Marine Delivers Magazine 2017 online

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Clean. Green. Safe. Smart. Cutting edge performance for a sustainable future on the Great Lakes. 3


WE ARE PROPELLED BY OUR MARITIME PASSION Our range of marine services is the most comprehensive in the industry. Whatever your needs in ship construction and repair, dredging, specialized equipment rental, harbour towing or marine transportation, our expertise and creativity will be useful in providing you with ingenious solutions tailored to your needs. 4




Chamber of Marine Commerce EDITORS


Sophie Belina Brzozowska



SPIN Visual Communications 613-254-5740 EDITORIAL OFFICE

350 Sparks, Suite 700 Ottawa, Ontario Canada K1R 7S8 Tel. 613-233-8779



7 FROM THE PUBLISHER Ushering In a New Season Copyright 2017 Chamber of Marine Commerce The content of Marine Delivers Magazine may not be reproduced without prior written consent. Printed in Canada. Cover Photo: The Baie St. Paul in the Thousand Islands. Photographer: Jason Desjardins

9 Message from the Minister of Transport

30 NEWS UPDATES Shipping contest boosts awareness of sustainable shipping

12 NEWS UPDATES Port of Goderich delivering $16.8 million expansion

31 K+S Windsor Salt’s $60m Great Lakes mine expansion

13 McKeil Marine hiring to deliver business expansion

32 ECONOMIC DEVELOPMENT Ship repair yards boost economic fortunes of local communities

14 New horizons for the Chamber of Marine Commerce 18 ENVIRONMENTAL STRIDES 8 new eco ships set sail in 2017

20 Green Marine – reducing shipping’s environmental footprint


28 ECONOMIC DEVELOPMENT Canada 150: Let’s not forget a rich maritime dimension

11 Message from Congressman Bill Shuster

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23 IN CONVERSATION McAsphalt Industries 26 PORT SPOTLIGHT Port of Chicago

36 Great Lakes-Seaway delivers BIG for industrial, energy sectors 38 CargoM unites stakeholders for multi-modal strategy 40 SAFETY STORY Canadian Seaway safety culture 43 LOOK AHEAD 2017 Great Lakes economic pace improves 44 Industry executives’ forecasts 46 Advertisers’ Index


A FLEET THAT’S READY FOR ANYTHING. Experienced and adaptive, we deliver turnkey solutions that support customer success in a wide range of transportation and project challenges. Safety, quality and respect for the environment are at the heart of our operations. Manned by highly skilled sailing crew, our ever-growing diverse and versatile fleet of tugs, barges, workboats and vessels operate throughout the Great Lakes, St. Lawrence River, East Coast and Canadian Arctic.



McKeil Marine’s Evans Spirit is the proud recipient of International Bulk Journal’s 2016 Bulk Ship of the Year Award.

From the Publisher



s our members gear up for a new shipping season with the opening of the St. Lawrence Seaway this month, the Chamber of Marine Commerce finds itself at the beginning of its very own “new season.” The Chamber rang in the start of 2017 with its merger with the Canadian Shipowners Association completed, new staff members and an expanded board of directors, all of which puts the association on course for a successful future. You can read about the Chamber’s New Horizons and next steps on pages 14-16. As many of you know, I’ve also embarked on a “new season” in my career as I took over the role of Chamber President. As a former railway guy and multi modal consultant, transportation and government relations are in my wheelhouse so I expect to have my sea legs quickly. Just a few months in, I’m already truly impressed by the industry’s commitment to investing in people, innovation, safety and the environment. Many of these great stories are illustrated in this edition of Marine Delivers Magazine. Seven new eco ships are arriving in the Great Lakes-St. Lawrence region this year (pages 18-19). The industry’s environmental improvement program Green Marine is marking its 10th anniversary with North American-wide expansion and recognition from all corners, including a recent shout out by Canadian Transport Minister Marc Garneau for new performance indicators for shipowners and ports to reduce underwater noise impacting marine mammals (pages 20-22). The St. Lawrence Seaway Management Corporation is seeing great results from its efforts to keep staff, contractors and vessel crew safe along its stretch of locks, canals and channels. (pages 40-41) Through my many recent conversations with members, I know that inland and coastal shipping in Canada and the U.S. has tremendous capacity to grow. The 2016 shipping season was a tough one for many due to global economic conditions, but that hasn’t stopped our members from pursuing new business ventures by expanding their operations or chasing new customers and cargo. The significant surge in traffic in Q4 also led to end-of-year optimism going into 2017. The Port of Goderich is expanding its infrastructure (page 12); the Port of Chicago is devising a new plan to boost revenues (pages 26-27), Heddle Marine is opening a ship repair yard in Thunder Bay (pages 32-34) and McKeil Marine has been adding vessels and contracts (page 13), all of which means more well-paying, family-supporting jobs and economic spinoffs for Great Lakes communities. Shipments of high-value cargo like oversized factory components and wind turbines are up 17 per cent via the Seaway to U.S. and Canadian ports and this is just one example of how our inland waterways deliver for the manufacturing and energy sectors and do double duty of minimizing disruption on our highways and railways. These are exactly the kind of stories that our industry needs to press upon political representatives at all levels of government in Canada and the U.S. And I encourage all of our readers to use this magazine as a tool to help spread our good news as far and wide as possible. Inland and coastal vessels compete with rail, trucks, pipelines, airplanes and even drones. But the same competitive forces also exist in other parts of the world like Europe, where “shortsea shipping” (water transportation of cargo and people that does not cross oceans) accounts for 40 per cent of all freight moved on that continent. The difference: the European Union and its citizenry understand that moving cargo and people by water alleviates congestion, decreases air pollution and reduces costs for both society and industry. They actively support government policies that market and encourage its growth. Inland and coastal shipping is certainly on the political radar and I welcome Minister Garneau’s comments on page 9 of this magazine and U.S. Congressman Bill Shuster’s letter outlining new efforts to improve infrastructure and dredging money in the U.S. Great Lakes on page 11. But much more can be done to capitalize on the economic and environmental potential of marine shipping. I intend to work with our members and other marine shipping associations and stakeholders to redouble our efforts to usher in a “new season” of advocacy that puts marine back at the forefront of national transportation strategies. 7

PORT OF HAMILTON Sourthern Ontario’s

Gateway to the



YOUR BEST MOVE ON THE GREAT LAKES The Port of Hamilton is the largest Canadian port on the Great Lakes. With numerous Seaway-depth berths, shippers through the Port of Hamilton have access to shipping destinations in the Great Lakes and around the globe. Handling, transloading and storage of a wide range of commodities:

dry bulk • liquid bulk • breakbulk project cargo & containers why not find out more? Call 1.800.263.2131 or visit 8



he Government of Canada knows how important the marine sector is to our country. Almost a fifth of the volume of goods we export to the United States go by ship, as do over 95 per cent of the volume of goods and commodities we export to other countries. The performance of our marine sector directly affects the ability of Canadian firms to compete in the global marketplace. But to keep our competitive advantage, we must modernize our transportation infrastructure and strengthen trade corridors and gateways to markets. To that effect, we are looking at ways to realize the full economic potential of our coasts and waterways over the long term, including the Great Lakes-St. Lawrence Seaway system. In our strategic plan for the future of transportation in Canada – Transportation 2030 – we envision a safe, secure, innovative and integrated maritime transportation system that supports trade and economic growth and a cleaner environment. As part of that plan, we will allocate $10.1 billion to transportation infrastructure projects that will allow people and goods to move more efficiently at gateways, along corridors and out to global markets. On the infrastructure front, we are already seeing benefits from the Government of Canada’s investments. For instance, the expansion of the Roberts Bank Rail Corridor in British Columbia has increased the flow of trade between Canada’s largest port and the continental rail system. Improvements at the Port of Halifax allow it to accommodate the next generation of container ships, while improving facilities for value-added trade. And I had the pleasure of attending the inauguration of the new container terminal in the Viau sector of the Port of Montreal, which will increase the capacity and efficiency of the Port. While we want our marine trade corridors to be competitive, we have to balance growth in the marine sector with protection of the environment. That is why we recently launched our new national Oceans Protection Plan. The goal of this plan is to protect Canada’s coasts and waterways. With the Oceans Protection Plan, Canada will have one of the best marine safety and emergency prevention and response systems in the world. We’re going to get tough on businesses and industries that pollute along our coasts. As part of the new marine safety system, we’re going to collect and share better information on vessel traffic with Indigenous and coastal communities, so we can work together to prevent and respond to oil spills. The Government of Canada will expand the Canadian Coast Guard’s role in monitoring marine traffic and acting as a first responder to marine incidents. Enhanced resources will be provided to the Coast Guard, including new rescue stations, new towing capacity, and new communications equipment. And we’re going to preserve and restore our marine ecosystems. Implementation of our Oceans Protection Plan will begin next year and involve more than $1.5 billion in funding over five years, starting in 2017-18. The Honourable Marc Garneau Minister of Transport 9


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s Chairman of the U.S. House of Representatives Committee on Transportation and Infrastructure, I am honored to once again share my thoughts with the Chamber of Marine Commerce in this edition of Marine Delivers Magazine. The election of 2016 brought many issues to the forefront, but none garnered as much agreement among the American people, elected officials and the business community more than the need to invest in our aging infrastructure. Working with our new President and leaders throughout Congress, I am committed to making our national transportation and infrastructure network more efficient, more competitive, and more prosperous. The United States and Canada share a rich history as maritime partners. We have a tradition of providing goods to the rest of the world through safe, secure, efficient and environmentally responsible marine transport. And when our infrastructure is the best in the world, the potential for growth and economic prosperity is endless. The Great Lakes and St. Lawrence Seaway System is a lifeline for commerce that connects communities across North America with destinations and customers around the world. We know that maritime transportation eases highway congestion, minimizes gas emissions and links trade partners unlike any other mode. Our shared commitment to that concept must come in the form of investment in our ports and waterway infrastructure. In the United States, the highlight of our commitment to improve our infrastructure was the recent passage of the Water Infrastructure Improvements for the Nation (WIIN) Act. The WIIN Act is comprehensive legislation to address the needs of America’s harbors, locks, dams, flood protection, and other water resources infrastructure critical to the Nation’s economic growth, health, and competitiveness. The WIIN Act promotes transparency and fiscal responsibility while making the necessary investments in water transportation infrastructure. This provides certainty and confidence to the private sector, which relies on free and open water navigation to stay in business. A product of bicameral negotiations to improve critical infrastructure and strengthen the economy, the WIIN Act’s central provision is the Water Resources Development Act (WRDA) of 2016, which overwhelmingly passed Congress. WRDA authorizes the Army Corps of Engineers to undertake port, waterway, and flood protection improvements across the country. In addition, WRDA authorizes infrastructure improvements that have been proposed at the local level, reviewed by the Corps according to strict congressionally established criteria, and submitted to Congress for consideration. As I’ve often said, at its core, WRDA is a jobs bill because it increases infrastructure construction activity, increases the movement of goods manufactured in North America, and strengthens the maritime connection between the United States and Canada by making ports more accessible and easier to navigate. Not only was the WIIN Act a great accomplishment and a significant investment in our transportation infrastructure, it also reestablished Congress’ commitment to addressing these vital infrastructure needs on a regular two-year basis. Our work and focus on WRDA legislation will continue in the 115th Congress in order to bring prosperity to the American people and our partners in Canada through robust infrastructure investment. Thank you for allowing me to be a part of this annual publication and know that I consider us partners in the work yet to be done to improve and maintain our vital transportation connection. 11

News Updates



he Port of Goderich will embark on a 4-acre wharf and dock expansion that is expected to bring new business and economic spinoffs to the town and the surrounding region. Construction on the $16.8 million project begins this spring and the wharf and new dock will be open for business in the autumn of 2018. The investment is being paid for out of port user fees and CA$15.7 million infrastructure improvement grant from the Province of Ontario. The Port of Goderich is owned by the Town of Goderich and managed by the Goderich Port Management Corporation (GPMC), a not-for-profit organization comprised of commercial port users. The only deepwater port on the east shore of Lake Huron, the facility is an important hub of commercial shipping in southwestern Ontario. Approximately 250 ships dock within the Port of Goderich annually, loading salt from the nearby Compass Mineralsowned mine to deliver throughout the bi-national Great Lakes-St. Lawrence region; grain exports on behalf of


local farmers to U.S. and international markets and importing calcium chloride for dust-control on area roads. “Currently, the port is constrained by space. We’ve had a lot of requests to move different cargoes such as aggregates and project cargo in and out of the port that we haven’t been able to accommodate,” says Rowland Howe, President of the Goderich Port Management Corporation. “This expansion allows us to diversify and

port would be best positioned to target importing agricultural inputs such as fertilizer, specialty aggregates that are not available in the region and project cargo such as components for regional wind farms under development. Mayor Kevin Morrison said: “I am excited as Mayor that we will be creating more land in the Goderich Harbour for future use by new users of the Port, which will increase marine activity to an already extremely busy Port. This phase


attract new cargoes and business to the port.” The expansion will allow more loading/ unloading space for ships; additional storage space for other products, and engineering works that will improve wave and wind protection for the inner harbour. A recent marketing survey from transportation consultants CPCS determined that the

of development will be creating approximately 5 acres of land and create jobs during the construction phase and be a positive economic stimulus for future development and other phases of infill in the harbour area. The support of the Town, Province and current users as partners in this project have made it a reality.” n

News Updates



amilton-based McKeil Marine has created more than 80 new full-time sailing and shorebased jobs in Canada to support its business expansion. Over the past 18 months the company has acquired two bulk carriers, the Evans Spirit and the Florence Spirit; a cement carrier, the Stephen B. Roman; announced a new partnership through TorQuest Partners’ equity investment, strengthening the company’s foundation for further growth; and landed a longterm contract with Essroc Canada that will add another vessel to its fleet for 2018. The expansion has led to a major recruitment drive over the months to attract crew and business support staff. “These are Canadian-flagged vessels with Canadian crews that operate in the Great Lakes-St. Lawrence waterway and the East Coast. We’re proud to be supporting well-paid, highly skilled jobs

for Canadians,” says Steve Fletcher, President of McKeil Marine. The Evans Spirit is a cargo ship with the shallow draft characters of a tug and barge; however, compared to a tug-and-barge unit, she can transport approximately 40 per cent more cargo about 50 per cent faster on a very similar amount of fuel. The Evans Spirit won the International Bulk Journal’s 2016 Ship of the Year Award.

A modern, gearless bulk carrier with four cargo holds, the Florence Spirit is capable of carrying 13,500 metric tons. Trading predominantly between the Great Lakes and the Maritimes, the vessel will carry powdered cement and raw materials for the cement industry, amongst other bulk cargo. In January 2017, McKeil Marine announced that it had entered into an agreement with Essroc Canada, a part of Lehigh Hanson, Inc., to provide a cement vessel for the transportation of various cement products from Essroc’s production facility in Picton, Ontario to their terminals in Lake Ontario and Lake Erie. McKeil Marine has acquired and will operate Essroc’s vessel, the Stephen B. Roman, to provide cement transportation services during the 2017 season. To fulfill the long-term contract, McKeil will deliver a modern shallow draft vessel in early 2018. n

On everybOdy’s lips Find out why at


News Updates

NEW HORIZONS FOR THE CHAMBER OF MARINE COMMERCE Merger, new leadership set Chamber on course for 2017


Photo: Jim Gatsos

he Chamber of Marine Commerce is in a stronger position to advocate for the future prosperity of inland and coastal marine transportation in Canada and the U.S. following a series of new developments during 2016. The Chamber completed an historic merger with the Canadian Shipowners Association in October 2016 to create one strong united voice for the countless businesses and stakeholders that rely on marine transportation in the region. The signing represented the culmination of a lot of hard work by many individuals and long and careful consideration by the Boards of Directors and the membership of both associations. “We united two organizations that have successfully promoted the interests of commercial marine shipping for many decades. Both associations recognized that we had many shared goals and issues and that combining our resources would make us a much stronger advocate for the future growth of our industry,” says Wayne Smith, Chairman of the Chamber of Marine Commerce.


The Chamber, which is a bi-national industry association that represents more than 130 Canadian and U.S. ports, shipowners, marine suppliers, marine shipping customers and other stakeholders, will continue to focus on fostering a harmonized and efficient regulatory climate throughout the binational Great Lakes and St. Lawrence region and along the eastern seaboard and northern coasts. ENLARGED PROFESSIONAL TEAM, BOARD However, it will now benefit from an enlarged, focused professional team led by new President, Bruce R. Burrows appointed in December 2016. Burrows brings almost 35 years of government relations, business development and consensus-building expertise to the position, with senior leadership roles in the commercial transportation and industry association sectors. Robert Turner was appointed as VicePresident of Operations in January 2017. He has extensive experience both aboard ships as a Master Mariner and in federal

government regulatory development and policy-making during his career at Transport Canada, which will be invaluable to his role managing the Chamber’s activities related to compliance with the many environmental, safety, human resource, and operational regulations and policies that govern all aspects of the marine transportation industry. Further hires are expected during 2017 to fill out the Chamber’s policy and government relations teams. Five new directors have also been appointed to the Board of the Chamber of Marine Commerce effective January 19, 2017. The full-strength 26-member Board reflects the diversity of the Chamber’s membership and brings a wealth of skills and expertise to assist the association’s executive team in the future development of its operations and government relations agenda. Board directors have also been appointed to Committees that have been established as part of the Chamber’s new governance structure: Executive Committee, Finance Committee, Human Resources and Governance Committee and Domestic Shipowners Committee.

News Updates

NEW BOARD MEMBERS FRANÇOIS PERRAS Chief Strategy Officer, ArcelorMittal Long Products Canada In cooperation with operations and services, François Perras devotes his time to defining and implementing business strategies to increase profitability, improve operating efficiency, and expand the company’s market share.



JAMES MOWBRAY VP, North American Transportation, Cargill Limited James Mowbray is the Vice President, North America Transportation Leader within the Cargill Agricultural Supply Chain.

ROBERT TURNER Vice-President of Operations

IAN HAMILTON President & CEO, Hamilton Port Authority Ian assumed this role in January 2017, after serving as the Hamilton Port Authority’s Vice President of Business Development and Real Estate since 2008, in which he was instrumental in the Port’s success in attracting more than $300M in external investment.

RON ELDRIDGE Senior Vice President, Marsh Canada Limited Ron is a Senior Vice President in the Marine and Transportation division of Marsh’s Toronto office. He is also the national hull practice leader. His primary responsibilities are managing the insurance and risk management needs of clients in the marine and related industries.

MARC ISSACS Managing Partner, Issacs & Co. Marc’s Toronto-based maritime, transportation and insurance law firm includes resolving maritime, commercial and insurance disputes; emergency response to marine incidents; and commercial legal advice to the marine industry, including the drafting of bills of lading and negotiating contracts.

RAY JOHNSTON Secretary-Treasurer

JULIA FIELDS Director of Communications

LINDA JEANNOTTE Office administrator

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It’s been a busy first few months for the new President of the Chamber of Marine Commerce. Since taking “the helm” of the industry association, Bruce has been taking the pulse of the marine shipping industry, examining its strengths, defining its challenges, and finding out what matters most to Chamber members – all with a view of creating a strategic plan for the next three years. So what are his initial impressions:


N THE CHAMBER: This is a unique organization in the transportation world – one that brings all the key players together, including our shipper customers. There’s valueadded in listening to the views of end users and working with them to develop a system that helps everyone grow and prosper. Most significant, speaking with one voice on behalf of so many industries that intersect with the marine sector is a tremendous advantage. It’s remarkable from a government relations standpoint, believe me, having worked closely with rail and more recently air. ON THE POTENTIAL FOR INLAND, COASTAL SHIPPING TO CREATE MORE ECONOMIC WEALTH, JOBS: I think this sector has enormous untapped potential that can be unleashed to create more marine traffic at lower cost. I’m convinced that inland and coastal shipping in Canada and the U.S. has tremendous capacity to grow. Our members are extending their operations into new frontiers like the Arctic; and our Great Lakes ports are chasing new agricultural business, more project cargo and container business with their shipping partners. What we really need now are government policies on both sides of the border that help, not hinder, this potential growth. ON THE INDUSTRY’S ENVIRONMENTAL TRACK RECORD: I think this is really the sector’s unsung story. We have a green advantage that other modes of transportation can only envy. With our fuel-efficient ships, we have a lower carbon footprint than road or rail. And we enjoy low congestion relative to other major trade corridors. I just don’t think that politicians fully appreciate how innovative this industry has been, investing billions of dollars in new ship designs and environmental technologies. Green Marine is another great example. How many industries have a North American-wide environmental improvement program for 16

every part of the logistics chain from ships to ports to terminals and shipyards that works in partnership with environmental groups and government and is externally verified. Marine shipping is an attractive choice for governments committed to a sustainable transportation future, with the capacity to do even more to accelerate environmental progress. I believe our industry’s achievements can be more aggressively expressed and backed up with further action. ON THE CURRENT POLITICAL CLIMATE: We’re in the best place in years to foster a harmonized and efficient regulatory climate on both sides of the Canada/U.S. border that promotes greater competitiveness, new investment and continued growth. All signs point to reduced red tape and fees for businesses across the U.S. under President Trump. We hope the new American administration and the government here in Canada can work together to streamline the hodgepodge of regulations that currently govern the bi-national waters within which we operate. With our united and stronger voice, we can better advocate for harmonized, practical, science-based environmental regulations. ON GOVERNMENT INFRASTRUCTURE PROMISES: Equally important, we have a Canadian government committed to major infrastructure investments, which are desperately needed across all sectors. This could generate increased volumes of materials being shipped for those projects. South of the border, the new administration is set to roll out a trillion dollars in infrastructure spending – if the President delivers on campaign promises. Imagine the shipments of steel- making materials, alone, that would be needed. But we need to make sure that marine gets its fair share and infrastructure money is allocated to investments in icebreaking resources, waterways, locks and portside infrastructure to unleash the full sustainable potential of shipping.

ON WHAT’S AHEAD FOR THE CHAMBER: You will hear more about my vision in the coming months. I’ll be putting a sharper focus on branding, communications and government relations to ensure this great story gets out. And that our advocacy efforts are not only heard, but heeded. My immediate priorities are to meet as many members as I can to identify concrete examples of the positive impacts we have on the economy and society. I’ll make sure government decision makers become familiar with these facts. I’ll be adding more staff to help our team to carry out this work. And I am also looking at our data collection and research and analysis capabilities to see if we can better stay on top of industry trends. This will help members seize new opportunities as they emerge while also supporting our advocacy goals. With these essential steps underway, I will collaborate with the Board, Chamber members and our external stakeholders to develop a strategic plan to move this great organization forward. n

MINI BIO • 35 years of experience in the transportation and industrial sectors • Most recently with TACTIX Government Relations and Public Affairs leading the ‘Transportation and Infrastructure’ practice. • Previously held senior positions at Canadian Pacific in Canada and Europe, before serving as a senior executive at the Railway Association of Canada, including as Acting President/CEO • Current board director of The Vimy Foundation


Environmental Strides

8 NEW ECO FRIENDLY SHIPS to set sail in Great Lakes-St. Lawrence in 2017


anadian shipowners will welcome at least eight new environmentally-advanced ships this year to trade in the Great Lakes, St. Lawrence and coastal regions as part of a $2 billion+ investment in fleet modernization. The vessels feature cutting-edge technologies and design that significantly reduce marine shipping carbon and air emissions and improve navigation and crew safety. “The level of investment and innovation is really unprecedented. There are already 18 new and revamped Canadian-flag ships sailing these waters and a further 14 coming in the next two years,” says Chamber of Marine Commerce President Bruce Burrows. “Canadian shipowners are putting their money on the table and delivering world-class ships that are the answer to the Canadian government’s ambitions to create a clean environment and prosperous economy for generations to come.” St. Catharines-based Algoma Central Corporation will bring 4 new vessels into service this coming year. The first to arrive will be the NACC Quebec expected this spring. The NACC Quebec, which Algoma’s joint-venture company NovaAlgoma Cement Carriers will operate, is a first-of-its-kind, ecologically efficient, self-discharging dry bulk cement carrier. The carrier is equipped with a hybrid exhaust gas scrubber system that can operate in fresh and saltwater that virtually eliminates sulphur emissions; and state-of-the-art pneumatic self-unloading technology that has a sealed system that contains dust and can rapidly load/unload cement into either trucks or silos. Algoma Central also has one 650-ft self-unloader vessel, the Algoma Innovator, arriving this autumn that has 18

forward booms that allows it to access smaller, shallower harbours to deliver salt and aggregate for companies like Compass Minerals and Lafarge North America; and one 740-foot selfunloader ship arriving in the latter part of the shipping season. In addition, the gearless bulker Strongfield will join the fleet in the summer of 2017. All of these Equinox-class ships are 45 per cent more fuel-efficient than older vessels; are equipped with exhaust scrubbing systems and have the latest navigation technology, design features and equipment to improve safety. Algoma Central will welcome another five new Equinox self-unloaders in 2018 and early 2019.

4 DUAL-FUEL TANKERS Quebec-City-based Desgagnés is investing $200 million to build four next generation asphalt-bitumen-chemical tankers expected to arrive for service in the Great Lakes-St. Lawrence, east coast and the Arctic in 2017. The M/T Damia Desgagnés and her three sister ships will be powered by dual-fuel engines allowing the use of liquefied natural gas (LNG), marine diesel oil (MDO) and heavy fuel oil (HFO): a first for merchant vessels in Canada. When using natural gas as its primary source of energy, the Damia Desgagnés will achieve several environmental objectives, including: the reduction of carbon dioxide (CO2) emissions by approximately 25 per cent due to a lower carbon content in natural gas compared to liquid fuels; the reduction of nitrogen oxide (NOX) emissions by over 85 per cent due to the lean-burn combustion process achieved by the ship’s engine; the near-complete elimination of sulphur oxide (SOX) emissions since natural gas contains very little sulphur; and air

particle emissions will be practically non-existent due to the efficient combustion of natural gas. “The Damia Desgagnés is part of an extensive investment program for the renewal and expansion of the Desgagnés fleet with vessels fitted with cutting-edge technology, which demonstrates Desgagnés’s commitment and confidence in its future,” says M. Louis-Marie Beaulieu, Chairman of the Board and Chief Executive Officer of Desgagnés.

GROUP OCEAN’S NEW VESSELS New ships have been coming into service every year as part of an extensive modernization of the Canadian fleets. In 2016, Quebec company Ocean celebrated the blessing of its newest tug, the OCEAN TAIGA, the second ship of the TundRA series. This 36-meter tug is equipped with the latest technologies and can operate in the most extreme conditions, including ice navigation. It performs docking and departure operations of ships and is involved in escort, towing services over short and long distances as well as for rescue operations and recovery of shipwrecks. The construction of this tug at the Ocean Industries shipyard was made possible thanks in particular to the financial support from Industry Canada through its Structured Finance Facility program. The support, granted to Ocean Remorquage Québec Inc., which commissioned the ship valued at $24 million dollars, represents 15 per cent of the construction costs. Construction has also received support from the Ministry of Finance of Québec through the refundable tax credit for shipbuilders. n

Environmental Strides






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Environmental Strides



reen Marine, the certification program launched by the Great Lakes-St. Lawrence maritime industry to improve shipping’s environmental performance, marks its 10th anniversary this year with a steadily expanding North American membership and increasing global recognition. “The program has grown beyond our expectations with 110 participants throughout North America and as far away as Australia,” says David Bolduc, Green Marine’s executive director. “It’s also been great to have Green Marine acknowledged with the Lloyd’s List North American Maritime Award for Environmental Excellence (2015), and the Sustainable Shipping Awards Green Shipping Initiative of the Year (2011), as well as invitations to explain the program at conferences throughout North America and Europe.” Green Marine offers a template for port authorities, terminal operators, shipyards and shipping lines to address key environmental issues using 12 performance indicators. They include reducing air emissions, minimizing community impacts, and demonstrating environmental leadership. The certification process is rigorous and transparent: results are independently verified every two years and each company’s individual results are published. Bolduc has been involved in Green Marine since it was first raised as a visionary concept 12 years ago. He attributes much of its success to its participants’ focus on practical solutions to mutually prioritized environmental challenges. 20

No politics, just action “We never enter political or policy debates,” he says. “Instead, we create opportunities for our participants to meet with relevant stakeholders, policymakers and experts to clarify issues and seek feasible ways to minimize our industry’s environmental impact.” Green Marine’s wider recognition is welcomed by Ian Hamilton, the Hamilton Port Authority’s president. “Anything – true or false – can be posted on line these days,” he says. “So it’s valuable to have a credible organization like Green Marine that has a clear framework for relating and verifying what our industry is doing to improve our environmental performance.” The Port of Hamilton is one of Green Marine’s founding members. “Our port has always considered the environment important, but the program laid out the steps for us to improve our sustainability in prioritized areas of mutual industry concern with specific targets and tools for measurement,” Hamilton says. By focusing on Green Marine’s key areas, the port has improved from a Level 2 to a Level 3 ranking across the board. “This is a significant achievement for a smaller port with limited resources,” emphasizes Marilyn Baxter, the port’s environmental, health and safety manager. For example, the criteria motivated Baxter to successfully encourage the required 25 per cent of the port’s tenants to sign up as participants to earn the port authority a Level 3 ranking in environmental leadership. Canada Steamship Lines (CSL), another founding member, inspired CSL Americas and then CSL Australia

– the first participant outside North America – to join and is encouraging further expansion. “It’s impressive that a regional effort that started in Quebec and Ontario has been embraced by some of the largest U.S. ports,” says Allister Paterson, executive vice-president and chief operating officer for CSL Group. “I think it’s because the program is a credible, quantifiable way to put your money where your mouth is and that’s appealing to today’s generation of leaders.” The Duluth Seaway Port Authority has been involved from the outset. “As the largest and busiest port on the Great Lakes, the Port of Duluth was very interested in system-wide solutions to address invasive species, air emissions and other issues related to the viability of shipping,” says Jim Sharrow, director of Port Planning and Resiliency. Greenhouse gases (GHG) is an example of one area where the port has made significant improvements. “By investing in florescent and motion-controlled lighting, we have reduced our electricity use by 50 per cent,” Sharrow notes. “And we’re now looking at installing LED bulbs for office, street and area lighting to further reduce electrical use.”

Improving public awareness Ray Johnston, Green Marine’s current president, headed the Chamber of Marine Commerce when Green Marine was first discussed. He recalls Green Marine starting out in response to a lack of public awareness regarding the maritime industry and its sustainability efforts. “Shipping companies and

Environmental Strides

port administrations were exceeding regulatory requirements but the public still had a negative perspective because the industry wasn’t yet doing the best possible job of conveying the facts.” The CEOs from a dozen shipping companies and port authorities initially gathered in Montreal on May 30, 2005, along with administrators from SODES (the St. Lawrence Economic Development Council) and the Chamber of Marine Commerce, to discuss the situation. (Other maritime associations from Canada and the U.S. later also took part in Green Marine’s creation.) “We subsequently met with representatives of the mining, forestry, chemical and other industries to find out how they had responded to similar dilemmas,” Johnston recalls. “We incorporated their best strategies to create a framework specifically for the maritime industry.” The CEOs sought a program that would clearly and simply relate what their companies were doing to address the

most pressing environmental issues at that time, as well as measure continual improvement. “That’s why we established the Level 1 through 5 ranking, with Level 1 being regulatory compliance and 5 indicating environmental excellence and leadership,” says Bolduc, who was then a SODES employee assisting with the program’s design. “We wanted to ensure that we were all measuring the same things in a consistent way.” A credible, transparent framework was also insisted upon by the founding CEOs. “They weren’t going to sign their names to anything that they couldn’t fully trust,” Johnston states. “That’s why every participant’s results are reviewed by an independent verifier every two years.”

NGO, government support The program’s founders invited environmental organizations, scientific researchers, government agencies and community interests to participate in discussions from the outset and these 50-plus supporters continue to inform

and influence the program’s evolution. Andrew Dumbrille, WWF-Canada’s senior specialist for sustainable shipping, appreciates being invited to the discussions. “As a science-based, solutions-oriented organization, we take a pragmatic view towards solving environmental challenges,” he says. “And Green Marine has similar goals in wanting to put forward practical solutions that help the environment but don’t cause businesses to go bankrupt.” Transport Canada has also supported Green Marine since its inception. “Green Marine’s efforts to develop performance benchmarks and measurements standards, as well as promote best practices, serve the public interest,” says Natasha Gauthier, Transport Canada’s senior media relations advisor. “It’s why Transport Canada entered into a memorandum of cooperation with Green Marine.” Green Marine also has more than 80 partners. They consist of marine-related companies, consultants, associations and

As a science-based, solutions-oriented organization, we take a pragmatic view towards solving environmental challenges. And Green Marine has similar goals in wanting to put forward practical solutions that help the environment but don’t cause businesses to go bankrupt.” - Andrew Dumbrille, WWF-Canada’s senior specialist for sustainable shipping


21 21

Environmental Strides



34 23 19 7 83

110 83 58 21 272

*October 2007 **January 2017






institutes that can help participants to improve their sustainability through new technologies, computerized monitoring and innovative best practices. “Booths at our annual GreenTech conference, which will be held in Fort Lauderdale this May 30 to June 1, sell out because our partners know how keen our participants are to find out about the newest equipment and services,” Bolduc says. Interestingly, the plan was never to expand Green Marine beyond the Great Lakes-St. Lawrence region, but the clear framework appealed to others, starting with the Port of Prince Rupert. Approximately a third of the membership is now from the Canadian and U.S. west coasts. Bolduc credits the countless voluntary hours by the membership in helping a secretariat consisting of five employees to achieve everything that Green Marine has. “It’s amazing how much our membership does for us,” he says. However, CSL Group’s Paterson insists Bolduc and his team also deserve credit. “They are quietly effective and don’t get a lot of praise, or even mention, but they certainly deserve a nod for all the success achieved,” he says. n

MINISTER OF TRANSPORT MARC GARNEAU WELCOMES GREEN MARINE’S EFFORTS REGARDING UNDERWATER NOISE Following a study in partnership with Transport Canada, Green Marine launched in 2017 two new performance indicators for shipowners and ports to reduce underwater noise, with the goal of reducing the impact on marine mammals. Canadian Transport Minister Marc Garneau praised these efforts in a speech at a Greater Vancouver Board of Trade luncheon. “These indicators were developed with the collaboration of experts from the marine research and science community, environmental non-government organizations, and the federal government,” he said. “This leadership initiative is the first of its kind in the world – one in which companies will be formally evaluated on their efforts to reduce underwater noise from their operations.”

In Conversation

In conversation with

McASPHALT INDUSTRIES In an exclusive interview, John Carrick Jr. and Roy Hickingbottom, respectively President and Vice-President of McAsphalt Industries, outline their views on the current activities and outlook of a key enterprise based in the Great Lakes region.

John Carrick Jr, President McAsphalt Industries


Roy Hickingbottom, Vice-President McAsphalt Industries



23 23

In Conversation

(From L to R. John A. Carrick, Kathy Carrick, Kelly Carrick, Helen McArthur, Shawneen McArthur, Blair McArthur) McAsphalt Marine Transportation Limited renamed the tug “Victorious” to the “Leo A. McArthur” in memory of one of the two founding partners of the Miller-McAsphalt Group of Companies. Leo A. McArthur and John J. Carrick founded McAsphalt Industries Limited in 1970, purchased Miller Paving in 1977 and grew the Miller-McAsphalt Group into one of Canada’s largest road construction and asphalt supply companies. John J. Carrick passed away in 2004 and Leo A. McArthur in 2016. Both were re-united at a re-naming dedication ceremony held in Windsor on January 16th, 2017.


For over 45 years, McAsphalt has been manufacturing asphalt products from 21 strategically-located terminals across Canada, employing some 500 people. Can you start by describing the scale of your operations in the Great Lakes/St. Lawrence region and eastern seaboard? McAsphalt has seven asphalt marine terminals on the Great Lakes/ Eastern Seaboard; Thunder Bay, Windsor, Port Stanley, Hamilton, Oshawa, Valleyfield, and Halifax. Of these seven, three also supply fuel to ships through Sterling Fuels, a sister company.


Describe your core customer base. What sectors of the economy do your products support and what geographic markets do you sell into? McAsphalt Industries supplies asphalt products, services and technology to government agencies and road construction companies across Canada. Sterling Fuels supplies marine fuel and lubes to shipowners operating in the Great Lakes/Eastern Seaboard


McAsphalt owns Sterling Fuels, based in Windsor, and the Miller Group which provides construction services to the continent. How do these affiliates play into the overall business strategy of McAsphalt? McAsphalt supplies Miller Paving with all their liquid asphalt cement that is used to produce hot mix asphalt for 24

road paving purposes. Sterling Fuels is a separate business but plays an integral part of McAsphalt’s storage and supply network.


How would you describe the importance of marine shipping as part of the logistics network for all of these different components (McAsphalt, Sterling and Miller)? As refineries closed and McAsphalt/Sterling/Miller expanded their geographic network we needed to source supply of petroleum products further afield. Marine was a large contributing factor to our supply chain, guaranteeing supply security while also taking advantage of regional arbitrages.


McAsphalt has its own in-house marine transportation business. McAsphalt Marine Transportation Limited owns a fleet of two integrated tugs and barges. How much tonnage does the fleet typically carry in a year? Does the fleet also carry products for other companies? The MMTL fleet carries almost 800,000 metric tons of black oil products in a typical year. A lot of it is for internal use but we also provide 3rd party transport services for a number of oil companies.


Does marine shipping enhance the competitiveness of your operations? Please elaborate.

Marine transportation greatly enhances our competitiveness. We’re able to transport large quantities more cost effectively. Also it gives us flexibility for our operations. We can access suppliers who may only service by marine.


Have you made any recent significant capital investments in vessels or marine operations in the Great Lakes region and eastern seaboard? Any new projects on the horizon? No significant investments since 2010 on the marine side but several significant expansion projects on the terminal side. Over the last six years, we’ve invested $30 million in a new state-of-the-art asphalt terminal in Hamilton and over $20 million in a new loading dock for aggregates and other infrastructure upgrades at our marine fuels facility in Windsor. We are always looking for new opportunities.


What do you see as the biggest challenges facing marine transportation in the Great Lakes, St. Lawrence and eastern seaboard regions? And how do these affect your business operations? Pilotage, ballast water and air emission regulations, all create extra costs and challenges for all marine operators. We face a patchwork of often conflicting and inconsistent regulations across the waterway and policies devised

In Conversation without scientific facts or consideration of the lack of available technology.


What has McAsphalt been doing to deal with some of these issues?

Involvement in the former Canadian Shipowners Association and the Chamber of Marine Commerce to come up with achievable solutions. Ballast Water – we’ve been looking into treatment systems that can work in fresh water (no success yet). Various systems for cleaning and controlling air emissions.


What role does government need to play in resolving some of these challenges? What should industry be doing as a whole? Government needs to recognize the lack of systems to deal with the air emissions and ballast water concerns. There needs to be a less regulatory and more cooperative stance. Industry needs to work with the government to develop reasonable and attainable standards.


The company’s leadership role in protecting the environment has been widely recognized, notably winning a special award from the Hamilton Port Authority in 2015. To what extent have some terminals been conceived with the environment in mind, notably addressing air emissions and odour? All our terminals are built with emission and odour in mind. All have been equipped with state of the art filter systems. All McAsphalt and Sterling Fuels facilities are all operated under the ISO14001 Environmental Management System along with ISO9001 Quality Management and 180001 Health & Safety Standards.


What are some of the main safety and environmental attributes of your present fleet of tug/barge units, which are built specifically for asphalt and other high temperature black oil products? All vessels are fully double hulled, meet all Transport Canada and OPA 90

standards and use highly sophisticated electronic and navigation systems to rival any vessels operating on the Great Lakes/Seaway.


In 2011, five McAsphalt terminals – Valleyfield, Hamilton, Windsor, Oshawa and Halifax - joined the Green Marine program. How has membership impacted your operations? In addition to ISO14001 Environmental Management System, Green Marine Certification probably is more specific to the North American marine industry. While there is overlap, Green Marine allows us to benchmark our environmental performance through their annual self-evaluation. Safety and the environment are all part of all our operations culture.


Looking forward, what are the opportunities for growth for McAsphalt? The new Liberal government in Ottawa has been stressing a major commitment to expand and improve infrastructure. Are you already seeing positive spinoffs for your particular niche sector? We have seen no spinoffs yet from our Federal Government’s Federal Infrastructure initiatives. So far it has consisted of “social infrastructure” spending with little for roads and bridges. We are still optimistic that there will be some infrastructure spending as our roads and bridges need it.


Is there potential for growth on the U.S. side of the Great Lakes and is there any potential broadening of this activity? There is much talk by the new Trump administration of substantial infrastructure investments in the so-called Rust Belt states, which would augur well for road projects. McAsphalt supplies some materials in the U.S. as does Miller work, but the big win we hope will be for Sterling Fuels. We have seen some of the worst years ever in shipping on the Great Lakes and any spending in the Rust Belt will certainly help commodities and increased shipping volumes on the

Lakes. Hopefully infrastructure spending on both sides of the border will make the Great Lakes ‘Great’ again.


Is there potential for marine transportation to become a bigger part of the company’s overall transportation strategy? Yes definitely, both for McAsphalt and Sterling Fuels. We are continually looking for ways to operate more efficiently in an environmentally friendly way while always focused on our customers’ needs.


How about Sterling Fuels, what are the plans going forward for this business? We will continue to grow our marine fuels and lubes business on the Great Lakes and Eastern Seaboard. There has been a lot of uncertainty over fuel specs and the downturn in the shipping business, but it is cyclical and we are prepared for the next upturn.

- - - -

Headquartered in Toronto, McAsphalt Industries is a privately-owned Canadian company formed in 1970 by Leo McArthur and John Carrick. The company took its name from the M and C of its founders’ initials. Employing some 500 people, McAsphalt industries has seven asphalt marine terminals on the Great Lakes/ Eastern Seaboard, and 21 terminals all told across Canada. Supplies asphalt products, services and technology to government agencies and road construction companies. Supplies fuel to ships through sister company Sterling Fuels. Supplies subsidiary Miller Paving for all liquid asphalt cement used for road paving. McAsphalt Marine Transportation Limited, which owns a fleet of two integrated tugs and barges, carries nearly 800,000 metric tons of black oil products in a typical year. 25

Port Spotlight


Clayton Harris III


layton Harris III, the new Executive Director at the Illinois International Port District (IIPD) at the Port of Chicago has never been a port director before. But he has a lifetime’s experience in logistics and transportation, as well as years of experience in the sometimes byzantine world of Illinois and Chicago politics. And he is clearly determined to guide to another level the largest U.S. inland general cargo port which links an extensive river system and the Great Lakes to the global market. To this end, a finely-developed sense of humor should serve him in good stead. When asked how he gets along with the IIPD Board of Commissioners – five members appointed by the Mayor of Chicago and four members appointed by the Governor of Illinois, Harris chuckles. “Hey, this is Chicago,” he said. “Everything is political.” 26

Harris’ experiences in working with Chicago and Illinois politicians go back to the early years of this century. A self-described “military brat,” Harris earned his Bachelor of Science Degree in Aerospace Technology from Middle Tennessee State University. He worked at the Pentagon while attending Howard University Law School full-time and did internships with the Federal Aviation Administration and the U.S. Department of Agriculture. When he received his law degree from Howard, Harris accepted a position in Chicago with the Cook County Attorney’s office. He was soon recruited by Chicago Mayor Richard M. Daley to lobby for the City in the state capitol of Springfield on such issues as crime, labor and the environment. In 2006, Harris was appointed Chief of Staff for the Illinois Department of Transportation, where he helped spearhead the $1 billion reconstruction of the Dan Ryan Expressway across the south side of Chicago. He became Deputy Chief of Staff for Governor Rod Blagojevich and spent three months as interim Chief of Staff when the Governor was charged with corruption and removed from office. He spent a year in private practice and joined the global engineering consulting firm CH2M Hill as the firm’s Midwest Director, U.S. Government Affairs, in 2010. When longtime Chicago Executive Director Anthony Ianello announced his decision to retire in 2015, the board of commissioners approached Harris. In

May of 2016, they named Harris, 45, to the helm of the sprawling port district. Since then, Harris has embarked upon a steep learning curve to get up to speed, and reaching out to the District’s many external constituencies, including tenants, the maritime community, and federal agencies like the U.S. Army Corps of Engineers. To help with his education about the Great Lakes, Harris hosted a meeting in Chicago in December for a number of veteran Great Lakes ports’ advocates, including Vanta Coda of the Duluth Seaway Port Authority, William Friedman of the Cleveland-Cuyuhoga County Port Authority, and Steve Fisher of the American Great Lakes Port Association. “They flew in to O’Hare and spent the whole day with me,” Harris recalled. “They helped me work on a comprehensive strategic plan. We spent the time brainstorming, and they all flew right back out.” Planning and strategy have been Harris’ stock in trade for several decades now, and his approach to steering the IIPD at the Port of Chicago to what he calls his vision: “To maintain, retain, and increase the viability of the Port. The vision is to keep IIPD a viable entity in Chicago, Illinois, and the Great Lakes region.” Harris said he has met with all of the Port’s constituencies, and he has asked them to submit their plans and suggestions for the future. “I have met with everybody,” he explained. “And I have been extremely honest with folks. We are moving forward.”

Port Spotlight



Challenges going down the road primarily involve the Port’s revenue stream. IIPD at the Port of Chicago owns and controls 1,500 acres of land near Lake Calumet and Lake Michigan southeast of Chicago and leases property to a variety of industrial and warehousing firms that employ up to 1,900 people. But in 2015, the District reported $3.4 million in income, most coming from leases and fees. The Port District lost money, however, because its expenses, including depreciation, totaled $4.2 million. The District, which does not receive an appropriation from the City of Chicago or the State of

Illinois, has $10.5 million in long-term debt and owes nearly $15 million to the State of Illinois. “We have to increase the bottom line,” Harris said. “We have to get revenue up. If I don’t kill it, I don’t eat it. And right now, we’re eating more than we’re killing.” Harris said he is taking a two-pronged approach to boosting revenue. One is to increase maritime traffic. The Port handles some 17.5 million short tons of shipments annually that transit through the Great Lakes/St. Lawrence Seaway System. Secondly, he also has to focus attention on leasing available land. From the perspective of increasing maritime traffic, Harris points out that the Windy City has immense logistical advantages and benefits for shippers. “We are the greatest multi-modal complex in North America,” he said, ticking off the components enjoyed by Chicago, including the fact that six of seven Class I railroads service the port and that Chicago is the hub for six major interstate highways. “We are on the Great Lakes/St. Lawrence Seaway, we have the back door for barge traffic on the Illinois and Mississippi Rivers and we are served by two major international airports.” Significantly, Chicago has space to serve more warehousing and industrial firms. Harris thinks the Port District would be a great place for an internet retailer like Amazon to locate a distribution hub. And he is a big fan of the work that William Friedman has done in Cleveland with waterfront development.

“ Chicago’s port is a critical transportation and trade asset that offers a unique combination of maritime, rail and road access, and we will continue to leverage this important asset to create jobs and economic growth for the City of Chicago. “ Mayor of Chicago Rahm Emanuel For now, Harris is trying to educate anyone who will listen about the potential for the IIPD at the Port of Chicago. Recently, he made a presentation to the Freight Committee of the Chicago Metropolitan Agency for Planning (CMAP). His talk was broken down into three sections. “I started out by telling them all about the Port,” Harris said. “Then I chastised them about not using the Port. And I finished up by imploring them to start using the Port!” n

Chicago is the largest inland general cargo port in the United States, linking an extensive river system and the Great Lakes/St. Lawrence Seaway System to global markets. - - - - - - -

The biggest metropolis in the U.S Midwest, Chicago is regarded as the leading commercial and intermodal transportation hub of the United States. Deep-draft vessels pass through the Seaway between the Port of Chicago and the Atlantic Ocean while barges carry goods in year-round service between Chicago and the Gulf of Mexico via the Illinois, Mississippi, Missouri, Ohio and Arkansas Rivers. The Port of Chicago handles about 17.5 million short tons annually of shipments that transit the Great Lakes/Seaway. Bulk cargoes include steel, iron ore, sugar, grain, petrochemicals, cement, non-ferrous metals, stone, stone, ferrous scrap. Served by six Class 1 railroads: BNSF, CN, Canadian Pacific, CSX Transportation, Norfolk Southern, Union Pacific. 27 Served by two major international airports: O’Hare, Midway. Direct access to five major Interstate highway systems.


Economic Development




hile Canada celebrates the 150th anniversary of Confederation this year, a very important chapter in its history should not be forgotten: the rich maritime dimension of Canada’s nationhood. After all, consider this fact: Canada has the longest coastline in the world at 243,000 km. To the north, east and west, there are the Arctic Ocean, the Atlantic Ocean and the Pacific Ocean. To the south, you have what some have called the Fourth Seacoast - encompassing the veritable inland seas constituted by the Great Lakes and St. Lawrence River. Canadian ports annually handle nearly 500 million metric tons of international and domestic cargo. Marine activity makes a significant contribution to sustainable development as the mode of transportation with the smallest carbon footprint by far. There is much that can be recalled back to the 19th century, but in the modern era three significant developments stand 28

out – the advent of winter navigation at the Port of Montreal, Canadian pioneers in Arctic shipping, and the establishment of the St. Lawrence Seaway, a unique continental maritime trading corridor. It was in 1962 that the federal government decided to rapidly deploy Canadian Coast Guard icebreakers to prevent the formation of ice jams on the St. Lawrence River and thus keep navigation channels open between Quebec City and Montreal. Two years later, the Danish freighter Helga Dan became the first ocean-going vessel to reach the Port of Montreal in January (instead of ships waiting out the winter months until April). Since then, the Port of Montreal has never looked back, morphing into a year-round port that today closely competes with mighty New York/New Jersey for maritime container business between North America and Europe. Certainly worthy of special praise is a select group of Canadian companies, mainly based in the Great Lakes/St. Lawrence region, who have been

providing vital Arctic sealift supplies and equipment to some 50,000 aboriginal peoples in communities situated in arguably still the world’s harshest environment despite climate change. These often awesome shipping operations focused chiefly on the Eastern Arctic are carried out in close partnership with Inuit interests. Montreal-based Fednav Limited has for more than six decades constituted a pioneering presence in Canada’s Arctic, participating in major shipping projects involving northern mines. Indeed, its three icebreaking bulk carriers are so powerful, they operate virtually year round. For instance, the newly-built MV Nunavik, on its regular voyages between Deception Bay and Northern Europe, is capable of maintaining continuous progress of three knots in ice 1.5 metres thick. And Fednav is the first shipping enterprise to have employed drones for ice reconnaissance on a commercial voyage. Fednav vessels several summers ago were among those transporting the

Photo: L.P. Leclerc

Economic Development


first commercial shipments of iron ore to Europe from the giant Mary River deposits on Baffin Island. Taking part in the initial stages of the spectacular Baffinland Iron Mines project were also Logistec Stevedoring and Quebec City’s Ocean Group tugboats. Transport Nanuk, a subsidiary of Logistec Corporation, has been sailing into the Arctic waters since the early 1970s. For more than four decades, Quebec City’s Groupe Desgagnés has also been a significant presence in Arctic sealift operations with its fleet of ice-class vessels calling at Nunavut and Nunavik (northern Quebec) communities. For its part, Hamilton-based McKeil Marine offers project and transportation services to the Arctic. For example, it provided a reliable loading dock for nickel and copper concentrate for Canadian Royalties Inc. on the rugged shores of Deception Bay, Nunavik where there was no permanent infrastructure by using its barge Nunavik Spirit with anchor lines & spuds to secure and equipping it with a loading ramp. But perhaps, the maritime-related development with the deepest historical impact is the creation by Canada and the United States in 1959 of the St. Lawrence Seaway linking the heartland of North America to world markets. Together, the 13 Canadian and two American locks make up the world’s most spectacular lift system, which includes bypassing the formidable Niagara Escarpment. Ships measuring 740 feet long and up to 78 feet wide are routinely raised to more than 180 metres above sea level in what has been hailed the greatest engineering feat since the construction of the Panama

Canal. The first commercial vessel to transit the St. Lambert lock in Montreal on April 25, 1959 was the CSL Simcoe. The Great Lakes/Seaway System spans 3,700 kilometres from the Gulf of St. Lawrence at the Atlantic Ocean to the tip of Lake Superior. Marine transport and port activities alone support more than 227,000 jobs annually in Canada and the United States. From the outset, marine shipping on the Great Lakes has made a crucial contribution to the steel industry and the mining sectors, with facilities located next to the water to access marine transportation.


plans (yet to be detailed) by the Ottawa and Washington administrations.

A minimal to-do list Looking, meanwhile, to the short-andlong-term future, some key challenges must be addressed. The Canadian government must continue to invest in ports, especially those competing with U.S. ports and well positioned for increased trade with Asia and with the European Union through a free trade agreement heading for implementation this year. No efforts should be spared to strengthen

BUT PERHAPS, THE MARITIME-RELATED DEVELOPMENT WITH THE DEEPEST HISTORICAL IMPACT IS THE CREATION BY CANADA AND THE UNITED STATES IN 1959 OF THE ST. LAWRENCE SEAWAY LINKING THE HEARTLAND OF NORTH AMERICA TO WORLD MARKETS. In 2010, when the federal government eliminated a punishing 25 per cent duty on foreign-built vessels, this opened the floodgates for domestic shipowners, sparking the largest Great Lakes fleet renewal in 30 years with orders for more fuel-efficient ships with ever ‘greener’ attributes. Impressively enough, too, a consultant study in 2014 estimated that capital spending on ships, ports, terminals, and waterway infrastructure between 2009 and 2018 will attain $7 billion. In short, a tremendous vote of confidence in the North American waterway that remains a vital corridor for commodity shipments, growing markets in project cargo, and for potentially substantial infrastructure-related projects on both sides of the Great Lakes under current

the competitiveness of the St. Lawrence Seaway through continued technological innovation. Further, the federal government must allocate the appropriate funding and halt delays to modernize a Coast Guard fleet that has fallen into pitiful disrepair, with icebreakers and other units (average age 34) in the fleet on shaky life extension well past retirement age. And what has happened to a federal pledge several years ago to build a deepsea port in the Arctic? This is really a bare essential with global warming provoking rising shipping activity particularly in the Northwest Passage that requires much greater rescue capability and environmental surveillance. n 29

News Updates



erry Dabrowski of Ottawa, Ontario will get a first-hand view of the Canadian shipowners’ $2 billion investment in environmentallyadvanced vessels, after winning a one and half day trip through the Great Lakes-Seaway system aboard one of CSL Group’s new Trillium-Class vessels. The Chamber of Marine Commerce invited CSL Group to partner on the “Win A Trip on A Great Lakes ship” contest as part of its 1st summer festival program to raise awareness of marine shipping’s environmental benefits. The Chamber sponsored seven summer festivals across the Great Lakes-St. Lawrence region with “Be Green, Support Marine” themed branding on hand-wash stations, along with other signage and online/social media pre-event marketing. The CSL ship contest was the star attraction at the Chamber of Marine Commerce booth at three of those waterfront events in Port Colborne, Brockville and Windsor, which were attended by an estimated 430,000 people. Thousands of passersby engaged directly with the booth attendants, sharing

Contest winner Jerry Dabrowski and his guest MyHanh Le.

stories and learning about new vessel investment, the environmental advantages of marine transport and taking away promotional items. Mr. Dabrowski’s winning entry form from the Brockville Ribfest was chosen out of close to 500 contest entrants. Mr. Dabrowski was born and raised in the industrial city of Hamilton where CSL vessels were a frequent site. “As a child when visiting the beaches of Confederation Park I would spot the vessel on the horizon of Lake Ontario

and track its approach to the Port of Hamilton. How exciting it was to run up as close as possible and watch as the massive vessel would make its way under Burlington’s Skyway Bridge,” he recalls. “And now to relive this adventure first hand from the bridge of a working Trillium Class CSL Group Vessel, certainly is a true prize experience.” His guest MyHanh Le has her own unique connection to ships. Born and raised in Saigon and with family close to the South Vietnamese Presidency, her world turned upside down when the Saigon Provence fell to the Communists. It was with great fortitude that her mother and family managed to escape by commissioning the building of a boat and crossing the South China Sea amidst storms and pirates. Welcomed to Ottawa in 1979, they opened the city’s first Vietnamese restaurant and continue to own and operate several businesses. Mr. Dabrowski and Ms. Le will be taking the trip with CSL during the 2017 shipping season. n

WHY GO WEST TO SHIP EAST? Did you know that in 2016, one in five containers handled at the Port either originated in or was destined for Asia? Thanks to our direct connections with transshipment ports in the Mediterranean and Northern Europe, we offer competitive and alternative routings to Southeast Asia and the Far East. Find out what we can do for you at


News Updates

K+S WINDSOR SALT LAUNCHES $60M GREAT LAKES MINE EXPANSION Marine shipping key to mine’s transportation strategy


n 2016, K+S Windsor Salt Ltd. launched a $60 million expansion of its Ojibway salt mine in Windsor, Ontario as part of the company’s commitment to enhance its salt production footprint and capabilities in Canada. The five-year project will expand operations to the next mining level, approximately 400 feet below the current level – boosting production and extending the life of the mine nearly 50 years until 2063. “This is one of the most significant developments in the mine’s history,” says Mike Soave, General Manager of the Ojibway salt mine. “As a long-time employer and member of the Windsor community, we are very pleased to have the support of our company and the local union to drive this important expansion forward.” K+S Windsor Salt employs more than 225 people at its Ojibway salt mine, and more than 800 people across Canada. The majority of the salt mined at Ojibway is transported by ship via the Great Lakes-St. Lawrence Seaway system to markets throughout Canada and the U.S. Francois Allard, Director of Marine Distribution for K+S Windsor Salt Ltd., says: “Not only is the Seaway transportation system the most costeffective way to reach our markets, it also minimizes our impact on the

environment. Each ship takes almost 1,000 truckloads off Ontario highways. As we embark on this $60 million expansion, it’s important that all levels of government continue to invest in infrastructure along this waterway and we applaud the modernization of the St. Lawrence Seaway lock system that has taken place over the past four years.” The infrastructure changes needed to expand mining operations to the next level started in 2017 with production ramp up slated for 2018. The Ojibway salt mine largely produces rock salt used for commercial and consumer deicing purposes to keep Canadian roads, streets and sidewalks clear and safe during the winter season. In addition, the mine produces salt used for various applications including water softening. On an annual basis,

the Ojibway salt mine is capable of producing up to 3 million metric tons of salt. The Ojibway salt mine opened in 1959, as part of The Canadian Salt Company Limited. The company was renamed K+S Windsor Salt Ltd. in 2014. The company has a comprehensive network of salt production sites throughout the country designed to produce and package salt for consumer and industrial uses. The company is an affiliate of Morton Salt, Inc. and both are part of the K+S Group, the world’s largest salt producer. “It’s great news for the Port of Windsor and the port authority and obviously Windsor Salt. They’re one of our biggest operators here in the port; traditionally the largest single terminal in the port,” says Windsor Port Authority CEO David Cree. n

Eastern Ontario’s Premier Port Tel.: 613.925.4228


Economic Development

Photo: Thunder Bay Port Authority

That Canadian and U.S. Great Lakes-St. Lawrence fleets will spend an estimated (CAD)$177 million on winter ship repair/ layup in 2016-2017



ince the 1800s, ship repair and ship building has been a vital and crucial industry on the Great Lakes and St. Lawrence. From the humble beginnings of commercial navigation, to the halcyon years of the past five decades, shipowners and operators have fueled the demand for technical expertise required to maintain their fleets, whether they are older or newly-built, state-of-the art vessels. Challenged by a myriad of governmental regulatory issues and a short period of time required to meet the demands of maintaining an adequate fleet, ship repair companies have their work cut out for them. Numbering in the thousands on both sides of the Great Lakes, ship repair personnel remain in high demand especially during winter months when traffic is closed on the Great Lakes/St. Lawrence System. 32

In fact, Canadian and U.S. shipowners spend an impressive amount each year on ship repair. The total outlay by Canadian shipowners for the winter repair/layup season in 2016-2017 is estimated at more than (CAD)$70 million dollars. Bruce Burrows, President of the Chamber of Marine Commerce, says: “Even in the off season, Canadian shipowners spend millions of dollars with equipment suppliers and repair businesses, helping to sustain well-paying, highly skilled jobs in communities all over the Great Lakes and St. Lawrence region.” According to the Lake Carriers Association (LCA), U.S.-flag carriers on the Great Lakes were expected to spend (USD)$80 million to maintain and modernize their vessels for the 2017 shipping season. “If the U.S.-flag Great Lakes fleet is not primed to meet the needs

of commerce in 2017, industrial activity and hundreds of thousands of family-sustaining jobs would be in jeopardy,”says James Weakley, LCA president. “This year’s winter work program ensures the vessels will be ready.” David Ross, General Manager of Algoma Ship Repair in Port Colborne, notes: “ASR is the premier top-side ship repair company on the Great Lakes and has demonstrated its ability to take on very large and complex projects and complete them in the short winter repair period. We have an enviable reputation of finishing these projects on time and on budget and to a high standard of quality.” ASR provides diversified ship repair, steel fabrication, machine shop and electrical repair to Algoma Central Corporation’s vessels, as well as other fleets on the Great Lakes. “The volume

Economic Development



of work fluctuates. Traditionally, ASR will have work on anywhere between 12 to 20 vessels serving customers from various locations in the system,” Ross says.

Heddle Marine buys dormant Thunder Bay shipyard In a recent significant development, Hamilton-based Heddle Marine Service Inc., Canada’s marine repair enterprise operating in Ontario and the Maritime provinces decided to purchase the dormant ship yard in Thunder Bay. The acquisition last fall caused quite a buzz in the Lake Superior community of 110,000. Tim Heney, CEO of Thunder Bay Port Authority says, “The shipyard now owned by experienced operators in the marine industry is an exciting opportunity for Thunder Bay. The port authority will continue to work with

Heddle Marine to attract business to the community and help to make the yard a competitive alternative for ship repair on the Canadian side of the upper Great Lakes.” In an exclusive background interview with Marine Delivers Magazine, Shaun Padulo, Manager, Sales and Marketing at Heddle Marine Services Inc., provided detailed insights. “In the lead up to our 30th anniversary, we began to develop a strategic plan for further growth and expansion,” Padulo recalls. “The local facility, dormant since 2014 was one of the premier shipbuilding/repair yards in Canada and its location in the Upper Great Lakes is what attracted us. After inspecting the facility, it became obvious that the facility would become a cornerstone of Heddle’s strategic growth plan.” Continuing, Padulo stresses: “We attribute our success to the strategy of hiring local, drawing upon their knowledge

and skills, instead of micromanaging operations from Hamilton. As a result, we have created Current River Holdings Inc., a start-up company in Thunder Bay, which will own and maintain the facility. At the same time, we have formed a strategic partnership with Fabmar Metals Inc. The company has been successfully operating in Thunder Bay for over 30 years and has an experienced and entrepreneurial management team led by Dale Ryynanen.”

Geographic location advantage Enumerating other advantages, Padulo points to geographic location. “The geographic location will facilitate two important initiatives. Firstly, we will be able to offer services to our existing clients that have vessels operating in the Upper Great Lakes. Secondly, we will be able to develop a new clientele 33

Economic Development

base that operates exclusively in the Upper Great Lakes. Due to Thunder Bay’s proximity to the U.S. border, we will make an effort to include U.S. ship operators to our list of new clientele. Given the current exchange rate between the Canadian and U.S. dollar, we believe that we can be highly cost efficient for our potential U.S. clients.” Padulo acknowledges that most repair and maintenance work is undertaken during the winter months, and this lies at the heart of a key challenge. “Our biggest challenge will be to develop new product lines that will allow us to utilize our labour force during the summer months because we employ our personnel all year long to ensure continuity in the team that we have built. ”

Growing revenue stream for U.S. shipyards Shaun Padulo, Manager, Sales and Marketing at Heddle Marine Services Inc.

Meanwhile, on the U.S. side of the Great Lakes, for over 125 years Fraser

Shipyard Inc, located in Superior, WI has been the only American shipyard on Lake Superior. The facility is strategically located, where millions of tons of taconite from the Iron Range of Minnesota and coal from the western U.S. states are shipped. James Farkas, President of Fraser Industries says, “Experience gained from well over a century of shipbuilding and repair, coupled with new ideas have kept Fraser shipyards operating and will carry it successfully through this century. ” Among other important regional players is Finacantieri Bay Shipbuilding located in Lake Michigan at Sturgeon Bay, Wisconsin. Its large facilities include one of only two active 1,000-foot docks on the Great Lakes. “We have in house, all necessary marine trades required,” says Todd Thayse, VP and general manager. “Ship repair is part of the core of our business. We don’t do it as a sideline. It’s part of our yearly revenue stream and has grown significantly in the past twenty years.” n



34 34


Economic Development



Great Lakes-Seaway delivers BIG for industrial, energy sectors BY LEO RYAN


tretching from the Gulf of St. Lawrence to Lake Superior, the Great Lakes/St. Lawrence System is a 3,700 km marine highway linking the Atlantic Ocean to the industrial heartland of North America. It is often referred to as HWY H20. While the waterway is principally known for handling bulk cargoes like grain and iron ore, ports, St. Lawrence Seaway officials, carriers and terminal operators are optimistic that 2017 will mark continuing progress in an exciting, fast-growing cargo segment – moving highvalue machinery, industrial and wind turbine components on behalf of North America’s energy and manufacturing sectors. Shipments of so-called project cargo via the St. Lawrence Seaway increased by 17 per cent in 2016.

SEAWAY SHIPMENTS OF PROJECT CARGO WERE UP 17 PER CENT IN 2016. “Project cargo volumes are growing every year as shippers better understand the benefits and efficiencies of HWY H20,” says Bruce Hodgson, director market development of The St. Lawrence Seaway Management Corporation (SLSMC). “These components are often very large, heavy and with awkward dimensions. The Great Lakes-St. Lawrence Seaway allows companies to safely and cost-effectively deliver project cargo by water more directly in and out of North American cities. Keeping the cargo on water longer minimizes the significant planning, cost and community disruption involved in negotiating power lines, bridges, and other land obstacles.” “The Great Lakes-St. Lawrence system provides seamless connectivity not just to the heartland but to markets in Western Canada and in the Western U.S.,” he points out. “This is particularly beneficial for project cargoes that are over-dimensional as other gateways can be restricted in the size of cargoes they can handle.” 36

“We also serve a broad range of international markets; Europe, South America and the Far East,” says Hodgson. And despite the recent downturn in the oil and gas sectors, the outlook is for increased project cargo shipments in the years ahead. “The oil and gas industries are forecast to improve over the next two years with new projects coming on stream,” Hodgson says, adding: “The outlook for wind energy is also positive with ongoing projects in both Canada and the U.S..” Several years ago, the SLSMC commissioned a consultant study to compare the waterway’s competitiveness with other gateways. The study concluded that the system was very competitive for the transportation of project cargoes and urged the SLSMC to act as a catalyst to bring all stakeholders together to match cargo with vessels and ports. Hodgson underlines that “one of the advantages for carriers calling the system is the ongoing availability of export cargoes.” For a number of ocean carriers like Fednav, newcomer Spliethoff on regular services and various multi-purpose operators, it’s a question of transporting steel or project cargo into ports and grain out. Tim Heney, president and CEO of the Thunder Bay Authority, states categorically: “Backhaul is the key to the success of project cargo.” Indeed, project cargo, led by wind farm components, has been quite a success story at the Ontario port on the tip of Lake Superior in the past few years. “In 2016, we had a record year in project cargo, with volumes of 31,000 metric tons versus 20,000 metric tons in 2015,” Heney says. Keefer Terminal at Thunder Bay handled 14 shipments – including electrical transformers from the United Kingdom for a hydropower project in northern Manitoba, wind turbine components, mining equipment for a gold mine, and OSB (oriented strand board) plant components. The port anticipates positive results in 2017, with additional shipments of electrical transformers confirmed for the spring. “Project cargo provides steady work for the longshoremen,” Heney says. “Steel is



Economic Development quite labour intensive. The economic impact per ship is greater with project cargo than with a bulker loading grain.” Among marine shipping players in the Great Lakes region, McKeil Marine has recently participated in a couple of high profile projects in Canada and the United States. “From our very beginnings six decades ago, project cargo has been one of the core activities of McKeil Marine,” says Steve Fletcher, president and CEO of the enterprise which provides transportation and project services for a wide range of customers in the Great Lakes, St. Lawrence region, the East Coast and the Canadian Arctic. On some projects, McKeil partners with such global specialized players in ocean transport as Mammoet. “We have developed a rather unique expertise, and earned the respect and trust of heavy equipment companies that have large, critical pieces required for projects,” says Fletcher.

McKeil delivers large pieces for New York Wheel In late 2016, McKeil moved from the Port of Montreal four big pieces needed for the construction of the soon-to-be-famous gigantic New York Wheel, which will surpass the London Eye in dimension. Scheduled for completion in 2018, the New York Wheel on the North Shore of Staten Island will be the world’s tallest observation wheel at 630 feet, accommodating up to 1,400 people per ride. It is expected to attract more than three million visitors a year. The New York Wheel’s pedestals, fabricated by ADF Group not far from Montreal, weighed 100 tons each and measured 18 feet in diameter. They were transported over a period of eight days by two sets of McKeil barges to New York harbor through the Erie Barge Canal. “The biggest challenge involved timing,” recalled Fletcher, “We had to get the pieces through the Erie Canal before it closed, and it closes early. In the end, we just met the deadline.”

Artistic Impression

Supporting Ontario manufacturing exports On the wind energy front, Logistec and its partners moved a substantial volume of Ontario-made wind power components to Sheet Harbour, Nova Scotia, via the Great Lakes and St. Lawrence waterway. The first shipment took place in June 2016. The cargo departed from Port Weller, ON where Logistec managed operations for loading, lashing and securing the five-to-10 metre long towers aboard the multi-purpose M/V Rosaire A. Desgagnés operated by Quebec-based Groupe Desgagnés. Altogether, 78 wind

tower sections will be unloaded and stored in Sheet Harbour until local construction sites are ready to install new wind turbines. Deron O’Reilly, sales and marketing manager (Atlantic Canada), comments: “In this case, reducing the project’s carbon footprint was as important to our customer as it was to our shipping partners. We’ve built strong relationships throughout our network so that Logistec’s maritime solutions can work efficiently with local intermodal services.” At the Port of Oshawa on Lake Ontario, a new rail spur is allowing the port to break into the project cargo market by handling cargo of all shapes and sizes, including a mammoth motor compressor, which arrived last summer from a company in Ontario’s Kawartha Lakes. Too big to move by road, the 100 metric ton compressor was easily accommodated by the rail spur’s oversized dimensional section. The compressor, headed for South Africa, was loaded aboard Spliethoff’s MV Marsgracht. “It’s great to see that industry recognizes the distinct advantages of Oshawa’s intermodal port,” says Donna Taylor, president and CEO of the Oshawa Port Authority. “This is the first project cargo to be exported using the rail spur, and we’re confident that it’s just the start.” Over the past year, the port has assisted several companies in moving project cargo, including generators and plastic tanks destined for Newfoundland. The Port of Hamilton, Canada’s largest on the Great Lakes, has been benefitting from robust activity in project cargo shipments, including power plant components, industrial boilers, construction machinery and vehicles, steel cables and pipes. Ian Hamilton, president of the Hamilton Port Authority, stresses that the port “serves as a strategic location for the import and export of machinery and components for Ontario’s manufacturing and energy sectors. We have recently seen several shipments of windmill blades and heavy equipment, for example. More than 52,000 m3 of project cargo transited the port in 2016, exceeding the five year average by 6.7 per cent.” U.S. Great Lakes ports, including DuluthSuperior, Indiana-Burns Harbor, Toledo and Cleveland also reported handling a healthy number of project shipments in 2016 – including everything from wind turbines and food processing freezers to generators and components for power plants. Looking ahead, the Great Lakes shipping industry will be closely monitoring what opportunities may arise from an ambitious, but not detailed, infrastructure agenda announced by President Trump during the U.S. election campaign. n .


Economic Development

CargoM UNITES STAKEHOLDERS AROUND COMMON GOALS Cluster promotes Greater Montreal region as trade logistics hub BY BRENT FREDERICK

Sylvie Vachon, Chair of CargoM


magine an industry where stakeholders – partners and competitors alike – unite around common objectives and take action to benefit the sector as a whole. For the logistics and freight transportation industry in the Greater Montreal region, this collaborative effort has taken shape in the form of CargoM, the Logistics and Transportation Metropolitan Cluster of Montreal. Its members have come together to promote the region as a trade logistics hub. The logistics and transportation industry in the Greater Montreal region represents 122,000 direct and skilled jobs and 6,300 facilities that handle some 142 million tonnes of goods via all types of transportation each year and generates more than $4.3 billion in economic benefits for the greater metropolitan area. Launched in 2013, CargoM now has close to 50 members in the areas of maritime transport and terminals, rail transport, road transport and thirdparty logistics, administrations and shared infrastructures, committees 38

and associations, and educational and research institutions. Its long-term vision is to establish Greater Montreal as a leading intermodal hub that is sought out for its operational and environmental performance and that contributes to the competitiveness of its business partners and the economic development of Greater Montreal and Quebec. One of the driving forces behind the creation of CargoM was the Port of Montreal and its President and CEO, Sylvie Vachon. Montreal is Canada’s second largest port after Vancouver and the leading Canadian container gateway on the East Coast, handling some 1.5 million TEUs annually. “In just three short years, CargoM has succeeded in mobilizing the key players in the freight transportation and logistics sector,” said Vachon, who has served as Chair of CargoM since its inception. “By facilitating interactions among members and exploiting their existing synergies, we are maximizing the region as a freight transportation hub and working to boost productivity, competitiveness and innovation within the industry. “As a group, we will continue to address priority issues to improve accessibility and traffic fluidity in Greater Montreal, raise the international profile of the hub, preserve and enhance its place in the logistics chain, and encourage networking among the industry.” “It is no secret that there is competition among the various modes of transport and within the modes themselves,” says Mathieu Charbonneau, Executive Director of CargoM. “One of our biggest challenges was to bring everyone to

the same table. The collaborative spirit that we have created, having everyone understand the concept of the cluster and that the spinoffs they derive from it will benefit everyone in the long run, has been one our greatest successes.” With a staff of only four, CargoM relies heavily on its working groups, which, for greater impact, have been streamlined to four from six. They cover: 1. Logistics and transport development opportunities; 2. Communication and outreach; 3. Innovation and fluidity; and 4. Human resources. Headed by leading industry executives, these groups are committed to initiating projects, applying and sharing industry best practices and technologies, positioning Montreal as a hub for freight transport, and promoting the attraction and retention of labour in the various sectors of the industry.

Initiatives improving fluidity to the Montreal region Charbonneau says CargoM already has been able to deliver tools to improve fluidity in the region. Among projects in 2016, it: • Purchased 100 electronic devices that collect data from trucks to identify bottlenecks and areas of recurring traffic congestion in order to recommend solutions to improve flow; • Implemented its web-based information sharing system – intermodal logistics, which provides a better understanding of the volume of containers that truckers move in and out of cargo terminals.

Economic Development

This tool will allow the terminals to better plan movements in advance; • Completed Phase 1 of CargoMobile, a technological tool for truckers. It helps improve truck transport fluidity by using a routing tool that includes interactive maps, trucking plans, traffic flow and truck traffic restrictions.

Photo: Sylvain Giguère

“We spent a lot of time in 2016 on tools to improve fluidity, especially in the trucking sector,” Charbonneau says. “Getting trucks on and off the island of Montreal is one of the biggest challenges for the region. It puts the competitiveness of the entire hub at stake. But all of our members fully understand that improving truck fluidity will benefit their modes as well.”

CargoM’s other highlights for 2016 included the organization of a career day to showcase jobs in logistics and transportation. Some 1,000 people attended. CargoM also worked to bring the highly-attended Cargo Logistics Canada conference to Montreal in February 2016 for the very first time. Worth a special mention, too, is CargoM’s launching late in 2016 of a new educational game called “Follow the container” at a Édouard-Montpetit high school in Montreal’s east end. A class of 15 and 16 year olds was selected to play the game. Charbonneau notes that this initiative has allowed CargoM to promote career opportunities and to demonstrate “how products we use in our daily lives are transported all over the world.” Among projects moving forward, CargoM will work with the Montreal Metropolitan Community, Montréal

International and the Board of Trade of Metropolitan Montreal to develop ZoomMontréal, an initiative to help attract companies to the region. This “site selector” tool will identify land that is available for industrial and commercial development. It will also work with the City of Montreal to develop the new “Cité logistique” zone near a new container terminal in the Port of Montreal and participate in projects to implement other logistics centres and industrialport zones in the region. Charbonneau stresses that trade corridors are of particular interest to CargoM and that the association is examining the possibility of hosting a conference/exhibition-type event in 2017-18 that would involve players from Quebec, Ontario, the Great Lakes region and the U.S. Northeast. n



39 39

Safety Story




he St. Lawrence Seaway Management Corporation (SLSMC) has safety as a top priority with a culture that embraces new technology, employee ideas, as well as the collaboration of all contractors doing any work in or along the Canadian waterway. “We’re constantly raising the bar in terms of safety with the goal of having zero accidents,” emphasizes Sylvain St-Arneault, SLSMC’s general manager of engineering. “The goal is to eliminate the chance of an accident by identifying risks from the outset and addressing them before they pose a threat.” The heightened focus on safety began in earnest about six years ago. “Coming from the iron ore industry, our corporation’s president and CEO, Terence F. Bowles, already had safety as one of his core workplace values,” says St-Arneault. “Our management team shares his safety priorities.” Every year, a team of employees is recognized with The President’s Safety Award for distinguishing themselves by their involvement in safety initiatives, leadership and/or innovation, as well as their strong overall safety performance. Zero lost time and zero health-care incidents, for example, were among the reasons the Maisonneuve Regional Engineering Team received the award for 2015/16.

$100 million invested in technology improvements Significant investment in new equipment is improving overall safety. The $100 million committed by the SLSMC to modernize infrastructure has included the shift to safer hands-free mooring (HFM) technology for all of the Seaway’s locks. “The most important issue for the owners and operators of vessels transiting the Great Lakes is the safety of their crews and ships,” says Michael H. Broad, president of the Shipping Federation of Canada. “HFM has created a safer environment within the Seaway’s locks by holding the ship in place during the mooring process, thus minimizing the risk of injury to both the crew and Seaway personnel.” Only three Canadian locks remain to be equipped with the HFM system and they were slated to be completed this past winter (2017). The new technology using vacuum-suction pads rather than steel cables to hold a vessel during lockage has dramatically improved safety already. “Before installing HFM, we had a cable break every 13 days on average,” St-Arneault says. “We will soon virtually eliminate the risk of a snapped cable injuring or possibly killing someone.”

Workplace assessments The corporation is also putting significant effort into ensuring that all potential workplace hazards are eliminated. A key part of that process is providing SLSMC employees with clear procedures for the equipment’s safe operation. “Employees are the ones who ultimately face any risk, so they really need to be thoroughly aware of all possible safety risks, and the procedures and resources available to them eliminate or properly manage them,” St-Arneault says. 40

A pocketsize booklet titled My Lifeline is one of the corporation’s safety tools recognized as a best practice within the maritime industry. The booklet contains evaluation forms that employees must fill to identify the safety risks of their particular work environment. Every worker involved in operations and/or maintenance completes the form before starting a new assignment in a new work environment. Office workers do so once a month because the risks are less inherent in their workspace. “Our engineers fill a form for each worksite they visit,” St-Arneault adds. The evaluation consists of 12 questions that require a yes or no response. “If one of the questions determines that, yes, there’s a risk, that risk must be explained on the form along with the steps that will be taken to eliminate or properly manage it,” St-Arneault explains. For example, one question prompts employees to take a 360o look around their work environment and identify any potential hazards, such as ice or holes in the ground, electrical extensions that might cause someone to trip, as well as anything that has the potential to fall on a worker. “Another question asks if the employee is being accompanied by a new co-worker who might have less familiarity with a worksite,” St-Arneault says. “It’s important to communicate with a new co-worker clearly and regularly to avoid any misunderstanding that could lead to an accident.” All of the corporation’s employees, including every manager, has a My Lifeline booklet and must use it as required. Its effectiveness is reflected in the significant reduction of recordable incidents. “We had 19 in 2014/2015, 13 in 2015/2016, and only two after nine months in 2016/2017,” St-Arneault notes.

Safety-first extends to contractors The corporation also has a system to ensure that safety is always a priority among the 300 to 400 contract workers on site most days. SLSMC inspectors tour the approximately 40 sites daily to ensure the conscientiousness and quality of all contract work. A report card system has been established to note any concerns that need to be raised with a specific contractor so they can promptly be addressed. “Each contractor is also given a grade annually, which is taken into account when contracts are up for renewal or companies are invited to bid on new work,” St-Arneault says. Jocelyn Bernier, Construction Sorel’s director of construction and quality, says his company welcomes the feedback regarding safety. “The SLSMC report card tells us both our safety strengths and what could still be improved,” he says. “We keep a copy of the report on our trailer wall so that every worker sees it daily.” The vast majority of contractors have been very open to the Seaway’s approach and cooperative in resolving any issues,

Safety Story

Employee suggestions SLSMC employees have been encouraged to submit additional safety ideas by completing an online form. I-GEN – short for Idea Generation. It has spurred 432 ideas for improvements at the Seaway since it was launched five years ago. “Of these, 120 relate to safety and 34 have been implemented,” St-Arneault confirms.

“For instance, we’ve installed rubber matting on stairs that could become slippery during the winter,” he says. “We’re also posting signs to remind all employees to back into their parking spot because various statistics indicate there are fewer incidents if people drive forward rather than in reverse when leaving a parking lot.” Another worker’s suggestion prompted the SLSMC to establish a weather/road condition app that all employees can quickly consult before traveling. “Our employees are on the road a lot,” St-Arneault notes. “So this is a way for them to assess if they should drive and, if so, what they should

particularly keep in mind in terms of precautions or perhaps areas to avoid.” The corporation also hosts a series of events for North American Occupational Safety and Health (NAOSH) Week to encourage all of its employees to “make safety a habit.” The various activities include safety equipment audits and deployment exercises, wellness walks, as well as presentations on water safety to local school children. “And, of course, we’re always on the lookout for other ways to ensure and improve safety at the Seaway,” St-Arneault says. “Safety is an ongoing top priority.” n

Photo: SLSMC

St-Arneault indicates. “They appreciate how our system helps them to improve onthe-job safety at all of their sites. Grading systems always tends to motivate people to improve.”


41 41


Look Ahead

Great Lakes Outlook:

2017 ECONOMIC PACE IMPROVES BMO Senior Economist Robert Kavcic gives his forecast for the Great Lakes economy and the major sectors supported by marine shipping


he Great Lakes-St. Lawrence region is a vital driver of North American economic output, employment and trade, accounting for nearly a third of combined Canadian and U.S. output, jobs and exports. The region’s expansion is expected to firm in 2017 as manufacturing and exports in Ontario and Quebec remain supported by a weak currency and firm U.S. demand, while states in the region see an ongoing housing and consumer expansion, improvement in business investment, but a headwind still blowing in the form of a strong U.S. dollar. Real GDP growth across the region is projected to average a solid 2.0 per cent this year, up from 1.7 per cent estimated for 2016. That would place the region somewhat behind the broader U.S. average again—potential growth is simply softer—but slightly ahead of the Canadian average, as the major oil-producing provinces are still digging out of recession.

ONTARIO AND QUEBEC BENEFIT FROM LOWER OIL PRICES Indeed, Canada’s regional growth landscape continues to see a dramatic shake-up, with Ontario and Quebec benefiting from many of the offshoots of lower oil prices—lower input costs, a weaker Canadian dollar and two Bank of Canada interest rate cuts that we otherwise would not have seen. Against that backdrop, the economic environment on Canada’s side of the Great Lakes has actually improved meaningfully, even as growth nationally has struggled.

AUTO INDUSTRY MOTORS AHEAD While the energy sector is just now finding a footing, North American car and truck production continues to motor ahead, hitting a record 18.2 million units in 2016. While Ontario’s output is effectively at capacity and not drawing in new investment, Michigan has seen production rise sharply over the past three years, despite a broader move in activity toward the Southern U.S. and Mexico. Broader factory activity is mixed, with those tied to agriculture and energy struggling as capital spending in those sectors continues to retrench. The good news is that regional manufacturing surveys in Chicago and Milwaukee, for example,

showed better momentum in new orders heading into 2017. The housing market continues to expand modestly across the U.S. Midwest. Stillattractive affordability, healthy job growth and easing in credit conditions should support continued gains in this sector. Importantly, U.S. housing affordability remains attractive enough that home prices will continue to rise even as the Federal Reserve raises interest rates more meaningfully (perhaps two or three times this year). Meantime, Toronto’s market continues to set record price levels and conditions in Southwestern Ontario have firmed, supporting healthy new construction activity. For consumers across the region, a strengthening labour market will remain supportive. The biggest challenge on this front is demographics, with population growth in the region grinding down and some states, like Illinois for example, seeing persistent net outflows to faster-growing states in the West and South. Government finances remain mixed in the region. While most states have seen their fiscal positions improve meaningfully in recent years, Illinois’ pension reform remains a problem area, with its credit rating now flirting with junk status. In Ontario, while the budget will likely be balanced this coming fiscal year, net debt continues to climb as the province borrows to fund capital spending programs, despite a rising tax burden (most recently through the cap-and-trade program). On the flip


side, Quebec is seeing some of the best credit momentum in the region, with net debt now falling as a share of GDP, and the Province in position to begin easing the tax burden.

U.S. TRADE POLICY UNCERTAINTY Finally, business investment is poised to improve after declining in 2016, with business confidence surging into year-end. While optimism has risen on the back of a pro-growth platform from the new U.S. Administration, policy uncertainty remains, particularly in areas such as trade. The latter is a major issue given the cross-border connectedness of the supply chain in the Great Lakes region. At the time of writing, we are still awaiting detailed measures on this front, but the fact that trade in goods between the U.S. and Canada is nearly balanced argues for a limited action. n





United States Canada

2.6 1.6 2.4 0.9 1.3 2.0

Great Lakes-St. Lawrence Region Ontario Quebec Illinois Indiana Wisconsin Minnesota Michigan Pennsylvania Ohio New York Source: BMO Capital Markets Economics

2.5 1.2 1.8 1.4 1.1 1.9 1.6 2.8 1.8 0.9

2.6 2.2 1.8 1.6 1.5 1.8 1.9 2.2 1.4 1.7 2.0 2.3 1.4 2.0 2.0 2.2 1.5 1.9 1.2 1.8 43

Look Ahead

ECONOMIC OUTLOOK: Industry executives in the know give their forecasts for the 2017 shipping season and share their upcoming ventures.

TERENCE BOWLES, PRESIDENT AND CEO, THE ST. LAWRENCE SEAWAY MANAGEMENT CORPORATION While the 2016 season started off a bit slow, the Seaway staged a strong performance towards the end of the year. That strong performance in the final stretch resulted in a total tonnage figure for 2016 that almost matched 2015’s tonnage, finishing the year with a modest three per cent decrease. Economists are once again calling for a period of slow but steady growth going forward, with the IMF projecting that the Canadian economy will grow by 1.9 per cent in 2017, the U.S. by 2.3 per cent and Europe by 1.6 per cent. The ratification of the CETA trade agreement with Europe and the upswing in growth projected for the United States will potentially lead to an increase in trade activity. However, we cannot ignore the uncertainties posed by BREXIT in the UK, as well as the unknowns brought about by the new U.S. administration’s views on trade, and the prospect of various elections in Europe bringing about changes that may reshape the general political climate on global trade. Focusing closer on our key cargo sectors, last year’s large grain harvest has resulted in very healthy grain storage levels being carried over into this year. As well, record Chinese iron ore imports in 2016 have led to some strengthening in iron ore prices. These factors provide the basis for optimism concerning the potential for grain and iron ore shipments, and consequently, we hope to see an improvement in Seaway cargo volumes in 2017. n


LOUIS MARTEL, PRESIDENT AND CEO, CSL GROUP Although the 2016 Great Lakes shipping season was better than originally expected thanks to an uptake in grain demand in the fall, we are very far from the types of results we were seeing in previous years. Shipping markets are by nature cyclical, but the uncertainty we have witnessed in the past few years is unprecedented in recent history, and putting enormous pressures on shipping companies worldwide. We hope to see a market recovery in 2017, but we’re not counting on it. Amid the continued volatility, Canada Steamship Lines is staying focused on reducing costs, gaining efficiencies and improving the overall performance and flexibility of our operations by taking full advantage of our modern fleet and leveraging new technologies. n

ERIC D. MCKENZIE, VICEPRESIDENT, TECHNICAL SERVICES LOWER LAKES TOWING LTD., A SUBSIDIARY OF RAND LOGISTICS, INC. In the 2016 sailing season, we saw an unexpected and significant decline in demand from our aggregates customers, particularly as it related to materials for use in public infrastructure projects, and significantly lower salt tonnage due to higher than normal inventories resulting from last year’s unusually dry and mild winter in the Great Lakes region. On the other hand, we experienced an unexpected strength in export iron ore due to strengthening of the overseas market and an incredibly strong grain demand in the second half of the season which resulted in our reintroducing one of our vessels back into service in mid-September which originally was not expected to sail during the season. Moving forward, some of the challenges we are facing, along with others in our industry, are as a result of the regulatory environment, which is making it more costly for us to do business in the Great Lakes region. The main regulatory issue continues to be ballast water treatment systems and their approval for Great Lakes service. n

Look Ahead

WAYNE SMITH, SR. VICE-PRESIDENT, COMMERCIAL, ALGOMA CENTRAL CORPORATION While 2016 Great Lakes-Seaway cargo shipments had a weak start, many segments started to show improvement during the second half of the year. These improvements are expected to continue in 2017. Specifically: • Canada produced the second largest crop in history. • Iron ore prices rose by 83 per cent over the year, leading to an export ore program. • With rising oil prices drilling activity has increased. Algoma is also welcoming the first of our new seven vessel Equinox self-unloader newbuilding program. Each Equinox selfunloader features all of the Equinox Class design innovations including an integrated exhaust gas scrubber system. The first to arrive later in 2017 will be the Algoma Innovator. This 650’ Class self-unloader features a forward cargo discharge boom specially designed to access smaller and shallower upper Great Lakes ports for aggregate and salt shippers. The first of our Chinese-built 740’ self-unloaders will also arrive in Canada later in 2017. The remaining five new Equinox self-unloaders will arrive in 2018 and early 2019. In addition, the Strongfield, the last of our series of four Equinox gearless bulkers will join our fleet in the summer of 2017. Following the creation of our new joint venture called NovaAlgoma Cement Carriers Ltd., we now have seven cement carriers sailing, plus four new projects under active development including NACC Quebec, which will commence service for the new McInnis Cement facility located in Port Daniel, Quebec in early Q2 2017. n

DEAN HAEN, DIRECTOR, BROWN COUNTY PORT AND RESOURCE RECOVERY DEPARTMENT GREEN BAY, WI 2016 was a busy year at the Port of Green Bay and 2017 should be equally robust. The major positive contributors to the 2016 season were petroleum product imports; up by an incredible 1,421 percent. The change in petroleum imports was the result of a pipeline shutdown, which had served Northeast Wisconsin. With the closure, what had in the past been exports of diesel, gasoline and ethanol, flipped to imports to meet demand. Overall, in all categories, the year finished just shy of projections, with total cargo of 1.8 million metric tons. Looking to 2017, petroleum product imports will rise as the pipeline shutdown continues. The Port also expects increases in limestone. However, there will be continued declines in coal and cement shipments due to low cost natural gas and the completion of Wisconsin’s Interstate 41 project. With the Port being vital to our area economy, we continue to look for ways to expand the movements of diverse cargo and extend the Port’s reach to new markets. n

GEOFFREY WILSON, CHIEF EXECUTIVE OFFICER, PORTSTORONTO In 2016, the port recorded another strong year with more than 1.8 million metric tons of cargo delivered through the Port of Toronto. Additionally, more than 157 ships visited the Port of Toronto in 2016 bringing sugar, road salt, cement and aggregate directly into the heart of the city. Overall port tonnage was up more than eleven per cent. Cement cargo reached a twenty-year high at 670,000 tons — representing a fourteen per cent increase over 2015. Stone, aggregate and sand cargo levels nearly tripled totalling just over 166,000 tons, while salt imports increased by nearly four per cent to 498,000 tons. Sugar imports continued to be strong with approximately 493,000 tons of raw sugar being delivered via the port. In addition to an increase in traditional marine cargo delivered to the port, seven passenger cruise ships carrying more than 2,400 passengers visited PortsToronto’s Cruise Ship Terminal in 2016. From the sugar we use to sweeten our coffee, to the salt used on our roads to keep drivers safe, to the concrete used in Toronto’s booming construction industry, the goods delivered through Toronto’s Port have a significant impact on the people, projects, and industries of Toronto. In 2017 and beyond, the Port will continue to provide Canadian and international businesses with a convenient, cost-effective and environmentally-responsible way of bringing goods into Canada’s largest city. n





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A FLEET THAT’S READY FOR ANYTHING. Experienced and adaptive, we deliver turnkey solutions that support customer success in a wide range of transportation and project challenges. Safety, quality and respect for the environment are at the heart of our operations. Manned by highly skilled sailing crew, our ever-growing diverse and versatile fleet of tugs, barges, workboats and vessels operate throughout the Great Lakes, St. Lawrence River, East Coast and Canadian Arctic.


McKeil Marine’s Evans Spirit is the proud recipient of International Bulk Journal’s 2016 Bulk Ship of the Year Award.





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PORT OF HAMILTON Sourthern Ontario’s

Gateway to the


Eastern Ontario’s Premier Port Tel.: 613.925.4228

PORT OF JOHNSTOWN YOUR BEST MOVE ON THE GREAT LAKES The Port of Hamilton is the largest Canadian port on the Great Lakes. With numerous Seaway-depth berths, shippers through the Port of Hamilton have access to shipping destinations in the Great Lakes and around the globe.


Handling, transloading and storage of a wide range of commodities:

dry bulk • liquid bulk • breakbulk project cargo & containers

Our range of marine services is the most comprehensive in the industry. Whatever your needs in ship construction and repair, dredging, specialized equipment rental, harbour towing or marine transportation, our expertise and creativity will be useful in providing you with ingenious solutions tailored to your needs.

why not find out more? GROUPOCEAN.COM


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Call 1.800.263.2131 or visit


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WHY GO WEST TO SHIP EAST? Did you know that in 2016, one in five containers handled at the Port either originated in or was destined for Asia? Thanks to our direct connections with transshipment ports in the Mediterranean and Northern Europe, we offer competitive and alternative routings to Southeast Asia and the Far East. Find out what we can do for you at

On everybOdy’s lips Find out why at








PORT DE MONTRÉAL 7.25’’ X 4.75’’

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