BC Shipping News - September 2018

Shipping: Q&A with Shipping Federation President

Asian Ports: How do they stack up?

Autonomous Shipping: Impact on port security

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

Volume 8 Issue 7

NEWS

www.bcshippingnews.com

September 2018

Industry Insight Ewan Moir, President & CEO, Nanaimo Port Authority

Common priorities and issues offset unique opportunities and challenges

Terminals

North Shore Trade Area positioned for growth

SEPT

CP PM# 42161530 SEP 2018

$5.95

09

0

01 02 03 FnL1 EEZpbmVMaW5lIFRvcm9udG8PRmluZUxp LjUFVVBDLUEMMDYxMzk5ODA2NjczAA== bmUgVG9yb250AFcrC6wEMTAuNAI4MAMx 03 0096

B.C. Ports

61399 80667

3

NEXT

PHASE

OF

E X PA N S I O N

The Prince Rupert gateway anchors the West Coast's most efficient trade lane.

Following the completion of DP World's Fairview Terminal Expansion in 2017, the Port of Prince Rupert and DP World have agreed on terms of a project development plan outlining the next phase of expansion that will increase the capacity of the terminal from 1.35M to 1.8M TEUs by 2022.

LARGEST MULTI-PURPOSE MARINE TERMINAL ON CANADA’S WEST COAST Providing our clients with the best solutions for their unique business needs Efficient and flexible service l Over 50+ years of terminal handling expertise l Customized operations for all types of cargo l

604-581-2233 – interact@fsd.bc.ca – www.fsd.bc.ca

BUILDING CONNECTIONS WHEREVER WE GO. CP prides itself on building partnerships. We work with our customers, wherever they are, to identify their needs and help meet their objectives, while providing the best service along the way. CP is your full supply-chain solution provider that gets your goods to where they need to be.

Learn more at cpr.ca

BC SHIPPING

CONTENTS September 2018 Volume 8 Issue 7

NEWS

Cover Story 46

AUTONOMOUS SHIPPING

The impact of autonomous shipping on port security

By Allan McDougall

9

EDITOR’S NOTE

10

IN BRIEF

14

By Jane McIvor

Industry traffic and news briefs

INDUSTRY INSIGHT

Poised for greatness Ewan Moir, Port of Nanaimo Moir is applying the many principles and disciplines he has learned over the progression of his career to bring the Port of Nanaimo to the brink of remarkable growth.

20

HISTORY LESSON

Rats and ships A quest for world domination

By Lea Edgar

22

B.C. PORTS

34

ASIAN PORTS

NAVIGATION

50

MARINE TRAVEL

52

LEGAL AFFAIRS

54

MARITIME EXHIBIT

Southern Resident Killer Whales Moving towards environmental navigation

By K. Joseph Spears Taking marine travel services to a new level Vancouver Fraser Port Authority Understanding the Project and Environmental Reveiw Process

By Karissa Kelln

Common priorities and issues offset unique opportunities and challenges for B.C. ports How do they stack up?

By Jaya Prakash

Home Port Heroes of WWI and WWII at the Maritime Museum of BC

36 TERMINALS

North Shore Trade Area logistics infrastructure positioned for growth

By Darryl Anderson

40

SHIPYARDS

42

SHIPPING

14

22

48

Seaspan Shipyards has a new CEO Q&A with Shipping Federation President

36

On the cover: Nanaimo’s Duke Point Terminal (photo courtesy Port of Nanaimo); above: Ridley Terminals (photo: Lonnie Wishart — www.lonniewishart.com); right: Vancouver’s North Shore Trade Area (photo courtesy Vancouver Fraser Port Authority/William Jans); left: Ewan Moir (photo courtesy Port of Nanaimo) September 2018 — BC Shipping News — 7

YOUR CARGO – YOUR NEEDS – YOUR UNIQUE SOLUTION

September 2018 Volume 8/Issue 7

Publisher McIvor Communications Inc. President & Editor Jane McIvor

Contributing Writers

Darryl Anderson Cameron Cathcart Karissa Kelln Jane McIvor Jaya Prakash

    

Canada’s most northern ice-free multi-purpose port Capable of handling panamax vessels 200 acres of laydown space Up to a day and a half shipping advantage to Asia Breakbulk and bulk handling systems

www.stewartworldport.com + 1 (250) 636-2228

Michael Broad Lea Edgar Allan McDougall Ewan Moir K. Joseph Spears

Editorial Assistant Amanda Schuldt Advertising and Subscriptions Phone: 604-893-8800 Jane McIvor (jane@bcshippingnews.com) Advertising only: Lesley McIvor (lesleymcivor@shaw.ca) ANNUAL SUBSCRIPTION

Canada

USA Other Countries

Three Years $116.95 Cdn* Two Years $83.50 Cdn* One Year $44.95 Cdn* One Year $75.00 Cdn One Year $95.00 Cdn

Single copies *Canadian rates add 5% GST

$5.95 Cdn*

Subscribe online at www.bcshippingnews.com

Contents copyrighted 2018 McIvor Communications Inc. 300 - 1275 West 6th Avenue, Vancouver, British Columbia Canada V6H 1A6 Phone: 604-893-8800/Fax: 604-708-1920 E-mail: contact@bcshippingnews.com International Standard Serial Number ISSN: 1925-4865 / Published 10 times per year.

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

Proud member of:

International Sailor’s Society Canada 8 — BC Shipping News — September 2018

EDITOR’S NOTE

Photo: Dave Roels

An exciting future ahead

I

f there is one take-away from this month’s issue of BC Shipping News, it is the enormous potential for growth seen within each port serving Canada’s AsiaPacific Gateway. Through our Annual B.C. Ports Update, I am left with little doubt that B.C. stands at an exciting juncture — one that promises to deliver great benefits, not only for the marine industry, but for the businesses, industries and communities served.

There are clues and foreshadows of this potential throughout the following pages.

Vancouver, for example, while struggling with the issue of limited industrial land, is working to ensure every inch of the land that is available is operating at maximum efficiency and throughput (Darryl

Anderson’s article reinforces the efforts being undertaken on the North Shore).

Victoria may need to look at a fourth berth to accommodate a cruise sector that is flourishing. Nanaimo’s new CEO, Ewan Moir, is like a breath of fresh air, filled with new ideas that are already bearing fruit. Port Alberni continues to think outside the box, such as their feasibility study on creating a new marine service cluster. And there’s no need to even mention Prince Rupert with the billions of dollars worth of projects underway or being considered — this port is truly one of B.C.’s greatest success stories and, with new CEO Shaun Stevenson in charge, the promise of even greater things to come is assured.

We’ve also added Stewart World Port to the mix for this report. It’s a fairly new port but definitely one to watch considering the solutions it will provide for northern mine operators looking for an effective route to offshore markets.

As the Canadian Government undergoes a review of ports, pilots and other ways to improve fluidity for Canada’s ports, one can’t help but be optimistic for the future.

As I’ve said before, ports are like canaries in the coal mine — if they’re busy, it means the rest of Canada is busy. It’s a huge responsiblity and after speaking with each port CEO, I can’t help but feel excited about the future.

— Jane McIvor

Looking for LNG? Look no further—FortisBC’s high-capacity LNG facilities are strategically located near the Port of Vancouver in Canada, and we can fuel your ships at any port along the North American West Coast.

That’s energy at work. fortisbc.com/bunkering

Fuelling B.C. and the future

FortisBC uses the FortisBC name and logo under license from Fortis Inc. (18-028.5 02/2018) 18-028.5-Marine LNG_Print_Ad_7.125x5.059_P1.indd 1

2/21/2018 1:52:25 PM

September 2018 — BC Shipping News — 9

INDUSTRY TRAFFIC Strong attendance and focused agenda make for successful CLEAN PACIFIC Conference

T

he CLEAN PACIFIC Conference & Exhibition took place June 19-21 at the Oregon Convention Center in Portland, OR. The goal of CLEAN PACIFIC was to deliver a valuable event that covers the most pressing issues in prevention and response for oil and hazardous materials in the Western United States and Canada and offer ample time for attendees to network and cultivate the relationships that are crucial to preventing a spill and/or running a response. The event was a huge success and was well received by those in attendance. In total, CLEAN PACIFIC drew 506 attendees, 28 exhibitors and 16 sponsors with 72 per cent of those in attendance from the Western United States and Canada.

Before the event officially began on June 20, the Pacific States and British Columbia Oil Spill Task Force held their annual meeting at the Oregon Convention Center in conjunction with CLEAN PACIFIC. The meeting was used to update their stakeholders and the public on the work they do.

CLEAN PACIFIC officially kicked-off with a Keynote Address on June 20 delivered by William (Brad) Richy, Director

Innovation in Harbour Towage

www.samsontugboats.com 10 — BC Shipping News — September 2018

Photo credit: Dave Roels

604. 582.5110

of the Joint Staff; Director Idaho Military Division, Idaho Office of Emergency Management. Mr. Richy discussed lessons-learned from his experience with the Puerto Rico response and the importance of being prepared for a major disaster.

CLEAN PACIFIC ran a carefully planned conference program, with four concurrent tracks taking place: Prevention, Case Studies, Planning and Preparedness, and Response and Recovery. Conference sessions focused heavily on case studies, lessons-learned and best practices. In addition to the conference sessions, a workshop covering OSR 201 (Oil Spill Preparedness and Response for Scientists and Researchers), sponsored by API, was held.

Long breaks between sessions were scheduled in the exhibition area to draw attendees to the exhibit hall, including refreshment breaks, lunch and the Taste of Portland Reception. The exhibit hall was packed with attendees eager to check out new products and services, giving exhibitors ample opportunity to connect with buyers in attendance.

Between the caliber of attendees, a packed exhibit hall and top-notch conference sessions, the 2018 CLEAN PACIFIC Conference & Exhibition was one for the books! Look at what CLEAN PACIFIC attendees had to say: “Having been a faithful attendee of oil spill conferences in the US and abroad for the past 50 years, I have to conclude that CLEAN PACIFIC is one of my absolute favorites for its management, location selection, content, and unique blend of presentations & exhibits.” Alan Allen, Spiltec “There are many conferences with exhibitions, but CLEAN PACIFIC is the one that integrates and balances them into one event and ensure time and opportunity to talk, share and collaborate.” Matthew Sommerville, International Spill Control Organization “My first spill conference, and I was very impressed.” Rodney Cardinal, WCSS Save the Date for CLEAN PACIFIC 2019! CLEAN PACIFIC will return to Vancouver, B.C., June 18-20 at the Hyatt Regency.

For event updates and announcements, visit www.cleanpacific.org.

Exhibitors at the CLEAN PACIFIC Conference were kept busy with over 500 attendees in attendance.

NEWS BRIEFS

Congratulations Class of 2018!

Presenting this year’s graduates of the BCIT Nautical Sciences and Marine Engineering programs. On behalf of BC Shipping News and all our readers, we wish you the greatest success for your future.

Nautical Sciences: Back: Allister MacLean, William Campbell, Ben Murray, Ellen Wood. Front: Cassie Brooks, Arthur Georgeson, Rhianna Henderson (Class Valedictorian).

Marine Engineering: Back: Gerard Hol (Class Valedictorian), Scott McQuarrie, Kurtis Brown, Andrew Yakuhin. Middle: Nicolas Ortega-Carvalhal, Ayrton Savage, Jackson Collette, Alberto Flores Gutierrez, Elias David Molina. Front: Zachary Varga, Ivan Garcessa, Frank Benn.

September 2018 — BC Shipping News — 11

NEWS BRIEFS

Scholarship honours Jagdeep Bakshi

A

scholarship has been established to recognize the outstanding maritime career of Jagdeep Singh Bakshi, well known to Vancouver’s shipping community as an integral part of the Teekay team. Jagdeep’s career in shipping spanned over 40 years, starting at the age of 17 to work as an engineer aboard ships sailing around the world before joining Teekay Shipping in 1992.

The Jagdeep Singh Bakshi Memorial Award scholarship will support graduate students in the Master of Engineering Leadership in Naval Architecture and Marine Engineering program at UBC. To donate, please visit: https://memorial.support.ubc.ca/ jagdeep-bakshi/

Upcoming events Visit www.bcshippingnews.com for information on all upcoming marine industry events.

Canadian Ferry Operators Association 2018 Conference Whistler, B.C. (September 30 to October 2, 2018)

Interferry 2018 Conference Cancun, Mexico (October 6 to 10, 2018)

Maritime Security Challenges 2018: Pacific Seapower Victoria, B.C. (October 15 to 18, 2018)

CITT’s Canada Logistics Conference 2018 Vancouver, B.C. (October 24 to 26, 2018)

State of the Island Economic Summit Nanaimo, B.C. (October 24 to 25, 2018)

ABCMI Business Opportunities Conference Vancouver, B.C (November 14, 2018)

Full service ship's agency in Victoria 306 - 1208 Wharf Street Victoria BC V8W 3B9 Tel: 250-384-1653 Fax: 250-382-3231 Email: kingbros@kibro.com

BC SHIPPING NEWS

The Marine Services Division is a key solutions provider to the marine industry, handling the multiple waste streams generated by shipyards, cruise ships, freighters, tankers and other marine vessels. * Bilge Water & Sludge * Waste Fuel & Oil * Waste Water Treatment/Processing * * Hazardous Waste * Recycling Programs* Industrial Maintenance*

Full service ship's agency in Victoria

Victoria Waste Services Division: 250-380-0436 / 24 Hr. Emergency Number: 1-877-703-6421

“Local Expertise, Coast BC to Coast” 306 - 1208 Wharf Street Victoria V8W 3B9 Tel: 250-384-1653 Fax: 250-382-3231 Email:News kingbros@kibro.com 12 — BC Shipping — September 2018

www.envirosystemsglobal.com

In the next issue (October 2018):

Ferries Contact jane@bcshippingnews.com for advertising information.

LETTER TO THE EDITOR

Princess Louise: A notable exception to history of passenger ships Hi Jane, I enjoyed the article by Cameron Cathcart regarding the proposed monument to B.C.’s historic shipbuilders; it is indeed a worthy cause. However, I must draw the reader’s attention to an error in the history where it states that: “It wasn’t until after the Second World War that U.K.-built passenger ships, used for West Coast service, began to be phased out and replaced mainly by vessels built in B.C. Shipyards.”

The first and perhaps most notable exception to that statement is of course the CPR’s Princess Louise, which was designed by my Grandfather, Robert Allan, who was brought to Vancouver by Clarence Wallace in 1919 for the express purpose of designing this handsome ship, the objective being to use locally rather than Clyde-built ships. She was commissioned in 1921.

Other than that rather important fact, I hope that monument becomes a reality. It would of course be a much more fitting

industry statue to see Arthur McLaren in bronze chewing on his cigar end, but the politically correct threesome will have to do!

Best Regards Rob Allan

SYLTE SHIPYARD LTD.

HARKENTOWING HARKEN TOWING CO. LTD.

• Canadian-owned and operated, professional-grade marine towing service in the Pacific Northwest for over 65 years.

• Bonded for cross-border towing in the U.S.A.

SAFE AND EFFICIENT MARINE TOWING

Dedicated and experienced marine employees with decades of knowledge when towing cargo through local harbours and river ways.

WE'VE GOT YOU COVERED

Our outside waters fleet of 1000hp-to-1600hp tugs is available to meet your marine towing needs throughout the Pacific Northwest.

SERVICES Photo: BC Shipping News

20076 WHARF STREET MAPLE RIDGE, B.C. V2X 1A1

PH. (604)465-5525 FAX: (604)465-3060 EMAIL: sylte@telus.net

Ramp, Aggregate & General Barge Towing Ship Loading l Fuel Service l Water Taxi Log Boom Towing & Storage l Ship Docking Barge Moorage l Shore Services

604-942-8511 l info@harkentowing.com www.harkentowing.com 1990 Argue Street , PO Box 7, Port Coquitlam, BC, V3C 3V5 September 2018 — BC Shipping News — 13

INDUSTRY INSIGHT

Poised for greatness Ewan Moir President and CEO, Port of Nanaimo

N

o matter the sector — shipbuilding, manufacturing, engineering and construction, or even energy resource management — Ewan Moir has the proven ability of excelling when presented with a challenge. So when the opportunity arose to lead one of Canada’s major ports, despite having no direct, hands-on experience in port management, Moir again chose a path not yet travelled. As President and CEO of Nanaimo Port Authority (now branded as Port of Nanaimo), Moir is applying the many principles and disciplines he has learned over the progression of his career with the unique gift of understanding the big picture and, most importantly, recognizing the potential. To this end, the future for the NPA is on the brink of something remarkable.

BCSN: In reviewing your bio, I was impressed with the diversity of companies and industry sectors where you’ve played a leadership role. Could you provide a brief overview of your career and the strengths you bring to your role as President and CEO of the NPA? EM: Throughout the late 1980s, 1990s and early 2000s, I held a number of roles within the Ulstein Group around the world — project engineering and regional sales positions in Europe, Asia, India and Australia. In 1995, I became the President of Ulstein Maritime Ltd. which 14 — BC Shipping News — September 2018

It’s an opportunity to deliver long-term benefits by making the right decisions on projects and processes today that will outlast my career and potentially my lifetime. brought me to Vancouver, and in 2000, after Ulstein Maritime was purchased by Rolls-Royce Plc, I became the Director of Operations and Site Manager for RollsRoyce’s Canadian West Coast operations. From there, I was the International Marine Marketing Manager for Finning International; President and CEO for Fraser River Pile & Dredge; Senior Vice President with SNC-Lavalin’s global ports and marine engineering business (which took me to India in addition to Vancouver); President of Mainland Sand & Gravel; and, most recently, as President and COO of Pacific BioEnergy Corporation.

During my career, I’ve been fortunate to be able to take on responsibilities where, while I didn’t have hands-on experience in a particular area, I developed skills that allowed me to move between people, products and manufacturing; and sales, marketing and business development.

Getting my Master’s Degree at Queen’s University really helped me to put what I’d learned into perspective. It allowed me to mature in terms of being able to step into a new business and understand how all of the pieces of that business came together.

With all of the experiences I’ve had, I’ve always put my efforts into improving the well-being of a company on behalf of existing owners or shareholders. I found the position with the NPA to be a wonderful opportunity to work on behalf of the community. So it’s a bigger picture role.

It’s an opportunity to deliver long-term benefits by making the right decisions on projects and processes today that will outlast my career and potentially my lifetime.

BCSN: In truth, I do see you engaging the community in a greater capacity than your predecessors. Could you provide some insight into your strategy for engagement?

EM: The NPA has had challenges in the past when it comes to the perception of it within different elements of the community. In trying to ensure the perceptions are based on facts, we’ve really tried to step up our engagement. We are listening to what people say, correcting them when there are misconceptions but, very importantly, learning from what they’re telling us so we can do better. One of the ways we’re doing that is through hosting open houses — they are great opportunities for the community to ask any question they want and,

INDUSTRY INSIGHT unless there’s a non-disclosure agreement in place that would limit our response, they’ll get a full and honest answer.

Another illustration of our commitment to the community is an increased effort to work with First Nations. For example, the Saysutshun experience on Newcastle Island — part of the Snuneymuxw First Nations’ business plan — is included in our presentations at open houses.

This is definitely a priority area for us — to be able to put the Port into an open and transparent position with regard to the community and to provide opportunities and avenues to communicate, ask questions and learn.

BCSN: You’ve been in the role of President and CEO for almost one year now. What are some of the other priorities you’ve identified and how are you addressing them?

EM: Looking at the business element of the Port, irrespective of what we do, we have to be financially self-sufficient.

Everything we generate, we generate ourselves and need to invest it wisely. We have all of these federal assets and they have to be put to work and generate a return on investment. I think this is another strength I bring to the position — I can often look at challenges and find the right way to turn them into opportunities.

We recently created a new five-year business plan and, just prior to the plan’s creation, we underwent a visioning exercise. In addition to developing a new vision (To be the Vancouver Island port connecting the Island to the world via the Salish Sea, providing the safe and sustainable movement of people and goods while delivering economic growth that benefits Canada, British Columbia and the Island.), we also produced a purpose (With safety, security and sustainability top of mind, our purpose is to build and maintain port resources. We will stimulate projects and initiatives, in cooperation with community partners and businesses that will create new jobs and increase economic development and opportunities.).

To help us move toward our vision, we’ve separated operations into three sectors — heavy industrial (Duke Point); light industrial (Nanaimo Assembly Wharf); and the marina-based tourism sector of Newcastle Channel.

For Moir (centre), a top priority is engaging the community through regular open houses.

Regarding Newcastle Channel, there is a direct connection to Nanaimo’s downtown core. So in our minds, any changes we make will be a catalyst for change for the whole area. We’ve formed a user group committee with all of the stakeholders of the marina basin, and with the help of this committee we’ve developed a new design which can be used as a platform to build upon and expand the marina. The new design incorporates a gathering space for both tourists and the community — a floating section with three restaurants and a large area where people can meet for a cup of tea or a beer and listen to live music. Additional plans include a connection to Newcastle and Protection Islands.

We have categorized the Nanaimo Assembly Wharf as light industry. It is adjacent to an area that falls within the City of Nanaimo’s Waterfront Development Plan. That plan provides for a mix of residential, commercial and light industry so it’s important for us to find the right mix of operations that “fit” within that. It must also provide for long-term employment and well-paid benefits for the community including spin-off businesses.

Duke Point is designated as heavy industrial. Here you’ll find businesses like Western Forest Products, BC Ferries, Seaspan Ferry Services, Tilray (the medical cannabis producers), and Harmac Pulp Mill — all larger industries that work around the clock. This is the type of

September 2018 — BC Shipping News — 15

INDUSTRY INSIGHT activity that we’ll expand upon for Duke Point. We are responsible for 55 acres there and can accommodate additional activities.

BCSN: Raising the issue of available land, do you see any opportunities for Nanaimo given the Lower Mainland’s constraints on industrial land?

EM: As part of our business planning, we worked with a consultant to review publications from organizations like the Conference Board of Canada, the Vancouver Island Economic Alliance and the Mid-Island Business Initiative and pulled out the salient points. A common theme across these studies was the constraints for growth in Vancouver and the Lower Mainland becoming critical by 2020 and severe by 2025. Vancouver Island has a fantastic opportunity to present itself as being very complimentary to Vancouver and providing relief on growth pressures.

We have industrial land on the waterfront at a fair price and we’re only 27 nautical miles away.

The short sea shipping system that already exists with BC Ferries, Seaspan and DP World’s container barge facility can be expanded to provide more cohesiveness between the Mainland and the Island. The new Vehicle Processing Facility is a good example of this. Cars are delivered every day from the Lower Mainland to Vancouver Island dealerships and the car carriers then return to the Mainland empty. Now, we’ll be using the empty units to take back the cars from the new facility. And by using Seaspan Ferries’ terminal on the Fraser River or BC Ferries’ terminal in Tsawwassen, we can deliver outside of the busy downtown hub and take away from the congestion.

JONES MARINE GROUP LTD.

Photo: Dave Roels

General Marine Towing and Ship Berthing

PROVIDING TUG SERVICE TO THE PORT OF NANAIMO AND MID-ISLAND FOR OVER 50 YEARS Tel: 250-246-1100 Vancouver direct line: 604-669-3900 / dispatch@jmstugs.com

16 — BC Shipping News — September 2018

Again, we see ourselves as being complementary to the overall growth rather than as a competitor. We’ve had general discussions with organizations like the Vancouver Fraser Port Authority, the Pacific Gateway Branch of the Provincial Government and Transport Canada on issues like alleviating bottlenecks with the goal being to help facilitate growth for the entire region. The car processing facility is a classic case — initially, it would appear to be competition because it’s taking away from something that has traditionally been completed in the Lower Mainland. However, it couldn’t be accommodated there and the company had to look for alternatives. That’s where we stepped in to help.

BCSN: Over and above the opportunities provided by land constraints in the Lower Mainland, what other opportunities are you seeing for Nanaimo and the Mid-Island region?

EM: If you look at the history of Nanaimo and the Mid-Island, you can see the evolution in industry and examples of how we’ve had to respond to changing circumstances. Before the Second World War, coal was the main catalyst of growth for Nanaimo.

Then forestry was the main driver but since 2008 the model for that industry has changed and Nanaimo has had to rethink itself.

Nanaimo has been growing at a phenomenal pace yet the average age of the population continues to be aligned with the rest of B.C. — that is, it is not retirees who are growing the population numbers. We’re seeing more young families come here to escape the cost of living in Vancouver and the Lower Mainland and it’s creating tremendous opportunities for growth. For example,

INDUSTRY INSIGHT Vancouver Island University (VIU) now has close to 18,000 students. Many people have no idea they have programs ranging from apprenticeships all the way through to graduate degrees, including a focus on greater engagement with First Nations through programs and scholarships.

Most importantly, the VIU has been connecting with industry. The City, the Airport, the Port and other key bodies and industries from within the region meet as a group along with the VIU to talk about the projects being worked on so that everyone can understand the upcoming potential as it would apply to their particular area of expertise.

If you think about it, Vancouver Island has a population of almost 800,000 but it has a ‘just-in-time’ economy — that is, there are only two warehouses (Sobey’s and Quality Foods) and everything that’s coming over to the big box stores is coming via a container stuffed in Alberta or B.C. The day you have a big earthquake and supply chains are interrupted, there will be problems.

That’s something we’ve discussed here within the context of creating the environment for a logistics and/or industrial park so that people are comfortable with warehousing here on the Island. We have the right tools; we just need to pull it all together. The focus is no longer on one business or product but rather the community and its assets and how we can work together to move things forward positively. It’s not just about the Port. The Port is just a facilitator for growth.

At the end of the day though, we need to be able to do this without going into debt. Because our Letters Patent within the Canada Marine Act doesn’t allow us to borrow more than $6 million, we have to be innovative in our approach. There are a lot of projects we want to do that cost much more than we’re capable of financing on our own.

BCSN: That’s a good segue into your thoughts on the Port Modernization Review. I’m assuming the limit on financing is something you’ll want addressed.

EM: Yes, but it’s not just a simple change. Increasing the borrowing limit doesn’t really answer the bigger question of our ability to pledge assets against loans when they are technically not our assets — they are the Queen’s and there

Nanaimo’s new Vehicle Processing Facility, opening in early 2019, will fill car carriers that would otherwise return to the Lower Mainland empty, creating more efficiency for the supply chain.

September 2018 — BC Shipping News — 17

INDUSTRY INSIGHT is the issue of risk. We need to rethink the model of how ports access funding — a way that works for everyone — and the Port Modernization Review is a wonderful opportunity to do just that.

It’s been 20 years since the CMA and Letters Patent have been reviewed. I don’t know of any business that doesn’t continually evaluate its position and ask if it’s still doing the right thing. This is especially important given the changes that have occurred and continue to occur in the world markets and the concept of globalization.

BCSN: While we provide more detail about Nanaimo’s activities and trends in the B.C. Ports Update on page 24, could you highlight some of your expectations for future growth?

EM: To start, the container service sector is seeing strong growth. Between 2012, when we partnered with DP World, to 2017, we went from zero containers to just over 44,000 TEUs. It’s a sign of good work by DP World and the Port but also a sign of the Island’s economy. We’re seeing more manufacturing on the Island and

there are good opportunities for growth as more and more items are being shipped by container.

In terms of future growth for that sector, there are some great opportunities. We’re working with DP World on a revision to the model to allow for greater flexibility to changing circumstances. For example, if we could develop a system with international connections — not solely relying on the Lower Mainland before exporting abroad — I think that would add another really strong element to our capabilities.

If you are a shipper or manufacturer on the Island and need to get your product to the Lower Mainland before shipping offshore, you’ve just added a lot of cost.

An international connection through Nanaimo would be of great benefit to local manufacturers.

In addition to international connections, we need to look at the full supply chain.

If we had an industrial or logistics park, we have to find ways to feed it. Adding an international connection to our existing capabilities would nicely complement the short sea shipping between Vancouver

Island and the Lower Mainland and would add to the appeal of an industrial park here.

We’re seeing additional opportunities in other sectors such as forestry products, steel and project cargo. For example, we’re working with one of our forest product tenants to help them bring in different types of equipment to create wood chips.

We also see changes in the capacity of Lower Mainland terminals when it comes to steel and there are opportunities being discussed related to LNG Canada’s project, perhaps to take a portion of land for some small module manufacturing and then ship by barge to Kitimat. And again, not take it into the centre of Vancouver but rather directly to the client.

The last piece worthy of note is cruise.

Just because we have a cruise dock, it doesn’t mean a cruise line will just naturally want to visit. There’s so much more than simply offering berth space. At the end of the day, the Port’s net take on a vessel is about $7,000 or $8,000 but if you look further out into the community, the average expenditure for each passenger

Toplift North America is the sole distributor for the TOPLIFT FERRARI line up of Container Handlers and Heavy-Duty Fork Lifts.

The TOPLIFT FERRARI range is the result of the close collaboration of Toplift Group and CVS FERRARI, a world-leading manufacturer, renowned for its quality and structural strength of its products.

The TOPLIFT FERRARI machines are designed with the specific needs of the North American market and can withstand the harshest environments and applications.

1-866-TOPLIFT 18 — BC Shipping News — September 2018

l

www.topliftna.com

INDUSTRY INSIGHT that gets off the ship is $63. This is a huge economic benefit to the local community so we need to work collectively with partners like the City, First Nations, the community at large and tourism groups to attract cruise to the Mid-Island, much like Victoria’s model of marketing. The GVHA has done a superb job of getting everyone involved to provide a cohesive package to the lines.

While we’re not positioned as geographically well as Victoria, part of our business plan calls for working with many groups in the area to determine what we need to do to attract the lines.

They need to know that they’re going to make a return on their investment by bringing the ship here. That means having a lot of different experiences and excursions available to the passenger. I think there are some good opportunities, perhaps in the smaller pocket or adventure cruise market but we need to decide as a group whether we want to put resources into going after this business.

About Ewan Moir

E

wan Moir began his business career in 1988 at Ulstein UK in the marine shipbuilding support industry. Ulstein then moved him to Holland in 1989, Ulstein Singapore, then to the Ulstein Group head office in Norway and finally to Ulstein Martime Ltd. in Vancouver.

When the Ulstein Group was acquired by Rolls-Royce Plc in 2000, he became the Director of Operations and Site Manager for Rolls-Royce’s Canadian West Coast operations.

Additional positions held include President of Mainland Sand and Gravel; Senior Vice President at SNC-Lavalin; and President and CEO of Fraser River Pile and Dredge Inc. He also held a senior position at Finning International. His immediate past role assuming the position of President and CEO of Nanaimo Port Authority in October 2017 was as President and COO of Pacific BioEnergy Corporation, a wood pellet manufacturing company operating three plants in B.C. Moir has over 20 years of senior corporate business experience contributing to strategy and operational performance and is known as an analytical thinker with a strong record of initiating and implementing business strategies to develop sustainable and profitable growth. He labels himself a team builder, coach in skills development with extensive experience in managing a union environment.

He has a graduate degree - MBA Queen’s University, and is a Certified Professional Accountant. He also has an HND in Mechanical Engineering, from Southampton University College, U.K. Moir lives with his wife Lesley in Nanaimo. They have three adult sons.

BCSN: I must say, for someone who has never led a port before, you certainly have a good grasp of what needs to be done to take advantage of growth opportunities.

EM: It’s what I’ve done for most of my career. The only exception here is, as mentioned, I’m doing it for the benefit of the region rather than just one company. At the NPA, we’re trying to build a strong foundation that is transparent and integrated with the community. It’s important that we are connected to the community so that the community understands how their port can be a driver to create opportunities for everyone. BCSN

About Nanaimo Port Authority

T

he Port of Nanaimo is Vancouver Island’s largest commercial port, and plays a significant role in the local economy. The Nanaimo Port Authority (NPA) administers, controls, and manages the harbour, waters, and foreshore adjacent to Nanaimo. They also manage port safety, assist with emergency services (fire boat, first responder, patrol boat), and are keenly responsible to the local community.

The NPA oversees the terminals at Nanaimo Assembly Wharf Terminal, Duke Point, the Cruise Ship Centre and Helijet. They are also responsible for the inner harbour marinas, including the Pioneer Waterfront Plaza, the Visiting Vessel Pier for large yachts, Swy-A-Lana Lagoon Walking Pier and the Seaplane terminal.

As a major cargo facility, the NPA supports local, regional, and international businesses to ship goods on and off the island. They help business owners understand costs, port systems, logistics and economic benefits for their business shipping needs.

Environmental stewardship is also important to the NPA. By using the Duke Point deep sea facility, barges are used to ship goods to the Lower Mainland port to port, providing continuous cargo movement while reducing truck traffic and carbon emissions. This process makes shipping more efficient, economical, and environmentally friendly.

In conjunction with local support from Tourism Nanaimo/ Tourism Vancouver Island and the Nanaimo Hospitality Association Ambassador Program and U.S. and International cruise lines, the NPA works hard to increase the number of cruise ships to the port by showcasing Nanaimo and Central Vancouver Island as a unique destination. Many local businesses benefit, including retail, food and beverage, attractions and ground transportation.

The NPA promotes the Port, the City of Nanaimo and Vancouver Island to potential global clientele.

For more information: www.npa.ca September 2018 — BC Shipping News — 19

HISTORY LESSON Rats and ships Photo: Dave Roels

A quest for world domination

By Lea Edgar Librarian & Archivist, Vancouver Maritime Museum

R

ats and humans have lived side by side for so long and in every corner of the globe that we assume it has always been this way. But that is not the case. Rats were once native to Asia and it was our human world-travelling ways that created the booming populations we see today. It is a fact that when we set sail for new worlds, so too did the rat.

The two main species of rats are the Norway rat and the Black rat. Both are commensal species in that they are largely dependant on humans. These rats generally live along human migration routes. It is not known when this relationship began but it could date back many thousands of years. It is likely that with the rise of agriculture, rodents were attracted to farms, as were the wild cats ready and willing to eat them. Hence, the domestication of useful felines occurred. Eventually, when water-based trading developed, rodents followed food onto ships, and cats were brought on board to dispose of them.

When a ship carrying rats docks or sinks near a previously rat-free environment, it is called a rat spill.

The Norway rat is native to Mongolia and Northern China; and the Black rat was native to the Indo-Malayan region. Black rats arrived in Europe before the Norway rat but both species eventually took up residence there. Black rats were also the first to arrive in the New World in the 16th century. Norway rats joined — and eventually displaced — their comrades by catching a ride on settlers’ ships around 1755. Norway rats tend to displace Black rats in North American climates because they are very adaptable (especially in colder climates), their diet is varied, their breeding is frequent and they are more aggressive. The Norway rat, in fact, is found on six of seven continents (they are not found in Antarctica — yet).

When a ship carrying rats docks or sinks near a previously rat-free environment, it

A rat stowing away on a ship, carrying the plague further afield. Drawing by A.L. Tarter, ca. 1940. Wellcome Library no. 10478i.

20 — BC Shipping News — September 2018

is called a rat spill. Many islands along the coast of B.C. have been subject to this invasive species colonization. The spread of rats by ship causes numerous problems to both people and the local environment. This includes the spread of disease, destruction of property (chewing on wires, insulation, etc.), spoiling of stored food and harming or killing native species. Particularly vulnerable are ground nesting birds.

An example of a rat spill can be found on the islands of Haida Gwaii. There, bird species such as the Ancient Murrelet, have been driven away by the infestation of primarily Black rats. In 2011, Parks Canada, Haida First Nation and international partners worked to successfully eradicate rats on several islands in Haida Gwaii. The rats were first introduced to this area, as well as much of British Columbia, in the 1700s with the advent of European exploration and shipping in the region. They are known to occupy at least 18 islands throughout the archipelago. During the first phase of the project, the partner groups started systematically killing off the rats using rodenticide.

They were successful in making Arichika Island rat-free. However, neighbouring islands have seen rats reappearing as they are believed to swim from the adjacent islands. Therefore, truly eradicating them from the area will be a long and difficult task. In 2013, Phase Two began. Using an aerial technique proven effective in places such as New Zealand and Mexico, a bait containing rodenticide was dispersed from the air by helicopter. Even though the rats have yet to be eliminated fully, they are already seeing an increase in native bird species and shrews. As of 2016, Murchison and Faraday Islands were declared free of Black rats. However,

VANCOUVER MARITIME MUSEUM as of 2017, evidence of Norway rats on the island has been discovered. These rats are believed to be newcomers so the efforts are ongoing. Experts are using DNA to try to determine where the Norway rats ultimately came from.

In Prince Rupert, authorities are asking residents to collect rat parts (tails and ears) to use DNA to determine how rats came to be there. Prince Rupert was chosen because it is a main transportation route between the mainland and the rat-infested islands. Depending on the results of the DNA tests, local authorities could work with BC Ferries and shipping companies to try to stop the rats’ movements.

In 2018, Orkin Canada, a pest control company, declared Vancouver to be B.C.’s “rattiest city.” As Vancouver is Canada’s largest port, the rats there are attracted to water and the ships coming and going.

As green as it may be, recycling and composting also contributes to the problem in that curb-side containers offer the rats a food source. Ports, and the ships visiting them, now actively trap and poison rats in an attempt to control the populations.

A device called a rat guard is also used to try and prevent them from boarding ships on mooring lines. But these devices only appeared in the 20th century, long after the rats had effectively taken over the world.

Surely, if they were used many centuries ago, we may not be facing the invasive species problem we are now in North America, and indeed globally.

Sadly, the old ship’s cat failed in preventing this global infestation. Although the damage is somewhat irreversible, small-scale efforts, such as those on the islands of Haida Gwaii, may help to give native species a chance against the rats.

Areas where sensitive native species are found must be given special attention as to controlling or eliminating the rat population. With the movement of both people and goods — and therefore rats — on board ships, their elimination is unlikely.

But with proper controls in place on vessels, at ports of entry and in protected natural areas, the damage this invasive world dominator can cause could be curtailed.

Lea Edgar started her position as Librarian and Archivist for the Vancouver

Captain A. J. Hailey in uniform with a cat on the first C.P. R.M.S. Empress of Canada, ca 1920 (University of British Columbia.

Rare Books and Special Collections.)

Maritime Museum in 2013. She can be contacted at archives@vanmaritime.com.

John M. Horton, Marine Artist Paintings and limited edition prints for corporate offices, retirement gifts and marine art collections

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

For special commissions:

www.johnhorton.ca (604) 943-4399 / john@johnhorton.ca September 2018 — BC Shipping News — 21

B.C. PORTS

Common priorites and issues offset unique opportunities and challenges for B.C. ports

I

nfrastructure investment, access to funding, community engagement, environmental sustainability, transparent and consistent permitting processes...while they may vary greatly in size, stage of growth and specific opportunities and challenges, B.C. ports have much in common. Port Alberni needs to rejuvenate aging docks; Stewart World Port needs a railway; Vancouver needs a new container terminal. Vancouver, Victoria and Nanaimo have all increased their engagement with community stakeholders

and First Nations (the others already enjoy working partnerships and close collaboration). All, at one point or another, have experienced delays in permitting processes; all recognize the importance of meeting Canada’s demand for access to markets offshore; and all look forward to the results of the Port Modernization Review.

But, as BC Shipping News readers will learn from the following Annual B.C. Ports Update, generalizations seldom tell the whole story.

Port of Vancouver

I

t’s been another strong year for the Port of Vancouver with record volumes in grain and containers pushing overall tonnage up as a result. “It’s a good news story but brings with it a set of challenges around creating capacity for growth in the medium to long term,” said Robin Silvester. While recent federal government investment announcements and worldwide recognition of the port authority’s environmental initiatives have buoyed Silvester’s mood, critical shortages of industrial land and slow permitting processes continue to present hurdles for the Vancouver Fraser Port Authority President and CEO. Starting with the positive: Two investment announcements totalling almost $230 million made by the Honourable Marc Garneau, Minister of Transport, will see key infrastructure improvements to trade corridors. The projects will increase capacity for rail and port infrastructure throughout the Lower Mainland. “We’re delighted to have the Federal Government’s support and recognition of the importance of these projects,” Silvester said, adding 22 — BC Shipping News — September 2018

Photo: BC Shipping News

Improvements to trade corridors are a priority for Silvester and his team as terminals on both the north and south shores of Vancouver continue to invest in expansions. that this funding will provide a catalyst for partner funding agreements for a program that will approach close to one billion dollars. “The agreements as well as detailed designs for the projects are underway now.

In terms of breaking ground, we’ve still got a good few months to go before we get to that stage.”

Improvements to trade corridors are a priority for Silvester and his team as terminals on both the north and south shores of Vancouver continue to invest in expansions. “The North Shore is getting a lot of focus right now,” he said. “It’s exciting to see G3 coming together. This is a generational project to see a new grain elevator on the waterfront. Neptune is moving ahead steadily with their expansion work and Fibreco has started to move forward with their project to export grain. Work on the trade corridor will become increasingly important to ensure we can get

enough trains and cargo to those terminals and that’s why we’re so pleased with the federal infrastructure funding.”

On the South Shore, Silvester highlighted a focus around Centerm’s expansion, which, aside from a few final permits from Fisheries and Oceans Canada and Environment Canada, is ready to go. “We expect that construction will start in the next construction season to increase the terminal footprint by 15 per cent and the number of containers that can be handled at the terminal by approximately twothirds.” Linked to that, the federal funding announcement for corridor capacity increases on the South Shore included new access arrangements to the port at the Western end of the South Shore and building an overpass near Rogers Sugar to feed into Centerm. “These are going to be critical projects in terms of managing rail and road capacity.”

B.C. PORTS The other positive news coming out of the port authority is the success being seen with environmental initiatives like the ECHO Program and the vessel slowdown trials. Having recently been awarded the Lloyd’s List Americas Environment Award for the ECHO Program, Silvester noted that this initiative is getting a lot of recognition worldwide. “People want to learn more about the work we’re doing, how we’re doing it and the results we’re seeing. It’s to the great credit of everyone involved throughout the sector.”

He also reported great success in last year’s vessel slowdown. “Last year was tremendous. It was the first time a slowdown on that scale had ever been done in the world and we had a participation rate of more than 60 per cent. I’m optimistic that this year’s slowdown will be equally successful,” he said, adding that it was a “great credit to all the industry stakeholders and their understanding of the importance of protecting the environment. We’re learning so much through these trials that we know the slowdown will have a positive impact on the whales.”

In addition to the ECHO Program, another project Silvester highlighted was the New Brighton Park habitat enhancement project which saw the port authority working with Musqueam, Squamish and Tsleil-Waututh Nations, the City of Vancouver and the Parks Board. “We’ve started to see juvenile salmon using the habitat — Coho, Chum and Chinook are all coming back. Building habitat is important as an offset to growth in the future.”

With successes noted on improving the Port of Vancouver’s environmental sustainability, Silvester sees a shift in community perceptions. “About five years ago, we recognized clearly that building stronger relationships with the community at large was very important to be able to build a greater understanding of the port. It is incumbent upon us to tell our story, starting with the benefits the port brings — the jobs in the community and access to goods and markets — as well as the work we’re doing around protection of the environment — the habitat restoration work, shore power, protection of killer whales to name just a few examples.

That has been a strong driver of positive impressions and we see the general level of

IMS Marine Surveyors & Analytical Laboratories Ltd. Port of Vancouver, Canada Marine & Cargo Surveyors & Inspectors

Dry/Liquid Bulk/Containers l Ultrasonic Tightness Testing l Investigators & Expert Witness P&I Clubs H&M l Pre-Purchase l Superintendency l On/Off Hire Condition & Bunker

Main commodities handled:

24-Hour Service Since 1992 P: 604 298 9968 F: 604 298 4862 E: admin@ims-van.com labadmin@ims-van.com 223 - 3823 Henning Drive Burnaby, BC V5C 6P3 Canada

Vegetable Oils & Fats l Grain, Oilseeds, Lentils, Peas, Meal & Meal Pellets Concentrates, Sulphur & Fertilizers/Potash l Steel Cargoes, Pulp, Paper, Lumber & Logs Project Cargoes, Heavy Lifts & Yachts

Analytical testing, research & development on:

Vegetable Oils & Fats, Grains, Feed Pellets, Oil Seeds, Herbicides & Pesticides, Biodiesel, Chemicals & Petroleum Products

** New Genetic Lab Division with Real Time PCR test capabilities ** IMS offers a full range of cargo and ship surveying, as well as consultancy and testing services.

GAFT Certified Lab and Superintendent. FOFSA Analyst L1, FOSFA member Supertintendents, COPA Referee Laboratory, and IICL Certified Container Inspectors

Captain Jostein Hoddevik, MNI, President Dr. Tatiana L. Hoddevik, VP & Head of Laboratory

Celebrating 26 years!

www.ims-van.com

Steven Mo, Vice-President (steven.mo@td.com) Andrew Kostiw, Director (andrew.kostiw@td.com)

September 2018 — BC Shipping News — 23

B.C. PORTS: VANCOUVER

COME FLY WITH US!

MARINE TRAVEL SERVICES FOR THE COMMERCIAL SHIPPING INDUSTRY W E ’ R E A LW A Y S O P E N

• 24/7/365 in-house customer service • Local Canadian based agents and account management • Marine airfares – refundable & changeable • Full portfolio of marine, offshore and corporate airline contracts • Cloud based reporting & travel intelligence tools

LIVE SUPPORT TALK TO AN EXPERT TollFree: 877-734-7670 Tel: 604-734-7670 Email: Louise.Kawaler@flyissgmt.com

1201 – 1199 West Hastings Street Vancouver, B.C.

www.flyissgmt.com 24 — BC Shipping News — September 2018

trust in the port moving up. And we need that trust and support to be able to grow.”

With the positive however comes some negative and Silvester worried aloud about the looming crisis over industrial land. “It’s just so depressing to see what’s going on in the Lower Mainland,” he said of the industrial land lost to other users. “Over the last five years, according to Metro Vancouver analysis, we’ve seen 1,000 acres of industrial land lost. It’s becoming a crisis. We’re seeing companies locate their distribution facilities in Calgary instead of Vancouver because they can’t find land here. That’s jobs lost — high paying jobs in a city with the worst affordability in Canada. It’s a crime,” he said, pointing to the conversion of the old Flavelle Mill Site in Port Moody as the most recent disaster. “This is a 30-to-40-acre waterfront site with rail and deep water marine access and it’s being converted to residential condos. That’s a prime waterfront terminal site that’s never coming back.”

As for a solution, Silvester commends the efforts of Island ports exploring opportunities but cautions that the added costs and time will put those locations at a disadvantage. “Unfortunately, I think what will happen is that the transload activity will move out of Vancouver into Calgary and Tacoma,” he said. “The supply chain will become less cost-effective and we could potentially see slower growth.”

Silvester would like to see better regional planning for the Metro Vancouver area and greater forethought to future land use planning. He expressed optimism that the recent Industrial Lands Task Force (of which he is Vice Chair) established by Metro Vancouver will help and is hopeful that the Federal and Provincial Governments will become more engaged in the discussion.

Another area of frustration for Silvester is the “slow process” of moving through permitting with regards to the Terminal 2 project. “The fundamentals of the project are as sound as ever,” he said. “We continue to see strong container growth and it really underlines the need for the terminal.

Even factoring in all of the current and planned container terminal expansions around the coast (e.g., Fairview, Deltaport, Centerm, etc.), T2 becomes necessary by the mid-2020s. The permitting process is taking longer than we understood it

was meant to and that is a challenge for us because it means it’s unlikely that the terminal will be ready when needed. And that’s a bit frustrating.”

Silvester is hopeful that announcements for public hearings will be made soon and that a panel decision will be made next year with government approval the year following. “But that will be about three years after we initially expected the process to have been concluded and it will take at least five years beyond that to be operational. It’s a concern in terms of not being ready to meet Canada’s need.”

In comments that were similar to other port CEOs, Silvester was looking forward to participating in the Port Modernization Review. “The Canada Marine Act hasn’t been formally reviewed for years, so going through that process is healthy and positive,” he said. “Fundamentally, we do feel that the governance of Canadian ports works well — it’s more about looking for ways to improve. There is a good framework in place — i.e., ports are structured to focus on enabling national trade; protecting the environment while we do that; and consulting and considering the views of communities. We do think there are opportunities to improve some of the processes around access to finance and making transactions more timely and efficient.

I think it’s always good to have opportunities like this to hear what the community at large wants as well.”

Issues that Silvester would like to see improved include a more predictable, transparent and robust permitting process as well as access to funding. “Even for the Port of Vancouver, these issues become very important. If you use T2 as an example, there is a lot of complex financing to put together around that and the points where we need approval from the government can take quite a long time.

We’re fortunate that we have a strong balance sheet to be able to move major projects forward but even for us there are some projects of a size where we bump up against requirements for approvals that are complex and slow to achieve.”

Overall though, Silvester feels it’s an exciting time for the West Coast gateway. “Yes, there are challenges but the challenge of growth is much preferable to the challenge of not enough growth.”

BCSN

Prince Rupert CANADA

Vancouver CANADA

Expert logistics for a complicated world.

As a new world takes shape, we simplify trade.

Yes, we have strategically positioned Canadian marine terminals - but what sets us apart is our team of experts and our unceasing commitment to excellence. We improve efficiency, we solve problems, and we continuously look for ways to make your world a simpler one. For us going beyond is a brand of service that’s made us a leader the world over.

Visit us at dpworld.ca to find out more about DP World’s brand of expertise.

Marine and inland terminals, logistics and technology-driven trade solutions.

Nanaimo CANADA

B.C. PORTS: PRINCE RUPERT

Port of Prince Rupert

T

he Prince Rupert Port Authority Board of Directors could not have chosen a better candidate to fill the position of President and CEO than Shaun Stevenson. Stevenson’s 21 years of experience with the organization, including his last position as Vice President, Trade Development and Public Affairs, have already seen him in the lead for much of the strategic planning and business development activity as Prince Rupert has transitioned from a small, regional port to a major trade gateway over the last 10 years. Steering the Port into the next decade, Stevenson has set his focus on the tremendous opportunities for growth — not just in current business but in new, diversified capabilities as well. And with a priority on the continued development of partnerships — both within industry and the community — Stevenson is ready to take the Port to new heights.

At the foundation of Prince Rupert’s growth, the DP World Prince Rupert Fairview Container Terminal — now capable of a throughput of 1.35 million TEUs following last year’s completion of the Phase 2A expansion — will see further expansion to 1.8 million TEUs. The Phase 2B project was announced in midJune this year with the start of construction expected by mid-2019.

Stevenson noted that, in addition to the expansion, he and his team are also working on building services and capabilities that can add value as part of an overall port ecosystem. “Stuffing operations like CT Terminals with rail service lumber transload, or Ray-Mont Logistics with agri commodities factor significantly into the import and export logistics capabilities of the Port,” he said. “In addition, we’re 26 — BC Shipping News — September 2018

also integrating their operations with the terminal through digital and IT systems to provide shippers greater visibility of the supply chain.”

As noted earlier, a key to Stevenson’s strategy is the diversification of capabilities. Following that theme, he noted great support for Ridley Terminals and the introduction of the AltaGas propane terminal project as well as expansion into dry bulk cargoes. “We’re seeing a lot of interest for the liquid bulk market. AltaGas is the first to move forward in that area but Vopak is also looking at the feasibility of developing a large liquid bulk terminal on Ridley Island,” Stevenson said noting that the project “would add another 10 million tonnes per annum in liquid bulk capacity for propane, butane and other cargoes like methanol, diesel and vegetable oils that the West Coast is in dire need of to ensure that we can have market access for western Canadian energy production.”

A central tenet for facilitating the growth of the Port of Prince Rupert is the need to ensure that common infrastructure is there to support private sector investment. To that end, Stevenson and the Port will be undertaking a planning exercise over the next 12 months to identify and prioritize the infrastructure investments needed. “We have the potential to grow from our current 25mt of cargo to 50mt over the next 10 years but to do that, we need to ensure we are enabling that growth through enhancements of existing operations as well as new capacities.”

Stevenson added that, with more than $35 billion in trade going through the Port (the third highest in Canada), hundreds of millions of dollars of investment in infrastructure will be needed. “Partnerships

Photo: Lonnie Wishart (www.lonniewishart.com)

with governments, industry, First Nations and the community are critical to facilitate this as is investor confidence. Clarity and trust in the permitting process and environmental assessments that are robust, done in a timely fashion and protect the interests of all stakeholders is important to allow all of us to capitalize on the opportunities.”

In addition to highlighting the excellent working partnership between the Port, DP World and CN on the Fairview Terminal, Stevenson commented on partnerships like those with First Nations where there is entrenched economic participation in port operations and future expansion. “We’re really proud of that and other partnerships within the community that provide for a real commitment. A prosperous port is not just in the creation of jobs but in the investment we make that contributes a higher quality of life.”

Continuing on with the discussion about infrastructure funding, Stevenson was asked his thoughts about the Port Modernization Review and the limits the Canada Marine Act places on a port’s financing instruments. “It’s a challenge when looking for ways to fund infrastructure improvements that are needed to meet our mandate,” he said. “One of the things that the review will provide is for feedback in that regard.” He added that all ports are at different stages of growth. “In Prince Rupert’s case, we’re an expanding port with a need for significant investment in infrastructure so that the private sector can come in and build new terminals. That takes a thoughtful and committed federal infrastructure program to prioritize those investments that will support increased trade to the benefit of all of Canada.”

BCSN

RIDLEY ISLAND TRANSLOAD FACILITY Why CT Terminals

About Tidal Transport

Operated by CT Terminals (a Coast Tsimshian Enterprises / Tidal Coast

Established in 1999 and headquartered in Vancouver BC, Tidal Transport

Terminals LP), the Ridley Island Transload Facility provides shippers with

(Tidal) is a diverse Marine Services Company specializing in providing

easy access to and from the Port of Prince Rupert and the Trans Canada

first class and economic service to the shipping industry throughout the

Highway to the East. With a Secure Laydown Yard, Railyard and access

West Coast of North America. Tidal proudly serves more customers in

to the only large scale Roll-on Roll-Off Ramp (RO/RO) in Northern BC,

the combined fields of Stevedoring, Terminal Operations & Onboard

CT Terminals is strategically positioned to handle all types of Cargo.

Supervision than any other Canadian Company in its segment.

Services:

Ability to Effectively Transload Various Cargoes including Lumber, Breakbulk, Steel, Rebar and various types of Over Dimensional Cargo.

Load Adjustments, Repackaging, Cargo Storage, and Container Drayage also available.

Equipment:

Container Reach Stacker, Lift Trucks, Trackmobile, Shunt Trucks, Mobile Platform, 160t Hydraulic RO/RO Ramp and SOLAS Certified Scale.

Operating Hours:

7AM to 5PM, Mon - Fri Inbound car spotting 24/7, Mon - Fri

Site / Security

18 Acre Site = 9 Acres (Rail Head) + 9 Acres RO/RO 4 Loading Bays, Security Gates, Lighting & Fencing

Truck Type:

B-Train, Container Chassies & Flatbed

Car Type:

Bulkhead Flatcar, Centerbeam, Container Covered or Uncovered Gondola and Flatcar

B.C. PORTS: NANAIMO

Port of Nanaimo

W

hile President and CEO Ewan Moir discusses the “big picture potential” for the Port of Nanaimo in this month’s Industry Insight (see page 14), he also reviewed current activities and trends for this Annual B.C. Ports Update.

Looking at overall cargo volumes, Nanaimo continues to enjoy year-overyear growth of about 3.5 per cent in both imports and exports with the exception of a 23 per cent jump between 2015 and 2016 mainly due to logs and containers. Total volumes, however, only tell part of the story and, as Moir and his team recently underwent a five-year business plan exercise, new opportunities to expand the reach of Nanaimo’s Port have been identified.

28 — BC Shipping News — September 2018

Total volumes, however, only tell part of the story and ... new opportunities to expand the reach of Nanaimo’s Port have been identified.

The first of such opportunities was announced in June this year. The Honourable Marc Garneau, Minister of Transport, announced an investment of more than $6.3 million for a new 17-acre facility with a 60,000-square-foot Vehicle Processing Centre and supporting infrastructure to repurpose the existing Nanaimo Assembly Wharf as a multi-purpose general cargo terminal. Initially to focus on improving Canada’s supply chain for automobiles imported into the country, the project is expected to generate upwards of 200 jobs during construction

and an additional 100 jobs once the Centre is fully built out and functional. The first car carrier is expected in January 2019.

Moir expects the first year will see about 12,000 vehicles and grow to 50,000 when operators Western Stevedoring have completed a second-phase expansion.

Looking at the container sector, Nanaimo’s business has gone from zero in 2012 to just over 44,000 TEUs in 2017.

Expecting similar numbers for 2018, Moir reported on discussions with DP World about “changing the model” to provide for greater flexibility as they near peak capacity. “There are some great opportunities to grow this sector of the business to move up to the next level,” he said, adding that bringing an international connection to Nanaimo would bypass the Lower Mainland and allow Island manufacturers to ship directly overseas. “DP World is working on that. We’d have to make some changes — capital initiatives at Duke Point and we’re more than prepared to partner with DP to make that happen.” Indeed, this type of project reflects the NPA’s new vision, encapsulated by the revised tagline, Local Benefits – Global Reach.

A review of forestry industry stats saw the NPA grow at a rate of about 6.6 per cent for forest products and logs between 2016 and 2017. While positive, Moir sees the increasing containerization of products

B.C. PORTS: STEWART as presenting new opportunities. “Forest product exports in general are growing.

Lower-value logs are going offshore to China, Korea and Japan mainly and while we rarely load a whole ship, we’re usually loading a large percentage,” he said. “We see roughly 35 log vessels per year but also see a lot of growth in the containerization of forest products.” In just one example of new opportunities, Moir reported that the Port was working with the Teal-Jones Group to bring in equipment to create wood chips.

Steel is another commodity holding promise for the NPA. With Lynnterm West being prepared for the G3 project and Fraser Surrey Docks changing its product mix, Moir sees an opportunity to use the NPA to receive cargoes which can then be short sea shipped directly to clients outside of the busy Vancouver area. Similarly, ideas to increase project cargoes include opportunities associated with the LNG Canada project in Kitimat.

“The idea has been floated that we take a portion of land and establish a small module manufacturing operation where the product can then be shipped by barge directly to Kitimat,” Moir said.

In other news for the Port, Moir expressed excitement in welcoming Western Canada Marine Response Corporation’s expansion into the area. A new on-water spill response base designed for faster spill response for the eastern Vancouver Island area will be situated near Nanaimo Assembly Wharf. In addition to having the capacity to deliver equipment for a 20,000-tonne spill within 36 hours of activation, Moir sees potential for the new base to become a centre of excellence — a place where the community can come to learn about oil spills, including an education component for local schools.

Inclusion of the community in WCMRC’s new base is indicative of Moir’s philosophy on communications and partnerships.

“We’re making decisions today that will outlive our careers and, most likely, our lives,” he said. “To be able to make the right decisions, we need to be fully engaged with the community and with key community partners, including residents, City Council, First Nations, academia, business and industry. Gaining trust through open, honest and transparent communications with the many different stakeholder elements of the region is a top priority for us.” BCSN

H

Stewart World Port

aving only opened in 2015, Stewart World Port (SWP) has made significant progress in establishing itself as the most accessible port for northern mining projects.

“We’ve seen quite an uptick in project cargo over the last six months,” said President Brad Pettit. “While that majority has been equipment for mining projects, we’re also seeing wind and power generation equipment.” And as the mines get closer to production, Pettit was optimistic that this would translate into bulk cargoes moving through the most northern ice-free port in B.C. Now that SWP’s docks are fully built and in use, Pettit reported that the next infrastructure projects on the books will be a storage facility, with construction starting this fall, and a conveyor system that is scheduled for a spring/ summer 2019 construction start.

In addition to bulk mine resupply material, like cement, Pettit reported that discussions with producers of bulk wood products were proving positive. “There is a lot of low-grade fibre that requires a cost-effective route to tidewater to make it feasible,” he said.

“Until we came along, it was too expensive to move the product to more southern ports so SWP is a good solution for this.”

And with relationships established through the project cargo shipments, Pettit noted that many mines — primarily zinc, copper and gold — were in discussions with the Port as they near the start of operations. “We’re quite far along with one mine operator who

will be in operation by 2020 and a lot of queries are coming in from others.”

Looking just beyond the port to the transportation corridor, Pettit listed two significant projects — the first is a replacement for the bridge on Highway 37 which is scheduled for completion in 2019. The second, a proposed railway between Kitwanga and Stewart, is much more ambitious. “We’re gaining traction with investors and we’re working with both levels of government to move the project forward,” Pettit said.

“While no timeline is established yet, once financing is in place, we expect the permitting process to take about two years and construction to take another three beyond that.”

Pettit believes the billion-dollar rail project will create numerous opportunities. “You can’t open a newspaper lately without hearing about issues like congestion and the need to get markets open to Asia. Stewart is a really viable option as an extra artery to get goods to market and the rail project would really boost that.”

In looking at issues that are common for all B.C. ports, Pettit noted that the SWP docks were designed with environmental sustainability in mind. “We’re lucky in that our infrastructure is new, state-of-the-art, energy-efficient equipment. For example, spill capture is a big part of our dock design and once we put the bulk loading system in place, we’ll be able to capture, contain and treat deleterious materials. There was a lot of forward thinking that went into the design.”

BCSN September 2018 — BC Shipping News — 29

B.C. PORTS: PORT ALBERNI

Port Alberni Port Authority

Z

oran Knezevic, President and CEO, Port Alberni Port Authority (PAPA), has much to be happy about these days.

Welcoming a new spill response base, increased fishing activities and even three cruise ship visits scheduled for 2019 are just some of the highlights Knezevic reported for the BC Shipping News Annual B.C. Ports Update.

Starting with welcoming Western Canada Marine Response Corporation late last year, Knezevic already sees the difference they’re making in the community. “They’ve made improvements to some of the docks and are hiring local employees so it’s a great boost for Port Alberni,” he said, adding that WCMRC have leased part of the Port’s terminal facilities and water lot for their entire operations, adding 20 valuable jobs to community.

Another highlight to the year has been Independent Seafood Corporation of Canada’s record harvests and satisfaction with their location. “They’ve also established themselves well within the community and are in the process of renewing their lease for another five years,” said Knezevic. “And we have another similar organization, which has just signed a five-year agreement to utilize our dock offload and storage facilities so we’re pleased with the increasing level of activity on that front.”

Knezevic has been kept busy with a number of additional projects, including the development of a plan for log dewatering operations; replacement tenants for the old Cantimber site (part is already leased for fishing operations and another part is currently under negotiation to be converted to a water bottling facility); and working with Holland America to host three ships in 2019. If that’s not enough, the Port Authority also initiated and is supporting the Vancouver Island Economic Alliance (VIEA) in the development of a Foreign Trade Zone for Vancouver Island.

With the three cruise ships visiting in 2019, Port Alberni is seeing renewed interest in developing that sector. “We’ve established a cruise committee that includes the City, First Nations and tourism stakeholders to be able to build on the visits,” Knezevic said.

“Our goal is to create a unique cruise experience for both the ship passengers and our community. We’d like to see this sector grow and be able to welcome even more ship visits in future years.”

To that end, Knezevic pointed to the new promotional video the Port produced to highlight the area’s tourism attractiveness as a great step in the right direction for new investments, businesses and visitors.

Two other major initiatives are in the works for PAPA. The first follows through on the Port’s business plan for the development of a marine services cluster. With the recent funding assistance 30 — BC Shipping News — September 2018

Photo: BC Shipping News

from the Provincial Government and partnering with Canadian Maritime Engineering and the City of Port Alberni, the Port is commissioning a feasibility study to look at a shipbuilding and repair facility along with a floating dry dock. “We will be pursuing the expansion of our marine service cluster,” Knezevic said. “Being so close to the West Coast, we’re a great location for shipbuilding and repair of vessels transiting the west side of Vancouver Island but also expanding the cluster along the lines of WCMRC’s spill response base — that is, search and rescue, marine emergency services, including the anticipated expansion of Coast Guard emergency tug bases, and the like.”

The second initiative, the Port Alberni Transshipment Hub (PATH), has been a long-term goal for Knezevic and it looks like the project has been slowly moving forward and gathering support and interest from the industry. “Currently we have strong interest from two investment groups, one from China and the other from South Korea,” Knezevic said. “We recently signed a Memorandum of Understanding with a Korean Consortium which includes Port of Busan to undertake an in-depth feasibility study. A Korean delegation is expected to visit in the near future to move the project forward.” Knezevic further noted that he has reached out to both the Provincial and Federal government to invite them to participate.

“We believe we’re in the right time and right location and will see this project start moving forward at a faster pace.”

In addressing some of the bigger-picture issues, Knezevic, like other port CEOs, welcomes the Port Modernization Review.

“Ports are playing such an important role in the economy of the country,” he said, “and we are in changing times so I think something like this is long overdue. Kudos to Minister Garneau for moving this forward.”

Knezevic, however, has been thinking outside the box when it comes to changes he’d like to see to port governance. “There’s not a lot of collaboration and alignment amongst ports within the regions across Canada,” he said. “For the West Coast, we need an overarching body that addresses regional growth and gateway fluidity — one that considers more of an integrated approach and an overall short and long-term strategy for the entire coast.” Knezevic added that there are many issues and services within the maritime transportation segment that would benefit from greater co-operation amongst the ports. “Most pilotage services around the world fall under the jurisdiction of ports rather than as a stand-alone entity,” he continued.

“So pilots, emergency response, pollution response, marine domain awareness, land use management, capital infrastructure

B.C. PORTS: PORT ALBERNI investment — it would be more efficient if these types of services and issues were addressed at the regional level, by an overall encompassing authority — i.e., “BC Ports” as outlined in the diagram. ” Knezevic’s proposed model also takes into consideration greater participation of stakeholders, including First Nations and community groups.

When it comes to community and First Nations relations, Port Alberni stands as an example of the benefits of working together.

“We have a great rapport with the City, First Nations and the community at large,” he said. “For example, through our activity and promotion of Port Alberni, we attracted Steelhead LNG and introduced them to the Huu-Ay-Aht First Nation, as they embark on the development of the Kwispaa project. We received quite a positive response from the community when we developed Centennial Pier and Tyee Landing. Both of those facilities provide greater waterfront access for residents and the community.” BCSN

Citing a need for greater regional planning, Port Alberni’s Knezevic hopes the above diagram will initiate a discussion during the Port Modernization Review.

September 2018 — BC Shipping News — 31

B.C. PORTS: VICTORIA

Greater Victoria Harbour Authority

W

ith a million-dollar investment in infrastructure for Ogden Point, GVHA CEO Ian Robertson can’t help but feel great enthusiasm for Victoria’s cruise business.

Describing 2018 as a “record-setting year,” Robertson expects even more growth for 2019. “We’ve seen a nine-per-cent increase in passengers in 2018 over 2017 and expect a 14-per-cent increase in 2019,” he said. “When combined with crew, we will be very close to welcoming one million people to Victoria via cruise ship.”

The highlight for this year was definitely the arrival of the Norwegian Bliss on June 1. “The team worked very hard to

Representing the cruise ship industry in the Pacific Northwest, Canada, Alaska and Hawaii.

CLIA-North West & Canada supports relationships with local communities and governments on behalf of our member lines who lead the marine industry in policies and practices that foster a safe, secure, healthy and sustainable cruise ship environment.

Members: Carnival Cruise Line l Celebrity Cruises

Compagnie du Ponant l Crystal Cruises Disney Cruise Line l Holland America Line Norwegian Cruise Line l Oceania Cruises Princess Cruises l Regent Seven Seas Royal Caribbean International l Seabourn Cruise Line Silversea Cruises l Windstar Cruises

www.clia-nwc.com

Email: clia-nwc@clia-nwc.com * Twitter: @CLIA_NWC 32 — BC Shipping News — September 2018

Photo: BC Shipping News

prepare for her arrival, including the installation of new bollards for Pier A,” he said, adding that the next milestone will be the arrival of the Ovation of the Seas in 2019. To prepare for that vessel, as well as visits from Cunard’s Queen Elizabeth, GVHA will start work in the fall on upgrades to Pier B, installing a second mooring dolphin. To Robertson’s delight (and gratitude to the Provincial Government for facilitating the process), he just learned that the infrastructure project is eligible for federal funding under the Building Canada Fund which will provide up to one-third of the cost.

In the meantime, GVHA’s Master Plan for Ogden Point continues to make its way through the various approval processes.

“This year, we’ve been completing a traffic demand study and market assessment,” said Robertson. “Once completed, we hope to be in front of City Council for approval of the Master Plan by late 2018/early 2019.” The Master Plan outlines GVHA’s aspirations for Ogden Point, including a number of features to ensure public access and environmental sustainability within the context of encouraging and enhancing economic diversity (the plan is available for review on GVHA’s website).

Public engagement and environmental sustainability already play a large part in GVHA’s management of Ogden Point with Robertson noting that “by 2022, we’ll be operating one of the most environmentally friendly ports when it comes to ground transportation.” To help meet this target, GVHA has implemented a requirement for all buses to have an engine age of 2010 or newer by 2019. They are also requiring buses to have “silent” back-up beepers (“the high-pitched beeping sound is replaced by a sound similar to a duck quack”), a move greatly welcomed by residents in James Bay. On the subject of James Bay residents, who have in the past been strongly opposed to a cruise industry at Ogden Point, Robertson noted that a change in the mindset of GVHA, as well as steps like those above, is helping to create a better relationship.

“In addition to public information meetings and providing greater transparency in the decision-making process, we have made great efforts in engaging residents, including partnering with the Victoria Cruise Industry Alliance to host three (so far) tours of cruise ships for school kids in the James Bay area.” Those tours include a tour of the bridge, a review of environmental initiatives

B.C. PORTS: VICTORIA and, most importantly for the kids, a trip to the buffet.

Another highly successful initiative has been the Friday Night Breakwater Barge event. “We’re in our third year of opening up the barge that is adjacent to Pier A to the public,” Robertson said. “There is a live band, a liquor licence and a food truck. It’s become a very popular event and we see a huge cross-section of the community participate.”

Also under the heading of community engagement, Robertson was pleased to report on the effective collaboration with the Songhees Nation on a pilot project at the CPR Steamship Terminal. “They have occupied the lower level of the Terminal for just over a year and it has been working out very well. We’re both seeing what will happen this year and will then determine the way forward. It’s given us a good idea of possibilities as we talk about the development of Ogden Point within the Master Plan which calls for a First Nations village that would be a shared space for both the Esquimalt and Songhees Nations.”

Looking at non-cruise business at Ogden Point, Robertson sung the praises of Western Stevedoring and John Briant.

“John has done an amazing job of growing our non-cruise shipping revenue.

Numbers for 2017 were up 37 per cent over the previous year and 2018 will at least equally match that,” he said, pointing to the example of the Canadian Coast Guard vessel Sir John Franklin which was berthed at Ogden Point from the fall 2017 to May this year. “That was the first of three CCG vessels that will come in under contract with Seaspan’s Victoria Shipyards.” And while the cruise business is the priority from May to October, Robertson noted that there are a few other vessels — for example, yacht transshipments — which use the berths on noncruise days.

When asked about priorities for the coming year, Robertson reported that GVHA is in the process of accepting bids for the dolphin extension at Pier B and expects to start construction at the end of the 2018 cruise season in October/November to be ready by May 2019, in time for the arrival of the Ovation of the Seas. When asked about the longer-term plans for cruise, he remarked: “We’re watching Seattle and

...GVHA is in the process of accepting bids for the dolphin extension at Pier B and expects to start construction at the end of the 2018 cruise season... their plans for expansion very closely. If they add more berths, we’ll have to look seriously at a fourth-berth strategy,” adding that he’s not necessarily convinced it needs to be at Ogden Point. “We’re not ruling out Ogden Point but perhaps there may be another location in the south Island to help disperse traffic and benefits.”

And in what he describes as a “marathon, not a sprint,” Robertson continues to work on attaining home port status. While acknowledging that the target of 2020 may be too aggressive, he believes they will be within a few years of that original goal. “The key hurdle is pre-clearance.

We continue to work on that and we’ve had very positive discussions with U.S. Customs and Border Protection as well as the cruise lines who have expressed interest,” said Robertson.

For the time being, he is focusing more specifically at the smaller cruise vessels. “We have the infrastructure in terms of airport, air lift and hotel to be able to accommodate the smaller vessels and we’ll continue to move along on that path while putting together a business case for the Canadian federal government and the USCBP on preclearance.” BCSN

September 2018 — BC Shipping News — 33

ASIAN PORTS Asian ports

How do they stack up?

By Jaya Prakash

I

n moves to bolster its international footprint, China has been busy offering loans to nations or building ports for them. In most of the poor and underdeveloped nations, China is often welcomed with open arms as it is in Sri Lanka and Pakistan. Yet in others, such as in Myanmar, “help” is treated with derision and suspicion — so much so that its ambitions of developing a seaport on the western part of the country have been ‘scaled down’ amid concerns of huge cost overlays.

The Kyauk Phyi Special Economic Zone in Myanmar is not the only special case. Its strategic location on the western flank of the country where China’s maritime ambitions and overland Silk Roads intersect will prove crucial if the Chinese/ U.S. energy resource supply chain is interrupted — especially oil shipments through the Malacca Straits.

Myanmar’s decision may be a snub to Beijing, however the move highlights a deep undercurrent of fear in Myanmar of becoming ‘over reliant on China’ according to Richard Horsey, a former U.N. diplomat and Yangon-based political analyst, when speaking to Reuters News Agency.

In the face of everything that has been morphing in the maritime universe, port operations cannot be divorced from their commercial imperatives that easily.

In the global hunt for ports to build and operate, a number of entities can be seen to follow the pattern: Singapore’s PSA (Port of Singapore Authority) operates terminals on every continent with its most recent acquisitions being India’s Bharat Mumbai Container Terminals and a 60 per cent stake of Ashcroft Terminal in Western Canada.

They are joined in the maddening race by the likes of Denmark’s Maersk Lines, Switzerland’s Mediterranean Shipping Company and of course, Dubai Ports World.

As for China, its acquisitions do not quite conform to the commercial quest declared by other states and entities. China’s geostrategic interest — specifically the Belt 34 — BC Shipping News — September 2018

...with rising trade volumes and the generally accepted notion that ports are trade facilitators, the race to build ports is and has been relentless. and Road Initiative (an ambitious undertaking announced by Chinese President Xi Jinping to build a network of roads, rail and seaports linking the western front of China and extending to Europe) — explains the willingness of Chinese port authorities to pay higher prices.

Even so, with rising trade volumes and the generally accepted notion that ports are trade facilitators, the race to build ports is and has been relentless.

Singapore knows

Port development is particularly crucial for Singapore. According to that country’s port regulatory body, the Maritime Port Authority (MPA), the maritime industry contributes some seven per cent of the country’s Gross Domestic Product (GDP) and employs over 170,000 people — a headcount larger than the combined strength of its conscripted armed forces.

In 2017, spurred on by improvements in global trade and the repositioning of major shipping alliances, Singapore’s container throughput grew by nine per cent to 33.7 million TEUs, up from 30.9 million in 2016.

As recently as May of this year, while speaking before a largely shipping audience, Andrew Tan, CEO of MPA, typified the tide of frothy optimism following the rise in shipping volumes over the last two years as an “exciting period for the whole maritime industry.” He further noted that “many new developments are underway… as we prepare for the future.”

According to Tan, ‘that future’ is all about doubling the city-state’s and Pasir Panjang terminals, which if it comes to pass, will be able to handle mega ships up to 18,000 TEUs and beyond. A new port (to replace its present holdings) is purportedly to be built to impress the world with its autonomous guided vehicles,

automated yard and quay cranes and intelligent operating systems.

Something became inferentially instructive about what Tan said. All across Asia, the lack of technological port upgrades have strewn resources to waste and caused low productivity cycles. Many ports are still poorly conceived and lack proper dredging, hydrographic expertise, cranes and quay upgrades, let alone providing for climate change and rising sea-levels that will invariably hamper port operations in the future. This is an area where Singapore has triumphed and also trumped others.

Keep your eye on China and Malaysia

Singapore has been furiously signing pacts with MSC, CMA CGM, China Shipping Group, Ocean Network and others to augment what Tan described as initiatives that are vital “to grow our entire eco-system of shipping and maritime services.” While competition for ships and cargo has unquestionably been breakneck, China’s dominance in the port arena is undoubtedly outsized. In just a matter of years, beginning in the late 1990s, Shanghai quickly displaced Singapore’s numbers for throughput and, by 2015, most of the world’s leading ports — Shenzhen, Ningbo-Zhoushan, Hong Kong, Qingdao and Guangzhou — were Chinese, with Qingdao even having a cruise terminal.

With its buoyant economy is it any wonder that China’s ports and port activity are at the forefront? But what is awe-inspiring is the ability of China to duplicate and even upstage Singapore in seeking out stakes and the global market share in the world’s port businesses. And it has left Malaysia and Vietnam smarting in wonder.

Malaysia, according to maritime analyst Nazery Khalid, announced a major plan

ASIAN PORTS in 2017 to build a giant container terminal on Carey Island, not far from Port Klang which hosts two container terminals, namely Westports and Northport. The new port, says Khalid, will be backed by China Merchants Group and is meant to challenge Singapore Port and would fit nicely into China’s One Belt, One Road initiative linking international ports along key trade lanes to foster economic growth. Some quarters doubted its viability, citing that ports along the west coast of Peninsular Malaysia have yet to reach full capacity and the container shipping trade has not grown at a rate fast enough, amid the stuttering global economic recovery, to warrant such huge capacity.

Even so, Malaysia had also once toyed with the idea of building another port at a massive development project on four artificial islands dubbed the Melaka Gateway in the historic state of Malacca. Adds Khalid, the project entails the development of a deep sea port at Pulau Panjang and it would be developed by a Malaysian company, KAJ Development and Powerchina International Group. The port, slated to tap into the busy shipping traffic in Malacca Straits, will feature a container terminal, break and dry bulk terminal, shipbuilding and ship repair services, as well as marine engineering and manufacturing.

Malaysia’s new government is bent on scaling back the excesses of the former regime. Despite that the new government, Khalid believes, will give ports the attention they deserve.

Something rotten in the states of Indonesia and Vietnam

Just as deserving of attention is SouthEast Asia’s largest economy, Indonesia.

With more than 17,000 islands, the potential for port building is undeniably huge.

Yet that is just what is not happening. The scale of development involves not just the building of ports but a byzantine network of roads, railways and bridges to transport unloaded cargo into the hinterlands.

Something is noticeably absent in Indonesia compared to the rest of its neighbours. It is ‘cursed’ with rugged terrain and an almost ceaseless bout of natural disasters that makes building sustainable ports a nightmare of a challenge!

“The rugged terrain that characterizes virtually all of the country (meaning

Just as deserving of attention is South-East Asia’s largest economy, Indonesia. With more than 17,000 islands, the potential for port building is undeniably huge.

Indonesia) has made the development of inland transport infrastructure expensive and difficult. As a consequence, the nation has approximately 1,700 seaports,” said the Organisation for Economic Co-operation and Development in a September 2012 report.

That explains why Indonesia has always lagged behind its Asian neighbours in the Logistics Performance Index (LPI) tabulation. Jakarta now sits at 53 in its global ranking. The country cannot underestimate the importance of port expansion, argued Sarvesh Suri, Indonesia Country Head for International Finance Corp., the private equity arm of the World Bank. The nation’s overburdened ports and the heavy toll they exact is the bane of everything that is happening in the country.

Indonesian President Joko Widodo recently said that the country is open to foreign investment to help power the nation’s port and other infrastructure which the World Bank estimates will cost some US$500 billion over the next five years. No sooner were the words out of his mouth when, in May 2018, three Japanese and two Indonesian companies reached an agreement to build a port in West Java for an estimated cost of US$3 billion scheduled to be fully operational by 2027.

Now, the Widodo government envisions Patimban as becoming a major South-east Asian transport hub along with the port of Tanjung Priok in northern Jakarta.

Indonesia’s creaking infrastructure, coupled with its rapid economic development, is costing the country well over 20 per cent of its gross domestic product, a figure significantly higher than for most South-East Asian countries.

Just as hamstrung is Vietnam. The lack of proper financing, endemic corruption and, worse still, difficulties in getting land for infrastructure development have all but put a damper on port development in that nation. The largest port, Cai Mep International Terminal (CMIT), though significant for its ability to cater to vessels of 18,000 TEUs is a white elephant in more ways than one — shippers prefer to

use Cat Lai Port simply because it is closer to the manufacturing districts in Binh Duong and Ba Ria-Vung Tau. The non-sequitur of it all is for containers to be offloaded in the far-flung ports of either Hong Kong or Singapore, loaded onto smaller craft and sent back into Vietnam! Such operations have, unsurprisingly, bled the nation dry, with losses amounting to US$2.4 billion, a figure that could be described as obscenely excessive judging from how poor the country continues to remain even after World Trade Organisation (WTO) accession in 2007.

“If goods can be shipped with large vessels, goods owners can save US$200-US$300 per container compared to small vessels,” said Vietnam Port Association Secretary-General Ho Kim Lan to VietnamNet Bridge. Such apoplexy underpins all that has gone wrong with the country’s logistics and cargo transportation.

In 2016, according to the World Bank, Hanoi scored a dismal 2.68 on the Logistics Performance Index in spite of the nation implementing an online freight forwarding system designed to stem the slide in logistics documentation.

Conclusion

Despite impressive gains in port development and operations, the larger writ of scaling up and meeting today’s tough and laudable standards remains abysmally slow in Asia. Singapore does have a lesson or two for its Asian counterparts but other Asian states are still not entirely enthusiastic in accepting China’s help, as is the case in Malaysia.

While China may be viewed with suspicion in many parts of Asia, suspicion cannot be itemized in commercial arrangements and, because of the disparate and fractured face of development, ports and their development may not mean the same thing to everybody.

Jaya Prakash is a Singapore-based maritime journalist and can be reached at prakruby@hotmail.com.

September 2018 — BC Shipping News — 35

TERMINALS

North Shore Trade Area logistics infrastructure positioned for growth

By Darryl Anderson Managing Director, Wave Point Consulting

T

he iconic yellow sulphur hills at Kinder Morgan’s Vancouver Wharves provides a cheery greeting to Stanley Park tourists and serves as a sign to mariners that they are entering a powerhouse bulk cargo region. Combined, the eight marine terminals located on the north side of Vancouver’s Inner Harbour handled approximately 35 million tonnes of cargo in 2017. When the North Shore Trade Area Study was commissioned almost 10 years ago as part of Canada’s on-going effort to support the AsiaPacific Gateway and Corridor Initiative, the study’s ultimate goal was to assess the transportation and infrastructure conditions to determine the transportation infrastructure improvements required to accommodate and enhance with the least social, community and environmental impacts. Needless to say, it worked.

The initiative catalyzed the federalprovincial, port authority and regional stakeholder collaboration required to see the projects through from inception to implementation. Public sector entities included Transport Canada, the Port of Vancouver, the British Columbia Ministry of Transportation and Infrastructure, TransLink and the Greater Vancouver Gateway Council, the District of West

When the last of six North Shore Trade Area projects were completed in 2015, it marked a turning point for international trade.

Vancouver and the Squamish Nation.

Private sector parties included Canexus Chemicals Canada Ltd. Partnership, Cargill Ltd., Fibreco Export Inc., Neptune Bulk Terminals (Canada) Ltd., Richardson International, Univar Canada Ltd., Washington Marine Group and Western Stevedoring Company Ltd. Peter Xotta, Vice-President, Planning, and Operations, Vancouver Fraser Port Authority, observed that the development of the port’s railway model was instrumental in securing the necessary federal funding. The $283-million investments enhanced rail and port operations, improved access to terminal facilities for commercial traffic, and reduced congestion on the local road network.

When the last of six North Shore Trade Area projects were completed in 2015, it marked a turning point for international trade. The upgrades laid the foundation for the North Shore trade area’s present, unprecedented level of private sector marine terminal investment. Therefore, this article will focus on the generational

infrastructure and logistics improvements, positioning the area for future growth.

Bulk liquid cargo investment

The 125 acres that make up Vancouver Wharves handles more than four million tonnes of inbound and outbound bulk cargo annually. The dry bulk commodities of mineral concentrate from B.C. mines and smelters, sulphur exports and agricultural products are the most visible traffic.

However, since 2009, the facility has also specialized in diesel and biodiesel import and export. With construction scheduled to start in September 2018, a $32-million Diesel Handling Facility Expansion Project is anticipated to be operational in late 2020. The capital investment will lead to a very modest increase in vessel traffic with 12 ships and 24 barge visits annually.

Univar Canada Ltd.’s North Vancouver Distribution Centre (NVDC) is a bulk liquid chemical marine terminal. It handles caustic, glycols and ethanol and transfers via truck, rail, barge and vessel. Since 1979, Western Stevedoring has

Photo: BC Shipping News

The iconic yellow hills of sulphur at Kinder Morgan’s Vancouver Wharves signal the start of the North Shore Trade Area.

36 — BC Shipping News — September 2018

TERMINALS been the labour contractor. Over the last few years, the facility has upgraded their fender system, replaced timber piles and refitted their ethanol storage tank.

At the April 2018 North Shore Environmental Community Advisory Panel meeting, Robin Lee, Terminal Manager for NVDC, advised that the site is operating with steady volumes. Univar is hoping to add some additional rail track but it still requires some internal and external approvals according to Lee. Chemtrade completed the acquisition of Canexus Corporation in 2017. The North Vancouver facility has sodium hydroxide and hydrochloric acid production plants.

In 2009-2010, the infrastructure profited from a major technology upgrade that brought the facility to a state-of-the-art operation. Other improvements have included the brine treatment area containment project, marine structural repairs and two phases of bulkhead wall repairs and rehabilitation. Class 1 railway service is vital to even the smaller marine terminals, as evidenced by the fact that Rob Schultz, Chemtrade Logistics, advised the North Shore Environmental Community Advisory Panel in April 2018 that, due to limited railcar supply from CN, the plant was currently operating at reduced production rates.”

Steelmaking coal investment

Neptune Bulk Terminals (Canada) Ltd. is a joint venture of bulk commodity handlers, including Teck Resources Ltd., Canpotex Bulk Terminals Ltd., and Bunge Canada. Since 1970, the 71-acre facility has handled potash, coal, bulk vegetable oils, fertilizers and agricultural products.

Neptune Terminals is presently upgrading their steelmaking coal handling capacity. Construction began on July 20, 2018, and is expected to take until August 2020. The purpose of the upgrade is to increase throughput and improve coal operations. The equipment includes a new coal train dumper building at the east end of the site, which tips the coal from incoming railcars onto a series of new conveyors.

In May 2014, a Port of Vancouver project permit was extended until January 2020.

The amendment relates to a re-design and replacement of the west quadrant shiploader (at Berth 1), another mooring

20 million tonnes and more.” Concerning capacity, this equates to approximately one extra coal unit train per day, and about 0.3 additional ships per week.

The proposed capacity expansion will fit entirely within the existing terminal footprint. The process of transferring coal from trains to stockpiles to ships would become more efficient, allowing higher throughput, hence overall coal export capacity. Coal stockpiles are not proposed to be larger or higher.

Lindsay stressed that while Teck has not disclosed the magnitude of the potential cost savings, they are expected to be significant. Beyond that however is the reliability factor. “It’s really about having a long-term, reliable supply chain for various businesses. So that’s how we think about it.”

dolphin and a gangway at the west end.

The replacement shiploader includes a longer reach and more modern discharge chute, reducing particulate emissions during the loading process and allowing more complete loading of a ship’s holds as ships trend larger. The replacement shiploader includes 72 additional in-water piles to support the increased weight of the new loader.

Donald R. Lindsay, President, CEO & Director of Teck Resources Ltd., stated on the company’s first quarter 2018 earnings call, “We are accelerating planned upgrades to the Neptune Bulk Terminals facility…we’ll now spend approximately $120 million this year versus the $85 million we had disclosed before.” Lindsay stated on the company’s July 26, 2018, second quarter 2018 earnings call that “board approval for the Neptune Expansion Project has been given.” The total cost to the project, including what Teck has spent to date, is $345 million.

The upgrades will take Teck’s Neptune facility export capacity up to 18.5 million tonnes. However, Lindsay stressed additional upside potential, certainly beyond

Marine Services

l

Marine Projects

Grain cargo investment

Fibreco Export Inc. has successfully served the western Canadian forest industry by moving wood chips and wood pellets to customers throughout the world for over 40 years. It now handles a significant

l

Marine Salvage

l

Steel & Surplus

1.866.600.AMIX www.amixgroup.ca @theamixgroup

amixgroup

September 2018 — BC Shipping News — 37

TERMINALS portion of B.C.’s wood pellets destined for the European and Asian energy markets. It also handles canola meal pellets. In 2017, Fibreco phased out handling wood chips to make way for new business opportunities in bulk handling.

Fibreco is one of two major terminals in the North Shore Trade Area that will see a profound shift in their cargo profile in the coming years, thanks to a 2017 decision by Regina based AGT Food and Ingredients Inc. to enter into a long-term terminal services agreement. Consequently, Fibreco is constructing an agriproducts export terminal facility at their existing North Vancouver location. AGT’s agreement with Fibreco will allow the company to target increased volumes to their critical markets for pulses as well as diversified products such as durum wheat and other agri-commodities.

The agriproducts facility will include approximately 43,000 metric tonnes of dry bulk storage, rail capacity to receive full unit trains, and a new shiploader and expanded ship berth capable of loading Panamax vessels.

Fibreco President and CEO Kerry Lige noted that the new grain terminal project is on schedule for operations to start by mid2019. Construction will take place while the wood pellet business line continues operating. He also observed that the current trade disputes are impacting steel costs and is having a significant impact on their construction costs.

Maintaining logistics fluidity while completing an expansion project is is not without its challenges. Lige stated that “the new project is being built in an area that is segregated from the wood pellets. The marine berth will be shared as well as the rail infrastructure and dump shed.” His team is carefully managing the dumper, transition to ship loader and ship loader process because these areas have the most significant potential to impact cargo fluidity during the construction process.

“We do not have any long-term commitments with any canola meal pellet customers at this time,” Lige said, “but are positioned to accommodate handling this commodity in the future when required.”

When asked about the importance of the North Shore Trade Area projects, Lige commented that he was involved in high-level discussions on behalf of Fibreco. The company’s focus was on rail access since it is a significant issue for them.

Lynnterm is an 80-acre facility operated by Western Stevedoring, a diversified stevedoring contractor, a terminal operator and logistics company with operations throughout B.C. Historically, the marine terminal has acted as a consolidation point for forest products, steel and breakbulk cargo. Ships agents from Westwood Shipping Lines, G2 Ocean, Saga Welco As, Swire Shipping Ltd., Montreal Shipping Co. Ltd., Eastern Carliner and Pacific Basin Shipping (Canada) Ltd. are among some of the companies that support the marine traffic that uses the facility. A dramatic shift in the terminal’s cargo profile is on the horizon.

G3 Terminal Vancouver, an affiliate of G3 Global Holdings (G3), announced in late 2016 that it would construct a state-ofthe-art grain export terminal at Lynnterm West. The primary commodities to be handled at the new G3 facility include wheat, soybeans, canola, peas, corn (occasionally) and some specialty by-products.

38 — BC Shipping News — September 2018

Construction of G3’s Vancouver terminal started in 2017 and will take three years to complete. Brett Malkoske, Vice-President Business Development, G3 Canada Ltd. reported that “construction on the terminal project is progressing safely and according to plan.”

The plan includes the construction of new buildings, conveying systems, 48 concrete grain storage silos and a new berth for vessel loading. The maximum capacity of the terminal is estimated at eight million metric tonnes per year with onsite storage of up to 200,000 tonnes in silos. The rail loop will accommodate three trains of up to 150 cars each per day which will allow trains to travel to Vancouver, unload while in continuous motion and return to G3 Canada’s primary elevators without detaching from their locomotives. In addition to improved rail efficiency, G3’s Vancouver facility is designed with a focus on high-velocity receiving, shipping and best-in-class environmental and safety standards, representing the next generation in grain terminal design.

The Richardson International marine terminal’s $140 million expansion project and the Cargill Ltd. rail improvement project are helping to reinforce the North Shore Trade Area’s reputation as a bulk juggernaut.

Richardson International Limited has nearly doubled the storage and receiving capacity of its export terminal. The company added an 80,000-metric-tonne concrete grain storage annex, increasing storage capacity to 178,000 metric tonnes. The terminal now can handle more than six million tonnes each year to meet the growing demand for Canadian grains and oilseeds.

Richardson also upgraded and enhanced its rail yard and receiving system to handle and process railcars more efficiently.

Phil Hulina, Senior Director, Vancouver Terminal Operations for Richardson International, indicated that while their expansion project was completed in time for the 2016 new crop year, several investments led up to the project including the rail-track yard to improve logistics.

The facility handles a high volume of grain (wheat, canola, barley, rye, flax, grain and feed products) that originate from the company’s inland facilities. “Richardson’s project added flexibility and capacity to both handle the different variety and grades of grain (which requires segregation in bins) but flexibility to receive and handle the cargo when the railways deliver grain to the facility,” Hulina said. “For example, #1 Red wheat may require between 10 to 15 different segregations. The new facility is completely automated and dust-free and is a great asset.”

The expanded facility provides efficiency and helps them with their customer service. For example, the grain needs to be processed and cleaned at the terminal before loading the ship. Thus, the logistics associated with preparing and loading the cargo volume associated with a super-Panamax size ship can be handled more efficiently.

Hulina stressed that the Gateway has some pinch points but that the Port Authority does a good job in identifying issues and that the project was necessary for gateway railcar fluidity. He further expressed appreciation for being part of a collaborative process that sought to identify solutions. Since Richardson is paying for the investment as part of the Gateway Improvement Fee, the company needs to show the benefits of increased capacity with higher throughput.

TERMINALS In a three-phase project that started in 2015 and finished in the fall of 2016, Cargill’s North Vancouver terminal saw their existing rail-track system reconfigured including the addition of a new lead track and installation of a new rail car indexer to increase capacity and efficiencies. In 2017, as part of an electrical distribution upgrade, Cargill constructed a new 69kV substation at the North Vancouver grain handling facility. The investments were projected to lead to: • An annual increase in vessel calls from the current 88 to a maximum of 132 trips per year.

• A yearly increase in train locomotive trips from the current 325 to a maximum of 500 per year.

• A daily increase in the total number of railcars unloading at the terminal from 140 to 180 per day to a maximum of 200 cars per day during peak periods.

Conclusion

The review of the North Shore Trade Area logistics infrastructure reveals that

In large part, the increase in port throughput capacity is occurring within the existing terminal footprints and as a result of rail infrastructure upgrades. the marine terminals that handle liquid and dry bulk along with grain cargoes are well positioned for growth. In large part, the increase in port throughput capacity is occurring within the existing terminal footprints and as a result of rail infrastructure upgrades. It also reaffirms the fact that rail service is essential for unlocking Canada’s international maritime trade diversification opportunities. The significance of the Port of Vancouver’s rail model in helping to secure federal infrastructure funding highlights just one small facet of what is perhaps the most effective port and stakeholder collaboration process in the country.

Rail challenges experienced in late 2017 and early 2018 resulted in the Port of Vancouver suffering an 11.8 per cent drop in grain, specialty crops and feed cargo.

Industry observers will be looking to see

if improvements to the existing Thornton Rail Tunnel ventilation system to allow trains to pass through the tunnel more frequently (announced by the Honourable Marc Garneau, Minister of Transport in late June) will also improve rail logistics fluidity to the North Shore Trade Area.

The construction of a double-tracked section between Willingdon Junction and CP Junction on the Burrard Inlet Line, along with grade separations on Douglas Road and Piper Avenue in Burnaby, is also essential for increased rail capacity.

The project would allow for the staging of trains, thereby permitting more frequent Second Narrows rail bridge crossings.

Darryl Anderson is a strategy, trade development, logistics and transportation consultant. His blog Shipping Matters focuses on maritime transportation and policy issues.

BRINGING ENERGY TO THE WORLD teekay.com

September 2018 — BC Shipping News — 39

SHIPYARDS

Seaspan Shipyards has a new CEO

S

easpan Shipyards has announced that Mark Lamarre, who most recently served as Chief Executive Officer of Australian Shipbuilding Company (ASC), has been named Chief Executive Officer of Seaspan Shipyards, effective immediately. Mr. Lamarre succeeds Brian Carter, who has stepped down from his role at the company to pursue other opportunities.

Kyle Washington, Chairman of the Board of Seaspan ULC said, “We are thrilled to have somebody of Mark’s experience and calibre lead Seaspan’s Vancouver Shipyard to deliver on our long-term commitments to the Government of Canada under the National Shipbuilding Strategy, and to continue the excellent service of Seaspan’s Victoria Shipyard to the Government of Canada as well as to a variety of foreign and commercial customers.”

Washington continued, “I would like to sincerely thank Brian Carter for his many contributions to Seaspan over the course of his seven years with us. He has been essential to building Seaspan Shipyards into the company it is today, and we wish him the very best in his future endeavours.”

Lamarre commented, “I have long admired Seaspan Shipyards and am honoured and excited to lead the company at this important juncture. With its strong position in the industry and talented team of more than 2,000 employees, Seaspan is well-positioned PG Ad-June 1 6/8/2018work 2:29:35under PM to WMI-BCSN deliver HALF quality and2018.pdf predictable the NSS, and to strengthen our relationship with the Government of Canada.”

Lamarre is a seasoned shipbuilding executive with over 30 years of experience in operations, and business transformation. Most recently, he served as CEO of ASC PTY LTD, where he led a $600-million shipbuilding division engaged in the engineering, construction, activation and post-delivery support of Naval surface combatants to the Australian Navy. Previously, Lamarre worked at Bath Iron Works, the $1.2-billion shipbuilding business unit of General Dynamics Corporation, where he spent 24 years in increasingly senior roles, responsible for areas such as production engineering, planning, procurement, material control and operations, among others. Lamarre holds an MBA from Boston University’s Questrom School of Business and a Bachelor of Arts degree from Syracuse University’s Maxwell School of Citizenship and Public Affairs.

r u o y t r a h c ! e s r u O C n ow

d ! S o n o w is n a m e d h ig h in m a r in e r s a r e il l s o r b e g in k s r u o y e d a r pg ! t h e t im e t o U R IT IM E c a r e e r A M R U O Y r o f t r a in in g

S im u l at o r n e w B r id g e

in a c t io n !

Industry Canada

Industrie Canada

campuses

Ladysmith, Steveston and North Surrey (coming soon)

CEO

KEYNOTE SPEAKERS

Mike Corrigan, Interferry CDR Ben Lofstad, NATO

43rd ANNUAL

Mark Sutcliffe, CSO Alliance Robin Silvester, Port of Vancouver

INTERFERRY

CORRIGAN

CONFERENCE

LOFSTAD

SUTCLIFFE SILVESTER

SAFETY, SECURITY

& ENVIRONMENT

CANCUN OCT. 6–10, 2018

PLATINUM SPONSORS

Interferry Sets Course to Lead on the Ferry Industry’s Major Issues

disposal will be examined by a body of legal, shipbreaking, class society and BIMCO specialists.

The issue of ethical disposal is of growing interest at a time when fleet renewal programs are on the increase. The panel’s review of current best practice will demonstrate potential benefits despite cost increases due to higher regulatory standards.

As for future tonnage, a string of sessions will be devoted to environmentally friendly solutions for ship designs and propulsion. Presentations will cover everything from hull forms, hydrogen power and lightweight materials to zinc underwater coatings and ferry-specific ballast water management systems.

With world-leading speakers heading debates on three of the hottest topics in shipping – safety, security and the environment – global trade association Interferry has set the stage for its 43rd annual conference to be the most successful yet.

Long established as the “must do” event in the ferry industry calendar, the next edition takes place this October in Cancun, Mexico. Attracted by an action-packed program of conference sessions, networking opportunities and social events, the level of delegate registrations is already on track to rival last year’s record attendance of almost 500 participants.

Interferry CEO Mike Corrigan notes: “The extremely strong registration activity, added to sell-out support for our sponsorship and exhibition packages, is key to helping fund our unique role as the ferry sector’s worldwide voice. This work will be reflected in our conference themes, with topics ranging from counter-terrorism and firefighting to eco-friendly ship design and recycling solutions. I am truly excited by the cutting-edge insights that will be shared in Cancun.”

Security: Joining Forces to Minimise Risk The security sessions will start with two further keynote speakers. They include the Royal Norwegian Navy’s CDR Ben Lofstad, director of the NATO Shipping Center, which provides the prime liaison between naval authorities and the international merchant fleet. His overview of global terrorism trends will also highlight how the Naval Cooperation and Guidance for Shipping (NCAGS) Doctrine supports the safe passage of merchant ships in times of peace, tension, crisis and war.

Fellow keynote speaker Mark Sutcliffe is founder and director of the CSO Alliance of maritime security officers established in 2012. The membership of 700 in more than 40 countries has access to a password-protected support platform linked to all the major military and merchant marine reporting centres. Among latest developments, Mr. Sutcliffe will describe an initiative to combat cyberattack and will also present plans for a sector-specific security alliance between ferry ports and ferry operators.

This will be followed by an update from Interferry’s recently launched Security Committee, which is engaged in European Union studies on ferry security and is also preparing “Possible Measures” guidance to help operators make a bespoke choice of solutions best suited to their particular services.

The Environment: Marrying Commercial Aims with Sustainability Presentations on a raft of environmental challenges and opportunities will start with keynote speaker Robin Silvester, president and CEO of the Port of Vancouver. Canada’s largest port is internationally recognized for its sustainability initiatives, notably through incentives for port users to reduce carbon and noise emissions. As Mr. Silvester points out: “Over the past decade, overall cargo throughput has increased by 39% and operating revenue by 76%, showing that we can facilitate healthy growth in trade while also protecting the environment.”

In what promises to be one of the conference’s most illuminating sessions, ship recycling and

Safety: From Fighting Fires to Helping Developing Nations Interferry regulatory affairs director Johan Roos will report on the fire safety activities of the association’s dedicated working group, which includes close liaison with the European Maritime Safety Agency (EMSA) on ro-ro deck fire protection and the development of a second best practice guide. He will be joined by Fabio Croccolo, director of the Italian Ministry of Infrastructure and Transport, whose summary of the investigations into fires on board the Italian-flagged Norman Atlantic and Sorrento will highlight crucial preventive measures.

Firefighting techniques and training will then be reviewed by representatives from four specialist companies. Supported by case studies, their input will stress the need for crew and equipment readiness in an environment where first responders must always expect the unexpected. A later session on crew skills will highlight the importance of constant assessment with the aid of performance tracking technology.

Interferry’s specially formed Domestic Ferry Safety Committee will review progress on support for developing nations, which involves producing a risk assessment and action plan before approaching potential funding partners. Other speakers will outline solutions involving the adoption of affordable AIS responders and the use of automated draught indicator systems to cost effectively improve safety in the developing world, as well an update on ferry operations and incidents in Indonesia.

The two-day conference takes place on Monday and Tuesday October 8–9 as the centerpiece of a comprehensive networking and social program that runs from October 6-10 and provides an industry-leading opportunity to gain practical guidance and valuable new contacts.

Visit InterferryConference.com and follow @InterferryOrg for complete information.

SPONSORS

PLATINUM

PRESIDENT’S

GOLD

SILVER

TRANSPORTATION

BRONZE

CHARGING STATION

HAPPY HOURS

InterferryConference.com

LANYARDS

SPEAKER GIFTS

Interferry.com

DELEGATE APP

MEDIA

@InterferryOrg

SHIPPING

Q&A with Shipping Federation President

42 — BC Shipping News — September 2018

Photo: BC Shipping News

S

ince 1903, the Shipping Federation of Canada has represented ship owners, agents and operators involved in Canada’s world trade. As one who has been involved with the national association for the last 25-plus years — and as President for the last 14 — Michael Broad’s knowledge of the industry is surpassed by few. As we learn from Broad during our interview, while there is most definitely a unique set of challenges and opportunities for both east and west coasts, the goal for the Federation is always the same — to focus squarely on members and their needs.

BCSN: Michael, I’d like to set some context first. Could you provide the highlevel overview of your career?

MB: My background is as a shipping agent (B&K Shipping Agency Ltd. from 1976 to 2003) and I worked on behalf of liner and non-liner shipping companies in all sectors, with ports, terminal operators and other service providers throughout North America. This gave me experience in both commercial and operational issues. I was also a Board member of the Shipping Federation for a number of years and served as Chair from 1992 to 1993.

I feel confident that I know what ship owners, operators and agents need from a trade association and from government agencies. I’ve learned that most of our members find that regulations don’t impede their business as much as the interpretation and/or inconsistent enforcement of those regulations, and that is one area where we are heavily involved on behalf of our members. We get into the weeds on many issues because that is where the problems lie.

BCSN: Could you outline the mandate and mission of the Shipping Federation of Canada and further, describe your goals for an expanded presence on the West Coast and your plans and priorities in representing this region?

MB: The Federation’s mission is straightforward and succinct: “Through leadership and expertise, the Shipping Federation of Canada acts as the pre-eminent voice for ship owners, operators and agents involved in Canada’s world trade.”

Being federally chartered, established by

Michael Broad (right) stands with Scott Galloway, the Shipping Federation’s Director of Strategic Initiatives who works out of the West Coast office.. an Act of Parliament in 1903, we are a national organization representing foreign flag ships.

Five years ago, our members asked us to open an office in Vancouver to strengthen this national mandate. Our priorities for the West Coast are the same as the East Coast, Great Lakes, St. Lawrence River and Arctic — and that is to ensure that Canadian maritime law and policies support efficient maritime transportation, that our members’ ships are compliant with Canadian law (thus avoiding costly penalties and/or delays), and have appropriate services available to them throughout the country at a reasonable cost.

We have two staff in the Vancouver office, both with experience in international shipping and trade, who team up with our Montreal-based staff in providing excellent guidance and advice to our members across the country. Of course, there are regional differences in every part of the country, but the needs are the same everywhere. A ship owner in Hong Kong or Hamburg wants his ship treated equitably, whether it is in Prince Rupert, Thunder Bay or Halifax.

BCSN: How does the level of shipping activity in the West compare to the other regions in Canada? If possible, insight into the growth trends across the country

would be useful.

MB: International shipping is an enabler of trade and as such, follows the trends of world trade. As Canada’s trade with countries in Asia has increased over the past number of years, so has the amount of cargo shipped through West Coast ports. Although we haven’t seen the same percentage increases of cargo tonnage through the East Coast over the past 10 years, cargo liftings have certainly increased, and with Canada signing more free trade agreements, we hope this will translate into more trade and more opportunities for our members’ ships through all Canadian trade corridors.

BCSN: What do you consider to be the most significant trends in shipping over the past decade? Do you have any forecasts on the continuation of these trends?

MB: Certainly the most significant trend from an industry perspective has been the increase in vessel capacity which started about 2009, following the financial crisis. The industry is still dealing with this, although the increase in world trade over the past two years has eased the problem somewhat. This has led to a trend towards consolidation in all sectors of the industry and we can see this continuing over the next few years.

From a policy perspective, the most

SHIPPING significant global trend has been the focus on environmental issues and on the effort to mitigate the impacts of shipping activity, and this in a context where the volume of world trade — and consequently the demand for shipping services — continues to grow. We are going to see a period of even greater activity on marine environmental issues going forward, as we are looking at an alignment of major initiatives spearhead by the IMO that will be coming on stream over the next few years and decades. These include the requirement that ship owners install ballast water management systems on all their existing vessels between 2019 and 2024; the requirement that ships reduce the sulphur content of the fuel they burn to 0.5 percent as of 2020; and the IMO’s recently agreed upon objective for the shipping industry as a whole to cut its GHG emissions in half by 2050 with a view to moving towards decarbonization by the end of the century. So, the industry is pursuing a very proactive and ambitious environmental agenda on a global scale which will not only create tremendous challenges and

Ensuring that vessels have access to cost-efficient services has always been at the forefront of our agenda and definitely remains so today. opportunities but also lead to significant changes in terms of ship construction, design, operations and technologies — all of which will have impacts throughout the supply chain as a whole.

A major trend from a national perspective — and one that is likely to increase in scope going forward — is the effort to ensure the protection of marine mammals and of endangered whales in particular. In the last few years, we have seen a strong drive from both the industry and the federal government to develop and implement measures to ensure the safe co-existence of whales and vessels on both the East and West Coast of Canada.

BCSN: What are the biggest challenges facing Canada’s shipping industry today?

How is the Shipping Federation assisting the industry in addressing these issues?

MB: Ensuring that vessels have access to cost-efficient services has always been

at the forefront of our agenda and definitely remains so today. A very timely example of this is our extensive involvement with other stakeholders in the federal government’s effort to review and modernize the Pilotage Act. We see this as a much-needed opportunity to enhance the efficiency, transparency and accountability of this essential service.

We are also heavily involved in issues related to the availability (and lack thereof) of services at certain ports as this is essential to a fluid and efficient transportation system. Although these operational issues are not always as “exciting” as discussing the international trade agenda, they are vital to supporting the efficient movement of ocean vessels in Canadian waters.

On the environmental front, our members are strong proponents of taking effective measures to minimize the environmental footprint of vessels. The

Linking Vancouver Island’s Economy to the World with Two Deep Sea Terminals.

• Short-sea shipping with capacity to handle containers, bulk, break bulk, heavy lift and project cargoes.

• Enhanced infrastructure providing versatility and efficiencies for diverse cargo solutions and to meet a growing container business both locally and globally.

LOCAL BENEFITS — GLOBAL REACH

See our videos on project cargo and log-lift activities: deepsea.npa.ca

[Duke Point Terminal]

[Nanaimo Assembly Wharf]

Better solutions... @portnanaimo

250-753-4146 ext.229

www.npa.ca September 2018 — BC Shipping News — 43

SHIPPING ...if these trade increases are to be sustained over the long term, it will be essential that Canadian trade routes are positioned to move cargo as efficiently as possible. key is for the industry to be a proactive and constructive partner while at same time ensuring that legitimate operational and commercial realities are addressed.

BCSN: What are the best opportunities for growth and how is the Shipping Federation helping the industry achieve these?

MB: We have a federal government that is pursuing an ambitious agenda focused on identifying and developing new markets and opportunities for Canadian exporters, producers and manufacturers. Success on these fronts will translate into greater demand for marine and other transportation services to move the resulting increase in Canada’s trade volumes. However, if these trade increases are to be sustained over the long term, it will be essential that Canadian trade routes are positioned to move cargo as efficiently as possible. This means reasonable fees for ports, pilots and other services; accessible and fully optimized waterways; and efficient services on both water and land — all of which are objectives that lie at the heart of the work we do on behalf of our members from both operational and advocacy perspectives.

Success on the trade front will also put even more pressure on the government to assure the public that trade growth and

Innovative leaders.

Responsible stewards.

For over 100 years, Global Container Terminals has sustainably grown the Vancouver gateway with innovative technology and industry-leading practices.

GCT Canada is the nation’s largest maritime employer and a strong supporter of the Vancouver Fraser Port Authority’s goal to become the most sustainable port in the world. In 2014-17, we reduced emissions by 6% even as our volumes grew at the same time.

It is part of our Global Commitment to be a leading, sustainable terminal operator. To learn more about our responsible stewardship, please visit globalterminals.com/sustainability.

globalterminals.com

|

44 — BC Shipping News — September 2018

@BigShipReady

marine safety are not mutually exclusive, but can be achieved as part and parcel of the same process (and indeed, these are pressures that we are already seeing — especially on the West Coast).

That’s why it is so essential to ensure that government initiatives to enhance marine safety are evidence-based; reflect the marine transportation industry’s strong safety record in Canadian waters; and make a concrete contribution to safety, environmental protection, and the efficiency of marine transportation for the benefit of all Canadians.

BCSN: There are a number of government initiatives currently underway. Could you provide some insights into the Shipping Federation’s position on these?

MB: Starting with the Transportation Modernization Act, a key element from a maritime perspective is that it allows foreign flag carriers of any ownership to reposition their empty containers between Canadian ports on a non-revenue basis which was previously prohibited under Canada’s Coasting Trade Act. Not only will this enable carriers to use their transportation assets in the most efficient manner possible (given that they will no longer have to reposition the empties by either moving them on rail or importing them from overseas), it will also make Canadian trade routes more logistically efficient and offer Canadian exporters additional capacity at a more competitive price than is currently the case.

The Transportation Modernization Act also provides opportunities for increasing the efficiency and transparency of Canada’s rail freight system through measures such as new reporting requirements for the railways (with respect to both rates and performance) and stronger shipper remedies for resolving rail service disputes, which could also be used by ocean carriers when they contract with the railways for the carriage of intermodal or other cargoes.

Further, the Act contains a new remedy that gives the Canadian Transportation Agency “own motion” power to undertake investigations of rail service problems and issue corrective orders (subject to approval from the Minister of Transport) without waiting for a formal complaint to be filed by a shipper. We believe that this could potentially enhance the government’s ability to respond proactively to systemic rail service issues (such as those that occurred this past winter) and therefore avoid costly disruptions in the transportation network in the future.

Regarding the Pilotage Act, overall, it is our view that although the Act has served as an excellent tool for ensuring the safety of navigation in Canadian waters, the current structure has led to a system that is unable to control costs or consistently provide users with the level of service they require in a highly competitive marine transportation economy. This is because the Act does not provide adequate checks and balances to counteract the effects of the monopoly structure under which the system operates.

Action to address issues such as the lack of transparency, the need for enhanced accountability of pilot corporations, the primacy of regulation over contractual negotiations and the need for greater focus on service efficiency and new technology is much overdue. After close to one year of consultations, Marc Grégoire (the Chair of the Pilotage Act review) has delivered a set of recommendations that provide a strong, modern, well-grounded and balanced framework to address issues that have plagued the regime since the Pilotage Act was introduced in 1972. It is imperative that

SHIPPING the legislative amendments necessary to implement these recommendations be introduced as early as possible in support of a modernized Canadian transportation system.

Another Act that is top of mind is the Oil Tanker Moratorium Act. We believe that the proposed moratorium is challenging when viewed through the lens of the safety record of maritime transportation in Canadian waters. In fact, under a 2012 TERMPOL Review Process Report, Transport Canada concluded that the existing regulatory regime, combined with the implementation of enhanced safety measures, could support the safe movement of oil through the northern coast of B.C. We are not aware of any factual changes that have occurred since 2012 that would have led to a complete reversal of this position or support an outright conclusion that the risks of transporting oil through the north cannot be mitigated by means other than a moratorium.

It is also difficult to reconcile the federal government’s approach with the fact that millions of tonnes of oil and petroleum products move safely in and out of ports on the East Coast of Canada every year and that Canada has not experienced any spills over 1,000 tonnes in the last 10 years, nor has it experienced a single major spill of crude oil during that period.

Although it is certainly true that no industrial activity is free of risk, it is important that the assessment of such risk be rooted in evidence. Throughout the discussion on the proposed Oil Tanker Moratorium Act, it has remained unclear to us whether the moratorium is really about the safety of transporting oil in Canadian waters or whether it is actually about Canada’s ability to engage in certain resource extraction activities (and the social acceptability related thereto).

Our submission to the Parliamentary Committee also recommended that the Act’s review mechanism be strengthened to provide for a periodic review (no longer than five years after implementation) of the need for the moratorium itself. The review would be based on consideration of evolving circumstances such as the ongoing strengthening of response capacity on B.C.’s north coast.

BCSN: Are there other government initiatives that are on your radar?

MB: The federal government has launched a flurry of policy initiatives through the Oceans Protection Plan (OPP).

If those initiatives are to be effectively prioritized and implemented, we need to have better data on the existing marine safety record in Canadian waters. Although several entities are currently compiling data on various aspects of marine safety — including the Canadian Ship-source Oil Pollution Fund, the Transportation Safety Board and to some extent the Canadian Coast Guard — that data suffers from limitations in terms of scope and/or content.

We strongly believe that the development of a consistent, transparent, accessible and comprehensive set of data on marine safety in Canadian waters is a pre-requisite for the efficient implementation of the Oceans Protection Plan.

On the conservation front, the shipping industry and the government are focusing significant efforts on developing and implementing mitigation measures to reduce the negative impacts of whale-vessel interactions on both the east and west coasts.

It’s worth highlighting that this is something the industry was involved in well before endangered whales became a priority issue under the OPP, with stakeholders working proactively with the science community to move shipping lanes, create areas to be avoided and implement voluntary slowdown measures. Ship owners, masters and crews operating in Canadian waters are committed to the safe co-existence of ships and whales and are working hard to ensure that mitigation measures are designed to deliver on both objectives, i.e., protecting endangered whales while minimizing impacts on trade route efficiency as much as possible. It is also worth noting that effective management of whale-vessel interactions is based in large part on the availability of data which in turn requires monitoring activity. Therefore, investing in and deploying an appropriate mix of whale detection technologies is essential if we are to be successful in our protection efforts.

BCSN: Michael, thank you for such insightful comments. Any last words?

MB: Perhaps just to return to what I said at the beginning of this interview, which is that our priorities will always be to protect and promote the interests of our members while providing them with the highest possible level of service.

September 2018 — BC Shipping News — 45

AUTONOMOUS SHIPPING

The impact of autonomous shipping on port security

By Allan McDougall, Knowledge Advancement Solutions

T

he discussion regarding autonomous shipping should not be looked at in terms of whether it will happen, but rather in terms of what shape it will take when it does happen.

It is not only industry that is driving this forward; several navies have already implemented limited forms of autonomous technology with more developments on the way. Certain registers are already looking at how to include and categorize vessels in this regard. The industry, rightly or wrongly, continues to push forward with various forms of the technology in the all-so-familiar bid to cut costs to the very minimum possible. One subject that has had only minimal consideration so far is the impact of autonomous shipping on port and marine facility security.

The term “autonomous shipping” has been used broadly in the past but the technology and how it is being approached has moved past that point. The Maritime Safety Committee’s 99th Session (MSC 99) that took place in May this year endorsed a framework for the regulatory process that included the foundations for what are now being referred to as Maritime Autonomous Surface Ships (MASS). MSC 99 broke down MASS technology into four main categories: • Fully autonomous ships that operate without human intervention; • Remotely controlled (no seafarers on board) – i.e., the ship is under human control but that human control does not reside on the vessel; • Remotely controlled (seafarers on board) – i.e., the ship may be controlled from another location but there are seafarers on board; and • Ships with automated processes/decision support which essentially just describes an increased level of automation on board the vessels.

The IMO is taking two steps that will be discussed at MSC 100 later this year (December). The first involves identifying 46 — BC Shipping News — September 2018

What is notably absent in both the MSC 99 notes and the Secretary-General’s opening address is any significant mention of port security. the various instruments that the IMO already has in place. The second involves an analysis to determine the most appropriate way of addressing MASS operations.

What is notably absent in both the MSC 99 notes and the Secretary-General’s opening address is any significant mention of port security. While this is natural given that the focus of activity is on vessel safety and security, the port / marine facility communities will want to pay close attention when the conversation turns to shoreside considerations regarding this kind of technology. This is particularly important for those involved in domestic shipping, such as the movement of barges, along fixed routes as this is likely the low-hanging fruit within the autonomous shipping effort.

Within the North American context and as reported by CBC News, research into this process is already underway with various governing bodies along the Great Lakes and St. Lawrence River having signed an agreement aimed at planning the infrastructure needed for autonomous shipping. Overseas, the Norwegians are well along the path to have autonomous vessels navigating in coastal waters soon.

In brief, while this may be a long way off, there are some clear indications as to what course is being considered.

At a macro-level, the key difference between the West Coast and the Great Lakes environment is topography. While satellite communications may offer a level of connectivity for vessels due to a downward communications path, a significant aspect of the communications infrastructure focuses on the use of navigation and communications towers (DGPS, etc.). Those who have been involved in this kind of “horizontal” communications technology will understand the challenges associated

with the various shadows and dead areas that come from narrow waterways between mountains. This challenge is largely absent in the Great Lakes environment.

Another element deals with the complexity of the routes in terms of narrows and islands (including the impact on currents) that will require a fine level of detail and responsiveness on the part of navigation systems, control systems and communications systems.

At the facility level, an obvious gap involves the impact on landside safety programs. Some key questions should be raised within the context of SOLAS (including the recovery of persons, carriage requirements for navigation and load line regulations) and navigation bridge visibility. These include whether camera design plans will include mandatory requirements for visibility around the ship (including between the ship and pier) under all anticipated weather conditions.

They should also include the extent to which the shore can communicate with the vessel during various operations where safety risks may be elevated. This should not be viewed as a crisis but rather as a preparation to review task-hazard analyses or similar documentation to understand which jobs are likely to be impacted.

The other element in this regard may follow enhanced technical security requirements for ships operating autonomously. This is a matter that closely parallels issues in supply chain management and will be very familiar for those who are dealing with programs such as Partners in Protection (PIP) or Customs / Trade Partnership Against Terrorism (C-TPAT) or those who have looked at ISO 28000. Facilities servicing automated ships may face a need to demonstrate that

AUTONOMOUS SHIPPING their connection to systems on board the autonomous vessel does not actually pose a cyber-security-related risk to that vessel.

In this respect, there are two documents that both physical and IT security officers should review. The first is the Foreign Economic Espionage in Cyberspace document produced by the U.S. National Counterintelligence and Security Center that provides some insight into where the priorities of certain common cyber threats lie. This is only one potential source of threat amongst many (i.e., don’t discount threats like ransomware) but should provide a clear indication that there is an interest in the maritime industry and its newer technologies.

While certain groups may seek to use the opportunity to disrupt the technology (such as recent ransomware attacks), another point of interest would be to access proprietary information and steal code.

The other document of note is a NCCIC (National Cybersecurity Communications Integration Center) awareness briefing on Russian activity that clearly identifies

certain activities deliberately targeting the “soft underbelly” of networks, including suppliers and vendors to reach more valuable targets. This, of course, works in both directions with equal concerns being any connections allowing for the movement of malware and may imply shore-to-ship or ship-to-shore movement.

While ransomware and disruptive code may be one concern, connectivity to vessels through traditional network connections (such as used for file sharing or email), less traditional networks (control systems) or even accidental connections (wireless) should also be considered. The NCCIC briefing mentioned above notes that cyber criminals have used attacks that have laid dormant for significant periods of time — either waiting for the right target (economic or targeted espionage) or simply waiting for enough of the system to become infected (such as in ransomware). The infection is then passed on to the new system with the intention of building connectivity between the attacker and the target, allowing for various attacks against systems.

This is not to say that this kind of technology should never be applied. The ship for that argument has essentially sailed.

What it is to say is that we are going to need to be prudent in how it is applied. Given that the West Coast has unique challenges in terms of topography; has reasonably close ties with various parties of interest; and is likely to see this technology meet certain industry demands (especially in the short sea / local domains), it would be worthy of close attention to avoid future surprises. The first turn in this journey will be the MSC 100 in December.

Allan McDougall is the Executive Vice President of Knowledge Advancement Solutions and the Chief Learning Officer of the International Association of Maritime Security Professionals (IAMSP). He has several published works on Critical Infrastructure Protection and Transportation Systems Security and holds several security certifications including the PCIP, CMAS, CISSP, CPP, PSP, and CMSP. He can be reached at amcdougall@kas-learning.com.

Innovation Design Engineering Analysis Safety

RAstar 2800

Terminal Support/Escort Tugs Seaspan Osprey & Seaspan Raven

N AVA L A R C H I T E C T S A N D M A R I N E E N G I N E E R S

Photo by Mike Zelt

www.ral.ca designs@ral.ca 1+604-736-9466

September 2018 — BC Shipping News — 47

NAVIGATION South Resident Killer Whales

Moving towards environmental navigation K. Joseph Spears

I

n the past year, there has been a great deal of attention from media, government and other stakeholders on commercial shipping impacts on the endangered North Atlantic Right Whale on Canada’s East Coast and the 75 Southern Resident Killer Whales (SRKW) on the West Coast. The estimated global population of North Atlantic Right Whales is 450 with 12 known deaths in Canadian waters in 2017. It is believed this mortality was a combination of ship strikes and fishing gear entanglements. Canada and various stakeholders have moved swiftly to minimize the impacts of shipping/whale interactions in a general way and also as part of Canada’s overarching Oceans Protection Plan (OPP). This article will examine the development concept of environmental navigation by examining the Southern Resident Killer Whales on Canada’s West Coast.

Shipping governance, led by the United Nation’s International Maritime Organization’s (IMO), has evolved from the discrete localized pollution impacts of shipping incidents to general operational impacts including ship/marine mammal interactions, underwater noise, air emissions and wake damage. These environmental impacts have been recognized by the marine community and active steps are being taken to minimize effects through a variety of voluntary best practices and measures, coastal state governance and developing international agreements at the IMO. Minimizing environmental impacts is very much a work in progress with a wide range of parties — from the shipping community to governments — committed to getting out in front of this complex issue. Much of shipping governance is in response to a safety or environmental incident.

SRKW are the smallest of the four resident killer whale populations along the 48 — BC Shipping News — September 2018

Minimizing environmental impacts is very much a work in progress with a wide range of parties ... committed to getting out in front of this complex issue.

West Coast of North America. SRKW eat Chinook salmon and travel the waters from southern Alaska to Northern California. They are only one clan (J) consisting of three pods (J, K, L) with a total population of 75 individuals. They have been well studied in the Salish Sea by researchers who have been able to identify whales by their unique dorsal fin and markings. SRKW have a complex social structure. Individuals can live for 105 years based upon detailed observations and recordkeeping. SRKW are made up of family pods that hunt Chinook using echo location (killer whale-generated sound), spending much of the summer in the waters of San Juan Islands and Haro Strait which Canada shares with the United States. It is thought that SRKW use natural tidal chokepoints for the most energy efficient means of catching their food source. This summer, research continues on verification of these oceanographic research gaps.

The transients and North Killer Whales that frequent the Salish Sea feed on abundant seals and sea lions and have a rather stable population. This resident population overlaps with SRKWs. Professor Andrew Trites from the University of British Columbia has estimated that over the last 100 years, the population of SRKWs has likely never numbered more than 105 based upon historical data analysis. It is interesting that when the northern transients show up in the southern Salish Sea, the SRKW go silent and likely move out of the area. Orcas use clicks, calls and other sounds to navigate, communicate and forage mainly for salmon.

It has been held that SRKWs are under pressure by the following three major impacts: • Availability of prey (Chinook salmon) and a reduction in feedstocks; • Environmental contamination; and • Physical and acoustical disturbances which may affect feeding behaviour.

There remain major research gaps which are currently being addressed through the collection of data by a variety of research organizations as well as Canadian and U.S. governments. Some of this work is being funded under Canada’s Oceans Protection Plan. In June this year, $167.4 million in research initiatives were announced by Canada to support endangered whale species research on both coasts including a whale innovation challenge to provide real-time detection for whales. This funding built on earlier funding announcements in March 2018.

Given the importance of underwater acoustical issues for hunting salmon and the SKRW’s listing as endangered species under both Canada’s Species at Risk legislation and the U.S. Endangered Species Act, efforts have been made in the marine community to examine the impact of commercial shipping noise. Since 2015, there has been a collaborative effort involving many stakeholders and this one of the first places in the world where an analysis of the environmental impacts of shipping has been undertaken. It is a novel and useful model of engaging stakeholders to find the solution to an environmental navigation problem which involves a broad group including oceanographers and researchers, Oceans Network Canada, Fisheries and Oceans Canada, Transport Canada,

NAVIGATION the Vancouver Fraser Port Authority, the shipping community and non-governmental agencies.

The ECHO Program (Enhancing Cetacean Habitat and Observation Program), led by the Vancouver Fraser Port Authority, is an initiative aimed to better understand and manage the impact of shipping activities on whales along the southern coast of B.C. While this is outside the actual mandate of the port corporation, their leadership has proven to be instrumental in bringing together a variety of groups to examine the impact of ship noise.

As part of the program, hydrophones and other sensors are being used to analyze the relationship between vessel speed and the generation of ship noise in real time. The data was collected last October from a single hydrophone in Haro Strait. The ECHO research findings recently released found that underwater noise generated from vessels could be greatly reduced by even a small speed decrease — three knots could reduce ship noise by 50 per cent. Essentially, the analysis looked at the data from various vessels types. The research findings however did not address whale behaviour as SRKWs were only in the research area for a small percentage of the trial period.

Ship noise is a complex function of components including internal machinery, hull cleanliness, propeller selection/pitch and cavitation, bubbles created by the propeller blades among other factors. Underwater noise generated by commercial shipping is a global problem given the increase in activity. It is impacting all marine life, not just whales. That impact has now been recognized globally and was the focus of the Emmy award-winning film, Sonic Sea (www.sonicsea.org).

The reduction in noise from commercial ships will require an international consensus to resolve and new approaches to technology. The ECHO program has brought this to the forefront and has been discussed at the IMO’s Marine Environmental Protection Committee meetings recently in London and builds on existing IMO Guidelines established in 2014.

In the case of commercial whale watching activities, Canada recently increased the exclusion zone to 200 metres from an earlier 100 metres under the Marine Mammal Regulations within the Fisheries Act. There has been little or no research with respect to the impact of Canadian and American commercial whale watching vessels which now number over 100, not counting numerous recreational vessels that seek to get a closer view of these marine mammals. In Canada alone, it is estimated that there are over 25,000 small vessels in and around the Salish Sea. Recognizing that shipping impacts whales and, in particular, the SRKW, Canada has stepped up with sustained research funding and shown real leadership. There is a sustained willingness to work with a variety of stakeholders to minimize the impacts of shipping on marine mammal populations in a collaborative fashion. While there was a great deal of attention focused on increased tanker traffic by environmental NGOs, the overall trend has been to work to decrease the environmental impacts of the existing shipping traffic in Haro Strait. This year, a voluntary speed restriction for commercial ships transiting to Vancouver has been implemented which has offered the incentive of reduced port fees to encourage voluntary compliance. It is a model for the world.

Taking a leadership role in addressing vessel noise and the impact on the Southern Resident Killer Whale, the Port of Vancouver has been recognized internationally for the ECHO Program.

Ship noise is a complex function of components including internal machinery, hull cleanliness, propeller selection/pitch and cavitation, bubbles created by the propeller blades among other factors.

This is at the heart of environmental navigation, first identifying a problem and then seeking a creative solution that can be broadly supported. That leadership has been shown with the Southern Resident Killer Whales. Canada is working in a collaborative, cooperative and creative way to find a solution with real ocean data and fact-based policy. This is not simply a shipping problem, it is a larger ocean management problem and fisheries and ecotourism problem. Canada has led the way in ocean governance in the past and will continue to do so in the 21st century.

As environmental navigation and sustainable shipping become the norm, Canada is well-positioned to be a world leader.

Joe Spears is the principal of the Horseshoe Bay Marine Group. He is a mariner and has been active in oceanography since 1976 and has a long standing interest in whales and set up the first whale watching operation in Nova Scotia while working for Parks Canada in Cape Breton Highlands National Park in 1981. Joe can be reached at joe.hbmg2@gmail.com.

September 2018 — BC Shipping News — 49

MARINE TRAVEL

Taking marine travel services to a new level

W

ith close to 30 years of experience in the marine travel industry, Louise Kawaler has deservedly earned the reputation of an expert. So when the opportunity arose to represent ISSGMT Global Marine Travel in Canada, she and General Manager of North America Chris Podolsky both jumped at the chance to take the company to new heights. “ISSGMT is the clear leader in the field of marine travel,” said Kawaler. “In addition to a corporate culture that thrives on service and the collective knowledge of a professional team, the proprietary tools available through ISSGMT are unmatched in the industry.” In an interview with BC Shipping News, Podolsky elaborated on Kawaler’s comments.

Background

Podolsky himself has had a long career in the marine travel industry. Since 1985, he has worked with cruise lines and marine travel companies to provide crew and cruise passenger travel logistics. He moved over to Global Marine Travel (GMT) in 2010, one year prior to its acquisition by Inchcape Shipping Services (ISS). “GMT’s President, Tim Davey, recognized that the company needed to go through a major growth phase,” said Podolsky.

“Upon joining, we undertook a significant transformation of our technology components which allowed us to go after clients of all sizes globally.”

Once acquired by ISS, GMT expanded its presence. In addition to their existing North American travel centre in Fort Lauderdale and another centre in the Philippines, an office was opened in Singapore in 2012, followed by an additional office in Palma that was opened in 2014. Now boasting 140 staff in 11 countries, the company has grown 13 per cent year over year. “Most importantly,” said Podolsky, “we’ve done this while maintaining a high standard of customer service. We do not outsource phone calls and all calls are routed through North American office. And a

Louise Kawaler and Chris Podolsky, ISSGMT Global Marine Travel. live person answers, no matter what time of the day in any part of the world.”

Additional growth was also seen in 2016 when ISSGMT established its Global Air Charter Division. “The Air Charter Division is comprised of fully licensed and insured air charter brokers,” noted Podolsky. “We can find an aircraft of any size, any place and at any time. Whether it’s for a few executives who need to be at a meeting and there’s no scheduled service or if it’s for 1,000 passengers of a cruise ship that has had to unexpectedly

Since 1903, the voice of owners, operators and agents of ocean ships that help keep Canada’s economy moving.

www.shipfed.ca 2300 - 1066 West Hastings Street, Vancouver (778-373-1518) 300 St. Sacrement Street, Suite 326, Montreal (877-534-7367) 50 — BC Shipping News — September 2018

MARINE TRAVEL disembark passengers into an unscheduled port, we’re able to handle it.”

ISSGMT’s client base stretches across many facets of the maritime industry and is largely comprised of commercial marine, private yacht crews, and cruise crew and passengers. One area that has really “ramped up” over the past five years has become their specialty, dry dock logistics.

Podolsky described the tight timelines and scheduling that often goes into dry dock contracts. “When a cruise line goes into a dry dock, they have allocated the various blocks of time for contractors who must get to the ship and work within their assigned timeframe. There can be upwards of 200 workers who need flights and hotels. It’s very structured and requires a lot of attention to detail to get them there on time and on budget.”

As noted, a large portion of ISSGMT’s business is with cruise crew and passengers. Indeed, they provide bookings for cruise travel agents based all over the U.S. and Canada. “When someone books a cruise, they also have the option of booking the air and the cruise travel agent will work with us to arrange that,” he said, adding that they don’t deal directly with consumers.

A key logistical component for any global business is the ability to move its workers around the world quickly, efficiently and within budget. book and confirm travel directly through the portal. Once the reservation is confirmed, it will go through the approval process established by the company before the tickets get issued.” He further added that approvals can be made on any type of device.

When asked how large a company needed to be to be eligible, Podolsky said that the number of employees and the amount of travel are both taken into consideration. “We don’t charge for implementation, training or software fees but in order to do that, there has to be upwards of 30 staff travelling regularly – say 30 trips per month in order for it to work well.

Otherwise, it’s too much work for both the company and us to administer. An administrator within the company needs to be trained; all of the travellers need to be loaded into the system; and it requires continuous updating with new employees being added and set up so that when the

booking comes in, it can move through the system of approvals right away.”

In addition to the booking tool and the “live person 24/7/365,” Podolsky highlighted other strengths of ISSGMT’s service, including automated trip notification and approval processes (through either online or by phone); encrypted and secure data transfers to a specified duty of care partner so that if there is an international incident, the employee and the company are notified right away; and extensive inhouse training for all ISS employees on a wide variety of issues – ethics and compliance, anti-bribery, new laws on data privacy, training on the technology as well as standard practices.

With the priority put on customer service, Podolsky noted that the company is continuing to grow at a healthy pace, including expansion into new areas of Europe, South America and, of course, Canada. BCSN

The complexities of marine travel

A key logistical component for any global business is the ability to move its workers around the world quickly, efficiently and within budget. “The scope of knowledge required by a travel specialist goes well beyond simply issuing an air ticket,” said Louise Kawaler from her office in Vancouver. “You need knowledge of the area, an understanding of various contracts that relate to marine carriage regulations, crewing policies, and even baggage restrictions. We also make sure that each one of our team is an expert in getting the most out of our proprietary booking system to the benefit of the client.”

The system Kawaler refers to is ISSGMT’s very own online booking tool.

“For clients who qualify (i.e., are large enough and have a company travel policy and approval process in place), we install the web-based platform with a user interface,” said Podolsky. “It contains all of our marine fares and employees who travel or manage the travel can access flight availabilities and price in real time. They can September 2018 — BC Shipping News — 51

LEGAL AFFAIRS Vancouver Fraser Port Authority

Understanding the Project and Environmental Review Process

By Karissa Kelln

A Vancouver Lawyer with Bernard LLP

W

hen contemplating a project that entails a change to port lands (or water), one should be aware of the Project and Environmental Review Process and the hurdles to overcome before proceeding. Under the Canada Marine Act, the Vancouver Fraser Port Authority (VFPA) is responsible for the management, administration and control of land and water within its jurisdiction, including over 16,000 hectares of water and 1,000 hectares of land. Under section 67 of the Canadian Environmental Assessment Act, 2012 (CEAA), the VFPA is considered a “federal authority” and is tasked with assessing the environmental effects of proposed projects. To fulfill its responsibilities under the Canada Marine Act and CEAA, the VFPA administers a Project and Environmental Review Process to ensure all activities and developments meet applicable standards and minimize community and environmental impacts.

Anything that qualifies as a “project” will require review through the Project and Environmental Review Process. The three criteria of a project are: 1) a physical activity; 2) a physical work; and 3) federal lands (or waters). A physical activity consists of carrying out tasks or actions involved with operation, decommissioning, modification and construction (i.e., involving a degree of physical effort).

A physical work includes structures that have been built by humans and that have a fixed locality and defined area (i.e., has a local permanence). Federal lands is defined at subsection 2(1) of the CEAA. To summarize, a project involves carrying out activities such as decommissioning, modification or construction in relation to an existing or new physical work (e.g., bridge, building, road or pipeline) situated partially or completely on lands or waters within the VFPA’s jurisdiction.

52 — BC Shipping News — September 2018

In relation to a proposed project, an important part of the Project and Environmental Review Process is to determine the spatial and temporal scope of the review to be conducted.

In addition, there are some “physical activities” that are not associated with “physical works” that require review under the Project and Environmental Review Process. Examples of such physical activities include dredging, remedial excavations or waterlot clean up. For the purposes of the Project and Environmental Review Process, these activities are also considered “projects.”

If a proposed project meets all three criteria as contemplated above, or is a physical activity as set out in the preceding paragraph, the Project and Environmental Review Process applies.

The VFPA has determined that certain works and activities do not need to go through the Project and Environmental Review Process. Excluded projects typically include construction or installation of small buildings and structures, replacement of existing equipment, and repair and maintenance activities. Individuals undertaking these works and activities must be existing VFPA tenants, or authorized consultants or contractors who have received permission from the tenant.

In relation to a proposed project, an important part of the Project and Environmental Review Process is to determine the spatial and temporal scope of the review to be conducted. The scope of the review will vary amongst projects, depending on several factors, including potential environmental effects. In addition to environmental effects, the VFPA also reviews other potential impacts pursuant to its responsibilities under the Canada Marine Act, the Port Authorities Operations Regulations and VFPA policy.

This may include community concerns

such as noise, views, lighting, traffic and transportation impacts.

In making decisions as to scope, the project lead assigned to the project will be guided by the following principles: • The scope of the project will typically be restricted to physical works and activities taking place within the project footprint on federal lands, as well as vessel traffic within the VFPA’s jurisdiction, if applicable.

• The scope of the assessment will typically include an investigation of the environmental and other effects that result from the physical works that the VFPA is authorizing, regardless of whether those effects occur on VFPA lands. Indirect effects will not be included in the assessment.

• The scope of the assessment will typically consider all physical activities and effects from the start of construction through to the time the project is expected to achieve full operating capacity.

• Where potential environmental and other effects are determined to be insignificant, they will generally not be included in the scope of the assessment.

The Project and Environmental Review Process consists of four categories of review: A, B, C and D. The categories range in complexity with Category A being the least complex and D being the most complex. Applicants are expected to review the categories and make an initial assessment as to which category applies to their project. Where different elements of a proposed project appear to fit into different categories of review, the more complex category will generally apply to the project.

LEGAL AFFAIRS Category A projects are minor in scale and may be temporary in nature. These projects have predictable, minimal potential impacts. In addition, no consultation is anticipated. The review process typically takes between one to 10 business days. Examples of Category A projects include maintenance dredging, waterlot cleanup and construction of a small building near water with no excavation beyond imported fill or new utility infrastructure.

There is no application fee for a Category A project.

Category B projects are relatively minor in scale but have attributes requiring additional technical analysis and may require specialized mitigations. These projects have low potential for environmental and community impacts. They may require public and stakeholder notification and/or aboriginal consultation. The review process typically takes 10 to 60 business days.

Examples of Category B projects include shoreline protection works, installation of a new fueling facility with a total design storage capacity of less than 100,000 litres and expansion of an existing wharf in an area that is not environmentally sensitive. The application fee for a Category B project is $525 (taxes included) if no consultation is required, and $2,625 (taxes included) if consultation is warranted.

Category C projects are generally larger or more complicated, and may require additional technical studies to support their review. These projects have moderate potential for environmental and community impacts. Public, stakeholder and aboriginal consultation is anticipated. The review process typically takes between 60 and 120 business days to complete.

Examples of Category C projects are installation of new facilities or equipment which will result in new discharges to air or water, construction or demolition activities in an environmentally sensitive area and construction of a new warehouse or distribution centre. The application fee for a Category C project is $13,125 (taxes included).

Finally, Category D projects are large and complicated, potentially involving significant commodity capacity increases or new commodities, and usually require a variety of supporting technical studies.

These projects have a higher likelihood for environmental and community impacts.

Applicants should be aware that for projects that include new buildings or require modifications to existing buildings or structures, a building permit may be required...

Public, stakeholder and aboriginal consultation is required. The review process typically takes 120 to 170 business days.

Examples of Category D projects include large-scale infrastructure/transportation development, construction of a new terminal and projects with multiple potential environmental and community impacts, requiring multiple technical reports. The Category D application fee is $23,625 (taxes included).

Applicants should be aware that for projects that include new buildings or require modifications to existing buildings or structures, a building permit may be required in

addition to a project permit. Certain projects may also require regulatory approvals from other authorities in addition to the VFPA. This may include environmental reviews and permits from agencies such as Transport Canada, Environment Canada, and Fisheries and Oceans Canada. In addition to offering guidance on the Project and Environmental Review Process, Bernard LLP can assist applicants in identifying which other regulatory approvals may be necessary.

Karissa Kelln is a Maritime Lawyer with Bernard LLP and can be reached at kelln@bernardllp.ca.

September 2018 — BC Shipping News — 53

MARITIME EXHIBIT

Home Port Heroes of WWI and WWII

D

espite finishing a gruelling eighthour shift on October 7, 1943, the 450 women and 3,000 men employed at the Yarrows Limited shipyard in Esquimalt, British Columbia, celebrated, and with good reason: that day they were declared “Wartime Riveting Champions” for countersinking an astounding 2,535 rivets! While shipbuilding was a traditionally male-dominated industry, during the Second World War (1939-1945) women became an important part of this success. Even in the face of prejudice, they entered the workforce in great numbers to support the war effort.

With the war raging all over the world, naval and merchant ships were essential to the struggle for victory. The stories of the men and women who built these ships, together with those who sailed them through dangerous war zones, is highlighted in the new feature exhibit Home Port Heroes of WWI and WWII at the Maritime Museum of British Columbia.

Presented in collaboration with Parks Canada, responsible for protecting and presenting nationally significant examples of Canada’s natural and cultural heritage, the exhibit brings alive this era of our history through archival photographs, artefacts, music and film.

“With the departure of so many Canadian men headed overseas to fight, our country lost many of their traditional skilled labourers,” says David Leverton, Executive Director of the Maritime Museum of BC. “With the high demand for new ships to be used as part of the war effort, Canadian industries witnessed a monumental shift, as women stepped in to fill these necessary jobs. This exhibit, in partnership with Parks Canada, explores the incredibly industrious efforts of these Canadians on the home front during the First and Second World Wars, with an emphasis on those living on the Pacific Northwest coast. Without the bravery and determination of these men and women who toiled in Canadian shipyards building desperately-needed cargo ships, the war may have been lost.”

Throughout the war, Canadian shipyards undertook an ambitious building program.

Working in yards on each coast, and along 54 — BC Shipping News — September 2018

Photograph taken after establishing a riveting record at Yarrows Ltd. No. 2 Yard, October 7, 1943. (The Maritime Museum of BC Archives, 993.017.0579.02.) the St. Lawrence River, roughly 85,000 men and women were employed in the shipbuilding industry at the peak of production in July 1943. Women entered the shipbuilding industry, nowhere more so than on the West Coast where their numbers jumped from six female shipyard employees at the start of the war in 1939, to more than 2,100 by 1943. This was nearly seven per cent of B.C.’s shipyard workforce.

Between 1941 and 1945, Canadian shipyards produced more than 400 cargo ships.

Those that sailed under the Canadian flag were named after Canadian parks, while sister ships intended for Britain were given the names of forts in Canadian history. Of these vessels, nearly 30 have namesake national parks or historic forts administered today by Parks Canada, including SS Fort St. James (19th century trading post in central B.C.); SS Banff Park (Canada’s first national park located in Alberta); and SS Fort Louisbourg (famous 18th French fortress in Nova Scotia).

“Though wartime vessels were being built at an incredible rate during this period, this was one of many ongoing efforts

by Canadians to support the war,” explains Pascale Guindon, National Program Coordinator, Parks Canada. “One of the lesser-known, and often overlooked, groups to be recognized for their outstanding

contributions to the war effort was the men and women of the Merchant Navy,” she said. Sailing across perilous seas and braving enemy-infested waters, these unsung heroes transported Allied troops and delivered vital supplies to combat fronts around the world, often at great personal sacrifice; more than 1,600 sailors from Canada and the separate Dominion of Newfoundland gave their life in this service.

On the West Coast of Canada, one notable ship of the merchant fleet was SS Fort Camosun. Built by the Victoria Machinery Depot Ltd, in Victoria, Fort Camosun was chartered to assist with the delivery of much needed troops and supplies. During the war, the vessel participated in 24 convoy crossings and made 58 solo trips. The ship’s service was also marked by the rare distinction of surviving two separate torpedo attacks.

The first attack occurred during the vessel’s maiden voyage from Victoria to London. While sailing through the Strait of Juan da Fuca with a cargo of plywood, the ship was spotted off the coast of Washington by Japanese submarine I-25 which launched a torpedo into the ship’s hull. Despite massive damage, Fort Camosun and her 51-member crew survived the attack and the damaged ship was towed into port in Victoria before being

MARITIME MUSEUM OF BC

Marie Desimone portrait, working as a rivet passer at the Burrard Dry Docks (1944). (North Vancouver Museum and Archives 2007-41.) sent to Seattle for repairs. The second torpedo attack occurred on December 3, 1943, in the Gulf of Aden (Arabian Sea). Thanks to the determination and fortitude of the

ship’s crew, the vessel was kept afloat.

The ship’s namesake, Fort Camosun, was a historic Hudson’s Bay Company settlement built in 1843 by James Douglas, today the present site of the city of Victoria and home to the Maritime Museum of BC. The exhibit, Home Port Heroes of WWI and WWII, will also commemorate HMCS Galiano, a fishing vessel that was under the Navy service and patrolled B.C.’s coast during the First World War. The vessel disappeared almost 100 years ago, in October 1918, and was the only Canadian warship lost during that war.

A visit to the museum will bring you back to the turbulent war years where you may even encounter a life-size figure whose industrious efforts helped win the war. The exhibit will be open at the Maritime Museum of British Columbia (634 Humboldt Street, Victoria, B.C.) from September 6 – December 30, 2018.

Admission is $10 + GST for adults, with discounted rates for seniors and students.

Children under 12 are free with an accompanying adult. Visit www.mmbc.bc.ca for more information.

About Parks Canada Established in 1911, Parks Canada protects a vast network of natural and heritage places that include 46 national parks, 171 national historic sites, four national marine conservation areas and one national urban park where Canadians can connect with their heritage. Parks Canada launched its Home Port Heroes initiative in May 2018.

About the MMBC The Maritime Museum of BC, established in 1955 as the oldest maritime museum on the the west coast of Canada, promotes and preserves BC’s maritime experience and heritage, engaging people with this ongoing story. The Museum cares for more than 35,000 unique artifacts, in excess of 40,000 historical photographs and an internationally recognized chart collection. As well, the Museum delivers popular educational outreach programs geared to children and seniors featuring topics such as immigration, pirates and privateers, women at sea, and the fur trade.

PARTNERING WITH THE BEST FOR SOLUTIONS THAT WORK

PLEASE VISIT US AT CFA IN WHISTLER, SEPT. 30 TO OCT. 2 BC: 604.988.1111 | ONTARIO: 905.641.2587 | NOVA SCOTIA 902.468.6450 WWW.JASTRAMTECHNOLOGIES.COM | SALES@JASTRAMTECHNOLGIES.COM September 2018 — BC Shipping News — 55

Pacific Seapower: A Strong, Secure and En Panel Discussions

Special Presentations

• Striking a Balance in the Full Spectrum of Maritime Operations

• Changing Ocean Dynamics

• The Evolving Seascape: Understanding the Future Maritime Environment • Building Strategic Resolve: Policy, Platforms, and Partners in Maritime Security • The Future Fleet: Investing in a New Maritime Era • The Innovation Imperative: Enabling Flexibility Through Technology & Transformation • A View From the Atlantic: Strengthening NATO’s Maritime Posture • The Cooperation Coefficient: Multinational Efforts to Secure the Ocean Commons

• The South China Sea: A Power Struggle in Asia • Debate: The Continuing Relevance of the Aircraft Carrier • Maritime Calculations on the Korean Peninsula • Cyber in the Maritime Domain

“a must for all

practitioners and students of maritime security

”

15-18 October • Victoria, BC Canada

ngaged Maritime Future

AV ALE

L

EA

GU

E

N

Y

in association with the Royal Canadian Navy and the Daniel K. Inouye Asia-Pacific Center for Security Studies

N AV

HOSTED BY : The Navy League of Canada

E 1895 LIGU

mscconference.com

ADVERTISERS

Giving seafarers a helping hand for over 160 years!

Photo: Dave Roels

Get on Board with Us: www.flyingangel.ca

AAL Shipping...............................................................................................................................................5 Albion Marine Solutions..............................................................................................................................10 AMIX Group...............................................................................................................................................37 Ancan Marketing........................................................................................................................................58 BNAC Environmental Solutions...................................................................................................................16 Bernard LLP...............................................................................................................................................51 Bracewell Marine Group.............................................................................................................................11 Canadian Ferry Association....................................................................................................................... BC Canadian Lifeboat Institution.......................................................................................................................58 Chamber of Shipping..................................................................................................................................15 CLIA - North West & Canada......................................................................................................................32 CN............................................................................................................................................................ BC CP Rail........................................................................................................................................................6 CT Terminals..............................................................................................................................................27 DP World...................................................................................................................................................25 Envirosystems...........................................................................................................................................12 Firstwatch / Western Marine Company.......................................................................................................53 FortisBC.............................................................................................................................................................9 Fraser Surrey Docks...........................................................................................................................................4 Gillespie-Munro Inc...........................................................................................................................................28 Global Container Terminals...............................................................................................................................44 Greenwood Maritime Solutions.........................................................................................................................12 Harken Towing...........................................................................................................................................13 HEROS Hockey............................................................................................................................................8 IMS Marine Surveyors & Analytic Laboratories Ltd......................................................................................23 Interferry...................................................................................................................................................41 Internationall Sailors’ Society Canada.........................................................................................................50 ISS GMT - Global Marine Travel..................................................................................................................24 Jastram Technologies Ltd...........................................................................................................................55 John Horton, Marine Artist.........................................................................................................................21 Jones Marine Group Ltd.............................................................................................................................16 King Bros. Limited......................................................................................................................................12 Lonnie Wishart Photography......................................................................................................................21 Maritime Museum of BC.............................................................................................................................58 Maritime Security Challenges 2018.......................................................................................................56-57 Mission to Seafarers..................................................................................................................................58 Osborne Propellers.....................................................................................................................................12 Port Alberni Port Authority..........................................................................................................................31 Port of Nanaimo.........................................................................................................................................43 Prince Rupert Port Authority...................................................................................................................... IFC Ray-Mont Logistics......................................................................................................................................3 Redden Net & Rope Ltd..............................................................................................................................33 Robert Allan Ltd.........................................................................................................................................47 Samson Tugboats......................................................................................................................................10 Shipping Federation of Canada...................................................................................................................50 Stewart World Port......................................................................................................................................8 Sylte Shipyard............................................................................................................................................13 Tactical Marine Solutions Ltd......................................................................................................................45 TD Bank.....................................................................................................................................................23 Teekay Shipping.........................................................................................................................................39 Toplift North America.................................................................................................................................18 Western Canada Marine Response Corporation...........................................................................................17 Western Maritime Institute..........................................................................................................................40

Support the reuse of marine-related products.

Donate today!

Boating & Fishing Supplies Tools l Books l Marine Art Located at: Canoe Cove Marina (Unit 14) North Saanich, Vancouver Island, B.C. WINTER HOURS: FRIDAYS & SATURDAYS 10:00 A.M. TO 3:00 P.M.

Your donation will help us “Save Lives at Sea”

PHONE NUMBER: (778) 351-0011

Email: info@canadianlifeboatinstitution.org

MMBC.BC.CA/ATM 58 — BC Shipping News — September 2018

www. canadianlifeboatinstitution.org Registered Charity #88999 8977 RR0001

STRENGTH & RESILIENCE The Impact of Canada’s Ferries on Indigenous and Remote Communities

CFA CONFERENCE & TRADE SHOW The premiere annual event for Canada’s ferry Industry

Whistler, BC • September 30 – October 2

Register today and learn more at

www.canadianferry.ca/conference-2018 Sponsorship opportunities still available

CFA Annual Golf Tournament

October 3 at Whistler Golf Club • Registration now open

@cdnferry

Photo © Tourism Whistler/Mike Crane

REACH FARTHER.

3 coasts, 15 ocean terminals, 23 inland terminals and growing.

At CN we’re investing in all aspects of our business - from infrastructure to innovation - to give you the supply chain advantage you need to stay competitive in the global marketplace.

Reach out to us and reach farther than you thought possible.

cn.ca