Port Alberni is seeing an average of five ships per month for logs and lumber.

in its efforts to attract venture capital.

PAPA is also motivated to work with WCMRC in providing increased coastal protection against spills.

In concluding the discussion, Zoran expressed PAPA support for the Pilotage Act Review given what he feels is the prohibitive cost of pilotage into and out of Port Alberni, the cost of the launch service being particularly difficult to accept. PAPA is also in support of greater emphasis in development of short

sea shipping. As with Bernie Dumas in Nanaimo, Zoran is a strong advocate for a Comprehensive and Collaborative Vancouver Island Marine Transportation Strategy and for West Coast ports to work as a cluster rather than in silos as is currently the case.

May I extend my sincere appreciation to those involved in giving me their time and helping to develop this article for BC Shipping News which I hope readers will find both interesting and informative.

Captain Stephen Brown spent 21 years at sea where he served as Master for the last five years with Gearbulk Shipping.

After coming ashore, he worked in various levels of operational management for Gearbulk Shipping before going on to serve as Chamber of Shipping of BC Director (2000 to 2008) and President (2008 to 2016). Captain Brown is currently the owner of West Pacific Marine Ltd., Marine Consultancy and can be reached at westpacificmarine@gmail.com.

September 2017 — BC Shipping News — 33

INTERMODAL RAIL

Intermodal rail energizes port traffic

By Darryl Anderson Managing Director, Wave Point Consulting

R

ail intermodal traffic consists primarily of retail goods in overseas containers transported by train, ship, and truck; and in domestic containers and 53-foot trailers moved by train and truck. Since Canadian railroads directly control the marketing of their intermodal services (in contrast to the United States where the service is wholesaled), the commercial pulse of the Class 1 railways in Canada can directly energize port traffic.

Intermodal traffic volume increased seven per cent for CP and 16 per cent for CN in the Second Quarter of 2017. With such a torrid growth rate, port officials and shippers are asking what the outlook will be for international intermodal traffic. This article explores several important topics with top Canadian National (CN) and Canadian Pacific (CP) representatives to help shippers make informed supply chain decisions.

Outlook

The growth of international intermodal traffic in Canada is increasingly linked to North American economic and trade conditions. CN’s Jean-Jacques Ruest, Executive Vice President and Chief Marketing Officer, noted that the international intermodal model is different in Canada and the U.S. “In Canada, there is not as much transloading as Los Angeles and Long Beach, for example,”

The growth of international intermodal traffic in Canada is increasingly linked to North American economic and trade conditions. he said. “In fact, the Prince Rupert international intermodal model is the total reverse of the southern California market. Vancouver is somewhere between Los Angeles/Long Beach and Prince Rupert. In the Canadian port market, the cargo and containers need to go inland.” In turn, this creates opportunities for export cargo to flow through either the Vancouver or Prince Rupert gateways.

In an interview with BC Shipping News, CP’s Jonathan Wahba, Vice President Sales and Marketing, Intermodal and Grain Canadian, said that “the direct relationship that railways have with customers has resulted in service innovation.

For example, in the U.S., railroads do not offer generator sets for cool cargoes.

Rather, they offer a clip-on service.”

The reach of CN’s international intermodal service extends to import and export container traffic at the ports of Vancouver, Prince Rupert, Montreal, Port of Saint John, Halifax, New Orleans and Mobile whereas CP’s international intermodal business consists primarily of containerized traffic moving between the ports of Vancouver, Montreal and New

York and inland points across Canada and the U.S. Import traffic from the Port of Vancouver is mainly long-haul business destined for eastern Canada and the U.S. Midwest and Northeast.

On Canada’s Pacific Coast, CN is the clear international intermodal market leader. The company handles approximately 70 per cent of Vancouver’s container traffic and 100 per cent of Prince Rupert’s traffic. In January 2016, CN’s major container line contracts were renewed and they also picked up Yang Ming’s business following commencement of a new service for the container line at Vanterm and Centerm.

Ruest confirmed that several developments were occurring that will benefit shippers and energize future port traffic. The most significant of these are the 500,000-TEU capacity expansion of the DP World Fairview Terminal in Prince Rupert and Vancouver’s Deltaport rail expansion. Deltaport has the largest on-dock intermodal railyard in North America and is undergoing a redesign that will increase rail capacity to 1.9 million TEUs within its existing footprint, according to Louanne Wong,

The redesign of Deltaport’s on-dock intermodal railyard will allow CN to market new capacity into the Canadian and U.S. markets.

34 — BC Shipping News — September 2017

Photo: BC Shipping News

INTERMODAL RAIL Manager of Market Initiatives at GCT Deltaport. Thus, CN is actively looking to sell this new 20 per cent incremental capacity into the Canadian and U.S. markets.

On the Atlantic Coast, CN is also working with DP World at the Port of Saint John in New Brunswick and has resulted in the introduction of a new service from the Caribbean by CMACGM. On August 25, CMA-CGM initiated a new weekly service between Eastern Canada and the Caribbean with direct service to Saint John. It connects Canada directly with 10 ports in the Caribbean and a multitude of port transshipment and inland rail possibilities. Canadian exporters and importers now have new competitive connections to and from the Caribbean, Central America, the East and West Coasts of South America as well as Asia, Europe and Oceania.

While CP has experienced a decline in international intermodal volume in recent years — primarily due to the loss of three container-line contracts to CN (APL, MOL and OOCL) — Keith

Creel, President and CEO, is championing the charge to get their international intermodal business back on track. During a recent conference call for investment analysts, Creel said that “we spent the last four years fixing the engine and building the bench on the intermodal side. We’ve created an operating model, but we are leveraging the strengths of the network which are the shorter lengths of haul on our key markets.”

This comment was reinforced by Wahba’s comment to BCSN that the outlook for international intermodal is strong and in fact, the “rate of growth in Canada is outpacing what is occurring in the U.S. by a two-to-one margin.” He further indicated that CP is laying a foundation to take advantage of the increase in international intermodal traffic that is being driven by larger ships under new shipping alliances.

CP successfully opened a new “live” lift at Portal, North Dakota, in May 2017. Portal is the border crossing for CP’s intermodal traffic moving between Western Canada and the U.S. Midwest.

The new service allows CP to lift

single containers off trains for inspection by Canadian and U.S. authorities as opposed to having entire intermodal cars set-off, eliminating the delay of nontargeted containers.

CP is also making the single largest purchase of gensets in railroad history with an order for 41 new units equipped with the latest telematics and most fuel-efficient technology available in the marketplace. The equipment will initially be delivered in September through to the First Quarter of 2018.

Gensets are purpose-built 40-foot containers that house two large generators capable of powering up to 17 refrigerated ocean-going containers. With this investment, CP will expand its protective and perishable service and will allow CP to launch more transcontinental genset train starts from the ports of Vancouver and Montreal.

Adjusting to the needs of new shipping alliances

Keith Reardon, Vice President of Intermodal, and Dan Bresolin, Assistant Vice President, International Intermodal,

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INTERMODAL RAIL CN introduced a significant change in the handling of import containers from the South Shore terminals at the Port of Vancouver in early 2017.

CN, both commented on CN’s proactive stance to prepare for larger ships and changes because of alliances. “Since the First Quarter of 2017, CN has been consulting with its customers to determine which reconfigured strings need to be serviced, with what volume of traffic and where the cargo needs to go,” said Bresolin.

Ruest noted that container traffic at both Halifax and Montreal ports are up 10 per cent over last year’s Second Quarter and believes that future growth potential at these two Canadian ports is directly 20170030-GillespieMunro-HalfPage-70yrs_update.pdf

1

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tied to the ability to move containers inland. He attributed last year’s doubledigit growth in international intermodal in Halifax in part to the work that CN had undertaken with CMA-CGM in previous years; revised trade lanes; and better connectivity to the Mediterranean.

CN introduced a significant change in the handling of import containers from the South Shore terminals at the Port of Vancouver in early 2017. Under a 2004 CN/CP co-production agreement, CP handled theirs plus CN’s traffic to 9:22 AM

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Centerm and Vanterm via the CP main line on the South Shore of Burrard Inlet.

In January 2017, CN resumed switching their traffic to the South Shore container terminals and rerouting via the Burrard Inlet Line and across the New Westminster Rail Bridge. Consequently, CN has grown the international intermodal business in the first six months of the year with container traffic volume up 135 per cent in the Second Quarter of 2017. “In part, intermodal traffic has increased because CN has worked with GCT at Vanterm to handle some of the container traffic that might have otherwise been displaced by the rail expansion project at Deltaport,” said Ruest.

Wahba confirmed that CP has also made investments to improve service to the South Shore terminals including $2 million in January 2017 to improve the fluidity of container traffic on the South Shore.

Reardon noted an additional operational change in Vancouver last year to create capacity. Both GCT Deltaport and CN started draying containers.

“CN started trucking 6,000 to 7,000 feet of intermodal traffic per day from Deltaport to their Surrey domestic intermodal facility to accommodate the needs of shipping lines while the Deltaport rail expansion project was underway.”

Even with a weaker market share, CP’s Creel believes his company will see intermodal growth. “We’re doing some things to enhance the network to make us more attractive as we’re also dealing with our international intermodal customers as we go forward,” he has publicly stated. “We’re looking at investing in some transfer facilities, transload facilities we have not had in the past, specifically in Vancouver.”

“CP opened a container transload facility at their Coquitlam yard in July 2017,” Wahba confirmed. “The import boxes that are used to support Canadian Tire’s import traffic are being reloaded to export pulp and export containers are sent by rail to Deltaport, eliminating the local drayage movement.”

How shippers and freight forwarders can take advantage of container match-back opportunities

CN’s Ruest noted that with a growing number of shipping line partners, there is a much bigger pool of international

36 — BC Shipping News — September 2017

INTERMODAL RAIL

Conclusion

While international intermodal is energizing port traffic, a major issue for exporters is whether the availability of containers

Photo: BC Shipping News

containers and that the recently completed Fairview expansion in Prince Rupert provides more incremental capacity that will benefit shippers. He also noted that the increased rail capacity at Deltaport will result in an increase in CN’s capabilities to accommodate traffic from bigger ships, particularly if the ship is coming to Vancouver as the first port of call.

On the export side, Ruest indicated that if an exporter is located where there is an intermodal terminal (i.e., Edmonton, Calgary, Prince George, Saskatoon and soon to be in Regina), empty containers are available. The Prince Rupert gateway presents new export opportunities at Tidal Coast Terminals and Coast Tsimshian Enterprises Lumber Transload facilities in Prince Rupert and via CN’s Prince George facility.

“For exporters, match-back opportunities will come about as the result of increased container terminal capacity,” said Ruest, “especially since we are seeking to create more balance in the West with laden inbound and export boxes.” Case in point, the new partnership between Ray-Mont Logistics, CN and the Port of Prince Rupert will see the development of a new grain container stuffing facility operating for the 2017/2018 grain season. The facility will handle pulses and cereals (such as lentils, peas, beans, soybeans, flax, and wheat) as well as other specialty crops transported in hopper cars by rail from Western and Central Canada and the U.S. Midwest. The cargo will be transferred to ocean containers for export via the Fairview Terminal.

CN is also working with a partner to open an intermodal ramp in Regina in 2018 which will be an attractive location for specialty crop export loading.

Bresolin noted that the domestic repositioning of containers also helps exporters. CN’s repositioning program works with beneficial cargo owners and can also provide opportunities for seasonal shippers or when other transport options are stretched.

Examples of goods repositioned include the use of refrigerated containers, for foods, cheese, liquor, etc.

Reardon sees the situation concerning inland container availability improving for exporters. “Over the last seven years, steam ship companies have moved from a port-to-port model in Canada to what we refer to as a moving inland point intermodal,” he said.

As a result, the long-festering issue of consistent empty container availability on the Canadian Prairies and B.C. is easing up.

CP believes they can recapture some lost international intermodal market share. “In the international space and our particular network, we are going to have some benefits going forward that, to me, are meaningful,” Creel said when speaking to investors. “Hapag-Lloyd has decided to bring the largest ship ever to visit Canada. Hapag is our anchor customer in international intermodal, in Vancouver. Vessels which were previously 8,500 TEUs, are now 13,000 TEUs. Thus, CP expects natural growth as the fall peak shipping season arrives on the international side.”

CP is working with Hapag-Lloyd to use the 40-foot reefers in domestic service with the gensets to move product into Winnipeg. In turn, this creates opportunities for the boxes to be used by exporters. The start of the service is resulting initially in approximately 20 to 30 containers per month of exports.

CP has added transload facilities at their Coquitlam yard to facilitate increased capacity.

inland represents new short-term supply chain opportunities or a structural change in the marketplace.

CN’s Ruest credits the increasing container capacity in Prince Rupert as a spark for improved inland container availability.

The expansion of Fairview Terminal and rail infrastructure enhancements at Deltaport will only intensify the magnitude of the changes in container availability.

CP’s Wahba agrees that a structural shift in the market has occurred. “The introduction of precision scheduled railroading at both Class 1 railroads has resulted in predictability, reliability of service and availability of equipment in the middle of the continent,” he said. As a result, there are growing opportunities for Canadian exporters since the outlook on the availability of export boxes looks to remain high.

CN has captured most of the growth in Canadian international intermodal traffic over the past few years. Since the international intermodal contracts that railways have with the container lines are multi-year agreements, the potential book of business that can shift between the railroads each year is somewhat limited. In 2018, CP will have an opportunity to compete for several shipping line contracts. Success in attracting more container line traffic would be an encouragement for some of Canada’s largest shippers located near CP’s inland intermodal facilities.

Over the next two years, shippers and port officials might see the fruits of CP’s renewed interest in international intermodal.

However, CN’s track record and the desires of the container lines for service quality and price will also help shape how port traffic and trade lane growth is energized.

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

September 2017 — BC Shipping News — 37

CONTAINERS

Maersk Line Canada President shares insights on container sector To help offset costs and increase efficiencies, Mahoney noted that there have been more mergers and acquisitions over the past two years than there have been in the last 20.

W

hen Jack Mahoney took over the role of President, Maersk Line, Canada, nearly two years ago, there was only one Maersk vessel per week calling on the West Coast of Canada. “Now, we have two per week,” he said. “And not only have we increased the frequency but the vessels are larger than they were a year ago.” Pleased with activities to date, Mahoney offered a few insights into the Canadian operations of the world’s largest container shipping company.

Background

To put its size into perspective, the global giant that is the A.P. MollerMaersk Group, headquartered in Copenhagen, Denmark, can be found in 130 countries with about 88,000 employees and an annual revenue (2016) of US$35.5 billion. Since January 2017, the organization separated into two business streams: transport and logistics plus a stand-alone energy division. It is within the Transport and Logistics division that we find Maersk Line, along with companies like APM Terminals, Damco, Svitzer and Maersk Container Industry (the Energy Division consists of Maersk Oil, Maersk Drilling, Maersk Supply Service and Maersk Tankers).

Worldwide, Maersk Line employs over 30,000 people in 306 offices along with over 7,000 seafarers on more than 600 ships. It is the world’s largest container shipping company, carrying 12 million containers per year to 343 ports for over 59,000 customers. The business includes Safmarine, Seago Line, SeaLand and MCC, not to mention the Hamburg Süd acquisition that is working its way through the regulatory approval process and should be in place by the end of 2017.

With headquarters in Toronto and offices in Vancouver and Montreal, Canadian operations include regular service to and from Montreal and Halifax on the East Coast, and Vancouver and Prince Rupert on the West Coast.

Before coming to Canada to head up the operations, Mahoney started his career with Sea-Land in the early 1990s before moving to Maersk as part of the acquisition in 1999. He held a variety of sales, trade and sales management roles in Copenhagen and the U.S. that led ultimately to heading up the U.S.A’s forwarder sales group before accepting the position of President, Maersk Line, Canada, in October 2015.

While Maersk, including Maersk Line, made the news recently as one of several victims of the worldwide cyber

Jack Mahoney, President, Maersk Line, Canada.

attack at the end of June, the event was quickly addressed and operations were running close to normal within the span of 10 days.

Trends

Low freight rates, a fragmented market plus a few other factors meant substantial losses for container ship carriers in 2016, culminating in the bankruptcy of Hanjin in the Third Quarter — the worst possible time with European and North American retailers trying to get ready for Christmas. “$14 billion worth of cargo was stranded,” said Mahoney, describing an increased awareness from

Photo: Lonnie Wishart (www.lonniewishart.com)

The Adrian Maersk at Fairview Terminal, Prince Rupert.

September 2017 — BC Shipping News — 39

CONTAINERS customers that they can’t take shipping for granted. “We’re seeing more customers realize that the record-low freight rates are not sustainable and there’s a need to pay closer to what shipping is worth to avoid future Hanjins.”

To help offset costs and increase efficiencies, Mahoney noted that there have been more mergers and acquisitions over the past two years than there have been in the last 20. “We think this is a positive trend and believe there’s room for even more,” he said, adding that vessel sharing agreements are also allowing companies to focus on reducing costs and improve efficiencies but, again, “there’s probably more that can be done.”

For their part, Maersk Line announced the acquisition of Hamburg Süd which should be complete by the end of 2017.

“We are proceeding but the regulatory process is an ongoing one,” Mahoney said. “Through the acquisition, we expect to get operational synergies over the first couple of years once the transaction is complete. Hamburg Süd has a great reputation in the industry. They’re strong in the north-south trade, have a very good name with their clients and are very strong in the refrigerated and perishable goods market.”

Mahoney further touched on the digital transformation of the industry. “’The industry is on the cusp of digital transformation, requiring logistics and transportation providers to have a better

understand and use of technology and data to enhance visibility and easy of business to their customers.” Noting that the Maersk Line website generates more than a million dollars in revenue per hour and has a quarter million users annually (19,000 on an average day), Mahoney pointed out the many benefits of a greater digital presence, including time and cost advantages as well as greater accuracy and easier access to information for the customer.

Technology advances are also playing a role in the vessels themselves to the benefit of the environment and operating costs. With 27 new builds on order (the majority of these are set to replace older, less efficient vessels), Mahoney highlighted some of the technologies and initiatives that were optimizing operations. “There’s a lot going on,” he said. “Everything from vessel designs that capitalize on more efficient container capacity to safe and efficient voyage planning through to the type of hull paint being applied. It’s all focused on using the knowledge and technologies out there to provide for greater environmental sustainability and cost efficiency.”

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Globally, Mahoney estimated a two to four per cent growth rate for 2017 for the container sector and noted that the year was off to a good start with growth in the First Quarter at about five per

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cent. “Canada is at the higher end of this scale,” he said. “Our own performance is seeing import and export growth greater than 15 per cent for Canada and there are many opportunities to build on that.”

In addition to East Coast service through ports in Montreal and Halifax for regular weekly sailings to and from Northern Europe, Maersk’s West Coast service to and from Asia includes a Vancouver-Seattle route as well as a Prince Rupert-Vancouver sailing. As mentioned previously, both frequency and vessel size have increased for West Coast activity.

Mahoney attributed the positive numbers to Prince Rupert’s Fairview Terminal and Vancouver’s Centerm and their intermodal connections to the U.S. which are viewed very favourably.

“U.S. demand has a lot of relevance for Canadian port activity because of the CN Rail connections in both Prince Rupert and Vancouver which is facilitating increased activity to the U.S. mid-west.”

While vessel size is averaging about 4,600 TEU for the Vancouver-Seattle service and 7,000 TEU for the Prince Rupert-Vancouver service, Mahoney said that they’re always looking for ways to optimize the network but as demand increases, so too will the size of the ships provided infrastructure at the ports is ready for bigger vessels. “One of the benefits of the West Coast is the water depth — it’s never been a concern,” he said. “We’re also really pleased to see the progress being made at Fairview Terminal with the addition of a second berth and we know that Centerm, where we have two of the three main berthing windows, is also planning for an expansion.”

When asked about the regulatory environment in Canada, Mahoney had nothing but encouraging remarks. “It’s only been positive for us. We’ve always found the operating environment in Canada to be very fair. It has allowed us to adapt to the needs of our customers — the operating model is conducive to implementing those needs relatively simply.”

While hesitant to forecast the market any further out than the current year, “Canada’s focus on growing the economy through trade seems to be supported by a great portion of the population and we enjoy playing a role in facilitating that growth.” BCSN

OP-ED: CABOTAGE

Fight for cabotage gathering global strength

By Terry Engler President, I.L.W.U. Local 400

M

aritime workers are fighting hard to keep Canadians on deck. We have been greatly inspired by a push this year from the international maritime community to defend cabotage laws — and in many cases, strengthen them.

In Canada, we’ve been resolute in our efforts to protect cabotage legislation.

We’ve stood firm in the face of arguments that would have us believe cabotage is a quaint relic of a pre-globalization economy. And we’ve watched with pride as maritime workers themselves took to the streets en masse to say they will not accept cheapening and outsourcing of their jobs.

So it was heartening to hear the same message this summer from workers, academics, lawyers, trade unions and the shipping industry itself, all reporting that the fightback is strong — and growing stronger.

More than 100 delegates gathered under the banner of the International Transport Workers Federation this June in Cape Town, South Africa, to examine the reality of cabotage regimes around the world. My report on the campaign in Canada was part of that effort.

Reports from Nigeria and the Philippines illustrated the importance of cabotage to emerging nations attempting to build industries that employ local workers, provide opportunities for local entrepreneurs and contribute to local and national economies.

From South Africa, we learned that for the first time in 35 years, two vessels were brought into the national registry — part of an effort to promote jobs and investment in a country where unemployment tops 28 per cent.

The U.S. report spoke of the importance of the Jones Act to the country’s entire maritime industry, from businesses to workers, and the way both have joined hands to fight ongoing attacks on their cabotage laws — the most recent

We’ve stood firm in the face of arguments that would have us believe cabotage is a quaint relic of a pre-globalization economy. assault being the one led by Senator John McCain, who has launched repeated attacks on cabotage and remains undeterred in his attempt to serve foreign commercial shipping interests.

The Maritime Union of Australia (MUA) detailed the threat that the current neoliberal government poses to cabotage, and the determined effort to sell off jobs even in the face of ample evidence the move will harm Australia’s physical and economic security. Bolstering the union argument is a freshly-released report by a senate standing committee in Australia, detailing the danger to national security posed by Flag of Convenience (FoC) vessels in their domestic trade.

Norway’s cabotage efforts were particularly instructive. Norway has not passed cabotage laws to date, largely because it has had a strong and historic role in the international shipping industry. But the country is now reporting a significant downgrade in its national maritime skills. The steady incursion of FoC vessels into Norway’s coastal trade has resulted in fewer Norwegians entering the marine sector. When wages for ratings (unlicensed seafarers) on FoC vessels top out at about $4 US per hour and contracts regularly last nine months, there’s a clear disincentive to Norwegians seeking a life at sea. With few making the first step onto the marine skills ladder, Norway’s entire skill set is being slowly lost. And the small cadet programs that still exist don’t make up for the loss; cadet pay is even lower than ratings’ pay, effectively ruling it out for most Norwegians.

But Norway’s response is helping Canadian workers firm their resolve.

With traditional seafaring and fishing industries shrinking and coastal communities under siege, Norwegian unions

won the support of local politicians in a campaign to push the national government to enact cabotage legislation. A majority of coastal communities are now on side and their proposal is being forwarded to government.

Equally heartening was a presentation from industry. Robert Ho, President and CEO of Fairmont Shipping (HK) Ltd., traced the history of modern cabotage to the 1700s, when European empires used national fleets to enforce exclusive rights on sailing routes to their colonies. World wars and wars of independence broke apart those empires — but they have been replaced with coalitions of military, industrial, banking and academic interests that use think tanks and other wellfunded instruments to push the agenda to remove cabotage worldwide.

Beyond history, the point was in part the importance of cabotage to the security of a nation in times of war, disaster or national emergency. The examples were compelling: Under their cabotage regulations, Britain was able to tap P&O cruise vessels during the Falkland war.

Under the Jones Act, the U.S. government can rely on a large fleet of vessels for conversion to military or emergency use.

The issue of potential economic sabotage posed by foreign vessels controlled by unfriendly or potentially unfriendly states was equally compelling.

We were offered other refreshingly frank industry insights into the problem with reducing national fleets — and the advantage that foreign owners relish. In Canada, foreign vessels can be arrested, but determining the beneficial owners can be very difficult and legal costs can mount accordingly. Foreign ships in general do not fill Canada’s tax coffers.

Foreign crew don’t pay Canadian income September 2017 — BC Shipping News — 41

CABOTAGE tax; the owners don’t pay fuel or business taxes. And there is no real competitive advantage to be found in flooding coastal routes with foreign vessels. When Australia lifted cabotage, there was no increase in the number of ships trading.

In Canada, the actual competition takes place among players in the coastal trade.

And finally, it was encouraging to see firm numbers put to the argument that the world is with us. In a survey of worldwide cabotage, Seafarers Rights International found that the majority of United Nations members exercise some form of cabotage — a trend that has grown over time.

The first survey on cabotage was done by the League of Nations in 1931; it covered 41 countries and found 29 had cabotage restrictions. In 1991, a U.S. Maritime Administration survey on cabotage looked at 53 countries and found 47 had cabotage laws. An MUA survey in 2010 showed the trend continuing.

The Seafarers Rights International survey produced important findings on the rationale behind cabotage as well.

Fair competition, retention and transfer of maritime skills, jobs for local seafarers and work for local transport companies, protection of the environment, national security and public service were all cited.

The Cape Town gathering was equally clear on challenges. Much of the focus was on global free-trade deals and government

waivers as the clearest present threats to cabotage. Brazil, we noted, was the worst waiver offender, granting 5,434 waivers between 2008 to 2011.

To Canadian workers, the discussion was familiar. We have watched as Ottawa attempts to begin dismantling cabotage through the Comprehensive Trade and Economic Agreement, and remains on course to liberalize and privatize the country’s transportation system, including its remaining maritime industry.

We are fighting back at quiet attempts to sell our jobs to foreign ship owners through waivers that approve the routine use of cheap foreign crews. We have documented and exposed the fact that industry has failed to conduct the mandatory labour assessments that would justify its failure to hire Canadians.

We have refused to be bought off with inaccurate and self-serving arguments that Canadian workers are not ready, willing and able to serve on deck.

In my role as president of the marine section of the International Longshore and Warehouse Union, I have attended two meetings in Ottawa in the past several months to address the waivers issued by the Canadian Transportation Agency and the role of Labour Market Impact Assessments (LMIAs) and the Temporary Foreign Workers (TFW) program in the marine industry. We have also appeared before the Senate Trade

Committee to ensure senators are aware what the maritime provisions in CETA mean to the country’s mariners and to Canadian ship owners.

The government agreed to organize these meetings only after judicial reviews were filed against CTA waivers granted without the government following their own policies regarding LMIAs and the TFW program.

From these meetings, we secured assurances that government departments dealing with waivers, labour assessments and foreign workers will properly train their staff, will inform all of the stakeholders — including marine unions — of applications for CTA waivers, for LMIAs and for TFWs, and that government policies will now be enforced. Among those policies is a requirement that any foreign seafarer hired under a CTA waiver must be paid the prevailing Canadian wage.

It would be fair to say we remain highly skeptical that such promises will be met, given the present complexities of enforcing labour agreements. But we have agreed to assist Ottawa in its efforts and to meet again next autumn to examine evidence of their progress.

Our message then, as always, will be this: Maritime unions in Canada are committed to stand with workers worldwide in our united battle to grow, defend and strengthen cabotage. We are committed to help seafarers around the world protect their jobs, their communities and their environment. And we are committed to keeping Canadians on deck.

Terry Engler, president of International Longshore and Warehouse Union Local 400 - Marine Section, can be reached at ilwu400@telus.net.

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Peter Swanson David S. Jarrett

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42 — BC Shipping News — September 2017

RESEARCH Clear Seas

Setting the facts straight An interview with Peter Ellis, Executive Director, Clear Seas Photo: BC Shipping News

R

egardless of a person’s tolerance for risk in matters related to the shipping industry, the conversation must start with an agreed upon set of facts. So believes (fairly) new Clear Seas Executive Director Peter Ellis.

Indeed, Clear Seas is starting to build quite a library of evidence-based, scientific and peer-reviewed material that will be instrumental in not only providing a resource for the public and other stakeholders to make informed opinions, but also sets a critical base of knowledge to allow governments to make policy decisions based on facts.

Background

Originally conceived in 2013 as the Centre of Excellence for Marine Transportation of Oil and LNG Commodities, Clear Seas Centre for Responsible Marine Shipping was launched in July 2015 as an independent, not-for-profit organization with a broader mandate to provide impartial and evidence-based research to inform the public and policy makers about marine shipping in Canadian waters, including risks, mitigation measures, and best practices worldwide for safe and sustainable marine shipping.

The Centre’s start-up funding came from the Federal Government, the Government of Alberta and the Canadian Association of Petroleum Producers with each contributing $3.7 million with support agreements very clearly noting the arms-length independence of Clear Seas. The Board of Directors includes representatives from a diverse background and skillset, including Chair Kate Moran (President and CEO of Ocean Networks Canada), Kim Baird (Kim Baird Strategic Consulting and former Chief and Chief Negotiator for Tsawwassen First Nation), Bud Streeter (President of Lloyd’s Register Canada) and Duncan Wilson (Vice President, Corporate Social Responsibility, Vancouver Fraser Port Authority) to name a few.

With the departure of Dr. Richard Weifelspuett in early 2017, Peter Ellis was selected as his replacement. Having

The Clear Seas Team: Andrea Mitchell-Rozario, Jody Wright, Kayla Glynn, Peter Ellis, Miles Jolliffe and Stephanie Tan. Missing from photo: Meghan Mathieson.

retired from a 31-year career with the Royal Canadian Navy, Ellis is wellsuited for this new role. “I failed miserably in retirement,” he said. “When the position at Clear Seas presented itself, I saw an opportunity to continue to

contribute and felt my naval background provided the skills and strengths needed for such a responsibility.”

Those skills and strengths range from leadership experience, analysis, assessment and management of risk,

More information and registration: www.mastermarines.ca September 2017 — BC Shipping News — 43

RESEARCH ...initiatives like the Oceans Protection Plan align with much of what’s being identified within the [Clear Seas] research. coalition-building and establishing trust amongst a diverse set of stakeholders, and the recognition of the importance of environmental stewardship. He also understands the importance of the shipping industry but without the ties that come from working within the commercial sector. “Because of my naval background, I very much think of Canada as a maritime nation and I know the importance of shipping to Canada as a

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strategic capability,” he said. “I think that capability will continue to grow in the future and an initiative like Clear Seas can facilitate that growth while ensuring the environment is a top consideration.”

Priorities

Priorities set under Ellis are not much different from the original ones set out at the launch. “Our focus is on timely and relevant communications and research with actionable outputs,” he said. “If you look at some of the early research, it was done to establish baselines and identify and understand risks. Now, the research is geared more toward addressing specific issues.

“A lot has already been done over the past two years with great success. We have four major research initiatives published, including an Angus Reid Institute opinion poll which was considered more of a communications piece but establishes a good baseline that can be repeated to gauge changes in perceptions.”

In addition to the opinion poll (see sidebars for summaries of all research projects), Clear Seas has published Commercial Marine Shipping Accidents: Understanding the Risks; Leading Systems for Oil Spill Response in Ports – Implications for Canada; and The Value of Commercial Marine Shipping to Canada. While Ellis hasn’t yet seen recommendations translated into policies adopted by government or best practices adopted by industry, he expects that’s still to come but noted that initiatives like the Oceans Protection Plan align with much of what’s being identified within the research.

“The report on marine shipping accidents in Canada, for example, was a higher-level document which set the scene for an understanding of what’s out there and didn’t lend itself to practical solutions”, he said. “And as for the value of Canadian shipping, this is the first time a report like this has been published. That report underscores how the life of virtually every Canadian is touched by shipping. Almost 100,000 jobs and $3 billion per year can be attributed directly to the industry but it goes much further than that,” Ellis said and further pointed to the complexity of shipping. “If you factor in shipping’s contribution to Canada’s trade, the impact on the economy is closer to $30 billion. You can’t get away from the fact that practically everything in this office and everything I’m wearing came by ship. And if you live in a coastal community, literally everything comes in by barge or boat. It’s a life-blood.”

While research remains a top priority, running a very close second for Ellis is engagement with the public and he and the Clear Seas team are working on ways to increase that. “We’ve expanded our social media presence and enhanced the website — for example, we added the tanker micro-site (clearseas.org/ tankers) which delivers the information in a more graphical way than simply posting a research report,” he said. “Feedback so far is that people are more receptive to that.” And now that he’s been able to get settled into the position of Executive Director, Ellis is starting to do more media interviews, conferences (one is being planned for October 2017) and visits to smaller communities.

Another priority for Ellis is to satisfy the directive of the original Clear Seas mandate which was to secure long-term, sustainable funding. “It’s not resolved yet but we’re looking at a number of different options and we’re talking to several stakeholders to see what makes sense,” he said, further adding

RESEARCH that he was encouraged by how people view Clear Seas and the role they are fulfilling.

Opportunities and challenges

Comparing the original (2013) concept of Clear Seas to the mandate that was rolled out just over two years ago, there were some significant changes.

For example, moving to a pan-Canadian focus rather than just the West Coast, and moving beyond just the transport of oil and gas to all areas of the shipping industry. Rather than consider these a challenge, Ellis was quick to see the opportunities. “The notion of going to a national mandate and broadening it to include all of shipping made a lot of sense,” he said. “The potential risk posed by shipping is not limited to tankers and is not limited to the West Coast. In fact, by virtue of the inspection regime and quality assurance rigor that tankers go through, they are probably the safest vessels out there.”

While there are understandable differences in awareness and perceptions of shipping between land-locked provinces

CLEAR SEAS RESEARCH: SUMMARY #1 Canadians’ attitudes toward marine shipping Canadians see themselves as a sea-faring nation and have positive views about shipping and its contribution to the country. Canada’s coastal regions feel this most strongly.

Overall, findings from the Angus Reid Institute Opinion Poll, released in April 2016, show that Canadians are equally aware of the importance of marine shipping to our economy and that environmental concerns cannot be ignored, especially along our coastlines.

One of the key lessons learned from the poll is that Canadians expect improvement by all marine shipping stakeholders — from governments to industry to port authorities — to provide better knowledge and oversight of marine shipping activities, especially safety policies.

Highlights from the poll include: • Majority of Canadians (86 per cent) described their overall view of the marine shipping industry as “positive.”

• Canadians feel confident that marine shipping is safe, including the shipment of LNG (but have concerns about shipping petroleum products).

• Most Canadians have confidence in existing oversight mechanisms to ensure industry safety (but have concerns that not enough attention is paid to them).

• A vast majority of Canadians (75 per cent) believe marine shipping makes an important contribution to the economy, facilitates international trade and benefits coastal communities.

• Only 14 per cent of Canadians are aware that there have been no major marine oil spills in Canada in the last decade (major: 700 tonnes and greater).

• Canadians’ top three concerns about shipping safety are: potential oil spills, potential fuel spills and water pollution.

The full report is available at: clearseas.org/research/latestresearch/

September 2017 — BC Shipping News — 45

RESEARCH and those bordering one of Canada’s coasts, Ellis has seen a consistency of issues identified right across the country.

“The Angus Reid Institute poll showed no significant difference in attitudes, even with four and a half times the amount of oil moving off the East Coast in areas that are just as environmentally sensitive as places in the West.”

Adding that all research done to date has been national in scope, Ellis was confident that the expanded mandate provided greater validity and balance.

“The important thing is for us to identify and document risk and identify and document value. Providing research that establishes the facts about shipping is the key strength of Clear Seas. Once the facts are documented, a discussion about strategies to mitigate risk can be more productive,” he said, further noting that decisions based on the research would need to come from policy makers. “We’re here to focus on evidence-based fact as opposed to opinion or policy.”

The future

While not specifically linked to the federal government’s Oceans Protection Plan, Ellis sees the future role of Clear Seas as an important facilitator for decisions that will be made under that initiative. “The OPP shows the government’s desire to balance marine shipping with the stewardship of the environment and the development of sustainable, responsible industries that will support Canada’s economic growth,” he said. “It’s a commitment to undertake additional research that will allow for evidence-based decision making. It also recognizes the many stakeholders and Indigenous peoples who rely on the marine environment and is taking a very holistic approach to building a program that ref lects the many diverse interests.”

The next piece of research set to be released this fall looks at marine transportation corridors. “The research is being done in three phases (Pacific, Atlantic and Arctic) and builds on a workshop we conducted last year about drifting ships. The goal is to provide insight into how shipping routes could be modified to mitigate risks like drifting ships.”

Taking into account the 2014 Simushir incident near Haida Gwaii; the 2014 grounding of the MV John I off the 46 — BC Shipping News — September 2017

CLEAR SEAS RESEARCH: SUMMARY #2 Commercial marine shipping accidents: Understanding the risks in Canada Commercial Marine Shipping Accidents: Understanding the Risks in Canada identifies the risks of commercial marine shipping accidents across Canada’s regions and for different cargo types, while highlighting gaps in understanding and areas for further research.

This study makes clear that Canada’s waters as a whole have been getting safer over the past decade, with fewer commercial marine shipping accidents. Accidents nonetheless do occur yet typically do not result in large impacts. Indeed, for a commercial shipping accident to occur and result in an impact of significance, multiple factors (e.g., weather, type of cargo, vessel age, timing of accident) must coalesce against a backdrop of a large body of regulations, safety protocols, and practices in place, which serve to mitigate risks. An accident such as a grounding or collision may damage the vessel, but not necessarily lead to any wider negative social, economic, health, or environmental effects. Further, the statistics show that most marine accidents occur in confined waters (harbours, rivers, canals) where response regimes are in place to react quickly.

Different regions face very different risk profiles owing to variances in main types of cargo, risk prevention policies such as moratoriums or pilotage zones, and waterway characteristics, including the degree of ecological sensitivity or the number of constrained waterways. Local economic, social, and cultural contexts further contribute to the diverse risk profiles across regions.

Although British Columbia (Pacific region) experiences the highest level of shipping activity, the accident rate and the nature of the cargo shipped, together with current and planned moratoriums, suggest it has a relatively low risk profile compared to other regions. Sensitive marine ecology and geography, a tourism industry heavily tied to marine resources, and the potential impacts on First Nations coastal communities, however, elevate the possible consequences of any accident. Tanker shipments of oil and petroleum products could increase with proposed pipeline projects, which would in turn increase the risk profile of the region.

The full report is available at: clearseas.org/research/ latestresearch/

CLEAR SEAS RESEARCH: SUMMARY #3 Leading systems for oil spill response in ports This research has examined spill response policies and practices in seven ports in five countries. They are the ports of Seattle, Los Angeles and Houston in the U.S. and Southampton, Antwerp, Rotterdam and Hamburg in Europe. These countries and ports provide a range of national policies and port conditions and practices against which to consider Canadian policies and practices.

The implications for Canada of spill response practices in the ports and countries studied are reached with three conditions in mind. They are: • The desired attributes of emergency response systems are well known; Canada has not followed them adequately in its spill response system.

• Studies for the Province of B.C. and the federal government have indicated the general direction of change needed and made specific recommendations.

The need for area-focused, risk-based response planning has been recognized since 2013.

• The development of a new Oceans Protection Plan bears witness to the need for significant changes in the National Marine Spills Contingency Plan.

The 15 implications discussed in this report, drawn from conditions in the seven ports studied, are considered in the context of six themes: the importance of national policy, the holistic nature and goals of oil spill prevention and response, an integrated response to spills in ports, achieving preparedness for spill response, achieving scalability in spill response and the need for continuous improvement.

It should be underscored that many of the implications highlighted in the report have since been or are being addressed

by Canadian authorities in extensive collaboration with stakeholders. One example is the Greater Vancouver Integrated Response Plan for Marine Pollution Incidents published by the Canadian Coast Guard in October 2016.

The full report is available at: clearseas.org/research/latestresearch/

RESEARCH coast of Newfoundland; and the 2004 Selendang Ayu incident off the Aleutian Islands in which six people were killed and a large oil spill occurred, the project is looking at ways to mitigate the risks of such incidents. “It takes into account historic weather patterns, ship drift rates, proximity of shoreline or sensitive areas and finally, the potential position of tugs to assist or rescue,” Ellis said, describing how Dixon Entrance, Queen Charlotte Sound and Hecate Strait and the West Coast of Vancouver Island and Haida Gwaii are being studied initially to gauge the reduction in the risks posed from drifting ships by moving shipping lanes. “It takes a unique approach to marine spatial planning by using the shipping route as the piece to build on while recognizing environmentally or culturally sensitive areas.”

With four solid pieces of major research published so far and the fifth on the way, it’s clear to see the benefits that Clear Seas is bringing to the overall discussion about shipping in Canada.

“From the Angus Reid Institute poll, we were able to see that people felt there was

CLEAR SEAS RESEARCH: SUMMARY #4 The value of commercial marine shipping to Canada This report examines the value that Canadians receive from marine shipping.

The study examines a scope that extends beyond economic impacts and draws conclusions about how marine shipping contributes much to Canadians’ daily lives – whether or not they live in coastal communities.

The report was developed by a multidisciplinary and multisectoral panel of 10 experts (the Panel). Guided by Mary Brooks, Professor Emerita, Rowe School of Business, Dalhousie University (Halifax NS) the Panel examined the best available evidence on marine shipping and its value for more than a year.

Overall, this study confirms how marine shipping’s contribution to the lives of Canadians and the Canadian economy is frequently underestimated.

nowhere to find unbiased information from an independent trusted source,” said Ellis. “That’s an important role to

Key economic findings of the report include: • The national economic impact of marine shipping is equal to approximately 1.8 per cent of the Canadian economy or about $30 billion.

• Marine shipping transports about 20 per cent of Canadian exports and imports by dollar value.

• The GDP of Canada’s marine shipping industry is $3 billion.

• The marine shipping industry in Canada is a direct and indirect source of income for nearly 100,000 jobs accounting for $4.6 billion in labour income.

The full report is available at: clearseas.org/research/latestresearch/

play and I’m pleased to be a part of such an enthusiastic and dedicated team who are fulfilling that mandate.” BCSN

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www.npa.ca September 2017 — BC Shipping News — 47

LEGAL AFFAIRS

Ship recycling and the transboundary movement of hazardous materials

By Mark Gill Bernard LLP, Vancouver

T

he laws regulating ship recycling — commonly referred to as “shipbreaking” — in Canada have been the source of much confusion for many in the shipping industry. As there is no single piece of all-encompassing legislation that addresses ship recycling in Canada, parties are forced to scour through multiple, often complicated acts and regulations for guidance. This is especially true with respect to the export of end-of-life ships that contain “hazardous waste” — an amorphous and evolving term, both in Canada and abroad.

At the centre of our domestic laws and regulations governing the movement of hazardous waste is the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal (the “Convention”), which is an international treaty designed to control and prevent the movement of hazardous waste between nations. The Convention came into force on May 5, 1992, after an emergence of environmental awareness and tightening of environmental regulations in the 1970s and 1980s. During that period, a number of incidents also drew attention to the need for more sustained efforts to regulate the transboundary movement of hazardous waste — one of which was the Khian Sea waste disposal incident, where thousands of tons of ash from waste incinerators in the U.S. was dumped on a beach in Haiti, as “topsoil fertilizer.” After being alerted to the illegal disposal of hazardous waste, the Haitian government ordered the crew of the Khian Sea to reload the ash. Unfortunately, the ship managed to escape and the remaining 10,000 tons of ash was dumped in the Indian Ocean.

The Convention sought to prevent incidents like the Khian Sea by establishing a set of very stringent requirements for notice, consent and tracking of movement of waste across national 48 — BC Shipping News — September 2017

As there is no single piece of all-encompassing legislation that addresses ship recycling in Canada, parties are forced to scour through multiple, often complicated acts and regulations for guidance. boundaries, binding upon all parties to the Convention. Canada ratified the Convention shortly after it came into force and has since enacted several pieces of domestic legislation in order to meet its treaty obligations, including the Export and Import of Hazardous Waste and Hazardous Recyclable Material Regulations (the “Export Regulations”), promulgated under the Canadian Environmental Protection Act, and others such as the Transportation of Dangerous Goods Act and Regulations and the PCB Waste Export Regulations. This legislation can be quite difficult to navigate and, particularly for those engaged in the ship recycling industry, it is not always clear whether certain end-of-life ships are classified as “waste” under Canadian law.

The Export Regulations generally define “hazardous waste” and “hazardous recyclable material” as meaning anything in a quantity of five kilograms or five litres per shipment (or in the case of mercury, 50 mL) that is intended to be disposed of or recycled using one of the operations set out in Schedules 1 or 2 of the Export Regulations (for example, disposal on land, incineration, storage, etc.) or that is included in a number of lists of materials in Schedules to the Export Regulations, and certain classes of dangerous goods in the Transportation of Dangerous Goods Regulations. While the Export Regulations do not specifically contemplate an entire ship as being the subject of export controls, many of the constituent parts of ships, such as asbestos, lead, mercury, waste oils are regulated.

Consequently, Environment and Climate Change Canada’s (“ECCC”) position is that the Export Regulations generally do apply to Canadian ships containing quantities of “hazardous waste” or “hazardous recyclable material” that are exported from Canada for recycling or disposal. This position appears to be in line with the decision reached at the seventh meeting of the Conference of Parties, the governing body of the Convention, whereby it was held that “a ship may become waste” as defined in the Convention.

The Convention also prohibits the export or import of wastes between parties and non-parties to the Convention.

The exception to this rule is where the movement of waste is subject to another treaty that does not detract from the objectives of the Convention.

For example, the United States is a non-party to the Convention but has various arrangements for allowing the movement of hazardous wastes to or from countries that are parties to the Convention. In particular, the CanadaU.S. Agreement on the Transboundary Movement of Hazardous Wastes (“Bilateral Agreement”) is one such arrangement between Canada and the U.S. that sets out specific conditions for the export, import and transportation of hazardous waste between the two countries. It is estimated that approximately 900,000 metric tonnes of hazardous waste — including ships deemed as waste — cross the Canada-U.S. border each year, and parties engaged in this industry should familiarize themselves with the requirements of the Bilateral Agreement.

LEGAL AFFAIRS ...parties ... must ensure that the movement of hazardous waste and other types of waste is reduced to a minimum.

The Bilateral Agreement requires that parties wishing to transport hazardous waste across the border must first submit, together with other relevant documents, a notice that contains a variety of detailed information about the proposed shipment including: (i) the type and amount of waste; (ii) the date and time the waste will be exported; (iii) the name of the transporter and method of transportation (air, highway, rail, water); (iv) the type of container used (drums, boxes, tanks, etc.); (v) the name and address of the party to whom the waste will be shipped; and (vi) the method of recycling, treatment, storage or disposal.

Parties submit the notice to the designated authority in the exporting country, which notifies the designated authority in the importing country of the proposed shipment. The designated authority in Canada is the ECCC and its counterpart in the U.S. is the Environmental Protection Agency. The importing country has 30 days (after acknowledging receipt of the notice) to review the request and indicate whether it consents or objects to the proposed shipment or whether it intends to alter the conditions of transport as described in the notice.

Responses to the notice are then provided to the designated authority in the exporting country. If no response is received within the 30-day period, the importing country is considered to have no objections to the shipment. Overall, the entire process can be quite cumbersome and parties should seek appropriate advice well before engaging in the transportation of hazardous waste.

It is worth noting that the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (the “Hong Kong Convention”), adopted in 2009 but not yet in force, outlines specific standards aimed at ensuring that ship recycling processes do not pose any unnecessary risks to human health or the environment. Although some in the shipping industry are critical that the Hong Kong Convention might actually offer less protection than the Convention, stakeholders are nevertheless hopeful that it will generate more inclusive and effective standards for ship recycling that can be applied universally.

Ultimately, parties to the Convention must ensure that the movement of hazardous waste and other types of waste is reduced to a minimum. The government of Canada has committed to a number of different measures to help protect the country’s marine environment as a part of the recently introduced Oceans Protection Plan (“OPP”). While ship recycling and disposal facilities are somewhat overlooked in the OPP, the plan does seek to address the issue of abandoned, derelict and wrecked vessels and sets out to promote education and outreach activities to inform owners of their responsibilities for proper vessel disposal. With recent estimates that over 50 per cent of vessels in the Canadian Vessel Registry are 30 years and older, the issue of abandon and derelict vessels may become more significant — and could potentially lead to a growth in the business of ship recycling here in Canada.

Mark Gill is a lawyer with Bernard LLP and can be reached at Gill@bernardllp.ca

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ARCTIC SHIPPING

Earliest ever west-to-east Northwest Passage voyage highlights changes in Arctic shipping

By Captain Duke Snider Martech Polar Consulting Ltd.

I

t is July 27 and MSV Nordica, the Finnish-flagged icebreaker operated by Arctia Offshore Ltd., is now two days out from Nuuk. The ship and crew are about to complete a record voyage. Having departed Vancouver on July 4, Nordica will have steamed more than 5,600 nautical miles across the North Pacific, through the Bering, Chukchi and Beaufort Seas, through the vaunted Northwest Passage of the Canadian Arctic Archipelago, Baffin Bay and Davis Strait in 25 days. This voyage now holds the record for both the earliest west-toeast transit of the Northwest Passage and the fastest by a commercial vessel.

MSV Nordica and sister ship Fennica are two multi-purpose DNV Polar 10 (Canadian CAC3/4) polar icebreakers operated by Arctia. These two ships have proven their incredible versatility in ice-covered waters around the globe during the “off season” from their winter icebreaking operations in the Baltic.

These flexible vessels have seen work in the North Sea, Russian, Canadian, Greenlandic and American Arctic, as well as in Russian far eastern Sakhalin.

The sisters transited the Northern Sea Route in winter and in 2015, after the completion of their charter in the

This voyage now holds the record for both the earliest westto-east transit of the Northwest Passage and the fastest by a commercial vessel.

Chuckchi Sea, completed the latest ever west-to-east transit of the Northwest Passage. This year, Arctia opted to carry out Nordica’s re-positioning voyage back to Finland from a charter in Sakhalin region via the Northwest Passage, saving time, and incidentally further proving the versatility of these excellent icebreakers.

Both Northwest Passage voyages required extensive pre-voyage planning and collaboration between Arctia, and Finnish, Canadian and American authorities. Martech Polar Consulting Ltd. provided in-country liaison and onboard ice navigation support in 2015 and 2017. Martech Polar Consulting Ltd.’s Captain Duke Snider participated directly in pre-voyage planning and onboard execution as designated Ice Navigator for both voyages. Also along for this voyage was Martech Polar trainee Ice Navigator RAdm (Ret’d) Nigel Greenwood.

As heavier old ice still impacted the shorter northern routes through the

Northwest Passage, the primary route selected for this voyage was the “southern route,” passing along the coast of Alaska through Amundsen Gulf, Dolphin and Union Strait, Coronation Gulf, Victoria Strait, Larsen Sound, Franklin Strait, Barrow Strait, Lancaster Sound, Baffin Bay and Davis Strait to Nuuk. On departure from Vancouver, sea ice remained close along the Alaskan coast from Wainwright well east of Point Barrow, in Dolphin and Union through to eastern Lancaster Sound and again off the eastern coast of Baffin Island. Normal summer melt would see much of the route open before the ship arrived, but ice choke points were expected to be encountered off Point Barrow, between Queen Maud and Lancaster and to the east of Baffin Island. MSV Nordica’s deep draft would preclude using Simpson Strait to avoid heavier ice in Larsen Sound.

Though this voyage began as a repositioning voyage, Arctia saw the opportunity to make space available for

Photo: Captain Duke Snider

50 — BC Shipping News — September 2017

Photo: BC Shipping News

ARCTIC SHIPPING

The Nordica leaving Vancouver on July 4.

observers and researchers. Due to the short timeframe between confirmation that the voyage would occur and commencement, formal permits for advanced scientific sampling and research efforts could not be obtained. However, a number of social and historical researchers from Finland, Norway and New Zealand took up the offer to join what was soon referred to as the “Arctic 100 Expedition” celebrating Finland’s 100th Anniversary.

Two work experience students from Nunavut Fisheries and Marine Training Consortium in Iqaluit and representatives of Canadian Coast Guard and United States Coast Guard also joined in Vancouver. The small Canadian contingent ensured that Canada’s own 150th anniversary was not forgotten and a suitable Canada 150 flag flew alongside the Suomi 100 flag throughout the voyage.

Also along for the voyage was a team from Associated Press that provided print, video and photographic coverage of the voyage.

From the outset, the voyage was blessed with unexpectedly good weather. The only heavy weather experienced, which lasted less than 36 hours, was mid-way across the North Pacific before crossing through Unimak Pass. By design, icebreakers are notorious for being poor “seaboats” as their hulls are more rounded to roll in the ice and bows that are built to deal with heavy ice pound through the waves rather than slice elegantly. All onboard were very grateful for the consistent good weather. Those of us experienced in polar operations continuously awaited the pounding we expected but never got and the newcomers soon doubted our “just wait, it will turn evil” admonitions.

For many years, the Coast Guard icebreaker stationed on the West Coast

would depart Victoria to arrive off Point Barrow mid to late July, often waiting patiently west of Barrow for the heavy multi-year polar ice pack to retreat northward permitting movement close along the Alaskan North Slope. The Arctic shipping season has been gradually growing year-to-year under the influence of global climate change, with the ice clearing earlier and then closing back down later as the years progress.

This year, CCGS Sir Wilfrid Laurier did not expect to close Barrow until the last week of July. MSV Nordica, a much heavier icebreaker, did not wait.

Nordica first encountered sea ice on the morning of July 16, approximately 43nm NE of Point Barrow. As we travelled eastward, we worked through progressively heavier ice, at times down to two knots, and carefully working around mostly first year ice up to 1.5m thick and in concentrations less than 6/10th.

Captain Viljanen wisely worked his ship through the more open water, rather than waste power and fuel attempting to force a way through the ice. Very little old or multi-year sea ice was encountered, a far cry from the norm a decade ago when the pack that sat along the Alaskan North Slope through the winter consisted mostly of multi-year ice. Before the end of the day, Nordica was again in mostly open water. For the following two days, we worked around a number of southern projections of the thick first-year ice that remained of the pack. Nordica ran in mostly open water working around occasional remnants of rotten ice until July 21 when we once again encountered more substantial sea ice in Icebreaker Channel far to the east. CCGS Sir Wilfrid Laurier had then still not reached Point Barrow, sticking to her normal schedule.

September 2017 — BC Shipping News — 51

Photo: Captain Duke Snider

ARCTIC SHIPPING

Captain Jyri Viljanen, Captain Duke Snider, Commander Bill Woityra, Captain Victor Gronmy and RAdm Nigel Greenwood.

Where MSV Nordica proved her capability was in the heavier ice that lay between Jenny Lind Island in Queen Maud Gulf and Barrow Strait. In 2016, M’Clintock Strait had been mostly ice free, which was a very rare occurrence, and as a slow freeze began in the fall, heavier multi-year ice was able to move into southern M’Clintock and Larsen Sound. Canadian Ice Service ice charts depicted rather daunting conditions ahead. High resolution satellite imagery provided by ENFOTEC service and viewed with the onboard IceNav ice information display and route planning computers indicated less onerous conditions. The ship’s Master, Captain Jyri Viljanen, himself a very experience Ice Navigator, and contracted Ice Navigator Captain Duke Snider quickly assessed the conditions as more than acceptable for a safe passage by Nordica. For the next 48 hours, Nordica worked through the mostly 9+ and 10/10th rotten thick first-year ice with occasional larger floes of second-year ice and old ice. At most times, Nordica only required two of four generators on line, utilizing less than 30 per cent available power.

The average speed of advance over the two days was five knots.

Most of the heaviest ice encountered was in the northern reaches of Larsen Sound and southern Franklin Strait where the incursions of old ice had occurred in the fall and early winter. Once in Peel Sound proper, progress was much quicker even though the Sound remained burdened by between 9/10th and total coverage from shore-to-shore. The ice in Peel, however, was predominantly rotten thick first-year ice…butter to the hot knife bow of Nordica. Once into Barrow Strait conditions were much more open, though manoeuvering carefully through less open ice regimes, and occasional icebreaking was still required, and the ship tread carefully as inclusions of glacial growlers and bergy bits were frequently spotted As we cleared out of Lancaster Sound and into Baffin Bay, we left most of the sea ice in our wake. In order to make better time we opted to head further east towards the Greenlandic coast to avoid the heavy pack ice that still clung to the east coast of Baffin Island. We steamed through mostly calm seas that allowed us to easily spot the smaller glacial growlers amongst the towering 52 — BC Shipping News — September 2017

icebergs. At times, Nordica was surrounded by more than 100 icebergs, as we carefully picked out way southeastward. We passed the last of the sea ice we were to see this voyage July 26.

This voyage has been confirmed by NORDREG as the earliest west-to-east Northwest Passage voyage on record. It may even have been completed in the quickest time. The Arctic 100 Expedition did not achieve this record simply because of global climate change, but because of the capability of a polar icebreaker and the experienced crew onboard. There is no doubt a lesser ship would not have succeeded in the same timeframe.

At the writing of this, six bulk cargo ships, some with other Martech Polar Ice Navigators onboard, remain drifting in Davis Strait, awaiting ice to clear from the entrance to Milne Inlet to load iron ore cargo for export from Baffinland Iron mines. CCGS Sir Wilfrid Laurier, escorting USCGS Maple was able to clear around Point Barrow inside of the persistent polar pack in the shallow coastal route before the pack closed the coast again. The deeper draft vessel MV Osprey is now waiting for ice to open again before it can proceed towards its destination in the Canadian Arctic.

Climate change is slowly allowing for a longer shipping season in the Canadian Arctic, but only for vessels that are built and crewed to deal with the ice that remains a hazard throughout the archipelago.

Next issue…How MSV Nordica navigates the ice.

The regional ice analysis for the Eastern Arctic on July 10, 2017. Supplied by Canadian Ice Service of Environment and Climate Change Canada.

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TECHNOLOGY

Robotics prompting shift in class surveys

By Julie Pray, ABS Senior Engineer

M

aritime interest in advanced inspection technologies is on the rise as the growing complexity of marine and offshore assets and the associated operational changes are prompting a shift in how classification services are delivered.

These new robotic technologies include tools such as unmanned aerial vehicles (UAV), crawlers and remotely operated vehicles, and ‘wearable’ technologies, all of which can be programmed to capture and share a richer array of ‘live’ information from the survey site. They have the ability to deliver significant enhancements in the efficiency of surveys while being less intrusive to the asset.

Unmanned aerial vehicles

UAVs — or aerial drones — can be remotely controlled, or programmed to fly autonomously on routes which are informed by historic data on a specific asset’s condition, targeting known areas of concern. They can collect visual data — such as still images, live-stream and recorded video — from difficult-toreach structures and areas, minimizing the risk that surveyors face when working in potentially hazardous areas.

Aerial drones can improve the efficiency of inspections and surveyor safety by remotely examining confined spaces and elevated areas, replacing riskier conventional means of access like staging, scaffolding and rafting.

At present, UAVs are best suited for general visual inspections to conduct condition assessments, quickly collecting visual data from the asset. They can also be used to monitor — through the photographic evidence or other data they collect — the known conditions of assets, periodically examining temporary or recent repairs in hard-to-reach areas, or known damage that does not require immediate repair.

But they currently have operational and remedial limitations.

UAV-enabled remote inspection techniques need to be considered on a case-by-case basis if any of the following conditions exist or are found during the course of the survey process: • There is an historic record indicating abnormal deterioration or damage to the structure.

• The condition of the structure or item affects the class of the asset.

• If an inspection reveals damage or deterioration that requires immediate attention.

• The condition or colour of the coating on the structure does not allow for a meaningful examination.

Experience has shown that, while the UAV is an effective way to detect defects and unsatisfactory conditions such as corrosion, other means of access may be required for a proper assessment and to determine which repairs to undertake.

In terms of class surveys, UAVs at present remain a tool to assist the attending surveyor when a visual examination of the structure is required. They hold significant promise and ABS is working with industry to evolve and adapt these technologies to maritime applications.

When they are utilized, compliance with regulatory requirements — in particular the International Convention for Safety of Life at Sea (SOLAS) and the Enhanced Survey Program 54 — BC Shipping News — September 2017

Remote-controlled drones have the ability to deliver significant enhancements in the efficiency of surveys.

(ESP) Code for bulk ships and tankers should be considered.

In addition to any generic risk assessment that an independent UAV operator may follow as part of their safety management system, a case-specific risk assessment should be carried out to identify any hazards and the requirement for additional risk-control measures.

The next step in the UAV’s operational evolution is for industry to determine the full scope of a drone’s ability to support close-up inspections. With technological advancements in onboard modules, for example, UAVs will be able to collect more data — such as gauging the thickness of materials during corrosion assessments, comparative image analyses, or mapping assets to create 3D models.

In general, robotics is supporting the trend towards the nondestructive examination of increasingly high-value marine assets and the parallel emergence of a less intrusive class survey process.

The challenge for asset owners and their independent technical advisors is to fully understand the potential that robotics has to change inspection regimes and asset-lifecycle management, and then develop the supplemental technology to deliver on that vision.

Ultimately, these automated inspections will be integrated to support “smart” assets — featuring sensors, barcodes and chip technology — to encourage more informed and rapid decision-making.

Wearable devices

Like UAVs, significant advances in wearable inspection devices, particularly eyewear, are supporting the real-time sharing of survey information.

Wearable technology allows surveyors to collaborate with experts in remote locations, bridging the constraints imposed by time and distance to encourage accurate and timely decision-making. With advanced visualization and augmentation, data can be superimposed on the assets, allowing them to be evaluated through the lens of their inspection history, with a hands-free, digital capture of records, narratives and targeted inspection applications.

Classification organizations such as ABS are in the process of validating the application of augmented reality, artificial

TECHNOLOGY intelligence and automation technologies to enhance the services they provide.

Pilot studies are assessing the ability of an array of wearable technologies to improve operational efficiency, streamline information capture and the visual display of information, and to create a collaborative environment for real-time interaction.

One objective is to evaluate how wearables could be used to provide onsite access to technical resources (manuals, Rules, etc.) to drive efficiency into the inspection process and expand the knowledge base with newly captured information.

Another goal is to use wearables to create a real-time interface between back office and field personnel, allowing for live consultation with technical specialists.

Over the course of a recent threemonth pilot study with offshore clients, ABS was able to take away some key lessons from applying wearable technologies in the field. By deploying surveyors to assets and setting up remote support teams, we tested the flexibility of processes, resulting in new methods of collecting information and enabling multi-party communication.

Ship owners see the value in wearable technologies and are excited about the potential application of these technologies to allow for more transparent and secure collection, storage and use of information.

In applying wearable technologies, class can improve data collection and sharing to create an environment where specialists in remote locations collaborate with field teams in real time to make faster, more informed decisions. Using wearables can dramatically change how classification services are carried out, expanding the capabilities of individual workers and streamlining operations.

In short, wearable technologies have the potential to change the way class societies work, how decisions are made and how technical specialists interact.

Remote, real-time communication can reduce operational downtime and other related costs by improving the subjectmatter specialists’ access to practical information. By leveraging less intrusive inspection options, personnel and assets are exposed to fewer hazards.

Combining these technologies with effective data collection and applications

Wearable devices allow for real-time sharing of information.

will transform the way surveys are conducted, shifting from prescriptive to a risk-based inspection regime, and allow finite resources to be focused on known problem areas.

ABS is leading class societies into the digital future by advancing innovation in data and advanced-inspection technologies to support a more predictive and less intrusive survey process, as well as a safer work environment.

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www.cmelimited.com September 2017 — BC Shipping News — 55

INTERFERRY

Stronger together: Innovation and the customer experience

I

nterferry’s 42nd Annual Conference takes place October 7-11 in Split, Croatia and promises to be another successful event where the industry comes together, networks and learns about the latest and best practices applicable to worldwide ferry operators.

Customer Service, Ship Technologies and Safety are the key themes for the conference, and innovation is the glue that holds them all together — looking at new, different and better ways to conduct the daily business of ferry operations. Sessions will examine topics as diverse as changes through digital technology, use of big data, customer-facing communications, building the customer experience, new ship technologies and why safety makes good business sense.

Mike Corrigan, CEO of Interferry, is responsible for putting together the conference speaker’s program and couldn’t be more pleased about the four keynote speakers he has attracted for the 2017 conference — David Rowan of WIRED UK, John Wright of WrightWay, Brent Perry from Plan B Energy Storage (PBES), and Markku Mylly from the European Maritime Safety Agency (EMSA).

“To say that I am excited about the program we have assembled would be an understatement,” said Corrigan. “The annual Interferry Conference is an opportunity for our members, their staff and others to learn about and share business practices that move their companies and the industry forward.”

In addition to talking about their areas of expertise, the four keynote speakers will focus on what’s here now, and what’s coming next. They will use their considerable knowledge and professional experience to flavor their presentations with the kind of stories that delegates will find are worth retelling.

David Rowan, Editor-at-large and founding Editor-in-Chief of WIRED’s UK edition, is a futurist and spends much of his time traveling the globe and talking with inventors, entrepreneurs and scholars in the technology space. He discusses the “next big things” that will materially affect the way we live and work. Rowan will apply his considerable knowledge and perspective to the ferry industry, preparing delegates for a future they may not have yet contemplated.

John Wright, Managing Director of WrightWay, is an expert in helping companies change their safety cultures. He has been instrumental working as a core member of BC Ferries’ team for almost a decade. John has observed the relationship between

Mike Corrigan

David Rowan

56 — BC Shipping News — September 2017

John Wright

the safest companies also being the best operated and most financially successful. He will talk about what it takes to transform an organization into a “just” safety culture.

Brent Perry, head of PBES, is a world leader in development and implementation of alternative, environmentally friendly fuel sources for the shipping industry — specifically the ferry industry. He is a visionary regarding potential energy sources for ferries and with the recent global recommitment to the Paris Accord, Perry’s presentation couldn’t be more timely.

Markku Mylly is Executive Director of the EMSA. He oversees the organization that arguably has one of the greatest impacts on worldwide safety regulations and standards. Mylly will speak about what’s new in vessel safety, what’s coming next, as well as provide a status update on current EMSA initiatives.

During the panel discussion on Intermodal Transportation our panelists from inside and outside the ferry market will share their insights and views on how transportation sectors are tackling the opportunity to combine their efforts and what developments could be on the horizon.

The Always On, Always Connected panel on mobile communications will explore the opportunities and challenges of empowering your customers with mobile, including satellite communications options and onboard digital communications.

Our Cooking with Social Media panelists will share their wide-ranging industry expertise and examine how social media can add value to your customers’ experience.

Other sessions and panels include: a Mediterranean Ferry Update; Ship Propulsion and Energy Technology; Electrification; Demographics; What’s New with Fast Ferries; Digitalization; Big Data; and Cybersecurity.

Up-to-date session and panel information, schedules and speaker biographies are available on the conference website.

The Interferry conference speaker’s program is on October 9 and 10, with a hosted welcome reception on Sunday, October 8. Conference organizers have also organized pre-tours on Saturday, October 7 and Sunday, October 8, with an Interferry Regatta scheduled for Sunday afternoon. Spouse and partner tours are planned for the Monday and Tuesday.

For complete conference information and to register to attend the 42nd Annual Interferry Conference, visit InterferryConference.com and follow @InterferryOrg on Twitter.

Brent Perry

Markku Mylly

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AAL Shipping.............................................................................................................................................. 17 Adonis.......................................................................................................................................................... 9 Amix Group................................................................................................................................................. 14 Association of Canadian Port Authorities Conference................................................................................... 53 Bernard LLP................................................................................................................................................ 42 Bracewell Marine Group.............................................................................................................................. 45 Canada Metal/Martyr................................................................................................................................... 55 Canadian Ferry Conference........................................................................................................................IBC Canadian Lifeboat Institution........................................................................................................................ 58 Canadian Maritime Engineering Ltd.............................................................................................................. 55 Chamber of Shipping................................................................................................................................... 36 Cruise Lines International Association - North West & Canada..................................................................... 44 CN Railway................................................................................................................................................ 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