INSIDE: PRIVATE PORT OF KITIMAT EYEING PUBLIC DOCK
BC SHIPPING NEWS
Volume 2 Issue 1
www.bcshippingnews.com
February 2012
Commercial Marine News for Canada’s West Coast.
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Guardians of the Coast
Transport Canada’s National Aerial Surveillance Program
The climate debate
Kaity Arsoniadis-Stein looks at COP17 and its impact on shipping.
Short-sea shipping DP World Vancouver and Nanaimo Port Authority create new lo-lo container service.
Industry insight
BCMEA President Andy Smith: Heart of a socialist, head of a capitalist.
Plus: Captain Stephen Brown: The year ahead.
BC SHIPPING NEWS
Commercial Marine News for Canada’s West Coast.
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February 2012
Volume 2 Issue 1
On the cover: Transport Canada’s National Aerial Surveillance Program aircraft flies over the Spirit of British Columbia. Photos courtesy of Transport Canada Marine Safety Directorate.
Contents Cover Story - P.43
Guardians of the Coast: Transport Canada’s National Aerial Surveillance Program (NASP). By K.Joseph Spears
10 Industry insight Heart of a socialist, head of a capitalist BCSN speaks with the President & CEO of the British Columbia Maritime Employers Association to get a behind-the-scenes look at labour negotiations.
22 Ports & terminals Short-sea shipping
A new agreement between DP World Vancouver and Nanaimo Port Authority for terminal operations includes a brand new opportunity for short-sea shipping services from the Island to the Mainland.
50 Technology / New products
Innovation drives company growth: A look at Advanced Marine Technologies and their growth strategy. Stop leaks: Lubri-Lab BC’s solution for leaking seals.
D E P A R T M E N T S
F E A T U R E S
Andy Smith
6 18 20 24
News briefs / industry traffic
27
Ports & terminals (III)
Letters to the editor and news.
Cruise industry
Jobs on a cruise ship.
History lesson
Records from a maritime resume.
Ports & terminals (II)
Private Port of Kitimat eyeing public dock. By Ray Dykes. An engaging read: a review of the new book, Canada’s Pacific Gateways
29
Shipping
35
International shipping
38 40 47 48 54
The year ahead. By Captain Stephen Brown. The climate debate: COP17 By Kaity Arsoniadis-Stein.
Shipyards
Seaspan Marine Corp: One step closer to cutting steel.
Legal affairs
Update on workers compensation developments. By Lorna Pawluk.
Workboats
The latest Robert Allan Ltd. design.
BC Ferries
Marine evacuation chute demonstration plus updates.
Upcoming events
ICMA2012 and VMM exhibits. February 2012 BC Shipping News 3
February 2012 Volume 2/Issue 1 Publisher McIvor Communications Inc. President & Editor Jane McIvor
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EDITOR’S NOTE
Barely scratching the surface.
W
elcome to Volume Two of BC Shipping News! As we get underway with a new year and a new volume of magazines, I am pleased and excited to be able to provide a vehicle for the many voices of the B.C. shipping industry. This month’s issue looks at a number of topics — maritime employment, maritime aerial surveillance, port development, current climate debates and an outlook which explores the opportunities and challenges that lay ahead in 2012. With respect to maritime employment, it was a rare pleasure to meet and interview Andy Smith, President & CEO of the British Columbia Maritime Employers Association, to gain his views on the many aspects of labour on the waterfront. It is a character like this that makes me enjoy both publshing and the shipping industry so much more. Using maritime labour as one example, I was very much aware of the fact that Andy represents one aspect of employment within this industry. There are so many additional insights that need to be shared — the union perspective, the at-sea perspective, the marine engineer’s perspective — the list is long and I can’t wait to explore these additional views in subsequent editions. The wealth of information that is available through BCSN’s contributing
writers and those willing to sit for interviews only proves to me time and time again that BC Shipping News has an important role: to provide education, to offer a balance to arguments (sometimes non-sensical) in mainstream media, and to allow the industry an opportunity to learn and prosper through the experience and views of these industry leaders. As noted by Captain Stephen Brown in his article which looks at expectations for the coming year: “...whilst the marine industry has historically suffered its share of incidents and losses, each provides for lessons to be learned and applied.” Captain Brown wrote this in relation to the sinking of the Titanic 100 years ago. While he had just enough time before going to print to include reference to the grounding of the Costa Concordia off the coast of Italy, Captain Brown’s words are prophetic as we are already hearing a call for new regulations and safeguards to be put in place in Italy to avoid another incident like that of the Concordia (many of which are already in practice here on the West Coast). In terms of providing a balance to arguments often heard in mainstream media, it is Kaity Arsoniadis-Stein’s article on the climate debate that best demonstrates this point. In addition to her logical outline of an alternative view, Kaity’s ability to get to the heart of a matter and
provide the international shipping community’s perspective deserves your close attention. By sharing her experience and insights into how proposed and current environmental regulations are impacting the industry, Kaity is giving us all the chance to take this message beyond the confines of this magazine and offer a different view than that in the public realm.
...as we finish each issue, I’m very much aware of how much more there is to write. As we move forward through 2012, we have developed an editorial line-up that will hopefully entertain and educate you on the many diverse topics and opinions that make up this industry. For example, watch for future issues covering maritime law, naval architecture, ship design and marine engineering, new technologies, shipbuilding and shipyard updates, news from the Canadian Coast Guard and the Royal Canadian Navy, regulatory updates, port and terminal growth, the cruise industry, international shipping, tug and barge updates, piracy and much more. We’ve barely scratched the surface of many of these topics so far and as we finish each issue, I’m very much aware of how much more there is to write. Stay tuned! BCSN
Member of: International Sailor’s Society Canada
February 2012 BC Shipping News 5
INDUSTRY traffic Captain John Clarkson leaving BCIT Marine Campus for Ottawa position.
P
eter Penashue, Minister of Intergovernmental Affairs and President of the Queen’s Privy Council for Canada announced the appointment of Captain John Clarkson to the Canadian Transportation Accident Investigation and Safety Board. “Captain Clarkson’s extensive background in the field of marine safety will be a valuable asset to the Transportation Safety Board,” said Minister Penashue. “His thorough understanding of both applicable regulations and technical safety measures will be of service to the Board’s complex investigations.” As readers of BC Shipping News will recall, Captain Clarkson was the subject of our Industry Insight feature in October. It was through that interview that we learned of his extensive experience in the area of marine transportation safety and training, serving in a number of capacities in the field. As Associate Dean, School of Transportation at the British Columbia Institute of Technology, Head of the Marine Campus, Captain Clarkson was the driving force behind securing funding for the new simulation centre as well as engaging both industry and government to provide innovative training solutions, resulting in a reputation of excellence for the Marine Campus. This new position for Captain Clarkson is a full-time position and will require a move back to Ottawa. He starts officially on February 27 at the TSB offices in Gatineau. His last day at BCIT will be February 10. The following week he will sit on the pilotage exam board with Kevin Obermeyer, President & CEO of the Pacific Pilotage Authority. While there is no direct succession plan in place for Clarkson’s position at BCIT, a competition will be held for the position which will be open Canadawide within a month or two. 6 BC Shipping News February 2012
The Canadian Transportation Accident Investigation and Safety Board Act provides the legal framework that governs TSB activities. The mandate of the Board is to advance transportation safety in the marine, pipeline, rail and air modes of transportation by: • conducting independent investigations, including public inquiries when necessary, into selected transportation occurrences in order to make findings as to their causes and contributing factors; • identifying safety deficiencies, as evidenced by transportation occurrences; • making recommendations designed to eliminate or reduce any such safety deficiencies; and • reporting publicly on investigations and on findings in relation thereto. As part of its on-going investigations, the TSB also reviews developments in transportation safety and identifies safety risks that it believes government and the transportation industry should address to reduce injury and loss. Congratulations and good luck, John!
Captain John Clarkson.
NEWS BRIEFS Q3 Marine Training Solutions embarks on freefall lifeboat training.
A
s part of the company’s growth plan, Q3MTS’ new lifeboat facility north of Seattle has developed an exportable component: freefall lifeboat training. Freefall lifeboats provide a means of escape in an emergency but their operation is vastly different from more conventional lifeboats. Q3’s freefall training programs are conducted onboard utilizing the ship’s freefall lifeboat. Designated crew receive training on how to take charge of the boat in a freefall launch, as well as pre and post-launch procedures, boat handling and maneuvering. Personnel who may be passengers in a freefall boat also receive realistic training. “When training has been completed and a freefall launch experienced, the ships’ crew quickly develop a confidence in the freefall concept,” says Captain Patrick Boyle of Q3MTS. New lifeboat technology works well when the crew has been trained in its use. Familiarity with the equipment requires that everyone is aware of how to safely deploy and use the lifeboat. Varying the roles during the lifeboat drill is good training and allows for the possibility that, in a real emergency, the designated crew may not be available to launch the freefall lifeboat.
Training would be a lot simpler if there was a common specification for lifeboats, but the reality is that mariners often have to familiarize themselves with different lifeboats and release hooks on every ship on which they serve. This vital training ensures the seafarers competency while satisfying the STCW and SOLAS training requirements. For more information, visit Q3 Marine Training Solutions website: www.q3mts.com.
Freefall lifeboat training — now offered by Q3MTS.
LETTER TO THE EDITOR Photo credits: Robert Etchell
I
read Lisa Glandt’s story in the December issue (SOS — why I love tugboats). I really like tugboats too! I have been photographing them for over 20 years and there are some great spots to see them — McDonald Beach in Richmond and, the one I really like, Barnet Park in Burnaby where they come really close to the point — just to name two. I enclose two photos I took of lsland Tugs: the Island Crown and the Cindy Mozel. Both are taken from the point at Barnet Park. The one thing I would like to see here, in addition to the Fraserfest Workboat Parade in July, are tugboat races like they have in Seattle and Olympia — I attended those events from 1995 to 2001 and thoroughly enjoyed them. Ms. Glandt mentions that articulate tug and barges are safer and more cost efficient — Crowley has ATBs that come to the Port of Vancouver reguarly and on their website, note that ATBs are the safest way to transport oil or other petroleum products. Tugboat companies are finding out that’s the way to go. Best regards, Robert Etchell Vancouver, B.C. February 2012 BC Shipping News 7
INDUSTRY traffic New local owners for Black Ball Ferry Line.
B
lack Ball Ferry Line has announced that the company’s current executive management team has agreed to purchase the company from the Oregon State University Foundation. Terms of the deal were not released. The company, which operates the M.V. Coho passenger and vehicle ferry between Port Angeles, Washington, and Victoria, B.C., was bequeathed to the Foundation by former owner Lois Acheson in 2004 as part of a $21 million gift of her estate to establish an endowment in OSU’s College of Veterinary Medicine. Pursuant to her bequest, the company was placed in a long-term trust with the intention of preserving the company’s culture and commitment to its employees and the region it serves. Both the Foundation and Black Ball Ferry Line’s Board of Directors voted unanimously in support of the deal, agreeing that it best respected Acheson’s wishes while continuing local stewardship of the company. “My aunt Lois Bates Acheson’s wishes have been carried out exactly as she would have wanted to the mutual benefit of the Black Ball management group, the Oregon State University Foundation and the College of Veterinary Medicine,” said Donna Lee Schoen, Black Ball Ferry Line Trustee and Board member. “It was her intention that the Coho Ferry would continue to provide long-term employment and continuing service for the Port Angeles and Victoria communities. This is a wonderful resolution for all the parties involved. She would be very happy with the outcome.” “I would like to thank the Foundation, Trustees and the Board for their stewardship in the transition to management ownership,” said Ryan Burles, President of Black Ball Ferry Line. “Our management team will continue a strong commitment to the local 8 BC Shipping News February 2012
M.V. Coho docked in Victoria’s Inner Harbour. community, the employees and culture of Black Ball Ferry Line,” he added. “We will ‘stay the course’ while continuing to improve our service and invest in the future.” The company’s executive management team includes: President and COO, Ryan Burles (Victoria); CEO, Captain John Cox (Seattle); Senior Vice President of Finance, David Booth (Seattle); Rian Anderson, District Manager (Port Angeles); and Director of Marketing, Ryan Malane (Port
Angeles). The company remains a U.S. corporation. The company recently embarked on a multi-year program to improve the terminal in Port Angeles as well as the continued renovation of its Victoria facilities. The company employs more than 120 people and operates terminals in both cities. The ferry line transports 400,000 passengers and 120,000 vehicles annually, and has an estimated annual economic impact of more than $160 million within the local communities.
Mari-Tech 2012 Exhibition and Conference now accepting paper submissions.
T
he Mari-Tech Society of Canada, the Society of Naval Architects and Marine Engineers (SNAME), Eastern Canadian Section, and the Ottawa Branch of the Canadian Institute of Marine Engineering (CIMarE) and are now accepting paper submissions (until February 3) for Mari-Tech 2012. The Conference, inlcuding over 50 exhibits, will be held April 10 - 11 at the Hampton Inn Ottawa and Conference Centre in Ottawa, Ontario.
Co-chaired by Jeffrey Smith (Chair, National Council and Ottawa Branch Representative, CIMarE), and Glenn Walters, (Chair, Eastern Canadian Section, SNAME), the Mari-Tech 2012 Conference Committee has decided on the theme of “Re-Birth of the Marine Technical Community”. In addition to paper submissions, additional information on registration, exhibits, sponsorship opportunities and agenda topics can be found at www.mari-tech.org.
NEWS BRIEFS CIMarE Vancouver: January dinner meeting summary.
F
orty-three members, students and guests attended the January 18 dinner meeting of the Vancouver Branch of the Canadian Institute of Marine Engineering at Cheers Restaurant in North Vancouver to hear John Fowlis, Vice President, Fleet Maintenance of Seaspan Marine describe the selection of the Turkish Sanmar Shipyard to build their new series of tugs. The talk was preceded by a
tour of the new Seaspan Osprey. Branch Papers Chairman Alan Novotny thanked John for his interesting presentation. Vancouver Branch Chairman Russell Oye presented Certificates to six BCIT students. The next CIMarE Vancouver Branch meeting will be a joint meeting with SNAME. For details and reservations contact Bob Brown at 604-684-2491 or email cimare@burrardironworks.com.
John Fowlis, Seaspan Marine Corporation; Alan Novotny, CIMarE Vancouver Branch Papers Chairman.
New IMO SecretaryGeneral takes office.
M BCIT students with Vancouver Branch Chairman Russell Oye.
Analytic Systems commercial marine products now ABS certified.
A
nalytic Systems of Delta, B.C., has started the process of certifying their marine-specific power conversion products. These products will be highlighted at the MultiAgency Combat Craft Conference at Norfolk, VA in May 2012. The first models to be certified to ABS standards are the new BCA1505 (1500W AC charger); the BCA310 (300W AC charger); the IPS300 (300W DC/AC Puresine inverter) and the VTC315 (Isolated DC/DC voltage converter). In addition, a new line of cost-reduced Intelligent AC battery chargers, cost-reduced power supplies and inverters will also be highlighted. ABS has provided Analytic Systems with their Certificate of Manufacturing Assessment (#VA2089914-A-X). Analytic Systems is looking to bring on new commercial marine customers/resellers with these newly certified
products and new lower pricing based on a 2011 cost reduction program. This will prove to be an attractive package as Analytic Systems prepares to launch a line of new inverters, power supplies and intelligent battery chargers for 2012. “Our extensive experience with the commercial marine market gives us a real appreciation for the operational challenges facing our customer,” said Bill Walker, Vice President, Sales and Marketing. “Our understanding of those challenges combined with our expertise as a supplier to various commercial and military marine users worldwide, gives us tremendous insights as our customers approach leaner budgets. We remain committed to delivering exceptional value from production through the entire life cycle, whatever the fleet.”
r. Koji Sekimizu of Japan is welcomed as the eighth Secretary-General of the International Maritime Organization, effective January 1, 2012. Koji Sekimizu, from Yokohama, Japan, studied marine engineering and naval architecture at the Engineering Faculty of Osaka University before starting a career in the Ministry of Transport of Japan (MOT). Mr. Sekimizu joined the IMO in 1989 as Technical Officer in the Sub-Division for the Technology, Maritime Safety Division. His career with the IMO has included such positions as Director of the Marine Environment Division, Director of Maritime Safety Division and Secretary of the Maritime Safety Committee. For more details on Mr. Sekimizu’s background, please visit: www.imo.org.
Mr. Koji Sekimizu. February 2012 BC Shipping News 9
Photo credit: Dominic Schaefer Photography; courtesy of BCMEA
INDUSTRY INSIGHT
Heart of a socialist, head of a capitalist.
T
here’s an old saying that if you’re not a socialist before the age of 30, you have no heart, and if you’re not a capitalist after the age of 30, you have no head. Andy Smith is a classic example of this attitude in action. “I’ve enjoyed a lot of success in the labour business,” says Smith. “No one can do this work unless they have a lot of respect for what working people do and an understanding of the substantial differences between the interests of labour and capital.” Smith’s background in labour relations, as well as an early career working on freighters, tugboats and fish boats, has provided the right mix of qualifications to make him highly effective in his current role as President & CEO of the British Columbia Maritime Employers Association. In representing approximately 60 ship owners, shipping agents and terminal operators, Smith is always careful to respect both 10 BC Shipping News February 2012
sides of a position. “I’ve been in boardrooms where decisions were made to close plants and stores — those decisions were made for financial reasons and to pretend that all of the interests of labour are aligned with all of the interests of capital doesn’t work. You can’t sugar-coat that kind of news. Labour representatives, while not necessarily agreeing with the decisions, seem to appreciate that approach.”
It’s our job to help our members make their businesses better — to be more profitable, more effective and offer more employment. BCSN’s interview with Smith offers intriguing glimpses into the world of labour negotiations and the large task of meeting the needs of members so they in turn can grow their business
while satisfying the basic needs of job security, safety and prosperity for longshoremen and waterfront workers. BCSN: What are the priorities for the BCMEA? AS: It’s our job to help our members make their businesses better — to be more profitable, more effective and offer more employment. Our main focus is on labour relations but we’re also fairly active in working with government around regulatory frameworks and looking for improvements in efficacy of oversight. For example, there was a safety complaint about the feeder hole system for loading grain and as a result, we received an adverse ruling from the Ministry of Transportation. We went through a process of interacting with MOT through their appellant process and, in doing our own research on global practices and expert opinions, we built the case that, in our view, the regulator acted on an abundance of caution.
INDUSTRY INSIGHT million tonnes). Containers were up from 22 to 25 million tonnes. For 2011, hours of work rose to a record 6.3 million and containers broke a record as well at 2.9 million TEUs.
The history of waterfront labour relations on the West Coast has been dominated by the threat of work stoppages and back to work orders. BCSN: Over the same time frame, could you describe the trends in labour relations culminating in the eight-year agreement announced last year with the ILWU? AS: The history of waterfront labour relations on the West Coast has been dominated by the threat of work stoppages and back to work orders. It is a systemic problem with a history of multiple bargaining units engaged in several sets of negotiations with numerous opportunities for labour disputes. Recognition of the current structure’s instability and economic importance to Canada was heightened as the Gateway entered into multiple sets of negotiations during the economic crisis of 2009 and the subsequent ministerial interventions in bargaining in order to
protect the fragile economic recovery in 2010. In reaching the eight-year collective agreement with the ILWU Longshore Union, a number of factors were brought into play. After 16 months of contentious bargaining meetings, all parties demonstrated a willingness to recast the subject matter of bargaining and an interest-based approach was pursued as a means to achieving issue resolution. The momentum of those discussions increased as the May 2011 date of the last federal election neared. This had the effect of influencing the Union (and they have said so much in public forum) to make a political calculation given the prospect of a majority government. It’s a credit to Tom Dufresne [President, ILWU Canada] who represented the ILWU and the local union presidents who all participated in the process. It’s no secret that BCMEA was critical of what it saw as some dysfunction in the bargaining process which was a sideeffect of every federal government’s unwillingness to allow any form of significant labour dispute to go on for any length of time. We were advocating with government publicly that there be a change in the way those agreements were made and for a process of
Photo credit: Vancouver Sun; courtesy of BCMEA
That’s a bit of a classic exercise for us. If there are rulings which impede our members’ ability to do their business effectively, we want to make sure that we meet both masters — the master of safety and efficient operations as well as the efficacy of our members. BCSN: Could you describe how your members have fared through the highs and lows of the economy over the past decade? AS: Interestingly enough, 2011 was our biggest year ever in terms of hours worked. That’s coming from container traffic through DeltaPort and a global uptick in exports on the coast in general. Between 1998 and 2008 we saw significant growth. Hours of work grew from 4.4 to six million and container volumes went from 884,000 to over 2.6 million TEUs. Total cargo tonnage went from 52 to 64 million although it was an uneven growth seeing some sectors doing better than others — for example, bulk was flat; break bulk declined from nine to five million tonnes; but container business tripled from eight to 24 million tonnes. We took a big hit in 2009 following the global economic crisis that started in 2008 — labour hours dropped almost 20 per cent, from six to 4.9 million and container volumes fell about 10 per cent to 2.4 million TEUs. Overall, cargo tonnage didn’t show a big hit — down from 64 to 62 million tonnes — however individual commodities showed wide variances with bulk taking the biggest hit. Break bulk remained flat, containers dropped by two million tonnes, bulk was down six million tonnes but grain surged ahead by six million tonnes to 20 million. We saw a good recovery in 2010 and this continued through 2011. In 2010, we recorded 5.8 million hours of work. Container business grew from 2.4 to 2.866 million TEUs and cargo was up from 62 to 72 million tonnes. There was a big recovery in break bulk (from five to seven million tonnes) and an even bigger recovery in bulk (from 15 to 20
Andy stands with Stockwell Day, then Minister of International Trade and Minister for the Asia-Pacific Gateway; the Honourable Lisa Raitt, Minister of Labour; and Tom Dufresne, President, ILWU Canada following news of a historic eight-year labour agreement. February 2012 BC Shipping News 11
INDUSTRY INSIGHT mediation arbitration to replace strike options. The prospects of that happening both from our perspective and Tom’s perspective led to discussions where we were able to make a deal. To make that deal, and moreover to deliver that deal, I take my hat off to him, it was quite an accomplishment.
The
positive
commercial
impact
generated by the eight-year collective agreement has carried through into the parties’ post-bargaining relationship. The positive commercial impact generated by the eight-year collective agreement has carried through into the parties’ post-bargaining relationship. This has opened up opportunities to re-define the union/management relationship and apply it to key areas of training, dispatch
12 BC Shipping News February 2012
and labour relations as a way to advance the interests of both parties. Doing so has required a very deliberate shift in both focus and action from a traditional compliance-based approach to a more collaborative approach that challenges the status quo and the traditional dynamics of historical relationships. The strength of this eight-year agreement lies in the commercial stability it generates for Canada’s West Coast Ports and the message it sends to the rest of the world that the Asia-Pacific Gateway is open for business and can be relied upon to meet a stakeholder’s import and export demands. The challenge will be to build on this stability and grow the business in the years to come. BCSN: I understand you’re currently negotiating the Foremen contract — is there an update available for that? AS: After 20 months of bargaining and five ministerial interventions, I
am pleased to report that the BCMEA and Local 514 have reached a tentative agreement. The term is for eight years in total and will expire on March 31, 2018, identical to that of ILWU Canada (Longshore).
The
strength
of
this
eight-year
agreement lies in the commercial stability it generates...and the message it sends to the rest of the world... BCSN: Looking at the broader subject of human resources, two aspects in particular have been highlighted by BCMEA — improving access to recruitment and training for women and visible minorities; and adapting to new technologies. Could you describe the historical culture on the waterfront and how these two aspects are changing the landscape? AS: Historically, longshoring has been a male-dominated industry in which very few women entered because of the heavy physical labour. Technology has drastically changed that. For example, in the past, all cargo was hand-stowed on vessels and it was very physical labour. Today, the industry is much more technologically driven with the majority of cargo either containerized or palletized. There is more motorized equipment with smart technology that essentially tells the longshore worker what to do and where to go on the dock. BCSN: The increase in technology must impact on your training budget and I understand that you spend roughly four to six million dollars annually just on training. Could you describe the kinds of training tools and programs you have at your disposal? AS: Training is the biggest thing we do. We run 32 “rating” training programs with 55 other safety and production programs, depending on the employer’s needs. There are three training sites, classrooms, 18 pieces of equipment including a bulldozer, a crane, simulators
INDUSTRY INSIGHT
Training is the biggest thing we do. We run 32 “rating” training programs with 55 other safety and production programs... BCSN: What changes have you seen in training methods and standards over the past decade? AS: Internationally, there has been more acceptance of competency-based training and a much faster move to automation. The BCMEA has been actively engaged in the development of a port-worker competency model at the International Labour Organization (ILO). Cost is always a factor but more important is the issue of efficiency. Training in this industry is very expensive as the wage is high and access to equipment is limited. Most European ports have dedicated training sites which are very capital intensive. The BCMEA is moving to an “out of production” training model similar to Europe. It was a bit of a challenge to convince the terminal operators and the union that moving in this direction was worthwhile and we also have the challenge of developing the competencies. While concern was expressed by the unions that competency-based training
Photo courtesy of BCMEA
(crane and front end loader), tractor trailers, forklifts, and a physical training site and coming soon is a pedestal crane and four acres of land to take as much training out of production as possible. This will help significantly to be able to provide better training at a reduced cost with a more efficient schedule. We are one of the major industrial training facilities and operators in Western Canada — there are essentially 4,700 longshoremen who can hold multiple ratings so we do a lot of training every year. Last year, we trained just over 600 employees. We also do assessments throughout the training period which helps a great deal as well.
Andy with Matthew Hoag, General Manager, DP World Vancouver. would lead to less days (from a timebased model), our move to this type of training has been successful due to full engagement of union trainers and flexibility in the introduction of the competency-based model. We continue to work on competencies through a consensus model. Funding for training is paid for by the industry. We have a delivery partnership with the union but all funding is from employers. Related to technology, there are two trends — companies are using more of it but they are simplifying it for the average operator. This makes production improvements difficult as operators need to understand the effects of the technology inputs even though their training is “push the button or pull the lever” which does not help them understand the operational impact of their decisions. We have implemented new technology which is usually softwarebased with little difficulty. BCSN: Focusing on technology for a minute, what other ways has it affected BCMEA operations? AS: BCMEA’s Information Services department develops and supports a variety of systems aimed at aiding members in their day-to-day operations. By providing data and analysis of things like labour costs, modelling of cost
information, and other business-related data, we’re able to provide our members with on-going information that assists them in their commercial endeavors. We are also committed to being in constant contact with our members to ensure that we are aligned with their needs, and that there’s a balanced exchange of technological reliance. Information Services systems also facilitate Workers’ Compensation Board submissions and statistical reporting, including a comprehensive suite of applications designed to manage ILWU work-related, personal, discipline, occupational training, safety, payroll and benefits information. As our members continue to introduce new technology on the waterfront, BCMEA is committed to ensuring that we have the infrastructure and systems in place to support them. BCSN: Has technology changed procedures for dispatch as well? AS: Yes, most definitely. There are four dispatch centres in B.C. — Vancouver, Surrey, Chemainus and Prince Rupert. We operate the Vancouver centre and jointly participate in the other three. The Port works around the clock and the day is divided into three shifts, each specific shift is dispatched at a specific time. The downside to these physical February 2012 BC Shipping News 13
INDUSTRY INSIGHT dispatch times is that there is little time to fill shortages should fewer than the number of required employees turn out on any particular day for any particular shift. This has been mitigated with technological advances in our dispatch processes. Automation and the use of new technologies is a key area of focus for the BCMEA with regard to the way in which labour is dispatched in the Ports of British Columbia. It allows for greater reliability and predictability for our members with regard to the arrival of their daily labour contingents. Improving the predictability of the labour was achieved in the Vancouver local of the ILWU during the most recent round of bargaining. We were able to successfully achieve this predictability by bargaining the implementation of the ‘Declaration of Availability’. This requires employees to declare their availability to work in advance of physical dispatches. Through this early warning system, shortages can be resolved well before shifts start, ensuring no late starts or idle operations. Achieving the Declaration of Availability has not been without challenges, but this underlines our commitment to keep B.C. ports competitive.
14 BC Shipping News February 2012
The Declaration of Availability is fully automated, employees can declare themselves in one of two ways — through the BCMEA website, where they are able to log in and ‘declare’; or through an IVR telephone system. BCSN: Are you anticipating any challenges related to workforce availability as the surge of baby-boomer retirements comes into play? AS: No, we don’t expect to find too many challenges in recruiting longshore workers. This industry has always been desirable due to the excellent salary and benefits. The BCMEA elected to end mandatory retirement in November 2010. To date, there are approximately 35 longshore workers who have elected to continue working past the age of 65. Not only do we retain expertise, particularly in key ratings such as trades, but this policy change provides an offset to any labour shortages that may have been as a result of the baby-boomer retirement surge. BCSN: Looking at the health and safety role the BCMEA plays for the industry, are there any identifiable trends related to safety incidents over the past decade? AS: The injury frequency rate for the waterfront has gone from an extreme
high of 25 in 2000 to under five in 2011 (WorksafeBC’s high risk industry rate is over five; for all employers overall, it’s three). This has been accomplished through mechanization, extensive training, concerted focus by supervisors and senior management engagement. Of concern is the increasing move by regulators to develop more and more prescriptive regulations. Employers generally favour performance-based regulations as it gives them flexibility to comply as they see fit. Regulators are increasingly saying performance regulations are important yet at the same time they bend to labour pressure and implement prescriptive-based regulations. Regulations cannot be written for every situation and every employer. Prescriptive regulations always come with unintended consequences. The other trend by governments that is very concerning is the practice of increasing compensation without scientific evidence. BCSN: What about the Certificate of Recognition (COR) program? Could you provide a bit of background on how this was established and whether you’re seeing any positive impact from its implementation?
AS: COR was established in the B.C. construction industry in 2000 as a pilot program following the example of Alberta where it is considered mandatory for many large employers, especially in high risk industries like oil and gas. It was moved to other industries in 2005. The program is a WorksafeBC program — BCMEA became a Certifying partner in 2007 and provides COR services to waterfront industries, shipbuilding and repair industries and tugboat industries. It’s still in the infancy stage here in B.C. so there is no move at present to make it mandatory however all BCMEA members have signed a document indicating their commitment to COR. Eight of our members and seven non-members within the same industry group are COR certified. It’s a bit too early to tell what impact it’s having on the workplace — investments in health and safety, which is really what COR is, generally take 10 years to show financial benefits however immediate benefits include significant and meaningful union and employee engagement, better procedures and tools, and a concerted risk assessment process by employers. BCSN: You touched briefly on government regulations earlier, could you describe your interaction with government agencies overall? AS: Our primary objectives when interacting with federal and provincial governments and other regulatory agencies are to ensure positive commercial outcomes for our members in areas influenced by government policy and that the BCMEA has a presence at the table when regulatory issues are being discussed. The BCMEA represents members’ interests with the Canadian Industrial Relations Board, Canadian Human Rights Commission — Federally Regulated Employers, Transportation and Communications Organization, Western Transportation Advisory Council, WorkSafeBC, Transport Canada’s Canadian Marine Advisory Council, and Human Resources Services Development Canada (HRSDC). February 2012 BC Shipping News 15
INDUSTRY INSIGHT In addition, the BCMEA engages with other industry associations such as the Shipping Federation of Canada, Canadian Association of Importers/ Exporters, Canadian International Freight Forwarders Association, Coast Forest Products Association, among others, to ensure we are current with industry trends that affect our members.
One of the great things about the maritime sector and growth is that the sky’s the limit. In fact, we have recently created a new marketing department that focuses on two key relationships: the BCMEA’s relationship with federal and provincial governments; and our relationship with our members. One of our key goals is to ensure that BCMEA’s priorities are the priorities of its members.
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Over the last few years we have worked hard to ensure that we understand the nuances of their business and this new level of communication has resulted in some unexpected outcomes, including the 2011 contract settlement with the ILWU. Staying aligned with our members’ needs made this unprecedented eight-year agreement possible. BCSN: Looking at the shipping industry in general and some of the current initiatives and issues at the forefront (e.g., the Enbridge Project, LNG terminal development, the Asia-Pacific Gateway Initiative, etc.), do you have some insight into how B.C. is managing growth keeping these in mind? AS: One of the great things about the maritime sector and growth is that the sky’s the limit. We’re responsive in an effective way to the demand of forest products in Asia — this is all grist, not only for our business but also for all of
About Andy Smith
orn in England, Andy came to Canada in 1947 with his family, including one brother and one sister. “I thank my father every day for bringing us to Vancouver,” said Smith of the move. In addition to attending Simon Fraser University and obtaining a Bachelor of Arts in Political Science and Sociology (“I was bright pink in those days”), Andy spent his younger days working on the water in a variety of positions and a variety of vessels. Andy assumed the role of President and CEO of the BCMEA in October of 2007. Prior to that, he worked as an advisor to the president on labour, environmental and forest policy matters at Interfor. Previous positions include: Assistant publisher at Pacific Press; President of BC Hothouse Foods Inc.; and 17 years in various senior positions at Loblaw’s Companies including Vice President, Labour Relations, North America; and President, Kelly Douglas and Co. Ltd. Andy has held directorships with the Health Employers Association of BC, the Plan Institute and Vancouver Coastal Health Authority. He is currently a board member for WESTAC (Western Transportation Advisory Council), the Jack Webster Foundation, and the BC Business Council. Andy is married to Brigid with three children — Briony, Veronica and Stephen, all now in their 20s. 16 BC Shipping News February 2012
British Columbia. We want to participate in that. For so many years, B.C.’s resource-based economy was driven by the forest sector which is a shadow of its former self even though it’s going through a bit of a golden time right now — if there’s a way to provide well-paying permanent jobs without having to mobilize a whole new industry or infrastructure, it’s our industry.
I believe that [we] have an obligation to develop the techniques and the technology to safely transport anything on this coast. I’ve been up and down this coast many times in many different vessels — they’re dangerous waters and there are risks but I believe that Canadians and British Columbians have an obligation to develop the techniques and the technology to safely transport anything on this coast. We have to turn our minds to finding the best techniques in terms of escort vessels, fuel vessels, and loading vessels up and down the coast. That’s something I believe that environmentalists should perhaps pay a little more attention to — we’re talking about a global environment and we have an opportunity here on the West Coast to be an active marine laboratory for developing best practices. If we proceed sensibly, resolutely, and we use good science and good technology, we should be the place where we develop those techniques. BCSN: We already have in place doublehull tankers, escort tugs, improved radar, etc. — do you think we’ve done enough in developing technology so that traffic through the waters on the coast are safe? AS: We have to draw a line between the liability risk plus the professionalism of the marine operators and I believe there is adequate safeguard in reducing the risk to an acceptable level. However, this doesn’t address the social
INDUSTRY INSIGHT licence issue which exists in a democracy. Anybody that has been up this coast, has seen it in its pristine condition and then considers the impact of a large oil spill, would say ‘I want zero tolerance’. The job of our industry is to meet the requirements of the social licence which is the people of British Columbia saying ‘I accept that there is no such thing as a perfectly safe world and I also accept that we need a reasonable modicum of risk but the benefits in terms of job creation and being able to give our children and grandchildren the means to enjoy the same level of goods and services that we’ve enjoyed means that we have to continue down the path of industrial development’. Part of that development is getting products from the oilsands in Alberta or potash in Saskatchewan out to the rest of the world.
This is a fascinating industry and one with tremendous unrealized potential and I’m just very happy...to be able to do the things I can do to be of assistance... BCSN: How do we increase business for B.C. Ports? AS: I want to see business that is now going into Long Beach or wherever coming here. I’d like to see our terminals and shipping lines compete and get the business. We’re to a point where we’ve addressed complaints about labour instability and the efforts of the BCMEA and the ILWU in reaching the long-term agreement has sent a message literally around the world — in fact, when the agreement was announced, I got a message from a company that was doing a presentation in China and they changed their presentation on the fly to incorporate that message. There is a lot of work for us to do to keep improving our relationship with the ILWU, to deal with our dispatch issues and matching skills with requirements but I think both the
ILWU and the BCMEA have sent a very positive message already with the agreement announcement. BCSN: Could you provide a forecast for future activity on the waterfront? AS: First of all, in the mid-90s, 95 per cent of containers that came through B.C. Ports was destined for Canadian cities. The amount of containers that goes through here for U.S. destinations is where we can realize tremendous growth potential. DeltaPort and Prince Rupert especially can provide a much higher volume of American-bound container cargo — that’s part of the allure of the eight-year labour deal, being able to get the assurance of stability and uninterrupted service to sell that business. On the container side of the business, I’m very hopeful that we’ll see substantial
progress on that side. We have a lot going for us — we’re a day or two closer to Asia; we now have labour stability through to 2018; and the opening of the expanded Panama Canal (opening 2014/15) will change some of the dynamics of decisions for destinations. This is a fascinating industry and one with tremendous unrealized potential and I’m just very happy and excited to be able to do the things I can do to be of assistance in driving the industry. If we can tune up things like dispatch, not only can we preserve the work lifestyle but also increase business efficiencies. I want to see 10,000 longshoremen, not just 4,700. I want to see them sending their kids to college, buying houses and taking vacations. That’s what I like to participate in. BCSN
About the BC Maritime Employers Association
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he British Columbia Maritime Employers Association is the multiemployer waterfront organization representing approximately 65 ship owners and agents, stevedores, container, bulk and break bulk terminal operators on Canada’s West Coast extending from Victoria to the Alaska border. At its core, the BCMEA is a service provider of labour relations for the waterfront employers in British Columbia, representing employer interests on regulatory issues in the areas of labour relations, pensions, legislative reform, Canada Labour Code, health and safety, human rights and employment equity. In addition to labour relations activities, the BCMEA oversees the training and recruitment of the International Longshore and Warehouse Union (ILWU) Canadian Area and the daily dispatch of labour for the Vancouver local of the Union. A positive relationship with the ILWU is essential to the success of this commitment. With that in mind, the BCMEA works co-operatively with representatives of various union locals and the Canadian Area, ensuring that a sufficient and qualified workforce is available to meet the needs of BCMEA members. In the spring of 2011, an historic eight-year agreement was reached with the ILWU, ensuring the reliability of the Asia-Pacific Gateway. Most importantly, together with the BCMEA member organizations, the BCMEA is committed to building Canada’s economic future by working with members and stakeholders to ensure cost effective, reliable services that permit a smooth flow of goods and commerce. For information on the BC Maritime Employers Association, please visit: www.bcmea.com.
February 2012 BC Shipping News 17
CRUISE INDUSTRY
Jobs on a cruise ship: Many skills required.
By Donna Spalding, North West and Canada Cruise Association
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ften described as floating cities, cruise ships offer a variety of employment opportunities. Positions range from the Hotel & Guest Services Operations — crew and staff members who directly or indirectly service and entertain passengers — to Marine Operations — officers and crew who are directly responsible for sailing and operating the ship. Cruise lines also have a significant number of roles in ground operations — taking reservations, meet and greet in ports, and in their corporate offices. As with many jobs in hospitality, entertainment or vacation-related industries, working onboard a cruise ship requires hard work and dedication. It is common for crew to work six days a week and up to 10 hour a day for four to six months at a time. Working onboard a cruise ship can be the experience of a lifetime. The benefits are extensive and many positions are among the most sought after in the tourism industry. There is the opportunity to visit many different countries, explore eye-capturing destinations and 18 BC Shipping News February 2012
experience other cultures. In addition, working in an international atmosphere with guests who are on holiday and excited about their cruise experience can be very rewarding. No other tourism industry has grown as rapidly in the past 10 years as cruise. Over the past four years, the leading cruise lines have doubled their fleets
as well as the numbers of officers, staff and crew working onboard. New cruise lines have emerged, new ships have been built and more are under construction; coming on line at an average rate of seven new builds per year. The number of cruise ship jobs worldwide is expected to triple by the year 2014, the equivalent of over 47,000 new sea jobs.
From hotel operations to officer and engineer positions, cruise lines require a diverse range of skills to operate effectively.
CRUISE INDUSTRY Ten years ago the largest cruise ship was under 100,000 tonnes. In late 2009, the era of the post 200,000-tonne vessel began with the launch of Royal Caribbean Cruise Lines 220,000-tonne Oasis of the Seas, followed in 2010 by the Allure of the Seas. Alone, these two Royal Caribbean ships offer over 4,000 jobs. Every year, ships develop new and more exciting itineraries and onboard activities for their guests’ enjoyment — for example, rock climbing walls, skating rinks, bowling alleys, and themes linked to guests’ special interests — experiences not available only a few short years ago. Close to one million additional guests take a cruise each year over the previous year. There is a cruise ship job for just about everyone. Cruise lines hire applicants from almost every country in the world, filling a wide range of positions from entry-level to those more specialized. Successful applicants are highly motivated, energetic, outgoing, friendly and professional with a positive attitude. Many staff and crew positions are identical or very similar to five star hotels and resorts on land. While many people do not consider cruise ship jobs as life-long careers, some have held a position with a particular cruise line for several years and are front-line ambassadors for the ship and cruise line. Officers, crew and staff members get promoted, change ships or cruise lines, go on vacation, return to school or just settle down on land, providing new opportunities for those who wish to experience life at sea. Applying for a cruise ship job Detailed descriptions and salary ranges for shipboard positions are available from a number of sources. Many of the cruise lines have information and applications on their own websites, however in some cases they endorse specific agencies to handle this process. There are also employment agencies that will assist prospective job seekers for a fee.
Following are descriptions of some of the departments and positions onboard: • Officer positions include Captain, Staff Captain, Safety Officer, First, Second and Third Officers, Environmental Officer and Security Officer. • The Engineering Department includes Chief, First, Second and Third Engineers; Hotel Services and Chief Electrical Engineers, Chief Electrician and Electrical Engineers, Junior Electronic Engineers and Refrigeration and HVAC Engineers. • Hotel Operations and Pursers Department positions include the Hotel and Front Desk — Chief Purser/ Hotel Director and Manager, Deputy Chief Purser, Assistant Hotel Manager, Assistant Purser, Receptionist, Guest Service Associate, Crew Purser, Shore Excursions Manager, Destination Services Manager, Assistant Shore Excursion Manager, Destination Services Assistant, etc. • Financial Services covers Financial Controller, Crew Payroll Manager and Guest Accounts Manager. • The Housekeeping Department includes Chief and Assistant Chief Housekeeper, Housekeeping Manager, Head Cabin Steward, Stateroom and Cabin Steward/Stewardess, Bell Boy, Utility Cleaner, Laundry Staff and Pool Attendants. • The Food and Beverage Department is subdivided into several divisions — Food and Beverage Administration, Restaurant and Bar positions, and Culinary or Galley roles. The list goes on and includes positions in the Beauty Salon and Spa, Casino,
Cruise Activities, Entertainment, Infirmary, Photography Studio, Information Technology, Gift Shop and Retail Sales and Human Resources — just to name a few more.
Understanding...these procedures will ensure you have the best possibility of successfully finding a position in this sector... Cruise ship jobs are very competitive. There is a lot of misleading information regarding cruise line employment available for free on the internet, as well as for sale. This can make the process difficult to navigate. It is important to understand the process of the individual cruise lines. Whether it be sending your resume directly to their Human Resource Department or through their official placement agency. Additionally, cruise lines tend to be very strict about the job application process. Your application package must be complete, correct and sent to the right person. All prospective U.S. and Canadian citizens must hold a valid passport, other nationalities need a C1-D U.S. seaman’s visa. A marine medical examination is also required. Understanding and complying with these procedures will ensure you have the best possibility of successfully finding a position in this sector of the tourism industry.
Specializing in the treatment and disposal of bilge water, waste fuel, waste oil, sludge and hazardous waste. Tel: 250.380.0436 Cell: 250.858.8036 Fax: 250.380.0437
825 Admirals Road Victoria, BC V9A 2P1 plehmann@pwws.ca February 2012 BC Shipping News 19
HISTORY LESSON
Records from a maritime resume By Lisa Glandt
Librarian/Archivist, Vancouver Maritime Museum
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mployment records never seem important to most of us until tax time rolls around every year. For an archivist, employment records can be an amazing source of information that rounds out the story of a person’s life. Within the archival collection at the Vancouver Maritime Museum are different types of maritime employment records of men and women who experienced adventure and hardship during their time at sea. Many of the private collections in the archives are comprised of Certificates of Discharge for Seamen (both certificates and booklets), reference letters, indenture forms, identification cards and other types of employment paperwork. Examples of these types of records can be found in the Edward Crawford Swank fonds. Edward Crawford Swank was born September 13, 1890 in Omaha, Nebraska. His prolific career on the sea began in 1907 as a deckhand for the Canadian Pacific Coast Service fleet. In 1916 Swank joined the Royal Canadian Navy and served on the HMCS Malaspina and on other ships in the Atlantic. After serving for two years, he earned certification as “Mate” 20 BC Shipping News February 2012
in the Royal Canadian Naval Volunteer Reserve. Swank then returned to the CPR and transferred to their Ocean Service fleet. In 1919 he left service to write his Master’s papers, receiving certification as “Master of a Passenger Steamer” on August 5, 1919. Swank’s
first job as a ship’s Master was with Thompson Howe Sound Navigation which was later taken over by the Union Steamship Company. In 1922 he joined the Grand Trunk Pacific Line (later Canadian National Steamships). In 1942 he joined the B.C. Steamship Line (later
The identification card of Edward Crawford Swank — memorabilia like this provides insight, not only into an age long gone, but into the life of a mariner.
VANCOUVER MARITIME MUSEUM
Northland Navigation), running to Alaska for the United States Army. In 1945 he joined the Frank Waterhouse Company which was later absorbed by Union Steamships Ltd. Swank sailed on all of the Union Steamships freighters and was Master of their flagship Cassiar before his retirement on December 6, 1957.
Stored safely away in acid-free boxes, these oversize hand-written ledgers are a unique testimony of Vancouver’s merchant marine history. Within the 47 volumes are the names of the vessels
and crew that shipped out of the Port of Vancouver between 1898 and 1967. In addition to crew names, individual details about the crew member’s position on the ship, wages earned, birthdate and age, name of previous ship sailed on and home address were recorded. The Registers are a popular reference source for genealogists looking to trace the history of seafaring family members and it is always exciting to find a name and track someone’s employment at sea. We are also proud to have used the Registers to confirm wartime service records, thus enabling Veteran Affairs to distribute merchant marine wartime service pensions. So don’t discard those reference letters or old resumes — you never know when they might be used to tell your story to a new generation of maritime historians. Lisa Glandt has been the Librarian/ Archivist for the Vancouver Maritime Museum since 2007. She started volunteering at the museum in 1999 sharing maritime stories with school children and now she preserves the stories. She can be contacted at archives@vancouvermaritimemuseum.com
The records of Edward Swank contain a wealth of information about his character (always marked as “Very Good”) and serve as a blueprint for his maritime endeavours and private persona. What makes these seemingly insignificant employment records even more valuable is that they came to the museum in a very forlorn way — unclaimed by any family heirs, they were found in the Swank household and salvaged by a neighbour before the house was demolished in the early 1990s. Only after processing the records and putting together the pieces of information did the story of Edward Swank come to life once again. The museum archives hold another rare type of maritime employment record — the Register of Seamen Shipped. February 2012 BC Shipping News 21
PORTS & TERMINALS DP World Vancouver/Nanaimo Port partnership creates short-sea shipping opportunity. First ever load-on/load-off container service for Vancouver Island scheduled to start in March…
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P World Vancouver and Nanaimo Port Authority recently signed a three-year agreement that awards DP World Vancouver the right to operate the Port of Nanaimo’s facilities, including the general cargo Duke Point facility and Assembly Wharf. The agreement has opened the door for an exciting opportunity to offer Vancouver Island’s first load-on/load-off container service to Vancouver. “What really drove the change was recognizing the opportunity for shortsea shipping for containers,” said Matthew Hoag, General Manager for DP World Vancouver. “Both ourselves and the Nanaimo Port Authority felt that, based on DP World’s experience as a true global terminal operator, we would be able to use our expertise to not only grow and diversify the variety of commodities currently handled but also to develop a short-sea shipping service that is more efficient, more cost-effective and better for the environment than any other service currently available.” While DP World’s operations on Vancouver Island have, up until now, focused on the vessel side, the contract with Nanaimo Port Authority will be their first presence as terminal operators. Pamela Fry has been appointed terminal manager and will work with Bob Strang who manages all of the ship-side stevedoring on the Island. DP World is in the process of hiring three foremen that will support the terminal operations and will draw from the ILWU Local 508 for daily hires. Administrative activities as well as safety, engineering and, to some degree, commercial oversight will be handled by the Vancouver office. “We are very pleased to be working with DP World over the coming years. The Port wants to handle and ship a 22 BC Shipping News February 2012
Standing: Bernie Dumas, President & CEO, Nanaimo Port Authority; Kerry Lige, Director of Commercial & Stevedoring, DP World Vancouver. Sitting: Bob Bennie, Chairman, Nanaimo Port Authority; Matthew Hoag, General Manager, DP World Vancouver. greater variety of commodities and our agreement with DP World will allow us to explore new business opportunities and to reduce our reliance on a single industry,” said Bernie Dumas, President & CEO of the Nanaimo Port Authority. To date, Nanaimo Port’s main commodities have been forest products, kaolin and salt as well as cruise activity at their recently completed terminal. Hoag expects a strong year, noting that lumber will be the largest product carried for 2012 through Duke Point and the Assembly Wharf. For the cruise port calls, Kerry Lige, DP World Vancouver’s Director, Commercial & Stevedoring, noted that, while the operation does not require a great deal of support, he will be working with Doug Peterson, Nanaimo Port Authority’s Manager of Marketing & Sales, to bring more interest to Nanaimo for cruise activity. “I managed Canada Place for seven years so have a
lot of experience in cruise. As we look at opportunities for diversification, given our experience with cruise activity, this will be one of the areas where we can work together to identify more business.” That spirit of partnership is one of the value-adds that DP World brings to Nanaimo. “We’re not a large organization and they’re not a large organization,” said Hoag, “so there’s the ability to react quickly without going through a lot of red tape. If an opportunity arises that makes sense, we can work together very quickly to make decisions and act quickly.” The container side of business will be handled through an additional agreement — a traditional lease agreement — which will allocate space to DP World for the purpose of short-sea shipping. “We will be responsible for driving this business and handling the containers. In the same way that we will support
PORTS & tERMINALS the Port on break bulk, etc., they will be supporting us from a commercial aspect for mutual benefit,” said Hoag. “Obviously, the more cargo we handle, the more it benefits everyone. Bernie is very forward-looking in his attitude at growing the business and his strategy for expansion will create jobs and benefit the City of Nanaimo overall.” The most exciting prospect of this new partnership is the new short-sea shipping service from Vancouver Island to Vancouver and it is generating enormous interest from island companies with limited options on getting their exports to market. Traditional barge service to the island is roll-on/roll-off and can garner 25 to 30 trailers per trip. The advantage of a lo-lo system is that it provides for greater capacity on a per voyage basis — as many as 160 containers per barge. “To date, no one has been able to provide a true short-sea shipping service,” said Hoag. “DP World will now have facilities at both ends of the voyage —Nanaimo and Vancouver — which makes this venture feasible. We can provide, especially on the export side, direct service to our Vancouver terminal where we serve most of the major markets. Shippers would stuff marine containers which could be trans-shipped through
the international main line out of Vancouver. It provides a hub and spoke system from the Island to the Mainland very cleanly and eliminates all of the additional re-handling and drayage. With that comes a much better pricing model.” Under DP World’s strategy, the proposed logistic supply chain is greatly simplified: Exporters would receive an empty marine container which they stuff with cargo. The container gets put onto a barge at Duke Point and is shipped to Vancouver where it’s transferred directly to the vessel and off to its destination for export. “The advantages are quite significant,” said Lige. “The cargo is only handled once so it’s better cargo care; the shipper knows what lots are going into each container so there is a cost saving measure through logistic streamlining. We will also be extending our computerized system for tracking so the shipper can follow the container from the time it leaves their facility to the delivery point. The main advantage is that once it comes to our facility in Vancouver, it doesn’t have to go to a distribution centre — it can go directly on to a ship. This eliminates the entire trucking piece of distribution which is a huge component of overall costs.”
In addition to being more cost-effective and time-saving, DP World’s shortsea shipping service is also better for the environment. With greater capacity, the number of trips back and forth are decreased and cargo emissions can be reduced by as much as 62 per cent according to DP World’s calculations. By eliminating the need to transport to distribution centres and back to the terminal, truck emissions will also be reduced significantly. “And then there is the job creation that this will bring,” said Hoag. “We estimate 100 full-time equivalent positions after one year.” Hoag and Lige estimate that the service will be up and running by March. Initially looking at two sailings per week with 300 boxes going in each direction, it is expected that within one year, they will be sailing daily with multiple barges. “We’re taking a lot of steps out of the process and this makes us extremely cost competitive,” said Hoag. “We’re also shaving as much as two days off the supply chain process.” The biggest challenge for DP World right now is getting word out about the service and getting people to change their current shipping model which has, in most cases, remained the same for years. Hoag indicated that they are already talking to some major clients. BCSN
Nanaimo Port Authority’s Duke Point and Assembly Wharf — soon to be the site of the first lo-lo short-sea shipping terminal. February 2012 BC Shipping News 23
RAY DYKES
Private Port of Kitimat eyeing public dock. By Ray Dykes
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ritish Columbia’s most successful private port — the Port of Kitimat — is seeking help to finance its first public dock. That’s the hope of the Mayor of the District of Kitimat, Joanne Monaghan, as she reviews a variety of requests from businesses hopeful of using the northern port for their trade to take advantage of its Canadian National Railway links to mid-North American markets and the port’s close proximity to Asia.
West Fraser Timber Co. Ltd. when its Eurocan Pulp Mill closed for good after struggling to survive for years. It has proven to be a master stroke for the United Kingdom-based worldwide mining group, as Rio Tinto Alcan now forges ahead with its long-awaited Kitimat smelter expansion.
But they can’t. The current four deepsea berths spread over three separate docks are privately owned and look like being busy for years and years to come. The major employer in town, Rio Tinto Alcan now owns two of them and will need to squeeze every tonne of capacity from them to assist in a $300 million construction stage now underway in preparation for a $3.3 billion modernization of its Kitimat aluminum smelter which will make it one of the lowest cost producers in the world. In late January 2010, Rio Tinto Alcan bought a second deepsea dock from
the United Kingdom-based worldwide
24 BC Shipping News February 2012
It [the purchase of West Fraser’s dock] has proven to be a master stroke for
mining group... “We are a private port unloading and loading our own materials,” explains Paul Henning, Vice President, B.C. Operations & Strategic Projects for Rio Tinto Alcan. “Our dock use is not quite maxed out today, but it will be in the future.” And Shell Canada (acting for its parent Royal Dutch Shell and a group of international energy partners) bought the only other deepsea dock as part of the purchase of Methanex, which closed
in November, 2005. It is understood that Shell is bound by contract to clear away the former dockside buildings and equipment from the methanol plant by November 2012, and has proposed a new Liquefied Natural Gas (LNG) export terminal, which will be substantially larger than a rival Kitimat LNG project that has started construction work. It is expected the existing deepsea dock — once used for methanol shipments — will be an integral part of any new LNG export terminal. Early news of the Shell project had its daily production as high as 3.6 billion cubic feet per day, but this has since been pruned down to around 1.8 billion cubic feet per day. However, even the lower output figure is more than the 1.4 billion cubic feet per day production of the Kitimat LNG project backed by Apache Corp., EOG Resources Inc., and Encana Corp. Kitimat LNG is likely to be British Columbia’s first LNG export facility. The company has recently revised its business plan and will be building a lique-
ports & terminals faction plant and marine terminal in association with a $1 billion natural gas pipeline between Kitimat and the North American tie-in near Summit Lake in north-central B.C. The bottom line is that none of the existing deepsea docks are likely to be available for other business customers who want to use the port and this has the Mayor worried. The three existing docks break down in the ship handling statistics department like this: • Rio Tinto Alcan original dock: 229 metres long with a draft of 10.67 metres • RTA-owned former Eurocan Dock: Berth 1 (southern) — 137 metres and a 14-metre draft; Berth 2 (northern) — 137 metres and a 10.9-metre draft • Shell former Methanex Dock: 430 metres long, 12-metre depth.
There’s also a base of operations for a full-service tugboat operator, a role now filled by SMIT Marine Canada with two tugs and full-time crews.
“I have jokingly been called the ‘Mayor of gloom’ because of the closures of Methanex and Eurocan, but now I am being called the ‘Mayor of boom’... And as for maintaining a workable deepsea shipping draft, Rio Tinto Alcan has a five-year dredging program for its two docks, but it is understood the former Methanex Dock, now owned by Shell, has never had to be dredged. Self-proclaimed as a “marvel of nature and industry” the private Port of Kitimat is no stranger to massive proposals and at one stage in the past decade had over
Aerial view of the private docks at Kitimat, currently owned by Rio Tinto Alcan and Shell.
$15 billion in projects under study. Some have simply disappeared while others have done their due diligence but have been swallowed up by global recession worries in the meantime. Yet others are plugging along bringing a recent new revival of hope for long-time residents such as two-term Mayor Monaghan, who has been a member of the district council for over 30 years. Never shy for a good quote, the 73-year-old Mayor once called Kitimat a “sleeping giant” and for years she has been waiting for an end to the slumber, which unfortunately has seen valuable labour and skilled trades leave the town of about 8,000 people to find work elsewhere. “I have jokingly been called the ‘Mayor of gloom’ because of the closures of Methanex and Eurocan, but now I am being called the ‘Mayor of boom’ by many,” Photo courtesy of the District of Kitimat.
February 2012 BC Shipping News 25
RAY DYKES
26 BC Shipping News February 2012
Photo courtesy of the District of Kitimat.
says the hardy booster of the district and its singularly private port facilities. But ask the Mayor about the status of the Port of Kitimat these days and the answer may surprise. “What port? We have no port,” she says. And, that’s her dilemma because she has at least five significant business opportunities now in talks or making inquiries, but they need use of deepsea docks and there are none to spare. So, early in December the Mayor suggested to her incoming district council a proposal to find financial backers to build a public dock to serve these new business opportunities before they are lost to the Kitimat area. It’s still only an idea at this stage, and she says council will be working with the interested groups and Victoria to see if a new facility can be developed. Whether any new dock will have shiploading or unloading equipment is still unknown. All ships that currently call on the private Port of Kitimat have their own loading or unloading gear. In another wrinkle, as any proposal will likely involve the use of Crown Land, the Mayor is looking to the Province for guidance and hopes to have an answer soon. Kitimat doesn’t have to do much promoting of its port — private or public. It
Looking northwest, Kitimat’s docks show the Rio Tinto Alcan docks (foreground) and Shell’s dock in the distance. boasts having a competitive advantage as “the fastest, shortest, straightest, flattest route between Asia and North American markets”. The port is situated in British Columbia’s second largest tidewater valley and as far as ports go, it is the third largest in the province and reputedly the deepest. While extracting shipping figures from private dock owners has proven difficult in past years, it is thought exports topped one million tonnes in 2009. But, if Mayor Monaghan can convince the district council to support her idea
of building its own public dock facility, some former advantages may have to be rephrased. Previously, Kitimat has promoted its private port as being outside of Canada’s national port structure “unencumbered by government facility ownership, management, and national union collective agreements” and thus is not affected by any “national contract labour strife”. And while all national and international shipping regulations apply at the Port of Kitimat, “the lack of government port facilities and management means terminals do not pay harbour dues or fees associated with government port structures”. Going public, at least on one dock, will change some of that thinking, but it could also open the door and create so much shipping noise that it will finally awaken “a sleeping giant” of commercial opportunity for the Kitimat area. At least Mayor Monaghan hopes so after years of seeing the private port and its unused potential continually tantalized by the prospects of unrealized growth. Ray Dykes is a former journalist who has worked his way around the world. He is now based in Nanaimo as a writer/ photographer. Ray can be reached at prplus@shaw.ca.
ports & terminals BOOK REVIEW An engaging read for history buffs and industry professionals. A review of Dr. W.B.M. Hick’s Canada’s Pacific Gateways — Realizing the Vision
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his book should be required reading for anyone involved in the shipping industry on the West Coast. For history buffs and everyone else, they will find a well-written true story that is engaging, entertaining and enjoyable. When I finished reading Canada’s Pacific Gateways – Realizing the Vision, I felt like I had just finished a jigsaw puzzle and was finally able to see — and understand — the big picture of the deep-sea shipping industry in British Columbia and its significant contribution to defining the province we live in today. Dr. Hick has produced a comprehensive and very well-researched account of port development in British Columbia. More than that though, it is the tale of a province — the early challenges of a new member within a confederation; the roots and catalysts of political decisions; and the impact of economic forces and global events beyond our control. As Don Krusel, President & CEO of
Prince Rupert Port Authority notes in the Foreward: “…Dr. Hick clearly illustrates…[that] political influences and human interventions, while important, have often had to take a back seat to the more dominant forces of major world events and economic factors; factors that have helped mould and shape the complexion of the maritime transportation industry on Canada’s West Coast for 150 years.”
Cover shot: Dr. Hick’s book is available through www.amazon.ca.
...facts are not simply recited but, rather, are meaningfully analyzed and assessed, giving the reader a better understanding of the motivations behind decisions... What I found most appealing about Dr. Hick’s account of the development of both Northern and Southern Pacific Gateways is the way that facts are not simply recited but, rather, are
Dr. W.B.M. Hick stands between Prince Rupert Mayor Jack Mussallem (left) and Prince Rupert Port Authority President & CEO Don Krusel (right).
meaningfully analyzed and assessed, giving the reader a better understanding of the motivations behind decisions and, ultimately, the myriad of consequences that the benefit of hindsight always brings. Further to this, because of Dr. Hick’s writing style, the reader can vividly imagine the conversations, negotiations and backroom dealings that were instrumental in shaping expansion — and sometimes the lack thereof. The origins of Canada’s Pacific Gateways can be found in Hays’ Orphan, Dr. Hick’s first book which focuses on the history of the Port of Prince Rupert. Rather than update Hays’ Orphan, as was originally planned in 2008, Dr. Hick expanded the project to include the Southern Gateways at Victoria, New Westminster and Vancouver. The result is a far-reaching and ambitious, historical account of the growth of B.C.’s transportation system. Because Dr. Hick recognizes and establishes a context of external influences in a complementary process throughout, the reader gains valuable insights into the evolution of national and international trade. Starting with a primer on rail corridor development and Canada’s early struggles to establish a sea-to-sea link, Dr. Hick leads the reader through the February 2012 BC Shipping News 27
ports & terminals BOOK REVIEW
Where to get it...
28 BC Shipping News February 2012
review. Speaking of the Port’s involvement in the book, Krusel said: “It’s a privilege for us to play a role in ensuring Dr. Hick’s extraordinary book — and his passion for Canadian maritime history — will reach a wide audience. As ports like Prince Rupert compete in a global marketplace, it’s crucial to learn from our respective pasts. This is a clear, insightful and eminently readable record of that past, and a sober but optimistic assessment of the industry’s future.” BCSN
Before and after...Both the City and Port of Prince Rupert have come a long way since 1907 when the shot above was taken. Photo credit: John McDonald, Prince Rupert, B.C.
Canada’s Pacific Gateways — Realizing the Vision was published by the Port of Prince Rupert and is available (for $39.99 plus HST and shipping if applicable) in the following bookstores: Terrace — Misty River Books Prince Rupert: Seahorse Trading Eddie’s News Stand & Novelties Seahorse Trading Prince Rupert Archives Vancouver Vancouver Maritime Museum New Westminster Museum & Archives Victoria — Munro’s Books Sidney — Tanner’s Books Canada’s Pacific Gateways — Realizing the Vision is also available online through Amazon Books (www.amazon.ca).
things maritime led to a term on the first Board of Directors of the B.C. Ferry Corporation and subsequently the Board of Directors of the Prince Rupert Port Authority. He was presented with a Certificate of Commendation by the Association of Canadian Port Authorities in 1995 and the prestigious Medal of Merit (again by ACPA) in 2009. With assistance and great support from the Port of Prince Rupert, Canada’s Pacific Gateways — Realizing the Vision is now available for public Photo credit: Wrathall Collection, Prince Rupert City and Regional Archives
earliest days of B.C.’s coastal exploration and establishment; through welldefined chapters encompassing the 20th Century; and eventually ends (albeit, as Krusel has noted in the Foreward, “the last and…most exciting chapter is yet to be played”) by considering current advantages and disadvantages that will define expansion and growth over the next decade. Of the three years spent researching and compiling the material — including over 200 historical and modern photographs that visually plot the development of our coast — Dr. Hick remarked on his reluctance to close the manuscript on this ever evolving story as well as his realization of the need for a companion volume detailing the story of a century and a half of marine operations serving communities and industries located along the Coast of British Columbia. Dr. Hick spent 40 years living and working on the North Coast. Originally from Victoria, his lifelong interest in all
SHIPPING
The year ahead:
Challenges and expectations. By Captain Stephen Brown President, Chamber of Shipping of British Columbia
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hilst the beginning of a new year provides opportunity to reflect with 20/20 vision on the year that is now behind us, more importantly it offers incentive to look forward and prepare for the challenges ahead. Before we do that however, let’s look back a little as history tells us that the 12th year of the century can be momentous. In June 1812, Napoleon invaded Russia only to see his army of 500,000 eventually annihilated. As many of us
were taught at school, and perhaps the only good thing to come out of that war, the famous 1812 Overture was written by Tchaikovsky to commemorate Russia’s defence of Moscow. Closer to home and almost simultaneously (perhaps not to be overshadowed by Napoleon) President James Madison and the U.S. Congress declared war on Great Britain. Land and sea battles raged for over two years before peace was negotiated whereby Britain’s colonies would remain independent of the
The Titanic sails from Southampton, April 10 1912.
United States, forging what would become “the Nation of Canada” some 50 years later. In 1912, the year began with Dr. Sun Yat Sen declaring the Republic of China, effectively concluding 2,000 years of imperial rule in that country. From a purely shipping perspective, 1912 will always be remembered for a single event, namely the sinking of the RMS Titanic. Relatives of passengers and crew who sailed on the Titanic are to mark the
The cruise ship Balmoral, operated by Fred Olsen Cruise Lines. February 2012 BC Shipping News 29
shipping centenary of her loss by sailing on April 8 from Southampton on the cruise ship “Balmoral” to retrace her track across the Atlantic. A memorial ceremony will be held at the precise time that she went down. The Titanic hit an iceberg at 23:40 on April 14, 1912 and sank two hours and 40 minutes later, with the loss of 1,517 lives. The wreck still rests on the seabed where it sank, 375 miles southeast of Halifax, Nova Scotia, the city where the graves of many of the bodies recovered are visited by thousands of tourists each year. The formal Board of Trade Enquiry into the sinking of the Titanic resulted in fundamental changes to ship design
and the mandatory provision of lifesaving equipment. These included: • Double-bottom construction • Water-tight transverse sub-division • The provision of lifeboats and liferafts for all persons onboard • Mandatory wireless telegraphy including provision for 24-hour monitoring • New recommendations with respect to the navigation of vessels in ice Whilst several times updated over the last century, the fundamentals of these recommendations are valid to the present day, perhaps serving to underline that whilst the marine industry has
historically suffered its share of incidents and losses, each provides for lessons to be learned and applied. The new Secretary General of the IMO, Mr. Koji Sekimizu of Japan, who assumed office on January 1, already has a major file on his desk following the loss of the cruise ship Costa Concordia which grounded and rapidly capsized on the night of January 13/14 off the West Coast of Italy with tragic loss of life. Speculation is naturally rife as to what occurred in this rare incident involving a modern cruise ship but suffice to say, there will be lessons learned and applied, just as there were 100 years ago. So what lies ahead for the marine industry in 2012?
Desperate times call for desperate measures and in Q4 we saw significant moves toward consolidation, if only for survival. Shipping markets Whilst 2011 began strongly, it didn’t last and most sectors of the industry, both wet and dry, suffered a year they would prefer to forget. Over capacity in the container industry and a reluctance to lay up vessels to balance capacity with demand resulted in a freight rate blood bath on the main east-west trades. Desperate times call for desperate measures and in Q4 we saw significant moves toward consolidation, if only for survival. Inevitably, ocean carrier fiscal challenges also directly impact our terminals, themselves key supply chain stakeholders striving to make economic sense of their current assets, not to mention the unrelenting demand for investment in new capacity. In the bulk sector, Capesizes had a difficult first nine months but perked up in Q4 as Chinese purchases of coal and iron ore gathered momentum. Unfortunately this did not trickle down to any great extent and the year ended with heavy pressure on rates throughout the sector. 30 BC Shipping News February 2012
shipping On the tanker side, 2011 was, as the Queen would say, another “annus horribilis”. Owners were for the most part losing their shirts from beginning to end and there is no prospect for improvement in 2012 on account of significant excess capacity throughout the sector. On the cruise front, things were good but not brilliant. Our coast saw an improvement in passenger numbers, largely on account of the efforts of Mickey and Minnie of Disney fame with weekly sailings to Alaska throughout the season. The relocation of Disney Wonder to Seattle as home port for 2012 is disappointing but let’s hope they miss us and have a change of heart for 2013. It’s hard to see where market improvements will come from in 2012 as the fundamentals remain bleak. Too many ships, G8 countries experiencing minimal if any economic growth and only China providing any hope of recovery in the medium term. Here however another challenge is emerging — the accelerating insistence of China to move its resources, both import and export in Chinese controlled tonnage.
Perhaps not in 2012, but certainly at some point, shipping will need to come
Figure 1.1 — Growth of China’s VLCC fleet. tanker ownership in the past 10 years. (See Figure 1.1) Perhaps not in 2012, but certainly at some point, shipping will need to come to terms with the emerging strategy of China’s shipbuilding industry to achieve world dominance. In the VLCC sector alone, over the past five years, China has gone from virtually nothing to 78 vessels. This is effectively squeezing independent tanker owners from the China market and will almost certainly contribute to the failure of some smaller and less diversified operators. China’s seaborne crude oil imports are predicted to grow 10 per cent in 2012 and by 2015 it is predicted that LNG imports will triple.
Shipping and the environment We have been talking of 2012 for some years now, the reason being that the implementation of a Continental North America Emissions Control Area (ECA) will take effect as of August 1 (see Figure 1.2). The practical impact of this is that from 200 nautical miles off the coast, incoming vessels will be required to switch to low sulphur fuel of maximum one per cent sulphur content. This will add additional expense to the cost of steaming within 200 nautical miles of the coast but not nearly as much as in 2015 when allowable maximum sulphur content declines to 0.1 per cent.
to terms with the emerging strategy of China’s shipbuilding industry... China’s increasing dominance of international seaborne trade is well acknowledged within shipping circles but it is only when you drill down into the data that you begin to get a real sense of the shifting balance of power in the global economy. China is now responsible for: • 20 per cent of global seaborne trade • 30 per cent of containerized trade and 10 per cent of container vessels • 25 per cent of containerized exports • 20 per cent of global dry bulk capacity • 700 per cent growth in crude oil
Figure 1.2 — Continental North America Emissions Control Area. February 2012 BC Shipping News 31
shipping sought from the international marine industry. The basis for the COP17 proposal is the perceived need to identify funding sources for mitigation of climate change in developing countries. Advocates have proposed a carbon price levy of $25 per tonne to be applied to bunkers arguing, controversially it may be said, that this would help to cut emissions. The World Bank and IMF have estimated that the levy could raise $26 billion a year towards the fund. The stage is therefore set for what is likely to be a significant IMO debate in 2012. A third major development is likely to be the adoption of the IMO Ballast Water Management Convention which, since 2004, has been trying to harness
For ships steaming the coast between U.S. and Canadian ports, most especially cruise ships captive for the full five months of the Alaska cruise season, the additional cost will be very significant, possibly as much as $100 per passenger on a round voyage to Alaska. The other aspect of this is the lingering question mark over low sulphur fuel availability on a global basis in order to achieve compliance. There has already been much discussion with Transport Canada related to enforcement policy.
Also of concern as we go into 2012 is the draft proposal coming out of the December 2011 COP17 meeting in
A further discussion is that of Green House Gas (GHG) emission reduction from ships. A start was made following agreement at the International Maritime Organization (IMO) in July 2011 that saw the approval of both the Energy Efficiency Design Index (EEDI) and Ship Energy Efficiency Management Plan (SEEMP), both of which will come into effect in 2013. The base formula to calculate a ship’s EEDI is shown in Figure 1.3 — as you might imagine, this has been greeted with consternation by simple sailors like myself. Meanwhile, the debate continues as to whether shipping should be required to meet specific GHG reduction targets, accept a straightforward bunker levy or enter into some form of Cap and Trade scheme as indeed the European Union is attempting to impose on the airline industry. The coming year is likely to see one of these options taking centre stage. Also of concern as we go into 2012 is the draft proposal coming out of the December 2011 COP17 meeting in Durban for the establishment of a Green Climate Fund of $100 billion per year with substantial contribution being 32 BC Shipping News February 2012
A third major development is likely to be the adoption of the IMO Ballast Water Management Convention... For the first time, in an effort to eliminate the carriage of invasive aquatic species, the convention will eventually require all vessels to treat ballast water rather than simply perform a change in mid-ocean. As with bunkers, lingering questions are never far away, specifically in this case as to whether a typeapproved treatment system having the
Source: Parks Canada
Durban...
enough signatures to gain ratification (30 per cent of member states and 35 per cent of world deadweight tonnage).
Proposed National Marine Conservation Area Reserve.
shipping could if some groups have their way and for that reason, we need to work collectively ever harder in 2012 to maintain our all-important social licence. We must also recognize that sustainability includes the paramount requirement for financial sustainability.
We would be neglectful not to comFigure 1.3 — Energy Efficiency Design Index (EEDI) base formula. capacity to move thousands of tonnes of ballast per hour can become a reality. Other environmental issues which will be brought to the fore in 2012 are: • Individual state air and ballast water standards, especially in California and New York, which cannot be achieved with current technology. • Proposed new ship’s hull bio-fouling standards in California which are likely to prove impractical. • Reduction of marine underwater noise, sometimes known as aqua-acoustics.
We anticipate a further turn of the screw on our industry...as a consequence of a number of projects... Regionally, the proliferation of federal, provincial and First Nationssponsored “Marine Protected Areas” (MPA), “Marine Conservation Areas” (MCA) and even a “Marine Wildlife Area” (MWA) along the coast of British Columbia promises a whole new set of challenges in 2012. The advancement of these initiatives over and above the Pacific North Coast Integrated Management Area (PNCIMA) generates different levels of expectation and concern depending on your perspective. Whilst undoubtedly well-intended by some proponents, the motives of others is suspect, however for the marine industry, the whole issue is rapidly developing into duplication of effort, questionable objectives and confused jurisdictions, none of which is helpful
to the development of a sustained AsiaPacific Gateway. Social licence and sustainability Related to the discussion on environment are the issues of social licence and sustainability — no social licence, no sustainability. We anticipate a further turn of the screw on our industry regionally in 2012 as a consequence of a number of projects related to: • Expansion of existing capacity and the addition of new capacity to facilitate the export of Canada’s vast crude oil reserves to Asia. • The export of Liquid Natural Gas (LNG) — up to six individual projects are under consideration in Northern B.C. • The Container Capacity Improvement Program and T2 project in Vancouver along with terminal capacity expansion in Prince Rupert. • Continued expansion and improved utilization of our dry bulk export handling capacity.
...we need to work collectively ever harder in 2012 to maintain our allimportant social licence. I recently spent a couple of weeks of annual vacation in Sydney, Australia, where industrial shipping has been more or less sent packing in favour of residential and retail development throughout that city’s magnificent waterfront. It would be a mistake to assume that this could not happen here — it certainly
ment on the 2012 challenges facing many of our colleagues in the federal government. Reductions in federal and provincial government budgets We would be neglectful not to comment on the 2012 challenges facing many of our colleagues in the federal government. Key federal departments were last year instructed to submit proposals for budget reductions. In 2012, Transport Canada (TC) and Fisheries and Oceans Canada (DFO), within which the Canadian Coast Guard (CCG) sits, will be looking for five per cent cuts; Environment Canada around 30 per cent. We have also been advised, in no uncertain terms, that an era of “user pay for services” is upon us. We are therefore faced with a detailed review of what services these key departments will provide and how they will be supported. The situation with the Canadian Coast Guard, where discussions on future responsibility for the provision of navigation aids are already underway, is particularly concerning. Additionally, we will need to work with CCG in addressing the issues highlighted in the 2010 Report of the Commissioner of the Environment and Sustainable Development in the office of the Auditor General of Canada with respect to Canada’s ability to respond to oil spills. Under current protocols, Transport Canada sets guidelines and establishes the regulatory framework for preparedness and response to ship-source spills. Transport Canada also certifies private sector response organizations. The February 2012 BC Shipping News 33
shipping Canadian Coast Guard is the lead federal agency for responding to spills and is responsible for ensuring an appropriate response takes place. Environment Canada is the federal authority for providing environmental advice when a spill happens.
Make no mistake, this was a hardfought battle and Seaspan deserves every credit for its achievement. National Shipbuilding and Procurement Strategy (NSPS) One of the highlights of 2011, and which, from a local perspective, will feature prominently in 2012 is the successful bid by Vancouver Shipyards for a significant portion of the government’s new vessel construction requirements over the next 30 years. Make no mistake, this was a hard-fought battle and Seaspan deserves every credit for its achievement. The first steel is scheduled to be cut in 2013 but in preparation for that, there will be major investments in facilities, technology and personnel recruitment. A Final Thought Going back to the Titianic, as it seems we cannot escape the subject of ice, thousands of artefacts recovered from the wreck, valued at around $200
Vancouver Shipyards in North Vancouver will be building CCGS John G. Diefenbaker National Icebreaker to replace CCGS Louis S.St-Laurent (above) which will be decommissioned in 2017. million, will be sold at auction in New York on April 15. The collection of 5,500 items which were recovered over seven expeditions between 1987 and 2004, are to be sold as a single lot and a condition of purchase will be that they are available for public viewing. Leonardo DiCaprio is not expected to bid but his movie, first released in 1997, will enjoy a nostalgic April re-release in 3D to
mark the centenary of the tragedy. It will probably do well. Stephen Brown joined the Chamber of Shipping of British Columbia in September 2008. He currently sits on several committees and boards representing the interests of the B.C. shipping community. He can be reached at stephen@cosbc.ca. For more information on the Chamber, please visit: www.cosbc.ca.
The Business of Shipping
The Chamber of Shipping of British Columbia and the Institute of Chartered Shipbrokers are pleased to present the next “Business of Shipping” courses on February 21, 2012 in Vancouver. Morning Course (09:00 to 12:00): Vessel Agency Dave Hill (Compass Marine Services) The Governance of Shipping and Maritime Law Peter Swanson (Bernard & Partners)
Afternoon Course (13:30 to 16:30): Chartering - Dry Bulk, Tanker and Container Daryl Raibl (CTL Westrans Shipbrokers) Paul Hexter (Waterfront Shipping Co. Ltd / Methanex Corp.) Kelly Williams (Gearbulk Shipping Canada Ltd.)
Each Course costs $125.00+HST payable in advance. The fee includes refreshments. If you attend the morning and afternoon courses the fee will be $200.00+HST. Student concessionary rates available. For more information, please contact Rose Bray at 604-681-2351 or email: businessofshipping@cosbc.ca.
34 BC Shipping News February 2012
international shipping
The climate debate: The outcomes of COP 17 in relation to international shipping.
By Kaity Arsoniadis-Stein LLB, LLM President & Secretary-General International Ship-Owners Alliance of Canada
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here is much debate and analysis on whether the latest round of climate change negotiations in Durban, South Africa yielded tangible results from the global efforts of 194 nations to tackle climate change. Certainly, it was not expected that the outcomes from Durban would solve the climate crisis. However, some believe that the “package” deal consisting of a new “Durban Platform” to negotiate the long-term future of the regime, a second commitment period for the Kyoto Protocol (extended either five or eight years as will be decided at COP 18), a “Green Climate Fund” (GC Fund), and the decisions designed to implement the Cancun Agreements, represent a significant step forward. This brief article will summarize COP17 vis-à-vis the international shipping industry. Background The United Nations Framework Convention on Climate Change (UNFCCC) is an international environmental treaty that emerged out of the world’s first Earth Summit meeting that was held in 1992 in Rio de Janeiro, formally known as the United Nations Conference
on Environment and Development (UNECD). John Major, Fidel Castro and George H.W. Bush were among the leaders who attended the original Earth Summit, which was the world’s biggest ever political gathering at that time. The purpose of the UNFCCC treaty is to stabilize greenhouse gases (GHGs) in the atmosphere in order to prevent dangerous anthropogenic interference with the climate system. UNFCCC does not set mandatory limits on GHGs nor does it contain enforcement mechanisms and therefore, the treaty is considered legally non-binding. The UNFCCC does however include mechanisms that allow for updates, called “protocols” to set mandatory emission limits, the most famous being the Kyoto Protocol. The parties to the UNFCCC have met annually since 1995 in the Conferences of the Parties (COP), with the most recent session, COP 17, which was concluded in Durban, South Africa December 11, 2011. The Green Climate Fund (GC Fund) The launch of the GC Fund was one of the most important outcomes from Durban. The COP approved the governing instrument however the failure
to provide clear signals on how longterm finance to support developing countries will be raised and mobilized was a setback. In fact, with no outcome on sources, there is concern that the GC Fund will be an empty shell. With respect to the shipping industry, it is important to be aware that a number of governments had proposed various options for possible text on bunker fuels and that some of the funding should be raised by international shipping through a linkage to the Market Based Measures that are being developed by the IMO. The only resulting text applicable to shipping from COP 17 was as follows: COP 17 “agrees to continue its consideration of issues related to addressing emissions from international aviation and maritime transport.” The GC Fund is intended to generate $100 billion annually by 2020 aimed at helping poorer countries tackle the effects of climate change. References to specific financing sources, including shipping, were removed from the final text, which focused on a management framework involving the World Bank. February 2012 BC Shipping News 35
international shipping International Maritime Organization (IMO) One of the most essential elements for operating merchant ships internationally is the need for an internationally adopted and implemented regulatory framework, as provided by the IMO, that harmonizes shipping and secures a level playing field. Keeping regulation global is of utmost importance. When politically inspired implementation of regional and national legislation occurs, it creates confusion, inequity and inefficiency for the entire sector. Over 80 per cent of global trade is carried by sea. In order to assure the world community that shipping can continue to serve world trade in a predictable and reliable manner, there is a need for a global regulatory framework based on free trade, fair competition and business practices, unhindered market access as well as ensuring flag-neutral global regulations. The IMO’s objectives at Durban were to make the UNFCCC Parties aware of the significant advances made by the IMO on its work plan — technical, operational and market-based measures. Furthermore, it was important to communicate that the IMO should continue its work by further refining the adopted technical and operational measures and to continue developing a complementary market-based measure. IMO Secretary-General Efthimios E. Mitropoulos (now succeeded by Koji Sekimizu) stated that in his view: ...by adopting the Durban Platform, the Conference has once again moved forward several items on its agenda, achieved further commitments under the Kyoto Protocol, agreed to a process leading to a new legally binding instrument and put in place mechanisms to give effect to the high priority issues emerging from last year’s Cancun Agreements including those related to technology, adaptation and climate finance. The IMO was successful in its objectives and COP 17 noted the progress made by the IMO in adopting regulations on energy efficiency for ships under MARPOL Annex VI as well as the IMO’s continuing work on market-based measures. Analysis Although there was agreement to design a Green Climate Fund that would produce $100 billion a year by 2020 for poorer nations, by the close of session, little was agreed on establishing from where the money would come or how the money would be applied. The results at Durban did not clarify or advance the shipping sector’s obligations. UNFCCC did not attempt to assume control over ship emissions and therefore the IMO continues to control the agenda with respect to ship emissions. In fact, during a high-level side event, UN Secretary-General Ban Ki-moon endorsed the IMO’s achievements on technical measures. It will be very important to monitor the discussions about the GC Fund which will occur between now and COP 18 in Qatar. Should any definitive conclusions about the financial contribution from shipping occur, 36 BC Shipping News February 2012
CO2 emissions by sector (total global emissions). then there will certainly be further accelerated considerations to the IMO discussions. Assuming that CO2 has a price; assuming that the shipping industry is an emitter of CO2; and assuming that the shipping industry must take progressive and responsible steps to reduce its environmental footprint for the benefit of humankind, then should not the bulk of the money raised by the shipping industry be used by the shipping industry towards research and development to help tackle the shipping industry’s environmental impact? If the output is to reduce ship emissions this would seem the effective solution to the implementation of a shipping tax on carbon, and in this case, a tax on trade. Market reality vs. regulations Even without a UNFCCC global legally binding agreement in place, the astronomically high fuel prices of today — above $700 per tonne (up until 2005, fuel prices were below $200 per tonne) — are already pushing the shipping industry to reduce emissions. It is the high cost of fuel that will drive change within the industry and not the $25-a-tonne carbon price that is estimated for a bunker fuel tax. At present, fuel prices are up to 70 per cent of a ship’s operation costs and therefore, reducing fuel consumption is the most profitable initiative a ship-owner can take. Furthermore, high fuel prices will stimulate technical changes to improve fuel efficiency while accelerating research and development for alternative energies. Clearly, the incentive to improve fuel efficiency is already in place. Furthermore, in terms of regulatory advances in international shipping, new regulations on energy efficiency for ships were adopted under Chapter 4 to Annex VI Regulations for the prevention of air pollution from ships. For a fuller discussion on this, I reference the September issue of BC Shipping News where I wrote about the significant achievements made by the shipping industry in July 2011 at MEPC62 of the IMO. This monumental deal that was struck at the IMO makes
international shipping shipping the first industry sector to introduce global mandatory greenhouse gas reduction measures. Canada’s withdrawal from Kyoto Given Canada’s positioning, it will be interesting to see how these climate talks proceed. A handful of Kyoto signatories — Japan, Russia and notably, Canada, explicitly stated at Durban that they will not be bound by any second stage Kyoto commitments. Canada made it clear that although it supports a new international climate change agreement that includes commitments from all major emitters it will not sign on to any new binding international agreements unless China does more to curb its emissions and agrees to a similar binding goal itself. Canada’s Environment Minister noted that targets cannot be met if major nations such as the U.S. and China are not covered by Kyoto. Canada has taken a strong position and stated the obvious: if the world’s largest emitters — the United States and China — are not covered by the Kyoto Protocol then how can the Protocol work?
...should not the bulk of the money raised by the shipping industry be used by the shipping industry towards research and development to help tackle the shipping industry’s environmental impact? Co2 for thought This article would not be complete if mention was not made of the numerous theories in circulation with respect to this new trillion-dollar carbon commodities market (whether a carbon tax or an emissions trading system) and the staggering economic ramifications that will unfold and transform the global economy. Skeptics say that this international tax regime proposed under the pretence of climate change appeals to our concern for the environment while distracting us from the fact that this unprecedented global carbon tax, which would be paid
to the World Bank, will have created a new trillion dollar industry. Skeptics say that a global carbon tax/emissions trading scheme will have nothing to do with reducing carbon emissions and everything to do with financing the coffers of a world government.
...this unprecedented global carbon tax, which would be paid to the World Bank, will have created a new trillion dollar industry. Some scientists have gone on record stating that climate change is a natural phenomenon that has affected humanity through the ages. They are not disputing global warming. What they say is that global warming is not caused by human CO2 but is directly related to solar activity. The theories promulgated stress that a carbon tax is nothing but a money grab and in fact to reduce CO2 in the atmosphere is the worse thing to do as it is absolutely essential to plant life. Dr. Richard S. Lindzen, a Professor of Meteorology at the MIT, is an atmospheric physicist who was one of the authors of a study regarding the ratification of the Kyoto Protocol that was conducted for the White House. He supports that global warming is a fiction of policy-makers which facilitates them to raise funds and enforce their power. The science debate is very involved, at times controversial, at times conflicting. Bjorn Lomborg — author of The Skeptical Environmentalists: Measuring the Real State of the World, a former member of Greenpeace, Professor of Statistics at the University of Aarhus, Denmark and founder of the Copenhagen Consensus — has a theory that has received a lot of international attention. He does not deny global warming. He postulates that stop-gap measures can be adopted through necessary research and development and geo-engineering that currently exists while we work on inventing the
necessary technologies that will eventually remove society’s addiction to fossil fuels. I recommend watching the interesting documentary that has been made from the book called Cool It. Concluding remarks Given the above, is a fossil fuels-based economy sustainable? Reliance on fossil fuels is our global reality (about eight per cent is renewable energy, nine per cent is nuclear and 83 per cent is gas, oil and coal) as we have yet to find alternative sources of energy for the human race as a whole. We continue our reliance on fossil fuels which are necessary for humankind, yet we are aware of the negative societal impacts from supply risks, volatile prices, unstable climate caused by increased emissions, political instabilities, etc. While nations gather in global Earth Summit meetings, with the next COP 18 in Qatar, to negotiate a legally binding agreement that would set ambitious emissions reductions and outline how to financially distribute the trillions of dollars that will be generated, I wonder why a global effort of this magnitude could not be put in place where 194-plus nations huddled to develop alternative energies to eradicate the world’s dependancy on fossil fuels. Ms. Kaity Arsoniadis-Stein LLB, LLM, President and Secretary-General, International Ship-Owners Alliance of Canada (ISAC) since 2006, is also a Director of the International Maritime Centre, Vice President and Director of the Vancouver Maritime Arbitrator’s Association and Trustee of the Insurance Dispute Resolution Services of B.C. Kaity obtained her LLB degree in English Law and her Masters of Laws degree (with honours) in Maritime Law from King’s College, London University and was called to the Bar in B.C. in 1998. Kaity can be reached at kaity@kaitystein. com. For more information on ISAC, please visit: www.isacinc.ca.
February 2012 BC Shipping News 37
shipyards
One step closer to cutting steel.
Vancouver Shipyards and federal government sign agreement-in-principle for shipbuilding umbrella agreement...
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easpan Marine Corporation and the federal government formally recognized and celebrated the completion of an umbrella agreement that sets out the terms under which Seaspan’s shipyards in North Vancouver and Esquimalt, B.C., will build noncombat vessels for the Canadian Coast Guard and Royal Canadian Navy. “This is a significant agreement and important milestone in the 25 to 30year relationship we will have with the Federal Government,” said Jonathan Whitworth, Seaspan CEO. The celebration follows the October announcement that Seaspan was the successful bidder for the $8 billion NonCombat Program.
“With this agreement, we can now begin work on vessel design and look towards starting to cut steel for the first vessel in 2013,” said Whitworth. “From the start of the NSPS project over a year ago, the Government of Canada promised a fair, transparent and open process that would see winning bids chosen on merit and not on political factors. We are delighted the Government of Canada held true to this commitment and look forward to a long and successful relationship. “On behalf of the Washington family, our unions, workers, and partners, I thank Prime Minister Stephen Harper, Minister Ambrose, the Assistant Deputy Minister, PWGSC (Acquisitions
Branch), our local MPs, and the NSPS Secretariat for the integrity of their process and for the confidence they have placed in our hands. We will deliver the world’s best ships to the Canadian Coast Guard, Royal Canadian Navy and to the people of Canada.” Speaking before a crowd of approximately 300 which included Seaspan Marine workers, labour and industry representatives as well as Canadian Coast Guard and Royal Canadian Navy representatives, Prime Minister Stephen Harper said: “Our Government is committed to supporting the Canadian marine industry, to revitalize Canadian shipyards and to build ships for the Royal Canadian Navy and the
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38 BC Shipping News February 2012
shipyards Canadian Coast Guard. The agreement-in-principle reached today with Vancouver Shipyards Co. Ltd. is a milestone of our Government’s National Shipbuilding Procurement Strategy — a strategy that will mean jobs and economic growth for the country and stability for the industry.” Construction on the first ship is expected to start next year, while construction of new buildings and infrastructure at
both Vancouver Shipyards and Victoria Shipyards is expected to start in 2012. The NSPS, notable for its independent and unbias selection process, is the largest procurement sourcing arrangement in Canadian history and is expected to create thousands of highvalue jobs across the country with significant economic benefits in shipbuilding and related industries across Canada. BCSN
Prime Minister Stephen Harper.
Jonathan Whitworth, CEO, Seaspan Marine Corporation. Photo credits: BC Shipping News
Left to right: Malcolm Barker, VP & GM, Victoria Shipyards; RearAdmiral Nigel Greenwood, Commander Maritime Forces Pacifc, Royal Canadian Navy; Dennis Washington; Seaspan CEO Jonathan Whitworth.
Kyle Washington, Executive Chairman, Seaspan Marine Corporation; Senator Yonah Martin; Kaity Arsoniadis-Stein, President and Secretary-General, International Ship-Owners Association of Canada; Seaspan CEO Jonathan Whitworth.
Vija Poruks, Assistant Commissioner, CCG; Rear-Admiral Nigel Greenwood, Commander Maritime Forces Pacifc, RCN; Marcel LaRoche, Marine Manager, Western Canada, Lloyd’s Register NA.
Vancouver Shipyard workers listen to speeches from Prime Minister Harper and Seaspan CEO Jonathan Whitworth announcing the signing of the agreement-in-princple. February 2012 BC Shipping News 39
LEGAL AFFAIRS
Update on workers compensation developments By Lorna Pawluk
Associate Counsel with Bernard & Partners
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he last quarter of 2011 saw a number of important developments in workers compensation and occupational health and safety. Some developments will impact all employers in the province, while some will have particular impact on the maritime community. Regardless, all of the issues raised here will probably mean additional WCB-related costs for employers in the province. Expanded benefits for mental stress Perhaps the most important development in the latter part of 2011 is the proposed expansion of coverage for mental stress claims. These claims are made by workers suffering psychological or “mental stress” symptoms but not a physical condition or injury. Proposed amendments to the Workers Compensation Act expand the circumstances where workers can receive workers compensation benefits for such conditions. Mental stress claims have been subject to many changes in the past 10 years. Following 2002 amendments to the Workers Compensation Act, mental 40 BC Shipping News February 2012
stress claims were limited to “an acute reaction to a sudden and unexpected traumatic event arising out of and in the course of the worker’s employment”. The condition had to be a recognized mental or psychological condition identified in the most recent American Psychiatric Association’s Diagnostic and Statistical Manual of Mental Disorders and diagnosed by a physician or psychologist. Further, it could not be related to working conditions, changes in the worker’s employment or discipline or termination of employment. This approach meant no coverage for workers suffering the cumulative effect of smaller traumas, such as, for example, a slaughterhouse worker who suffered from post traumatic stress syndrome after 15 years of employment.1 Claims by emergency workers would be rejected where they had successfully weathered major work-related traumas or stress but subsequently suffered a major psychological response to a minor incident. Although a delayed response was recognized in the psychological
literature, the legislation required the reaction to be “acute”, occurring quickly after the triggering incident. Similarly, there was no coverage for chronic stress conditions such as “burn out”. In 2011, the WorkSafeBC Board of Directors changed the policy, partly as a result of a decision of the British Columbia Court of Appeal in Plesner v. BC Hydro2. That case arose from an unsuccessful claim by Mr. Plesner for post traumatic stress disorder. He had been in a training session with co-workers when he witnessed a plume of gas shooting from a ruptured pipeline at a neighbouring worksite. Over the next few weeks he developed symptoms that were subsequently diagnosed as post traumatic stress disorder. His claim was denied because his delayed reaction was not “acute” and the gas rupture was not a “sudden and unexpected event”. The court found that this interpretation discriminated Mr. Plesner on the basis of a disability and therefore breached his equality rights under the Charter of Rights and Freedoms.
1 Workers Compensation Appeal Tribunal, 2008-03822
2 2009 BCCA 188.
legal affairs These developments led WorkSafeBC to expand the interpretation of “acute” to include certain delayed reactions to “an extreme degree of stress” and reactions to an “emotionally shocking event”. The proposed legislative amendments will clarify this coverage and expand entitlement to include a reaction to “one or more traumatic events arising out of and in the course of the worker’s employment”, or “a significant work-related stressor, or a cumulative series of significant work-related stressors”. Formerly, benefits would be paid only to those workers who suffered “an acute reaction to a sudden and unexpected traumatic event”. The amendment means that the examples described above would have different outcomes: the slaughterhouse worker would qualify for benefits for the impact of accumulated stress and the emergency worker would qualify for benefits for a psychological condition following a relatively minor event, even though there had been no reaction to previous, more serious incidents.
There is little doubt that the proposed legislative amendments...will increase the benefits’ costs that must be covered by employer assessments. It is important to point out that the proposed changes to the Workers Compensation Act have no effect on how WorkSafeBC will treat claims for “mental stress” that are accompanied by a physical injury. An example of this includes the dog sled tour company employee who made a claim for post traumatic stress after he killed 100 sled dogs. His claim for emotional stress was allowed as he had sustained injuries when one of the dogs attacked him. The worker community has long complained about the restricted entitlement to compensation benefits for stress claims and whether or not the employer
community supports expanded coverage. There is little doubt that the proposed legislative amendments (if they become law) will increase the benefits’ costs that must be covered by employer assessments. Administration costs (also paid for out of the accident fund funded by employer assessments) will also increase as mental stress claims require extensive investigation and are difficult to correctly adjudicate. Law suits for families of deceased fisheries workers? The workers compensation system is the product of a historic compromise between workers and employers. Workers gave up their right to sue where they suffered a work-related injury, in exchange for the right to reduced benefits paid out on a no-fault basis. In exchange for payment into the fund that pays for worker benefits (including administrative costs of the workers compensation boards which determine worker entitlement), employers cannot be sued. This leaves employers free to manage their business affairs without the worry of looming law suits; this is seen as the major advantage to employers of the system. Although workers compensation is a provincial responsibility and there are 10 separate systems across the country, the “bar” to litigation exists in all of them. A recent decision of the Newfoundland Court of Appeal deals with circumstances that may change this. Newfoundland (Workplace Health, Safety & Compensation Commission) v. Ryan Estate resulted from the death of two fishers when their fishing vessel capsized off the Coast of Newfoundland. The families of the deceased workers received compensation benefits from the Newfoundland Workplace Health, Safety & Compensation Commission. They also sued the designer and builder of the cap-sized vessel for negligence and breach of contract, and the Attorney General of Canada for negligent stability testing of the vessel by
federal (Transport Canada) inspectors. Ordinarily, the families would be barred from suing under the applicable provincial workers compensation legislation but there is also a right to sue in negligence under federal legislation, the Maritime Liability Act. According to the Newfoundland Court of Appeal in the Ryan case, the right of the families to sue under federal law was not removed or barred by the provincial workers compensation act and an action for damages could continue in the courts. The Attorney General (on behalf of the Transport Canada inspector) and the Workers Health, Safety & Compensation Commission have sought leave to appeal to the Court of Appeal decision to the Supreme Court of Canada. As of the date this article was submitted for publication, the Supreme Court of Canada had not decided if it would hear the appeal. The Newfoundland Court of Appeal ruling in Ryan does not determine the law in other provinces. The B.C. law has been decided by a 2003 decision of our Supreme Court in Laboucane v. Brooks which barred a law suit brought by a worker who was injured by the explosion of a vessel next to where he was working. However, Ryan is an indication of how the law may change in the future, and will become particularly important if the Supreme Court of Canada decides to hear the appeal. The bar to litigation would be debated once again, and the eventual decision of the Supreme Court of Canada would be binding across the country. Even if the Supreme Court of Canada declines to hear the appeal at this time, the families of deceased maritime workers in this province remain free to bring an action in the courts under the federal legislation as did the families in the Ryan case and the court, hearing that claim, could be persuaded by the rationale in the Ryan case. This means that cautious risk management would prepare for the possibility of a law suit for a work-related injury. Steps to mitigate this risk include monitoring February 2012 BC Shipping News 41
legal affairs the case law, especially the progress of the Ryan appeal through the Supreme Court of Canada, and a review of existing insurance coverage to determine whether it would cover damages for a work-related law suit. Possible correction of incorrectly classified firms After registering for coverage with WorkSafeBC, a firm will pay premiums, or assessments, based on its assessable payroll (salary, up to a maximum of $73,700 per worker) and classification unit (a risk classification based on the firm’s industrial activities). Each classification unit is subject to a different rate and there can be significant differences between rates paid by different classifications, despite similarities in operations. For instance, Consulting Engineering (CU763010), which includes engineering services to marine operations, will pay $.22/$100 of assessable payroll whereas Marine Vessel Surveying (CU763034) will pay $.83/$100 and Structural Repair of Marine Pleasure Craft (CU764051) $3.21/$100. Where the operations could fall into more than one category or there is confusion at the registration stage about the nature of the firms operations or activities, the firm may have been placed in the wrong classification unit. As a result, the firm could pay more than it should, or less than it should, depending on the nature of the error. For many years, WorkSafeBC had the power to change earlier decisions so that it could correct errors or inequities in firm classification. This changed in 2002, however, when changes to the Workers Compensation Act limited the window for reconsideration of an earlier board decision to 75 days. Once a decision was made and 75 days had passed, WorkSafeBC was unable to change it. WorkSafeBC policy attempted to deal with this restriction in a number of ways but in 2008, a decision of the Workers Compensation Appeal Tribunal 42 BC Shipping News February 2012
(WCAT) determined that policy which permitted reconsideration beyond the 75-day period was patently unreasonable. To deal with the gap left by this decision, WorkSafeBC created the “Annual Classification Cycle” based on the idea that an employer’s classification expired at the end of the year and that WorkSafeBC would make a new classification decision. The “Annual Classification Cycle” policy was also declared illegal by the WCAT in a series of decisions issued last year and referred to the WSBC Board of Directors in September. After considering submissions from members of the employer community, the Board of Directors concluded that the old policy was invalid but that section 37(2) of the Workers Compensation Act allows WorkSafeBC to correct errors by withdrawing an employer and transferring it to another class after the 75-day reconsideration period. Policy that will allow correction of previously mis-classified firms will be introduced shortly. This means that mis-classified firms will soon have an opportunity to correct this problem and to be placed in the same classification unit as their competitors. Workers compensation or human rights? In October 2011 the Supreme Court of Canada dealt with a complaint involving a physical disability that was dealt with by the workers compensation system and then in the context of human rights. British Columbia (Workers’ Compensation Board) v. Figliola [2011] S.C.J. No. 52 began with a challenge to WorkSafeBC policy which limits workers suffering chronic pain to a functional pension of 2.5 per cent of total disability and which restricts eligibility for a loss of earnings pension. This policy was attacked by three workers suffering from chronic pain in an application before the Review Division of WorkSafeBC, the first level of appeal within the workers compensation and a tribunal “internal”
to WorkSafeBC. The Review Division upheld the 2.5 per cent disability award but instead of appealing this decision to the WCAT or seeking judicial review as would normally occur, the workers complained to the Human Rights Tribunal (HRT) that the policy discriminated against them contrary to section 8 of the Human Rights Code. The code conferred discretion on the HRT to hear previously adjudicated matters. WorkSafeBC opposed the second hearing, arguing that the HRT lacked jurisdiction to re-hear the matter or that the HRT should exercise its discretion to dismiss the complaints which had been appropriately dealt with by the Review Division. When the HRT refused the request and decided to adjudicate the human rights complaints, WorkSafeBC sought judicial review. The Supreme Court of British Columbia agreed with WorkSafeBC that the Human Rights Tribunal had failed to properly exercise its discretion. However, the British Columbia Court of Appeal agreed with the three workers and concluded that the Tribunal had exercised its discretion reasonably. The Supreme Court of Canada agreed with the workers and the first judge, finding the Tribunal’s decision to proceed was “patently unreasonable”. In reaching this conclusion, the court emphasized the importance of finality in decision-making and set out narrow parameters for relitigating an issue. It has only been three months since the decision was issued so that it is too early to predict, with certainty, what the impact will be. Nevertheless, it appears as if the courts are favouring finality so that firms may not have to defend multiple complaints in workplace and employment related matters. Lorna Pawluk is an associate counsel with the law firm Bernard & Partners and can be reached at: pawluk@bernardpartners.com.
aerial surveillance
Guardians of the Coast
Transport Canada’s National Aerial Surveillance Program (NASP). By K.Joseph Spears
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n earlier issues of this magazine, we examined Canada’s pollution prevention and response capabilities. Canada takes a risk-based management approach to ship-source pollution response and seeks to prevent marine pollution incidents. This article will examine Transport Canada’s National Aerial Surveillance Program (NASP) whose roots can be traced back 20 years to the Exxon Valdez oil spill and recommendations made in its aftermath. The NASP commenced in 1991. Prevention of ship-source marine pollution in Canadian west coast waters will be the subject of increased media and public scrutiny, especially in light of the National Energy Board hearings which will last over the next 18 months to review the Northern Gateway pipeline project (to transport Alberta oilsands bitumen to tidewater at Kitimat, British Columbia for transport by tankers to Indo-Pacific markets). While the review of marine tanker traffic is outside the NEB mandate, the marine tanker is an integral component of this proposed massive infrastructure project. Prevention of ship-source pollution has many elements. This article will focus
Photo courtesy of Transport Canada Marine Safety Directorate.
on Canada’s pioneering aerial detection of marine pollution in Canada’s ocean space.
The Brander-Smith Report made specific reference to the need for prevention and specifically included as one of its 107 recommendations...aerial surveillance... In the Public Review Panel on Tanker Safety and Spills Response Capability, commonly referred to as the BranderSmith Report, Chair David BranderSmith, Q.C., a well respected Vancouver admiralty lawyer, examined all aspects of pollution in Canadian waters. The Brander-Smith Report made specific reference to the need for prevention and specifically included as one of its 107 recommendations (of which 51 focused on specific local regional concerns raised during the public hearing processes) the following: “In order to deter polluters, the Canadian Coast Guard carry out a continuous, coordinated and intensive aerial surveillance program over all Canadian waters. This will require the deployment of three dedicated surveillance aircraft (East Coast, West Coast, Great Lakes-St.Lawrence)
equipped with the latest spill-detection and evidence-gathering technology.” The Brander-Smith Report concluded: “…if accepted and implemented, Canada will be able to solve the ship-source and chemical pollution problem in a relatively short time at a comparatively insignificant cost to industry, government and the public. With leadership and commitment from both government and industry, the frequency of marine spills can be greatly reduced and Canada’s capacity to respond effectively to them considerably enhanced.” Over 20 years has passed since the recommendation to start aerial detection was made in 1990. In 2003/04, the National Aerial Surveillance Program was transferred from the Department of Fisheries and Oceans to Transport Canada. Since assuming control of the program, Transport Canada has implemented the recommendation as stated in the report. Canada is at the forefront of a marine surveillance program that uses fixed wing aircraft and space-based assets that focus on prevention and detection of ship-source pollution. Over time, the number of marine pollution incidents in Canada has decreased and the success of Transport Canada’s NASP, February 2012 BC Shipping News 43
aerial surveillance which partners with other federal government departments, is arguably the envy of the world. It is a cost-effective use of government resources. This article will examine this highly effective program of marine pollution detection that operates on the world’s longest coastline with a particular focus on the West Coast that observes the activities of commercial vessels in Canadian waters. In the October issue of Maritime Air, my article discussed the NASP in a broader context. During fiscal year 2009-2010, 2,270 patrol were flown, with 12,000 vessels inspected by overflight. During these aerial patrols, 109 pollution incidents were detected. The elements of the NASP includes: • Enforcement of Canadian marine environmental laws; • Deterrence; • Emergency response; • Program support; • Ice reconnaissance; and • Enhancing marine domain awareness. To achieve these objectives, Transport Canada uses two dedicated Dash 8 and one Dash 7 aircraft for surveillance of vessels within waters under Canadian jurisdiction to enforce pollution prevention regulations. All of these aircraft are Canadian-built. One DHC-8 (Dash 8) aircraft is based in Moncton, N.B. and the second is based in Vancouver, B.C. During maritime pollution patrols, the aircraft’s crew normally consists of two pilots, an equipment operator, an observer, and for overnight trips or other extended deployments, a flight engineer. The Moncton-based Dash 8 is used to conduct pollution surveillance, ice reconnaissance and maritime security surveillance in the Atlantic, Quebec and Ontario Regions. The Vancouver-based Dash 8 is used for similar purposes in the Pacific Region with the exception of ice reconnaissance due to the nature of the climate. The DHC-7 (Dash 7) was first manufactured in 1986. 44 BC Shipping News February 2012
During maritime patrols, the aircraft’s crew normally consists of the same crew compliment as the Dash 8. This aircraft is based in Ottawa, Ontario and is used primarily for ice reconnaissance, and pollution and maritime surveillance patrols in the Arctic. The aircraft also serves as a contingency aircraft when maintenance is being performed on the Dash 8 aircraft. It is specifically fitted with an all-round view dome in its fuselage for visual observations.
Canada is at the forefront when it comes to aerial surveillance and the NASP is an integral part of Canada’s ocean management and stewardship of its marine resources. It has undergone an avionics update and fitting out with the MSS6000 suite of sensors manufactured by the Swedish Space Corporation. Since 2004, each of the TC surveillance aircraft have also been modified to include a suite of remote sensors which are state of the art, operator friendly and specifically designed for oil pollution detection. This suite of sensors allows the surveillance aircraft operating far out at sea — under demanding weather conditions, day and night — to track and identify polluting vessels with geographical accurate positioning. The aircraft work in concert with RADARSAT, a satellite imagery system which uses synthetic aperture radar developed by Richmond’s MDA and allows oil to be detected on the ocean surface from space. The key to the NASP is integration of the various forms of data that allow high-technology aircraft and satellite systems to detect and prosecute marine pollution in a cost-efficient way. The NASP is designed to detect and document shiprelated pollution in Canadian waters. The NASP system works well because it can provide facts and information collected in real time that can be used
in court as evidence for regulatory offences. Additionally, the data collected in real time can be forwarded to ground data centres using a system developed by EMS SATCOM that supports real time transmission of video and data. Canada is one of the first countries in the world to integrate these sensor and data systems. There is little ambiguity in the data collected — it is accurate and not subject to dispute. In other words, the evidence stands up to court scrutiny and successful prosecutions can be brought to justice. The detection and deterrent factor is an important one from an ocean management standpoint. NASP is truly big brother watching commercial marine traffic by space and aerial sensors. The sensors that make up the MSS6000 suite of sensors aboard the aircraft include: • Side-looking airborne radar (SLAR) — an all-weather radar that detects anomalies on the ocean surface in lowlight or cloudy conditions. • Ultraviolet infrared line scanner (UVIR) — used to analyze an oil slick to help prevent false positives. • Electro-optical infrared camera system (EOIR) — a camera that has the benefit of detecting vessels at long distances under cloudy conditions and can be used in prosecutions. • Automatic identification system (AIS) transponder receiver — a radio system that provides a recording of a vessel’s particular identity and voyage information. This is critical for accurate vessel identification. • A Satellite communications system that enables crews to transmit data from the aircraft to command centres in real time. • Geocoded digital camera system — these stills in video cameras are used to document pollution incidents and confirm vessel identity. The strength of this integrated surveillance system and its components that have the sensors and equipment packages, allows Transport Canada to
aerial surveillance increase its all-weather surveillance capability and can operate on a 24hour basis covering broad sections of Canadian waters. All of these systems are brought together in user consoles for ease of use by the air crews. The Dash 8 aircraft has a range of 1,300 nautical miles and an endurance of 7.5 hours. Vessels cannot hide and there is no regular pattern to patrols. This allows the aircraft to cover a swath approximately 45 nautical miles versus two nautical miles relying on visual sightings by the aircrew. Transport Canada works closely with Environment Canada through a memorandum of understanding in the surveillance of marine activities such as pollution, ice reconnaissance and marine security. Federal government departments believe that partnering benefits from multi-tasking of the aircraft which is a cost-effective way to deliver program services. This has led to the creation of the Marine Aerial Reconnaissance Team (MART) that integrates these different elements and expertise into a well-oiled team. The NASP provides an economical and operational advantage for Transport Canada and Environment Canada by providing timely, accurate and useful information from their operations. It is important to note that the surveillance data collected can be used by other federal departments that have an interest in law enforcement and
marine security to name just two uses. The data collected can have many end uses and can be streamed in real time. The goal is to make each aerial hour as productive as possible and provide real time data. In the earlier Maritime Air article, I described some of the work done by private contractors such as PAL in buttressing this federal capability on ocean management. Transport Canada augments their surveillance hours by acquiring additional patrol time from PAL each year, primarily for waters off the Coast of Newfoundland and Labrador. The NASP, combined with accurate aerial sensors greatly increases the advantages gained with space-based assets. Space assets and their onboard sensors allow a large area to be covered quickly and cost-effectively. The RADARSAT imagery is not dependent on optical images so that it is not weather dependent. Satellite imagery is provided by Environment Canada’s Integrated Satellite Tracking Pollution Program (I-STOP) to the NASP. I-STOP essentially provides an early warning system to identify potential pollution sources without running up hours on the airframe to fly out to a possible pollution incident. The satellite can make the first pass and potential incidents are identified. This allows the aircraft to be tasked to potential locations of pollution incidents. The satellite data can be used to search for anomalies which may
signify oil-like substances on the ocean surface. The NASP aircraft can be tasked to identify and examine anomalies to determine if there has been a spill, the identity of the source and to gather evidence for prosecution. The mark one eyeball of a member of the experienced MART team is an invaluable asset to analyze this in real time. Overall, this integration of data provides a cost-effective aerial response and that, coupled with the MART’s expertise and vessel intelligence, combines to ensure that this element of maritime air acts as a deterrent by discouraging illegal discharges of pollution at sea, ultimately protecting the marine environment. The system is truly world-class. Other countries with a large ocean space have followed along from the Canadian example and approach. Australia, for example, uses outside contractors in their Coastwatch program which is administered by their Customs Service. They recently concluded a 12-year contract for 10 Dash 8s to undertake coastal surveillance. Additionally, the use of aerial sensors can also be very useful for the detection of pollution and its subsequent response and recovery. Most Canadians do not know that the Moncton-based Transport Canada Dash 8 aircraft was recently used in the Gulf of Mexico during the Deep Horizon oil spill in 2010. The TC Dash 8 was the premier aircraft that was
Photos courtesy of Transport Canada Marine Safety Directorate.
The DHC-8 (Dash 8) is an integral part of Transport Canada’s National Aerial Surveillance Program.
View from above — the NASP is able to provide surveillance and data to authorities in real time. February 2012 BC Shipping News 45
aerial surveillance analysis with respect to the Northern Gateway project and the potential increase in tanker traffic on the West Coast of Canada. Canada is at the forefront when it comes to aerial surveillance and the NASP is an integral part of Canada’s ocean management and stewardship of its marine resources. In a 2007 statement by then Minister of Transport Lawrence Cannon, the efforts of the NASP are summarized: “We want to send a strong message to would-be polluters around the world that we will do whatever is necessary to protect the health of a marine environment. We are a world leader in using specialized technology to determining polluters and we are confident that our new equipment will act as a powerful deterrent to potential polluters with increased ability to track them.” It is clear that after 20 years from the Brander-Smith Report recommendations, Transport Canada has developed a world-class watchful eye over ships transitting Canadian waters through the auspices of the NASP. Aerial surveillance is widely seen internationally as the most effective method for the detection of oil spills. The presence of these aircraft on a year-round all-weather basis is a serious deterrent discouraging
illegal discharges of pollution at sea. Additionally, these air assets can be readily used in the event of a pollution or other marine incident and can stream data in real time to decision-makers. Marine information in real time, and an understanding of Canada’s marine domain awareness is critically important for making proper ocean management decisions. Accurate knowledge of what is happening on Canada’s West Coast will become increasingly important in the coming years as marine commerce increases in volume and complexity in Canadian waters. Canada remains at the forefront of Maritime Air of which Transport Canada’s NASP is an integral, cost-effective element of Canada’s ocean management and stewardship. It is, and will become, an increasingly important pillar of Canada’s risk management approach to ship-source pollution in the coming years on the West Coast. We will need more maritime air early and often.
Photos courtesy of Transport Canada Marine Safety Directorate.
utilized to provide situational awareness by monitoring the oil spill movement in the Gulf of Mexico. The aircraft, manned with Transport Canada and Environment Canada aircrews, operated from the time of the first request in April 2010 until July 15, 2010 and greatly surpassed the surveillance aircraft operated by American agencies. The Canadian aircraft was flown a total of 297 hours to assist in oil spill detection and response. It is a made-in-Canada solution that works and has been proven on the world stage in a real incident. It is a tribute to Canadian firms who developed some of the sensors and integration as well as the operational readiness of the aircrews. Let us hope that this expertise never has to be used in Canadian waters to respond to a major spill. From a risk management standpoint, detecting pollution incidents offshore far from land can result in mobilizing the proper oil pollution response and salvage capability in a timely fashion, preventing major pollution incidents which is at the forefront of thinking with respect to ports of refuge and response management should there be a pollution incident. All of this will be considered in the discussion and risk
The NASP is an effective tool in Transport Canada’s enforcement of Canadian waters. 46 BC Shipping News February 2012
Joe Spears is the Principal of the Horseshoe Bay Marine Group and has been involved in marine pollution response while employed with the Canadian Coast Guard. He worked on the M/V Kurdistan oil spill off Nova Scotia in 1979 and has been involved in remote pollution salvage incidents on the West Coast and Haidi Gwaii. Joe spoke at the Lloyd’s Salvage Seminar in London, England in 2000 on the West Coast pollution response.
workboats St Elmo: New RAmparts 3000W Class tug from Robert Allan Ltd. for Tug Malta.
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ug Malta Limited, a subsidiary of Rimorchiatori Riuniti of Genoa, Italy, took delivery of the tug St Elmo, the latest RAmparts 3000W Class tug designed by Robert Allan Ltd. The vessel was built by Astilleros Zamakona
of Spain in their Pasaia Shipyard. This RAmparts 3000W design was customized in close collaboration with the owners who had particular requirements for deck equipment, tank capacities, and accommodation arrangement.
St Elmo — the newest RAmparts 3000W Class tug from Robert Allan Ltd.
The result is a compact, highly versatile design able to take on a wide variety of duties including: ship-docking, escorting, ocean-towing, fire-fighting, and offshore support roles. The RAmparts 3000W design features a much wider beam than the standard RAmparts 3000. It has a relatively large aft working deck for a 30m tug which can accommodate six eight-byeight-foot containers. The St Elmo is configured with crew accommodations for 10. The main deck accommodates the mess/lounge, the galley, and two officer cabins with shared en-suite WC. The lower accommodation deck features two crew cabins, WC and shower, a laundry, a generous galley store, and a miscellaneous stores room. For specifications and photos, visit www.bcshippingnews.com
February 2012 BC Shipping News 47
bc ferries
Deploy, deploy, deploy...
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ith the MV Spirit of Vancouver Island in dock for refit, Senior Master Captain Keith McLaren and his crew put the down-time to good use to test the marine evacuation system. BC Shipping News was invited along for the demonstration. “Checking the safety systems is one of the maintenance procedures we undertake at least once a year,” said Captain McLaren. “As part of Transport Canada regulations, we are required to deploy at least two evacuation systems per year. Additionally, all systems are taken back to Deas Dock where they’re opened up, dried out and inspected and repaired as necessary.” The marine evacuation chutes (MEC) (from DBC Marine, now Survitec-Zodiac Group) on the SOVI are the original ones that came with the ship when it was launched in 1993. These will be upgraded similar to the newer systems found currently on the Coastal-Class ships when the SOVI goes in for its mid-life refit (scheduled between 2016-2017). Newer systems developed by various
manufacturers will be considered as replacements as they provide enhanced features and quicker deployments. There are six evacuation stations and 48 50-person life-rafts for a capacity of 2,400. In addition, there are four rigidhull inflatables (two on each side of the ship) that can be launched by a davit crane and eight 25-person flat-pack life-rafts that can also be launched by the davit to provide an easier evacuation for people who would otherwise have difficulty going down the chute. The MEC itself has “fenders” that act as a buffer, providing an additional safety measure so that as passengers slide down the MEC, they avoid hitting the side of the ship. While regular fire, boat and safety drills occur for crew (part of a regular schedule for each eight-day shift), as part of today’s safety test protocol, crew are first gathered together to run through and refresh themselves on evacuation procedures. Four crew make up one MEC party: the officerin-charge, the chute top, and first and second down. Prior to an abandon ship
call (at least seven short whistles followed by one long), crew and passengers will hear a call of “deploy, deploy, deploy”. The officer-in-charge will identify himself (or herself) and declare that he/she is in charge. He will make sure his crew is with him and will radio the bridge to advise that the MEC party is ready to deploy. Before deploying the chute, the officer-in-charge checks to make sure the water at the bottom of the ship is clear of obstacles and will then check the wires connected to the life-rafts to make sure they’re not tangled before removing the safety pins and pulling the handle which will deploy the chute. “It’s a fairly simple system,” notes Captain McLaren. “Each life-raft has a wire which is colour-coded to make it easy to know which to release first. Life-rafts can also self-launch with hydro-static releases.” Once the MEC is deployed, the officerin-charge will ready the top of the chute for evacuation and will then check the chute system to make sure everything inflated properly and is ready for use. The first and second down crew are the first to use the chute and, once at the bottom, will prepare the staging area and then start securing life-rafts, one to each side of the staging area raft. Once a liferaft is full (50 passenger capacity with this particular system), it is released and guided away from the vessel to allow for the next life-raft to be deployed and tethered to the staging raft. “Transport Canada regulations dictate that we be able to do a full evacuation within 30 minutes,” said Captain McLaren. “As you can see, the process of actually deploying the marine evacuation system takes only seconds so it’s quite an effective system.” BCSN
Once the marine evacuation chute has been deployed, life-rafts are secured to the staging area to take passengers to safety. 48 BC Shipping News February 2012
Visit www.bcshippingnews.com for a video demonstration.
bc ferries Swartz Bay berth upgrade update.
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ince May 2011, BC Ferries’ Swartz Bay terminal Berths 4 and 5 have been undergoing extensive rebuilds. Construction work included the removal and replacement of vehicle loading ramps and marine structures; new two-lane ramps with improved geometry for loading/offloading efficiency; new foot passenger walkways, new signage and a new waiting shelter and improved area lighting. Work on the rebuilds is nearing completion and both berths are expected to be fully operational by May of this year.
New bridge simulators now operational.
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ll three BC Ferries training simulators are now in operation and providing a key component of education for BC Ferries officers and crew. The Polaris ship bridge simulation systems — built by Kongsberg Maritime Simulation Inc., the same company that provided the new simulation centre at BCIT’s Marine Campus — feature 47 detailed terminals and 12 ship hydrodynamic models. The simulators — one each at Swartz Bay, Tsawwassen and Departure Bay in
Nanaimo — are used for training officers in individual technical skills, Bridge Team training as well as event re-creation curricula. Bridge simulator training is part of the Standardized Education and Assessment (SEA) program developed by BC Ferries. The program is web-based and provides a consistent training process across the company. The simulation curricula will also incorporate a best operating practices procedure for Bridge Resource Management. BCSN
Artist’s rendering of renovated berths.
Artist’s rendering of dock upgrades (northeast view).
The Shape of dventure.
A BC Ferries officer undergoes training and skills upgrade at one of BC Ferries’ new bridge simulators.
The Shape of dventure. Artist’s rendering of dock upgrades (looking west).
South end of Burrard Bridge 1905 Ogden Ave Vancouver, BC 604 257-8300 www.vanmaritime.com
February 2012 BC Shipping News 49
INDUSTRY GROWTH
Innovation drives company growth.
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ith news that AdvanTec Global Innovations, a local B.C. company, has acquired Freeman Marine, a well-known marine hatch and closure manufacturing company out of Oregon, and is now part of Advanced Marine Technologies (AMT) — a group of three well-known local marine companies — it was time to look a bit more closely at the conglomerate that seemed to come out of nowhere just over a year ago to become a global brand renown for quality and innovative manufacturing designs. AdvanTec Global Innovations focuses their business interests on two industry sectors — marine and oil and gas — with an emphasis on manufacturing and innovation. On the marine side, Diamond Sea Glaze (DSG), Manly Marine, Steelhead Marine and now Freeman Marine fall under the brand of Advanced Marine Technologies: a marketing umbrella that enables each company to offer more value to customers through process efficiencies, a wider range of products and broader access to customer service. While there is some overlap in product offerings, Freeman Marine complements the range of products already within the AMT Group and fits perfectly within AMT’s growth strategy. Freeman is a world leader in marine closures, offering a broad line of both fabricated and cast products. Freeman’s cast aluminum deck hatch product line provides more features, sizes and shapes than any other manufacturer in the world. Their custom-crafted closures can be found on a wide range of vessels including megayachts, government security boats (coast guard, military, police and fire), fish, tug and supply vessels, passenger ferries and large recreational boats. They also offer
an extensive line of precision-machined aluminum portlights and custom windows to meet the needs of marine builders around the world. Freeman Marine is an ISO 9001:2008 registered company. Diamond Sea Glaze manufactures marine windows, doors, hatches and custom glass for yacht and pleasure craft, commercial marine heavy equipment and security markets. Manly Marine supplies commercial duty, water-tight and fire-rated doors, windows and hatches which can be found on tugs, ferries and tankers, cruise ships and coast guard cutters as well as offshore oil rigs, wind towers, hydro dams and bridges. Steelhead Marine provides hydraulic yacht cranes and davits for the recreational and yacht markets. “There are enough similarities in manufacturing to allow all four companies to collaborate on process efficiencies that benefit our common client base,” says Dave Bockhold, CEO of Advanced Marine Technologies. “Freeman’s presence in
Dave Bockhold, CEO of Advanced Marine Technologies, demonstrating the capabilities of DSG’s digital printing process.
The cleaning and pre-treatment tanks used for the powder coat finish for aluminum window manufacturing. 50 BC Shipping News February 2012
INDUSTRY GROWTH Europe is a lot more established than ours, largely because of their work on megayachts and in the cast hatch market. Diamond Sea Glaze and Steelhead Marine are starting to grow into the megayacht market — for example we have completed projects on Washington Yacht Group’s Attessa lV and have worked with builders such as Westport Yachts and Richmond Yachts. The acquisition of Freeman Marine accelerates our work toward a product line that firmly entrenches us in that market.” In addition to matching DSG and Steelhead’s growth plans in the yacht market, Freeman also provides a strategic base to capture the U.S. market. Their cast foundry is known as one of the best in the world and their aluminum cast hatches are industry leaders being found on vessels worldwide. Bockhold notes, “all four of our companies work in aluminum so this now expands our product range. We can hit any market anywhere in the world and have the right package”. Tying Steelhead Marine, with their focus on cranes and davits, to the other three companies that focus on marine closures, Bockhold says “as we bring innovation to the closure market, not only is it aluminum, not only is it a shared customer base but it’s got motors and hydraulics and moving parts and controls as do the automated doors. All of that needs the engineering behind it but also the worldwide service network to support it. So to have a group of products that we can bundle, all sold to the same customer, and need service worldwide and engineered in one domain makes a lot of sense. Yes, it’s a crane but there’s a lot of tie-in.” Demonstrating the innovation side of business, Bockhold points to products such as SmartGlass — electronically controlled transition glass (going from clear through an adjustable range in tint and then to fully opaque with the turn of a knob); and printed glass that uses a ceramic printer, of which there are only
a limited number worldwide. Bockhold also notes that the functionality and design of their hatches has many other companies following their lead. All four companies run as separate manufacturing divisions with a central sales force. While synergies will be achieved in sales and providing some commonality to operating platforms,
each company retains its own management and Freeman will continue to operate from its U.S. location. Diamond Sea Glaze and Steelhead Marine share the 80,000 square-foot production facility in Langley, B.C. and Manly Marine, while its sales force has moved to the Langley location, will continue to operate on Vancouver’s North Shore. BCSN
February 2012 BC Shipping News 51
TECHNOLOGY
Stop leaks and reduce your carbon footprint! By Shane Hanna, Lubri-Lab BC
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t is often difficult to identify and act upon far-reaching and extensive changes to technology that will instantly change the course of our impact on the environment. Such is the situation when it comes to reducing the environmental impact of the marine industry on waterways and shorelines. The use of environmentally friendly lubrication, lubricating additives and specialty oils, enables the smaller marine industry, such as tugboat operators and fishing fleets, to have a similar impact as the larger shipping companies and cruise lines in an immediate and cost-effective manner. As we learned in the December BC Shipping News, marine lubricant pollution is a global problem. One of the challenges is leaking and weeping seals or the breakdown of the lubricant. Is it possible to contain the hydraulic system and better protect the seals against drying and varnish build up? As we know, hydraulic oil is, by nature, dry oil. Within a hydraulic fluid, you have an additive package which protects the oil film. The average concentration of additive in hydraulic fluid is about two per cent. With time, the additive package will begin to deplete, resulting in varnish build up in the system. Hydraulic oil will dry the seals throughout the whole system, resulting in the seals weeping and/or leaking. Due to the build-up of the varnish, it takes more energy from the electrical motor to activate the hydraulic pump and the pump itself will start to heat up. To replenish the oil, more oil is added, however new oil does not correct the problem and the leaking continues. In a recent example, using just three per cent of Multi 1 Additive package from Lubri Lab Inc., on a small double-hull tanker with a capacity of more than 88,000 USBBLS with a
The operators of this tug from Westcoast Tug and Barge estimate a fuel improvement of 9.1 per cent with the use of Lubri-Lab’s Multi 1 hydraulic package. 52 BC Shipping News February 2012
hydraulic bow thruster, it was possible to clean and recondition the seals in place. The weeping seals stopped completely. Multi 1 removed all varnish build up in the entire system. After changing the filters initially due to the cleaning effect, Multi 1 rebuilt the oil. After more than two years, with the help of oil sampling tests, the oil remains in good health with no weeping of seals. In addition, it saved 10 per cent of the energy required by the electrical motor to operate the hydraulic pump.
Bio-degradable hydraulic oil Another alternative is to go to a fully bio-degradable hydraulic oil. Although difficult in some applications to make such a massive change, this remains a viable solution for some operators. Synthetic bio-degradable hydraulic oils provide the high standards of protection required by various OEM’s and offer the same viscosities as conventional oils on the market today. Lubri-Lab’s Biotope Hydrau, offers an excellent protection against wear, maintains pump efficiency, is compatible with conventional seals, resists corrosion and easily separates itself from water and debris in the separator/filter before returning to the system. Biotope-Hydrau has better resistance than conventional oil under extreme temperature and oxidation and stays cleaner throughout operations.
Reducing wear and carbon footprint Much has been written regarding the carbon footprint we create on the environment and how this can be reduced. In place for a number of years in the land transportation industry, as of May 31, 2012 the use of Ultra Low Sulphur Diesel (ULSD) fuel will be in effect and is identified as one step in reducing the impact of emissions from diesel-burning vessels. The oncoming bio-diesels go further in the use of organic materials to provide a solution to our overall environmental impact. While effective in helping the environment, removing fuel sulphur has several unintended consequences. Many fueling systems were lubricated by the diesel fuel itself which contains trace amounts of a polar compound that provide protective lubrication. The process of sulphur removal also eliminates these compounds resulting in low sulphur diesel providing poor lubricity. Lubri-Lab’s Xtra Diesel restores these polar compounds to provide the much needed lubricity to fuel lines, injectors and engine components. Aromatic compounds can also be removed during desulphurization, which can reduce the solvency of the diesel fuel. This can be a particular problem in marine applications
technology where the distillate is mixed with residual fuel containing Asphaltenes. The less aromatic compound nature of the fuel can cause the Asphaltenes to drop out and cause clogging in the fuel and distribution systems. Xtra Diesel controls this action by stabilizing the Asphaltenes in the fuel. Xtra Diesel is used to control corrosion in the fuel system and help to separate water from fuel. ULSD has a natural tendency to absorb water. Water separation performance is important since increased uptake of water can lead to higher contamination and filtering blocking. Using Xtra Diesel allows up to 75 per cent longer life of the fuel filter.
up to three times the load factor and produce minimal bearing scar, resulting in longer life and less pitting of the bearings in equipment. And the product has a water washout of less than one per cent even in the corrosive environment of salt water. If S350 gets in the water, it does not create a sheen. A wide temperature rating of -40 to +386 Degrees Celsius makes this product versatile in the most extreme situation.
As sulphur levels dropped in diesel fuel, liner lacquering appeared to increase. Four fuel issues can contribute to liner lacquering: • High final boiling point. Heavy diesel component may burn less quickly so they penetrate toward the liner before burning • Cetane levels • Poor late stage combustion resulting in partially burnt fuel penetrating further • Poor fuel injection due to injector fouling can cause the same problem
and more effective utilization of your fuel costs.
Xtra Diesel, with a combination of cleanliness additives and combustion modifiers, can be most effective in controlling lacquer formation within the fuel tank and engine components.
...safe and clean operation...will reflect not only in operating costs but in prevention of breakdown, cleaner burning of fuel
Protecting the environment remains a key issue for all involved in the marine industry. Utilizing products that will ensure a significant reduction or elimination of leaking and increase the efficiency of operation is one piece of this complicated issue. Ensuring the safe and clean operation of your equipment under new regulations, will reflect not only in operating costs but in prevention of breakdown, cleaner burning of fuel and more effective utilization of your fuel costs. For more information about Lubri-Lab BC, please visit: www. lubrilabbc.com. To contact Shane Hanna directly, please email: shane@lubrilabbc.com.
Lubri-Lab’s Xtra Diesel provides a single multi-functional diesel additive package that will provide you with protection in the following areas: • Low temperature protection of ULSD fuels which protects against the gelling of fuel to -30 degrees Celcius • Restores lubricity in ULSD, increasing protection for the fuel pumps • Keeps engine and injectors clean, resulting in reduction of Emissions and Smoke • Extends the life of fuel filters by eliminating algae bacteria and other contaminates • Improves fuel economy a minimum of 2.86 per cent (SAE J1321 Joint TMC/SAE Fuel Consumption Test Procedure — Type II (SAE International, 1986) In a number of cases, actual results have proven significantly above the minimum guarantees and results have been very positive in relation to their operating costs. In one case, a B.C. tugboat operator, operating multiple vessels, has determined a savings of approximately nine per cent in their year-overyear fuel costs with the only significant change to their fuel management process being the addition of Xtra Diesel to their operating practices. At Lubri-Lab, one of the cornerstones of the wide range of products available is S350 All Purpose Calcium Sulphonate Grease. Standardized testing reveals that S350 will withstand February 2012 BC Shipping News 53
upcoming events Vancouver Maritime Museum... Don’t miss these exhibits! Vancouver Maritime Arbitrators Association invites you to ICMA XVIII — Vancouver 2012
The Vancouver Maritime Arbitrators Association (VMAA), is delighted to invite you to the International Congress of Maritime Arbitrators, ICMA XVIII, to be held at the Pan Pacific Hotel, Vancouver, British Columbia, May 13 to 18, 2012. The maritime industry continues to lead the world in international alternate dispute resolution through arbitration. Since 1972 ICMA has provided a forum for arbitrators, national maritime arbitration associations, marine insurers, ship owners, charterers, cargo interests and the legal community from around the world to come together to exchange views and developments. After 21 years, ICMA returns to Vancouver in 2012. The VMAA invites you to join the ICMA Forum at www. icma2012.com to post topic suggestions. Suggestions to cover a full range of issues including piracy, charter party agreements and the many facets of maritime arbitration. To register or learn more, please visit: www.icma2012.com.
This special exhibition takes visitors through the lifecycle of a Squamish canoe — from its roots in a stand of local temperate rainforest, through the hands of Squamish craftsmen, and throughout the Salish Sea.
The Shape of dventure.
ADVERTISERS ABS Americas......................................................................... 15 BC Shipping News................................................................. IFC Bernard & Partners................................................................. 21 Canadian K9............................................................................. 4
The Shape of dventure.
Chamber of Shipping of British Columbia................................. 26 CMC Electronics..................................................................... 47 Innovation Maritime................................................................. 12 International Sailors’ Society of Canada................................... 50 Mission to Seafarers................................................................. 4 Nanaimo Port Authority........................................................... 14 Peninsula Waste Water Services.............................................. 19 Provincial Aerospace Limited...................................................BC Sperry Marine/Northrop Grumman.......................................... 51 Tactical Marine Solutions Ltd..................................................... 6 Trotac Marine.......................................................................... 53
For information on these and other exhibits, events and collections, visit www.vanmaritime.com
Turmot Inc./MERUS................................................................ 38 Western Canada Marine Response Corporation........................ 30 Vancouver Maritime Museum.................................................. 49 54 BC Shipping News February 2012 VMM VanDop Ad_prd.indd 1
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