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CONTENTS
april 27, 2015
PORT OF MONTREAL
2015: Pivotal Year for Port of Montreal
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Time is right for carriers, shippers to choose Port of Montreal
Port reaches out to carriers, freight forwarders with B2B platform
Big year for port developments, projects
Termont Montréal to operate new Viau terminal
Consortium acquires Montreal Gateway Terminals
Port strategically well positioned to serve Europe, ready to capitalize on
Canada-EU free trade
Partnership with Port of Antwerp bolsters trade relationship
Diversification helps drive growth at Port of Montreal
Port ready to play integral role in Quebec’s Maritime Strategy
Sustainable development: a value anchored in port activity
Port sails into exciting cruise season
Port receives another award of excellencefor its cruise operations
Montreal to host revamped ACPA conference
Oil-by-rail: The start of the second period
Are oil train derailments a new fact of life?
Tankercars not the only problem: volatile oil now under scrutiny
Canada Post segment reports $194-million profit before tax in 2014
New CWB ship opens Seaway’s 57th navigational season
CWB Marquis the first vessel to officially pass through the Seaway in 2015
Federal government moves to privatize CWB
LCA reports Lakes ore trade off to slowest start in five years
CSL’s Paterson has modest expectations for 2015
Opinion: BC on the Move Road Map aims at improving productivity in B.C.’s
road transportation industry
Agility Fuel Systems to supply UPS with CNG fuel systems for 445 trucks
EDC: British Columbia’s ‘Secret’
Société des traversiers du Quebec receives first of three LNG-powered ferries
EDC says worlds’ second most populous nation holds significant potential for
Canadian business
Hamburg Süd most reliable line in February
Opinion: AC624: Questions arising from the March 28 landing at YHZ
CN announces $500-million capital program to upgrade Western Canada
feeder rail lines
CN locomotive engineers in Canada ratify new labour agreement
Evergreen names CN 2014 Railroad Company of the Year
Carriers can’t stop the rot: box shipping rates continue to hit new all-time lows
New study claims mega-boxships not as fuel-efficient as those delivered 25
years ago
Donning of the Top Hat marks beginning of 2015 season at Port of Hamilton
Port of Oshawa welcomes first international vessel of the season
Morterm receives season’s first salty in the port of Windsor
Fringe benefits to air freight throttle back as U.S. west coast congestion eases
Oceanex Inc. named as one of Canada’s Best Managed Companies Gold
Standard Member
FedEx and TNT Express agree to merge
MOL Liner Ltd. and MOL Asia Ltd. announce senior management personnel
changes
Eric Simard appointed to the Board of Directors of Montreal Port Authority
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4 • Canadian Sailings • March 30, 2015
R E G U L A R F E AT U R E S
38 Career Centre
58 Index of Advertisers
58 Industry Events
The contents of this publication are protected by copyright laws and may not be reproduced,
in whole or in part, without the written permission of the publisher.
sailings1061 2015-04-24 1:58 PM Page 5
A HUGE BOOST
IN CARGO TRAFFIC
WITH THE STROKE
OF A PEN
The new Canada-EU free-trade
agreement is coming soon, set to
open new markets and generate
growth on both sides of the Atlantic.
As the leading port for trade between
Northern Europe and North America’s
industrial heartland, we’re perfectly
positioned for a huge boost in cargo
traffic – and to help you profit from
the opportunities headed this way.
Find out what we can do for you at
port-montreal.com/why-montreal
sailings1061 2015-04-24 1:58 PM Page 6
PORT OF MONTREAL
2015: Pivotal Year for Port of Montreal
Time is right for carriers,
shippers to choose Port of Montreal
T
he year 2015 will be a pivotal one
for the Port of Montreal as it works
to complete and advance projects
that will maintain and improve the ﬂuidity
of goods movement for which the Port is
internationally renowned.
As part of a three-component project to
handle an increase in trafﬁc volume, the
Port will build a new container terminal,
modernize marine access and improve road
access in 2015. It will further develop its
Port+ strategy, a commitment to provide
value-added services to port users and
attract new clients. And it will move forward with plans for its next phase of
expansion at Contrecoeur and for the extensive restoration of its cruise passenger
terminal and the pier on which it is located.
“The Port of Montreal is the engine of
a major transportation logistics chain,” said
Sylvie Vachon, President and CEO of the
Montreal Port Authority (MPA). “We are a
globally diversiﬁed port, with many of the
world’s leading shipping lines providing
services to and from 140 countries. We are
extremely well positioned at the centre of an
integrated marine, rail, road and pipeline
network. We are the closest international
container port to North America’s industrial
heartland and we offer fast and efﬁcient rail
and road connections inland. We boast terminal operators whose cargo-handling
expertise is second to none. And we are
working diligently to ensure that we have
the cargo-handling capacity to meet the
needs of our clients well into the future.
“The time has never been better for
shipping lines and shippers to choose the
Port of Montreal for moving their goods
quickly, efﬁciently and safely, and at highly
competitive prices.”
“Indeed, based on research that we
have carried out, when you consider the
whole gamut of costs, Montreal continues to
be one of the most competitive ports among
all East Coast ports when it comes to
moving goods to and from North America’s
industrial heartland,” said Tony Boemi, the
MPA’s Vice-President of Growth and Development. “Moreover, we operate on a
year-round basis and continue to be a reliable, ﬂuid port, and with no major
congestion issues.
“Add in other factors such as the new
SYLVIE VACHON
Port is the engine of a major
transportation logistics chain
generation of vessels that have been
built, and the cascading of vessels onto other
trade lanes, more advantageous charter
rates, lower fuel costs and the falling Canadian dollar, and Montreal has to be seen as a
favourable port.
“Given the challenges currently facing
East and West Coast ports, I think beneﬁcial
cargo owners would be amiss if they didn’t
factor in or add the Port of Montreal to their
list as a viable option, and in the case of ship-
The Port of Montreal handled a record 30.4 million tonnes of highly diversified cargo in 2014.
6 • Canadian Sailings • April 27, 2015
ping lines a perfect time to position some of their assets to Montreal.”
The Port of Montreal handled a record 30.4 million tonnes of
cargo in 2014, an increase of 8.1 per cent over the previous year. It
enjoyed a strong year in the containerized cargo sector, handling 1.4
million TEUs (20-foot equivalent unit containers), up 4.2 per cent
over 2013. In the dry bulk sector, traffic totalled 8.4 million tonnes,
up 28.7 per cent. Liquid bulk traffic amounted to 9.2 million tonnes,
down 3.2 per cent. In the cruise sector, the Port welcomed a record
71,044 cruise passengers and crew members.
“In the context of a still-fragile economic climate on an international scale, these results were very satisfying,” Ms. Vachon said.
The MPA completed in 2014 the first phase of redevelopment
projects at the Port’s Viau and Maisonneuve sectors, adding space for
another 200,000 TEUs on port territory and increasing containerhandling capacity by 13 per cent to 1.7 million TEUs.
The Port is embarking upon a project in 2015 to further
increase container-handling capacity in the Viau sector as well as
deepen berths and improve truck traffic flow in and around the Port.
The Viau sector work will boost the Port’s total container-handling
capacity to 2.1 million TEUs.
The Port will reach its maximum handling capacity on its Island
of Montreal territory with this development, with each square metre
of the Port having been developed to its fullest. The following phase
of port expansion will be at Contrecoeur, where the MPA will continue with preparations in 2015 to develop a 1.15-million-TEU
container terminal on land that it owns there as part of its long-term
expansion plan. “All of the winning conditions, including continued
growth of the container market and positive impacts from CanadaEuropean Union Comprehensive Economic and Trade Agreement
(CETA), must be met before the terminal is developed,” Ms. Vachon
said.
Also in 2015, the MPA will pursue its Port+ strategy, a commitment by the Port to develop and provide value-added services that
allow for a diversification of activities on the Port while providing the
shipping lines that serve Montreal with additional freight volume.
“The inauguration on port territory in 2014 of the CanEst Transit
facility that cleans and containerizes agricultural products is a project
that fits perfectly within this strategy,” Ms. Vachon said.
The MPA will also work in 2015 to complete the financing
Photos: Port of Montreal
sailings1061 2015-04-24 1:58 PM Page 7
The CanEst Transit facility that cleans and containerizes
agricultural products is a project that fits perfectly within
the Port+ strategy.
structure for a project to extensively restore Alexandra Pier and the
Iberville Passenger Terminal. The project will better integrate the pier
and the terminal into the urban fabric of Old Montreal while offering
water access to one and all. Having the financing structure in place
is a pre-commencement condition.
April 27, 2015 • Canadian Sailings • 7
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8 • Canadian Sailings • April 27, 2015
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PORT OF MONTREAL
Port reaches out to carriers,
freight forwarders with B2B platform
O
ne way in which the Port of Montreal is reaching out to shipping
lines and freight forwarders is
though its new B2B (business-to-business)
platform, part of a rebranding campaign
that promotes the Port’s advantages for
‘Trading with the World.’
The B2B platform, available at
www.portdemontreal.com/why-montreal/,
makes it fast and simple for potential new
customers to learn about the Port’s distinct
advantages when it comes to moving cargo
worldwide.
“We’ve specifically targeted this platform to freight forwarders and maritime
companies so that they can immediately
find the necessary facts and contacts to do
business with us,” said Yves Gilson, Marketing Manager for the Montreal Port
Authority. “The platform enables potential
users to quickly and easily find out about
the Port and what we can specifically offer
them.”
The ‘Why Montreal’ platform initially
asks two straightforward questions:
1. Where are you located? (Africa, Asia,
Europe, Latin America, the Mediterranean or North America); and
2. What are you shipping? (Containerized
cargo or bulk products).
Based on the responses, the potential
user is presented with the Port’s distinct
advantages in terms of market reach, transit
times, handling capacity, etc. “About 80 per
cent of the advantages are common to all
users, but approximately 20 per cent differs
according to geographic location and/or the
type of cargo being transported,” Mr. Gilson
said.
The platform is progressively being
linked to an electronic banner ad campaign
within online publications that specialize in
maritime trade. “One click on the banner
takes the potential user directly to our two
key questions and subsequently to the relevant information,” Mr. Gilson said. “We also
have online links to all of our representatives
abroad, as well as our people at the Port
responsible for developing new business.”
By tracking the click through traffic
generated by the banner ads to the new
B2B platform, as well as responses to the
two key questions, the Port will be able to
determine where best to put its future outreach efforts.
‘Why Montreal’ is part of a rebranding
campaign that emphasizes the Port’s advantages in ‘Trading with the World.’ The
campaign includes targeted E-blasts, a new
Port of Montreal video as well as a series of
print ads that emphasize the Port’s perfect
location in relation to the Canada-EU free
trade agreement, its competitive position on
the trade lane with South Asia and its proximity to the U.S. Midwest market.
LEGAL ADVICE ENABLING YOU TO ARRIVE SAFELY IN PORT
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April 27, 2015 • Canadian Sailings • 9
sailings1061 2015-04-24 1:58 PM Page 10
TERMONT MONTREAL INC.
450 de Boucherville St.
Montreal, Quebec
Tel: 514-254-0526
Fax: 514-251-1952
Termont’s facility is equipped with
specialized gantry cranes and intermodal
terminal equipment with direct access to
both CN and CP rail lines. With the use of
modern equipment, computerized inventory
control with EDI capabilities, and
experienced personnel, Termont provides
its customers with increased turnaround
and efficient services.
www.termont.com
10 • Canadian Sailings • April 27, 2015
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2015: PIVOTAL YEAR FOR PORT OF MONTREAL
Big year for port developments, projects
W
ork to build and develop new container-handling capacity, improve road and marine accesses, and pursue the
restoration of a cruise terminal and the pier on which it
is located are all on the agenda for the Port of Montreal in 2015.
The Port received a huge boost to its development objectives
earlier this year when both the provincial and federal governments announced significant investments in the Port.
In March, the Government of Quebec announced investments of $75 million to improve direct road access to the Port and
$20 million toward the restoration of Alexandra Pier and the
Iberville Passenger Terminal. These announcements are part of
the provincial government’s commitment to support the marine
industry through an investment of more than $1.5 billion in the
Quebec Maritime Strategy and for its intention to promote the
implementation of logistics hubs.
In January, the Government of Canada announced an investment of up to $43.7 million in a three-component project that
will:
• Increase container-handling capacity in the Viau sector;
• Deepen vessel berths; and
• Improve truck traffic flow in and around the Port.
“This money will support our development projects intended
to ensure that our already very busy facilities can adapt to meet
projected growth,” said Sylvie Vachon, President and CEO of the
Montreal Port Authority (MPA), at a press conference held at the
Port to announce the federal government contribution. “More
specifically, this work is expected to significantly increase the
Port’s handling capacity, facilitate the accommodation of larger
vessels, and greatly improve traffic flow for the more than 2,500
trucks that pass through the Port daily.”
The federal government is making the investment through
the National Infrastructure Component of the New Building
Canada Fund.
“Enhancing the Port of Montreal’s capacity and efficiency
will encourage economic growth for businesses and residents in
the region and greatly contribute to the global competitiveness of
the nation as a whole,” said Denis Lebel, Minister of Infrastructure, Communities and Intergovernmental Affairs, and Minister of
the Economic Development Agency of Canada for the Regions of
Quebec.
The MPA and its partners will be responsible for the remaining cost of the project, the total of which is estimated at $132
million.
“This substantial financial contribution from the federal government will provide significant help in positioning the Port of
Montreal to fully profit from growth opportunities in marine
transportation in the coming years, particularly in the context of
the implementation of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA),” Ms. Vachon said.
“Optimizing our container-handling capacity and improving our
marine and road access will hugely benefit our clients and partners here and elsewhere, not to mention the Canadian economy.”
“This announcement is big news for Montreal,” said Montreal Mayor Denis Coderre. “This investment will allow the Port
to become even more competitive and further expand its global
reach.”
The Viau sector’s total handling capacity, including work previously carried out in the area, will eventually reach 600,000
Port is increasing container-handling capacity in the Viau
sector.
Logistec Stevedoring Inc. and the Montreal Port Authority
have made major investments at the multipurpose terminal
at Contrecoeur.
TEUs (20-foot equivalent unit containers), increasing the Port’s
total container-handling capacity to 2.1 million TEUs. The Viau
sector component of the project will cost $83 million. Termont
Montréal will operate the new container-handling facility. Construction is to start this summer and the terminal is expected to be
up and running in autumn 2016.
When fully operational, the new Viau terminal will generate
2,500 direct and indirect jobs, along with $340 million in economic benefits.
The MPA completed the first phase of redevelopment projects at the Viau and Maisonneuve sectors in 2014. These projects
added space for another 200,000 TEUs on port territory and
increased container-handling capacity by 13 per cent to the current 1.7 million TEUs. Transport Canada contributed $15.1
million to those projects. The total cost of the work amounted to
almost $40 million.
At the Maisonneuve sector, space to handle an additional
50,000 TEUs was developed at the site. The MPA also built a new
longshoremen’s hall and a new parking area and maintenance
workshop for equipment and vehicles used by longshoremen.
Capacity at the 16.5-hectare Viau sector site currently stands
April 27, 2015 • Canadian Sailings • 11
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PORT OF MONTREAL
at 150,000 TEUs following the redevelopment of land there. Railway tracks were relocated, energy-efficient LED lighting was
installed, and sewer and water systems and the underground electrical network were restructured in order to fully optimize
operations at the site.
The Port will reach its maximum handling capacity on its
Island of Montreal territory with the new Viau sector development. The following phase of port expansion will be on land that
the MPA owns in Contrecoeur, located some 40 kilometres east of
Montreal. The MPA already has begun preparations and will continue its planning work in 2015 to develop a 1.15-million-TEU
container terminal there. This project is part of the MPA’s longterm expansion plan.
“All of the winning conditions, including continued growth
of the container market and positive impacts from CETA, must be
met before the terminal is developed,” Ms. Vachon said.
The MPA is also hoping to move forward in 2015 with plans
to restore Alexandra Pier and the Iberville Passenger Terminal.
The project, unveiled in 2014, is subject to the completion of its
financing structure. In addition to the provincial government
announcement of $20 million, the City of Montreal has guaranteed a financial contribution of $15 million toward the project, the
entire value of which is $78 million.
At the Port’s petroleum products sector, the MPA has
restored berths at Sections 101 and 102 and carried out work at
Berths 105 and 106 following an agreement it has concluded with
Valero Energy. The MPA also extended the length of the berth at
Section 102 so that it can accommodate tankers that will transport
to Valero’s refinery in Lévis, Quebec, oil sourced in North America
and moved via pipeline to Montreal.
At Section 102 specifically, the MPA solidified the retention
structure and redid the concrete above and below the water in
order to restore the berth. The MPA extended the length of the
berth by 40 metres by installing two dolphins – fixed man-made
structures that are not connected to shore.
In other developments, Logistec Stevedoring Inc., which
operates the Port’s multipurpose terminal at Contrecoeur, has
completed three years’ worth of investments at the facility
totalling $12 million.
Logistec installed a new rail-mounted hopper and a Liebherr
crane with a capacity of 120 tonnes in lift mode and 75 tonnes in
grab mode – the largest SWL (safe working load) capacity in North
America for a rail-mounted crane. Logistec also installed new
tracks and an electrical supply and distribution system to meet the
crane and hopper’s modern designs and to make the terminal
more energy efficient.
Logistec also covered fixed conveyors that link the berth to
the Yara Canada fertilizer terminal.
The new equipment allows Logistec to move larger volumes
of bulk cargo and work with a more diversified cargo base. In addition to bulk cargo, the terminal has enhanced its ability to handle
breakbulk, project and heavy-lift cargo.
For its part, the MPA has invested $2 million in its Contrecoeur facilities over the past three years to rebuild a handling
area, renovate a gangway and reconstruct aqueducts and storm
sewers.
Logistec provides high
quality cargo-handling
services to marine and
industrial customers
through a strong network
of strategically located facilities in the Great Lakes,
the St. Lawrence River, on
the Eastern Seaboard of
North America, and in the
U.S. Gulf.
THE PLACES WE WORK
Canadian Far North or on the St. Lawrence
Whether on the Gulf Coast of Florida, the
mers with innovative solutions for
custo
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their cargo-handling needs.
www.logistec.com
12 • Canadian Sailings • April 27, 2015
sailings1061 2015-04-24 1:58 PM Page 13
2015: PIVOTAL YEAR FOR PORT OF MONTREAL
Termont Montréal to operate new Viau terminal
Termont Montréal Inc. will be the
future operator of the Viau container terminal at the Port of Montreal.
The Port of Montreal and Termont
Terminal Inc. signed a long-term lease
on March 19 under which Termont
Montréal will invest $42 million in the
initial phase of the terminal project. If
container growth continues, Termont
Montréal will invest an additional $30
million toward the project’s second
phase.
“I am very pleased by this agreement, which is synonymous with
economic growth,” said Sylvie Vachon,
President and CEO of the Montreal Port
Authority. “It shows that Termont has
great confidence in the Port of Montreal. I’m sure this project will be very
successful.”
Termont Terminal is a longstanding
partner of the Port of Montreal. It has
been operating the Maisonneuve container
terminal
since
1987.
Mediterranean Shipping Company
(MSC) will be a major partner of Termont in the Viau terminal project. “The Port of Montreal is a strategic
gateway for container shipping in North
America,” said Madeleine Paquin, Chair
of Termont Terminal, President of Termont Montréal, and President and CEO
of Logistec Corporation. “The development of this new capacity is not only
good for Termont, MSC and the Port,
but also for Montreal, Quebec and
Canada. With its intermodal networks,
Montreal is a key facilitator for international trade.
“The new Viau Terminal will provide Termont with the additional space
it needs to deliver quick turnaround
times and efficient cargo-handling services to the Port of Montreal’s current
and future customers, and thus support
MSC as it continues to grow its services
through the Port of Montreal.” “MSC’s commitment to the Canadian market along with the strategic
growth plans of customers is at the core
of all of our decisions,” said Sokat
Shaikh, Managing Director of MSC
Canada. “The continued expansion of
our Canadian services, hand in hand
with the expansion of our global network, is literally second to none. We
have learnt from our customers’ growing needs that our supply chain network
must have stability through land-based
infrastructure investments. The expansion of Termont (Viau) terminal will
further reinforce MSC’s commitment to
Canada and serve our partners in business for years to come. We are simply
proud to be a part of Canada’s future.”
Consortium acquires Montreal Gateway Terminals
A consortium led by Fiera Axium Infrastructure Inc. has
acquired a 100-per-cent ownership interest in Montreal Gateway
Terminals (MGT) from Morgan Stanley Infrastructure Partners.
The consortium comprises Fiera Axium Infrastructure Canada
II L.P., Desjardins Group, via its insurance subsidiaries and its Pension Plan, Manulife, Fonds de solidarité FTQ and Industrial Alliance.
MGT is the largest container terminal operator at the Port of
Montreal. It operates two of the Port’s three international container
terminals – Racine and Cast – and services seven global shipping
lines.
In 2014, MGT handled 800,000 TEUs (20-foot equivalent unit
containers), representing 58 per cent of all containers that moved
through the Port of Montreal.
“This investment ﬁts well within our core infrastructure strategy as Montreal Gateway Terminals represents an essential
infrastructure asset,” said Stéphane Mailhot, President and Chief
Operating Ofﬁcer of Fiera Axium Infrastructure. “Our consortium
comprises partners with a long-term investment horizon and vested
interests in the economic development of Greater Montreal, Quebec
and Canada. We look forward to partnering with the Port and other
key stakeholders to promote the Port of Montreal’s status as an international trade hub.”
Montreal Gateway Terminals operates Racine (left) and Cast container terminals.
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14 • Canadian Sailings • April 27, 2015
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2015: PIVOTAL YEAR FOR PORT OF MONTREAL
Port strategically well positioned to serve Europe,
ready to capitalize on Canada-EU free trade
Among the Port of Montreal’s numerous advantages, it is on the
shortest direct route from Europe and the Mediterranean to North
America’s industrial heartland. Ocean transit time between Montreal
and Europe is only eight days.
With its strategic location 1,600 kilometres inland, Montreal is
the closest international container port to North America’s industrial
heartland. It provides access to 40 million consumers within one
trucking day and another 70 million consumers within two rail days.
The Port has excellent highway connections to the hinterland, and
it is directly connected to transcontinental Class 1 railways Canadian
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lthough the Port of Montreal is a globally diversified port, it
has long been the main hub for trade between Europe and
North America. In fact, today Montreal handles more container traffic between Northern Europe and the U.S. Midwest than
any other port in North America.
Northern Europe is the Port of Montreal’s main market,
accounting for 44 per cent of the containerized cargo traffic moving
through the Port. “It’s a mature and stable market,” said Tony
Boemi, Vice-President of Growth and Development for the Montreal
Port Authority (MPA).
April 27, 2015 • Canadian Sailings • 15
sailings1061 4/24/15 6:18 PM Page 16
PORT OF MONTREAL
National and Canadian Pacific. Its three
international container terminals can each
handle two 300-metre container ships
simultaneously.
Numerous container services or maritime routes link Montreal to European
ports:
• The SLCS 1 (St. Lawrence Coordinated
Service 1), a joint agreement among
Hapag-Lloyd, MSC and OOCL;
• The SLCS 2 (St. Lawrence Coordinated
Service 2), an agreement between HapagLloyd and OOCL; and
• The TA-4, a service operated by Maersk
and CMA CGM.
Federal Atlantic Lakes Line and Nirint
Shipping, which handle various types of
cargo, also provide services between Montreal and Europe.
The Port of Montreal is linked to
numerous European ports including
Antwerp, Bremerhaven, Hamburg, Le
Havre, Liverpool, Rotterdam, Thamesport
and St. Petersburg.
European markets, including the
Mediterranean, already represent 39 per
cent of the total volume of traffic and close
to 65 per cent of container traffic moving
through the Port of Montreal.
On the inland side, Quebec accounts
for 35 per cent of Canadian exports moving
to Europe. These exports, in particular
those transported by container, move for
the most part through the Port of Montreal.
Additionally, more than 95 per cent of
Quebec and Ontario importers and
exporters choose the Port of Montreal to
reach European markets.
One company that uses the Port of
Montreal to import products from Europe is
Déli Prestige. The Montreal-based firm specializes in the import of fresh and frozen
foods from Belgium for wide distribution to
major grocery store chains in Canada.
Déli Prestige imports through the Port
of Montreal fresh olives every three weeks
by container from a production facility in
Southern Belgium, and it expects frequency
to increase to every week, said president
Olivier Grosman. The company also
imports salad croutons and frozen Belgian
fruit waffles.
“We use the Port of Montreal because
it is a strategic hub and the fastest gateway
into North America from Belgium,” Mr.
Grosman said. “This is important, especially
because we import fresh products, and the
Port of Montreal has the capacity to quickly
and efficiently handle our containers.”
While the Port already is reaping the
benefits of trade with Europe, the Comprehensive Economic and Trade Agreement
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2015: PIVOTAL YEAR FOR PORT OF MONTREAL
Partnership with Port of Antwerp
bolsters trade relationship
The Port of Montreal and the Port of Antwerp have a longstanding relationship. The Port of Antwerp is the Port of Montreal’s main trading partner in Europe.
More than one out of every five containers that the Port of Montreal handles comes
from or goes to the Port of Antwerp. This represents an annual bilateral container
volume of close to 300,000 TEUs.
The Montreal Port Authority (MPA) and the Antwerp Port Authority signed a
memorandum of understanding (MOU) in 2013 aimed at fostering mutually beneficial cooperation in marketing and business development to further bolster their
already substantial maritime trade relations across the Atlantic.
Within the accord, the ports have identified four areas of cooperation that will
continue to evolve:
(CETA) between Canada and the European
Union (EU) is expected to bring additional
traffic through Montreal.
“The Port, which welcomes the
world’s leading marine carriers, has many
longstanding European partners,” said
Sylvie Vachon, President and CEO of the
Montreal Port Authority. “Our business
relations are promised a bright future
thanks to the new free-trade agreement
between Canada and the European Union
that will promote trade on both sides of the
Atlantic.
“CETA is made to measure for the Port
of Montreal. We already are the leading port
on the North American East Coast for trade
between Northern Europe and North America’s industrial heartland. With our strategic
location between the world’s two largest
economic blocs – the EU and NAFTA – the
Port of Montreal is the natural gateway for
Europe.”
“Our daily existence has become
dependent on globalization,” said Sokat
Shaikh, Managing Director of MSC Canada.
“The majority of what all Canadians buy at
any retail point, along with manufacturing
within Canada, is traded with countries
worldwide. MSC’s global investments thus
far, along with future long-term investments, will continue to remain aligned with
both global and regional demands.
“MSC Canada’s investment in terminals along with independent liner services
for imports and exports to and from Canada
are ready to accommodate the organic
growth and the expected growth from the
CETA agreement. Our commitment to simplifying our customers’ trade with Europe
will continue to be our focus.”
1. Business Intelligence: exchanging market information for the purpose of sustaining the growth and development of the two ports;
2. Marketing and Commercial Development: working together in order to foster
commercial development between the two ports and to increase their visibility
within their respective markets and within emerging markets;
3. Sustainable Development/Social Responsibility: sharing best practices, lessons
learned and experiences in order to further improve measures for sustainable
development and relations with neighbouring communities; and
4. Asset Management: sharing best practices, lessons learned and experiences in
order to better manage port, rail and road infrastructures, relations with tenants
and service contracts.
The Port of Montreal and the Port of Antwerp organize a joint trade mission
once a year, alternately in Antwerp and Montreal. The next trade mission is scheduled for Antwerp in May. In January, the MPA’s Vice-President of Operations, Daniel
Dagenais, participated in a European trade mission led by Quebec Premier Philippe
Couillard that included a tour of the Port of Antwerp.
Moving forward, the ports, among other initiatives, will:
• Develop, within the scope of the Comprehensive Economic and Trade Agreement
(CETA) between Canada and the European Union, a detailed joint study on traffic
moving between North America and Europe via the two ports;
• Explore transshipment scenarios for new markets by sharing information on the
African market (Port of Antwerp) and the North American market (Port of Montreal); and
• Support all initiatives to support transport fluidity and the simplification of customs procedures between the two ports.
The Port of Montreal’s new branding strategy, ‘Trading with the World,’ is an
integral part of its strategic plan to increase its visibility on an international scale.
“The partnership with the Port of Antwerp fits in perfectly with this strategic
approach,” said MPA Marketing Manager Yves Gilson. “It allows the Port to bolster
its presence in a major market that it serves. It demonstrates the Port’s desire to
help its clients increase their business, and it supports them in their growth efforts.
And it provides the Port with opportunities to attract new customers.”
“The partnership between the Port of Montreal and the Port of Antwerp is
based on shared values and shared interests and is a win-win for either party,” said
Frank Geerkens, Port Ambassador for the Port of Antwerp.
“The agreement between our ports has been strengthening our mutual understanding and cooperation in the field of port management, business development
and marketing. Furthermore, our teams share best practices on a variety of
domains, including asset management, safety and security, and sustainability. This
has proven to be beneficial to our clients, our local labour markets and port operations in general.”
April 27, 2015 • Canadian Sailings • 17
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18 • Canadian Sailings • April 27, 2015
sailings1061 2015-04-24 1:59 PM Page 19
2015: PIVOTAL YEAR FOR PORT OF MONTREAL
Diversification helps drive growth at Port of Montreal
W
hile Northern Europe remains the Port of Montreal’s
main trading partner, new markets continue to open up
around the world for the Port.
The Mediterranean is now the point of origin or destination for
20 per cent of the containers moving through the Port. Three services link Montreal directly to Mediterranean ports: the Canada
Express 1 and the new Canada Express 2, operated by Mediterranean Shipping Company (MSC), and the Med Canada Service
(MCA), operated by Hapag-Lloyd.
Moreover, the Port of Montreal is now handling an increasing
amount of containers that originate in Southeast Asia and the Middle
East. These boxes travel aboard mega-ships via the Suez Canal to
transshipment ports in the Mediterranean or Northern Europe where
they are then reloaded onto medium-sized ships headed for North
America and bound for Montreal.
Today, Asia and the Middle East are the point of origin or ﬁnal
destination for 15 and 8 per cent, respectively, of the containers
moving through the Port of Montreal. A country such as Indonesia
now represents 7 per cent of the Port’s container trafﬁc.
“More shippers are using the Suez Canal to sail west from Asia
to avoid increasing trafﬁc and congestion at North American West
Coast ports,” said Tony Boemi, Vice-President of Growth and Development for the Montreal Port Authority.
The Port of Montreal’s trafﬁc with Asia increased by close to 1
per cent in 2014; it was the region that registered the largest trafﬁc
gain over the previous year.
The Asian market has become so important to the Port that it
now has a representative in Hong Kong, to go along with representation in the United States and Europe. Moreover, the Port has been
involved in numerous trade missions to Asia over the past several
years. Most recently, Mr. Boemi was part of a trade mission to China
led by Quebec Premier Philippe Couillard.
“We were there to promote the Port of Montreal as a reliable and
consistent port that, at the end of the day, is a viable alternative to
North American West Coast ports and their challenges,” Mr. Boemi
said.
One company that uses the Port of Montreal to move cargo from
Asia to North America is Dorel Industries Inc. Based in Montreal and
operating in 26 countries, Dorel manufactures juvenile products
including child car seats, a wide variety of bicycles, and home furniture
products. It moves hundreds of containers through the Port of Montreal annually.
“The Port of Montreal is an alternative to North American West
Coast ports for reliable and consistent transit times,” said Michael
Grier, Corporate Director of Global Logistics for Dorel. “All-water service from China via the Suez Canal into Montreal is competitive both
in terms of cost and transit time. It is a viable and efﬁcient option.
“It offers reliable access to the North American market. With two
April 27, 2015 • Canadian Sailings • 19
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ASIA-U.S. EAST COAST
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ASIA-EUROPE
52%
ASIA–EAST COAST SOUTH AMERICA
92%
ASIA-MEXICO/WEST COAST SOUTH AMERICA
INTRA ASIA
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57%
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March 16, 2015 • Canadian Sailings • 20
sailings1061 4/24/15 6:23 PM Page 21
2015: PIVOTAL YEAR FOR PORT OF MONTREAL
Class 1 railways, it is a direct gateway into
the U.S. Midwest. Montreal is a resource
that is not fully utilized in most importer
networks.
“The Port is a strong partner that
understands its customers’ needs and works
well with them.”
To the south, transshipment ports in
the Caribbean handle containerized cargo
traffic that originates in Asia and in Latin
American countries on the Pacific Ocean
and then transits the Panama Canal. On the
whole, Latin America accounts for 6 per
cent of the containerized cargo traffic
moving through the Port of Montreal. MSC
offers a direct service on this route through
its East Canada Express.
Today, 27.7 per cent of the containers
moving through the Port are transshipped.
In other regions of the world, traffic
with Africa/Oceania represents about 4 per
cent of the containerized cargo volumes
moving through the Port of Montreal.
Hapag-Lloyd and Canada States Africa Line
provide direct services on this route.
The remaining 3 per cent of containerized cargo handled at the Port of Montreal
is domestic traffic, including general cargo,
PORT OF MONTREAL CONTAINER MARKETS
moving between Montreal and St. John’s
and transported by Newfoundland-based
Oceanex.
Meanwhile, the Port’s inland container
markets have evolved. The number of containers moving to or from Quebec increased
by 7.1 per cent in 2014 compared with the
previous year. The number of containers
moving to or from the rest of Canada, and to
or from the U.S. Midwest, increased by 5.4
and 6 per cent, respectively, in 2014.
Today, about 40 per cent of the containerized goods handled at the Port move
to or from the Quebec market, followed by
Ontario at 26 per cent, and the U.S. Midwest at 17 per cent.
PORT OF MONTREAL
REPRESENTATIVES
EUROPE
Medov Shipping Agency
Giulio Schenone, Chairman
Telephone: +39-010-5490254
Email: [email protected]
Alessandro Barberis, Managing Director
Telephone: +39-010-5490260
Email: [email protected]
Website: www.medov.it
UNITED STATES
Donald Finnerty, Director, Growth and Development, USA
Telephone: 313-600-6600
Email: [email protected]
Website: www.knightglobalsolutions.com
ASIA
Jeremy Masters, Director, Growth and Development, Asia
Telephone: 852 2824 8846
Mobile: 852 6692 2798
Email: [email protected]
Website: www.shippingmastershk.com
April 27, 2015 • Canadian Sailings • 21
sailings1061 2015-04-24 1:59 PM Page 22
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2015: PIVOTAL YEAR FOR PORT OF MONTREAL
Port ready to play integral role
in Quebec’s Maritime Strategy
T
he Port of Montreal is ready to be an integral part of
Quebec’s new Maritime Strategy. “We are delighted by the
Government of Quebec’s commitment to introduce a strategy
that will energize the province’s maritime transportation sector and
we are prepared to play a central role in it,” said Sylvie Vachon, President and CEO of the Montreal Port Authority (MPA).
In its 2015-16 budget unveiled on March 26, the Government
of Quebec announced an investment of more than $1.5 billion in the
Quebec Maritime Strategy and for its intention to promote the implementation of logistics hubs. Some $95 million worth of investments
were earmarked for the Port of Montreal to improve road access to
the Port and to restore the Iberville Passenger Terminal and the pier
on which it is located.
The Port of Montreal is at the centre of an integrated marine,
rail, road and pipeline network. It handled a record 30.4 million
tonnes of highly diversified cargo in 2014. More than $41 billion
worth of goods move through the Port annually, and its activities represent $2.1 billion in added value to the Canadian economy and
create 16,000 direct and indirect jobs.
Montreal is the only container port on the Ontario-Quebec Continental Gateway and Trade Corridor, which carries more than 71 per
cent of Canada’s international trade. The Port handled 1.4 million
TEUs (20-foot equivalent unit containers) in 2014. Montreal is
Canada’s second largest container port and the fifth most important
container port on North America’s East Coast.
“All of this positions the Port of Montreal well to be an essential
component of Quebec’s Maritime Strategy,” Ms. Vachon said. “Moreover, the strategy complements the Port of Montreal’s own strategy
that has been in place for many years now to promote Montreal as an
international port that trades with the world.”
In particular, Quebec’s Maritime Strategy aims to situate Quebec
as the hub for transatlantic shipping, and seize opportunities related to
the new Comprehensive and Economic Trade Agreement (CETA)
between Canada and the European Union (EU).
“Montreal already is the leading port on the North American East
Coast for trade between Northern Europe and North America’s industrial heartland,” Ms. Vachon said. “Our strategic location between the
EU and NAFTA – the world’s two largest economic blocs – makes us
the natural gateway for Europe.”
Beyond its strength on the North Atlantic, Montreal has succeeded in increasing its cargo volumes with other regions of the
world. Today, the Port handles traffic moving through the Suez and
Panama canals thanks to direct services that shipping lines now provide between Montreal and transshipment ports in Northern Europe
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PORT OF MONTREAL
and the Mediterranean, and in the
Caribbean.
Quebec’s Maritime Strategy will look
to capitalize on opportunities related to the
enlargement of the Panama Canal locks,
slated for completion early next year. In this
regard, the Port of Montreal, through its
development projects recently completed or
now underway, will be ready to handle additional trafﬁc that moves aboard mega-ships
through the expanded canal and is then
transshipped in the Caribbean aboard
medium-sized vessels for onward movement
to Montreal.
Quebec’s Maritime Strategy calls for
the development of the Montreal region as
one of the major North American hubs for
trade logistics in goods handling. The Port of
Montreal was a driving force behind the creation of CargoM, the Logistics and
Transportation Metropolitan Cluster of
Montreal. CargoM will launch developmental projects that promote Montreal as a
logistics and freight transportation hub and
introduce best practices and leading-edge
technologies. The Port of Montreal is pleased that
Quebec’s Maritime Strategy calls for the
development of the access road between
24 • Canadian Sailings • April 27, 2015
Highway 25 and the Port that will allow
trucks to directly reach the Port’s common
truck entry portal and provide trucks leaving
the Port with direct access to the highway
network. The Government of Quebec
announced in its March 26 budget an
investment of $75 million to improve direct
road access to the Port.
“For a port, the ﬂow of transportation is
a measure of efﬁciency and competitiveness.
That makes optimizing road access missioncritical,” Ms. Vachon said. “In this budget,
the government is providing investments
that will make it possible for trucks to exit
more efﬁciently to the highway network and
decongest the local road network. Besides,
any logistics activity that requires shipping
lines to come to the Port to pick up or
deliver containers is a win for us.”
The Maritime Strategy also calls for the
continued development and promotion of
international cruises on the St. Lawrence
River, an industry that already contributes
some $14 million annually to the local economy. Thanks in great part to the efforts of
the Montreal Cruise Committee to attract
more cruise enthusiasts to Montreal, the
Port welcomed a record 71,044 passengers
and crew members in 2014.
The Government of Quebec announced
the provision of $20 million in its 2015-16
budget to restore the Port’s Alexandra Pier
and the Iberville Passenger Terminal.
“This is an important milestone in carrying out this project for the future of
Montreal and the Quebec tourism industry,” Ms. Vachon said. “Having a new
passenger terminal bolsters the development of the tourism industry and promotes
major economic beneﬁts and impacts for
Montreal and the various levels of government, while giving citizens quality access to
the river and creating an emblematic gateway worthy of Montreal.”
In addition to the Quebec government
investment, the City of Montreal committed
to a $15-million contribution toward the
project when it ﬁled its three-year capital
works program for 2015-17.
The MPA will continue to work on the
project’s ﬁnancing structure, a pre-commencement condition.
“The Port of Montreal has all of the elements in place to play a pivotal role in
Quebec’s Maritime Strategy,” Ms. Vachon
said. “We look forward to working with the
Government of Quebec to further
strengthen this vital sector of the economy.”
sailings1061 2015-04-24 1:59 PM Page 25
2015: PIVOTAL YEAR FOR PORT OF MONTREAL
Sustainable development:
a value anchored in port activity
S
ustainable development is a value
inherent to the mission of the Montreal Port Authority (MPA). It rises
above and beyond the MPA’s obligation to
conform to various environmental laws and
by-laws and reﬂects its commitment to integrating economic, environmental and social
policies into port activities.
“At the Port of Montreal, we are committed to fulﬁl our role as a responsible
corporate citizen,” said Sophie Roux, the
MPA’s Vice-President of Public Affairs.
“Ensuring responsible management, increasing contributions to the local community,
promoting responsible communication,
engaging our stakeholders and reducing our
environmental footprint are among the
guiding principles of our Sustainable Development Policy.
“Social responsibility is a big mandate
that I inherited when I joined the MPA
almost two years ago.”
Hosting open houses to present major
development projects to the general public,
adopting a new Community Investment
Policy, supporting community-anchored initiatives that beneﬁt youth and families, and
new environmental initiatives are just some
of the ways in which the Port of Montreal is
fulﬁlling its role as a good corporate citizen.
Responsible communication
The Port continues to strengthen its presence and ties with its neighbouring communities and foster a spirit of communication,
openness and transparency with the public.
Most recently, it reached out to the
public regarding two large-scale development
projects: the extensive restoration of Alexandra Pier and the Iberville Passenger Terminal
in the Old Port area, and the project to
develop a container terminal on land that the
MPA owns in Contrecoeur.
As part of a public consultation phase,
the Port held open houses in December to
present the projects to residents, listen to
their comments, gather their input and
answer their questions. MPA ofﬁcials presented the Alexandra
Pier and Iberville Passenger Terminal project
at open houses that were held over a threeday period. About 100 people met at the site
of the current passenger terminal for the
public information and exchange process.
The Alexandra Pier/Iberville Passenger
Terminal project is valued at $78 million. The
MPA is working to complete its ﬁnancing
structure, a pre-commencement condition.
The MPA also held an open house on its
project to develop a container terminal at
Contrecoeur. More than 200 inhabitants from
the nearby municipalities of Contrecoeur and
Verchères accepted the Port’s invitation to
attend this information session. MPA ofﬁcials
answered questions about environmental
issues, truck and train trafﬁc, and job creation
for the region. The project would create some
470 jobs per year during construction and up
to 1,000 jobs once the terminal is in operation.
Among the well-known municipal politicians in the open house crowd was
Contrecoeur Mayor Suzanne Dansereau.
“This information meeting was a very good
example of consultation with local area resi-
April 27, 2015 • Canadian Sailings • 25
sailings1061 2015-04-24 1:59 PM Page 26
PORT OF MONTREAL
important to them that it be carried out.”
In both cases, the open houses followed meetings with political,
social, transportation and environmental stakeholders to discuss the
projects. For the MPA, this ongoing pre-consultation and information
process is an essential condition to the success of the projects and the
attainment of beneﬁts for the community at large.
Community Investment Policy
The Port continues to support initiatives that contribute to the
well-being of its neighbouring communities.
The MPA has redeﬁned its Community Investment Policy in order
to align it with its new Strategic Plan, all within the realm of responsible leadership. The policy also strengthens community investment
eligibility requirements and the evaluation process for initiatives, and
better deﬁnes the sectors that the MPA supports.
The policy promotes:
Within the scope of its Community Investment Policy, the
Port of Montreal is a proud partner in several projects
including Vélopousse.
dents,” Ms. Dansereau said. “The Montreal Port Authority is concerned about the population of Contrecoeur and listens to their
opinion. Citizens were free to talk and ask questions, and received in
return all of the pertinent information about the Port of Montreal
expansion project.
“Without a doubt, this is a much-anticipated project for the
people of our region. Many Contrecoeur citizens attended this consultation process, showing their interest in this project and why it is
26 • Canadian Sailings • April 27, 2015
• Socioeconomic development (creating jobs, enhancing employability,
promoting student retention, entrepreneurship, addressing the root
causes of poverty);
• Training related to marine careers (projects raising awareness of
marine and port careers, training programs, labour market integration
initiatives for skilled labour); and
• A healthy environment (awareness, protection, restoration and/or
beautiﬁcation of natural environments for its city and its communities).
The MPA gives special consideration to candidates that demonstrate the potential to have an impact in at least one of these three
sectors. “We wanted to establish a systematic decision-making process for
sailings1061 2015-04-24 1:59 PM Page 27
2015: PIVOTAL YEAR FOR PORT OF MONTREAL
initiatives to support,” Ms. Roux said. “It was very important that we
bring our new Community Investment Policy in line with our Strategic
Plan.
“Strengthening community relations is at the heart of the MPA’s
mandate. Reinvesting in communities that are adjacent to our operations is a key tenant of our community relations focus.”
Within the scope of its Community Investment Policy, the Port of
Montreal is a proud partner in three projects that provide assistance to
young people in the Mercier—Hochelaga-Maisonneuve borough:
• ÉcoMaris: a not-for-proﬁt organization that creates learning experiences through team sailboat training and environmental discovery.
The Port has provided grants for young people to take a one-week
course on the Roter Sand, the ﬁrst sail training vessel in Quebec dedicated to the environment.
• Samajam: a program that helps young people develop their selfesteem, their sense of belonging to their school and community, and
their love of learning. Its tool is music. Students participate in weekly
percussion, dance, singing and instrument-playing sessions that culminate in a big show at the end of the year.
• Vélopousse: a collaborative pedicab project initiated by a community
youth employment centre. The project provides local young adults
with jobs as cycling tour guides. The Port has provided a sponsorship
toward the construction of booths and training for the guides about
the history of the Port.
Among the MPA’s other community initiatives are the annual Port
in the City Day, where the Port Authority invites the public aboard a
free one-hour cruise to discover port facilities; hosting groups and transportation and logistics students for visits and presentations; publication
of the electronic community magazine Logbook; the addition of a special section on the Port website for Neighbours and Friends of the Port;
and support for various fundraising programs.
The MPA has replaced wooden railway ties with steel railway
ties in the strategic area of its railway interchange zone. These steel
ties are more durable, ecological and economical than wooden ties.
They are also stronger and do not shift, thereby reducing the risk
of derailments.
The Port has also been installing and testing crossties made of a
composite material consisting of plastic bottles and recycled tires. It is
currently studying how they react to the Quebec climate and, in particular, its rough winters.
If results continue to be satisfactory, these new composite
crossties will gradually replace the old wooden ties, as they need to
be replaced.
A composite tie is estimated to last 40 years, compared to about
a decade for a wooden tie. The new crosstie is 100 per cent recyclable
at the end of its life cycle.
As part of restoration work in the petroleum products zone, the
MPA used a special technique to install two dolphins in order to
lengthen by 40 metres the berth at Section 102 so that it can accommodate larger tankers. A dolphin is a ﬁxed man-made structure that
is not connected to shore. It typically consists of a number of piles that
are anchored into the seabed and joined above the water to create a
single structure.
For this project, the MPA sank the piles to the riverbed and then
used a drilling technique that is quieter than the traditional technique
that drives the piles into the riverbed with a heavy weight. The Port
monitored noise levels during the construction period. However,
because it drilled the piles into place rather than drive them down,
there was no disturbing noise for nearby residents or aquatic life. Environmental footprint
The Port has taken numerous initiatives to reduce its environmental footprint. In fact, the Port of Montreal recorded in 2014 the best
results among Quebec ports and the third-best results among North
American ports that participate in the Green Marine environmental
program.
As part of the ﬁrst phase of the redevelopment of the Viau sector
into a container-handling site, a highly innovative soil recovery and
reuse project that employed a soil encapsulation technique allowed the
MPA to reuse 44,000 tonnes of poor soil that had been extracted at the
site. The extracted soil was mixed with cement to increase solidity and
then re-deposited at the bottom of excavated areas.
The Association québécoise du transport (Quebec Transport Association) awarded a Grand Prize for Excellence in Transportation,
Environment Category, to engineering ﬁrm SNC-Lavalin, which partnered with the MPA on the soil reinforcement project. Moreover, Claude Beaubien, Chief Engineer in the Port’s Infrastructure Management Department, won the Award of Merit from the
Cement Association of Canada for the soil encapsulation technique.
The Port of Montreal began using an electronic management
system in 2014 that measures truck ﬂuidity on port territory at
approaches to marine terminals. The Port’s target is to reduce by 10 per
cent the amount of greenhouse gas emissions from trucks within the
next ﬁve years.
The Port continued its hybrid vehicle acquisition program and
installed speed regulators on its vehicles in 2014. Through this program, it has registered a 33-per-cent reduction in GHGs compared with
2007.
To compensate for GHG emissions, the Port of Montreal adopted
a tree-planting program at the end of 2014. Its objective is to plant 150
trees per year.
April 27, 2015 • Canadian Sailings • 27
sailings1061 2015-04-24 1:59 PM Page 28
PORT OF MONTREAL
Port sails into exciting cruise season
T
he Port of Montreal is about to sail
into an exciting cruise season that
promises a record number of passengers and new cruise lines and ships, and
hopes for a new cruise terminal.
The Montreal Port Authority (MPA)
has unveiled a plan for the extensive
restoration of its Iberville Passenger Terminal and Alexandra Pier on which it is
located. The project will breathe new life
into the reception facilities that greet
cruise passengers who sail into Montreal,
providing a welcome that is on par with
the city’s international reputation.
The project will include a world-class
passenger terminal, a green roof and other
open spaces accessible to the public, an
interactive port interpretation centre, a
redesigned parking area, a lowered pier
facilitating water access, and an observation tower that will become an attractive
element for cruise development.
“The future Alexandra Pier will be an
exceptionally welcoming site that will
allow people to feel a sense of pride in
their Port,” said Sylvie Vachon, the MPA’s
President and CEO. “Our objective is to
give Montrealers and visitors a new terminal in 2017 to coincide with the City of
Montreal’s 375th anniversary.”
The restoration project is valued at
$78 million. The MPA is working to complete its financing structure, a
pre-commencement condition.
The City of Montreal has indicated its
support for the project in the form of a
$15-million contribution announced in its
three-year capital works program for
2015-17. The Government of Quebec
announced the provision of $20 million
toward the project in its 2015-16 budget
as part of its Quebec Maritime Strategy.
Alexandra Pier was built in 1901,
and Iberville Passenger Terminal was inaugurated for the Montreal Universal and
International Exposition of 1967, or Expo
67.
Montreal is becoming more and more
popular with cruise lines and travellers.
The Port enjoyed a record year in this
sector in 2014, welcoming 71,044 passengers and crew members, up 1.5 per cent
over the previous season.
“The Port of Montreal is riding high
on the cruise business,” said Tony Boemi,
the MPA’s Vice-President of Growth and
Development and President of the Cruise
the Saint Lawrence Association.
He said that the cruise business continues to grow in Montreal thanks in great
part to the efforts of the Montreal Cruise
Committee. Supported by Tourism
Quebec, the committee is an initiative in
which the MPA and Tourism Montreal
have teamed up with the City of Montreal
and five local organizations – Aéroports de
Montréal (Montreal airports), the Hotel
Association of Greater Montreal, Montreal
Casino, the Old Montreal Business Development Corporation and the Old Port of
The Port of Montreal welcomed a record 71,044 passengers and crew members
in 2014.
28 • Canadian Sailings • April 27, 2015
Montreal – to promote Montreal as a
cruise destination of choice.
Among the projects the committee
has undertaken is the creation of a
microsite – www.cruisesalamontreal.com
– dedicated to providing key information
about Montreal and its port to the cruise
and travel trade industries.
Meanwhile, the Port’s Genoa, Italybased representative, Medov shipping
agency, is working to promote throughout
Europe the Port of Montreal as a cruise
destination.
The 2015 cruise season, which starts
May 7 and ends October 29, should set
new records, with more than 90,000 passengers and crew members expected to
visit Montreal.
U.S.-based Haimark Line, renowned
for premium service and distinctive rivercruise itineraries, has chosen Montreal as
a home port for the newly refurbished
210-passenger cruise ship MS Saint-Laurent for the entire 2015 season.
Haimark Line plans a total of eight
cruises between Montreal and Portland,
Maine, and between Montreal and
Chicago, aboard the Saint-Laurent.
Haimark will feature expert lecturers
aboard the majority of its cruises throughout the season. Award-winning broadcast
journalist and former CBS News anchor
Dan Rather will be a speaker on the inaugural voyage from Montreal on May 30.
Haimark will also offer a MontrealNiagara-Quebec-Montreal itinerary during
the season.
Thomas Markwell, Managing Partner,
Sales and Marketing, for Haimark, Ltd.,
said there is renewed interest among
North American cruise enthusiasts to
travel closer to home. “We have found
that the Province of Quebec and the City
of Montreal are really undervalued as a
cruise destination,” he said. “With its culture and character, Montreal and Quebec
are wonderful destinations. With Montreal
serving as a home port, it will give our
clientele a flavour of the city.”
The Saint-Laurent is expected to
bring nearly 7,000 more passengers to
Montreal this season.
This year is also the 50th anniversary
of the Marco Polo cruise ship, which will
visit Montreal on August 13-14 and September 24-25. Marco Polo began life in
1965
as
Baltic
Steamship
Company’s Alexandr Pushkin, named after
the Russian poet.
sailings1061 2015-04-24 1:59 PM Page 29
2015: PIVOTAL YEAR FOR PORT OF MONTREAL
Port receives another award
of excellence
for its cruise operations
The Montreal Port Authority has unveiled a plan for the
extensive restoration of its passenger terminal and the pier
on which it is located.
The ship was sold to Orient Lines in 1991 and renamed
Marco Polo. Norwegian Cruise Lines acquired Orient Lines in
2002. Six years later, Greek company Global Maritime bought the
ship. Cruise & Maritime Voyages took over the U.K. operations of
Marco Polo in 2010.
Departing from London, the Golden Anniversary voyages to
Montreal will retrace Marco Polo’s transatlantic service as
Alexandr Pushkin.
This will also be the last year that Holland America Line’s MS
Maasdam will sail to Montreal. After 10 seasons on the
Canada/New England route, the MS Veendam will replace it in
2016.
The Port of Montreal’s cruise operations have been recognized yet again by Cruise Insight magazine. The Port received
the Best Turnaround Destination award during the Seatrade
Cruise Shipping international convention and trade show held in
Miami in March.
The award recognizes cruise destinations around the world
that offer a superior welcome to disembarking and boarding passengers.
This is the fourth time that the Port of Montreal has won
the award (2010, 2011, 2012 and 2015) and the 11th recognition that the magazine has bestowed upon the Port since 2008.
It received the Most Efficient Port Services award in 2013, Most
Responsive Port in 2012, Most Efficient Terminal Operator in
2011 and 2012, and Best Turnaround Port Operations in 2008,
2009 and 2011.
“This award conﬁrms Montreal’s importance as a destination of choice for cruise passengers while drawing attention to
the efforts of our personnel and our Montreal Cruise Committee
partners, who are the keys to success in the steady expansion of
the cruise market,” said Sylvie Vachon, President and CEO of the
Montreal Port Authority.
April 27, 2015 • Canadian Sailings • 29
sailings1061 2015-04-24 1:59 PM Page 30
PORT OF MONTREAL
Montreal to host revamped ACPA conference
T
he Port of Montreal will be hosting the 2015 Association
of Canadian Port Authorities (ACPA) Conference and
Annual General Meeting from September 29 to October 1.
‘Pushing the Limits’ is the theme of this year’s event, to be held
at the Westin Hotel in Old Montreal.
The revamped conference is taking place one month later
than usual and within a shorter time frame to make it more convenient and affordable for organizers and delegates.
“We’re working hard to make the most of the three days with
an intent focus on the up-and-coming business aspects that port
authorities must embrace to make the most of future opportunities,” said Sophie Roux, Vice-President of Public Affairs for the
Montreal Port Authority (MPA). “Innovation, technology, emerging markets, social partnerships and learning from other industries
are some of the topics that will be addressed.”
As part off the efforts to ‘push the limits’ and ‘think outside
of the box,’ Canadian astronaut Julie Payette will host a special
networking reception on September 30 between 5:30 and 7 p.m.
at the Montreal Science Centre, where she now serves as CEO.
“It’s a great locale to spark innovative thinking,” Ms. Roux said.
“The centre is a former port warehouse that has been transformed
into a valued community asset.”
Éric Fournier, Partner and Executive Producer of Moment
Factory, a new media and entertainment studio whose clients
include Cirque du Soleil and Los Angeles International Airport,
will address conference delegates on September 29.
Conference attendees will also have the opportunity to visit
the Port of Montreal on October 1.
“We’re excited to show our colleagues the significant investments we’ve made in new infrastructure, as well as the steps
we’re taking to increase efficiencies, introduce value-added services, improve sustainability, attract emerging markets, and
accommodate larger vessels,” said Sylvie Vachon, the MPA’s President and CEO and Past Chair of ACPA.
30 • Canadian Sailings • April 27, 2015
Canadian astronaut Julie Payette will host a special
networking reception at the Montreal Science Centre on
September 30.
The ACPA conference will also include a trade show on September 29 and 30.
Further information is available at http://acpa2015.ca/
sailings1061 2015-04-24 1:59 PM Page 31
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sailings1061 2015-04-24 1:59 PM Page 32
Oil-by-rail: The start of the second period
BY DARRYL ANDERSON AND K. JOSEPH SPEARS
n February 20, Bill C-52, the Safe and Accountable Rail Act
was introduced into Parliament. The proposed legislation
offers amendments to both The Canada Transportation Act
and the Rail Safety Act. In summary, Bill C-52 sets out new minimum insurance requirements, introduces new levies for crude oil
shippers, and provides for enhanced oversight and information sharing. This article provides an overview of the stated policy of the
government of Canada with respect to transport safety management
of which oil-by-rail is but one important subset of the movement of
dangerous goods.
Bill C-52 in the amendments to the Rail Safety Act will permit
rail safety inspectors to take a more proactive approach with
respect to rail safety, with increased powers. For example, section
25 of Bill C-52 amends section 31 of the Rail Safety Act. Section
31 is now proposed to be amended to read:
31(1) If the rail safety inspector is of the opinion that a
person’s conduct or any thing for which a person is responsible
constitutes a threat to the safety or security of railway operations,
the inspector shall inform, by notice sent to the person and to any
company whose rail operations are affected by the threat, the
person and the company of that opinion and of the reason for it.
(2) If the rail safety inspector is satisfied that the threat is
immediate, the inspector may, in the notice to the person or any
company whose rail operation are affected by the threat, take
measures that are specified in the notice to mitigate the threat until
it is been removed to the inspector’s satisfaction.
These provisions give more regulatory authority to Transport
Photo: Wikipedia
O
Canada rail safety inspectors then previously existed, and can be
applied in the prevention and protection phase of risk management
to avert incidents, for example limiting rail speed.
Similar type provisions are long-standing in the Canada Shipping Act 2001 and its predecessor that allowed a Marine safety
inspector appointed under the authority of Parliament to detain
any ship it felt was unsafe, and can be traced back to the 19th century and the UK’s Merchant Shipping Acts. It did not require the
Minister of Transport’s or executive level approval. Rather, the
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power could be exercised solely in the
opinion of the inspector. This is a very
powerful tool in the regulatory toolbox.
Including such provisions in Bill C-52
seems to indicate that the regulatory
agency, Transport Canada, does not
believe that the current rail safety management system is as effective as it should be,
and requires greater powers to take proactive preventative measures.
The 2007 Transport Canada policy
document Moving Forward -Changing the
Safety and Security Culture - A Strategic
Direction for Safety and Security Management provides the underlying governance
philosophy that is being further refined
with Bill C-52. It is based on the regulator
working in partnership to apply risk management strategies. This approach to risk
management is based on a system of prevention, protection and response. The goal
is to prevent accidents from happening by
concentrating on the prevention side to
addresses various factors such as rail bed
maintenance, training, fatigue, and train
speed. This risk approach seeks to minimize low probability, high consequence
events that can have disastrous impacts on
communities as we have seen in Lac Megnatic, and in the three recent derailments
in Northern Ontario.
If Moving Forward represented the
first period in the new era of our transport
risk hockey game, surely Bill C-52 marks
the start of the second period in the rail
league.
The Canadian Transportation Safety
Board (TSB) will be seeing a lot of ice time
in this second period since it is investigating the three most recent rail incidents.
Statisticians and commentators on the
transport of dangerous goods will know
that the TSB findings will be critical in
determining how a safety management
system across the rail sector must evolve.
Yet, we suggest that this is only one of the
players that need to be in the game and see
more ice time. In addition, the federal government, the railways, and local
communities need to be part of the starting
line-up. However, the Minister of Transport has stated publicly that she is awaiting
the TSB report before further commenting.
Contemporary safety management
best practices seek to integrate corporate
regulatory risk management and stakeholder perspectives and concerns in
establishing performance objectives and
progress indicators. Currently, a more flexible risk management approach is used that
focuses on outcomes rather than the more
prescriptive style of rules and processdriven regulations that characterized
earlier periods of transport safety management. It was thought that this less
prescriptive approach would encourage
early adoption of new technologies, and
that best practices would be brought to
bear to minimize transportation risk. Standards could be developed working in
conjunction with the private sector and
the regulator.
However, perhaps regulators have
been late to realize that at a local community level the only thing that matters is the
safe passage of trains rolling through communities. Given the importance of
Canada’s multimodal transport system, we
need to look at the regulation of all transportation sectors and, in particular, the
railways, which is the subject matter of
this article, across federal, provincial and
municipal boundaries and jurisdictions.
As the second period unfolds, have
we begun to realize that environmental,
safety and economic regulations are interconnected, and must be examined under
the lens of safety management, which is
simply a form of both governance and corporate risk management. The key is to
create a nimble regulatory regime that
encourages economic activity but at the
same time minimizes risk. There has been
very little analysis done between these
linkages.
Under the leadership of former federal Minister of Industry and Trade, David
Emerson, The Minister of Transport has set
up a Review Panel under the Canada
April 27, 2015 • Canadian Sailings • 33
sailings1061 2015-04-24 1:59 PM Page 34
Transportation Act to provide guidance on possible steps to help
ensure that the national transportation system has the capacity and
nimbleness to support economic activity across all sectors over the
medium and long-term. From the safety standpoint, it will specifically cover how safety and well–being concerns related to rail
transportation through communities can be addressed.
The fact that Bill C- 52 has been tabled in Parliament before
that Review Panel has issued its report highlights the sensitivity
around the safe transport of oil products which has not lost sight of
the context in which the transport of dangerous goods game is
being played: the amount of oil-by-rail traffic has jumped significantly in Canada and the United States because of the lack of
pipeline capacity.
David Emerson wrote in the February 2011 issue of Policy
Options an article entitled “Why Canada needs an Energy Strategy”, in which he stated that “Canada has spent billions on the
Asia – Pacific gateway corridors initiative, but its failure to include
21st century oil and gas transportation and logistics capacity is a
glaring gap that will seriously constrain the economy over time.”
Mr. Emerson went on to argue that Canada should commit to a
high standard of resource stewardship with environmental performance standards across water, land and ecosystems. Whether
his remarks provide any glimpse into where the Review Panel may
be headed remains to be seen as this second period unfolds.
The Lac Megantic derailment has been described as a low
probability, high consequence incident or “Black Swan” event. A
black swan event is a metaphor that describes an event that is a
surprise (to the observer), and which has a major impact. While
the amendments contained in Bill C-52 are a good regulatory first
step, all aspects of rail safety need to be examined, including the
economic components of rail transportation. Under Bill C-52 a
regime is being created where the shippers are paying a levy for
increased insurance, along with increased freight rates. This simply
addresses the issue with respect to the response component of risk
management. It does not address in any way the prevention and
protection phase of risk management.
Lac Megantic was a wake-up call for action to ensure our
transportations system is both nimble and safe. This will be especially challenging in a declining price environment for oil, coupled
with lack of access to pipeline capacity. The Canada Transportation Act review is an integral part of reviewing this issue. Rail
safety is an integral part of our transportation strategy. It is not an
add-on.
Hockey is Canada’s national game. Hockey and Canada’s railways are intertwined with our Canadian identity. Railways were
the strands of steel that bound Canada together in the 19th century
and they are critically important in the globalized 21st century for
a variety of reasons. For one, they are one of the most environmentally efficient way of moving goods on land with a low carbon
footprint.
If we use the hockey analogy as a lens, issues dealing with
both safety regulation and liability and compensation arising from
the movement of oil-by-rail are really the start of the second period
of the game. The period has just got underway and there is lots
more action to come.
K. Joseph Spears of the Horseshoe Bay Marine Group has
acted as legal counsel for Canadian National. Joe assisted Transport
Canada in developing and delivering a National Marine investigation course for a decade. He has been examining and researching
risk management best practices from a public and private standpoint since 1984. He can be reached at [email protected]
Darryl Anderson is a strategy, trade development, logistics
and multi-modal transportation consultant. His blog Shipper matters focuses exclusively on transportation and trade related policy
issues. (http://wavepointconsulting.ca/shipping-matters). He
can be reached at [email protected]
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34 • Canadian Sailings • April 27, 2015
sailings1061 2015-04-24 1:59 PM Page 35
Are oil train derailments a new fact of life?
BY R. BRUCE STRIEGLER
CN derailment near the small Ontario town of Gogama
on March 7, 2015 was the second in three days in
Canada and the fifth in three weeks in North America.
Thirty to forty tankcars loaded with crude oil came off CN’s
mainline tracks, at least five caught fire, and others tumbled into
the Mattagami River. The train was 6,089 feet long and weighed
14,355 tonnes. On February 14, a CN derailment occurred in
the same area south of Timmins, when 29 cars loaded with
crude oil and petroleum distillates derailed and caused a fire. A
BNSF Railway train loaded with crude oil derailed and caught
fire two days earlier in a rural area south of Galena, Illinois. In
that accident, 21 of the train’s 105 cars derailed near where the
Galena River meets the Mississippi. BNSF said the resulting fire
spread to five railcars. Local reports indicated that firefighters
could only access the derailment site by a bike path.
Last month, a CP Rail freight train derailment in nearby
Dubuque, Iowa, spilled ethanol fuel into the water and set three
cars on fire. Dubuque, which is 14 miles to the northwest of
Galena, has almost 60,000 inhabitants. On February 16, a CSX
train carrying three million gallons of North Dakota crude
derailed in a West Virginia snowstorm, shot fireballs into the sky,
destroyed a house and leaked oil into a Kanawha River tributary.
The derailment and fires forced nearby water treatment plants to
temporarily shut down, and caused hundreds of families to evacuate. Twenty-seven of the 107 tankcars derailed, and 19 of those
were involved in the fires, which smoldered for days after.
Kenneth Green, Senior Director of Resource Studies at the
Fraser Institute says, “We clearly need to find out why these
trains have derailed, and one of the questions goes to the commonalities between the accidents. What common factors may be
behind these derailments? I don’t think we know enough about
that yet, so environmental groups who may be calling for moratoriums of oil-by-rail are really only trying to leverage their
anti-oil agenda with these accidents.”
Green points out that the difference between pipelines and
rail is not a complicated thing. “Compared to rail, pipelines go
from point A to point B, they’re mostly underground, they’re
generally away from highly populated areas, and they are monitored in real-time for pressure and flow, so we are able to tell
quickly if they are operating correctly.” He notes that with
pipelines, safety equipment and spill response gear can be prepositioned, whereas with rail, things are a vastly more complex
challenge. “Railcars can be re-routed on the fly, you may not
know where they are at all times, there are many, many more
railcars to keep track of and there are far more opportunities for
operator or mechanical error.” He adds that given the flexibility
of rail, there will always be a place for it in the movement of oil,
but that pipelines still present the safest method for long-distance
transport.
A typical oil tankercar carries about 700 barrels of oil
(approximately 30,000 gallons) and most oil unit trains range in
length from 90 to 110 cars. With respect to oil, the Canadian rail
industry has evolved from a manifest system (which involves
multiple stops), to trains that go directly from the point of origin
to the point of destination. Called unit trains, they cut costs for
a railway by eliminating the need for stops, starts and switching,
making a trip shorter, faster and resulting in cost savings.
In a January conference call reported by Canadian financial
media, CN Chief Executive Officer Claude Mongeau is quoted
saying CN expects shipments of energy-related commodities,
including crude oil and frac sand, to rise by 75,000 carloads in
2015 to 292,000, from 217,000 in 2014. “There’s a lot of
A
investments that are being made by our customers in the energy
markets, whether it’s new frac-sand plants or new infrastructure
to move crude. We believe those investments are made for the
long term,” he said.
Meanwhile, Canadian Pacific Railway Ltd. has slashed its
forecast for crude-by-rail volumes amid the collapse of oil prices.
The Calgary-based carrier said it moved less oil in the final three
months of 2014 and it expected to haul about 140,000 tankcars
this year, down from an earlier estimate of 200,000. In published
reports, Hunter Harrison, CP’s Chief Executive Officer, said the
decline in crude prices should give the economy a boost and the
railway will see a rise in demand for other commodities as a
result. CP has set ambitious growth targets of doubling per-share
earnings and boosting annual revenue to $10-billion by 2018.
One-third of this growth is expected to be derived from moving oil
as new terminals come on-stream, including the Kinder Morgan
and Imperial Oil facility in Edmonton, and a Plains Midstream
Canada terminal in Saskatchewan.
Lack of pipeline capacity turns to huge oil-by-rail
surge
National Energy Board figures released March 5 show that
Canada exported 173,342 barrels per day of crude by rail between
October and December last year, down five per cent from
182,396 barrels per day (bpd) shipped across the border in the
third quarter. However, fourth-quarter rail exports were still 16
per cent higher than the same period a year earlier. North American oil producers have increased their reliance on rail as new
pipelines have become mired in regulatory processes, environmental and public protests. Oil produced from Canada’s oil sands
in Alberta and the shale production from the North Dakota
Bakken fields, has instead moved by rail.
The Fraser Institute’s Kenneth Green says, “There may be a
April 27, 2015 • Canadian Sailings • 35
sailings1061 2015-04-24 1:59 PM Page 36
slowdown in the growth of oil by rail while prices are low. The
higher cost of transport by rail, combined with higher production
costs for oil from Alberta may make it uneconomical to bring
those producers on-line.” Green says in the short-term, the
growth rate may slow, but the long-term outlook, according to all
those who track energy demand, suggests demand will rebound
and prices will rise and the surge on rail will continue.
According to the Canadian Association of Petroleum Producers, the Canadian crude oil industry faces a three to five year
period of constrained pipeline capacity given the current status of
proposed major crude oil expansions such as Keystone XL, the
Trans Mountain Expansion, Enbridge’s Northern Gateway Project
and TransCanada’s proposed Energy East Pipeline. None of these
projects are yet in the construction phase and some still face protracted regulatory and legal proceedings. By the end of 2015,
western Canadian rail uploading capacity for crude oil is expected
to exceed 1.0 million b/d. Several proposed facilities can be further expanded so rail capacity could increase to 1.4 million b/d.
Producers like ExxonMobil, Chevron and ConocoPhillips
want a temporary way to transport oil while waiting for the U.S.
to act on Keystone XL. Reports last spring show oil producers and
Keystone XL developer TransCanada Corp. exploring options of
transporting Canadian crude oil by railcar until the pipeline is
approved. TransCanada CEO Ross Girling is quoted saying, “Our
customers asked whether we would explore with them potentially
building rail-car loading facilities at a place called Hardesty, which
is the initiation point of the current Keystone XL project, and
we’ve said we will do that, and we’ll do it expeditiously.”
Two years after Lac-Mégantic Canadian government
introduces new safety regulations
In February 2015, the Government of Canada introduced the
Safe and Accountable Rail Act. The new legislation details proposed amendments to federal railway legislation, including the
Canada Transportation Act, aimed at strengthening the liability
and compensation regime for federally-regulated railway companies transporting certain dangerous goods, including crude oil.
The amendments establish minimum liability insurance levels for
freight railway operations.
The minimum liability insurance coverage is based on the
type and volume of goods transported and ranges from
$25,000,000 for transportation of minimal quantities of dangerous goods to $1,000,000,000 for transportation of large volumes
of dangerous goods, including crude oil. Railway companies that
do not maintain the applicable minimum liability insurance will be
prohibited from operating and may be subject to a fine of up to
$100,000. Oil companies shipping their product in railway cars,
meanwhile, will now face a levy of $1.65 for every tonne of crude
shipped, working out to roughly 23 cents per barrel.
In spite of the derailments, oil-by-rail will be with us for the
foreseeable future. The Canadian Association of Petroleum Producers reported in 2014 that insufficient railcar supply and rail
loading facilities are the current constraints for Canadian oil producers to move their product. They report that a number of
manifest and unit train loading facilities have been completed in
Western Canada and more projects have been announced. In the
longer term, as crude oil production from western Canada is
expected to grow significantly, even with new pipeline projects in
operation, rail transportation is poised to play a more significant
role in the near term and rail will continue to offer a transportation alternative as producers seek to expand market access.
PROTOS SHIPPING LIMITED
SINCE
1951
Please visit our website at www.protos.ca for updated schedules & services
HEAD OFFICE TORONTO
TEL: (416) 621-4381
FAX: (416) 626-1311
CUBA
MONTREAL
TEL: (514) 866-7799
FAX: (514) 866-7077
HALIFAX
TEL: (902) 421-1211
FAX: (902) 425-4336
CUBA/MELFI LINES
VESSEL
HELENE J
VOY.
VANCOUVER AGENT:
ACGI SHIPPING LTD.
TEL: (604) 683-4221
FAX: (604) 688-3401
MTL/
TOR.
HALIFAX
MARIEL
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VERACRUZ
1
11-MAY
16-MAY
21-MAY
25-MAY
26-MAY
28-MAY
12
26-MAY
29-MAY
03-JUNE
07-JUNE
09-JUNE
11-JUNE
6
08-JUNE
11-JUNE
16-JUNE
20-JUNE
22-JUNE
24-JUNE
PROGRESSO
LCL TO CUBA
FRITZ REUTER
TASMAN STRAIT
General Cargo
DIRECT
NATIONAL SHIPPING COMPANY OF SAUDI ARABIA
Ro/Ro, B/Bulk & CNTR
Service to:
VESSEL
Jeddah, Dammam, Dubai,
Karachi, Mumbai
Additional FCL Service
to other Middle East
destinations.
B. HOFUF
B. ABHA
B. JEDDAH
36 • Canadian Sailings • April 27, 2015
VOY
CLOSING
TOR/MTL
SAILING
HOUSTON
SAILING
BALTIMORE
SAILING
HALIFAX
7
8
5
30-Apr
20-May
12-June
10-May
31-May
23-June
24-May
11-June
02-July
28-May
15-June
06-July
sailings1061 2015-04-24 1:59 PM Page 37
Tankercars not the only problem:
volatile oil now under scrutiny
BY R. BRUCE STRIEGLER
fter the 2013 derailment and explosion of an oil train that killed 47
people in Lac-Mégantic, Quebec,
many pointed to old, DOT-111 tanker
models as a main reason for the disaster and
others like it. But at least four of the five
recent incidents have involved newer, and
theoretically safer, CPC-1232 models. With
tens of thousands of oil cars criss-crossing the
continent, safety regulations and standards
must be harmonized between Canada and
the U.S., a process occurring with little
notable sense of urgency on the U.S. side.
Despite successive accidents across
North America involving the DOT-111s,
those railcars remained the oil-by-rail workhorse until February, 2014. It was more than
a year after Lac-Mégantic that Canadian federal regulators required they be refitted as
sturdier CPC-1232 tank cars. In March of
2015, Canada proposed new tankercar standards.
The new standards call for a hull thickness of 9/16 inch, up from the current 7/16
inch or half inch, depending on car type.
Older DOT-111 cars are being replaced in
Canada by CPC-1232 cars, but even these
will have to be phased out by 2023 or 2025,
depending on whether they are jacketed or
not under the proposed standards. Jacketed
cars have an outer cover that provides additional thermal protection. Although they are
deemed somewhat safer than the older DOT111 cars, nine CPC-1232 cars ruptured in
CN’s recent northern Ontario derailments
and fires.
The robustness of tankercars has
become a major focus of efforts to improve
the safety of shipping crude by rail. In the
U.S., shipments have soared from about
21,200 barrels per day (bpd) in 2009 to 1.04
million bpd at the end of 2014. As the U.S.
shale boom gathered speed, the safety of
crude shipments by rail has attracted greater
scrutiny, especially after the derailment in
Lac-Mégantic. So far in the U.S., speed limits
have been adopted, and a new rule in North
Dakota requires crude from the state to be
treated to make it less combustible. Quoted
in media reports, a spokesman for the Association of American Railroads, said the
railroad-industry trade group “wants all tank
cars carrying crude oil, including the CPC1232, to be upgraded by retrofitting or taken
out of service. Railroads share the public’s
deep concern regarding the safe movement of
crude oil by rail.”
A
U.S. administration to bring in
proposed regulations in May
The public mood in the U.S. can be
summed up in a March 7 press release from
the U.S.-based Center for Biological Diversity.
“Before one more derailment, fire, oil spill
and one more life lost, we need a moratorium
on oil trains, and we need it now”. The oil
and railroad industries are playing Russian
roulette with people’s lives and our environment, and the Obama administration needs
to put a stop to it.” The organization points
out that the Obama administration recently
delayed for several months the approval of
proposed safety rules for oil trains. The group
adds, “The proposed rules fall short because
they fail to require appropriate speed limitations, and it will be at least another two and
a half years before the most dangerous tank
cars are phased out of use for the most hazardous cargoes. The oil and railroad industries
have lobbied for weaker rules on tank car
safety and brake requirements.”
The U.S. administration has also
declined to set national regulations on the
level of volatile gases in crude oil transported
by rail, instead deciding to leave that regulation to the state of North Dakota, the major
point of origin of the Bakken oil. By this May,
the U.S. government is expected to finalize
regulations that would increase the safety of
moving hazardous materials by rail, including
federal tank car standards and rail operating
rules for trains carrying certain hazardous
materials including crude oil and ethanol.
Freight railroads support the federal standards
for tank cars, and cars with increased shell
thickness, jacket protection, thermal protection, full-height head shields, high-capacity
pressure relief devices, as well as bottomoutlet handle protection and top-fittings
protection.
In the past, Alberta bitumen not
considered as volatile as Bakken
shale oil
There are renewed calls for Alberta and
Bakken crude producers to lower the volatility of their oil products before shipping by rail.
With the newer CPC-1232 car involved in
the latest derailments and fires, attention will
again turn to tankercars. But safety advocates
in the U.S. say the problem is not the containers but with the oil itself, prompting calls for
the government to force railways to use stabilization towers, common in Texas, but not in
Alberta or North Dakota, to remove the more
volatile light-end products like propane and
butane from the oil before shipping.
In recent news reports, the Executive
Director of the Crude Oil Quality Association,
said the idea that Alberta crude was involved
in the recent Ontario accidents, “certainly
broadens our concerns” beyond the Bakkenproduced oil. He noted there are some in the
industry who believed the problem of
extremely volatile oil was unique to the
Bakken formation, which straddles North
Dakota,
Montana,
Manitoba
and
Saskatchewan. Producers in the area will
soon be required to take extra precautions to
reduce oil volatility.
Separately, CP Rail CEO Hunter Harrison has been quoted saying that the company
would like the right to reject some dangerous
goods on some routes. He cited concerns
from the organization’s Board of Directors
about the company’s liability and possible dangers to the public. Transport Canada,
however, says it has no plans to change socalled “common carrier” laws that require
railways to carry all legal goods.
Critics call out regulators on
volatility of both Alberta and North
Dakota oil
For years, Alberta bitumen has been considered less volatile and safer to transport than
oil from North Dakota’s Bakken fields. (In its
report on the Lac-Mégantic derailment,
Canada’s Transportation Safety Board likened
the volatility of Bakken oil to gasoline.) But
the recent bitumen spills at Gogama should
NOTICE OF
APPOINTMENT
Montreal Port Authority (MPA)
MPA President and CEO Sylvie
Vachon is pleased to announce the
promotion of Sophie Roux, currently
Director of Communications,
to the position of Vice-President,
Public Affairs. This promotion also
heralds the creation of this new
vice-presidency at the Port of Montreal.
Sophie Roux has served the Montreal
Port Authority for close to two years.
A senior communications executive,
she worked for many years in the
Ottawa region, where she acquired
extensive and varied experience in
reputation and issues
management, and in
media, government
and stakeholder
relations.
Sophie Roux,
Vice-President,
Public Affairs
April 27, 2015 • Canadian Sailings • 37
sailings1061 2015-04-24 1:59 PM Page 38
give federal regulators, shippers and carriers pause. The widely-held
industry belief that Alberta crude is safer than Bakken oil appears
wrong.
On its own, bitumen is considered essentially non-flammable in a
derailment. But to get the thick, tarry crude to flow in and out of tank
cars, a diluent is added; that diluent renders the product highly volatile.
Alberta Innovates, a consortium of industry, government and university
researchers, recently found that diluted bitumen, known as “dilbit,”
has a volatility similar to Bakken crude. Transport Canada should therefore ensure the testing and categorization of it as a higher-class
dangerous product, similar to the Bakken oil process.
There are hopes that Bakken crude can be treated to remove benzene and other “light end” substances before loading, rendering it
mildly flammable instead of highly explosive. The same is not true for
dilbit, because the highly volatile diluents are added to the crude to
make it less viscous. A safer procedure is to heat bitumen at origin
before loading into a tank car and again at destination, prior to unloading. Some tank cars are equipped with internal steam coils for this
purpose and are used in crude oil service, but a requirement for such
heating elements is not included in the specifications proposed for a
future DOT-117 tank car to replace both the DOT-111 and CPC-1232
cars now in service.
Why has it taken so long to get the old cars oﬀ the
tracks?
Transport Canada says 147,000 older DOT-111 tank cars are
hauling flammable liquids on North American railways, and 80,000 of
these were built before 2011. The new CPC-1232 cars had critics
sounding alarms even before the tankercars were put into use in June,
2014. The TSB refused to endorse the cars, calling them “not sufficiently robust.” The TSB claimed the cars “performed similarly to those
involved in the Lac-Mégantic accident” and urged the federal government to “go further than the 1232 standard.” Recent accidents
involving the cars should raise alarms: both Gogama spills involved
CPC-1232 cars. So did two others involving crude shipments in in
West Virginia and Illinois in the last month.
The rail industry, concerned that authorities in Canada and the
U.S. are failing to recognize the failings of these tank cars, proposes a
new design for oil shipments. These cars would have thicker steel
shells, a release valve allowing pressure to be released in case of fire and
full steel shields to protect in the event of a rollover where cars tend to
rip each other apart. These tankers, designed by Oregon’s Greenbrier
Companies, have been found to be twice as safe as the CPC-1232s and
eight times less likely to spill in testing.
The drop in oil prices has dampened orders for tank cars, and
building replacements has been complicated by the length of time governments in Canada and the United States have taken to issue new
rules. Washington is not expected to announce its standards and regulations until May, while tank-car makers have been building a model
that matches the standards most recently proposed by Canada.
Industry group Railway Supply Institute says companies that manufacture flammable goods tank cars in North America have an order
backlog of 57,625, since crude shippers are scrambling to meet the
bans on older cars. The handful of railcar manufacturers are adding
capacity, and are expected to deliver about 40,000 new tankers this
year, five thousand more than 2014. At a cost of more than $60,000
per car, they have upgraded almost 8,500 older tank cars. Tanker manufacturers refuse to talk about costs, but industry observers note that
those with the newest standards will sell for around $200,000, up
about 25 per cent over the older models.
Sarah Feinberg, the acting U.S. Federal Railroad Administrator,
said recently that improving the safety of crude transportation will
require a multipronged approach. “This situation calls for an all-of-theabove approach—one that addresses the product itself, the tank car it
is being carried in, and the way the train is being operated,” she said.
Operations Manager
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38 • Canadian Sailings • April 27, 2015
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Termont Montréal Inc. is located at the Port of
Montréal (QC) and operates two container terminals. Termont’s facility is equipped with specialized gantry cranes and intermodal terminal
equipment with direct access to both CN and
CP rail lines. With the use of modern equipment, computerized inventory control with
EDI capabilities, and experienced personnel,
Termont provides its customers with increased
WXUQDURXQGDQGHIÀFLHQWVHUYLFHV
We offer equal career opportunities to all applicants.
sailings1061 2015-04-24 1:59 PM Page 39
Canada Post segment reports $194-million profit
before tax in 2014
he Canada Post segment of Canada Post Group of Companies
reported a profit before tax of $194 million in 2014 compared
to a loss before tax of $125 million in 2013. Results exclude
Canada Post’s three non-wholly owned principal subsidiaries, Purolator Holdings Ltd., SCI Group Inc. and Innovapost Inc.
The results were mainly due to three factors that were consistent
throughout much of the year – strong growth in the Parcels business,
lower employee benefit costs and new pricing measures for Transaction
Mail.
T
Mail, which includes mostly letters, bills and statements, fell by a further 5.2 per cent or 214 million pieces, compared to 2013. Compared
to 2006, Domestic Lettermail volumes fell by 1.4 billion pieces, or 28
per cent.
The tiered pricing structure contained in the Five-point Action
Plan, introduced at the start of the second quarter, helped to offset the
impact of this steep and continuing volume decline. As a result, Transaction Mail revenue rose by $238 million or 8 per cent compared to
2013.
Parcels results
Direct Marketing results
With the increasing popularity of online shopping, the Corporation’s role as an essential enabler of e-commerce grew even stronger in
2014. Parcels revenue from the Canada Post segment’s top 25 e-commerce customers rose by almost 30 per cent in 2014 compared to
2013.
In 2014, the Canada Post segment’s revenue from Domestic
Parcels, the largest Parcels product category, surpassed $1 billion for
the first time, rising by $85 million compared to 2013. Total Parcels
revenue for the Canada Post segment increased by $120 million to
more than $1.5 billion and volumes increased by seven million pieces
compared to 2013, thanks in part to a very successful holiday season.
In 2014, Direct Marketing contributed more than $1.2 billion in
revenue to the Canada Post segment. Direct Marketing revenue in
2014 for the Canada Post segment fell by $37 million or 3 per cent and
volumes decreased by 112 million pieces or 2.2 per cent compared to
2013.
Transaction Mail results
The greatest challenge to Canada Post’s financial sustainability is
the continuing decline of Lettermail. In 2014, volumes of Transaction
Employee benefit costs
The Canada Post segment’s 2014 results were also helped by a
$181 million non-cash reduction in employee benefit costs compared
to 2013. This is a result of strong pension asset returns in 2013 and an
increase in the discount rates used to calculate benefit plan costs in
2014. Pension costs remain highly volatile and are expected to increase
in 2015.
The Canada Post Group of Companies reported a profit before tax
of $269 million in 2014 compared to a loss of $58 million in 2013.
PROTOS SHIPPING LTD. located in Montreal currently has an opening for a:
CUSTOMER SERVICE REPRESENTATIVE
SALES & MARKETING
REPRESENTATIVE
We have an immediate position available for
a sales and marketing representative in our
Mississauga office. You must be customer
service oriented, well organized, have an
outgoing personality, and be interested in
working as part of a team of dedicated professionals.
This position works with a focused and dynamic team, offering opportunities for
professional and career growth for the right candidate.
Requirements:
Minimum 5 years experience in International Transportation & Logistics • Bilingual. Fluency
in English is required • Advanced user of MS Office, capable of analyzing data with Excel •
Experience in ship agency, freight forwarding, breakbulk and container requirements.
Salary commensurate with experience, along with company benefits.
This full-time position is available immediately.
Applicants are requested to submit their CVs by email to: [email protected]
The position requires a proven track record in
the sales and marketing of NVOCC services
to Forwarders with preference being given to
individuals with such experience. You must
have a good driving record and an automobile
for which you will be compensated.
We offer an excellent benefit and remuneration package commensurate with experience.
If you are interested in working with us please
email your resume in utmost confidentiality
to:
[email protected]
Please note that only those candidates of particular interest to us will be contacted.
April 27, 2015 • Canadian Sailings • 39
sailings1061 4/24/15 6:58 PM Page 40
New CWB ship opens Seaway’s 57th navigational
season
he St. Lawrence Seaway Management Corporation (SLSMC) marked
the opening of the Seaway’s 57th
navigation season on April 2, with the
transit of newly-built CWB Marquis
through the St. Lambert Lock. The vessel
is the first of two Equinox-class lakers
ordered by Winnipeg-based grain marketer CWB that are being purpose-built
for trade in the St. Lawrence Seaway. In
2014, over 12 million tonnes of grain
moved through the Seaway, the highest
volume recorded since the beginning of
the 21st century.
“CWB’s recent investment in ships
underlines the importance of the St.
Lawrence Seaway to Canada’s agricultural
industry. The Seaway serves as a vital
transportation artery, enabling grain to be
efficiently shipped both within North
America and to more than 30 markets
overseas” said Terence Bowles, President
and CEO of SLSMC. “As agricultural technology boosts production and global
demand for grain intensifies, there is great
opportunity for the Seaway to be increasingly at the center of Canadian and U.S.
efforts to broaden exports.”
Ian White, President and CEO of
CWB, served as the keynote speaker at
the opening. “The future success of our
company is dependent on reliable, cost-
40 • Canadian Sailings • April 27, 2015
Photo: Chamber of Marine Commerce
T
Left to Right: Betty Sutton, Administrator, Saint Lawrence Seaway Development
Corporation; Captain Seann O’Donoughue; Chief Engineer David Michalowicz;
Terence Bowles, CEO, The St. Lawrence Seaway Management Corporation.
effective transportation networks going
East, as well as West. Our new vessels,
along with our terminals in Thunder Bay
and Trois-Rivières, will allow us to reach
our customers in Europe, the Middle East
and Africa quickly and, at the same time,
get the best returns for farmers.” CWB
Marquis, which will be managed by Canadian shipping company Algoma Central
Corporation, is part of a $4 billion fleet
renewal program being undertaken by various Great Lakes / Seaway System carriers
over a span of 10 years (2009-2018).
In terms of infrastructure support,
SLSMC is in the midst of a five-year plan
which commits almost $500 million
to modernizing its locks and structures.
Likewise, the U.S. Saint Lawrence Seaway
Development Corporation is spending $99
million to renew its asset base over a comparable timeframe.
“The Great Lakes St. Lawrence
Seaway System provides global access to
the heartland of North America, where
opportunities abound,” said U.S. Saint
Lawrence Seaway Development Corporation Administrator Betty Sutton.
“Through a new Regional Outreach Initiative, we are working to expand our reach
and role across the Great Lakes region,
North America’s ‘Opportunity Belt’. Helping our cities, states, and provinces in the
Great Lakes region realize further eco-
nomic growth and productivity via our
binational waterway is the overarching
point. Additionally, the significant financial investments we are making in
infrastructure and new technologies
through our Asset Renewal Program are
enabling the entire Great Lakes Seaway
System to realize increased safety and efficiencies.”
Ken Lerner, Lafarge’s Purchasing
Manager for Eastern Canada, echoed the
upbeat sentiment as he outlined how
Seaway-sized vessels enable Lafarge to
cost-effectively take delivery of raw materials used in the production of cement.
“The St. Lawrence Seaway enables
Lafarge to maintain a highly efficient logistics chain” said Lerner at the opening
ceremony.
In terms of the cargo volume outlook
for 2015, Terence Bowles noted that he
hopes to see a repeat of the strong results
in 2014, when the Seaway recorded 40
million tonnes of cargo. “Tonnage forecasts are always difficult, especially with
continued volatility in the global economy. The Seaway, as part of the larger
Great Lakes / Seaway system, is a reliable
transportation route with the capacity to
move substantially more cargo to and from
destinations throughout the world”, said
Bowles.
sailings1061 2015-04-24 2:00 PM Page 41
CWB Marquis the first vessel to officially pass through
the St. Lawrence Seaway in 2015
nder the leadership of Captain
Seann O’Donoughue and Chief
Engineer David Michalowicz, MV
CWB Marquis was the first vessel to officially sail through the St. Lambert locks to
inaugurate the Seaway’s 2015 shipping
season. Captain O’Donoughue has worked
for Algoma in different capacities since
1997 and has been in the capacity of
Master since 2007. Captain O’Donoughue
hails from Owen Sound, Ontario. Chief
Engineer Michalowicz returned to Algoma
in 2013 and is a resident of Fonthill,
Ontario. Both were onboard during the
vessel’s maiden voyage to Canada.
CWB Marquis is the third in a series of
innovative, efficient and environmentallypreferred new Equinox Class ships to arrive
in Canada. This state-of-the-art new vessel
represents the next generation of Great
Lakes bulk carriers. Developed by Algoma,
together with a team of world class designers, naval architects and engineers, Equinox
Class balances hull form, power and speed
with cargo-carrying capability for optimal
performance and environmental efficiency.
The Equinox Class series will include four
gearless bulk carriers and four self-unloaders. CWB Marquis is the first of two Equinox
Class vessels delivered to CWB. CWB Marquis and CWB Strongfield, scheduled to
arrive later this year, are owned by CWB,
but are part of the Algoma Bulker Pool,
which Algoma operates and manages.
Marquis is named after the historic
wheat variety that was bred specifically for
the short Canadian growing season. Its consistent wheat quality and yield set the stage
for Canada to become a first-class wheat
exporter.
The new ships are 45 per cent more
efficient than their predecessors. Importantly, the modern Tier II electronically
controlled engine will reduce air emissions
by 45 per cent. Each Equinox Class ship
includes a fully integrated, IMO approved,
closed loop exhaust gas scrubber system to
remove 97 per cent of all sulphur oxides
from shipboard emissions. The Equinox
Class is the first class of Great Lakes commercial vessels to be built with integrated
exhaust gas scrubbers.
CWB Marquis was built by Nantong
Mingde Heavy Industries, in China. The
ship completed a 14,700 nautical mile, 61
day voyage from China to Canada when it
arrived at Port Cartier, Quebec on January
1, 2015 to load 28,421MT of iron ore destined for ArcelorMittal Dofasco in Hamilton.
CWB Marquis is 225.55 metres (740’)
long, with a beam of 23.77 metres (78’) and
Photo: Chamber of Marine Commerce
U
Wayne Smith (left), Senior Vice-President, Commercial, Algoma Central
Corporation, and Ian White, President and CEO, CWB.
a depth of 14.7 metres {48’ 3”). The vessel
has a Gross Registered Tonnage (GRT) of
23,895 and has 5 cargo holds. It carries
approximately 29,800 metric tonnes of
cargo at the maximum Seaway draft of 8.08
metres (26’6”). CWB Marquis is equipped
with an approved, state of the art, Draft
Information System (DIS) which utilizes upto-date charts containing high resolution
bathymetric data that allows the vessel to
increase its maximum operating draft by up
to 7 cm in the St. Lawrence Seaway.
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April 27, 2015 • Canadian Sailings • 41
sailings1061 2015-04-24 2:00 PM Page 42
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42 • Canadian Sailings • April 27, 2015
sailings1061 4/24/15 6:28 PM Page 43
Federal government moves to privatize CWB
or the ﬁrst time in decades Western Canada is going to have a
new major competitor in the grain industry with the
announcement of the investment by G3 Global Grain Group
(G3) in CWB.
G3 Global Grain Group (G3), a newly established agribusiness
joint venture between Bunge Canada and SALIC Canada Limited,
has been named the successful investor in CWB. SALIC Canada Limited is a wholly owned subsidiary of Saudi Agricultural and Livestock
Investment Company (SALIC), based in Riyadh, Saudi Arabia. Bunge
Canada is an integrated food and feed ingredient company. At the
highest level, G3 seeks to unlock the potential value of agricultural
products across Canada by establishing a highly efﬁcient coast-tocoast grain enterprise.
The investment of C$250 million (subject to certain closing
conditions and adjustments) will result in G3 acquiring a majority
ownership interest of 50.1 per cent in CWB, with the remaining
stake of 49.9 per cent to be held in trust for the beneﬁt of farmers
and administered through the Farmer Equity Plan announced by
CWB in 2013, with G3 having an option to buy them out after seven
years. “G3’s signiﬁcant investment in CWB together with the
Farmer Equity Plan will create a major new competitor by facilitating
the continued expansion of our grain handling network,” said CWB
President and CEO Ian White. “Creating value for farmers will continue to be at the core of CWB and this plan offers them a unique
opportunity to have equity, at no cost to them, in an international
grain company.” The transaction is expected to close in July 2015.
CWB, previously known as Canadian Wheat Board until the
federal government removed its western grain monopoly in 2012, is
a grain handling and trading company that operates a network of
seven grain elevators in Western Canada and port terminals in Thunder Bay, Ontario and Trois Rivieres, Quebec. CWB is building four
additional state-of-the-art grain handling facilities in Bloom and St.
Adolphe, Manitoba, and Colonsay and Pasqua, Saskatchewan.
Bunge’s export terminal in Quebec City as well as four elevators in
Quebec will be part of the transaction.
Ian White will continue with CWB until closing and for a
F
period of time thereafter to ensure a successful transition period.
CWB’s Board has not yet been conﬁrmed but will consist of seven
directors including a representative of the Farmers Trust.
“It is a dynamic time for Canadian agriculture. As global
demand for agri-products grows, consumers continue to demand the
high quality grain produced by our Canadian farmers,” says Karl Gerrand, CEO, G3. “Our vision is to establish a highly efﬁcient
coast-to-coast Canadian grain enterprise that provides stronger
market access solutions for growers and delivers value to our stakeholders and the Canadian agriculture industry as a whole. We
welcome the CWB team and farmer equity owners, and look forward to working together to build a new and dynamic company.”
“Bunge’s relationship with Canadian farmers extends nearly 50
years through our grain operations in Eastern Canada and our
oilseed processing facilities throughout the country,” said Todd
Bastean, CEO, Bunge North America. “The investment in G3 and
CWB complements our existing Canadian footprint and strengthens
our origination and export capabilities in one of the world’s premier
growing regions.”
“Canada is poised to play an increasing role in providing food
to a growing world population and in capturing a larger share of the
international market demand,” says Abdullah Al-Rubaian, Chairman, SALIC. “SALIC is committed to infrastructure investment in
countries such as Canada, which are exporters of surplus supplies of
high quality grain. The launch of G3 will enable us to invest in infrastructure across Canada, providing more market choices for
Canadian producers. We are committed to G3’s growth strategy and
are excited to work with Bunge, CWB, and the Canadian farming
community.”
Canada shipped 378,000 tonnes of wheat to Saudi Arabia in
2013/14, and 126,500 tonnes of barley, representing just over 10
per cent of Saudi Arabia’s (3.4 million tonnes of) annual wheat
imports and only 1.5 per cent of its (9 million tonnes of) annual
barley imports. Saudi Arabia and other Gulf states have invested
heavily in overseas agricultural projects during the past few years.
Lake Carriers’ Association reports Lakes ore trade off to
slowest start in five years
hipments of iron ore on the Great
Lakes totaled an anemic 800,000
tonnes in March, the lowest level for
the month since 2010. The March ore
float was also nearly 60 per cent below
the month’s 5-year average. Included in
the number are shipments from Canadian
Seaway ports during the month of
264,044 tonnes, which all originated
from Port Cartier, Quebec.
Shipments of coal, limestone and
cement during the month were down considerably from levels seen during the past
few years, although they showed an
increase compared to 2014 levels.
Heavy ice and lack of icebreaking
resources on both sides of the border were
the culprits. “The winter of 2014/2015
was again brutal,” said James H.I. Weak-
S
ley, President of Lake Carriers’ Association. “The ice formations were so
formidable that a number of LCA’s members chose to delay getting underway
rather than risk a repeat of last spring
when ice caused more than $6 million in
damage to the vessels. Compounding the
problem is that both U.S. and Canadian
icebreakers have experienced a number of
mechanical issues. Mackinaw, the U.S.
Coast Guard’s most powerful icebreaker, is
operating at less than full power. Other
icebreakers have suffered casualties that
have taken them out of service for various
periods of time.”
Weakley noted that with foreign steel
imports again reducing operating rates at
American mills to perilous levels, it is
even more critical that raw materials
move as efficiently as possible. “Right
now American steel mills need every competitive advantage they can get. A slow
start to resupplying the mills after the
winter closure is a worry the industry
could do without. This is just another
clear indication that the Lakes need, at a
minimum, another heavy icebreaker to
pair with Mackinaw, and another 140foot-long icebreaking tug to cover for the
one that has been sent to the Coast Guard
yard in Baltimore for service life extension.”
Weakley also called on Canada to
review its icebreaking resources dedicated
to the Lakes. The country used to have
seven icebreakers stationed on the Lakes,
but now just two are permanently
assigned here.
April 27, 2015 • Canadian Sailings • 43
sailings1061 2015-04-24 2:00 PM Page 44
CSL’s Paterson has modest expectations for 2015
BY BRIAN DUNN
he St. Lawrence Seaway is starting another season which saw
almost 40 million tonnes of cargo move through the system
last year. That figure will be tough to top this year, according
to Allister Paterson, President, Canada Steamship Lines. “It will go
down, we think, but at the start of last year we didn’t think it would
be that good either. Sometimes it’s wait and see.”
Mr. Paterson made the remarks during a tour of the 225.5metre-long CSL St-Laurent, the latest addition to its fleet and the last
vessel delivered as part of an ambitious rebuild program launched in
2010. “We started out with 17 vessels (sailing through the Seaway)
last year. We thought that would be all we needed, but we ended up
with 20 or 21. This year we’re starting with 17 again, but I don’t
think we’re going to get 20 or 21 out. This year looks softer.”
The CSL head attributed the anticipated drop to a decline in
commodity prices, particularly iron ore and coal where other countries such as Australia and Brazil are more competitive than Canada,
he noted. “Grain had a great year last year and this year it looks okay.
There was some holdover from last year, so April and May were
quite busy, so it looks like it’s going to be an average year for grain.
The other strong commodity is road salt. Because of the tough
winter we’ve had, particularly in the Midwest and East Coast, supplies are well down, so we’ll be moving a lot of salt again this year.”
CSL St-Laurent and CSL Welland are the company’s two new
Trillium Class bulk carriers. They join four new Trillium Class selfunloaders and are part of the newbuild program that produced a
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(L to R) Allister Paterson, President, Canada Steamship
Lines; Richard Samson, Captain of CSL St-Laurent; and
Sylvie Vachon, President and CEO, Montreal Port Authority.
total of 11 bulk carriers and self-unloaders for CSL’s Canadian and
American fleets in the last three years.
The 36,364 deadweight tonnes St-Laurent and 36,100 DWT
Welland are Seawaymax gearless bulkers that feature IMO Tier II
compliant main engines that are 15 per cent more fuel efficient than
CSL’s previous class of ships and will save about 750 tonnes of fuel
per year, reducing yearly carbon emissions by 2,400 tonnes. At current fuel prices, CSL could save up to $2.5 million a year from the
11 new vessels, said Mr. Paterson. The company may sell some of its
older ships for scrap, he added. “They are expensive to operate and
we could get about $3 million per vessel, depending on steel prices.”
St-Laurent and Welland will primarily carry agricultural commodities from the Great Lakes to ports along the St. Lawrence River,
including Montreal and Quebec City. Each bulker will carry
between 300,000 and 500,000 tonnes of grain annually. On her first
voyage, St-Laurent travelled to Quebec City to discharge stone ballast loaded in China where she was built at the Yangfan shipyard.
She then headed to Thunder Bay to load grain. Dry bulk accounted
for 28 per cent (or 8.4 million tonnes) of the commodities loaded
and unloaded at the port of Montreal last year, an increase of 50 per
cent since 2010, according to port statistics.
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44 • Canadian Sailings • April 27, 2015
Since 1921
sailings1061 2015-04-24 2:00 PM Page 45
OPINION
BC on the Move Road Map aims at improving
productivity in B.C.’s road transportation industry
BY LOUISE YAKO
hen the Ministry of Transportation and Infrastructure (MoTI)
released the BC on the Move 10year transportation plan on March 18, the
BC Trucking Association (BCTA) was glad
to see not only plans for infrastructure
improvements, but also the more important message that BC’s economy depends
on a safe, reliable and efficient transportation network.
The trucking industry accounts for 2
per cent of BC’s GDP, employs about
40,000 people, and is larger than other
major industries, including forestry, pulp
and paper, and oil and gas. There is tacit
acknowledgement of the importance of
our industry to BC’s economy in the 10year plan, which embeds a trucking
strategy.
As we face increasing globalization,
the cornerstone of Canada’s economic
wellbeing will continue to be an efficient
and competitive transportation network.
That’s why following joint federal-provincial projects to widen Highway 1 in the
Lower Mainland, construct the South
Fraser Perimeter Road and replace the Port
Mann Bridge, Transport Canada has undertaken an early review of federal
transport-related acts and regulations with
a view to ensuring Canada’s transportation
competitiveness for the next 40 years.
The top four BC on the Move priorities involve road infrastructure. That’s
because trucks not only deliver 90 per cent
of consumer products and foodstuffs to
communities across BC, they are also the
necessary link with other transportation
modes, including cargo ships arriving at
Port Metro Vancouver, railways, and air
cargo terminals. And, in 2013, trucks
transported 72 per cent of imports and 44
per cent of exports (by value) between the
U.S. and Canada.
So BC on the Move has it right. Road
capacity and conditions are crucial not
only to the trucking industry but to the
rest of us who need the goods it delivers.
W
Long-distance trucking will particularly
benefit from plans to reduce congestion
and improve highway reliability, such as
six-laning Highway 97 through Kelowna
and improvements to avalanche infrastructure on Highway 1. Anyone who’s had to
find a place to stay in Revelstoke or Golden
due to an avalanche-related highway closure will have noticed the number of
heavy trucks held up and waiting. It is a
necessary safety requirement to reduce
avalanche risk, but it`s also a time-consuming and expensive inconvenience for
trucking companies and their clients.
In addition, growth in the resource
sector, especially in Northeastern BC,
requires the transport of very large and
heavy specialized equipment and materials
needed to build dams and natural gas facilities and install pipelines. There are
trucking companies that specialize in this
type of service – even to the point of
designing purpose-built trailers to carry
individual items efficiently and safely. Getting that equipment where it needs to go
requires forethought and planning for
loads that are higher, wider and/or longer
than standard limits. BC on the Move commits to addressing infrastructure
challenges and streamlining the permit
process for oversized loads, making things
easier for the trucking companies involved
and the projects they’re supporting. Here
again, what benefits trucking benefits the
economy as well.
Finally, and although I mention this
last, it’s by no means least important to the
industry: the highway network and the
municipal road system is the workplace of
commercial vehicle operators. In many
instances, there are insufficient places for
truck operators to take a break, eat or use
washroom facilities, even in our cities and
larger communities. The ease and comfort
in which truck operators are able to carry
out their tasks and meet requirements to
rest, check equipment, or complete administrative duties is one of the reasons that
LOUISE YAKO
may discourage new recruits from entering
the industry. Both young people and
career-switchers are staying away from the
occupation in droves, with a projected
shortage of 2,200 to 4,500 drivers in BC
by 2020.
More and better rest areas for drivers
is a long-time BCTA policy, and BC on the
Move recognizes this priority with plans
for at least two new truck parking areas in
the Lower Mainland and a commitment to
identify locations for more, including parking and chain-up/chain-off areas on key
highways and partnerships for new commercial truck stops and facilities. It’s a
positive development to see the needs of
commercial vehicle operators captured in a
public 10-year transportation plan covering
the whole province.
BCTA is looking forward to seeing
these and other priority actions from the
BC on the Move road map implemented –
to the benefit of the trucking industry and
all British Columbians.
Louise Yako is President & CEO,
British Columbia Trucking Association
CORRECTION:
An article in the March 30 issue of Canadian Sailings (“Canada’s lumber exports rising as U.S. housing starts recover”) stated with
respect to the Softwood Lumber Agreement that “Should the parties not renew the agreement or fail to forge a new one, the terms of the
existing agreement will extend for another year.” In fact, if the agreement should not have been renewed or replaced, the United States
has committed to not launch a trade action against Canada for twelve months following the expiry of the existing agreement. However,
the existing agreement would have expired, meaning that there are no trade restrictions on Canadian lumber exports to the U.S. as of
October 12, 2015.
April 27, 2015 • Canadian Sailings • 45
sailings1061 2015-04-24 2:49 PM Page 46
Agility Fuel Systems to supply UPS with CNG fuel
systems for 445 trucks
.S.-based Agility Fuel Systems, a designer and producer of
natural gas fuel storage and delivery systems for heavy duty
trucks and buses, announced that UPS has ordered 445 of
its new 160 DGE Behind-the-Cab CNG fuel systems for delivery in
2015. UPS has led the industry in the adoption of natural gas in
heavy duty on-road trucking and with this new order, will be operating almost 1,600 heavy duty trucks equipped with CNG or LNG
fuel systems supplied by Agility. These trucks, once fully deployed,
are projected to run more than 230 million miles annually and are
expected to achieve up-time results that are comparable to diesel
trucks.
Agility’s 160 DGE design weighs 500 lbs. less than the previous model. The improvements to the system come from the Agility
Hexagon joint venture’s first new product: a new higher capacity
and lighter cylinder design. The latest system continues to deliver
the most efficient package of any CNG system in the industry and
utilizes four of the newly designed carbon fiber cylinders, for a total
weight of only 2050 pounds, and requiring only 31 1/4” of valuable frame rail space. Depending on the application, the system can
deliver a driving range of almost 1,000 kilometres before refueling.
In addition to its already outstanding capacity as a stand-alone
system, it can be packaged with side-mounted systems to provide
an operating range in excess of 1,700 kilometres.
In February, Agility Fuel Systems and Clean Energy Fuels, a
leading provider of natural gas fuel for the transportation industry
46 • Canadian Sailings • April 27, 2015
Photo: Agility Fuel Systems
U
in North America, announced a joint CNG fuel system sales program to reduce the incremental cost of heavy-duty natural gas
trucks. Under the program, Agility and Clean Energy will work
with trucking customers and offer CNG fuel systems installed at a
substantially reduced cost when there is a natural gas fueling agreement.
Agility Fuel Systems is a privately owned company that is not
affiliated with Agility Logistics.
sailings1061 4/24/15 6:29 PM Page 47
EDC: British Columbia’s ‘Secret’
BY PETER G HALL, VICE-PRESIDENT AND CHIEF ECONOMIST
lunging commodity prices and a falling Canadian dollar
have turned the tables on provincial growth projections.
Oil-producing provinces are in turmoil, absorbing the ongoing impact of project deferrals, cancellations, layoffs and revised
oil and gas production intentions. But the lower dollar has nonenergy manufacturers anticipating a bonanza. Ontario, Quebec,
Manitoba and others are foreseeing a long-awaited resurgence of
higher-value-added exports, and hoping that investment will
respond. Both are quite likely, but one province already seems to
be there. What’s British Columbia’s secret?
The sea change in the growth landscape is well-illustrated by
the shift in fiscal fortunes. Oil-producing provinces are already
counting the carnage, with Alberta clearly suffering the worst
reversal of the bunch. Its projected surplus has turned into a deep
deficit, barring counter-balancing measures that in the short-run
would magnify the economic misery. The story is similar for the
other significant oil-and-gas-producing regions. Among the
remaining provinces, those expecting a rapid reversal into the
black will have to wait for the expected upsurge in exports. Currently, it is British Columbia that stands almost entirely alone with
a projected surplus in the current fiscal year.
Obviously, fiscal outcomes are not normally a cause but a
consequence of a number of factors. Solid fiscal management is
critical, but not sufficient to guarantee a positive bottom line. The
economy needs to cooperate, and in BC’s case, it certainly has.
From a hot housing market to a consistently strong employment
picture to very respectable gains in business investment, BC has
posted very impressive numbers in the past few years. There is
concern that things may have been too hot, and that the domestic
economy is in for harder times. This is true across Canada, as the
consumer debt-to-income ratio has continued to grow. Housing
construction has continued well in excess of demographic
demand for a number of years, especially in the Vancouver
market. The prosperous years have clearly been key to British
Columbia’s favourable fiscal situation – but will it last?
In tandem with the progress in the province’s domestic
sector has been a radical shift in its trade flows. It has always been
among the more trade-diversified provinces in the country, both in
terms of the goods it ships and the markets it ships to. Even so,
this position has increased – dramatically. Between 2000 and
2013, no province increased its trade with emerging markets
P
more than British Columbia. Over that time, emerging market
exports grew from 8.2 per cent of total merchandise exports to 30
per cent – vaulting to top spot among the provinces.
BC’s geographic location is clearly an advantage, as trade
diversification was underway before the global crisis of 2008-09,
but the crisis itself was likely additional motivation. The forestry
sector is a key example. Sawmill products, in 2014 the largest
single export category, shipped 1.6 per cent of its output to emerging markets in 2000. Now, the share is 28 per cent. Not to be
outdone, pulp shipments – already diversified in 2000 with 22 per
cent of shipments headed to emerging markets – now ships almost
72 per cent of its product there. Logging has seen a radical
increase in its share, from 1 per cent to 53 per cent. Paper has
increased more marginally, from a share of 18 per cent in 2000 to
27 per cent now.
But it’s more than just the forestry sector. Thirteen per cent
of coal shipments used to go to emerging markets. Now, the
number is 43 per cent. Base metals are volatile, riding the ups and
downs of pricing, but the share has risen over the same timeframe
by 8 percentage points. The list goes on, but as stated, these products form the bulk of the top ten shipments by industry to the
world as a whole. Clearly, BC is set to benefit from the resurgence
of the U.S. economy, but for the future, as Canada’s growth
rotates to the export side of the national accounts, BC is wellplaced, thanks to increasing diversification, to capitalize as global
growth becomes more widespread.
The bottom line? British Columbia’s current record stands
apart from the rest of the provinces, and among other things, the
attention it has paid to trade diversification seems set to continue
paying dividends for years to come.
This commentary is reprinted courtesy of EDC. It is presented for informational purposes only. It is not intended to be a
comprehensive or detailed statement on any subject and no representations or warranties, express or implied, are made as to its
accuracy, timeliness or completeness. Nothing in this commentary is intended to provide financial, legal, accounting or tax
advice nor should it be relied upon. Neither EDC nor the author
is liable whatsoever for any loss or damage caused by, or resulting from, any use of or any inaccuracies, errors or omissions in
the information provided.
Société des traversiers du Quebec receives first of three
LNG-powered ferries
ociété des traversiers du Quebec
(STQ) has received the first of three
LNG-powered ferries. Built in Italy by
Fincantieri S.A., F.A. Gauthier will be the
first of its kind to enter service in North
America this spring. The ferry will be capable of transporting 800 passengers and 180
cars, and will replace Camille Marcoux on
STQ’s Matane-Baie Comeau-Godbout service.
The vessel is equipped with an inte-
S
grated diesel-electric propulsion, which
operates on four dual-fuel power generators
capable of running on LNG or diesel fuel.
Operating on LNG, the vessel will achieve
significant reductions in CO2 emissions,
and will reduce sulfur and particle emissions to negligible levels.
The $148 million vessel was ordered
by STQ in July of 2012, following a public
tendering process that commenced in January of 2012.
The vessel constructed by Fincantieri
is expected to be joined during the fall by
two more dual fuel ferries which are being
built by Chantier Davie Canada Inc. The
latter two, to be christened Jos-Deschenes
II and Armand-Imbeau II are slated to operate on the Tadoussac-Baie Sainte Catherine
route. They will be replacing ArmandImbeau and Jos-Deschênes, which have
serviced the crossing since early 1980.
April 27, 2015 • Canadian Sailings • 47
sailings1061 2015-04-24 2:00 PM Page 48
EDC says worlds’ second most populous nation holds
significant potential for Canadian business
“Since 2004 the Indian market has been
expanding exponentially,” says Raj Narula,
Canadian entrepreneur. “I believe the reason
was the introduction of wireless service for
everyone. At that time, Reliance Communications introduced a handset for less than $10.”
Although the hardware was inexpensive, the
cost of voice calls was prohibitive and the
market adapted by turning to texting instead.
“This created a 50 to 1 cost reduction and
was what I call a turning moment for India,
as people connected to people. These small
things are very important to Canadian business looking to enter new markets,
understanding how to navigate on the
ground, what the local business practices are
and how to adapt to those conditions. One
can become quite agile if you are using the
right communication methodology in India.”
India is the world’s second most populous county behind China, with a population
of over 1.2 billion people, the equivalent of
17.5 per cent of the total world population.
With a GDP above five per cent for the last
ten years, India is the world’s eighth largest
economy. Data from the International Monetary Fund projected that India’s GDP would
hit 2.3 trillion dollars (U.S.) in 2014. Remarkably, with a few exceptions, Bombardier in
transit, SNC-Lavalin in roads and energy,
Magna in auto parts, McCain in frozen foods
and Sun Life in insurance, Canadian companies have a modest presence on the Indian
scene.
In a recent web presentation, Economic
Development Canada (EDC) provided an
overview of the Indian market. Guest presenter Raj Narula, son of an Indian diplomat,
grew up all over the world but did his high
school in Canada. Mr. Narula was an early cofounder and president of TaraSpan, a
high-tech communications company with
offices in both Canada and India. He
describes his first significant foray into India,
“I was involved with strategic consulting, and
helping companies navigate entry into new
markets, and had been successful in turning
around a number of Ottawa software companies. In doing so, I took one business to India,
which was ultimately acquired by an Indian
software company.” He says the experience
taught him how to navigate and understand
the market. For the past 12 years, and speaking multiple languages, Mr. Narula has
divided his time between North America,
India and the Asia Pacific region.
Doing business in India requires an
adjusting of attitudes
He adds that another area that western
48 • Canadian Sailings • April 27, 2015
Mumbai, India
business finds unfamiliar involves setting up
meetings. “It’s a challenge, since a lot of the
time meetings are not arranged well in
advance. People’s schedules are so dynamic
in India that getting a meeting becomes a
challenge. However, the good part is that I’ve
never gone to India and had less than 30
meetings in a week. In essence, the system
always works, but it can seem that everyone
is scrambling.”
Narula says that pretty well all segments
of the Indian market offer Canadian companies potential. “From infrastructure
development, a key priority, to a large
demand for goods and services that fall within
the automotive, healthcare, information and
communication technology, oil and gas and
renewable energy sectors.” He says, “There
are so many products and processes that
Canadian companies have mastered.” Just
consider infrastructure, “India is investing
hundreds of billions of dollars in upgrading its
primitive transportation network and we
have some of the best know-how in building
roads, bridges and highways.” Mr. Narula
points out that the country has 800 million
telephone subscribers, “We’re talking a half
million towers across the country with plans
for as many more over the next five to seven
years. When you begin to look at requirements in the country, they are limitless. As a
Canadian company you must focus and target
the market you’re going after, know your
product and its applicability to that market.”
He continues by saying that companies
must understand their price point, need to
appreciate the support levels they’ll require
in-country, have good quality agents or partners and representatives in India. Narula says
it is critical to make sure the management
teams both in Canada and India are on the
same page. “The management team here in
Canada has to understand what they are dealing with on the other side. It can actually
impact budgets, personnel and resources. If
you’re actively pursuing that market, you
need to really be prepared and understand
these realities.”
Size and scale of India can be
overwhelming
Set apart from the rest of Asia by the
continental wall of the Himalayas, the Indian
subcontinent is bordered by the Bay of Bengal
to the east, the Arabian Sea to the west and
the India Ocean on the south. With a total
land mass of 2,973,190 square kilometres
(Compared to the 9,984,670 square kilometres of Canada), the English language is the
major language of trade and politics, but there
are fourteen official languages in all. There are
twenty-four languages that are spoken by a
million people or more, and countless other
dialects. India has seven major religions and
many minor ones, six main ethnic groups,
and countless holidays.
EDC webinar panelist Kevin Loiselle
President, CEO of Clearford Industries Inc.
says, “One of the best ways I’ve heard to
describe India is really more like a European
Common Union, a collection of 36 states and
territories form the country, and the differences between the states are comparable to
Photo: Sören Kohse
BY R. BRUCE STRIEGLER
sailings1061 4/24/15 6:30 PM Page 49
the differences between, say, Germany and France. India really is a
series of micro cultures within each of these states, and the differences
have to be addressed.” In January 2015, Clearford Industries signed a
memorandum of understanding with the Indian state of Gujarat’s
Water Supply and Sewage Board, to create a strategic partnership and
bring Clearford’s proprietary all-in-one wastewater collection and treatment system to rural regions of the State of Gujarat.
Mr. Loiselle adds that the size of India affects everything. “When
you address the government, it and the bureaucracy is incredibly large.
The size of the market is incredibly large, the companies you deal with
are large.” He says that for most Canadians, everything is on a much
bigger scale than in Canada. “The size of the airports, everything is on
such a large scale that it requires a different approach than doing business in Canada. One of the differences you will notice first is how
absolutely polite Indians are, from coast to coast. Their culture is one
of not putting people in awkward positions. In fact, I’d say, they have
difficulty saying no, even when they mean no. You may find yourself in
discussions with people and misinterpreting the signals that they are
sending.”
Canadian support for business at home and in-country is
available
Raj Narula interjects, adding, “We’ve all experienced this in India,
and it is a challenge. You don’t know if you’ve closed the sale or not,
you’re thinking you’re heading in the right direction and all the signals
are great, but deep down in those signals they are also saying, ‘We’re
not ready to buy yet’.” Narula notes that other notable differences
involve mobile phones, “In North America we may be reluctant to
share those numbers due to our ‘nine-to-five’ work practices. When we
go to India its 24-7, the only way to connect with business people is
through mobile phones.”
When asked by the webinar moderator about price sensitivity or
differences between Indian customers and Canadians, Kevin Loiselle
says, “I think that people are price sensitive everywhere, and never
more so than in India. I find price is a very important determinate and
usually the capital costs are an especially important factor, while operating costs over a long period, less so.” He adds that competition is
substantial, “There are a lot of companies from around the world out
there, many are prepared to undercut their prices to get market share.”
Mr. Narula notes that one of the biggest challenges for Canadian
companies entering the Indian market is the much smaller Canadian
footprint, thus supporting these initiatives in foreign markets tends to
be a little more difficult. “You’ve got to be able to innovate when it
comes to how you’re going to pitch yourself, how you’re going to support yourself.” He says that it is important to utilize the support services
available in Canada and in-country, such as federal and provincial trade
representatives and federal agencies such as EDC.
Kevin Loiselle adds, “As Canadian companies, we shouldn’t be
afraid to step out and ask for whatever assistance we may need and
access those services. I’m not sure that people who are looking at entering foreign markets are aware of how much aid is waiting for them,
already paid for by their tax dollars. I think they would be astounded
by the level of support and quick action by these very smart people on
the ground in India.” He also says that while Canadians are seen as
highly technological, “We’re also seen as a country that is not especially
aggressive when it comes to marketing ourselves and our products.
“We’re less aggressive than most every other country, so much so, it is
almost seen as a flaw.” He is most emphatic, after five years of experience with his own company’s entry to the Indian market, that it is
critical to have someone who has relationships and understanding of
the marketplace, who can make the kind of introductions you need.”
Loiselle explains that India is not really a transactional based economy,
it is a relationship-based one.
He continues noting that it is unlikely one will do business in
India without establishing those relationships, which will not come
from simply a dinner at the Mumbai golf club. “You need to work that
relationship, you need to have boots on the ground, showing you have
made a commitment to India and have the resources, staff and relationships with people who live in India.” Loiselle says one of the biggest
mistakes Canadian companies can make involves not ensuring senior
executives are in-country on a regular basis. “Flying over once, and
trying to do business by Skype will not work.” Narula concurred with
Loiselle, “It is important to be in front of people on a regular basis, it
does advance your business and one might be surprised that once you
succeed with your first business transactions, the dominoes will fall
quickly.”
Hamburg Süd most reliable line in February
ccording to market intelligence provider SeaIntel’s latest
Global Liner Performance report, global schedule reliability
improved by nearly 5 percentage points from January to February. On-time performance increased to 72.2 per cent in February
(based on 9,931 vessel arrivals.) Data shows that container delivery
increased to 54.2 per cent in February from 49.1 per cent in January, based on 2.8 million container arrivals.
In February, Hamburg Süd was the most reliable carrier with
an on-time performance of 86.2 per cent. The German carrier was
followed by CSAV and Maersk Line with a recorded on-time performance of 84.4 per cent and 83.4 per cent, respectively. The
CKYHE-members – COSCO, “K” Line and Yang Ming – were
ranked at the bottom of the list.
“The improvement in global schedule reliability was clearly
reflected among the Top 20 carriers as 19 carriers recorded an
increase in performance from January to February, with “K” Line
being the only exception. For the first time since February 2014,
Hamburg Süd is back on the top spot, although this does not come
as a significant surprise, as this has been the case for the German
carrier in February of the past two years.” said Mr. Morten Berg
Thomsen, shipping analyst at SeaIntel.
Mr. Berg Thomsen added: “The most important incident
taking place in February was the agreement that was reached
between the Pacific Maritime Association and the International
A
Global Top 20 carrier ranking – February 2015
Source: SeaIntel – Global Liner Performance Report – March 2015
Longshore and Warehouse Union, so the situation at the U.S. West
Coast can return back to normal, although it will take some
months.”
April 27, 2015 • Canadian Sailings • 49
sailings1061 4/24/15 6:32 PM Page 50
OPINION
Air Canada AC624: Questions arising from the March 28
landing at YHZ
K. JOSEPH SPEARS
he recent crash of an Air Canada A320 Airbus on final approach
to Runway 05 at Halifax Stanfield International Airport (YHZ)
has called into question airport emergency response capabilities
at the airport, and the larger issue of provision of aids to navigation to
strengthen aviation safety. On the day of the incident, March 28, the
Transportation Safety Board of Canada was celebrating its 25th
anniversary. It was created soon after the 1985 crash of an Arrow Air
DC-8 in Gander, Newfoundland, that resulted in the death of 248
U.S. Army soldiers of the 101st Airborne Division.
Questions need to be asked about emergency services at this airport that go beyond the mandate of the Transportation Safety Board
investigation. There is an old flying adage which says “any landing
you walk away from is a good one”. Applying this logic to AC624
should make us conclude that it was a good landing, as there was no
loss of life. That does not mean we should be complacent. Transport
Canada has adopted a multimodal safety management regime which
was to change the culture with respect to all modes of safety, making
risk management a central pillar of that process from both a regulatory
and management function. The goal is to take preventative steps so
incidents don’t occur.
The airspace over Eastern Canada is no stranger to disastrous
incidents. Swiss Air 111 that crashed on September 2, 1998, was in
visual range of Halifax International Airport at the time of its declared
emergency. The pilots chose to dump fuel over St. Margaret’s Bay. In
the process, the onboard fire overcame the MD-11 aircraft, resulting
in the loss of 229 souls and the total loss of the aircraft near Peggy’s
Cove. A Boeing 747 cargo plane crashed on the same approach in
2004, with the loss of nine lives. We have seen recently with a variety
of recent air crashes, Air France AF477, Malaysian Air MH370 and
MH17, Air Asia QZ8501, and most recently, Germanwings 9525, that
aircraft incidents can and do occur in the 21st century.
Most Canadians do not realize that Halifax is a major diversion
airport for transatlantic flights that travel between North America and
northern Europe. The North Atlantic is the world’s busiest oceanic airspace in the world. Nova Scotians are familiar with a sky full of
contrails which marks the passage of commercial air traffic on a great
circle route across the North Atlantic. At any one time, there may be
up to 1,200 passenger aircraft traveling in both directions in Canadian
controlled airspace (Gander Oceanic ATC) in the North Atlantic.
Canada has obligations under international law, in particular the
various conventions administered by the International Civil Aviation
organization (IACO) which is based in Montréal, with respect to accident investigation as well as search and rescue. Halifax’ long runway
at 10,500 feet and those at Gander, Newfoundland and Goose Bay,
Labrador and Iqaluit, Nunavut, are critical components of an international web of diversion airports that are used from time to time when
there is an in-flight emergency. We saw that in spades after 9/11.
While they are not often used they are a critical component of international aviation safety.
At Halifax International Airport and other major airports, we
need to ensure that state-of-the-art instrument landing systems on all
the runways are present and deployed, so that international flights that
may be diverted, and in a declared state of emergency, which more
likely than not occurs in bad weather, have every advantage for a safe
landing. The south end of runway 05 did not have an instrument landing system.
As for emergency response at Halifax International Airport, had
50 • Canadian Sailings • April 27, 2015
Photo: EPA
T
AC 624 gone down in the rough and rocky glaciated terrain of the
adjacent Waverley Game Sanctuary, where there are no roads, this
would have required a complex search and rescue operation in deep
snow using fixed and rotary wing aircraft of the Royal Canadian Air
Force and military personnel, along with ground search individuals
under the national Search and Rescue program. Waverley Ground
Search and Rescue, headquartered not far from runway 05, which
morphed into Halifax Regional Search and Rescue, is one of Canada’s
leading and oldest ground search teams. We need to make use of all
our skilled paid and unpaid SAR and First Responder professionals, and
perform exercises simulating mass casualty aviation incidents around
our major airports with the Canadian Armed Forces the lead on aviation SAR. AC624 needs to be a wake-up call for this to happen and
integrate safety management into airport management.
It is reasonable to anticipate that aircraft incidents at a Canadian
airport or remote crash site will involve passengers being exposed to
harsh winter weather or worse, Arctic conditions, for a good portion
of the year. Passenger survivability is not limited to Halifax and is a
serious issue in our Canadian controlled airspace of 18 million km2
including Gander Oceanic ATC and much of the Arctic, along with
possible incidents arising at our airports. We need to examine aviation
passenger survivability more closely, and develop the necessary protocols to have equipment available, including ground transportation, to
minimize passenger exposure to the elements. Better planning needs
to be in place to respond to the unthinkable, but possible, especially
around airport runways where accidents are most likely to take place.
The AC 624 incident at Halifax provides the catalyst to think
about how we can enhance passenger survivability after a crash, with
time being of the essence to reduce survivors’ environmental exposure
and to speed up access to emergency medical care. Canada should use
the AC624 incident to rethink the adoption of state-of-the-art technology to help prevent such accidents, and to improve emergency
preparedness. We will be a safer and better country for this.
Joe Spears is a safety consultant, maritime barrister and Managing Directorl of the Horseshoe Bay Marine Group, West Vancouver,
Canada. He has acted as legal counsel and consultant for Transport
Canada and developed and delivered the National Marine Investigation course. He has assisted the National Search and Rescue
Secretariat on Arctic search and rescue He learned to fly at Halifax
International Airport was involved in the startup of Cougar Helicopters. He can be reached at kjs@oceanlawcanada.
sailings1061 2015-04-24 2:00 PM Page 51
April 27, 2015 • Canadian Sailings • 51
sailings1061 2015-04-24 2:00 PM Page 52
CN announces $500-million capital program to
upgrade Western Canada feeder rail lines
N announced a multi-year program
to invest approximately C$500 million in infrastructure improvements
to its Western Canada feeder rail lines in
Alberta, Manitoba, and Saskatchewan that
are handling rising volumes of industrial
products, natural resources, and energyrelated commodities.
In 2015, CN will allocate approximately C$100 million for work on northern
Alberta branch lines, investing in infrastructure upgrades and safety improvements,
including heavier rail, crushed rock ballast
and new ties, to ensure the network can
efficiently accommodate future freight
volume growth in the Peace River region.
Claude Mongeau, President and CEO, said:
“CN sees significant long-term potential in
its customer base located on its Western
Canada feeder network. We want to provide our customers with the capacity for
continued efficient freight transportation
services that increase their competitiveness
in North American and global markets, as
well as ensure our rail infrastructure is as
safe as possible.”
Photo: CN
C
CN continues to see rising freight volumes in Western Canada, which have
increased by more than 50 per cent in the
past five years. Given this growth, CN has
also invested significantly in its EdmontonWinnipeg main line corridor, installing
sections of double track, extending sidings
to accommodate longer more efficient
trains, and improving major classification
yards. CN’s major investments in Western
Canada are designed to increase the capac-
ity and safety of its rail infrastructure and to
allow the company to continue to grow at
low incremental cost in support of Canada’s
trade.
Mongeau concluded: “CN believes
that commercial principles and a stable regulatory environment are essential to support
rail infrastructure investment and maintain
Canada’s safe, efficient and well-functioning
rail transportation marketplace in the
future.”
CN locomotive engineers in Canada ratify new
labour agreement
N announced that locomotive engineers in Canada represented by the
Teamsters Canada Rail Conference
(TCRC) union have ratified a new collective agreement with the company. The
three-year agreement retroactive to Jan.
1, 2015, provides wage increases and
C
benefit improvements to approximately
1,800 locomotive engineers.
Jim Vena, CN Executive Vice-President and COO, said: “We are pleased with
the TCRC members’ ratification of this
new labour agreement, which was bargained by the parties in February 2015
without the threat of labour disruption.
With this ratification, CN has concluded
its current round of collective bargaining
in Canada and remains focused on delivering solid service to our customers and
acting as a true backbone of the economy.”
Evergreen Shipping Agency (America) Corp. names CN
2014 Railroad Company of the Year
vergreen Shipping Agency (America) Corp. has named CN as
its 2014 Railroad Company of the Year in recognition of CN’s
“consistent high level of performance.”
Evergreen Shipping Agency (America) Corp. serves as North
American General Agent for Evergreen Line. Evergreen is a global
ocean carrier that serves all continents with container ships.
Among its many trade routes, Evergreen Line is the major containerized shipping company serving the east coast of Asia and
west coast of North America. The company operates more than
150 container ships calling on 240 ports worldwide in about 80
countries.
Roy Amalfitano, President of Evergreen Shipping Agency
(America) Corp., said: “CN’s consistent high level of performance,
E
52 • Canadian Sailings • April 27, 2015
particularly in comparison to its competitors, has earned it this
recognition. Evergreen appreciates and recognizes CN’s excellence
in quality, service and support. We thank CN and its employees
and encourage the company to continue to provide the quality of
service that we are recognizing now and going forward.”
J.J. Ruest, CN’s Executive Vice-President and Chief Marketing
Officer, said: “CN is honoured by Evergreen’s award, which recognizes our clear focus on supply chain collaboration and making our
mutual customers more competitive in their end markets.”
Evergreen Line discharges and loads containers for CN at Port
Metro Vancouver. CN hauls Evergreen Line traffic between the
port and major markets in North America, including Toronto,
Montreal, Chicago and Detroit.
sailings1061 2015-04-24 2:00 PM Page 53
Carriers can’t stop the rot: box shipping rates continue
to hit new all-time lows
BY MIKE WACKETT
pot rates on the main east-west tradelanes suffered further serious
losses with carriers seemingly powerless to stop the rate rot,
despite a desperate strategy of blanked sailings and announcing
massive general rate increases.
Indeed, the Shanghai Containerized Freight Index (SCFI) shows a
sea of red numbers, with both Asia-Europe and Asia-US sectors losing
ground – the latter actually losing more than the previous week’s $600
per 40ft GRI between Asia and the U.S. west coast. The $309 per 40ft
plunge on the SCFI’s USWC index is a disaster for carriers trying to conclude last-minute annual service contracts with shippers to start on 1
May.
Asia-Europe SCFI spot rates tumbled another $45 per TEU to
$399 for North European ports and by $56 to $607 per TEU for
Mediterranean destinations. Here, shippers that have already agreed
new contract deals with carriers for 1 January, when spot rates were
around 60 per cent higher, will be under pressure from their boards to
tear them up and demand a better deal.
They are unlikely to lose too much sleep over the ethics of reneging on contract volumes, given the current practice of carriers to blank
sailings at relatively short notice and force them to seek other options
to fulfill their supply chain requirements. Increasing numbers of shippers between Asia and North Europe are telling The Loadstar they are
cutting deals with at least six carriers, rather than just the two they
S
might have signed with previously, in order to protect themselves from
the random blanking of sailings. And in certain cases, contracts are
with two carriers from each alliance in case the voyage-voiding
becomes so intense that they are forced to fight for availability of space.
Having lost the plot on their rate restoration strategy – the March
and April GRIs gaining little traction – a fresh rally is now being prepared by carriers for 1 May GRIs. The most extreme examples seen by
The Loadstar come from OOCL, for Asia-Mediterranean, with a
$1,200 per TEU hike, while for North Europe, newcomer UASC has
announced a $1,300 per TEU GRI.
Container freight broker FIS notes that the latter represents a massive 326 per cent increase on current market levels and questions the
sanity of the move. FIS’s Richard Ward said: “The sheer magnitude of
the increase is nothing short of ludicrous. “Even more telling is that carriers are unable or unwilling to manage supply for a long enough
duration that would help them to prop up rates for a prolonged period
and offer no significant or long-term relief.”
Meanwhile, a 9-per-cent year-on-year capacity overhang and a
weak post-Chinese New Year market have hit Asia-Europe carriers at
exactly the wrong time: as they anticipate the delivery of 60 new ultralarge container vessels with an average nominal intake of 15,000 TEUs
or above this year.
Reprinted courtesy of The Loadstar (www.loadstar.co.uk)
New study claims mega-boxships not as fuel-efficient
as those delivered 25 years ago
BY MIKE WACKETT
new study claims that containerships built in 2013 were, on
average, 8 per cent less fuel-efficient than those delivered in
1990, while cars and aircraft had shown significant improvements in the same period.
The study, commissioned by Brussels-based Seas At Risk environmental lobby group, challenges the claims of ocean carriers that
their ultra-large container vessels (ULCVs) are the most fuel-efficient
boxships ever built. It states that despite the lower unit cost benefit
from operating ULCVs, there is still a need for design improvements,
and that the IMO’s Energy Efficiency Design Index (EEDI) standards
for new ships should be reviewed and tightened accordingly.
Indeed, the ease with which newbuild designs are meeting the
EEDI (made mandatory by the adoption of the MARPOL amendment on 1 January 2013) is leading to pressure for tighter
regulations, thus forcing yards to build ships with more optimized
solutions and technologies. Seas At Risk, an association of non-governmental organizations, said it found from its first study into the
design efficiency of new ships that newbuild bulk carriers were the
least efficient in the commercial shipping sector, burning 10 per cent
more bunker fuel per km travelled than a quarter of a century ago.
For tankers and containerships, the average fuel consumption per
available tonne km was 8 per cent higher.
The detailed study, by research consultancy CE Delft, concludes that despite improvements in hull design and propulsion
efficiency in the past 25 years, the relative deterioration in efficiency
has more to do with the design of modern vessels. In fact, the race
to have the biggest containership in operation has seen the vessels
A
grow in beam rather than length in the past decade, in order to maximize their container capacity – thus the latest deliveries have
become, unkindly, known as the “fat ladies” in the industry.
Seas At Risk policy advisor and president of the Clean Shipping
Coalition John Maggs said: “Now we know we cannot rely on rising
fuel prices, other market forces or the good intentions of industry to
solve shipping’s climate problem. Instead, we need a clear and ambitious target for reducing ship greenhouse gas emissions, and legally
binding measures to get us there.”
However, the World Shipping Council points to research showing that shipping produces fewer exhaust gas emissions for each
tonne transported over one kilometre than air or road transport. It
said: “There is little, if any, dispute about the fact that shipping is the
most carbon-efficient mode of transportation.”
However, Bill Hemmings, clean shipping manager at the Transport & Environment division of Seas At Risk, said: “The truth is out.
Aircraft and cars have become more fuel efficient, but despite a generation of technological improvements, ships have largely gone
backwards for most of the past 25 years. “The IMO’s design efficiency standard for new ships itself needs a redesign, and
strengthening of the standard is not supposed to merely bring us
back to levels achieved 25 years ago.”
According to the report, fuel efficiency has improved by 20 per
cent for cars during the period and by 7 per cent for aircraft, but has
stagnated for heavy goods vehicles, about which it said there had
been “no visible progress since 1990”.
Reprinted courtesy of The Loadstar (www.loadstar.co.uk)
April 27, 2015 • Canadian Sailings • 53
sailings1061 2015-04-24 2:00 PM Page 54
Donning of the Top Hat marks beginning of 2015
season at Port of Hamilton
he ﬁrst vessel of 2015 arrived in Hamilton Harbour in the
early hours of April 6, marking the beginning of the 2015
shipping season at the port. MV Pacific Huron arrived carrying a load of steel coils from Spain and Italy, to be unloaded at
Federal Marine Terminals’ facility at Pier 12. Port of Hamilton welcomes more than 600 vessels each season, which runs through the
end of December. Hamilton Port Authority (HPA) ofﬁcials greeted
the vessel, presenting Captain Oleg Yarovoy with the ceremonial
Top Hat, as part of an annual Port tradition. Port ofﬁcials are optimistic about the 2015 shipping season.
“We had a slightly late start as a result of the icy winter, but we are
ready for a busy year now that we’re rolling,” said HPA President &
CEO Bruce Wood. “As the season’s inaugural shipment illustrates,
ﬁnished steel is a critical component of the Port’s total cargo tonnage.” More than a half-million tonnes of ﬁnished steel transited the
Port of Hamilton in 2014, feeding a robust domestic manufacturing
sector. The outlook remains strong for 2015.
Other cargoes continue to increase as a proportion of the total.
For example, agricultural commodities now make up 19 per cent of
the Port’s tonnage, up from 10 per cent in 2009. This increase has
been the result of substantial investments in terminal capacity.
“Together with our tenants, we are investing heavily in terminal
facilities to handle a wide range of cargo types,” said Bruce Wood.
The Port has attracted close to $300 million in investment in recent
Photo: Hamilton Port Authority
T
Hamilton Harbour Master Vicki Gruber with Captain Oleg
Yarovoy on the bridge of MV Pacific Huron, at the port of
Hamilton.
years, including new asphalt cement, fertilizer and grain terminals. The largest Canadian port on the Great Lakes, the port of
Hamilton handles 28 per cent of all of the cargo that travels through
the Great Lakes-St. Lawrence Seaway.
Port of Oshawa welcomes first international vessel of
the season
n April 20, Port of Oshawa ofﬁcially welcomed its ﬁrst international vessel, MV Marbacan, at a special Top Hat
ceremony, kicking off a new shipping season, and what is
expected to be a pivotal year for the Port.
“With a new $2.5-million cargo pad and new multi-million dollar
rail spur set to open this spring, the Port is well positioned to serve current customers and new businesses like never before,” said Donna
Taylor, President and CEO of Oshawa Port Authority. “These investments in port expansion support our local companies and beneﬁt the
entire region.”
Taylor presented Captain Sergii Prokopenko, Master of MV Marbacan, with the traditional top hat during a special ceremony attended
by local elected and industry ofﬁcials. MV Marbacan arrived from Portugal to ofﬂoad more than 17,000 tonnes of steel rebar to be used in
building construction in Durham Region and the GTA.
Steel is the Port’s leading cargo, with 167,000 tonnes imported
through the port in 2014, up signiﬁcantly from over 94,000 tonnes
handled in 2013. “Last year was a year of growth and expansion for
the Port, and it’s already paying off,” said Gary Valcour, Chair of
Oshawa Port Authority. “This season is just getting started, and we’ve
LO G I S T I C S
I n c
LCL OCEAN & AIR CARGO
CARIBBEAN, CENTRAL AND SOUTH AMERICA
Tel.: (514) 636-6333
www cargosdi.ca
Fax.: (514) 636-5783
E-mail: [email protected]
54 • Canadian Sailings • April 27, 2015
Photo: Oshawa Port Authority
O
From left to right: Gary Valcour, Chair of Oshawa Port
Authority; Captain Sergii Prokopenko, Master of MV
Marbacan; and Donna Taylor, President and CEO of Oshawa
Port Authority
succeeded in attracting new customers and creating new jobs.”
The ﬁrst international ship to enter the Port of Oshawa through
the St. Lawrence Seaway is honoured each year, during a special ceremony and presentation of the lucky Top Hat. This tradition began
back in 1829, when the ﬁrst ship entered the newly created Welland
Canal, and the prestigious Top Hat was presented to the captain as a
symbol of good luck.
sailings1061 2015-04-24 2:00 PM Page 55
Morterm receives season’s first salty in the port of
Windsor
n April 10th the ﬁrst ocean-going
vessel (salty) of the year arrived into
the port of Windsor, kicking off the
long-anticipated 2015 shipping season,
which started a week later than normal due
to heavy ice conditions in the Great Lakes.
MV Floragracht – 137 metres long and 19
meters wide – docked at Morterm Limited
where crews discharged her cargo, before
she continued her voyage into Lake Erie.
“It’s always a bit of a celebration when
the ﬁrst salty arrives. We like to welcome
the Captain and his crew to our port as a
gesture of goodwill,” said Peter Berry, Harbourmaster. “Having Morterm, the only
general cargo terminal at the port, as part of
our port landscape is critical. Morterm has
made signiﬁcant investments into specialized cargo handling equipment over the
years, and its experience makes this terminal a premier Midwest distribution point for
wind components as well as steel and bulk
cargo.”
“The ﬁrst salty is symbolic for
Morterm and for the community,” says
Teresa Boutet, Vice-President of Morterm.
Photo: Windsor Port Authority
O
“Not only does it let us know spring is
ﬁnally here, but it marks the arrival of vital
materials for local businesses, and the start
of another work season for our longshoremen, stevedores, truckers and businesses
that depend on the Terminal.”
Fringe benefits to air freight throttle back as U.S.
west coast port congestion eases
BY ALEX LENNANE
he impact on air freight from the
west coast port congestion is beginning to ease off, although
forwarders are reporting that capacity
remains tight between Asia Pacific and
the U.S.
The ports of Los Angeles and Long
Beach broke container volume records in
March – the latter saw volumes rise 32
per cent, while Los Angeles enjoyed a
17.3 per cent rise as they work through
the backlog of cargo. But a senior European air freight forwarder told The
Loadstar that air cargo was still benefitting
from the continued west coast congestion.
“There is still a four to six-week backlog
and we are still seeing an effect on the
supply chain from Asia Pacific,” he said.
“We are still finding some capacity constraints on flights to New York, Chicago,
Dallas and also Miami, to a certain extent.
Some of our Asian offices are using Europe
as a transit hub for flights into the U.S.”
Cathay Pacific announced its figures
for March which, while strong on the
T
transpacific, showed a return to more
normal volumes, something it attributed
to weakness in Europe. Combined with
sister airline Dragonair, the Hong Kong
carrier saw revenue tonne km rise 2.4 per
cent on a 1.5 per cent increase in volumes. “Air freight demand was generally
robust throughout March, helped by the
month-end and quarter-end production
rush out of the key manufacturing cities in
Mainland China,” said Mark Sutch,
Cathay’s general manager cargo sales &
marketing. “Once again the main focus of
our business was on the transpacific lanes,
with traffic into and out of North America
spurred by the continuing congestion in
sea ports on the west coast of the US.
Demand to Europe remained below
expectations, with business affected by
the ongoing economic woes and the
depreciation of the euro.”
The west coast port backlog is
expected to be cleared by mid-May,
according to market sources. Port of Los
Angeles Executive Director Gene Seroka
said: “March container volumes were
robust as our terminals worked aggressively to clear the backlog of vessels. The
number of ships waiting at anchor has
reduced significantly, labour levels are
strong and our container terminals are
extremely active. We continue to work on
a series of initiatives to improve efficiencies throughout the supply chain.”
In a statement, Port of Long Beach
noted it was also trying to solve its congestion problems. “March numbers increased
after terminal operators and dockworkers
agreed to a tentative contract settlement
at the end of February. At the same time,
a new system to pool the chassis truckers
use to haul cargo was launched to ease
equipment shortages. “Activity ramped up
as the terminals and labour force significantly cleared the backlog of cargo that
had built up over several months of congestion.”
Reprinted courtesy of The Loadstar
(www.loadstar.co.uk)
April 27, 2015 • Canadian Sailings • 55
sailings1061 2015-04-24 2:00 PM Page 56
Oceanex Inc. named as one of Canada’s Best Managed
Companies Gold Standard Member
ceanex Inc. was named one of Canada’s Best Managed
Companies Gold Standard Member in 2014 for excellence
in business performance. This prestigious national award is
sponsored by Deloitte, CIBC, National Post, Queen’s School of Business and MacKay CEO Forums, and recognizes Canadian owned
and managed companies with revenues over $10 million for sustained growth, ﬁnancial performance, management practices and
the efforts of the entire organization.
“I would like to congratulate Oceanex Inc. and its entire workforce. Achieving this standard of excellence takes a united effort
from a dedicated team,” said Peter Brown, National Co-Leader of
Canada’s Best Managed Companies Program and Senior Practice
Partner, Deloitte.
The 2014 winners of the Canada’s Best Managed Companies
award, along with the Gold Standard winners, Requaliﬁed and Platinum Club members were honoured at the annual Best Managed
gala in Toronto on March 31, 2015. On the same date, the Best
Managed symposium addressed leading-edge business issues that are
key to the success of today’s business leaders.
“I am indeed very proud of our team of experienced and
knowledgeable employees”, said Oceanex Executive Chairman,
Captain Sid Hynes. “Achieving the Gold Standard of this award is
truly a testament to their efforts. Oceanex employees are focused on
working safely while achieving an exceptional standard of performance and providing reliability for our customers!”
Every year since the launch of the program in 1993, hundreds
of entrepreneurial companies have competed for this designation in
a rigorous and independent process that evaluates their management skills and practices. The awards are granted on four levels: 1)
Best Managed winner; 2) Requaliﬁed member; 3) Gold Standard
winner; 4) Platinum Club member (winners that maintain Best
Managed status for a minimum of six consecutive years).
Photo: Oceanex
O
From left to right: Matthew Hynes, Executive Vice-President;
Captain Sid Hynes, Executive Chairman; and Steve Bilas
Vice-President, Marketing & Sales
FedEx and TNT Express agree to merge
edEx Corporation and TNT Express N.V. announced their intention to merge through an all-cash offer for all issued of TNT
Express for a cash offer price of €8.00 per share in a transaction
valuing TNT Express at an implied equity value of approximately €4.4
billion ($4.8 billion). The Offer Price represents a premium of 33 per
cent over the closing price of 2 April 2015 and a premium of 42 per
cent over the average volume weighted price per TNT Express Share
F
ODYSSEY SHIPPING
Africa – Asia – Australia – Middle East – Europe –
South America – United Kingdom
Weekly LCL Service
Online Bookings 24/7
www.odysseyshipping.com
Tel.: (514) 631-2880 Toll Free: 1-877-631-2880
Email: [email protected]
56 • Canadian Sailings • April 27, 2015
of €5.63 ($6.14) over the last three calendar months.
Frederick W. Smith, Chairman and CEO of FedEx Corp., said:
“We believe that this strategic acquisition will add signiﬁcant value for
FedEx shareowners, team members and customers around the globe.
This transaction allows us to quickly broaden our portfolio of international transportation solutions to take advantage of market trends –
especially the continuing growth of global e-commerce – and positions
FedEx for greater long-term proﬁtable growth.”
Tex Gunning, CEO of TNT Express, said: “This offer comes at a
time of important transformations within TNT Express and we were
fully geared to executing our stand-alone strategy. But while we did
not solicit an acquisition, we truly believe that FedEx’s proposal, both
from a ﬁnancial and a non-ﬁnancial view, is good news for all stakeholders. Our people and customers can proﬁt from the true global
reach and expanded propositions, while with this offer our shareholders can already reap beneﬁts today that otherwise would only have
been available in the longer run.”
The combined companies would be a strong global competitor in
the transportation and logistics industry, drawing on the considerable
and complementary strengths of both FedEx and TNT Express. The
combined companies’ customers would enjoy access to a considerably
enhanced, integrated global network. This network would beneﬁt
from the combined strength of TNT Express strong European road
platform and Liege hub and FedEx’s strength in other regions globally,
including North America and Asia. TNT Express customers would also
benefit from access to the FedEx portfolio of solutions, including global
air express, freight forwarding, contract logistics and surface transportation capabilities.
FedEx and TNT Express are confident that FedEx will secure all
relevant completion approvals as soon as practicable. The combination
of FedEx and TNT Express is not expected to raise antitrust concerns,
principally as a result of the strengths of competitors in relevant markets. FedEx and TNT Express anticipate that the Offer will close in the
first half of calendar year 2016.
Almost three years ago to the day, UPS announced its intention
to purchase TNT Express in a $6.8 billion deal that was scuttled
almost a year later by the European Commission. However, FedEx has
a smaller European business which allowed it to express confidence
that it will achieve regulatory approval. The deal has been underpinned by a strong dollar that has given FedEx the opportunity to
purchase a quality business at an attractive price. Also, TNT’s share
Photo: Wikipedia
sailings1061 2015-04-24 2:00 PM Page 57
price had declined as a result of stagnant revenues and financial losses
reported for 2013 and 2014. With FedEx recognized as a strong operator, FedEx clearly has the necessary expertise to affect a business
turnaround on the TNT side of the combined business, and will insist
on maximum synergies to be achieved.
MOL Liner Ltd. and MOL Asia Ltd. announce senior
management personnel changes
MOL Liner Ltd. and MOL Asia Ltd. announced the following
changes in their senior management:
Richard Hiller, currently the Executive Vice-President of
Transpacific trade management at MOL Liner, becomes Chief of Commercial at MOL Liner. At the same time, Rich assumed the role of
Deputy Managing Director at MOL Asia, as well as General Manager
of Sales and Customer Service to assist Managing Director, Mitsujiro
Akasaka of MOL Asia. He will report to Yutaka Hinooka, Chief Operation Officer of MOL Liner and Mitsujiro Akasaka.
Sundeep Sibal, currently Regional Managing Director, Association of Southeast Asian Nations (ASEAN) South region, becomes Senior
Vice-President at MOL Liner, Transpacific trade, and will report to
Chief Operation Officer Yutaka Hinooka.
Colin De Souza, currently Senior Vice-President of MOL
Europe, Transatlantic and Europe-Africa trade, assumes the role of
Regional Managing Director, ASEAN South region. Colin will report to
managing director, Mitsujiro Akasaka of MOL Asia.
Johan Van de Peer, currently Assistant Vice-President of MOL
Europe, Asia Europe trade, has been promoted to Vice-President at
MOL Europe and assumes responsibility for the Transatlantic and
Europe-Africa trade.
James Galligan, currently Director at MOL Asia Ltd. has been
appointed to the position of Vice-President of MOL Liner and assumes
responsibility for Transpacific pricing.
James Boyer has been appointed to the position of Vice-President, refrigerated cargo services, reporting to Sundeep Sibal, Senior
Vice-President of MOL Liner, Transpacific trade. James will oversee the
refrigerated cargo services for Transpacific, Transatlantic and Latin
trades.
Tom Smart has been appointed to the position of Vice-President,
Transpacific Export trade management, reporting to Sundeep Sibal,
Senior Vice-President of MOL Liner, Transpacific trade.
Toshiya Konishi, Chief Executive Officer, MOL Liner, said, “I am
optimistic that these changes will strengthen MOL Liner and MOL Asia
into solid organizations, strengthening our commercial portfolio, as
well as partnerships, to achieve business process innovations that all
customers and employees can further count on .
MOL (Canada) Inc. appoints Mr. Allison Watson as Sales
and Customer Service Manager
MOL (Canada) Inc. is pleased to welcome Allison Watson as its
new Sales and Customer Service manager, domiciled in Halifax, Nova
Scotia. He will report to Tim Harrington, Vice-President, Canada and
will focus on Eastern Canada and sales activities for Atlantic Canada
supported by colleagues in Mississauga and in Lombard, Illinois, U.S.
Watson joins MOL after 27 years at NYK Line (Canada) where he
served as a district manager of sales (6 years) and a district manager
responsible for the Halifax branch office (21 years). Watson also spent
five years at March Shipping Ltd. as an export coordinator and office
manager.
Me Eric Simard appointed to the Board of Directors of
Montreal Port Authority
Michel M. Lessard, Chairman of the
Board of Directors of Montreal Port
Authority (MPA), has announced the
appointment of Me Eric Simard as a Director of Montreal Port Authority. Me Simard
was appointed to this office by the City of
Montreal for a three-year term ending
March 23, 2018.
Me Simard is a partner with the law
firm Fasken Martineau and co-president of
the Commercial Litigation section. He also
leads the Construction Practice Group. He
practices law as a civil and commercial litigant. He is a regular guest lecturer in his
field and has also published numerous articles. The prestigious Chambers Global
directory recognizes him as one of the
leaders in his field of expertise in Canada.
Me Simard is a member of the Quebec Bar,
the Canadian Bar Association and the
Board of Trade of Metropolitan Montreal.
April 27, 2015 • Canadian Sailings • 57
sailings1061 2015-04-24 2:40 PM Page 58
UPCOMING EVENTS
Contact FRANCE NORMANDEAU [email protected]
May 6
May 27-29
SHIPPING FEDERATION OF CANADA
14th Annual Conference
Ritz Carlton Hotel, Montreal
Contact: 514-849-2325 ext. 221, Farah Ahmad
[email protected]
www.shipfed.ca
GREENTECH 2015
Renaissance Seattle Hotel, Seattle, Washington
Contact: 206-409-3943, Eleanor Kirtley
www.green-marine.org
May 7
CIFFA
66th Annual General Meeting & FCA Gala Dinner
Mississauga Convention Centre, Mississauga
Contact: 416-234-5100 x232, Nick Lutz
[email protected]
www.ciffa.com
May 18-21
BREAKBULK EUROPE 2015
Antwerp Expo, Antwerp, Belgium
Contact: 973 432-5535, Adrian van Beuningen
[email protected]
www.breakbulk.com
May 19-21
PORTSECURE MONTREAL
Hyatt Regency Montreal, Montreal, Quebec
Contact: 902.425.3980, Megan Pothier
[email protected]
www.portsecure.ca
June 8
TRAFFIC CLUB OF MONTREAL
Spring Golf
Rosemère Golf Club
Contact: 514-874-1207, Richard Parent
[email protected]
www.tcmtl.com
June 12
CANADIAN INTERNATIONAL FREIGHT FORWARDERS
ASSOCIATION – EASTERN REGION (CIFFA)
FCA Gala Dinner
Plaza Volare, Montreal
Contact: 416-234-5100 x232, Nick Lutz
[email protected]
www.ciffa.com
June 13
THE GRUNT CLUB
Family Picnic
Angrignon Park, Lasalle, Quebec
Contact: 514-694-2164, Ted Blaize
[email protected]
www.gruntclub.org
June 13
May 21
TRAFFIC CLUB OF MONTREAL
18th Annual Lobster & Crab Party
Alexandra Dock, Iberville Terminal, Port of Montreal
Contact: 514-874-1207, Richard Parent
www.tcmtl.com
THE GRUNT CLUB
Spring Golf
Golf le Parcours du Cerf , Longueuil, Quebec
Contact: 514-694-2164, Ted Blaize
[email protected]
www.gruntclub.org
ADVERTISERS
Canadian Sailings is not responsible for errors. Please verify with event organizers for possible changes or cancellations.
BORDEN, LADNER, GERVAIS blg.com..................................... 9
BUREAU VERITAS verigates.bureauveritas.ca ........................... 30
CANADA STATES AFRICA LINE csaline.com........................... 24
CARGO NAVIGATORS carrib-trans.com .................................. 44
CARGO SDI cargosdi.com ...................................................... 54
CHINA SHIPPING chinashipping.ca ....................................... 32
CIFFA ciffa.com ..................................................................... 34
CN cn.ca ................................................................... 2, 14, OBC
CP cpr.ca ................................................................................22
CSL cslships.com .................................................................. 59
EL RORO elroro.com .............................................................. 44
EMPIRE STEVEDORING empirestevedoring.com...................... 16
FEDNAV Fednav.com ............................................................... 8
GILLESPIE-MUNRO gmunro.ca.............................................. 21
GREEN MARINE green-marine.org .......................................... 42
GROUPE LAFRANCE groupe-lafrance.com............................... 23
GT GROUP gtgroupinc.com......................................................25
GUY TOMBS guytombs.com ....................................................44
LOGISTEC logistec.com.......................................................... 12
58 • Canadian Sailings • April 27, 2015
MOL molpower.com ................................................................ 20
MONTREAL GATEWAY TERMINALS PARTNERSIP mtrtml.com 18
MSC (CANADA) msc.com ........................................................ 3
NAVAMAR navamar.com ......................................................... 29
NIRINT nirint.ca ..................................................................... 40
OCEAN groupocean.com ......................................................... 15
OCEANEX oceanex.com ......................................................... 19
ODYSSEY SHIPPING odysseyshipping.com..............................56
PORT OF MONTREAL port-montreal.com ............................ 5, 37
PORTSECURE portsecure.ca ................................................... 51
PROTOS SHIPPING protos.ca ................................................ 36
SEABOARD MARINE seaboardmarine.com ............................. 33
SHIPPING FEDERATION OF CANADA shipfed.ca ..................31
STOLT LNGAZ stoltlngaz.com ................................................. 46
SVITZER svitzer.com............................................................... 26
TERMONT MONTREAL termont.com ...................................... 10
WINDSOR SALT windsorsalt.com............................................ 27
ZIM ZIM.COM ...................................................................... 41
sailings1061 4/24/15 5:30 PM Page 59
Clean. Green. Safe. Smart.
The next generation of CSL self-unloaders and bulkers are setting new standards.
Inland-Coastal-Lake
Ship Operator
of the Year
cslships.com
sailings1061 2015-04-24 2:00 PM Page 60
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