BC Shipping News - May 2014

INSIDE: PATH: PORT ALBERNI’S LONG-TERM VISION

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

Volume 4 Issue 4

NEWS

www.bcshippingnews.com

May 2014

Industry Insight

Michael Davies Senior Director, Marine Development Kinder Morgan Canada Inc.

Tankers Galore

Syd Heal’s look at the tanker industry on the West Coast

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4 BC Shipping News May 2014

BC SHIPPING

Contents

NEWS

Cover Story

27 7 8 12

20

22

Editor’s note

By Jane McIvor

In brief

Industry traffic and news briefs

Industry insight

Above and beyond Michael Davies, Senior Director, Marine Development Kinder Morgan Canada Inc. Mike and the KMC team have gone above and beyond what’s necessary to ensure the continued safe transport of petroleum beyond the Westridge Marine Terminal.

History lesson Mail by catapult

By Lea Edgar

24

39

Environmental navigation

42

Legal affairs

Winnipeg’s CentrePort proving to be a trade magnet

By Ray Dykes

Tankers galore By Syd Heal

Marine fuel trends

Global marine fuel trends 2030

By Lloyd’s Register and University College London

Important changes to the Transportation Safety Board Regulations

By David S.Jarrett UBC SailBot team takes on the Atlantic Ocean

46 Technology

ADISTM — An evolution in marine safety

By Andrew Weir-Jones

48 Technology

A revolutionary advanced nanotechnology

By Barry Good

Ports & terminals II

Port Alberni’s PATH: Long-term vision will create new supply logistics chain

The urgent need for ocean data

By K.Joseph Spears

44 Training

Ports & terminals I

27 Tankers 31

May 2014 Volume 4 Issue 4

49

Maritime security

Maritime Security Challenges Conference to focus on Pacific seapower

By Jacquie Brower-Berkhoven

53 Books

Learn more...Seawaves Press books

33 Shipbuilding

New landmark for the North Shore: Vancouver Shipyard’s new gantry crane

12

34

Marine engineering

37

Green technology

The New Wave Conference primer By the Vancouver Island Branch of the Canadian Institute of Marine Engineering Carbon War Room and Green Marine share a common goal to advance cleaner technologies

By Julie Gedeon

33

On the cover: The Nave Ariadne is escorted by SMIT tugs in the Burrard Inlet (photo courtesy Kinder Morgan Canada Inc.). Above: Teekay Corporation’s Australian Spirit, a good example of the Aframax tanker typically seen on Canada’s West Coast (photo courtesy Teekay Shipping (Canada) Ltd.). Bottom right: Photo of Seaspan’s new gantry crane, courtesy of Dave Roels (www.daveroels.com).

May 2014 BC Shipping News 5

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May 2014 Volume 4/Issue 4

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

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Contributing Writers Jacqueline Brower-Berkhoven Michael Davies Ray Dykes Lea Edgar Barry Good Syd Heal Julie Gedeon David S. Jarrett K. Joseph Spears Andrew Weir-Jones Lloyd’s Register/University College London team: Dimitris Argyros, Carlo Raucci, Nagore Sabio and Tristan Smith Advertising and Subscriptions Jane McIvor Phone: 604-893-8800 / Email: jane@bcshippingnews.com Lesley McIvor (Advertising only) Phone: 604-893-8800 / Email: lesleymcivor@shaw.ca ANNUAL SUBSCRIPTION Canada Three Years $108.95 Cdn*

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6 BC Shipping News May 2014

EDITOR’S NOTE

Photos by Dave Roels, www.daveroels.com

Bright future ahead for UBC SailBot team

I

must admit — being a UBC alumni, I have a natural bias to be proud of the accomplishments of its students.

The UBC SailBot team however, are doing things that should make the entire Canadian marine industry proud.

This talented group of young adults are taking naval architecture and marine engineering to new levels (with the help of mentor Don Martin and some key support from the likes of Robert Allan Ltd., Seaspan Shipyards and STX Canada Marine) as they consistently meet each challenge and achieve nothing but success. You’ve likely heard they received a

perfect score in last year’s International Robotic Sailing Regatta — the only team to do so in the history of the event (including the U.S. Naval Academy and a host of entrants from universities across North America).

Now, they’re taking on the Atlantic Ocean in the Microtransat Challenge. So far, not one entrant has successfully completed the trans-Atlantic crossing with a fully autonomous sailing boat. Given the dedication and passion I witnessed when interviewing Kristoffer Vik Hansen and some of his team members, things bode well for their success.

I raise this in my editorial this month for two reasons: 1) it’s reassuring to see the intelligence and innovation coming up in this future generation of marine engineers and naval architects; and more importantly, 2) they need your support. They might have the brains, but they need the funding — corporate, personal or in-kind.

I urge you to contact Kristoffer and the UBC SailBot team to get involved. After all, who wouldn’t want to be associated with some of the brightest minds being produced for this next generation?

The whole story is on page 44.

— Jane McIvor

On the river...with Dave Roels Dave Roels puts his passion for marine photography to good use as he captures the workdays of Samson Tugs Captain Bob Olson and Ledcor Captains Gary Gibney, Rob Wilson and Wesley Klein. A full photo essay of their adventures can be found online at www.bcshippingnews.com.

May 2014 BC Shipping News 7

INDUSTRY TRAFFIC WCMRC receives Award of Excellence

W

estern Canada Marine Response Corporation (WCMRC) was presented with an Award of Excellence by Esri Canada for implementing a GIS strategy to improve operational efficiency with the Geographic Response Planning Tool (GRPT). As Canada’s only West Coast oil spill response organization that is certified by Transport Canada, the ability to manage assets and disseminate information in a timely manner is mission critical to response planning.

“Our vast response area requires us to not only co-ordinate vessels, equipment and personnel, but also to ensure that we can visualize where available assets are at all times. We recognized the valuable time lost converting information from existing documents onto maps and the advantage of having our area plans prepopulated into Esri’s mapping technology,” said Jocelyn Gardner, Response Readiness Co-ordinator, WCMRC. “The major benefit has been the creation of a shared and accessible repository to house all response information including assets, coastal resources, sensitive area locations and spill response information.”

John Shaw joins Capilano Maritime Design Ltd.

C

apilano Maritime is pleased to announce that John Shaw has recently joined the firm as Manager of Engineering. For the last six years, John was employed at Seaspan Shipyards where he played a leading role in the shipyard’s successful bid for a $2.6 billion contract for the construction of several non‐combat ships for the Government of Canada. He served as Technical Director for Thordon Bearings Inc. for many years during the development of their highly successful water‐lubricated bearing products. John also spent 12 years with Lloyd’s Register culminating in his position as Area John Shaw Manager for Eastern Canada where, among other duties, he was responsible for maintaining the ISO9001 Quality Assurance Program.

Capilano Maritime Design Ltd. is a naval architecture design firm based in North Vancouver, B.C. Capilano Maritime specializes in the design of commercial workboats including tugs, barges, crewboats, dredges, offshore supply vessels, marine construction vessels and ferries, as well as providing general consulting services to the marine industry. In its seventh year of operations, the firm is continuing to expand by adding key personnel from the ship building industry to augment their staff.

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8 BC Shipping News May 2014

06/03/2014 19:26:33

NEWS BRIEFS

VTF scholarships awarded with help from NIBC

I

n June of last year, the British Columbia Branch of The Nautical Institute (NIBC) entered into an arrangement with the Vancouver Transportation Foundation (VTF) to recommend students for a VTF Scholarship.

The NIBC immediately advertised this to eligible Nautical Sciences students at the Marine Campus of the British Columbia Institute of Technology (BMC), offering them an opportunity to apply for one of three $1,000 scholarships. The applicant had to submit a budget for the school year; a letter describing his or her experiences and aspirations; two references, including one relating to experience at sea; plus a copy of their most recent transcript of marks.

A panel, led by Rear-Admiral (Ret’d) Nigel Greenwood MNI, assessed the applications and submitted the names of the three successful applicants to the VTF for their approval.

On March 13, Captains Joachim Ruether MNI and David Whitaker FNI attended the Marine Campus along with Jim Kohnke, Secretary/Treasurer of the VTF. Jim was called up to present the VTF cheques to Cadets Dylan Fowler, Phoebe Gilday and Danny Lai. This was done in front of their classmates.

Afterwards, Captain Ruether, a Master with BC Ferries, addressed the students and explained the benefits of being a member of The Nautical Institute, passing along some great advice. He then presented the first annual NIBC book award to a top student in the second year of the four-year Nautical Science program. The book, Volumes 1 & 2 of the NI publication “Mooring and Anchoring Ships”, was presented to Cadet Phoebe Gilday.

Later, the three scholarship winners were asked to complete application forms for membership in The Nautical Institute.

The BC Branch is covering their costs for the first year.

The VTF is a British Columbia nonprofit society founded in 1994. A part of its mandate is to provide scholarships and bursaries for the benefit of students in pursuit of post-secondary education, with emphasis on areas of studies relative to transportation.

More about the Foundation can be found at www.vancouvertransportationfoundation.org.

Left to right: Captain David Whitaker, Cadets Dylan Fowler and Phoebe Gilday, Captain Joachim Ruether, Cadet Danny Lai and Jim Kohnke during the award ceremony for scholarships from VTF.

May 2014 BC Shipping News 9

INDUSTRY TRAFFIC BMT Fleet Technology Welcomes New President Nigel S. Greenwood

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

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

Customs Brokers • Steamship Agents Complete Import & Export Services Quality Service Since 1911 401-1208 Wharf St., Victoria, B.C. V8W 3B9 Tel: 250-384-1653 • Fax: 250-382-3231 E-mail: kingbros@kibro.com

B

MT Fleet Technology Ltd. (BMT), a subsidiary of BMT Group Ltd., the leading international maritime design, engineering and risk management consultancy, has announced the appointment of Darcy Byrtus as President.

Darcy joins BMT from General Dynamics Canada where he held the post of Director of Business Development for Naval Programs and Project Management.

There, he was responsible for the strategic planning, opportunity identification and pursuit for all naval programs and for the promotion of General Dynamics’ capabilities to the Canadian Department of National Defence.

With over 30 years’ experience in the management of defence projects, Darcy’s previous assignments included requirements analysis, design development and review, cost control monitoring and contract compliance.

With a dual Masters in Naval Architecture and Mechanical Engineering from MIT and a degree in Physics and Oceanography from Royal Roads Military College, he served in the Royal Canadian Navy as a Marine Systems Engineering Officer, a Ship Naval Architect and an Engineering Manager. Darcy is a member of the Project Management Institute, and a past President of the Ottawa Branch of the Canadian Institute of Marine Engineers.

Commenting on his new appointment, Darcy Byrtus said: “I am looking forward to working with the team at BMT Fleet Technology and its clients to continue delivering leading-edge engineering, research and management services to the defence, oil and gas and shipbuilding industries.”

Darcy Byrtus 10 BC Shipping News May 2014

NEWS BRIEFS

CLASSNK acquires maritime software house NAPA

L

eading classification society ClassNK agreed to acquire NAPA, the world’s leading maritime software house, in a deal hailed as benefiting the improved safety and performance of the whole maritime industry.

The acquisition will significantly enhance the success and capabilities of both organizations. For ClassNK, which has worked with NAPA for nearly 10 years, the landmark deal is a chance to expand and improve the wide range of services it offers to ship owners and shipyards, whilst also providing NAPA with the support to accelerate expansion of existing operations and access new markets.

ClassNK, which provides safety and certification services for more than 8,500 vessels representing more than 20 per cent of the world’s merchant fleet, and NAPA, whose software is utilized by shipyards designing over 90 per cent of the world’s newbuilds and by major ship owners, said the deal was a reflection of the growing importance of software technology in

improving ship design and operational efficiency.

Yasushi Nakamura, ClassNK Executive Vice President, commented: “For both shipyards and ship owners, safety and performance have never been more important. Over the many years we have worked with NAPA, we have seen firsthand the incredible benefits that ship designers and operators can achieve with innovative software solutions. From our work on ClassNK NAPA Manager to our work on ClassNK-NAPA GREEN, NAPA has shown us time and again the utmost importance they place on creating high quality, innovative tools that directly contribute to the development of the maritime industry.”

Juha Heikinheimo, President of NAPA Group, added: “After 25 years of growth into a company of 170 employees with presence in nine countries, NAPA has grown into the world’s leading maritime software house. After years of organic growth, we see today’s announcement as

Representing ClassNK (left): Tetsuya Kinoshita, Executive Vice President (standing) and Yasushi Nakamura, Representative Director, Executive Vice President (seated); representing NAPA Group (right): Juha Heikinheimo, President (standing) and Markku Riipinen, Chairman (seated). a huge opportunity to continue to expand NAPA in a way that reflects the increasing demand for software design and operational solutions.”

May 2014 BC Shipping News 11

INDUSTRY INSIGHT

Above and beyond

Michael Davies, Senior Director, Marine Development, Kinder Morgan Canada Inc.

P

oint of clarification: Kinder Morgan Canada (KMC) is not an oil production company. They are not a shipping firm nor do they own or charter any tankers. Technically, Kinder Morgan’s responsibility for the oil they move through the Trans Mountain Pipeline stops at the water. However, as you’ll see from our interview with Michael Davies, KMC and Mike’s team have gone above and beyond what’s necessary to ensure the continued safe transport of petroleum beyond the Westridge Marine Terminal in Burnaby, out of the West Coast and on to its final destination. While their main focus may be the pipeline, given their extensive work with organizations like the Chamber of Shipping of British Columbia, the Pacific Pilotage Authority and Green Marine, they are as much a part of the shipping community as any.

BCSN: Let’s start with some background on Kinder Morgan Canada and your operations on the West Coast.

MD: Kinder Morgan Canada operates the Trans Mountain Pipeline. It’s an oil pipeline that moves a wide range of petroleum products from Edmonton to West Coast markets. We also pick up a small amount of oil from North Eastern B.C. and Kamloops and move it to the Lower Mainland. We’re unique in the world in that we move everything from heavy oil 12 BC Shipping News May 2014

While their main focus may be the pipeline, given their extensive work with organizations like the Chamber...and Green Marine, they are as much a part of the shipping community as any. to blending products for gasoline that are highly refined. Not a lot of other pipelines do that with a single pipeline.

We bring oil from Alberta and Northeastern B.C. — some is delivered to the Chevron refinery (the last of several refineries in the Lower Mainland that the pipeline was originally built to serve). Other than the gasoline that’s produced from Chevron, we deliver the refined products that other companies are producing — gasoline and distilate products in Edmonton — and they’re delivered through our pipeline to distribution terminals in the Lower Mainland where some of the legacy refinery sites continue to operate as distribution terminals. Basically, if you live in the Lower Mainland of B.C., the gas that’s in your car came through our pipeline either in a refined form of gasoline or as oil that went through the Chevron refinery. We transport almost all of the motor fuel consumed in the Lower Mainland.

Trans Mountain also has a branch line that comes off the main pipeline at Sumas/Abbotsford and delivers crude oil

to the four large refineries in Washington State. Collectively, we provide a little less than a quarter of their feedstock — the majority of their oil comes by tanker from Alaska and other offshore sources.

That’s the system — it was built in 1953 originally out of Cold War concerns for energy security and supply for the West Coast and it’s the only pipeline that serves West Coast markets. The majority of oil pipeline infrastructure out of Alberta goes south and east into the U.S. Our dock, the Westridge Marine Terminal, is the only dock that is directly connected to a regulated pipeline — i.e., it’s the only direct access for producers in Canada to access the West Coast markets and the Pacific Rim. In terms of our operations, we provide transportation. We don’t develop, extract, or refine oil. Our part of the value chain is in the transportation side. We receive oil from producers, generally on the Alberta side and deliver to refiners and distributers. We don’t grow the wheat and don’t bake the bread — we’re very similar to a railway.

INDUSTRY INSIGHT BCSN: What about the family of Kinder Morgan companies? Could you provide a brief overview?

MD: We are one of five main companies within the Kinder Morgan family.

There is a large, natural gas transportation footprint in the U.S. plus a products pipeline network that moves refined products. There is a CO2 business that pumps CO2 out of depleted gas wells and then transports it for enhanced oil recovery in other wells. The fifth is the terminal operations and bulk handling. This includes Vancouver Wharves, which was acquired

by KM in 2007. It handles a wide variety of commodities — in this case, sulphur and other commodities. It’s an example of the kind of terminals which KM operates around North America, handing a wide variety of commodities. It fits with our business model of being a material handler and transportation provider.

Kinder Morgan is a large organization which gives us access to a lot of resources and allows us to draw on expertise across North America. Having said that, we operate quite independently, and the Trans Mountain Pipeline has a 60-year relationship with the communities and people of British Columbia and Alberta.

It’s the best of both worlds.

BCSN: What is your role in all of this?

MD: My focus is on the Trans Mountain Pipeline operations and I’m responsible for the marine aspects of the proposed expansion project. It involves a lot of work with communities downstream of the pipeline. I’m using the term “community” in a broad sense — the maritime community, local governments and communities along the shipping route, First Nations as well as other industries and environmental groups with a marine interest. We also include agencies and tribes from the Puget Sound area of Washington State.

It’s an interesting role — our strict regulatory obligations deal with the assets we operate and our primary responsibility within the transportation phase essentially ends at the terminal. We own the pipeline and we own the terminal and there are rules and regulations and obligations. When the vessels are loaded and leave our terminal, it falls into a different regulatory regime and although we’re not directly responsible for it, we’re very concerned that it be done well and hence our participation in the marine community.

My role on the project is about working

Responsible for the marine aspects of Kinder Morgan Canada’s proposed expansion project, Mike is often called upon to act as a spokesperson.

When the vessels are loaded and leave our terminal, it falls into a different regulatory regime and although we’re not directly responsible for it, we’re very concerned that it be done well... with all the other groups that carry on the next part of the transportation chain to make sure it’s done safely and with best practices in mind. We have, for a long time, worked very closely with Port Metro Vancouver, BC Coast Pilots and tug operators as well as organizations like the Chamber of Shipping of British Columbia to make sure that that part of the business — the shipping part — is done well.

BCSN: So while you’re not a “maritime” company per se, you still have a lot to do with the marine transport side of the product.

MD: Yes, when companies hire us to move oil for them, they pay for space in the pipeline. Part of the process in doing that, when they want it to be delivered to the Westridge Marine Terminal, is to propose a vessel to us that picks up the oil.

It’s the pipeline shippers — the producers, the refiners, etc. — that contract the ship.

We have a process to vet the vessel and inspect it but they are not Kinder Morgan ships.

Having said that, I’m always careful not to leave the perception that, because they’re not our vessels, we don’t care or that it’s someone else’s problem. We have a long history of participating in

the community. One of the things we’ve heard clearly from many communities along our shipping route is that they have concerns about increases in tanker traffic, safety, and emergency response.

Although the vessels and the products are not ours, we’re expected to be able to speak about them and as part of our proposed expansion project, to identify the effects increases in tanker traffic could have. We have done this and also recommended enhancements to both the local tanker safety regime and the spill response regime and included these recommendations in our project application to the NEB. BCSN: That’s an important distinction.

MD: Yes, especially when considering the regulatory regime. The National Energy Board regulates us in terms of not just the tolls and tariffs for the pipeline, but technical regulations like pipeline safety and construction — there is a very well-established regime around the pipeline and terminal side. Similarly, when the vessel is loaded, it falls under the Canada Shipping Act, and Pacific Pilotage Act, the Marine Liability Act, as well as Port Metro Vancouver’s rules. The safety regime in place today for both tanker traffic and May 2014 BC Shipping News 13

INDUSTRY INSIGHT the Westridge Marine Terminal has been developed and continually improved upon since the terminal entered service in 1953. The regime is based on regulatory requirements, local experience and international best practices. It is comprehensive, well established, and has proven to be safe and effective. Vessel traffic in the Salish Sea is well managed and important risk controls like vessel inspection, pilotage, and vessel traffic services (VTS) have been established for all traffic and for oil tankers in particular. Existing risk controls are considered to be state of the art compared to other coastal sailing routes worldwide and in line with global best practices. There isn’t anything that we directly control there but because we’re concerned that it’s done well, we are very active in that area.

We were one of the five original shareholders (in 1976) of Burrard Clean, now Western Canada Marine Response Corporation (WCMRC), which has transformed from the five-terminal co-op that focused on Burrard Inlet into one of four Transport Canada-certified Response Organizations across Canada. WCMRC

14 BC Shipping News May 2014

provides spill response services for all large vessels that come into Canada’s Pacific waters. If a vessel is over 400 gross tonnes (in the case of tankers, it’s 150 gross tonnes), it must have a Ship Oil Pollution Emergency Plan and an arrangement with a certified Response Organization — on the West Coast that’s WCMRC. BCSN: Before we get into the issues surrounding the Trans Mountain Pipeline Expansion Project, I’ d like to get a sense of the project itself — what sort of volumes and types of product are we talking about?

MD: Today, our pipeline has the capacity of about 300,000 barrels per day (or 49,000 tonnes). Based on allocation rules approved by the National Energy Board, about 75,000 barrels per day, or 10,500 tonnes, is allocated for the Westridge Marine Terminal today. The remainder is delivered to other land-based points like the refineries in Washington State and the different terminals here in the Lower Mainland. As mentioned, we carry everything from heavy crude to gasoline and highly refined distillates.

While we’re proposing an expansion of petroleum transportation, for the most

part, it remains within an existing footprint. We’re largely following the existing right of way for the pipeline — for about 73 per cent of the route. When it was built in the 1950s, the pipe was offset to one side — it was spaced so that a second pipe could be added within the same right of way. That said, in places where there has been a lot of development — particularly within the Lower Mainland — in order to minimize impacts to people and the environment, we are proposing alternative routes. On the marine side, we’re following the same shipping routes we use today for the traffic.

In early 2012, we went through a process called an “open season” to gauge interest from shippers (the companies that ship the petroleum products in our pipeline) in our expansion. In that process, we described both the technical and commercial aspects of our expansion and to get a sense of the volume and capacity required from all players in the industry who have indicated they would participate. We came out of that process with support to build a second pipeline that would increase capacity from our current 300,000 barrels per day (49,000 tonnes) to a system that could move about 890,000 barrels per day (or 124,600 tonnes).

Part of the process also included getting an idea of shippers’ expectations in terms of the kind of product they would want to move and the primary delivery point they would want. So the current 75,000 barrels per day (10,500 tonnes) that goes to Westridge is expected to increase to 630,000 barrels per day (just over 88,000 tonnes) and it will be the same type of product we’re currently shipping to the dock, which is heavy oil.

BCSN: What market is accounting for the majority of the increase? I’m assuming it’s the Asian market.

MD: It is representative of a shift toward Pacific Rim markets, not just Asia. People are often surprised to find out that, today, 80 per cent of what we move from the Westridge Marine Terminal is actually going to California. That state isn’t pipeline-connected to the rest of the continental U.S. — they have some indigenous supply, but the majority of their product is imported from Alaska and they also bring in oil from other offshore locations but there isn’t a pipeline supply. Today, generally, eight out of 10 of the ships that leave our marine terminal go to California, one goes to Asia and one goes elsewhere. In

the future, we can’t say for sure what the mix will be but both California and Asia will be important. But, it’s important to know that what’s driving the pipeline is largely demand for Canadian oil production to reach the West Coast so that it can reach Pacific Rim markets.

BCSN: How does the increase in volume translate to what we’ ll see in the harbour?

MD: The only thing that changes is the frequency and number of ships calling. It’s the same type of product, the same type of ship and the same routes being taken through the Second Narrows. Currently, the pipeline capacity allocation works out to about five tankers per month that call at the Westridge Marine Terminal. With the expansion, we are building the dock and infrastructure system to have the capacity to serve up to 34 tankers per month.

If you look at risk, it’s a combination of probability and consequence.

With our expansion, the potential consequences of a spill don’t really change, because we’re proposing to use the same size vessels and the same products as we do today. Whatever scenario of a problem with a tanker you come up with, those potential consequences exist today either from the 60 or so tankers calling at Westridge each year of the 600 or so tankers that call to other terminals in the Salish Sea each year. So the potential for an oil spill as well as the size and type of a spill doesn’t change. What changes is the increase in traffic, and therefore, the probability. However, with the additional marine safety measures proposed in the Application even though the number of tankers will increase, the risk of a credible worst-case scenario in the Salish Sea would be comparable to what it is today.

A number of traffic studies have been done that cover growth not just in tanker traffic but in shipping in general. There are about 6,000 large vessels a year that call into the Salish Sea, whether they’re going to Washington State or B.C. Of those, there are about 600 that are tankers and of those 600 tankers, 60 of them are calling at Westridge. That’s often a surprise to people. First, they’re surprised to find out that there are tankers in the Salish Sea at all and then they thought that our terminal was the only source.

In reality today, we’re a small part of the existing tanker traffic in the Salish Sea. The ships currently calling at Westridge Marine Terminal are Aframax size and May 2014 BC Shipping News 15

INDUSTRY INSIGHT that won’t change. If the expansion project is approved, the current five transits per month (so 60 per year) would increase to about 34 per month so on an annual basis, that would be about 350 transits.

BCSN: I’ve often heard in the mainstream press that the vessels would be bigger.

MD: Not for our project. Our Application in front of the National Energy Board (NEB) doesn’t call for dredging or increasing the size of the ship, as has been rumoured and reported by some.

As part of our Application, the effect of the increase in shipping falls within the scope of the NEB’s regulatory review and includes the effect of the increase on the environment, not just the regular coming and going of more vessels but also the potential for accidents and malfunctions.

To help inform that discussion within the NEB, we asked Transport Canada to conduct a TERMPOL review (“Technical Review Process of Marine Terminal Systems and Transshipment Sites”) of our project. As you know, TERMPOL

Endurable Designs

designs@ral.ca

RAmparts 2500

Ship Handling / Coastal Towing Tugs SMIT Fleet at Work

16 BC Shipping News May 2014

assesses the safety and risks associated with oil and gas tanker movements to, from and around Canada’s marine terminals. There is a prescribed set of studies that the proponent prepares and submits to Transport Canada who then strikes a panel of different federal agencies and they review the studies. The focus is really on the adequacy of existing regulations and infrastructure to accommodate the increase in shipping.

We conducted those studies and have submitted them to Transport Canada and the review is underway. One of the largest studies involved was the risk assessment which starts by looking at the shipping route itself. In this case, it is the well-established shipping lanes out of the harbour and through Georgia Strait, Boundary Pass and Haro Strait and then through the Strait of Juan de Fuca. The study looked at the design of the typical ship that would call — in this case the modern Aframax tanker — and it looks at traffic forecasts — not just the number of ships but the routes and where they go.

On top of that, we hired Det Norske Veritas (DNV, now known as DNV GL) to provide Authorization a risk model that predicts the probability of accidents that could result in an oil spill. Damage is simulated to the model of ship and they assess the leaks.

Building onJim:________________ that work from DNV GL, we also did spill modelling — if oil is released in particular areas along the shipping routes, where would it go and how quickly would it move around. There’s quite a bit Mike:_______________ of information in our Application around that and then finally, in terms of consequence, there’s an assessment of the possible environmental effects of those spills.

This is all Ken:________________ intended to provide the NEB with the information they need to weigh the benefits versus the potential consequences of the project.

Rob:________________ In addition to the study just mentioned, we asked DNV GL to determine, given the safeguards that are in place (for example, the pilotage rules, tethered tug escorts, existing navigation aids and inspections, etc.), what else could be introduced in our local regime that could reduce the level of risk even further. What they came back with and what we have recommended are basically three things: Today, there is a geographical gap for tug escorts — we have a great regime for tug escorts and it’s based on an assessment of the risk and reflects the traffic that’s here today. Through our work and

INDUSTRY INSIGHT the model from DNV GL, we are recommending having a tug accompaniment through two segments where escorts are currently not required — from English Bay to Boundary Pass and from Victoria outbound through — to reduce the risk of a drift grounding.

The second recommendation is to enact or have a policy of an exclusion zone around the vessel. Relative to other places in the world, we are not a terribly congested waterway today and there’s an awareness of tankers in the hierarchy of big shipping in terms of pilotage and vessel traffic services, but what we asked for was the creation of a policy that would have vessel traffic services operators and pilots working together to ensure an exclusion zone around the tankers. We’re still working with Transport Canada on the definition of what that would look like but the idea would be to have a broadcast that alerts other vessels that a tanker is in transit. The intent is to raise awareness of the tanker through their transit.

The third recommendation deals with spill response — so it’s reactive rather than proactive like the first two

Given that a tanker has about 12 separate compartments, there are very few incidents that you could create that would have a spill larger than the full load of 20,000 tonnes. recommendations. All of that risk process and information I just described — the trajectory modelling, etc. — was provided to WCMRC and we asked them to recommend enhancements that could be made to existing planning standards for spill response.

As you know, that is an area of much discussion already — the Province of B.C. has reviewed spill response as has the federal government through the Tanker Safety Expert Panel and it’s certainly something we’ve heard loud and clear in our consultations. I expect that there will be changes to the existing planning standards but they may not come in the same time frame as our regulatory hearing and we felt it was important to be in a position to describe how the existing regime and capacity that are in place today could be enhanced to better

EXAMINATION FOR

APPRENTICE MARINE PILOTS – COASTAL Examinations for Apprentice Marine Pilots will be conducted by the Pacific Pilotage Authority, in February 2015, to establish a list of applicants eligible to become Apprentice Pilots in Areas 2, 3, 4 and 5 (COASTAL WATERS) of the Pacific Pilotage Region.

Each applicant must be a Canadian citizen and be willing to undergo a medical examination to determine mental and physical fitness to perform the duties of a Pilot.

For information on Certification and Sea-time requirements, please refer to the Pacific Pilotage Regulations Sections 4 and 5. These regulations can be found on our webpage: www.ppa. gc.ca (under Corporate Information).

Applicants who believe they are qualified should submit a written request for an application form prior to 1530 hrs on Friday, June 6, 2014 to: Examination Director of Marine Operations Pacific Pilotage Authority 1000 - 1130 West Pender Street Vancouver, BC V6E 4A4 An information session on “BECOMING A COAST PILOT” will be held at the offices of the Pacific Pilotage Authority on Friday, May 28, 2014 at 1000 hrs.

Anyone considering this exciting vocation should attend this free session to get an understanding of the process. Please pre-register by emailing your name and phone number to infosession@ppa.gc.ca or calling 604-666-6771, extension 0.

accommodate the increased tanker traffic. So our Application describes what those enhanced planning standards could be and how those could be realized in terms of WCMRC capacity.

Today, Transport Canada requires WCMRC to have a maximum spill response capacity of 10,000 tonnes — they have capacity well in excess of that already so they go beyond the mandated requirements. In our Application, we have called for an additional tier to the four-tier system under the current regime and it would increase the response capacity from 10,000 to 20,000 tonnes. We based that on the risk assessment I mentioned earlier.

The basis is a “credible worst case”.

Given that a tanker has about 12 separate compartments, there are very few incidents that you could create that would have a spill larger than the full load of

MARINE PILOT FAMILIARIZATION PROGRAM The Pacific Pilotage Authority is accepting Expressions of Interest from qualified mariners interested in participating in a Marine Pilot Familiarization Program prior to examination as apprentice pilots. This program will run from August 2014 to August 2016.

Applicants must be Canadian citizens and willing to undergo a medical examination. For information on Certification and Sea-time requirements please refer to the Pacific Pilotage Regulations, Sections 4 and 5. The regulations can be found on our webpage: www.ppa. gc.ca under Corporate Information.

Qualified applicants who are interested in this program should apply in writing prior to 1530 hours on Friday, June 6, 2014 to: Familiarization Program Director, Marine Operations Pacific Pilotage Authority 1000 - 1130 West Pender Street Vancouver, BC V6E 4A4 Email: famprogram@ppa.gc.ca

May 2014 BC Shipping News 17

INDUSTRY INSIGHT The existing berth was built back in the early 1950s and is nearing the end of its economic life so it’s time for a new berth regardless of whether the project goes ahead.

20,000 tonnes. That’s not to say that WCMRC couldn’t respond to something bigger or even the incredibly unlikely scenario of a full loss of the vessel. They would be able to do that with mutual aid but in terms of capacity at the ready and what’s a realistic versus extreme case on how big a spill would be, that’s what we’ve recommended. And it’s not much different from other regimes.

There are lots of good practices already in place today and this isn’t to say that the system is lacking now — these are recommendations based on feedback from consultations and studies.

Another aspect of the spill response regime we address is the time for the response. Today, WCMRC is allowed up to 72 hours to cascade that current 10,000-tonne resource. They can do better than that already and the work that they did for us is based on responding in half the time — 36 hours.

We also introduced a concept that doesn’t exist today in the planning standards and that’s time to get to the spill — that is, to have an initial response mandate. The idea is that currently, there is a minimum time within the port and we’ve recommended that there would be an initial response with a minimum time that could contain a spill outside the port. We’ve suggested a six-hour timeframe.

These are the enhanced planning standards that were developed and then we asked WCMRC to go the next step and define, based on those planning standards, what this would look like in terms of boats, bases and equipment. This in turn led to what we described in the Application, which calls for five new bases: there is the main base in Burnaby today but in addition, we describe a base at Delta/Robert’s Bank area; the Nanaimo/Duncan area; Sydney; Sooke or Beacher Bay; and then one at Ucluelet. It’s a significant enhancement of the response capacity.

Overall, the recommendations would take capacity dedicated in the region — so just in the Salish Sea area — to about 30,000 tonnes. It would result in more employees and a much bigger WCMRC than what there is today and would be of benefit to the entire marine community.

In our Application to the NEB, we recognize that there needs to be more consultation around this. There are the recommendations from the federal panel on tanker safety, the TERMPOL review and even the NEB hearing as well as discussions with communities along the route that need to be taken into account, so we’ll be helping to facilitate those discussions. We’re trying to provide real, deliverable options for safety enhancements based on the work we’ve done, but also recognizing that these initiatives are broader than just our expansion project and will need input and collaboration with the marine community.

BCSN: What changes or upgrades are planned for the terminal to meet the increase?

MD: Today, we only have one berth at our Westridge Marine Terminal in Burnaby. We’re proposing to demolish that one and build three new berth spaces. The existing berth was built back in the early 1950s and is nearing the end of its economic life so 18 BC Shipping News May 2014

When not working on the pipeline, Mike enjoys being out on the water. it’s time for a new berth regardless of whether the project goes ahead. The main change is increasing from one to three.

Oil loading terminals like ours have a closed process for loading vessels. There are articulated loading arms that bolt onto the ship and there are joints in them that allow for movement of not just tides but the vessel and increasing the draft as it is loaded.

We also have a collection system to alleviate any odor issue, it gathers and combusts vapours from the tankers’ holds as they fill. In the future, we’ll have that system as well as a scrubber system to help manage the emissions from the vessel as we know air quality is an important issue for the community, particularly our neighbours in Burnaby.

BCSN: Could you describe measures taken when a ship calls?

MD: In addition to the requirements for vessel inspection under the Canada Shipping Act, all ships coming to our Westridge facility are vetted by KMC’s loading master — an individual with command experience on tankers this individual helps ensure the ship-side safety of our terminal operations.

First, he’ll do a desktop assessment based on submitted paperwork and then, when the vessel arrives, he goes on board and does a physical inspection to make sure it matches what has been presented. During the loading process — and this is somewhat unique to our terminal — the loading master will stay on board.

He is the ship side of our ship-shore communications. He’s on board to monitor the crew and assist them during the loading process and he has the ability to shut down the loading. He’s also there to help manage an emergency quickly. It’s a bit like a pilot but for the terminal operation and loading process.

In addition to that, the Westridge Marine Terminal is enclosed with precautionary boom (whether there’s a ship there or not) — when there is a vessel loading we have a primary boom around it. We also have additional boom and response equipment on site — some of it is ours and some is shared with WCMRC. With the new expanded berth — in addition to the three spaces for tankers, we’ll have utility dock space to allow tugs to rest or for WCMRC to moor spill response equipment.

Although we have planned a three-tanker berth, we wouldn’t normally expect to have three tankers there at a time. With up to 34 a month, you would typically see one a day, sometimes there might two and once in a while there might be three. Having the extra berth space will also allow us to reduce pressure on the

INDUSTRY INSIGHT four anchorages that are east of Second Narrows. It essentially provides two more spaces that aren’t there today.

BCSN: You joined the Green Marine program last year. Could you describe how that has contributed to your overall operations?

MD: Green Marine is a great program. We’re very supportive of it. It is our goal to work openly and co-operatively with

About Michael Davies

A

s Senior Director, Marine Development, Michael is working with the maritime community, government, first nations, and coastal communities to ensure the safety and efficiency of crude-oil transportation as it continues beyond the Trans Mountain system.

Of his role, Michael says, “After more than 20 years developing and operating pipelines, it’s interesting to be involved in another segment of the energy transportation chain.”

Michael’s involvement with tanker safety is part of a varied career with West Coast energy infrastructure, having held leadership roles in engineering, operations, and commercial development at Kinder Morgan and its predecessor companies.

Michael has worked in the energy sector since 1991 when he joined Terasen Gas. He spent the next 14 years working in various parts of British Columbia, primarily Vancouver. While working for Terasen, Michael held lead technical and commercial roles that included serving as operations director for Terasen Gas International (1997–2000), and as the company’s business development manager (2000–05) where he played a critical role in developing Terasen’s Mt. Hayes liquefied natural gas (LNG) facility.

In 2005, Michael moved to Calgary to work for Terasen Pipelines (later acquired by Kinder Morgan) and has served in dual roles as KMC’s engineering director and marine development director, a broad portfolio that included engineering and operations responsibilities, development of a damage prevention program, and leadership of a program to improve the safe, efficient transport of petroleum resources from the company’s Westridge Marine Terminal in Burnaby.

Michael serves on the board of Western Canada Marine Response Corporation. He is a past member of the Canadian Standards Association Technical Committee for CSA Z662 governing pipeline design and operation in Canada.

A Professional Engineer with a Mechanical Engineering degree from the University of British Columbia (1991), Michael also has a Master of Business Administration from Simon Fraser University (2001).

Born and raised on the West Coast but now Calgary-based, beyond company life, Michael enjoys outdoor pursuits with his family including fly-fishing, kayaking and rowing.

all stakeholders regarding environmental issues and we believe that the spirit of knowledge-sharing and partnership at the core of Green Marine is a great step towards continuous improvement.

We are currently benchmarking our operations against the Green Marine program and the next step will be an external audit.

BCSN: Mike, thanks very much for your time. BCSN

About Kinder Morgan and Kinder Morgan Canada Inc.

K

inder Morgan is the largest midstream and the third-largest energy company in North America. Then own an interest in or operate approximately 80,000 miles of pipelines and 180 terminals. They are publicly traded under companies including Kinder Morgan, Inc. (NYSE: KMI), Kinder Morgan Energy Partners, L.P. (NYSE: KMP), Kinder Morgan Management, LLC (NYSE: KMR) and El Paso Pipeline Partners, L.P. (NYSE: EPB).

Kinder Morgan has a large footprint of diversified and strategically located assets. For example, they are: • The largest natural gas pipeline and storage operator in the U.S. • The largest independent transporter of refined petroleum products in the U.S. • The largest independent terminal operator in the U.S. • The largest transporter and marketer of CO2 in the U.S. • The only oilsands pipeline serving the West Coast of Canada.

Kinder Morgan has more than 11,000 employees and has a combined enterprise value of approximately US$100 billion.

Kinder Morgan Canada Inc. operates a number of pipeline systems and terminal facilities in Canada including the Trans Mountain pipeline, the Cochin pipeline, the Puget Sound and the Trans Mountain Jet Fuel pipelines, the Westridge Marine Terminal, the Vancouver Wharves Terminal in British Columbia and the North Forty Terminal in Edmonton, Alberta.

KMC transports approximately 20 per cent of all liquid-petroleum products produced in Alberta to markets in western North America through its 1,296-kilometre network of pipeline systems.

A leader in the petroleum transportation industry, KMC received the 2008 Operators Award at the 7th International Pipeline Conference held in Calgary. This award is presented to a pipeline operator that effectively integrates technology, personnel, safety and regulations in its pipeline operations.

For more information, please visit: www.kindermorgan.com May 2014 BC Shipping News 19

HISTORY LESSON

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

Mail by catapult

By Lea Edgar Librarian/Archivist, Vancouver Maritime Museum

B

ack in the 1920s, flying an airplane non-stop across an ocean as large as the Atlantic was unheard of. At the same time, postal service by ship was a pretty slow process. So a marriage of sorts was formed to join the transatlantic ships with the faster airplanes. This took the form of launching small planes from the ships in order to deliver the mail faster.

Catapults were an ingenious way to overcome a lengthy runway that could take up a large portion of the decks. The use of catapults on ships started in 1912 and the first successful launch from a ship underway was completed on November 5, 1915

by LCDR Henry C. Mustin. Catapult development really took off after the military got involved during the First World War. Then, in 1927, the USS Leviathan successfully launched a mail plane from

The use of catapults on ships started in 1912 and the first successful launch from a ship underway was completed on November 5, 1915 by LCDR Henry C. Mustin. its decks without a catapult. However, the use of catapults for mail delivery was not truly attempted until 1928.

The first attempt was on the ocean liner Île de France. The catapult was installed at the stern and employed two CAMS 37 flying boats. The planes took off when the ship was within 200 miles of the coastline.

This method cut down the mail delivery time by one day. Following its success, the German line NDL (Norddeutscher Lloyd) was quick to attempt catapult mail on its two sister ships Bremen and Europa

A Heinkel He 12 on board the Bremen, October 1931. BArch, Bild 102-12384 / CC-BY-SA 3.0.

20 BC Shipping News May 2014

in 1929. Prior to this, in 1927, NDL carried a Junkers F-13 floatplane aboard the Lutzow to provide passengers with pleasure flights en route. In 1929, the line was really trying to take the Blue Riband from Cunard’s Mauretania and saw the planes as an added bonus that gained them worldwide prestige. Not only would they beat the Mauretania’s speed record, but also offer the world’s fastest air mail service between New York and Germany.

NDL joined forces with Lufthansa airline and the vessel Bremen made use of a Heinkel He 12 plane. The ship also had the Heinkel K2 catapult installed. The catapult was located between the funnels on the sun deck. It worked by using compressed air to push the plane mounted on a dolly along a runway measuring only 89 feet. Using this method, the plane would reach a maximum velocity of 105 miles per hour. Lufthansa also supplied the personnel to operate the planes.

On July 22, 1929, Captain Jobst von Strudnitz took to the air with 660 pounds of mail destined for New York. The plane took off from the Bremen at 248 miles from shore and arrived in just 2.5 hours.

When he landed in the harbour, he was met with a joyous celebration and the plane was christened ‘New York’. On the return trip, the plane was launched from the English Channel and travelled 600 miles to Bremerhaven, arriving over 24 hours ahead of the ship. The mail was then promptly flown on to Berlin. Eight

VANCOUVER MARITIME MUSEUM more flights were made in this manner during that inaugural year. After the initial success, approximately 32 flights were made each summer. The last catapult flight of the He 12 from the Bremen was in 1931. In 1930, the Europa was fitted with a more powerful catapult to accommodate the heavier He 58. Later, the ships were both fitted with Junkers 46 floatplanes. Finally, in 1934 NDL purchased six Vought V-85Gs to replace the Junkers. Nevertheless, it was soon decided that the program should be scrapped due to high operating costs.

In the 1930s, many major airlines were attempting to create a proper transatlantic mail service. In 1938, Lufthansa had its first successful non-stop flight across the Atlantic with a Focke-Wulf Fw 200 Condor long-range airliner that flew from Berlin to New York. They planned on having a regular service, however, those plans were postponed with the outbreak of the Second World War. The war brought about regular flights across the Atlantic and the notion of catapult mail was, at that point, old hat.

Although the era of catapult mail was

A Heinkel 58 on the vessel Bremen. (Image courtesy of Gerard P. Moran.) short-lived and quickly replaced with newer and more relevant technologies such as the Zeppelin and later transatlantic airmail, the invention remains an important marker in aviation, passenger vessel and mail service history. Today, pieces of catapult mail are actually highly collectable and the appeal of these items

Marine paintings, special commissions, talks, reproductions and books...

John M. Horton, Marine Artist

continues to prove the importance of this curious part of maritime and aviation history.

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

Canada’s Pacific Gateways A new book by Dr. W.B.M. Hick Canada’s Pacific Gateways is a lavishly-illustrated chronicle of trade and development on the West Coast. It is a history of dreams and vision, of political will and, at times, political expediency. Dr. W.B.M. Hick delivers a lively account of the people — the visionaries, financiers, and workers — who built the ports at Vancouver and Prince Rupert and the vital transcontinental rail corridors that serve them.  Order online at www.canadaspacificgateways.com | $39.99 (CAD)

“The Big Push” (24”x36”); oil on board. Contact us re availability.

This deep sea is being turned at the entrance to Vancouver Harbour by the then Cates tugs, a clear demonstration of the power of small docking tugs.

Art is an investment.

Call or email us to obtain that special painting.

(604) 943-4399 / john@johnhorton.ca www.johnhorton.ca

Untitled-1 1

May 2014 BC Shipping News 21

2/7/2013 1:14:42 PM

PORTS & TERMINALS Winnipeg’s CentrePort proving to be a trade magnet

By Ray Dykes

T

he inland terminal CentrePort Canada in Winnipeg is an idea whose time has come. A decade ago, talk of a tri-modal port facility in Manitoba might have caused a smirk or two. But, in 2009, CentrePort Canada was launched and its first five years have been an eye-opener.

Over 30 companies have built or are building new facilities on 187 acres within the inland port, which just happens to boast of being Canada’s only Foreign Trade Zone giving single-window access to significant tax and cost savings for foreign investors and businesses looking for new ways to bring their products to North America.

The pride in the development doesn’t stop there, either. Today, CentrePort is alongside Canada’s busiest air cargo airport, Winnipeg’s James Armstrong Richardson International Airport; has

CentrePort Canada is good news for Port Metro Vancouver and the Port of Prince Rupert as a significant amount of the goods are being funnelled to the West Coast ports. access to the seasonal but growing Port of Churchill to the north on the west coast of Hudson Bay; is open to three major Class 1 railways — CP Rail, Canadian National, and Burlington North Santa Fe; and has the geographic bonus of being in the middle of North America for trucking with two of Canada’s Top 10 trucking companies now headquartered there.

New expressway

A common-use rail facility is being built with its own industrial park. Last November saw the opening of the federalprovince jointly funded $212 million

CentrePort Canada in Winnipeg is developing a common-use rail facility and adjacent industrial park to improve connectivity.

22 BC Shipping News May 2014

CentrePort Canada Way, a 10-kilometre divided expressway — the largest highway capital project in Manitoba history — and the good news keeps on coming with the recent announcement of plans to double the expressway and link it directly to the Trans-Canada Highway.

At the head of the organization running things is a private-sector-led corporation, CentrePort Canada Inc., and its President & CEO, Diane Gray, who talks unashamedly of being at the centre of Canada. Its charge is to develop, market and promote investment in the area.

“We are trying to create an efficient and effective industrial space which makes it easy to do business,” says Gray.

“Ultimately, we are our own economic development project.”

Gray is a former provincial Deputy Minister with experience in finance, federal-provincial relations and trade. She’s convinced CentrePort could not be easily copied because of its natural advantages of geography, location, transportation links, Central Time Zone and trade corridors for trucking and air cargo — there are 28 cargo freighter flights every night of the week from the Winnipeg airport hub for the likes of FedEx, Purolator and UPS. About 70 per cent of that air cargo business is destined for locations outside Winnipeg and across neighbouring provinces.

Upgrade catalyst

CentrePort has been a catalyst to growth in its own right and has led to

PORTS & TERMINALS over $1 billion in highway upgrades, including flood proofing scheduled for Highway 75 to the Emerson CanadaUnited States border crossing one hour’s drive away; improvements to Highway 6 north to Thompson and on to the Port of Churchill; upgrades to the major east-west connector, Trans Canada 1 Highway; and enhancements for the Perimeter Highway, the ring road around Winnipeg.

No wonder Gray says that in five years’ time, the number of companies involved in CentrePort will have tripled to about 100 and involve over 600 acres, including over 200 acres of green field development.

The week of the interview, CentrePort was hosting a delegation of Chinese business people keen on buying land and setting up a Canadian company at the trimodal port facility.

CentrePort appears to be lifting the province as it reconfigures itself to take advantage of its central location and natural trade corridors. It is being developed in close co-operation with provincial ministries and Yes! Winnipeg, the business development arm of Economic Development Winnipeg, as well as supportive federal, provincial and municipal governments.

Common-use rail facility

it was their idea and that’s the best possible world for me. We have a whole community of ‘small A’ ambassadors for this project.”

Manitoba soybeans and freshwater fish were exported to China for the first time as part of a CentrePort project using an innovative new cargo-tracking system known as Radio Frequency Identification Technology (RFID) and designed to guarantee the safety, origin and quality of Canadian agricultural products.

Only Arctic seaport

As Canada’s only Arctic seaport, the Port of Churchill can handle Panamaxsize vessels in its 14-week season which is growing almost every year. Certainly unique in location, the port brings ocean trade to the doorstep of central Canada for products such as grain exports, manufactured goods, mining, and forest products. Surprisingly, Churchill is 2.76 days closer to Rotterdam in the Netherlands and nearly three days closer to Oslo in Norway than Thunder Bay can boast.

The port lists as its main advantage its strategic location “as it eliminates timeconsuming navigation and handling costs of the St. Lawrence Seaway and avoids congested ports on the West Coast of Canada.”

At least for 14 weeks it does, as the Port of Churchill is currently only open from July 15 through October 31. In 2013, the port shipped just over 600,000 tonnes of

grains and oilseeds in what was its longest shipping season to date. It also shipped some resupply goods and equipment for Nunavut during the shipping season.

Whose idea?

Asked whose idea CentrePort Canada was, Gray says “about 200 people say it was their idea and that’s the best possible world for me. We have a whole community of ‘small A’ ambassadors for this project.”

The actual catalyst might have been the Mayor of Winnipeg’s trade council report focused on improving transportation routes and creating an inland port for trade, the Manitoba Government with its Manitoba International Gateway Strategy, or perhaps the work of the Business Council of Manitoba and the Premier’s Economic Advisory Council in bringing everyone together.

“It snowballed pretty quickly from there,” recalls Gray of the communitywide effort that includes business, labour, academics and government. And today, that snowball of opportunity just keeps on growing for the inland tri-modal port.

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

Photo credit: Tom Thomson

In five years, Gray says CentrePort will also have an operational common-use rail facility giving business an opportunity to locate near rail on prime industrial land; three different industrial parks, including one specifically for rail-intensive business; and a new residential community covering 500 acres now in its design stages will be a fact of life in the southwest corner of the inland port’s growing community.

And CentrePort Canada is good news for Port Metro Vancouver and the Port of Prince Rupert as a significant amount of the goods are being funnelled to the West Coast ports. Rail links for trade from the West Coast also open up New Orleans (CN), Houston (BNSF), Thunder Bay, Montreal and Halifax through Winnipeg.

Business between Manitoba and the three western provinces totals more than $15 billion a year. The province has a diverse manufacturing base including aerospace materials, buses, building products, machinery, electronics, pharmaceuticals, plastics, furniture, and processed foods. Crops include canola, wheat, flax and other grains and even livestock and exports fan out in all directions.

Asked whose idea CentrePort Canada was, Gray says “about 200 people say

In a snowy haze, Manitoba Premier Greg Selinger (left), Diane Gray, President & CEO of CentrePort Canada Inc., and Prime Minister Stephen Harper (right) cut the ribbon on a new$212 million CentrePort Canada Way expressway.

May 2014 BC Shipping News 23

PORTS & TERMINALS Port Alberni’s PATH:

Long-term vision will create new supply logistics chain

W

ith a clear vision, a set goal and a positive feasibility study, Port Alberni Port Authority (PAPA) is a few steps away from embarking on a “path” that will result in Canada’s largest container terminal. And while there are still a few obstacles to overcome — funding being a big one — the executives at PAPA are confident the answer to the West Coast’s future needs for container capacity will be found through the Port Alberni Transshipment Hub (PATH).

Touting environmental, economic and social benefits, David McCormick, PAPA’s Director, Public Relations and Business Development, describes a project that, if it comes to fruition as envisioned, will create a new supply logistics chain for the West Coast.

The concept

The full vision of PATH encompasses about 300 acres of land (larger than Deltaport) at one of a number of different potential suitable locations being examined on the western side of the Alberni Inlet with an annual capacity of 2.5 million teus. It will be capable of handling the largest container ships that are presently operating on the West Coast as well as those that are expected to be operating here in the future — the Ultra Large Container Ships with a capacity of 14,500 teu and higher. To give this some perspective, vessels currently visiting Centerm and Deltaport are between 8,500 to 10,000 teus; California receives vessels that are in

The motivation and goal for the PATH concept is to enhance Canada’s AsiaPacific Gateway by creating a more cost-effective, environmentally friendly and much more efficient way of handling containers. the 10,000 to 12,000 teu range and the largest Maersk vessels (18,000 teus) are presently in the Asia/India/Europe routes.

Designs for vessels carrying up to 22,000 teus are already in the works. As larger vessels are deployed into Asia — Europe trade, currently seeing the largest vessels, the smaller vessels then shift to other markets, including the Pacific North West.

And, given that PATH is an opportunity to invest in the future of shipping, it would be designed to accommodate such 22,000 teu vessels and larger that are known to be on the drawing board.

PATH is expected to be a fully automated terminal which will mean higher levels of productivity, surpassing the 25 30 moves per hour (MPH) that current Pacific North West terminals achieve by as much as five to 10 moves for a total of 35 to 40 MPH. At maximum productivity, PATH could achieve moves in excess of 6,000 containers per 24 hours by deploying seven dual-hoist cranes for large container ships, thus creating tremendous economies of savings for shippers.

PATH will receive container ships directly from Asia, offload cargo which is then sorted and delivered to the end user by barge to the closest and most efficient point for the final leg of the trip. For

example, cargo destined for Wal-Mart will be delivered right next to the distribution centers in Delta via the Fraser River, thus capitalizing on the currently untapped potential of the Fraser River as a “marine highway”, such as is seen throughout Europe.

The container ship would be loaded with back haul cargo before setting off to sea, providing an additional international gateway for container cargo for Vancouver Island, its residents and businesses.

The motivation and goal for the PATH concept is to enhance Canada’s Asia-Pacific Gateway by creating a more cost-effective, environmentally friendly and much more efficient way of handling containers.

PATH will unlock a number of port facilities scattered along the banks of the Fraser River throughout the Lower Mainland region of British Columbia, Vancouver’s Inner Harbour and Puget Sound.

A positive feasibility study

The release of a positive feasibility study has buoyed PAPA’s enthusiasm for the transshipment hub. McCormick described the kind of details that were covered in the study, noting that “there were no insurmountable barriers or obstacles to the proposal found.” said McCormick.

Concept drawing of PATH in the Port Alberni Inlet.

Image courtesy of Cargo Velocity

24 BC Shipping News May 2014

PORTS & TERMINALS The study looked at a number of issues, including: • A study of the waterways — whether or not barges of this magnitude could transit from Port Alberni to the Fraser River.

• Engineering phase and site investigations — the study authors originally looked at seven different sites, including working with the First Nation who has traditional and Treaty Settlement Lands on which the potential locations are situated. A very positive working relationship with the Huu-ay-aht First Nation has been established (and formalized through the “landmark achievement” of a Protocol Agreement with PAPA to develop this new terminal) and the site chosen is currently an uninhabited remote location with little or no other use than forestry.

• Supply chain macro-logistics — study authors found the concept of PATH, in relation to the total supply chain of the Pacific Northwest, feasible and viable. The study considered current volumes, growth forecasts and potential customers.

• An economic impact analysis was conducted and again, the results are profound.

• A suppliers review was done at the local and regional levels to see what businesses exist now or would need to scale up to support the development of the terminal. McCormick noted that 27 distinct industry sectors — from trucking firms, tugs and barges, construction and operations, etc. — were included in the review.

In addition to a review of the above issues, a high-level environment review was conducted which looked at environmentally sensitivities as well as the environmental benefits of short sea shipping.

double over the next 10 to 15 years. Current projections indicate approximately four million TEUs of additional capacity will be needed to meet West Coast container demand by 2030.” (source: www. portmetrovancouver.com) Current capacity for the Lower Mainland between Centerm, Vanterm and Deltaport stands at approximately 3.5 million TEUs and expansion projects, including Deltaport II, will increase that number by another 2.6 million. Add in the current capacity of Prince Rupert’s Fairview terminal — 750,000 — plus their expansion to bring that number to just over two million, means that, while the short term capacity is being met, PATH is a solid idea for longer term growth.

PATH benefits also include capitalizing on underutilized facilities along the Fraser River with their short sea component being an integral part of the plan to ease bottlenecks at existing terminals.

Economic impacts In addition to diversifying B.C.’s economy, PATH promises to revitalize the economically depressed area of the Alberni Valley and take advantage of resources available on Vancouver Island that are otherwise going unused. For example, job estimates during the construction phase are conservatively pegged at the low to mid 4-figures of skilled trades people.

Once operational, it is currently estimated that PATH will require a steady workforce of at least 300 full-time staff. Additional jobs from spinoff businesses that will be

needed to support the terminal — distribution centres, stuffing facility operations, etc. — are expected to grow that number. And the growth of businesses to support those businesses and the families that will sprout up around them, create another level of economic impact that will attract further investment and growth.

This growth would occur in a region that offers an extremely affordable and diverse lifestyle that simply no longer exists in the Lower Mainland where young, professional families are increasingly priced out of the real estate market. The Canadian economy is highly dependent upon home sales and purchases of durable goods that such new employees of the new terminal would then be able to afford.

PATH also brings additional direct benefits to the economy of Vancouver Island; most specifically to its largest, most impactful sector: forestry. A recent study conducted by PAPA examining fibre flow on Central Vancouver Island has revealed more than 180 million board feet of lumber being locally produced and then shipped by either barge or truck to the Lower Mainland where it is then stuffed in containers and shipped to Asian destinations. This volume equates to 20,000 return truck trips per year transporting to and from Vancouver Island only to end up on ships weeks later that ultimately sail directly past the Alberni Inlet on their way to Asia resulting in significant economic leakage from Vancouver Island, British

The benefits

PATH provides for a number of benefits that span local, regional, national and international arenas. From taking advantage of the Fraser River as a marine highway with the underutilized facilities along the river’s banks to capitalizing on underutilized resources on Vancouver Island, PAPA executives have identified a number of areas that stand to gain: Meeting and managing Canada’s growth Port Metro Vancouver estimates that “Container capacity through Canada’s Pacific Gateway is expected to more than

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Michael Vaughan Edith Ryan Katharina Spotzl

May 2014 BC Shipping News 25

PORTS & TERMINALS Columbia and Canada due to such inherent transportation inefficiencies.

Environmental benefits From an environmental viewpoint, the benefits of PATH are most appealing: a reduction of traffic congestion in and around current terminals and routes to warehouse facilities in the Lower Mainland will result in reduced greenhouse gas emissions from idling trucks and cars. The use of barges for short sea shipping, again, will reduce truck traffic and the impact on road infrastructure; not to mention reducing the number of days that large container vessels must spend burning fuel while navigating their ways to terminals in the Lower Mainland and Puget Sound.

Location, location, location Port Alberni’s Port is the closest point on the West Coast to Asia — 209 nautical miles shorter than sailing to Vancouver, thus saving ships about 1.5 days’ sailing time and more than a day sailing to Seattle or Tacoma as well. The naturally deep and well-protected Alberni Inlet is at least 1.2 km wide at the proposed sites, easily accommodating the largest

26 BC Shipping News May 2014

container ships built and the preferred sites for the terminal itself provides for an abundance of space to expand in the future with very affordable land prices for warehouse and stuffing facilities to be constructed and operated

Cost and timing

All in, the cost for PATH is estimated to be approximately $1.5 billion.

“That’s from the first bulldozer breaking ground to the arrival of the first ship,” says McCormick. When asked if the terminal will be built in stages or all at once, McCormick noted that economies of scale would benefit the project — “so right from the start, we’ll be able to accommodate Ultra Large Container Ships.”

In terms of timing, McCormick says: “If there were no roadblocks, the best case scenario for the completion of the terminal is five to seven years. Realistically though, with environmental studies, permit approvals, etc., still to be undertaken, I’d say seven to 10 years. Having said that though, we are a lot further along the process than we thought we would be when we started.”

Next steps include meeting with federal ministers to solicit their support and to discuss funding. McCormick notes there are a number of federal programs that could provide a good chance of funding and has already seen expressions of interest from international investors. However, a project of such magnitude will require multi-governmental, multi-agency collaboration including the Provincial government as well as local government bodies such as the Alberni-Clayoquot Regional District, First Nations and, of course, continued support from the City of Port Alberni. Other steps in the ultimate process will involve Transport Canada, Department of Fisheries & Oceans, Provincial Ministry of Forest, Lands & Natural Resources and an environmental review.

Once government support and permits are in place, PAPA’s executives will then approach terminal operators and shipping lines for commitments.

While they may be taking the first steps on a long road ahead, you can sense the excitement this project is generating already. BCSN

TANKERS

Tankers galore

By Syd Heal

O

ver the past 25 years, I have written a good many maritime history books with a high proportion of them dealing with the shipping scene on the West Coast of Canada.

Similarly, I have been a consistent contributor to several magazines both local and international as well as having been in the marine insurance industry for close to 25 years. Together, all of this activity has required a lifetime of personal research on a great many aspects of the marine scene past and present.

One thing becomes immediately apparent: There is no record of a serious loss involving an ocean-going tanker spilling

The shrill wails of distress that are picked up on a daily basis and interpreted as the gospel truth...demonstrates the power of propaganda and how it will be believed if it conveniently supports a point of view. a disastrous quantity of petroleum products — including bunker fuel and petro chemicals — anywhere on the B.C. coast.

There have been some spills resulting from loss of bunkers following freighter strandings, usually on the West Coast of Vancouver Island, and loading accidents when taking on product in Vancouver.

There have been some accidents in the

period 1950 to 1970 involving overage tank barges, relics of wartime barge building. These include a black oil barge in Howe Sound and a runaway American oil barge out of Portland that beached itself on our West Coast, both were subsequently salvaged before serious loss of cargo followed. The only tanker loss I can find was Union Oil’s Santa Maria which

Teekay Shipping’s Kyeema Spirit — an Aframax-size vessel typical of the ships that visit Canada’s West Coast.

Photo courtesy of Teekay Shipping (Canada) Ltd.

May 2014 BC Shipping News 27

TANKERS demands no less and government regulation has responded with requirements for tug escort when entering or leaving B.C. waters. A highly skilled pilotage service and the quality of the double-hulled ships of today with their sophisticated navigational aids provides a level of assurance which just was not there a hundred years ago or even perhaps as recently as 20 years ago when double hulls started to come in.

However, the factors that have greatly changed are the frequency and the relative size of tankers, including LNG and LPG gas tankers. The stated increase in tanker movements, necessitated by expansion of the Kinder Morgan pipeline alone, indicates 350 additional inbound sailings and the same number outbound. That is over and above existing traffic which might be about 300 ship movements per year.

One thousand ship movements is big for one facility in Vancouver Harbour but something similar will happen at Prince Rupert and Kitimat if projects slated for those two ports go ahead.

On the lower B.C. coast, the old mill sites at Woodfibre and Elk Falls have been acquired by developers with, among other

A highly skilled pilotage service and the quality of the double-hulled ships of today with their sophisticated navigational aids provides a level of assurance which just was not there a hundred years ago... stranded while in ballast on a reef off Victoria in 1938 with some bottom damage but no leakage of oil as it was outward bound empty.

It is not my intention to minimize any of these spills, but none came close to being rated as a major catastrophe. The shrill wails of distress that are picked up on a daily basis and interpreted as the gospel truth by self-appointed experts who have sprung up everywhere, but particularly in the tele-media, demonstrates the power of propaganda and how it will be believed if it conveniently supports a point of view.

Research indicates that the first steady trade in petroleum products probably goes back to the end of the 19th century when colza oil, a form of rapeseed oil, was in wide use as a lubricant and lamp oil. Most forms of mineral oil were shipped in tin

cans, four to a case, or in oak barrels and handled as conventional freight until the growing mineral oil industry developed small steam-powered bulk oil tankers that started to appear in the fleets of companies like Shell and Standard Oil. Union Oil of California was probably the first to ship bulk product into Vancouver around the very early years of the last century when the market for gasoline picked up with the coming of the automobile age that started in Vancouver and spread rapidly into the interior as roads were built.

Tankers of that era were very rudimentary and some stranded over the years on the U.S. West Coast, but none, excepting the Santa Maria hit the rocks on the B.C. coast or were in serious collisions. What the critics will not admit is that the chance of catastrophic loss is now minimal. A safety-conscious public

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TANKERS objectives, an announced plan to develop tankers, petrochemical and LNG, are them as LNG terminals. Add the gas tank- owned by specialist tanker companies. ers in the Straits of Georgia to the oil and As providers of tonnage to the major oil product tanker traffic and the traffic for interests, they serve a very competitive Port Metro Vancouver and the lower coast market with eagle-eyed charterers paying will become a far busier place. However, a great deal of attention to specifications for those who panic when reading these with fuel consumption, economic operatfigures, a thousand ship movements annu- ing speed, engine specs and overall conally still only averages out at less than three dition and reputation of the owner being per day which the port and its ship berth- very important. Fleets, for the most part, include few ships over 20 years of age with ing facilities would easily handle!

Who will be providing these tankers? most tonnage now being built since 2000 Firstly, it should be noted that the major and the double hull is now the universal oil companies no longer own huge fleets standard for the industry. Among the of tankers as they did 50 or more years international oil companies, some own no ago. Among the major oil companies, shipping of their own, choosing instead to only British Petroleum makes Tanker rely on a totally chartered fleet.

Among the specialty tanker owners, Operator’s annual survey of the top 30 fleets. Shell has a smaller oil tanker group a leader with the world’s fourth largest but operates a far larger LNG fleet than group of tanker fleets is Vancouver-based any other oil company reflecting its Teekay Shipping with 13.106 million leadership in this sector. Many ships in tonnes including new buildings, who can these and other operator’s fleets are in be expected to loom large in any operdisponent ownership supported by long- ations to or from B.C. ports and in all sectors including LNG. The world’s largest term charters from a variety of owners.

Beyond the oil company-controlled owner/operator is Mitsui/OSK (MOL) SCA0019A Ad - BC Shipping News.pdf 1 10/19/2012 8:30:34 AM fleets, the vast majority of tankers over with 16.58 million deadweight tonnes the entire spectrum of crude or product capacity. Other big Asian companies in

the world ownership stakes include NYK of Japan at number three. Chinese owners are COSCO Dalian, China Shipping Development Corp. and Nanjing Tankers while Singapore is home port to Ocean Tankers and AET Tanker Holdings, the former American Eagle Tankers of the U.S. As the Asian countries around the Pacific Rim are expected to become big buyers of Western Canadian oil and gas, we can probably anticipate that their tanker companies will become prominent in B.C. ports.

A major feature of the world’s tanker ownerships is the high proportion that are participants in pools. Such pools are usually run by the larger and more successful tanker operators and they appear to work for the pool operator who has a vastly bigger fleet under its control and thus is able to extend its business well beyond the facilities of its owned fleet. The smaller owners benefit also by having their vessels in a larger, closely managed pool fleet with its usually highly skilled and full-time managers, particularly in the all-important chartering, technical and crewing sides who can be relied upon to better keep the

May 2014 BC Shipping News 29

TANKERS Once again we can see how the pool operator is better able to service affreightment contracts by having a large and more flexible fleet at its disposal. the company and set up Hafnia as a pool operator and, by all accounts, they have been very successful in building a business that is also backed by Swedish interests who gave them the needed heft to get started. Pool tonnage from these and other pools may become big contributors to the tanker shipping on the B.C. coast.

However, there are two others I would like to mention, partly because they are among the most aggressive in the business and we are almost certain to see them on the local scene. One that appears to be indirectly related to Norden is Navios Maritime Acquisitions headed by the totally competent Angeliki Frangou, the CEO of four large companies that make up the evergrowing Navios Group which has several bulkers in the Norden bulkers pool. It has never been announced, but I am reasonably sure that Ms. Frangou took a number of tankers off Norden’s hands in a deal that received virtually no publicity beyond stating in her IPO for the Acquisitions company that these tankers had been acquired from Far Eastern shipyards. Around a dozen ships were involved and all may have been

Photo credit: Leigh MacKay, www.shipspotting.com

individual vessels moving as much as possible as that is how they make their money.

Once again we can see how the pool operator is better able to service affreightment contracts by having a large and more flexible fleet at its disposal.

Among the pool managers, the Danes particularly shine with three world-scale pool groups — Norden, Hafnia and Torm — being well-known internationally. Norden is one of the oldest and most successful Danish companies. When the recession took hold in 2008, it had a large order list with Asian shipbuilders, but it seems that it was able to slim its new building contracts down by selling off a number of partially built ships or building contracts to reduce its exposure. It was all done without impairing its balance sheet or deferring the dividend.

Torm was less fortunate with a huge pool in addition to owned vessels. It seems it has been able to avoid bankruptcy by the narrowest of margins but at enormous cost. Additionally, there were some serious stress cracks that became apparent when its senior chartering managers left

The Pinchincha, built by Hyundai Heavy Industries in 2010, at anchor in Burrard Inlet waiting to take on cargo.

30 BC Shipping News May 2014

ordered firm from Far Eastern shipyards, by Norden and thus became the initial fleet of NM Acquisitions when it came to the market soon after the recession took hold. Such was the strength of Ms. Frangou’s corporate covenant, she seems to find capital where others fall by the wayside. It was not long after that when she added a fleet of Japanese VLCCs with charter back from the vendors and other deals followed where she acquired good distressed tonnage mainly from shipyards or financial backers. An example was the acquisition of five tankers and five container ships which were all distressed assets acquired from the German ship finance bank Nordea. Navios is well known in B.C. waters and, having assembled a growing fleet of over 40 tankers since 2009, it is well positioned to go after new business here.

The other company of note is Scorpio Tankers, a Marshall Islands company with head office in Monaco. It is a relatively new company, less than eight years old. It is a modern outgrowth of the shipping interests of two Italian ownerships, the Bibolini and Lolli-Ghetti families, that date back a long way in 20th century history. They were not well known outside of Italy until Scorpio was floated on the New York Stock Exchange. It is headed by Emmanuel Lauro, bearer of a well-known name in Italian shipping.

Scorpio sold its fleet of 16 LPG tankers to a new company, Dorian LPG, in which it retains a 30 per cent shareholding which appears to be a mix of Norwegian and Greek interests. Scorpio owns 121 tankers and 74 Bulkers including 88 vessels (of which 64 are tankers) with delivery dates up to 2016. I cannot help get the feeling that history will repeat itself with another round of overbuilding when another crop of owners will go to the wall and companies like Navios will have another field day picking up first-class distressed assets.

It is interesting to see how two similar companies have chosen their own ways of accumulating shipping capital.

Navios buys distressed assets near the bottom of the cycle and Scorpio arranges construction contracts when the shipyards are offering highly attractive prices and is able to sell some of them when shipyard prices are climbing. It has just announced the resale of seven VLCC building contracts and booked a profit of $50 million.

Syd Heal, a veteran of the marine industry and a prolific writer and publisher of marine books, can be contacted at: richbook@shaw.ca.

CARGO MARINE FUELLOGISTICS TRENDS

Global marine fuel trends 2030

By Dimitris Argyros, Carlo Raucci, Nagore Sabio and Tristan Smith

L

loyd’s Register Marine teamed up with researchers from University College London to produce Global Marine Fuel Trends 2030, a holistic look at the driving forces that will affect the shipping industry’s ability to manage fuel sources. The following executive summary provides the highlights from the report. BC Shipping News would like to thank Lloyd’s Register and their team: Dimitris Argyros (Lead Environmental Consultant and LR project manager), and Carlo Raucci, Nagore Sabio and Tristan Smith from University College London for the following summary.

Global Marine Fuel Trends 2030 central objective is to unravel the landscape of fuels used by commercial shipping over the next 16 years. The problem has many dimensions: a fuel needs to be available, cost-effective, compatible with existing and future technology and compliant with current and future environmental requirements. In a way, one cannot evaluate the future of marine fuels without evaluating the future of the marine industry. And the future of the marine industry itself is irrevocably linked with the global economic, social and political landscape to 2030.

Rather than looking for a single outcome, we use scenario planning methodologies. This is why we are making the connection with Global Marine Trends 2030, through its three different scenarios: Status Quo, Global Commons and Competing Nations.

These scenarios represent alternative futures for the world and shipping in 2030, from business as usual to more globalization or more localization. Our assumptions are fed into probably the most sophisticated scenario-planning model that exists for global shipping, GloTraM, developed as part of the Low Carbon Shipping Consortium. The model analyzes how the global fleet evolves in response to external drivers such as fuel prices, transport demand and technology availability, cost and technical compatibility. Tonnage replacement and design/

...one cannot evaluate the future of marine fuels without evaluating the future of the marine industry. And the future of the marine industry itself is irrevocably linked with the global economic, social and political landscape to 2030. operational speeds are adjusted to ensure a balance between transport demand and supply. The decision-making algorithms in the model are based on the principles of regulatory compliance and ship-owner profit-maximization, very much aligned to the dimensions of the future fuel challenge.

GMFT 2030 boundaries are wide but not completely inclusive: we examine the containership, bulk carrier/general cargo and tanker (crude and chemical/products) sectors, representing approximately 70 per cent of the shipping industry’s fuel demand in 2007. We include fuels ranging from liquid fuels used today (HFO, MDO/MGO) to their bio-alternatives (bio-diesel, straight vegetable oil) and from LNG and biogas to methanol and hydrogen (derived both from methane or wood biomass). Engine technology includes two or four-stroke diesels, diesel-electric, gas engines and fuel cell technology. A wide range of energy efficiency technologies and abatement

solutions (including sulphur scrubbers and Selective Catalytic Reduction for NOx emissions abatement) compatible with the examined ship types are included in the modelling. The uptake of these technologies influences the uptake of different fuels. Regulation is aligned with each of the three overarching scenarios to reflect business-as-usual, globalization or localization trends. They include current and future emission control areas (ECAs), energy efficiency requirements (EEDI) and carbon policies (carbon tax). Oil, gas and hydrogen fuel prices are also linked to the Status Quo, Global Commons and Competing Nations scenarios.

So what does the marine fuel mix look like for containers, bulk carriers and tankers by 2030? In two words: decreasingly conventional. HFO will still be very much around in 2030, but in different proportions for each scenario: 47 per cent in Status Quo, to a higher 66 per cent in Competing Nations and a 58 per cent in Global Commons. A high share of HFO

May 2014 BC Shipping News 31

MARINE FUEL TRENDS ...what is perhaps the main take-away from GMFT2030? We often talk about tipping points but what we anticipate is an evolutionary process rather than any instant shift. means a high uptake of emissions abatement technology. The space left by the declining share of HFO will be filled by low-sulphur alternatives (MDO/MGO or LSHFO) and by LNG, and this will happen differently for each ship type and scenario. LNG will reach a maximum 11 per cent share by 2030 in Status Quo. There is also the entry of Hydrogen as an emerging shipping fuel in 2030 Global Commons, a scenario which favours the uptake of low-carbon technologies stimulated by a significant carbon price.

Contrary to common perceptions, containerships are not the segment with the highest share of LNG — in fact it is the chemical/ product tankers, with LNG making up 31 per cent of its fuel mix by 2030 in Status Quo. In contrast, containerships will see a maximum five per cent LNG share in Global Commons. This can be explained considering that the fuel mix represents the entire fleet, so tonnage age and renewal are as important as technical compatibility and cost-effectiveness of different fuels.

Segments with the higher proportion of small ships see the highest LNG uptake.

It is also a matter of perspective: from a non-existent share of the marine market in 2010, LNG will have five to 10 per cent share in 20 years. We are not saying that LNG will not be the fuel of the future but that seeing new ships built with LNG today (many of which are in niche markets/short-sea shipping) and overturning the marine fuel landscape in less than a ship’s lifetime are two entirely different discussions. Methanol does not appear in the fuel mix in any considerable quantities by 2030. It may be that this timeframe is too short or that it is not a cost-effective solution making it, again, appropriate for a niche market not represented by the four main ship types we examined.

While the fuel mix indicates a declining share of HFO, filled by alternative options, in 2030 the demand for HFO will be at least the same (In Status Quo) if not 23 per cent higher (in Global Commons) 32 BC Shipping News May 2014

compared to its 2010 levels. But, with the overall fuel demand doubling by 2030, other fuels will see a higher rate of growth to meet this demand.

The fuel choice and scenarios are shown to create differences in energy efficiency technology take-up, design and operating speed. Low technology take-up occurs in Status Quo and Competing Nations, although installed power reduces due to reductions in design speed. Greater installed power reduction occurs in Global Commons, due to the combination of design speed reductions and greater efficiency technology take-up.

Typically, the installed power in Global Commons is operated at higher engine loads, resulting in marginally higher average operating speeds when compared with the other scenarios.

This is due to the greater technical efficiency of the Global Commons fleet. As the most profitable fuel and machinery change over time and between scenarios, this in turn impacts the optimum operating speed, with higher fuel prices and less energy efficient (e.g. older) ships operating at lower speeds when compared with the newer ships of the same ship type and size. The fuel mix may be a central output to this study but it is not the only one. GloTraM can predict shipping emissions and these are very much affected by the same drivers that we already discussed plus the marine fuel mix itself. Despite improvements in design and operational efficiency and current/future policies, CO2 emissions from shipping will not decrease in 2030.

Status Quo will see its emissions doubling, due to the increase in trade volume combined with the moderate carbon policy and the low uptake of low-carbon fuels. Global Commons is following a similar trend but then decreasing post 2025, thanks to carbon policy and the uptake of Hydrogen. Competing nations will see the smallest growth in emissions.

Despite the lack of carbon policy, the smaller trade volume, high energy prices

and, predominantly, the high uptake of bio-energy, result in the lowest increase of CO2 emissions than any other scenario (56 per cent).

The lower emissions associated with this scenario seem attractive but come at the cost of lower growth in the shipping industry, higher operating costs and less global trade. Furthermore, in 2030, in Competing Nations and Status Quo, emissions remain on an upwards trajectory and the global fleet remains similar to the fleet in 2010 with the industry poorly positioned to weather any policy or macroeconomic storms in the period 2030-2050. In contrast, in Global Commons, the sector’s emissions peak (in 2025) and are starting a downwards trajectory that should assist in a more stable and sustainable long-term growth in shipping, trade growth and global economic development.

When discussing future policies and shipping CO2 emissions, it is worth considering our assumptions for calculating them, which is that GHG emissions come from the CO2 released in fuel combustion activities of the vessels during their operation. However, if LNG, bio-fuels and hydrogen take a greater role in shipping, it would be important to consider emissions associated with upstream processes and for non-CO2 emissions, for example methane slip. This could show that fuels which, on the basis of operational emissions alone, appear attractive, have significant wider impacts. This is important when developing mitigation policies.

Having looked at a variety of fuels, technologies, economic and regulation scenarios, all resulting in different future outcomes, what is perhaps the main take-away from GMFT2030? We often talk about tipping points but what we anticipate is an evolutionary process rather than any instant shift. Sixteen years is less than a ship’s lifetime and a dramatic overturn of the marine fuel landscape may not be realistic. On the other hand, it is also a matter of perspective: we may not see an immediate revolution but we will certainly experience some changing trends.

The full report, Global Marine Trends 2030, can be found on the Lloyd’s Register website (www.lr.org/documents).

CARGO LOGISTICS SHIPBUILDING

New landmark for the North Shore

O

was designed and built by Shanghai Zhenhua Heavy Industry Co. (ZPMC) and weighs about 1,000 tonnes in total.

According to Bob Hillstrom, Project Manager for Seaspan’s Modernization Program, he and his team will spend the next three or four months installing cable and piping systems before final testing and training staff.

While this may be the most visible sign of the modernization program, a quick tour around the shipyard shows significant progress with other buildings and infrastructure. “We’re still on schedule,” said Brian Carter, President, Seaspan Shipyards.

“We’ll be done the majority of work by October, in time to start construction on the Offshore Fisheries Science Vessel.”

Carter also noted that staffing levels were increasing with 150 senior management positions filled since February 2012 and another 94 expected to be hired this year. “These are the engineers, the program managers and procurement professionals needed to support the projects. We have opened up a new office in the Capilano Business Park to help with some of the demand for office space.”

Carter indicated that they will start ramping up the yard workforce later this year when construction of the OFSV begins and will “hit a peak of about 1,000 when we start on the JSS — late 2016, early 2017.” The yard currently has 150 workers keeping busy with refit and repair work as well as the construction of Seaspan chip barges. BCSN

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

Photo credit: BC Shipping News

ne of the most visible signs of progress at Seaspan’s Vancouver Shipyards as they undergo a $200 million modernization program was raised in early April — the 300-tonne gantry crane now sits as a prominent feature of the North Shore skyline.

Weighing 500 tonnes, the main girder was the last major structural piece to go up. Hoisted up by a 1,600-tonne crane from ALE Roll-Lift Canada, it took about one hour to lift the girder onto the top of the fixed and hinged legs. As you’ll recall from the April issue of BC Shipping News, the gantry crane was brought over from China in three large pieces using the heavy lift capacity of Austral Asia Line. Amix Group assisted Austral Asia in getting the girder from Surrey Fraser Docks to Seaspan’s facility. The crane

Seaspan Shipyard’s Tony Matergio (Vice President and General Manager), Brian Carter (President) and Bob Hillstrom (Project Manager, Seaspan Modernization Program) get ready to oversee the installation of the gantry crane’s main girder.

May 2014 BC Shipping News 33

MARINE ENGINEERING

CARGO LOGISTICS

Marine Engineering – The New Wave

T

he Vancouver Island Branch of the Canadian Institute of Marine Engineering is hosting “Marine Engineering: The New Wave“, a technical conference and exhibition for Marine Professionals. The conference will take place June 12 and 13, 2014 at the Delta Victoria Ocean Pointe Resort and Spa. The two-day event will feature guest speakers, relevant technical presentations, a trade exhibition, an evening social event and various networking opportunities.

The conference aims to present cutting-edge developments in the marine, industry, from ship design, repair, construction and operations, to oceanography and marine renewable energy. The schedule each day will be made up of four sessions, two of which will focus on Marine Operations. The other two sessions will explore Marine Design and Ocean Technology.

ACCOUNTABILITY l RELIABILITY SERVICE EXCELLENCE

9311 River Drive Richmond, B.C. Phone: 604-270-2775

www.meridianmarine-inc.com

34 BC Shipping News May 2014

The conference aims to present cutting-edge developments in the marine, industry, from ship design, repair, construction and operations, to oceanography and marine renewable energy.

There is a diverse range of topics that will be presented in the Marine Operations Sessions. Presenters from BC Ferries will discuss the process for the adoption of Liquefied Natural Gas technology into the BC Ferries fleet including the technical requirements, business case and the regulatory issues. The Defence Research and Development Centre [DRDC] Atlantic will give a presentation on the simulation naval platform dynamics and the affect on human and equipment safety as it relates to performing a mission. The results of these simulations are applicable to any platform at sea not just naval platforms. An analysis carried out by the Maritime State University of Vladivostok will be presented regarding the seaworthiness of ships in freezing seas. Generating energy from the oceans and rivers has become a significant area of research and innovation. Marine Renewables Canada will focus on marine renewable energy on the West Coast of Canada, specifically, what project opportunities are emerging and how the supply chain can contribute and benefit. Investigations using high fidelity computer simulations are being used to predict the performance of wave energy conversion technology will be presented by the West Coast Wave Initiative based at the University of Victoria. The Oregon Wave Energy Trust will highlight the developments of the wave energy sector in Oregon and the United States. Robotically controlled underwater devices are increasingly used in marine industries. Separate presentations will be given on underwater robotic logging and seafloor robotic mining. Also from DRDC is a presentation on the development of a docking strategy for recovering an ROV with a submarine through virtual prototyping. Another presentation will examine how adaptive learning techniques can be used to develop vessel and equipment specific training for fleets.

A few examples from the Marine Design Sessions are as follows: Speakers from the University of Victoria’s Department of Mechanical Engineering will give a presentation concerning the development of an integrated design and analysis platform for hybrid-electric ship propulsion taking into account the dynamics between powerplant, drivetrain and ship hydrodynamics. The presentation will detail UVic’s Green Ship and Hybrid Power Systems research. Bart Stockdill, representing Robert Allan Ltd., will discuss how computational fluid dynamics can be used as an effective alternative to costly and time-consuming scale model testing to evaluate the performance of tugboats and other workboats in the design process. The Corvus Energy presentation will cover advances in hybrid and full electric propulsion for passenger ferries that achieve huge fuel savings. A speaker from the National Marine Electronics Association will discuss digital electronic standards for communication between marine equipment in terms of simplifying wiring aboard ships.

MARINE ENGINEERING The Ocean Technology Sessions will feature presentations focusing on how new technologies will help solve problems currently affecting marine industries. One such presentation from AML Oceanographic will describe how lowpower LED-based ultra-violet light sources can be used to control biofouling on a wide range of oceanographic equipment. It is essential for the future of humans that the oceans continue to be a significant source of food. Vancouver Island University will give a presentation on the Blue Revolution, which is adapting advanced engineering to create sustainable shellfish aquaculture systems.

A special area at the conference will be set aside for a poster display of projects by students at post-secondary marine engineering, science and technology colleges and universities.

Malcolm Barker, Vice President and General Manager of Victoria Shipyards will be the Master of Ceremonies for the conference. At the opening ceremonies, Mayor of Esquimalt Barbara Desjardins will address conference attendees. Esquimalt has perhaps the largest work force on Vancouver Island engaged in marine activities — specifically shipbuilding and repair. At the noontime luncheon on the second day of the conference, a representative from Seaspan will discuss the impact of the National Shipbuilding Program for Canada’s WestCoast marine industry.

walk or a harbour ferry ride from the Delta Hotel to the museum at Bastion Square. The gala will commence at 6:30 pm with appetizers and a no-host bar in the museum’s main gallery. This will be an opportunity for registered guests to network and enjoy each others’ company in the midst of unique historic marine exhibits. What better place to hobnob with other mariners and marine engineering businesspersons? At 7:30 pm, the guests will move to the Mezzanine floor for a buffet-served meal with wine and a

sit-down arrangement, again amongst seafaring exhibits. The evening will conclude at 11:00 pm. We hope this will afford plenty of time to exchange ideas, discuss the conference presentations and make business connections for all in attendance whilst enjoying a great meal in a unique setting.

Registration

To register please use the registration area on the website http://www.thenewwave.ca/?page_id=305

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More details

For the most up to date information regarding the schedule, presentations not mentioned here and all information regarding the conference please refer to the website http://www.thenewwave.ca/

Accommodation

A block of 50 rooms is reserved for conference attendees, however you must book

by May 12th, 2014 to access the special pricing. Please contact the hotel reservation line to check availability, call 1-800667-4677, and mention the conference name, “The New Wave“.

REBATE

Up to $1300 rebate available on selected products runs thru June 30, 2014.

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Optional Evening Dinner Event

On the first evening of The New Wave Conference, there will be an optional dinner event at the Maritime Museum of British Columbia. It is a short, pleasant

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www.cmcmarineelectronics.ca May 2014 BC Shipping News 35

GREENTECH 2014 ENVIRONMENTAL CONFERENCE SAINT JOHN NEW BRUNSWICK JUNE 10, 11 & 12 A SPECIAL THANKS TO OUR GOLD SPONSORS

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LOGISTICS GREENCARGO TECHNOLOGY

Carbon War Room and Green Marine share a common goal to advance cleaner technologies

By Julie Gedeon

T

he Carbon War Room, a global non-profit organization aiming to speed up the adoption of business solutions to reduce carbon emissions at a gigaton scale, has endorsed Green Marine by joining the environmental program as an official supporter.

“Our vision and mission are very much aligned in terms of engaging industry leaders interested in pursuing environmental performance that goes well beyond legislative compliance,” said Peter Boyd, chief operating officer. “We’re eager to partner with Green Marine as opportunities arise.”

The first partnership opportunity will be June 11 when Boyd addresses GreenTech2014 — Green Marine’s annual conference on sustainable technologies and innovation for marine transportation. Boyd will present new financial models to pay for fuel-saving retrofits that improve vessel performance and profitability.

Founded by Sir Richard Branson and eight other highly successful business leaders in 2009, the Carbon War Room recognizes the pressing need to reduce carbon emissions. To have a better than 50-percent chance of limiting global warming to within two degrees Celsius, the world’s C02 emissions need to decrease by an estimated 44 gigatons annually by 2020. It’s with this urgency that the organization has identified business sectors where a gigaton – one billion metric tonnes — of C02 could be eliminated within a decade using efficiency-enhancing technologies. At least half of the necessary technology already exists, but its implementation may be stalled for various reasons that the Carbon War Room wants to help resolve.

Transport is among the sectors offering a gigaton opportunity with emissions

The Carbon War Room was established when its founders noticed that existing solutions with good economic and environmental returns were not being readily adapted. anticipated to increase by 40 per cent between 2007 and 2030 if left unchecked.

Although maritime commerce is the most efficient way of moving goods, the potential for improvement remains vast.

Integrating established technologies on existing ships could reduce the industry’s C02 footprint by 30 per cent by 2030, according to the organization’s research.

Greener technologies could at the same time save the industry an estimated $70 billion a year by improving efficiencies. The estimates are largely based on two 2009 reports by the International Maritime Organization (IMO) and by DNV (Det Norske Veritas), now DNV GL. They indicate that 25 to 75 per cent of the industry’s carbon emissions could be eliminated if latent deficiencies, such as inefficient propellers and aging hull coatings, were addressed.

The Carbon War Room notes that hundreds of technology providers already offer more than 60 shipping-related technologies. Many of these are market-ready with estimated fuel savings of two to 15 per cent. They include better engines, waste heat recovery, air lubrication, modern wind power, and other key innovations. Becker’s unique Mewis Ducts, for example, optimize a full-form vessel’s power by channeling the ship’s hull wake directly into the propeller for a greater forward thrust.

“We’re not even talking about the new eco-ships that are being constructed or revolutionary designs and energy uses,”

Boyd emphasized. “We’re just focusing on the existing technologies which have already been proven to work well and to generate a good return on investment.”

The Carbon War Room was established when its founders noticed that existing solutions with good economic and environmental returns were not being readily adapted. New financial models could assist the maritime industry in terms of capitalizing on the $20-billion annual market associated with innovations to enhance the performance and efficiency of existing and new ships globally.

“Ship owners and port authorities are the ones that best know their business,” he quickly added. “What we’re trying to do at the Carbon War Room is recognize market bottlenecks across sectors with the goal of implementing solutions that already work in some areas.”

West Coast leaders

Two Canadian port authorities — both West Coast members of Green Marine — have become the first in the world to offer discounted harbour dues to the most energy-efficient ocean-going vessels as determined by the ‘A-to-G’ Greenhouse Gas (GHG) Emission rating.

Port Metro Vancouver (PMV) and the Prince Rupert Port Authority (PRPA) are each using the rating system developed by the Carbon War Room and the maritime risk experts at RightShip. The system is available through www.shippingefficiency.

May 2014 BC Shipping News 37

GREEN TECHNOLOGY

Photo courtesy Prince Rupert Port Authority

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

Both Prince Rupert Port Authority and Port Metro Vancouver have established programs to reward vessel owners with energy-efficient and low-emission ships. org and contains GHG emission data for more than 70,000 existing vessels. ‘A’ ratings indicate the most efficient ships, while ‘G’ signifies the biggest emitters.

Boyd emphasized the importance of the leadership role by PVM and PRPA. “Shipping is the most efficient transportation mode,” he said, “but its sheer scale results in it producing more carbon than all of Germany on a yearly basis, making it imperative for ship owners to install

energy-saving technologies that are readily available and adaptable to existing vessels.”

PMV has been granting discounts on harbour fees since 2010 when it launched the Blue Circle Awards as part of its EcoAction program. Blue Circle Awards recognize ocean-going vessels that have significantly decreased their emissions.

PMV expanded its program last year to enable vessels with A, B or C rankings to

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qualify for either Gold or Silver level discounts within the EcoAction program.

“The A-to-G rating system is one several highly reputable methods that the Port of Vancouver recognizes — including, of course, Green Marine’s criteria — to determine which vessels should qualify for discounts,” said Duncan Wilson, PMV’s vice-president of Corporate Social Responsibility. “Our primary goal is to reduce emissions so we’re open to receiving the information about more efficient ships by various credible means.”

Last year, the Prince Rupert Port Authority established its incentive program using the Environmental Ship Index as qualification criteria. On January 1, 2014, the port launched its Green Wave environmental stewardship program. It provides additional methods for ‘clean ships’ to qualify for discounted harbour dues. Green Marine’s standards, as well as the A-to-G rating system, are among a number of qualification criteria now recognized by the program.

ENVIRONMENTAL NAVIGATION

The urgent need for ocean data

By K. Joseph Spears

M

arine shipping on Canada’s West Coast is increasing both in volume and complexity as major new projects involving energy exports (such as LNG) are proposed and other Canadian exports are on the rise. The result is that we are going to see increased marine traffic and with that, an increasing likelihood of a major marine incident. This was recognized in Part 1 of the federal government’s Tanker Safety Expert Panel Review. The proposed increase in marine traffic for oil is in addition to the growing marine traffic from other domestic, international, commercial and recreational vessels. In the lower portion of the Salish Sea (Gulf of Georgia), it is not uncommon to see over 20,000 recreational vessels operating in the summer months along with a complex mosaic of commercial shipping traffic. On Canada’s West Coast, we need to have an accurate source of real-time ocean data in order to manage shipping and minimize marine incidents. This article will look at the need for real-time and time-series data as part of the requirement of environmental navigation in shipping governance.

Commercial marine shipping activity has an impact on the ocean environment both from normal operations as well as low-probability, high-consequence events like oil spills or the sinking of a vessel.

These marine incidents will get a great deal of public and media attention and will likely have a considerable environmental impact from an ecosystem standpoint and effect a broad area in both time and space. However, with limited knowledge of the ecosystem, the impacts and severity can be difficult to ascertain.

Any decision on environmental navigation under shipping governance generally, and in particular on the West Coast, must be based upon the foundation of real ocean ecosystem and physical data...

In many respects, our coast, with one of the last temperate rainforests in the world, is unique. There are many competing interests at play including a strong environmental protection component that has become an active player in the process of ocean governance on Canada’s West Coast. There is some history with broadarea governance planning, for example, the Pacific North Coast Integrated Management Area (PNCIMA), a multistakeholder process, was mandated by Fisheries and Oceans Canada but did not seek to impact core shipping legislation.

This broad-area governance group managed to bring some parties together and provided good dialogue but did little to focus attention on the missing piece of the ocean governance puzzle — data. It is difficult to make management decisions with limited ocean data and an unclear plan on how to collect the data.

Any decision on environmental navigation under shipping governance generally, and in particular on the West Coast, must be based upon the foundation of real ocean ecosystem and physical data which ideally should be time-series data. More importantly, ocean data should be accessible to all parties. Presently, that does not exist.

Without an abundance of actual facts, decision-makers must employ the best-guess method when developing systems that are sensible to end users while providing real protection for the ocean environment.

This is why a robust ocean-data collection regime is required to properly assess the impact of existing and proposed marine traffic. Canada has obligations under the Law of the Sea Convention to collect this ocean data and undertake scientific research to better understand our oceans.

This information has a variety of uses, of which, environmental shipping is a prime example. Whether or not we meet these international legal requirements remains to be seen.

Globally, the number of marine pollution incidents has been decreasing. The green shipping movement, a global trend, has developed to minimize the ecological footprint of commercial shipping. The green shipping movement has been highly successful in addressing some areas of the environmental impact of shipping which, incidentally, remains the most efficient means of transportation and carries 90 per cent of the world’s trade. The green shipping movement is a collaborative approach bringing together a broad cross section of parties to look at this important issue and create positive long-term solutions. The reduction of air emissions is one such successful outcome. However, there is still much work to be done to protect the marine environment for future generations. It is also one of the pillars of the United Nations’ International Maritime Organization (IMO). IMO’s position on the subject is succinctly stated as: May 2014 BC Shipping News 39

ENVIRONMENTAL NAVIGATION “Shipping is an essential component of any program for future sustainable economic growth. Through IMO, the Organization’s Member States, civil society and the shipping industry are already working together to ensure a continued and strengthened contribution towards a green economy and growth in a sustainable manner. The promotion of sustainable shipping and sustainable maritime development is one of the major priorities of IMO in the coming years.”

Canada’s shipping governance regime has developed since Confederation based on an international regime and “a made in Canada solution” which responds to specific domestic requirements and concerns that have arisen from marine incidents. For example, after the M/V Arrow oil spill in 1970, Canada adopted stringent response requirements under the former Canada Shipping Act. Our shipping governance developed at a time when there existed a limited acknowledgement of the ocean environment. The primary concern at the time was the safety of life at sea and protection of passengers and crew. The governance focus has now shifted and is shared, some would say, equally between safety and security and protection of the marine environment.

Canada’s economic prosperity depends on the marine transportation of exports to world markets. Embracing green and sustainable shipping will become critically important as Canada seeks to expand its exports, especially energy exports, in the coming years. The ongoing ocean and environmental impacts of shipping cannot be ignored and will become increasing important in our Canadian shipping regime which seeks uniformity

North Pacific Ocean — 250 miles off Canada’s West Coast, the Haida Salmon Restoration Company deployed two ocean gliders on three missions, collecting millions of data points from surface to depth from the chartered vessel F/V Ocean Pearl.

The gliders were loaned to the project by the Canadian Centre for Ocean Gliders.

40 BC Shipping News May 2014

with the international regime. If these impacts are not taken into consideration, major projects will be blocked by impacted groups. There are mechanisms in the international regime, such as MARPOL, to designate special areas for environmental protection. Canada also has the ability to impose regulations on shipping within its Exclusive Economic Zone (EEZ) under the provisions of the Law of the Sea Convention. Most marine traffic on Canada’s West Coast is destinational. We also share and co-manage marine traffic with the United States in Puget Sound. The waters of the Inside Passage also have a special status which allows American vessels to transit unimpeded to Alaska.

Presently, Canada has few vessels engaged in international trade and most West Coast exports are carried on foreign-flagged vessels. The global green shipping movement may be less known to West Coast residents.

There is an increasing need for a holistic approach to marine and ocean governance, of which, the regulation of shipping is an integral part. It cannot be separated from the broader concept of ocean management. Traditionally, shipping governance has operated in a specialized, highly developed regulatory regime both domestically and internationally.

At its foundation, ocean governance requires a true environmental or ocean picture which needs to be based on actual in-situ data collected by field sampling and analysis. Time-series data is required in order to understand trends and changes in the ocean environment. In the ocean, collecting data in a three-dimensional space is both costly and difficult, requiring specialized equipment, vessels and highly trained personnel. Increasingly, as technology advances, we are seeing more robotic ocean data collection using various apparatus and equipment, such as Underwater Autonomous Vehicles (UAV’s), ocean gliders, offshore buoys, drifters, Remote Underwater Vehicles (ROV’s), submersibles, aircraft, drones and space-based sensors such as Canada’s MDA Radarsat 2 satellite. This ocean data can be streamed in real time using a satellite uplink to the end user. The potential for the collection of ocean information is huge. Much of this world-class, cutting-edge technology has been developed and manufactured here on Canada’s West Coast. For example, the Institute of Ocean Sciences at Pat Bay on Vancouver Island has seen a cluster of ocean technology companies develop around it, providing innovative, technically advanced oceanographic services and products.

Unquestionably, the technology for ocean-data collection has advanced, however, the ability to access these various ocean-data sources has stalled. Therefore, critical information is not widely shared between groups. In many instances, the data remains the property of the individual ocean scientist or regulatory agency, often with little connection to the marine field. There is no central inventory of this information or a public data platform which end users can access. As well, space-based assets with a variety of sensors are increasingly being used for earth and ocean observation and provide vast amounts of raw data which require analysis. Further, much of ocean science is isolated in various groups, government departments, universities and individual scientists’ files. As we have seen in the news of late regarding the search for the Malaysian Boeing 777 MH370, an understanding of oceanography and ocean currents in the Southern Indian Ocean may well be the key to finding the missing aircraft. When (if) debris is found, oceanographers will have to reverse engineer the possible point

ENVIRONMENTAL NAVIGATION of impact using computer models based on ocean-data sets which have been collected. To take a risk-based approach to management of marine activities and shipping, we need ocean data and realtime information. Much like in my article on marine domain awareness (BC Shipping News, December 2013), having an ocean awareness is the product of the analysis of many different processes and sources. We need to realize that ocean data is derived from many sources.

In order to develop a baseline we must construct a multi-stakeholder plan, analyze the existing data for knowledge gaps and develop a plan to collect additional data to fill in those gaps.

It is critical to have this data with respect to vessel impacts from either operational matters or catastrophic one-time incidents. These low-frequency, highconsequential events attract the public’s attention. At its cornerstone, environmental navigation requires real-time information and readily accessible ocean data that provides decision-makers with information to manage future activities and respond when the inevitable marine incident occurs. This is a fundamental basis of risk management — having the best possible sources of information. A BC Marine Conservation Atlas has been developed, which is a good first step, but requires constant updating. This information is critical for environmental navigation on Canada’s West Coast.

Ocean science needs to be properly funded and undertaken on the West Coast if we are to have environmental navigation and sustainable shipping.

Science, based on abundant data, collected for the purpose of understanding the ocean system both nearshore and offshore, will provide decision-makers with the tools necessary to make factbased decisions when considering regulations and emergency response plans. Our understanding will change as new information is collected, analyzed and shared.

We need to examine how we will collect data to develop new and improved models and approaches using traditional ocean knowledge (TOK), citizen science, input from First Nations, coastal communities, regulators and other stakeholders along with the many new technologies available — many of which are Canadian made — to achieve this goal. Our economic future depends on collection analysis and sharing of ocean data which will

If nothing else, the BC Marine Conservation Atlas initiative showed how difficult it is to gather relevant and timely information on ocean use. allow Canada to employ world-leading environmental navigation standards to regulate its exports. This is at the heart of the global green and sustainable shipping movement — minimizing shipping’s environmental impact.

Canada’s West Coast can become a model for the world. The key is to approach the problem in a holistic, inclusive and collaborative fashion. In this way, the environmental impacts of shipping

can be minimized and Canada can regain its world stature in the regulation of shipping. We have no choice but to get this right on Canada’s West Coast. The stakes are too high.

Joe Spears has a deep background in ocean science issues and has undertaken oceanographic research and also seabird research with the Canadian Wildlife Service. He can be found at Twitter @TheNewOcean or email at kjs@oceanlawcanada.com

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May 2014 BC Shipping News 41

LEGAL AFFAIRS

Important changes to the Transportation Safety Board Regulations

By David S. Jarrett

A Vancouver Lawyer with Bernard LLP

O

n March 12, 2014 the Government of Canada published new Transportation Safety Board Regulations (the “Regulations”) pursuant to the Canadian Transportation Accident Investigation and Safety Board Act (the “Act”). The Regulations replace a former version that had been in force since 1992 but not amended since that date.

The Regulations contain two parts: Part 1, relating to mandatory and voluntary reporting of transportation occurrences, will come into force on July 1, 2014. Until that date, the current Part 1 will be in effect. Part 2, relating to investigations of transportation occurrences, are currently in force as of March 12, 2014. Compliance with the Regulations is mandatory.

The Federal Government has described the Regulations as being an update to reflect changes in the transportation industry that have occurred since 1992 and to make the Regulations accord with other legislation, international agreements and industry standards. This article will summarize some of the more important changes. Of note is the fact that the Regulations now incorporate and clarify previous Transportation Safety Board investigation policies and procedures that were not expressly set out in the previous regulations.

Although the Regulations deal with aviation, pipeline, maritime and railway matters, this article will focus on the marine aspect of the Regulations.

Background

The Regulations are made pursuant to the Act. The Act established the Transportation Safety Board to investigate transportation related accidents and to advance transportation safety by 42 BC Shipping News May 2014

As Part 2 of the Regulations are now in force and Part 1 will come into force on July 1, 2014, it is important that those in the marine community, including crew, are aware of their rights and obligations before an occurrence. conducting investigations to determine the causes and contributing factors of transportation occurrences.

The Board also identifies safety deficiencies and makes recommendations to reduce or eliminate the same and publicly reports on its investigations and findings following a transportation occurrence. The Board does not assign fault or determine criminal or civil liability for a transportation occurrence. The Board’s findings are not binding on any other disciplinary or legal proceeding.

Part 1 — Reporting of occurrences

The Regulations apply to all marine occurrences in Canada. Marine occurrences that must be reported to the Board are set out at section 3 of theRegulations and include death or serious injury sustained as a result of boarding, being onboard, falling overboard or coming into direct contact with a ship; persons overboard; crew member with duties directly responsible for safe operation of the ship is incapacitated and that leads to a threat to safety; sinking; foundering; capsizing; anchoring, grounding or beaching to avoid an occurrence; collision or risk of collision; grounding; unforeseen contact with the bottom; fire or explosion; fouling of cable or pipes; a vessel is missing or abandoned; shifting of cargo or cargo overboard; total failure of navigation equipment, propulsion, steering or deck machinery if such failure poses a threat to safety; total failure of the main or

auxiliary machinery; or a release of dangerous goods or radiation.

The Regulations define a “serious injury” as including fractures (not including simple fractures of fingers, toes or the nose), lacerations that cause severe bleeding or nerve, tissue or muscle damage, injury to internal organs, second or third degree burns (or burns over five per cent of the body), exposure to infectious substances or radiation, or an injury that is likely to require hospitalization.

These marine occurrences must be reported by the operator of the ship with direct knowledge of the occurrence, whether they are the owner, master, pilot, crew member or harbour master. Operators also include the operator (whether that is the owner or master) of a ship being towed by another ship.

The Regulations now provide that certain accidental releases of dangerous goods that are under the specific quantity for a particular dangerous good set out in Part 8 of the Transportation of Dangerous Goods Regulations no longer have to be reported.

A report must be made to the Board following a marine occurrence as soon as possible and by the quickest means available.

Occurrences can be reported via phone at 1-800-387-3557, 24 hours a day, seven days a week. A report must contain the information set out in the Regulations including but not limited to vessel identification details, the technical specifications of the vessel and a description of the incident.

LEGAL AFFAIRS Importantly, the Regulations now require that if the vessel is equipped with a voyage data recorder or a simplified voyage data recorder that the report must set out the type of recorder, including its make and model and any action taken or planned to be taken to save the recorder’s data.

Companies that have a large number of minor occurrences may enter into an agreement with the Board that allows flexibility in how and when occurrences are reported.

The Regulations also require that all evidence relating to an occurrence must be preserved unless the Board directs otherwise. Presumably, this creates an obligation on an operator to ensure that any onboard data recording systems are not automatically overwritten, erased or otherwise modified.

Part 2 — Investigations of occurrences

The Act allows an investigator to require that a person give a statement, other oath or solemn affirmation. Such statements are privileged in their use and is limited to the purposes set out in the Act or as altered by court order.

The Regulations now set out how interviews by the Transportation Safety Board are to be conducted. The Regulations now specify that interviews are to be held in private and are to be recorded. The person being interviewed can choose one person to accompany them during the interview as long as this individual is also not a witness. However, the investigator may exclude that person if they interfere with the proper conduct of the interview or disrupt the interview. Although the Regulations provide that representatives of the interview can be excluded, in our experience, a legal representative assists the witness by ensuring that he or she is treated fairly, the interviewer’s questions are clear, that only questions relevant to the investigation are asked, that any answers are also clear and that any ambiguities are dealt with before the interview is concluded. Legal counsel also ensures that the witness is fully informed of his or her obligations and rights in providing evidence. The fundamental right to have legal counsel at these interviews was established by the Federal Court in Re: Parrish, [1993] 2 F.C. 60.

Any attempt to exclude legal counsel for a witness is likely to result in a legal challenge.

The Transportation Safety Board will provide the witness with a copy of the statement made at an interview following receipt of a written request for the same.

As discussed above, the Act provides that such statements are privileged, and cannot be produced to third parties unless the interviewee waives that privilege or if a Court orders the statement be produced. In practice, the privilege provided for in the Act is somewhat of a leaky cup. In larger, more serious marine occurrences where other authorities, such as the RCMP or Transport Canada are involved, those other investigating entities may attempt to obtain the statement in the conduct of their investigations by seeking a court order for production of the same, without notice to the interviewee.

The Canadian Maritime Law Association has taken the position that witnesses’ rights must be protected by the Regulations and that if a witness chooses to waive privilege over his or her statement that it is done only on the basis of

informed consent. Of equal concern is the fact that a group of lawyers may be representing the witness’ interests in different proceedings that may be commenced following a marine occurrence. The fact that the Regulations only allow for one representative to be present at an interview may impact the witness’ right to consult with the right representative relating to specific issues as they come up in the interview.

Further information

As Part 2 of the Regulations are now in force and Part 1 will come into force on July 1, 2014, it is important that those in the marine community, including crew, are aware of their rights and obligations before an occurrence. The Regulations are short and relatively easy to understand and are available on the Transport Safety Board’s website.

David S. Jarrett is a maritime lawyer with Bernard LLP. He can be reached at jarrett@bernardllp.ca.

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www.daveroels.com 604.733.9222 / dave@daveroels.com

May 2014 BC Shipping News 43

TRAINING

CARGO LOGISTICS

UBC SailBot team takes on the Atlantic Ocean

H

aving received a perfect score for their efforts in the 2013 International Robotic Sailing Regatta, members of the UBC SailBot team have set their sights on the Microtransat Challenge — a transatlantic race of fully autonomous sailing boats. The fact that not one entrant has yet completed the trip has only serves to strengthen the team’s resolve.

BC Shipping News caught up with Team Captain Kristoffer Vik Hansen to learn more about the challenge, more about the team, and most importantly, more about the need for your support.

The UBC Sailbot Team has the smarts, the passion and the drive to meet the challenge of the Microtransat...However, they need your support...to fully realize the dream.

In 2012, the UBC Team took first place with a total score of 47 out of a possible 50, losing three marks during the fleet racing. In 2013, the UBC team earned a perfect score at the competition in Gloucester, Massachusetts — something never done in the history of the Sailbot Challenge. This June, the team will again compete in San Francisco at the California Maritime Academy.

About the same time SailBot was being established, Dr. Mark Neal of Aberystwyth University and Dr. Yves Briere of the Institut Supérieure de l’Aéronautique et de l’Espace in Tolouse, France, were developing the concept for the Microtransat Challenge. The challenge is a transatlantic race of fully autonomous sail boats. Since 2010, not one of the six teams who have tried the challenge has successfully completed the race. Indeed, none have made it even halfway and few have gone beyond four or five days of sailing before failing.

The rules are fairly straight-forward: no source of propulsion other than wind is permitted; the sailboat must not exceed four metres in waterline length; and must be fully and energetically autonomous (no operator control and must carry on board any required power). Launch sites are within prescribed longitude lines and teams are judged on how quickly the boat crosses the Atlantic.

Teams can launch their boat at any time during a calendar year.

The challenge

The idea of robotic sailboat challenges originated with UBC engineering student Erik Berzins in 2004 who invited students from a few engineering schools to Vancouver to demonstrate their newly built robotic boat. By 2006, the International Robotic Sailing Regatta (IRSR or SailBot) had been formed and teams from universities and colleges around the U.S. and Canada were stepping up to the challenge.

With rules in place to govern construction and operation, the basic concept is to build a two-metre long boat which can sail robotically by making its own onboard decisions about sail trim and course direction without human assistance. Teams are judged in five parts of the competition: Fleet Racing, Station Keeping, Navigation Contest, Presentation Challenge and Long Distance Race.

Photo courtesy UBC SailBot team

The team and the plan

The International Robotic Sailing Regatta 2013 awards ceremony with the UBC SailBot competition team.

44 BC Shipping News May 2014

Traditionally, all teams have launched their boats from Europe but the UBC SailBot team are planning to launch their boat from Newfoundland in the summer of 2015, estimating that it will take about two weeks to cross the Atlantic and land somewhere along the West Coast of Ireland.

With a team of about 45 students, mentor Don Martin (renown inventor of the Sip and Puff Sailboat used by Sam Sullivan and the Disabled Sailing Association) and advisors from engineering and design firms such as Robert Allan Ltd., STX Canada Marine, and Seaspan Shipyards, the UBC team began developing the plan for the 2015 race in 2013. Students fall into one of a number of sub-teams — mechanical, electronics, power, software and administration — and can spend anywhere between six and 15 hours per week depending on their responsibilities.

Their goal is to finish the construction of the boat and the software program by December with trials and refinements done through the spring of 2015.

The boat

The design of the boat has a waterline of 3.9 metres with a 5.46-metre length overall and a 1.8-metre draft. The cedar hull is being built using a “cold molded” construction method which involves building a skeletal mould to define the shape, then bending thin layers of cedar strips over the mould and laminating them together, followed by a carbon fibre laminate to make a very stiff, light and strong hull structure.

TRAINING While the Mechanical Team works on the hull, the Software team has been designing a path-finding algorithm prototype that navigates around simple obstacles to get to a destination. The software will have two main systems — the first is the low level control system which allows the boat to get from one point “on earth” to another; the second — key for crossing the Atlantic Ocean — is the route making system which will plan the route taking into account changing obstacles.

The boat will be equipped with such navigation aids as GPS and AIS as well as electronics for collecting weather data, wind sensors, and the ability to send information back to the team to allow for online tracking.

The need

The UBC Sailbot team has the smarts, the passion and the drive to meet the challenge of the Microtransat. Given their continual successes at the IRSR, it is widely recognized that they have the best chance of setting the world record as the first team to accomplish an autonomous sailing voyage across the Atlantic Ocean. However, they need your support — either through corporate sponsorships, personal donations or in-kind contributions — to fully realize the dream.

While labour may be free, materials and manufacturing are not. Tasked with developing an “innovative composite boat structure, a low power consumption electronics package, efficient software logic that includes obstacle avoidance, and a high-energy density battery system coupled with solar energy regeneration”, sponsorships are key to ensuring the team has appropriate funding to make this venture a success.

The most compelling reason to sponsor? Think of how your company will benefit by being associated with the future of the marine engineering profession. This high-calibre bunch are setting global standards for research and innovation in fields like marine robotics, energy efficiency and composite materials — concepts that could potentially benefit government, military and industrial interests. And your name will be associated with them. Enough said.

For more information about sponsorships, check out the team’s website at www.ubcsailbot.org or email Kristoffer Vik Hansen at captain@ubcsailbot.org to discuss your participation.

Go Team Go!

On behalf of BC Shipping News, best of luck to the UBC SailBot team...

Co-Captain Admin Kristoffer Vik Hansen Co-Captain Technical Karry Ocean Team Mentor Don Martin Mechanical David Tiessen (Mechanical Lead) l Neil Dobie (Mechanical Lead / Keel) l Gabriel Lessard-Kragen (Deck and Hardware) l Alexander Kroitzsch (Rig) l Robert Gage (Rudder and Skeg) l Jian Lik Ng (Hull Interior) l Eric Wang (Hull Interior) lJordan Wong (Hull Interior) l Madie Melcer (Keel) l Jacob Soleway (Hull Interior) l Matt Sullivan (Impact Mitigation) l Corey Monteith (Impact Mitigation) l Adrian Granchelli (Hull Shell) l Josh Hung (Rudder and Skeg) l Michael Schnetzler l Chris Bandy l Oleksiy Serdyuk l Brendan Sexton l Joakim Frimann-Dahl l Jeremy Wollin Electronics Tyler Jones (Electronics Lead) l Carley Schwartz (Sensor) l Ellinor Crux (Sensor) l Jamie Lee (Communication) l Rajat Dixit (Motor) l Tobias Kreykenbohm (Motor) l Tu Anh Le (Power) Software Josh Andrews (Software Lead) l Yasmeen Akbari (Route Making) l Rodrigo Blaustein (Route Making) l Arek Sredzki (GUI, Sailor) l Josh Baker (Control) l Daniel Kim (IO/Hardware) l Andrew Hollister (Control) l Bryan Luu (TB2013) l Eleanor Wong (GUI) l Alexey Indeev (Control) l Andrew Bowers (Control) l Kurtis Harms (GUI) l Gabriel Uribe (Route Making) Health and Safety Serena Ramley Logistics Muieen Cader Treasurer Alex Beacham Social Media Ivana Litaveez

May 2014 BC Shipping News 45

TECHNOLOGY

ADIS™ — An evolution in marine safety

By Andrew Weir-Jones, Operations Manager, The Weir-Jones Group of Companies

D

o you recall a time when the only way to measure the draft of a vessel was to stare at the draft marks on a cold and windy night, or to go alongside in a dingy in choppy water?

Now there is a much more accurate and convenient alternative.

Reliable and repeatable draft data can be displayed on the bridge irrespective of the conditions at the berth or in the anchorage. ADIS™, the Automated Draft Indicator System, is not only much more accurate and convenient than the traditional use of draft marks, but it is far less intrusive and requires much less maintenance than pressure-based systems located inside the hull below the waterline.

ADIS™ calculates the draft and freeboard based upon the distance from the transceivers to the mean water surface.

Unlike pressure-based systems, there is no need to correct for water density and temperature. ADIS™ provides a direct reading of the water plane position relative to fixed points on the hull — fore and aft, port and starboard, and amidships if there are concerns about hogging or sagging. And all without any hull penetrations above or below the waterline.

The through-hull penetrations below the waterline required for pressure-based draft monitoring systems can be managed and maintained, albeit with a degree of difficulty and cost. However, a “dry”

The Automated Draft Indicator System, is not only much more accurate and convenient than the traditional use of draft marks, but it is far less intrusive and requires much less maintenance than pressure-based systems... option exists, and most mariners lean towards ‘no through hull penetrations’.

In addition, sea creatures make the pressure ports home, compromising the functionality of the transducers, rendering the pressure-based system’s reliability ‘questionable’, and necessitating maintenance in dry dock.

ADIS™ was developed with the assistance of the British Columbia Ferry Corporation in 1995. Since then, it has provided hundreds of millions of realtime draft measurements on the West Coast. It has become the ‘go-to piece of equipment’ for operators and regulatory agencies in Alaska, British Columbia and Washington State when there is a need to confirm that passenger vessels are operating safely and within design parameters.

The tangible results operators obtain from their ADIS™ installations are: • Continuous and accurate draft data displayed in real time on the bridge and elsewhere.

• Time-stamped, hard-copy draft readings ready for insertion into the log books.

• Ultra-reliable, high-resolution displays.

The updated version of the ADISTM from the Weir-Jones Group provides enhanced features for users.

46 BC Shipping News May 2014

• Over 50,000 hours MTBF. • Ease of maintenance.

• Immediate-issue resolution with no debate about the actual draft or freeboard.

The original version of ADIS™ was very reliable and met the originally defined needs of operators. However, recent studies in Europe and elsewhere have demonstrated that properly trimmed vessels, running either in ballast or loaded, operate more efficiently — up to a five per cent fuel savings — and consequently have less impact on the environment than non-trimmed vessels. ADIS™ is capable of providing accurate draft measurements to better than 10 mm, critical, considering the benefits resulting from reduced fuel consumption and better sea keeping.

The ability to trim a vessel accurately and consistently is of great value when optimizing fuel consumption or maximizing speed. ADIS™ can provide real-time water plane data to ballast control systems to minimize fuel consumption by allowing the control system to react to current trim and sea-state conditions.

All this is what ADIS™ currently does for users including major ferry fleet operators and the U.S. Navy. Now, ADIS™ has been updated — the existing features retained and new ones added -- to make it even more useful for vessel operators.

In addition to the capabilities described above, the system now incorporates the following features: • Wi-Fi, cellular and satellite communications for data delivery to a variety of end users; owners masters, operations, HS & E, personnel, etc.

• Remote system health monitoring and diagnostics on a 24/7 basis for pre-emptive planned maintenance or for immediate service of faulty components.

• An automatic software download/ updates option. Irrespective of the vessel’s location, the latest software

TECHNOLOGY updates can be installed at the next port-of-call if the operator selects this feature.

• Secure Android/iPhone applications for remote real-time monitoring of the vessel’s draft away from the bridge or even away from the vessel.

• Streamlined installation procedure.

• Easily replaceable ‘service’ modules. In the unlikely event of a component failure, and when there is not a spare on board, a replacement can be shipped to the next port-of-call.

• Extensive data logging and reporting functionality.

• Windows-based, hi-resolution bridge and deck displays.

• Expanded user features.

• Expanded display features.

By releasing the second generation ADIS™ and the Version 7 software, a world-class product is available which preserves the previous version’s reliability, adds a number of user-requested features, and, when using shipyard electricians to install the system, the remote health monitoring and diagnostics feature

The difference between knowing that the keel will clear the threshold of a lock by 10 cms, and hoping that it will clear it by 25 cms can mean two thousand tonnes of additional cargo and profit on a round trip. eliminates the need for factory personnel to be present. The system integrity can be remotely verified, the installers assisted if necessary, and any software changes downloaded.

With the original version of ADIS™, there was the potential inconvenience to owners that factory personnel had to perform routine software updates. Now, the new system simply ‘checks in’ when it detects cellular coverage; ADIS™ then automatically downloads, updates and reports that they are available for installation. An alternative procedure allows software updates to be installed using a local Ethernet connection.

The potential for optimizing trim in real time and maximizing fuel efficiency is not the only economic benefit that ADIS™ offers. The difference

between knowing that the keel will clear the sill or threshold of a lock by 10 cms, and hoping that it will clear it by 25 cms can mean two thousand tonnes of additional cargo and profit on a round trip. On this basis, ADIS™ offers an immediate and very direct benefit to vessels which have to transit locks or operate in shoaly waters.

Today it is essential to operate safely and efficiently at all times. Acceptable margins of error are diminishing, and owners/operators are likely to be held accountable for what once would have been considered as ‘accidents’ by regulators or the public. In these situations, ADIS™ provides information which not only demonstrates a responsible attitude but saves money too.

Speakers include

MAY 28-30, 2014 VANCOUVER B.C., CANADA

CROWELL & MORING • CANNOR • YUKON COLLEGE FASKEN MARTINEAU • COPENHAGEN BUSINESS SCHOOL DELOITTE • KIVALLIQ ENERGY • STATE OF ALASKA DNR NATURAL RESOURCES CANADA • NUNAVUT TUNNGAVIK PT CAPITAL • LUMOS ENERGY • AALBORG UNIVERSITY SEA BREEZE POWER CORPORATION • MARSH CREEK WESTERN COPPER AND GOLD • CENTRE FOR THE NORTH YESAB • AANDC • AIDEA • PARTNERSHIPS BC • NORTHWEST TERRITORIES POWER CORPORATION • BEACON POWER MILLROCK RESOURCES • NOVACOPPER • NANA DIAVIK DIAMOND MINE • GOVERNMENT OF NORTHWEST TERRITORIES • URS CORPORATION • PROLOG • DONLIN GOLD • NUNAVUT IMPACT REVIEW BOARD

Effective Governance • Sustainable Communities • Increased Social License • Successful Northern Resource Economies

Attendees from Alaska, Canada, and Greenland industry and the support sector; agency officials and policy makers; community leaders and researchers

M AN Y T H AN KS TO SPO NSO RS, INC LU D ING : B ER IN G STRAI TS N AT I V E CO R P O RAT I O N , B C S HI P P I NG , HDI , KI E W I T M I NI NG , HDR, AND C AM A

Registration and agenda online at www.institutenorth.org/NRMS

May 2014 BC Shipping News 47

TECHNOLOGY

CARGO LOGISTICS

A revolutionary advanced nanotechnology for trucking, heavy duty equipment and marine fleets

By Barry Good, President & CEO, Cealtec Products Inc.

C

ealtec Products Inc. of Richmond, B.C. is breaking new ground in the nanotechnology sector and applications for trucking, heavy duty equipment and marine fleets. As the exclusive manufacturer and global distributor for CealDoctor™ Self-healing Engine Treatments, Ceatlec is using a revolutionary technology developed in Korea which uses Pulse Wire Evaporation (PWE) Technology to create advanced nano particles that, when suspended in motor oil, bond to the cylinder walls and piston rings of combustion engines on a molecular level. This means that the particles contained in the CealDoctor™ Self-healing Engine Treatments actually become part of the engines to which they are added.

Because atoms and molecules have complementary shapes, they lock together. Much like ball bearing magnets, a positively charged atom will stick to a negatively charged atom. As millions of these atoms are pieced together by nano-machines, a specific product will begin to take shape. The goal of molecular manufacturing is to manipulate atoms individually and place them in a pattern to produce a desired structure.

What is nanotechnology?

Nanotechnology is the engineering of tiny machines — the projected ability to build things from the bottom up inside personal nanofactories (PNs) using techniques and tools being developed today to make complete, highly advanced products.

Ultimately, nanotechnology will enable control of matter at the nanometer scale using mechanochemistry. The envisioned molecular machinery that is created will ultimately result in a manufacturing revolution, probably causing severe disruption to the norm. It also has significant economic, social, environmental and military implications.

48 BC Shipping News May 2014

Among the many benefits of CealDoctor, increased engine power provides a compelling argument for its use.

The goal of molecular manufacturing is to manipulate atoms individually and place them in a pattern to produce a desired structure.

A nanometre is one billionth of a metre, roughly the width of three or four atoms. The average human hair is about 25,000 nanometres wide.

CealDoctor™ is a true nano product that can be used in almost any type of fossil-fuelled combustion engine. Metal nano powders are used to recover the damaged areas of the engine’s cylinder walls and rings because the parts of the engine being targeted are metal.

Most conventional engine treatments are made with Molybdenum Disulfide (MoS2), graphite and Polytetrafluoroethylene (PTFE) — ingredients that easily degrade in high-temperature environments. CealDoctor™ does not use these ingredients. Rather, it is a completely different technology that uses Copper-Nickel (Cu-Ni) alloy nano particles that permanently bond into the micro pores and damaged or worn areas to improve the affected area. It does not oxidize under high temperatures. This means that frequent re-application is not necessary. New, rebuilt and high-mileage engines or high-hour power plants can see improvements.

CealDoctor™ improves engine and power-plant performance as it: • Reduces harmful CO2 emissions and reduces oil consumption • Extends the life cycle • Reduces smoke by as much as 30 to 40 per cent • Improves engine power and fuel economy by up to 15 per cent • Reduces noise and vibration • Reduces oil consumption and extends life of additive package • Reduces maintenance costs and provides an excellent ROI Cealtec™ is actively working with major trucking and marine fleets around the world and is very interested in developing strategic alliances and partnerships in North America.

Visit CealDoctor’s website at www.cealdoctor.com.

MARITIME SECURITY

Maritime Security Challenges Conference to focus on Pacific seapower Jacquie Brower-Berkhoven

Research Assistant, Maritime Forces Pacific, International Engagement Section

S

eapower is enormously important for nations that depend on seaborne trade. As Rear-Admiral Bill Truelove, Commander Maritime Forces Pacific (MARPAC) explained, “Canada is a maritime nation whose economy is reliant on the safe passage of commerce across the oceans of the world. The oceans underpin Canadian economic prosperity, both domestically with respect to our gross domestic product and internationally with respect to Canada’s participation in the global economy.” With the economic and geopolitical shift towards the Pacific, the importance of seapower in this strategic maritime realm has increased considerably and this, in turn, raises the need for dialogue amongst stakeholders.

The Maritime Security Challenges 2014 (MSC14) ‘Pacific Seapower’ conference

With the economic and geopolitical shift towards the Pacific, the importance of seapower in this strategic maritime realm has increased considerably and this, in turn, raises the need for dialogue amongst stakeholders. provides an avenue for such dialogue through five topical panels including: The Naval Rebalance to the Pacific; Building the Fleets of Tomorrow; The Expansion of Economic and Commercial Activities at Sea; Navigating Maritime Disputes; and Technology and Naval Operations.

Building on the success of five previous MSC conferences, MSC14 will bring an exclusive contingent of senior professionals from the maritime security sector to Victoria, British Columbia, from October 6 to 9, 2014, to examine some of

the complex and challenging issues currently unfolding in the Pacific maritime domain. Over the course of the four-day event — hosted by the Navy League of Canada with programmatic support by the Royal Canadian Navy (RCN) and the Asia-Pacific Center for Security Studies in Hawaii — attendees will have the opportunity to hear from subject matter experts and to participate in formal question and answer periods with the speakers, as well as benefit from informal networking opportunities with a wide range of

Excercises like RIMPAC provide valuable opportunities for navies from countries like the U.S., Australia, Canada, South Korea and others to co-ordinate security practices that serve to benefit global maritime commerce.

U.S. Navy photo by Mass Communication Specialist 3rd Class Kyle D. Gahlau (Released)

May 2014 BC Shipping News 49

MARITIME SECURITY international delegates. The value of this conference is underscored by the inclusion of an array of notable leaders, including Vice-Admiral Mark Norman, Commander RCN and Admiral Harry Harris, Commander US Pacific Fleet.

The Asia-Pacific region is booming with maritime activity. Nine of the top 10 container ports in the world are in Asia; the Asia-Pacific region constitutes the heart of worldwide commercial shipping networks; and Asian navies are increasing in strength and capability while traditional naval powers in Europe and the West are in a state of numerical decline.

As the Pacific region continues to grow as the global centre of maritime activity, security analysts have been voicing concerns that a regional naval arms race is underway. During MSC14, subject matter experts, including Dr. Geoffrey Till of the United Kingdom Defence Academy, will discuss the naval rebalance in the Pacific. Dr. Till and his fellow panelists will examine the political and military ramifications of these developments for regional states and internationallyengaged naval powers, and will consider

50 BC Shipping News May 2014

As the Pacific region continues to grow as the global centre of maritime activity, security analysts have been voicing concerns that a regional naval arms race is underway. the advent of more capable Asian navies as foreshadowing an increase in maritime tensions.

The maritime realm is one that is still dominated by navies, coast guards and other state-level maritime agencies.

As maritime planners look to build the navies of tomorrow, they are confronted by an array of challenges. As the Royal Australian Navy’s Air Warfare Destroyer project has demonstrated, a lack of labour and construction expertise can be very costly and can affect other procurement programs. A lack of defence resources, especially in the aftermath of the global financial crisis, has made the building and modernization of fleets in the Western world particularly challenging.

Participants at MSC14 will have the opportunity to compare indigenous construction with foreign procurement, to

examine the value of looking to the commercial sector for best practices, and to consider the possibilities for partnerships in naval development projects.

Any discussion of seapower requires not only an examination of navies and warships, but also an analysis of the nonmilitary aspects of sea use. Since seabased capacity influences events both at sea and on land, an equally important component of seapower is a state’s ability to exploit the sea for commercial and economic purposes. The expansion of the Panama Canal, for instance, will have a dramatic impact on global trade routes and will expand economic activity across the Pacific. During MSC14, delegates will discuss economic opportunities in the maritime realm, the considerations made by states and companies operating in contentious maritime areas, and the

MARITIME SECURITY Naval and industry professionals will look at technology and naval operations in the Pacific by examining whether technological superiority is still a force multiplier...

Rear-Admiral Bill Truelove, Commander Maritime Forces Pacific (MARPAC) at MSC12. potential for international co-operation to ensure the stable flow of trade.

Offshore resources and the growing importance of seaborne trade have increased the risk of conflict associated with unresolved maritime boundary disputes. Rising tensions related to these disagreements are perhaps the most likely source of conflict in the maritime realm. Maritime disputes near critical shipping lanes can prove very costly to businesses as increased risk and instability lead to higher insurance premiums, greater fuel costs, and higher crew rates, which, simply put, are bad for business.

There are numerous perspectives to consider when analyzing maritime disputes in the Pacific and the ways in which conflict can be averted. MSC14 will feature a panel covering the American, Malaysian, and Chinese perspectives on navigating maritime disputes. This panel will be followed by a special presentation from Dr. Hasjim Djalal, the Senior Advisor to the Indonesian Minister for Maritime Affairs and Fisheries, and to the Indonesian Naval Chief of Staff, who will comment on the Association of Southeast Asian Nations’ (ASEAN) approach to mitigating some of these challenges.

Technology is a leveler of the battlefield, and states across the Pacific are modernizing their maritime forces. Much of the equipment in service with these

forces has never been battle-tested and past experience shows that well-worn theories, tactics, and equipment can prove unsatisfactory when subject to the uncertainties of modern combat. These uncertainties raise questions about the risks posed to navies by emerging technological developments. Naval and industry professionals will look at technology and naval operations in the Pacific by examining whether technological superiority is still a force multiplier, and what platforms or weapons might prove decisive in tomorrow’s maritime operations.

A major addition to MSC14 will be a special roundtable discussion led by Dr. Jim Boutilier, Special Advisor to Commander MARPAC. By drawing upon the themes of the previous two days’ panels, experts will comment on the

future of navies and naval operations in the Pacific and will provide opportunities for conference attendees to join the debate.

By engaging preeminent commentators, and offering valuable networking opportunities, the MSC conference will continue to be one of the most dynamic maritime security events of its kind in North America. For more information on MSC14, please visit www.mscconference. com, and join us on Facebook, YouTube, and our conference blog mscconference. wordpress.com for regular event updates and articles on conference issues. Also, be sure to check out upcoming issues of BC Shipping News for articles related to the topics that will be covered in Maritime Security Challenges 2014 conference panels.

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www.aarc-west.com/www.awcoatings.com May 2014 BC Shipping News 51

MARITIME SECURITY CHALLENGES 2014 OCTOBER 6-9, 2014

l

VICTORIA, B.C. CANADA

Presenting topical maritime security issues on the edge of the Pacific.

• The Naval Rebalance to the Pacific

Photo: Master Corporal David Singleton-Browne, Canadian Forces Combat Camera

• Building the Fleets of Tomorrow • The Expansion of Economic and Commercial Activities at Sea • Navigating Maritime Disputes • Technology and Naval Operations • The Future of Navies

Find out more about conference speakers and the MSC 2014 programme.

Register now for special Early Bird Rate.

www.mscconference.com

Presented by The Navy League

In co-operation with Maritime Forces Pacific of the Royal Canadian Navy

Asia-Pacific Center for Security Studies

Connect with maritime and industry leaders!

Contact the MSC 2014 Secretariat to join the growing list of sponsors.

250.472.7644 / msc@dearmondmanagement.com 52 BC Shipping News May 2014

CARGO LOGISTICS BOOKS

Learn more...

Explore the world of shipping — the legacies, the history and the influence of seafarers and shipbuilders from years ago.

The following books from Seawaves Press are available for purchase by calling the BC Shipping News administration office at: 604-893-8800 or by email to jane@bcshippingnews.com.

T

wenty-one repair ships were ordered by the Royal Navy from North Vancouver shipyards in the Second World War. Sixteen were commissioned by the end of hostilities with the other five completed as cargo ships. These ships served for over 60 years in the Royal Navy, Royal Canadian Navy and Royal Netherlands Navy. This is their story. 6 X 9 glossy covered profusely illustrated. Price: $17.95 (Cdn) plus GST (includes shipping and handling).

N

orth Vancouver was once home to the largest shipyard in Canada and this book tells the story of the naval ships built there for the Royal Canadian Navy and the Royal Navy. These ships included famous types such as Bangor Class minesweepers, Flower Class corvettes and destroyer escorts of the 1950s and 1960s. With the National Shipbuilding Procurement set to order $8 billion worth of non-combatant ships to Seaspan of North Vancouver, this book details the heritage of this area of shipbuilding excellence. Illustrated. Price: $32.95 (Cdn) plus GST (includes shipping and handling).

L

ife and times of Commander Peter G Chance RCN (Ret’d) details his childhood and eventual service in the RCNVR and transfer to the RCN. Witness to the Battle of Britain, Battle of the Atlantic, North Sea convoy battles, Japanese invasion of Singapore, Mediterranean combat and the loss of HMCS Skeena. Postwar service saw Chance as 1st Lt of HMCS Iroquois and Cayuga, the latter seeing combat in the Korean War, and navigator of HMCS Ontario at the Coronation Review in 1952. Later, he commanded a frigate and a destroyer as well provided service as Executive Officer of HMCS Shearwater, Canada’s home of naval aviation. Illustrated. Price: $22.95 (Cdn) plus GST (includes shipping and handling).

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ifty escort aircraft carriers were mass-produced at Henry J Kaiser’s Vancouver Shipyard in Washington State and are dubbed the Kaiser Carriers. The Kaiser input into shipbuilding during the Second World War, with yards built on the Columbia River which employed 40,000, were able to use hydroelectric power from two dam projects built during the Great Depression. An incredible 141 military ships were built in just 44 months: 10 Liberty variants, 30 tank landing ships (LST), 50 Kaiser Class escort carriers, 31 attack transports (APA), 12 troop transports (AP) and two floating drydocks.

These ships, a tribute to American industrial and military capability, are brought together in this illustrated book which has the service history of each ship. Paperback 6 x 9 inches. Price: $22.95 (Cdn) plus GST (includes shipping and handling).

May 2014 BC Shipping News 53

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BC SHIPPING NEWS

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Commercial Marine News for Canada’s West Coast.

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