Marine Delivers Magazine 2018

We transform ideas

into innovation.

MARITIME TRANSPORTATION OF GENERAL CARGO, PROJECT CARGO, DRY BULK AND LIQUID BULK TURNKEY LIFTING AND HANDLING SERVICES

info@desgagnes.com desgagnes.com 418 692 1000

WINNER

cslships.com 2

3

We transform ideas

into innovation.

MARITIME TRANSPORTATION OF GENERAL CARGO, PROJECT CARGO, DRY BULK AND LIQUID BULK TURNKEY LIFTING AND HANDLING SERVICES

info@desgagnes.com desgagnes.com 418 692 1000

WINNER

cslships.com 2

3

PAVING THE WAY ON THE H20 HWY.

CONTENTS M A G A Z I N E

PUBLISHER

Chamber of Marine Commerce EDITORS

McAsphalt Marine Transportation Limited (MMTL) specializes in providing marine transportation that goes the extra mile.

Leo Ryan and Julia Fields MARKETING AND BUSINESS DEVELOPMENT CONSULTANT

We pride ourselves in offering our customers the safest, most environmentally friendly and efficient means of transportation “on time, every time”.

Sophie Belina Brzozowska DESIGN & LAYOUT

SPIN Visual Communications www.spinvisual.com

16

EDITORIAL OFFICE

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

18 7

FROM THE PUBLISHER

On the Radar: Building on economic and environmental progress 9 2018 SPECIAL PUBLICATION

Message from Congressman Garret Graves

10 NEWS UPDATES Column from the Great Lakes St. Lawrence Governors and Premiers 11 Canadian ship and Seaway winter work: $114 million economic boost

Subscribe to our regular news at

www.marinedelivers.com @MarineDelivers Operating two Articulated

Copyright 2018 Chamber of Marine Commerce The content of Marine Delivers Magazine may not be reproduced without prior written consent.

Tug/Barge (ATB) units, the “Everlast/Norman McLeod” and the “Leo A. McArthur/ John J. Carrick”, on the Great

Printed in Canada.

Lakes, St. Lawrence Seaway and Eastern Seaboard.

4

mcasphalt.com

12 POLICY Canada’s Pilotage regime is stuck in the 1970s; it’s time for a 21st century overhaul 14 Go East: Rising grain opportunities benefit Great Lakes-Seaway ports 16 Fleet renewal bolsters grain transport competitiveness 18 ENVIRONMENTAL STRIDES Collaboration to protect Right Whales in Gulf of St. Lawrence 20 Whale Spotters

28 22 IN CONVERSATION Ocean Group 26 TRADE WINDS How to move a hotel by water 27 NEWS UPDATE Great Lakes ship contest huge success in raising industry awareness 28 Intermodal investments deliver new business for Oshawa 30 INFRASTRUCTURE INVESTMENT Federal infrastructure grants boost U.S. Great Lakes port expansion 32 COMMUNITY OUTREACH Ports innovate to reach out to communities 35 ECONOMIC OUTLOOK Cyclical tailwinds blowing but what about NAFTA? 36 LOOK AHEAD Industry executives in the know give their forecasts for the 2018 season 38 ADVERTISERS’ INDEX 5

PAVING THE WAY ON THE H20 HWY.

CONTENTS M A G A Z I N E

PUBLISHER

Chamber of Marine Commerce EDITORS

McAsphalt Marine Transportation Limited (MMTL) specializes in providing marine transportation that goes the extra mile.

Leo Ryan and Julia Fields MARKETING AND BUSINESS DEVELOPMENT CONSULTANT

We pride ourselves in offering our customers the safest, most environmentally friendly and efficient means of transportation “on time, every time”.

Sophie Belina Brzozowska DESIGN & LAYOUT

SPIN Visual Communications www.spinvisual.com

16

EDITORIAL OFFICE

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

18 7

FROM THE PUBLISHER

On the Radar: Building on economic and environmental progress 9 2018 SPECIAL PUBLICATION

Message from Congressman Garret Graves

10 NEWS UPDATES Column from the Great Lakes St. Lawrence Governors and Premiers 11 Canadian ship and Seaway winter work: $114 million economic boost

Subscribe to our regular news at

www.marinedelivers.com @MarineDelivers Operating two Articulated

Copyright 2018 Chamber of Marine Commerce The content of Marine Delivers Magazine may not be reproduced without prior written consent.

Tug/Barge (ATB) units, the “Everlast/Norman McLeod” and the “Leo A. McArthur/ John J. Carrick”, on the Great

Printed in Canada.

Lakes, St. Lawrence Seaway and Eastern Seaboard.

4

mcasphalt.com

12 POLICY Canada’s Pilotage regime is stuck in the 1970s; it’s time for a 21st century overhaul 14 Go East: Rising grain opportunities benefit Great Lakes-Seaway ports 16 Fleet renewal bolsters grain transport competitiveness 18 ENVIRONMENTAL STRIDES Collaboration to protect Right Whales in Gulf of St. Lawrence 20 Whale Spotters

28 22 IN CONVERSATION Ocean Group 26 TRADE WINDS How to move a hotel by water 27 NEWS UPDATE Great Lakes ship contest huge success in raising industry awareness 28 Intermodal investments deliver new business for Oshawa 30 INFRASTRUCTURE INVESTMENT Federal infrastructure grants boost U.S. Great Lakes port expansion 32 COMMUNITY OUTREACH Ports innovate to reach out to communities 35 ECONOMIC OUTLOOK Cyclical tailwinds blowing but what about NAFTA? 36 LOOK AHEAD Industry executives in the know give their forecasts for the 2018 season 38 ADVERTISERS’ INDEX 5

PUBLISHER’S MESSAGE

ON THE RADAR:

Building on economic momentum and environmental progress

WE KNOW WHAT POWERS YOU. Sterling Fuels provides a full range of fuels and ExxonMobil lubricants, all of which meet the strictest industry standards. Just like the service we offer, whether by water, land or truck.

WINDSOR | SARNIA | HAMILTON | HALIFAX

STERLINGFUELS.CA

3665 Russell St. Windsor, Ontario N9C 1E9 Tel: 519 253 4694 Email: info@sterlingfuels.ca

6

BRUCE R. BURROWS PRESIDENT, CHAMBER OF MARINE COMMERCE

A

s the shipping season gets underway, we have great potential to build on the recent economic momentum and environmental progress of Great LakesSt. Lawrence and coastal shipping in Canada and the U.S. 2017 was a year of significant cargo increases fueled by global economic recovery and new business wins by our members. But the difficult season closing as ships struggled to move through ice after an Arctic-like cold snap reminded us that challenges can arise even in the good years.

It’s paramount that sufficient U.S and Canadian Coast Guard icebreaking resources are allocated this spring to ensure a successful start to the 2018 shipping season. It’s imperative that we have efficient and reliable transporation for our customers, such as the grain farmers who we anticipate will have a large carry over harvest ready to export to world markets. Our cover story

on page 14 details the major capital investments that have been made by grain handlers in the Great Lakes and St. Lawrence waterway and the importance of the Eastern transportation corridor for the agricultural sector. Our ship operators also share on page 16-17 how their billions of dollars in fleet renewal are game changers for both grain transportation and the overall environment.

The need for more ice-breaking services this spring also underscores the critical role that federal governments must play in investing in national infrastructure that all of us depend on either directly or indirectly for our well-being and livelihoods --- such as upgrading Coast Guard ships, ports and waterways like the St. Lawrence Seaway and other channels. These assets, just like roads, bridges and airports, contribute to our nations’ global competitiveness and to the viability of our cities and our businesses.

As our U.S. ports infrastructure story on pages 30-31 illustrates, federal programs are necessary for projects to move forward and are supplemented by capital from the private sector and other levels of government. These port improvements have, in turn, attracted new business, creating jobs and other benefits for the region.

We urge President Trump and the U.S. Congress to develop a federal infrastructure spending program that is adequately resourced and does not merely download the lion’s share of the responsibility to local communities and the private sector.

Looking forward to the months ahead, one of the most significant developments for the future success of marine transportation is the Pilotage Review currently underway by the Canadian government. This is an important initiative for all CMC members, which range from shipowners and ports to the customers we serve in the agricultural, manufacturing, mining and energy sectors.

The review is an opportunity for the federal government to work with the shipping industry to improve a costly, inefficient government-mandated service that has not been overhauled in over 45 years. The CMC’s recommendations for a 21st century makeover are outlined on pages 12-13.

Another issue that requires a collaborative approach is the protection of endangered North Atlantic Right Whales in the Gulf of St. Lawrence. The shipping industry has been working with government and academia throughout the winter to devise solutions based on strong science that both protect the whales and minimize the economic impacts that slowing marine traffic causes to all Canadians. Our story on pages 18-19 looks at the complexities of tracking whales and potential technological solutions.

We also delve into how shipping crews are providing valuable data to better understand and protect marine mammals.

And finally, we have a great story to tell about marine shipping’s commitment to innovation, workforce development and environmental progress. On pages 32-34, some of our port members share how they have upped their game in communicating these benefits and partnering with their neighbours. Good communications, not the proverbial fences, make good neighbours.

And so, as we navigate through 2018, the Chamber of Marine Commerce will be following that good example of collaboration — working closely with government officials and other community stakeholders on both sides of the border to share our story and develop programs that facilitate economic growth and recognize the marine industry’s significant environmental and social benefits.

As always, we welcome input, expertise and feedback from our members as our CMC team continues to build a strong united association that delivers results. n 7

PUBLISHER’S MESSAGE

ON THE RADAR:

Building on economic momentum and environmental progress

WE KNOW WHAT POWERS YOU. Sterling Fuels provides a full range of fuels and ExxonMobil lubricants, all of which meet the strictest industry standards. Just like the service we offer, whether by water, land or truck.

WINDSOR | SARNIA | HAMILTON | HALIFAX

STERLINGFUELS.CA

3665 Russell St. Windsor, Ontario N9C 1E9 Tel: 519 253 4694 Email: info@sterlingfuels.ca

6

BRUCE R. BURROWS PRESIDENT, CHAMBER OF MARINE COMMERCE

A

s the shipping season gets underway, we have great potential to build on the recent economic momentum and environmental progress of Great LakesSt. Lawrence and coastal shipping in Canada and the U.S. 2017 was a year of significant cargo increases fueled by global economic recovery and new business wins by our members. But the difficult season closing as ships struggled to move through ice after an Arctic-like cold snap reminded us that challenges can arise even in the good years.

It’s paramount that sufficient U.S and Canadian Coast Guard icebreaking resources are allocated this spring to ensure a successful start to the 2018 shipping season. It’s imperative that we have efficient and reliable transporation for our customers, such as the grain farmers who we anticipate will have a large carry over harvest ready to export to world markets. Our cover story

on page 14 details the major capital investments that have been made by grain handlers in the Great Lakes and St. Lawrence waterway and the importance of the Eastern transportation corridor for the agricultural sector. Our ship operators also share on page 16-17 how their billions of dollars in fleet renewal are game changers for both grain transportation and the overall environment.

The need for more ice-breaking services this spring also underscores the critical role that federal governments must play in investing in national infrastructure that all of us depend on either directly or indirectly for our well-being and livelihoods --- such as upgrading Coast Guard ships, ports and waterways like the St. Lawrence Seaway and other channels. These assets, just like roads, bridges and airports, contribute to our nations’ global competitiveness and to the viability of our cities and our businesses.

As our U.S. ports infrastructure story on pages 30-31 illustrates, federal programs are necessary for projects to move forward and are supplemented by capital from the private sector and other levels of government. These port improvements have, in turn, attracted new business, creating jobs and other benefits for the region.

We urge President Trump and the U.S. Congress to develop a federal infrastructure spending program that is adequately resourced and does not merely download the lion’s share of the responsibility to local communities and the private sector.

Looking forward to the months ahead, one of the most significant developments for the future success of marine transportation is the Pilotage Review currently underway by the Canadian government. This is an important initiative for all CMC members, which range from shipowners and ports to the customers we serve in the agricultural, manufacturing, mining and energy sectors.

The review is an opportunity for the federal government to work with the shipping industry to improve a costly, inefficient government-mandated service that has not been overhauled in over 45 years. The CMC’s recommendations for a 21st century makeover are outlined on pages 12-13.

Another issue that requires a collaborative approach is the protection of endangered North Atlantic Right Whales in the Gulf of St. Lawrence. The shipping industry has been working with government and academia throughout the winter to devise solutions based on strong science that both protect the whales and minimize the economic impacts that slowing marine traffic causes to all Canadians. Our story on pages 18-19 looks at the complexities of tracking whales and potential technological solutions.

We also delve into how shipping crews are providing valuable data to better understand and protect marine mammals.

And finally, we have a great story to tell about marine shipping’s commitment to innovation, workforce development and environmental progress. On pages 32-34, some of our port members share how they have upped their game in communicating these benefits and partnering with their neighbours. Good communications, not the proverbial fences, make good neighbours.

And so, as we navigate through 2018, the Chamber of Marine Commerce will be following that good example of collaboration — working closely with government officials and other community stakeholders on both sides of the border to share our story and develop programs that facilitate economic growth and recognize the marine industry’s significant environmental and social benefits.

As always, we welcome input, expertise and feedback from our members as our CMC team continues to build a strong united association that delivers results. n 7

MESSAGE FROM

CONGRESSMAN GARRET GRAVES

SAVE

SAVE

TIME &

MONEY

CMC AD

DIRECT ACCESS INTO ALL OF NORTH AMERICA

TRADING IN OVER 50 GLOBAL MARKETS

BULK, BREAK BULK, LIQUID & SPECIAL CARGO

SEAMLESS SUPPLY CHAIN WITH A CONNECTED NETWORK

SIMPLE. COMPETITIVE. CONNECTED. EUROPE TO U.S. MID-WEST

SPECIAL CARGO ICON/BADGE

U.S. MID-WEST TO NORTH AFRICA

SHIP WITH US TODAY

8

ON THE INFRASTRUCTURE FRONT, THE MARITIME INDUSTRY AND ITS PARTNERS ARE CRUCIAL COMPONENTS OF THE UNITED STATES AND CANADA’S SUCCESS.

REPRESENTING LOUISIANA‘S 6TH DISTRICT

A

s Chair of the Water Resources and Environment Subcommittee of the House Transportation and Infrastructure Committee, I am honored to share my thoughts on transportation and infrastructure improvements with the Chamber of Marine Commerce in this edition of Marine Delivers Magazine.

Currently the United States and Canada are experiencing strong economic growth. Tax and regulatory reform have helped to promote investment and additional economic activity. Nevertheless, we must continue to improve the business and regulatory environment to ensure that progress is sustained. The next bottlenecks in our country’s growth relate to workforce and infrastructure. On the infrastructure front, the maritime industry and its partners are crucial components of the United States and Canada’s success, and I will continue to advocate for both our maritime sector and efficient, effective project delivery.

When most people think of infrastructure projects, they think of roads and bridges. But the importance of our maritime industry cannot be overstated. Our vast network of inland waterways and ports are vital assets key to our global competitiveness.

The sad fact, however, is that our locks and dams are on average over 50 years old, and many of our ports lack a sufficient depth to keep up with larger and larger ships. I engaged the Trump administration back before the election to impress upon them the need to address our maritime infrastructure, and continue to do so. This year we have a tremendous opportunity to tackle some of our nation’s infrastructure problems, and I will continue to work with the administration and my colleagues in Congress to focus the necessary attention on improving our maritime infrastructure.

When I visited Puerto Rico in the aftermath of Hurricane Maria this fall, I saw firsthand how important it is to have a functioning maritime infrastructure. No place are ports more important than on an island who depends on them as gateways to trade and access for critical goods and services. Until Puerto Rico’s ports were open following the devastating hurricanes, indispensable supplies were extremely limited. Even after the ports were opened, damaged roads prevented vehicular access to some areas. Unfortunately, there were some who wanted to blame our incredible domestic maritime industry for the lack of supplies on the island and pushed for an unnecessary waiver to the Jones Act that resulted in no benefit to the island or American workers.

It will take more than money to achieve needed improvements in our nation’s infrastructure. We need to consider innovative and alternative approaches to our regulatory structure.

I do not believe in the myth that economic growth comes at the expense of the environment. My home state of Louisiana is a testament to how you can have a robust economy and still be surrounded by unparalled environmental productivity with abundant outdoor opportunities. I believe effective regulatory processes can be efficient and also allow for the necessary protections of our environment. Frankly, we do not currently have the correct balance and that is one of the reasons I am a supporter of H.R. 3133 the SEA act, which would amend the Marine Mammal Protection act to provide more certainty in the permitting process for infrastructure projects, while still protecting marine mammals. Until we are able to right size our regulatory programs it will be a challenge to implement the infrastructure projects we need in a cost effective and timely manner.

I will continue to work with the Administration to ensure that any infrastructure investment includes improvements to our waterways and maritime infrastructure. This is a unique moment in our history and we must not let the opportunity to substantially improve transportation infrastructure pass.

Thank you for the opportunity to be a part of this proud publication and I know that we will be effective partners moving forward in maintaining and improving our crucial maritime infrastructure. n

9

MESSAGE FROM

CONGRESSMAN GARRET GRAVES

SAVE

SAVE

TIME &

MONEY

CMC AD

DIRECT ACCESS INTO ALL OF NORTH AMERICA

TRADING IN OVER 50 GLOBAL MARKETS

BULK, BREAK BULK, LIQUID & SPECIAL CARGO

SEAMLESS SUPPLY CHAIN WITH A CONNECTED NETWORK

SIMPLE. COMPETITIVE. CONNECTED. EUROPE TO U.S. MID-WEST

SPECIAL CARGO ICON/BADGE

U.S. MID-WEST TO NORTH AFRICA

SHIP WITH US TODAY

8

ON THE INFRASTRUCTURE FRONT, THE MARITIME INDUSTRY AND ITS PARTNERS ARE CRUCIAL COMPONENTS OF THE UNITED STATES AND CANADA’S SUCCESS.

REPRESENTING LOUISIANA‘S 6TH DISTRICT

A

s Chair of the Water Resources and Environment Subcommittee of the House Transportation and Infrastructure Committee, I am honored to share my thoughts on transportation and infrastructure improvements with the Chamber of Marine Commerce in this edition of Marine Delivers Magazine.

Currently the United States and Canada are experiencing strong economic growth. Tax and regulatory reform have helped to promote investment and additional economic activity. Nevertheless, we must continue to improve the business and regulatory environment to ensure that progress is sustained. The next bottlenecks in our country’s growth relate to workforce and infrastructure. On the infrastructure front, the maritime industry and its partners are crucial components of the United States and Canada’s success, and I will continue to advocate for both our maritime sector and efficient, effective project delivery.

When most people think of infrastructure projects, they think of roads and bridges. But the importance of our maritime industry cannot be overstated. Our vast network of inland waterways and ports are vital assets key to our global competitiveness.

The sad fact, however, is that our locks and dams are on average over 50 years old, and many of our ports lack a sufficient depth to keep up with larger and larger ships. I engaged the Trump administration back before the election to impress upon them the need to address our maritime infrastructure, and continue to do so. This year we have a tremendous opportunity to tackle some of our nation’s infrastructure problems, and I will continue to work with the administration and my colleagues in Congress to focus the necessary attention on improving our maritime infrastructure.

When I visited Puerto Rico in the aftermath of Hurricane Maria this fall, I saw firsthand how important it is to have a functioning maritime infrastructure. No place are ports more important than on an island who depends on them as gateways to trade and access for critical goods and services. Until Puerto Rico’s ports were open following the devastating hurricanes, indispensable supplies were extremely limited. Even after the ports were opened, damaged roads prevented vehicular access to some areas. Unfortunately, there were some who wanted to blame our incredible domestic maritime industry for the lack of supplies on the island and pushed for an unnecessary waiver to the Jones Act that resulted in no benefit to the island or American workers.

It will take more than money to achieve needed improvements in our nation’s infrastructure. We need to consider innovative and alternative approaches to our regulatory structure.

I do not believe in the myth that economic growth comes at the expense of the environment. My home state of Louisiana is a testament to how you can have a robust economy and still be surrounded by unparalled environmental productivity with abundant outdoor opportunities. I believe effective regulatory processes can be efficient and also allow for the necessary protections of our environment. Frankly, we do not currently have the correct balance and that is one of the reasons I am a supporter of H.R. 3133 the SEA act, which would amend the Marine Mammal Protection act to provide more certainty in the permitting process for infrastructure projects, while still protecting marine mammals. Until we are able to right size our regulatory programs it will be a challenge to implement the infrastructure projects we need in a cost effective and timely manner.

I will continue to work with the Administration to ensure that any infrastructure investment includes improvements to our waterways and maritime infrastructure. This is a unique moment in our history and we must not let the opportunity to substantially improve transportation infrastructure pass.

Thank you for the opportunity to be a part of this proud publication and I know that we will be effective partners moving forward in maintaining and improving our crucial maritime infrastructure. n

9

News Updates

News Updates

JUMPSTARTING THE GREAT LAKES-ST. LAWRENCE MARITIME TRANSPORTATION SYSTEM

By David Naftzger, Executive Director, Great Lakes St. Lawrence Governors & Premiers

I

n 2016, our region’s Premiers and Governors released the first-ever strategy to jumpstart the Great Lakes St. Lawrence maritime transportation system. Since that time, they have been working aggressively to follow through on the strategy’s promise of growing the region’s maritime sector, which already contributes more than US$30 billion to the Canadian and US economies and accounts for more than 220,000 jobs.

Leveraging maritime transport on the Lakes and on the St. Lawrence River will boost the region’s industrial core and US$6 trillion economy.

Of course, success will depend not only on follow-through by the Provinces and States, but a collaborative set of actions by many partners including the federal governments, industry and others. The Canadian federal government must continue to play a key role and several near-term actions can help create long-term results.

Bottlenecks

Much of the region’s maritime infrastructure is decades old. Capability limitations and poor connectivity with other modes of transportation deter users. The Premiers’ and Governors’ strategy calls for tactical investments in ports and other infrastructure to improve reliability, capability and connectivity in order to relieve bottlenecks that stifle connections between mines and mills, factories and markets, and farms and consumers. Most immediately, it is critical to identify bottlenecks, then develop and implement plans to open them.

Transport Canada has initiated a nationwide effort to do just this through its Trade and Transport Corridors Initiative.

10

Canadian ship and Seaway winter work: $114 MILLION ECONOMIC BOOST

GREAT LAKES-ST. LAWRENCE MARITIME PRIORITIES FOR THE CANADIAN FEDERAL GOVERNMENT • • • •

Analyzing and Addressing System Bottlenecks Updating Pilotage Service Delivery Improving Icebreaking Reforming System Management through Developing a Binational Treaty

Bottleneck analysis must be completed in a timely manner, in order to identify investment opportunities and commence needed infrastructure improvements.

Pilotage

Canada recently initiated a review of the Pilotage Act. This is an opportunity to support the delivery of safe, efficient and environmentally responsible pilotage services. For many years, system users have been concerned about costs, administrative complexities and, in some instances, the unavailability of pilots. Transport Canada must address these issues while considering the rapid development of new technologies.

Building on any planned reforms, Canada and the U.S. should collaborate to convene a facilitated process to review and develop system-wide changes to the pilotage service delivery structure.

Icebreaking

Inadequate clearance of seasonal ice cover cripples affected ships, disrupts supply chains and deters system use. Users must have a predictable shipping season during which ice-free passage is assured. The Canadian federal government should collaborate with the U.S. to improve binational coordination, ensure needed funding for new icebreakers, and strategically manage the Great Lakes-St. Lawrence as a single system with regard to icebreaking.

System Management

The management of the region’s maritime system is fragmented and failing to keep pace with global competitors.

Immediate reforms are desperately needed—including better coordinated data, information and planning--while the region works toward the goal of a more efficient and competitive system. Recently, the Premiers and Governors endorsed development of a treaty between Canada and the U.S. to cooperatively manage the regional maritime system, and harmonize regulations across levels of governments.

Sustained engagement will be required by agencies in both federal governments including Transport Canada, Global Affairs Canada and the U.S. State Department.

The Premiers’ and Governors’ strategy for the regional maritime system reflects consensus on how to strengthen the Great Lakes-St. Lawrence system as a backbone of our economy, and a broad coalition of key regional partners supports implementing the recommended actions.

Work will be ongoing in coming years to realize the strategy’s promise. The Premiers and Governors are committed to continuing this important effort and creating results. Ontario and Québec have been fully engaged in this regional work, and all the provinces and states have been working to implement the suite of actions included in the strategy. Coupling this provincial leadership with determined follow-through by the Canadian federal government across the Great LakesSt. Lawrence system will be critical to overall success. n

C

anadian shipowners and the St. Lawrence Seaway have spent an estimated $114 million on repair and infrastructure projects this winter, boosting the economic fortunes of communities throughout the Great Lakes, the St. Lawrence and east coast.

Canadian shipowners have invested an estimated $79 million to tune-up and upgrade their vessels during the winter months — an annual exercise that keeps their vessels in tip-top shape to safely and efficiently deliver goods for North American businesses.

The St. Lawrence Seaway Management Corporation also allocated $35 million for infrastructure modernization and maintenance projects over the winter in 2017-2018 to electrical systems and lock-related machinery and gates, in advance of the Seaway opening on March 29.

“Even when ships are laid up for the winter, the marine sector is helping sustain well-paying, skilled jobs by spending millions of dollars with Canadian equipment suppliers, repair businesses, ship yards, and ports,” says Bruce Burrows, President of the Chamber of Marine Commerce. “This significant investment also demonstrates our industry’s commitment to continuously improve and modernize our transportation network to the benefit of Canadian businesses and communities.”

Vessel projects include engine and generator overhauls, steel and mechanical work, cargo belt repairs, navigation equipment and system hardware and software upgrades, safety and environmental equipment upgrades/certifications and various annual inspections. Several vessels also had five-year dry dock inspections, which are required by Transport Canada and survey all aspects of the ship below the

waterline. The work also includes the “Canadianization” of the Algoma Buffalo and Adam L., two vessels purchased in the U.S. by Algoma Central Corporation that are being re-flagged Canadian.

The economic impact of these investments is far-reaching with winter lay-up and/or vessel repairs taking place in Sarnia, Hamilton, Port Colborne, Thunder Bay, Windsor, Port Weller, Sault Ste. Marie, Isle-aux-Coudres (Quebec), Montreal, Quebec City, Les Méchins (Quebec), Trois Rivieres (Quebec), St. John’s (NFLD), Argentia (NFLD), Bay Roberts (NFLD), Sydney (NS), Erie (Pennsylvannia), Ashtabula (Ohio), Sturgeon Bay (Wisconsin).

The investments were carried out by Rand Logistics, CSL Group, Algoma Central Corporation, Transport Desgagnés, McKeil Marine, Ocean Group and McAsphalt Marine Transportation Limited. n

11

News Updates

News Updates

JUMPSTARTING THE GREAT LAKES-ST. LAWRENCE MARITIME TRANSPORTATION SYSTEM

By David Naftzger, Executive Director, Great Lakes St. Lawrence Governors & Premiers

I

n 2016, our region’s Premiers and Governors released the first-ever strategy to jumpstart the Great Lakes St. Lawrence maritime transportation system. Since that time, they have been working aggressively to follow through on the strategy’s promise of growing the region’s maritime sector, which already contributes more than US$30 billion to the Canadian and US economies and accounts for more than 220,000 jobs.

Leveraging maritime transport on the Lakes and on the St. Lawrence River will boost the region’s industrial core and US$6 trillion economy.

Of course, success will depend not only on follow-through by the Provinces and States, but a collaborative set of actions by many partners including the federal governments, industry and others. The Canadian federal government must continue to play a key role and several near-term actions can help create long-term results.

Bottlenecks

Much of the region’s maritime infrastructure is decades old. Capability limitations and poor connectivity with other modes of transportation deter users. The Premiers’ and Governors’ strategy calls for tactical investments in ports and other infrastructure to improve reliability, capability and connectivity in order to relieve bottlenecks that stifle connections between mines and mills, factories and markets, and farms and consumers. Most immediately, it is critical to identify bottlenecks, then develop and implement plans to open them.

Transport Canada has initiated a nationwide effort to do just this through its Trade and Transport Corridors Initiative.

10

Canadian ship and Seaway winter work: $114 MILLION ECONOMIC BOOST

GREAT LAKES-ST. LAWRENCE MARITIME PRIORITIES FOR THE CANADIAN FEDERAL GOVERNMENT • • • •

Analyzing and Addressing System Bottlenecks Updating Pilotage Service Delivery Improving Icebreaking Reforming System Management through Developing a Binational Treaty

Bottleneck analysis must be completed in a timely manner, in order to identify investment opportunities and commence needed infrastructure improvements.

Pilotage

Canada recently initiated a review of the Pilotage Act. This is an opportunity to support the delivery of safe, efficient and environmentally responsible pilotage services. For many years, system users have been concerned about costs, administrative complexities and, in some instances, the unavailability of pilots. Transport Canada must address these issues while considering the rapid development of new technologies.

Building on any planned reforms, Canada and the U.S. should collaborate to convene a facilitated process to review and develop system-wide changes to the pilotage service delivery structure.

Icebreaking

Inadequate clearance of seasonal ice cover cripples affected ships, disrupts supply chains and deters system use. Users must have a predictable shipping season during which ice-free passage is assured. The Canadian federal government should collaborate with the U.S. to improve binational coordination, ensure needed funding for new icebreakers, and strategically manage the Great Lakes-St. Lawrence as a single system with regard to icebreaking.

System Management

The management of the region’s maritime system is fragmented and failing to keep pace with global competitors.

Immediate reforms are desperately needed—including better coordinated data, information and planning--while the region works toward the goal of a more efficient and competitive system. Recently, the Premiers and Governors endorsed development of a treaty between Canada and the U.S. to cooperatively manage the regional maritime system, and harmonize regulations across levels of governments.

Sustained engagement will be required by agencies in both federal governments including Transport Canada, Global Affairs Canada and the U.S. State Department.

The Premiers’ and Governors’ strategy for the regional maritime system reflects consensus on how to strengthen the Great Lakes-St. Lawrence system as a backbone of our economy, and a broad coalition of key regional partners supports implementing the recommended actions.

Work will be ongoing in coming years to realize the strategy’s promise. The Premiers and Governors are committed to continuing this important effort and creating results. Ontario and Québec have been fully engaged in this regional work, and all the provinces and states have been working to implement the suite of actions included in the strategy. Coupling this provincial leadership with determined follow-through by the Canadian federal government across the Great LakesSt. Lawrence system will be critical to overall success. n

C

anadian shipowners and the St. Lawrence Seaway have spent an estimated $114 million on repair and infrastructure projects this winter, boosting the economic fortunes of communities throughout the Great Lakes, the St. Lawrence and east coast.

Canadian shipowners have invested an estimated $79 million to tune-up and upgrade their vessels during the winter months — an annual exercise that keeps their vessels in tip-top shape to safely and efficiently deliver goods for North American businesses.

The St. Lawrence Seaway Management Corporation also allocated $35 million for infrastructure modernization and maintenance projects over the winter in 2017-2018 to electrical systems and lock-related machinery and gates, in advance of the Seaway opening on March 29.

“Even when ships are laid up for the winter, the marine sector is helping sustain well-paying, skilled jobs by spending millions of dollars with Canadian equipment suppliers, repair businesses, ship yards, and ports,” says Bruce Burrows, President of the Chamber of Marine Commerce. “This significant investment also demonstrates our industry’s commitment to continuously improve and modernize our transportation network to the benefit of Canadian businesses and communities.”

Vessel projects include engine and generator overhauls, steel and mechanical work, cargo belt repairs, navigation equipment and system hardware and software upgrades, safety and environmental equipment upgrades/certifications and various annual inspections. Several vessels also had five-year dry dock inspections, which are required by Transport Canada and survey all aspects of the ship below the

waterline. The work also includes the “Canadianization” of the Algoma Buffalo and Adam L., two vessels purchased in the U.S. by Algoma Central Corporation that are being re-flagged Canadian.

The economic impact of these investments is far-reaching with winter lay-up and/or vessel repairs taking place in Sarnia, Hamilton, Port Colborne, Thunder Bay, Windsor, Port Weller, Sault Ste. Marie, Isle-aux-Coudres (Quebec), Montreal, Quebec City, Les Méchins (Quebec), Trois Rivieres (Quebec), St. John’s (NFLD), Argentia (NFLD), Bay Roberts (NFLD), Sydney (NS), Erie (Pennsylvannia), Ashtabula (Ohio), Sturgeon Bay (Wisconsin).

The investments were carried out by Rand Logistics, CSL Group, Algoma Central Corporation, Transport Desgagnés, McKeil Marine, Ocean Group and McAsphalt Marine Transportation Limited. n

11

Policy

Policy

CANADA’S PILOTAGE REGIME IS STUCK IN THE 1970s; IT’S TIME FOR A BOLD 21ST CENTURY OVERHAUL Chamber of Marine Commerce’s Key Proposed Reforms

W

ith the Pilotage Act Review well underway in Canada, the marine shipping industry and the federal government have a real opportunity to improve a critical service that has not been overhauled in over 45 years.

Led by Marc Grégoire (Chair) and his team at Transport Canada (TC), a final report from the Review is expected to be submitted to Minister Marc Garneau this April. CMC and its members urge the Minister to be bold, to move swiftly and make the significant changes that are needed to the Pilotage Act and its regulatory framework to support a modern transportation network, without jeopardizing safety and reliability.

This is an important initiative for all CMC members, which range from shipowners and ports to the customers we serve in the agricultural, manufacturing, mining and energy sectors.

While safety is paramount for everyone in our industry, pilotage – where a government-mandated pilot boards a ship to help navigate in designated areas — must be delivered with efficiency and competitiveness in mind.

12

Out-of-control costs Managed by federal Crown corporations, pilotage is a significant cost to users.

Pilotage costs have a long history of increasing at rates that far exceed the rate of inflation. Just in the past five years, fees, salaries and benefits paid to licensed pilots have increased 3.4 times more than CPI. For example, on the St. Lawrence River, the hourly cost of pilotage exceeds the cost of the entire crew of a vessel, or more than double the cost of a vessel’s captain. Out-ofcontrol costs, of this kind, don’t just hit our members’ bottom line – they drive business away altogether to other less environmentally-friendly transportation modes or worse, to other geographic regions – meaning the potential loss of revenues and jobs for Canadians.

Let’s be innovative 1. Objective: Safety and Efficiency

transportation system, meet users’ needs in a cost-effective manner, take advantage of modern technology and sound risk management practices, and is accountable and transparent. Such an objective would guide all regulatory and policy development, governance and service delivery, against which decisions, outcomes and performance can be measured.

2. One National Pilotage Authority One potential option is the creation of a not-for-profit corporation i.e., a National Pilotage Authority. With just over 400 pilots across Canada, pilotage is currently managed by four separate Crown Corporations; the Atlantic, Laurentian, Great Lakes and Pacific Pilotage Authorities. Each has their own set of regulations, operational procedures and management practices, which is inefficient, overly complex and unnecessary.

The Authority could be formed by consolidating and streamlining the management and administrative functions of the four regional authorities into one thus requiring fewer resources.

The four regional authorities could then become regional operation centres, scaled down versions of the existing authorities to focus solely on service delivery.

This would lead to increased efficiencies, cost reductions, a leaner structure and, most importantly, be an enabler for improvements into the future.

This national approach could still allow for any unique requirements in a particular region, where justified.

Recognizing the existing regional disparities in fees, restructuring must not result in an increase in fees in any region.

ON THE ST. LAWRENCE RIVER, THE HOURLY COST OF PILOTAGE EXCEEDS THE COST OF THE ENTIRE CREW OF A VESSEL, OR MORE THAN DOUBLE THE COST OF A VESSEL’S CAPTAIN.

3. Independent Regulatory Authority Pilotage regulatory powers should be separated from the delivery of pilotage services to avoid any conflicts that could arise when both are provided by the same organization. Regulatory powers could be taken on by the Government of Canada, i.e., Transport Canada with added resources to ensure the pilotage regulatory regime is effectively managed.

4. Reform Domestic Fleet Pilotage Certification Qualified masters and mates on Canadian domestic ships who hold pilotage certificates pilot their own vessels while in the Great Lakes and Seaway regions. Research indicates they have an exceptional safety record that is equivalent, if not better, to that of their government-mandated pilot counterparts. This is a reflection of the shipowners’ comprehensive and robust training program that uses onboard training and evaluation, testing the officer’s piloting skills and local knowledge. For these reasons, our domestic shipowners expect that pilotage authorities should be encouraging and expanding this highly successful program to other pilotage regions and should allow greater flexibility in the movement of pilotage certificate holders within a company’s fleet.

There have been several reviews and attempts to adjust the existing system with minor changes since the Pilotage Act came into force in 1972.

After 45 years, now is the time to try something bold, innovative and substantive to ensure safe navigation while improving the efficiency and competitiveness of Canada’s commercial marine transportation system well into the future. n

The Pilotage Act needs a clearly stated objective that speaks to a national pilotage system that will; promote a safe, efficient and competitive marine

13

Policy

Policy

CANADA’S PILOTAGE REGIME IS STUCK IN THE 1970s; IT’S TIME FOR A BOLD 21ST CENTURY OVERHAUL Chamber of Marine Commerce’s Key Proposed Reforms

W

ith the Pilotage Act Review well underway in Canada, the marine shipping industry and the federal government have a real opportunity to improve a critical service that has not been overhauled in over 45 years.

Led by Marc Grégoire (Chair) and his team at Transport Canada (TC), a final report from the Review is expected to be submitted to Minister Marc Garneau this April. CMC and its members urge the Minister to be bold, to move swiftly and make the significant changes that are needed to the Pilotage Act and its regulatory framework to support a modern transportation network, without jeopardizing safety and reliability.

This is an important initiative for all CMC members, which range from shipowners and ports to the customers we serve in the agricultural, manufacturing, mining and energy sectors.

While safety is paramount for everyone in our industry, pilotage – where a government-mandated pilot boards a ship to help navigate in designated areas — must be delivered with efficiency and competitiveness in mind.

12

Out-of-control costs Managed by federal Crown corporations, pilotage is a significant cost to users.

Pilotage costs have a long history of increasing at rates that far exceed the rate of inflation. Just in the past five years, fees, salaries and benefits paid to licensed pilots have increased 3.4 times more than CPI. For example, on the St. Lawrence River, the hourly cost of pilotage exceeds the cost of the entire crew of a vessel, or more than double the cost of a vessel’s captain. Out-ofcontrol costs, of this kind, don’t just hit our members’ bottom line – they drive business away altogether to other less environmentally-friendly transportation modes or worse, to other geographic regions – meaning the potential loss of revenues and jobs for Canadians.

Let’s be innovative 1. Objective: Safety and Efficiency

transportation system, meet users’ needs in a cost-effective manner, take advantage of modern technology and sound risk management practices, and is accountable and transparent. Such an objective would guide all regulatory and policy development, governance and service delivery, against which decisions, outcomes and performance can be measured.

2. One National Pilotage Authority One potential option is the creation of a not-for-profit corporation i.e., a National Pilotage Authority. With just over 400 pilots across Canada, pilotage is currently managed by four separate Crown Corporations; the Atlantic, Laurentian, Great Lakes and Pacific Pilotage Authorities. Each has their own set of regulations, operational procedures and management practices, which is inefficient, overly complex and unnecessary.

The Authority could be formed by consolidating and streamlining the management and administrative functions of the four regional authorities into one thus requiring fewer resources.

The four regional authorities could then become regional operation centres, scaled down versions of the existing authorities to focus solely on service delivery.

This would lead to increased efficiencies, cost reductions, a leaner structure and, most importantly, be an enabler for improvements into the future.

This national approach could still allow for any unique requirements in a particular region, where justified.

Recognizing the existing regional disparities in fees, restructuring must not result in an increase in fees in any region.

ON THE ST. LAWRENCE RIVER, THE HOURLY COST OF PILOTAGE EXCEEDS THE COST OF THE ENTIRE CREW OF A VESSEL, OR MORE THAN DOUBLE THE COST OF A VESSEL’S CAPTAIN.

3. Independent Regulatory Authority Pilotage regulatory powers should be separated from the delivery of pilotage services to avoid any conflicts that could arise when both are provided by the same organization. Regulatory powers could be taken on by the Government of Canada, i.e., Transport Canada with added resources to ensure the pilotage regulatory regime is effectively managed.

4. Reform Domestic Fleet Pilotage Certification Qualified masters and mates on Canadian domestic ships who hold pilotage certificates pilot their own vessels while in the Great Lakes and Seaway regions. Research indicates they have an exceptional safety record that is equivalent, if not better, to that of their government-mandated pilot counterparts. This is a reflection of the shipowners’ comprehensive and robust training program that uses onboard training and evaluation, testing the officer’s piloting skills and local knowledge. For these reasons, our domestic shipowners expect that pilotage authorities should be encouraging and expanding this highly successful program to other pilotage regions and should allow greater flexibility in the movement of pilotage certificate holders within a company’s fleet.

There have been several reviews and attempts to adjust the existing system with minor changes since the Pilotage Act came into force in 1972.

After 45 years, now is the time to try something bold, innovative and substantive to ensure safe navigation while improving the efficiency and competitiveness of Canada’s commercial marine transportation system well into the future. n

The Pilotage Act needs a clearly stated objective that speaks to a national pilotage system that will; promote a safe, efficient and competitive marine

13

News Updates

GO EAST: RISING GRAIN OPPORTUNITIES BENEFIT GREAT LAKES-SEAWAY PORTS

BY JULIE GEDEON

T

he Great Lakes and St. Lawrence ports enjoyed another strong year in handling Canadian crops, with 2018 promising to be even busier.

“Canadian grain and pulses through the St. Lawrence Seaway totalled 8.306 million metric tons in 2017, another strong year,” confirms Bruce Burrows, the president of the Chamber of Marine Commerce. “Many people don’t realize that a quarter of Canadian grain exports move through Eastern Canada, including the Great Lakes and St. Lawrence waterway. Western Prairie and Central Canadian farmers rely on this important transportation corridor for exports to Mexico, Europe, the Middle East, Africa and even Asia.”

A large 2017 wheat harvest is expected to carry over into this year’s Great Lakes-St. Lawrence shipments. The higher quality of wheat is anticipated to be in demand with the International Grains Council forecasting global wheat production to decline in 2018-19 for the first time in six years.

“Our Great Lakes-Seaway ports are ready to handle larger volumes, as they certainly proved this past year,” Burrows says.

The Port of Hamilton enjoyed a record-breaking year in 2017, managing the most agricultural products in its history. Nearly 2.3 million metric tons of agricultural commodities that included wheat, corn, soybeans as well as canola, sugar, potash and other fertilizers were handled. Almost one-quarter of the port’s cargoes are now agricultural compared to 12.5 per cent eight years ago.

Ian Hamilton, the Hamilton Port Authority’s president and CEO, credits bringing together the right elements to attract 14 tenants within the agri-food sector. “Our port has invested upwards of $200 million to improve port roads, rail lines, dock walls and other infrastructure over the last decade to ensure smooth transitioning for these clients.”

Agri-food giant investments Various investments by agri-food giants Richardson International, Parrish & Heimbecker, and G3 Canada have tripled the port’s capacity to handle wheat and other agri-food products.

P&H Milling Group additionally invested $40 million (with another $5 million in provincial funding) to build Ontario’s first new flour mill in 75 years.

Meanwhile, the Port of Montreal handled approximately 4.5 million metric tons of grain in 2017. While that is approximately 10.5 per cent less than in 2016, “that’s still a great year,” says Tony Boemi, the Montreal Port Authority’s vice president of growth and development. “Before Viterra took over the port’s grain terminal in 2011, the port was only doing about 1.8 million metric tons.”

Boemi applauds the expertise and initiative of Viterra and another recently acquired agri-food tenant, CanEst Transit, for significantly increasing the port’s crop handling. “They’re constantly seeking out new opportunities, as opposed to the port merely facilitating what happened to come its way in the past, especially during the wheat board days,” he explains. “For instance, Viterra has established year-round rail movement of grain to the port as part of our winter rail program.”

The port has been facilitating better connectivity. “This year and next, we’re investing another $40 million in our port rail network,” Boemi says. “The additional track within our boundaries will improve fluidity throughout the port area.”

As part of the 40-year lease it signed with CanEst Transit in October 2014,

the port allocated the $4 million dollars slated for a derelict’s silo’s demolition to upgrade the building along with road and rail access.

CanEst reached the 100,000 metric tons it had initially planned to handle annually at its $20-million facility within a year. “Frankly, we underestimated demand,” says Carl Boivin, CanEst’s general manager. “Our strategic partnerships, particularly with AGT Foods, led to us basically doubling our volume in each of our three years in operation.”

As a result, CanEst has invested another $6.5 million (which included $1.5 million obtained through Quebec’s Maritime Strategy funding) to increase capacity by 200,000 metric tons to more than 500,000 metric tons. “The improvements additionally give us more flexibility in handling different crops simultaneously,” Boivin says. “It will also provide faster unloading with the ability to handle up to 135 railcars at a time as of this summer.”

CanEst anticipates reaching full capacity within two years as a result of AGT Foods becoming its equity partner last July. AGT Foods singled out the 60,000 metric tons of storage, the port’s unique ability to receive 100unit trains to transload into containers, as well as the location at tidewater to facilitate overseas shipments among the reasons for investing in the longterm equity stake.

Boemi noted that the port is becoming an increasingly attractive choice because it is conveniently located en route to and from several East Coast stops,

rarely experiences traffic congestion, and is an ideal transshipment location.

“A lot of grain, particularly high-quality durum, is being transshipped to the Mediterranean, France and Northern Europe, from our port.”

Thunder Bay grain up on average 34% The port of Thunder Bay, the largest export port on the Great Lakes-Seaway, has also seen significant grain tonnage increases in recent years. Prior to the elimination of the Canadian Wheat Board monopoly, average annual grain shipments totaled 5.8 million metric tons. Post wheat board, the four-year average for annual volumes to the port is 7.8 million metric tons, 34 per cent higher.

“Tremendous capacity and proven efficiencies at the port’s elevators have enabled the capture of greater market share,” says port authority chief executive officer Tim Heney, “following regulatory change that brought free movement to the Canadian grain transportation flow.”

“The grain is up and that level is going to stay. I think there’s a lot of potential for more depending on the size of the harvests, which tend to be growing larger every year,” Heney says. “We can easily handle larger capacities of grain and pulses without any congestion issues.”

Grain shipments at Thunder Bay totaled 7.3 million metric tons in 2017.

The port anticipates a fast upswing

when it reopens in March 2018 with larger-than-usual grain stocks in port in late 2017.

Carbon tax could raise Seaway profile Heney acknowledges that agri-food companies currently rely on westbound rail to move the vast bulk of Prairie crops but anticipates several factors will lead to them look more at Thunder Bay, including the carbon tax.

“Nothing comes even close to ships in terms of the small amount of fuel used to transport goods per tonne/mile,” Heney says. “The carbon tax program recognizes this, which might help to raise the Seaway’s profile.”

A diversification of crops that includes lentils destined for Algeria and chickpeas and other pulses for the Middle East, India and North Africa likewise favours Thunder Bay. “It makes more sense to transport these smaller shipments through the Seaway than to send them out West by rail to load onto Panamax vessels,” Heney explains.

Heney is likewise hopeful that Canada’s free trade agreement with Europe - in effect since last fall - will result in more shipments heading along Eastern routes. n

Photo: Thunder Bay Port Authority

News Updates

WESTERN PRAIRIE AND CENTRAL CANADIAN FARMERS RELY ON THIS IMPORTANT TRANSPORTATION CORRIDOR FOR EXPORTS TO MEXICO, EUROPE, THE MIDDLE EAST, AFRICA AND EVEN ASIA.

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News Updates

GO EAST: RISING GRAIN OPPORTUNITIES BENEFIT GREAT LAKES-SEAWAY PORTS

BY JULIE GEDEON

T

he Great Lakes and St. Lawrence ports enjoyed another strong year in handling Canadian crops, with 2018 promising to be even busier.

“Canadian grain and pulses through the St. Lawrence Seaway totalled 8.306 million metric tons in 2017, another strong year,” confirms Bruce Burrows, the president of the Chamber of Marine Commerce. “Many people don’t realize that a quarter of Canadian grain exports move through Eastern Canada, including the Great Lakes and St. Lawrence waterway. Western Prairie and Central Canadian farmers rely on this important transportation corridor for exports to Mexico, Europe, the Middle East, Africa and even Asia.”

A large 2017 wheat harvest is expected to carry over into this year’s Great Lakes-St. Lawrence shipments. The higher quality of wheat is anticipated to be in demand with the International Grains Council forecasting global wheat production to decline in 2018-19 for the first time in six years.

“Our Great Lakes-Seaway ports are ready to handle larger volumes, as they certainly proved this past year,” Burrows says.

The Port of Hamilton enjoyed a record-breaking year in 2017, managing the most agricultural products in its history. Nearly 2.3 million metric tons of agricultural commodities that included wheat, corn, soybeans as well as canola, sugar, potash and other fertilizers were handled. Almost one-quarter of the port’s cargoes are now agricultural compared to 12.5 per cent eight years ago.

Ian Hamilton, the Hamilton Port Authority’s president and CEO, credits bringing together the right elements to attract 14 tenants within the agri-food sector. “Our port has invested upwards of $200 million to improve port roads, rail lines, dock walls and other infrastructure over the last decade to ensure smooth transitioning for these clients.”

Agri-food giant investments Various investments by agri-food giants Richardson International, Parrish & Heimbecker, and G3 Canada have tripled the port’s capacity to handle wheat and other agri-food products.

P&H Milling Group additionally invested $40 million (with another $5 million in provincial funding) to build Ontario’s first new flour mill in 75 years.

Meanwhile, the Port of Montreal handled approximately 4.5 million metric tons of grain in 2017. While that is approximately 10.5 per cent less than in 2016, “that’s still a great year,” says Tony Boemi, the Montreal Port Authority’s vice president of growth and development. “Before Viterra took over the port’s grain terminal in 2011, the port was only doing about 1.8 million metric tons.”

Boemi applauds the expertise and initiative of Viterra and another recently acquired agri-food tenant, CanEst Transit, for significantly increasing the port’s crop handling. “They’re constantly seeking out new opportunities, as opposed to the port merely facilitating what happened to come its way in the past, especially during the wheat board days,” he explains. “For instance, Viterra has established year-round rail movement of grain to the port as part of our winter rail program.”

The port has been facilitating better connectivity. “This year and next, we’re investing another $40 million in our port rail network,” Boemi says. “The additional track within our boundaries will improve fluidity throughout the port area.”

As part of the 40-year lease it signed with CanEst Transit in October 2014,

the port allocated the $4 million dollars slated for a derelict’s silo’s demolition to upgrade the building along with road and rail access.

CanEst reached the 100,000 metric tons it had initially planned to handle annually at its $20-million facility within a year. “Frankly, we underestimated demand,” says Carl Boivin, CanEst’s general manager. “Our strategic partnerships, particularly with AGT Foods, led to us basically doubling our volume in each of our three years in operation.”

As a result, CanEst has invested another $6.5 million (which included $1.5 million obtained through Quebec’s Maritime Strategy funding) to increase capacity by 200,000 metric tons to more than 500,000 metric tons. “The improvements additionally give us more flexibility in handling different crops simultaneously,” Boivin says. “It will also provide faster unloading with the ability to handle up to 135 railcars at a time as of this summer.”

CanEst anticipates reaching full capacity within two years as a result of AGT Foods becoming its equity partner last July. AGT Foods singled out the 60,000 metric tons of storage, the port’s unique ability to receive 100unit trains to transload into containers, as well as the location at tidewater to facilitate overseas shipments among the reasons for investing in the longterm equity stake.

Boemi noted that the port is becoming an increasingly attractive choice because it is conveniently located en route to and from several East Coast stops,

rarely experiences traffic congestion, and is an ideal transshipment location.

“A lot of grain, particularly high-quality durum, is being transshipped to the Mediterranean, France and Northern Europe, from our port.”

Thunder Bay grain up on average 34% The port of Thunder Bay, the largest export port on the Great Lakes-Seaway, has also seen significant grain tonnage increases in recent years. Prior to the elimination of the Canadian Wheat Board monopoly, average annual grain shipments totaled 5.8 million metric tons. Post wheat board, the four-year average for annual volumes to the port is 7.8 million metric tons, 34 per cent higher.

“Tremendous capacity and proven efficiencies at the port’s elevators have enabled the capture of greater market share,” says port authority chief executive officer Tim Heney, “following regulatory change that brought free movement to the Canadian grain transportation flow.”

“The grain is up and that level is going to stay. I think there’s a lot of potential for more depending on the size of the harvests, which tend to be growing larger every year,” Heney says. “We can easily handle larger capacities of grain and pulses without any congestion issues.”

Grain shipments at Thunder Bay totaled 7.3 million metric tons in 2017.

The port anticipates a fast upswing

when it reopens in March 2018 with larger-than-usual grain stocks in port in late 2017.

Carbon tax could raise Seaway profile Heney acknowledges that agri-food companies currently rely on westbound rail to move the vast bulk of Prairie crops but anticipates several factors will lead to them look more at Thunder Bay, including the carbon tax.

“Nothing comes even close to ships in terms of the small amount of fuel used to transport goods per tonne/mile,” Heney says. “The carbon tax program recognizes this, which might help to raise the Seaway’s profile.”

A diversification of crops that includes lentils destined for Algeria and chickpeas and other pulses for the Middle East, India and North Africa likewise favours Thunder Bay. “It makes more sense to transport these smaller shipments through the Seaway than to send them out West by rail to load onto Panamax vessels,” Heney explains.

Heney is likewise hopeful that Canada’s free trade agreement with Europe - in effect since last fall - will result in more shipments heading along Eastern routes. n

Photo: Thunder Bay Port Authority

News Updates

WESTERN PRAIRIE AND CENTRAL CANADIAN FARMERS RELY ON THIS IMPORTANT TRANSPORTATION CORRIDOR FOR EXPORTS TO MEXICO, EUROPE, THE MIDDLE EAST, AFRICA AND EVEN ASIA.

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News Updates 16

News Updates 17

FLEET RENEWAL BOLSTERS GRAIN TRANSPORT COMPETITIVENESS

BY JULIE GEDEON

S

hipping companies operating within the Great Lakes-St. Lawrence River basin have embarked on a new era in grain transportation with extensive fleet renewal. Their new-builds deliver improved efficiencies, economies and environmental performance.

Canada Steamship Lines (CSL) has renewed its commitment with six new Trillium Class vessels – four self-unloaders and two bulk carriers – now operating in the Great Lakes and St. Lawrence.

“We worked closely with our customer base and Great Lakes-Seaway partners to identify how we could maximize the performance of the Trillium Class within the constraints of the system’s locks and draught,” says Bill Bisset, CSL’s chief commercial officer.

Algoma Central Corporation has invested upwards of $500 million in

its new Equinox fleet over the past five years, adding to a fleet renewal program that began nine years ago.

The new-builds include four gearless bulkers, four self-unloaders, and one forebody. Five other vessels are ordered.

“We must remain vigilant to every opportunity to be as efficient as possible within a highly competitive transportation environment,” says Gregg Ruhl, Algoma’s chief operating officer. “A generational renewal of our fleet is almost necessary to compete with the rail and trucking industries.”

The Algoma Mariner’s delivery in May of 2011 marked the first new selfunloading laker to be introduced into the Great Lakes-St. Lawrence Seaway corridor since 1985. The freighter was the first of many new lake vessels ordered after Ottawa removed a 25per-cent import duty in 2010 on foreign-built ships.

In reassessing every aspect of a vessel’s design, materials, construction, technologies and operations, both companies achieved significant improvements. The new vessel classes improve fuel efficiencies by various means by 30 per cent or more. Each new vessel can transport approximately 10 per cent more cargo on less fuel.

“Being able to carry larger amounts of grain with fewer shipments gives us greater flexibility in serving our customers,” Bisset says.

International Maritime Organization’s Tier II compliant engines are reducing direct fuel consumption by 15 to 25 per cent. The result is a smaller environmental footprint that’s further being reduced with air exhaust technologies to capture/minimize emissions.

Photo: Thunder Bay Port Authority

Optimized hull designs are among the ways the companies have maximized cargo loads and lift. Glass reinforced epoxy was employed for ballast piping aboard the Trillium bulk carriers instead of heavier steel.

Grain movement is better facilitated by the new self-unloaders whose remote-control arm permits operations at various types of port terminals and slightly offshore. “It’s able to do this at significantly faster speeds than a typical bulk carrier, making transshipments more efficient,” Bisset adds.

Feeder gates and an enclosed boom on self-unloaders reduce dust and noise, while the variable speed drive on the conveyer systems adjusts to a terminal’s operational capacities.

Other environmental innovations minimize and contain oily water and waste water for land-based treatment and disposal. For example, the Trillium class features oily water separators, controlled ingress and air purifiers that have cut oily water by more than half.

This new era is characterized by continual improvement. “Our Equinox ships are all equipped with closedloop exhaust gas cleaning systems to capture sulphur oxide emissions and particulate matter, and we’re looking at retrofitting our existing self-unloaders with this same type of system,” Ruhl says by way of example.

CSL is taking advantage of emerging technologies, especially as the price of sensors lowers, to help crews to monitor every aspect of a vessel’s performance while in transit or loading/ unloading. “This monitoring is helping us to maximize efficiencies as well as track cargo movements in real time so that our customers know exactly where their shipments are and when to expect them,” Bisset says. Algoma has also improved tracking capabilities as part of their energy management program.

“We’ve installed fuel and engine condition monitoring equipment and systems aboard our new and existing ships to more accurately monitor efficiencies,” Ruhl states. n

“THE RESULT IS A SMALLER ENVIRONMENTAL FOOTPRINT THAT’S FURTHER BEING REDUCED WITH AIR EXHAUST TECHNOLOGIES TO CAPTURE/MINIMIZE EMISSIONS.”

16 16

17 17

News Updates 16

News Updates 17

FLEET RENEWAL BOLSTERS GRAIN TRANSPORT COMPETITIVENESS

BY JULIE GEDEON

S

hipping companies operating within the Great Lakes-St. Lawrence River basin have embarked on a new era in grain transportation with extensive fleet renewal. Their new-builds deliver improved efficiencies, economies and environmental performance.

Canada Steamship Lines (CSL) has renewed its commitment with six new Trillium Class vessels – four self-unloaders and two bulk carriers – now operating in the Great Lakes and St. Lawrence.

“We worked closely with our customer base and Great Lakes-Seaway partners to identify how we could maximize the performance of the Trillium Class within the constraints of the system’s locks and draught,” says Bill Bisset, CSL’s chief commercial officer.

Algoma Central Corporation has invested upwards of $500 million in

its new Equinox fleet over the past five years, adding to a fleet renewal program that began nine years ago.

The new-builds include four gearless bulkers, four self-unloaders, and one forebody. Five other vessels are ordered.

“We must remain vigilant to every opportunity to be as efficient as possible within a highly competitive transportation environment,” says Gregg Ruhl, Algoma’s chief operating officer. “A generational renewal of our fleet is almost necessary to compete with the rail and trucking industries.”

The Algoma Mariner’s delivery in May of 2011 marked the first new selfunloading laker to be introduced into the Great Lakes-St. Lawrence Seaway corridor since 1985. The freighter was the first of many new lake vessels ordered after Ottawa removed a 25per-cent import duty in 2010 on foreign-built ships.

In reassessing every aspect of a vessel’s design, materials, construction, technologies and operations, both companies achieved significant improvements. The new vessel classes improve fuel efficiencies by various means by 30 per cent or more. Each new vessel can transport approximately 10 per cent more cargo on less fuel.

“Being able to carry larger amounts of grain with fewer shipments gives us greater flexibility in serving our customers,” Bisset says.

International Maritime Organization’s Tier II compliant engines are reducing direct fuel consumption by 15 to 25 per cent. The result is a smaller environmental footprint that’s further being reduced with air exhaust technologies to capture/minimize emissions.

Photo: Thunder Bay Port Authority

Optimized hull designs are among the ways the companies have maximized cargo loads and lift. Glass reinforced epoxy was employed for ballast piping aboard the Trillium bulk carriers instead of heavier steel.

Grain movement is better facilitated by the new self-unloaders whose remote-control arm permits operations at various types of port terminals and slightly offshore. “It’s able to do this at significantly faster speeds than a typical bulk carrier, making transshipments more efficient,” Bisset adds.

Feeder gates and an enclosed boom on self-unloaders reduce dust and noise, while the variable speed drive on the conveyer systems adjusts to a terminal’s operational capacities.

Other environmental innovations minimize and contain oily water and waste water for land-based treatment and disposal. For example, the Trillium class features oily water separators, controlled ingress and air purifiers that have cut oily water by more than half.

This new era is characterized by continual improvement. “Our Equinox ships are all equipped with closedloop exhaust gas cleaning systems to capture sulphur oxide emissions and particulate matter, and we’re looking at retrofitting our existing self-unloaders with this same type of system,” Ruhl says by way of example.

CSL is taking advantage of emerging technologies, especially as the price of sensors lowers, to help crews to monitor every aspect of a vessel’s performance while in transit or loading/ unloading. “This monitoring is helping us to maximize efficiencies as well as track cargo movements in real time so that our customers know exactly where their shipments are and when to expect them,” Bisset says. Algoma has also improved tracking capabilities as part of their energy management program.

“We’ve installed fuel and engine condition monitoring equipment and systems aboard our new and existing ships to more accurately monitor efficiencies,” Ruhl states. n

“THE RESULT IS A SMALLER ENVIRONMENTAL FOOTPRINT THAT’S FURTHER BEING REDUCED WITH AIR EXHAUST TECHNOLOGIES TO CAPTURE/MINIMIZE EMISSIONS.”

16 16

17 17

Environmental Strides

Environmental Strides

Marshalling industry, government, academia

COLLABORATION TO PROTECT RIGHT WHALES IN GULF OF ST. LAWRENCE

Photo: Louis Rhéaume

BY JULIE GEDEON

responding to an emergency,” he says.

“The majority of IMO vessels complied.”

The CMC has been working with les Armateurs du Saint Laurent, Croisières du St-Laurent, the Cruise Lines International Association, and Shipping Federation of Canada to establish a collaborative approach with scientists if/when right whales return to the Gulf this year.

“We are working with other industry associations and scientists to propose specific shipping lanes that would avoid contact with whales and allow ships to move without speed restrictions,” Burrows says. “To do this, we need more monitoring on where the whales are and how they move around.”

Speed restrictions in 2017 led to delays of up to seven hours depending on the voyage and more than $1 million in lost time and operating expenses for CMC ship operator members. It also caused several cruise lines to alter, shorten or altogether cancel their itineraries.

“We’re totally on board with the need to protect the whales,” says Tony Boemi, the president of Croisières du St-Laurent. “But with cruise lines planning their itinerary two years in advance, we really need to know as soon as possible what speed restrictions may apply and where.”

don’t yet completely understand the reasons, but they likely have to do with environmental changes that have altered their food distribution,” explains Mark Baumgartner, a biologist at the Woods Hole Oceanographic Institution (WHOI).

Fewer right whales are being detected in the Gulf of Maine where the waters are warming faster than 99 per cent of the world’s oceans for reasons that aren’t yet fully understood either.

Right whales may be moving farther off shore and/or heading north for cooler Canadian waters during the summer.

“WE ARE WORKING WITH OTHER INDUSTRY ASSOCIATIONS AND SCIENTISTS TO PROPOSE SPECIFIC SHIPPING LANES THAT WOULD AVOID CONTACT WITH WHALES” BRUCE BURROWS, PRESIDENT OF THE CHAMBER OF MARINE COMMERCE

“A northward shift makes sense in THE MANY CHALLENGES OF terms of the climate change predictions TRACKING WHALES

A

concerted effort has been gathering momentum to find the best ways to protect highly endangered North Atlantic right whales in the Gulf of St. Lawrence without unduly hindering maritime transportation.

“We’re working together to develop solutions based on strong science that both protect the North Atlantic right whales and minimize the economic impacts that slowing marine traffic causes to all Canadians,” says Bruce Burrows, the president of the Chamber of Marine Commerce (CMC).

A group consisting of whale researchers, government officials and maritime industry representatives are looking at strategies that offer the world’s estimated 450 remaining North Atlantic right whales better safeguards without unnecessarily or unexpectedly slowing vessels.

18

Collaborative efforts followed the mandatory slowdown issued last Aug. 11 in response to 17 right whales being found dead – 12 within Canadian waters and five in U.S. territory. Necropsies on seven indicated that four had suffered blunt force trauma, while three appeared to have died from being entangled in fishing gear.

Transport Canada required all vessels 20 metres or longer to restrict their speed to 10 knots (18.5 kilometres/ hour) in the western area of the gulf encompassing Quebec’s North Shore to just north of Prince Edward Island.

Regular speeds range from 12 and 18 knots (33.3 km/hr.). Smaller vessels were asked to voluntarily comply.

“A slowdown does not reduce the risk of a vessel hitting a whale,” explains Kimberley Davies, a Liber Ero postdoctoral fellow and adjunct scholar at Dalhousie University’s Department of Oceanography.

“It reduces the chances of a ship strike being fatal to less than 50 per cent.”

Speed violations were reported for 542 of approximately 4,710 trips between Aug. 11 and Jan. 11, 2017, but 450 cases have been closed due to insufficient evidence. Among the 14 fined $6,000 for speeding, 13 ranged in speed from 10.5 to 13.5 knots.

The slight excesses in speed may be attributable to monitoring/calibration discrepancies in some cases, while it might have taken longer for some big ships to slow down in response to a change in sailing conditions.

Christopher Taggart, a professor at Dalhousie University’s Department of Oceanography, independently tracked vessel speeds during the first three weeks of the slowdown. “Out of 277 vessels, only 12 exceeded the limit and six of those were Coast Guard or Search and Rescue vessels that might have been

One of the challenges is that tracking whales is difficult. “They’re looking for patchy sources of zooplankton that ocean currents are constantly moving,” Davies explains. “The ideal monitoring program has aerial surveillance, which I understand Transport Canada will conduct again this year, along with visual monitoring from vessels that also helps to determine whale health, and acoustic monitoring.”

Despite technological advances, it’s impossible to locate, let alone track, every whale. “We need to determine where most whales are likely to be and coordinate our efforts there,” Taggart says. “The only way to do that effectively is by gathering additional data, which takes money and time, especially in the Gulf of St. Lawrence because it’s huge.”

Another challenge stems from whales appearing to be more on the move over the last eight years or so. “We

for their food sources, but we don’t yet know for sure why more right whales may be visiting the Gulf of St. Lawrence,” Baumgartner says.

Research on the right whales only began in earnest in the 1980s with the existing data collated for the U.S. East Coast and Scotian Shelf in the early 1990s. Baumgartner developed a Robots4Whales algorithm in the mid2000s that was first used with a water glider to identify and register baleen calls in 2012.

GLIDER SURVEYING CAN PLAY KEY ROLE A person could walk faster, but a glider covers significant territory by constantly traveling for the four months before its battery power must be restored. “You can get a good sense of the seasonal occurrence and distribution of whales with this technology at lower cost than having observation vessels,” Baumgartner

notes. “Gliders further augment flight observations that aren’t possible at night, during fog, or if waves are too high.”

Dalhousie’s Oceanography Department had one glider in operation within the slowdown zone this past year and is working on adding two others.

“Investments in this kind of technology will really help us to understand where right whales transit and where they remain – and congregate – for longer periods of time,” Taggart says.

The additional gliders will help to monitor the area just off the continental shelf closer to the existing shipping lanes. “We know the whales prefer shallower continental shelf zones but there hasn’t been much research to determine if the deeper channel is also their feeding habitat,” Davies says.

Glider surveying could help to determine whether relocating the shipping lanes would significantly reduce the risk of collisions. “We know that whales cross the Laurentian Channel because the same animals have been photographed north and south of it, but we’re hoping to determine whether it’s a crossing zone or feeding area.”

Substantial data already indicates the whales make their home in the southern portion of the Gulf of St. Lawrence.

“We have the data to justify mitigation measures in that area,” Davies confirms.

Determining the whereabouts and evolving habits of others requires continual effort with every technology having its drawbacks. “Acoustic monitoring, for example, indicates whale presence but not the number of mammals,” Davies explains.

“Even if we had sensors everywhere, whales don’t make sounds constantly,” Baumgartner adds.

Satellite tagging all the whales isn’t feasible either. “Tags stay intact for a few weeks at most,” Baumgartner explains.

“And poking a hole into these animals can be stressful or cause infections.”

Taggart is optimistic about the efforts by the various stakeholders to find solutions. “I’m hoping that we can reduce the risk to whales without unduly compromising the shipping industry,” he says. “People are working really hard to figure this out. n

19

Environmental Strides

Environmental Strides

Marshalling industry, government, academia

COLLABORATION TO PROTECT RIGHT WHALES IN GULF OF ST. LAWRENCE

Photo: Louis Rhéaume

BY JULIE GEDEON

responding to an emergency,” he says.

“The majority of IMO vessels complied.”

The CMC has been working with les Armateurs du Saint Laurent, Croisières du St-Laurent, the Cruise Lines International Association, and Shipping Federation of Canada to establish a collaborative approach with scientists if/when right whales return to the Gulf this year.

“We are working with other industry associations and scientists to propose specific shipping lanes that would avoid contact with whales and allow ships to move without speed restrictions,” Burrows says. “To do this, we need more monitoring on where the whales are and how they move around.”

Speed restrictions in 2017 led to delays of up to seven hours depending on the voyage and more than $1 million in lost time and operating expenses for CMC ship operator members. It also caused several cruise lines to alter, shorten or altogether cancel their itineraries.

“We’re totally on board with the need to protect the whales,” says Tony Boemi, the president of Croisières du St-Laurent. “But with cruise lines planning their itinerary two years in advance, we really need to know as soon as possible what speed restrictions may apply and where.”

don’t yet completely understand the reasons, but they likely have to do with environmental changes that have altered their food distribution,” explains Mark Baumgartner, a biologist at the Woods Hole Oceanographic Institution (WHOI).

Fewer right whales are being detected in the Gulf of Maine where the waters are warming faster than 99 per cent of the world’s oceans for reasons that aren’t yet fully understood either.

Right whales may be moving farther off shore and/or heading north for cooler Canadian waters during the summer.

“WE ARE WORKING WITH OTHER INDUSTRY ASSOCIATIONS AND SCIENTISTS TO PROPOSE SPECIFIC SHIPPING LANES THAT WOULD AVOID CONTACT WITH WHALES” BRUCE BURROWS, PRESIDENT OF THE CHAMBER OF MARINE COMMERCE

“A northward shift makes sense in THE MANY CHALLENGES OF terms of the climate change predictions TRACKING WHALES

A

concerted effort has been gathering momentum to find the best ways to protect highly endangered North Atlantic right whales in the Gulf of St. Lawrence without unduly hindering maritime transportation.

“We’re working together to develop solutions based on strong science that both protect the North Atlantic right whales and minimize the economic impacts that slowing marine traffic causes to all Canadians,” says Bruce Burrows, the president of the Chamber of Marine Commerce (CMC).

A group consisting of whale researchers, government officials and maritime industry representatives are looking at strategies that offer the world’s estimated 450 remaining North Atlantic right whales better safeguards without unnecessarily or unexpectedly slowing vessels.

18

Collaborative efforts followed the mandatory slowdown issued last Aug. 11 in response to 17 right whales being found dead – 12 within Canadian waters and five in U.S. territory. Necropsies on seven indicated that four had suffered blunt force trauma, while three appeared to have died from being entangled in fishing gear.

Transport Canada required all vessels 20 metres or longer to restrict their speed to 10 knots (18.5 kilometres/ hour) in the western area of the gulf encompassing Quebec’s North Shore to just north of Prince Edward Island.

Regular speeds range from 12 and 18 knots (33.3 km/hr.). Smaller vessels were asked to voluntarily comply.

“A slowdown does not reduce the risk of a vessel hitting a whale,” explains Kimberley Davies, a Liber Ero postdoctoral fellow and adjunct scholar at Dalhousie University’s Department of Oceanography.

“It reduces the chances of a ship strike being fatal to less than 50 per cent.”

Speed violations were reported for 542 of approximately 4,710 trips between Aug. 11 and Jan. 11, 2017, but 450 cases have been closed due to insufficient evidence. Among the 14 fined $6,000 for speeding, 13 ranged in speed from 10.5 to 13.5 knots.

The slight excesses in speed may be attributable to monitoring/calibration discrepancies in some cases, while it might have taken longer for some big ships to slow down in response to a change in sailing conditions.

Christopher Taggart, a professor at Dalhousie University’s Department of Oceanography, independently tracked vessel speeds during the first three weeks of the slowdown. “Out of 277 vessels, only 12 exceeded the limit and six of those were Coast Guard or Search and Rescue vessels that might have been

One of the challenges is that tracking whales is difficult. “They’re looking for patchy sources of zooplankton that ocean currents are constantly moving,” Davies explains. “The ideal monitoring program has aerial surveillance, which I understand Transport Canada will conduct again this year, along with visual monitoring from vessels that also helps to determine whale health, and acoustic monitoring.”

Despite technological advances, it’s impossible to locate, let alone track, every whale. “We need to determine where most whales are likely to be and coordinate our efforts there,” Taggart says. “The only way to do that effectively is by gathering additional data, which takes money and time, especially in the Gulf of St. Lawrence because it’s huge.”

Another challenge stems from whales appearing to be more on the move over the last eight years or so. “We

for their food sources, but we don’t yet know for sure why more right whales may be visiting the Gulf of St. Lawrence,” Baumgartner says.

Research on the right whales only began in earnest in the 1980s with the existing data collated for the U.S. East Coast and Scotian Shelf in the early 1990s. Baumgartner developed a Robots4Whales algorithm in the mid2000s that was first used with a water glider to identify and register baleen calls in 2012.

GLIDER SURVEYING CAN PLAY KEY ROLE A person could walk faster, but a glider covers significant territory by constantly traveling for the four months before its battery power must be restored. “You can get a good sense of the seasonal occurrence and distribution of whales with this technology at lower cost than having observation vessels,” Baumgartner

notes. “Gliders further augment flight observations that aren’t possible at night, during fog, or if waves are too high.”

Dalhousie’s Oceanography Department had one glider in operation within the slowdown zone this past year and is working on adding two others.

“Investments in this kind of technology will really help us to understand where right whales transit and where they remain – and congregate – for longer periods of time,” Taggart says.

The additional gliders will help to monitor the area just off the continental shelf closer to the existing shipping lanes. “We know the whales prefer shallower continental shelf zones but there hasn’t been much research to determine if the deeper channel is also their feeding habitat,” Davies says.

Glider surveying could help to determine whether relocating the shipping lanes would significantly reduce the risk of collisions. “We know that whales cross the Laurentian Channel because the same animals have been photographed north and south of it, but we’re hoping to determine whether it’s a crossing zone or feeding area.”

Substantial data already indicates the whales make their home in the southern portion of the Gulf of St. Lawrence.

“We have the data to justify mitigation measures in that area,” Davies confirms.

Determining the whereabouts and evolving habits of others requires continual effort with every technology having its drawbacks. “Acoustic monitoring, for example, indicates whale presence but not the number of mammals,” Davies explains.

“Even if we had sensors everywhere, whales don’t make sounds constantly,” Baumgartner adds.

Satellite tagging all the whales isn’t feasible either. “Tags stay intact for a few weeks at most,” Baumgartner explains.

“And poking a hole into these animals can be stressful or cause infections.”

Taggart is optimistic about the efforts by the various stakeholders to find solutions. “I’m hoping that we can reduce the risk to whales without unduly compromising the shipping industry,” he says. “People are working really hard to figure this out. n

19

Environmental Strides

WHALE SPOTTERS

In February 2018, Algoma Central Corporation also signed an agreement with ROMM and training is underway.

Green Marine, an environmental certification program for the marine industry, has served as a liaison between the shipping industry and the scientific community from the outset. “We initiate the first contact and then aim to help different type of vessel operators – international, domestic, pilotage, ferry, tug and so forth – to know what’s required to adhere to ROMM’s observation program,” Nolet explains.

“To protect whales, we must first know them,” Nolet says. “That’s why it’s so important to raise the level of awareness by directly training crews to identify whales, especially given the current issues related to whales that include underwater noise and the risk of ship strikes.”

Shipping companies have been helping scientists to gather whale data for the past few years to better understand and protect marine mammals.

BY JULIE GEDEON

C

rews aboard 14 of Groupe Desgagnés’ 18 vessels continued to report cetacean sightings to the Rivière-duLoup’s Réseau d’observation des mammifères marins (ROMM) data collection program for a third year in 2017. The initiative is part of an ongoing collaboration that began with one vessel as a pilot project in 1998.

Operating in waters frequented by whales, Groupe Desgagnés has significantly contributed to the existing database with its crews making more than 1,000 observations to date, as well as sighting rarely observed species that include black, killer and northern bottlenose whales.

Desgagnés’ annual count will be maintained or slightly lower for 2017.

“There was less time for our crews to look for whales and to record sightings,” Daniel Côté, the company’s environmental advisor, explains. “The efforts necessary to maintain vessel speed at under 10 knots to comply with last year’s mandatory slowdown in the Gulf of St. Lawrence occupied more of our crews nearly all the time but, of course, they will continue to try to do their best.”

Other companies are increasing their efforts in relevant waters. CSL signed another three-year agreement with ROMM in March 2017. It requires the company

to provide more of its crews in vessels transiting the Gulf of St. Lawrence and the Atlantic coast with the training and resources to identify marine mammals and to convey their whale sightings data to ROMM. The agreement renews a previous three-year initial commitment.

“Protecting right whales is a top management priority,” says Rhiannah Carver, CSL’s senior management, environment. “CSL is looking to new and innovative technologies that can help us avoid harmful encounters.”Training began aboard the CSL Salarium“ with the assistance of Véronique Nolet, a Green Marine program manager.

All the information collected by ROMM is integrated into an online map that makes the observations of whales and other species available to everyone. (https://ogsl.ca/bio/?lg=en) n

ENVIRONMENTAL CERTIFICATION PROGRAM FOR THE NORTH AMERICAN MARINE INDUSTRY

PROGRESS SINCE INCEPTION 2007* 2018** PARTICIPANTS PARTNERS SUPPORTERS ASSOCIATIONS Total

34 23 19 7 83

118 77 66 23 284

*October 2007 **February 2018

2007

2018

CANADA

USA

Eastern Ontario’s Premier Port Tel.: 613.925.4228 www.portofjohnstown.com 20

generalinfo@portofjohnstown.com @portofjohnstown.com

OVER A DECADE OF ADVANCING ENVIRONMENTAL EXCELLENCE green-marine.org

21

Environmental Strides

WHALE SPOTTERS

In February 2018, Algoma Central Corporation also signed an agreement with ROMM and training is underway.

Green Marine, an environmental certification program for the marine industry, has served as a liaison between the shipping industry and the scientific community from the outset. “We initiate the first contact and then aim to help different type of vessel operators – international, domestic, pilotage, ferry, tug and so forth – to know what’s required to adhere to ROMM’s observation program,” Nolet explains.

“To protect whales, we must first know them,” Nolet says. “That’s why it’s so important to raise the level of awareness by directly training crews to identify whales, especially given the current issues related to whales that include underwater noise and the risk of ship strikes.”

Shipping companies have been helping scientists to gather whale data for the past few years to better understand and protect marine mammals.

BY JULIE GEDEON

C

rews aboard 14 of Groupe Desgagnés’ 18 vessels continued to report cetacean sightings to the Rivière-duLoup’s Réseau d’observation des mammifères marins (ROMM) data collection program for a third year in 2017. The initiative is part of an ongoing collaboration that began with one vessel as a pilot project in 1998.

Operating in waters frequented by whales, Groupe Desgagnés has significantly contributed to the existing database with its crews making more than 1,000 observations to date, as well as sighting rarely observed species that include black, killer and northern bottlenose whales.

Desgagnés’ annual count will be maintained or slightly lower for 2017.

“There was less time for our crews to look for whales and to record sightings,” Daniel Côté, the company’s environmental advisor, explains. “The efforts necessary to maintain vessel speed at under 10 knots to comply with last year’s mandatory slowdown in the Gulf of St. Lawrence occupied more of our crews nearly all the time but, of course, they will continue to try to do their best.”

Other companies are increasing their efforts in relevant waters. CSL signed another three-year agreement with ROMM in March 2017. It requires the company

to provide more of its crews in vessels transiting the Gulf of St. Lawrence and the Atlantic coast with the training and resources to identify marine mammals and to convey their whale sightings data to ROMM. The agreement renews a previous three-year initial commitment.

“Protecting right whales is a top management priority,” says Rhiannah Carver, CSL’s senior management, environment. “CSL is looking to new and innovative technologies that can help us avoid harmful encounters.”Training began aboard the CSL Salarium“ with the assistance of Véronique Nolet, a Green Marine program manager.

All the information collected by ROMM is integrated into an online map that makes the observations of whales and other species available to everyone. (https://ogsl.ca/bio/?lg=en) n

ENVIRONMENTAL CERTIFICATION PROGRAM FOR THE NORTH AMERICAN MARINE INDUSTRY

PROGRESS SINCE INCEPTION 2007* 2018** PARTICIPANTS PARTNERS SUPPORTERS ASSOCIATIONS Total

34 23 19 7 83

118 77 66 23 284

*October 2007 **February 2018

2007

2018

CANADA

USA

Eastern Ontario’s Premier Port Tel.: 613.925.4228 www.portofjohnstown.com 20

generalinfo@portofjohnstown.com @portofjohnstown.com

OVER A DECADE OF ADVANCING ENVIRONMENTAL EXCELLENCE green-marine.org

21

In Conversation

In Conversation

IN CONVERSATION WITH

OCEAN GROUP

From deploying some of the world’s highest-performance tugs to dredging in the Caribbean and building a patrol boat for France’s navy... In an exclusive interview, Gordon Bain, founder and chairman, describes how Quebec City-based Ocean Group has evolved from a small commercial diving enterprise into a Canadian innovator of international dimension.

BY LEO RYAN

Since 1972, you have transformed from a fledgling operation, AquaMarine, into Ocean Group — a major supplier of marine services across Canada. What are some examples of your services in marine transportation and their geographic scope?

Ocean celebrated its 45th anniversary in 2017. Thanks to its acquisitions, its strategic development and the diversification of its activities, the company is one of the major suppliers of marine integrated services in Canada and a leader of the Canadian maritime industry. We have three main sectors of activities: harbour towing; naval construction and repair; marine works (rental of barges, wharves and specialized marine equipment) and dredging.

What economic impact does your company have in Canada in terms of jobs and other contributions?

The company owns one of the most important fleets of marine equipment in Canada with over 570 pieces of equipment, and employs more than 850 people in 16 business locations positioned along the St. Lawrence River, on the Great Lakes, in New Brunswick and in Western Canada.

Ocean Industries is an employer involved with its local community by participating in local activities and by supporting important causes in its region through various donations and sponsorships.

22

Otherwise, we are very much involved in causes close to my heart, such as sick children. We organized an event during our 40th anniversary, during which we raised $200,000 for the purchase of specialized respiratory equipment for children at the Centre Hospitalier universitaire de Québec (CHUQ).

What has contributed the most to the company’s success over the past 45 years – a strong team, innovation, timing or a combination of factors?

Definitely, strong team! I love to be surrounded by good people. Ocean is a story of teamwork and it is because of the people around us that we have succeeded in making Ocean what it is today. I trust the people that I hire.

Jacques Tanguay, my associate, my friend, and now Ocean’s new President, also knows how to surround himself with efficient and competent people.

They are the heart of the company and represent its future.

What business and/or government policies do you feel are necessary to help Ocean Group grow over the next five to 10 years?

Quebec’s Maritime Strategy has put shipping and its importance back in the public debate. We are very pleased to see that both our elected and Quebec officials are emphasizing the marine environment and hope that

this will continue, or even increase, in the coming years.

We are very interested in the Government of Canada’s Fleet Renewal Strategy. Our shipbuilding and ship repair services are closely monitoring the upcoming bidding and we are targeting construction projects in the small and medium-sized category (under 1000 metric tons).

More specifically, Ocean has an important background with the construction, operation and maintenance of harbour tugs. Canada’s National Defense announced several years ago that it wants to build four large tugboats. We will rely on our experience and history to win this tender.

In the case of smaller shipyards, aid to shipbuilding would have the positive effect of maintaining expertise outside major shipyards. A ship repair tax credit or a similar measure would be appropriate.

Any more expansion on the radar screen? And can you give us an estimate of investments in fleet renewal in the past 10 years?

After 45 years, we have expanded more than ever and are continuing to grow. We now develop services, such as dredging, that can be deployed on an international level. Since 2013, we have obtained various dredging contracts in Mexico, Dominican Republic, Cuba and Jamaica. Ocean has become a leader in the Canadian maritime industry. We have developed a unique expertise that has allowed us to begin a major turning point in our development strategy. Our vision of the future: become a worldclass company and a trusted business partner for its clientele. Overall, Ocean has invested $320M since 2005. These investments demonstrate Ocean’s priority to offer state-of-the-art equipment and quality service to its customers.

Describe the great innovations offered by your Z-tugs and such tugs as the Ocean Tundra.

In December 2013, the shipyard Ocean Industries completed the construction of the most powerful tugboat ever built in Eastern Canada, the Ocean Tundra. The second in the TundRA series, was also completed in October 2016.

These 36-m tugboats are equipped with the most modern technologies and can operate in the most extreme conditions. The hulls of these tugs are reinforced and certified 1A Super FS for ice navigation. In addition, their engines develop 8,160 BHP of power, propelled by two Z-drive omnidirectional propellers and with a total bollard pull force of more than 100 TM. The Z-drive propulsion allows greater malleability and flexibility for harbour towing operations The new, ultra-powerful, highperformance and versatile tug will provide docking and ship-to-ship operations and will be used for ice escort, short and long distance towing as well as for salvage and salvage operations.

On November 25, 2011, a fire was raging in a 120,000 sq. ft. warehouse in the Anse-au-Foulon section of the Port of Québec. Because of the dangerous nature of the fire, firefighters sounded four successive alarms. The Ocean Ross Gaudreault, equipped with a FI-FI 1 firefighting system, arrived as back up for Québec City’s fire department. A few minutes later, the Ocean Bertrand Jeansonne was called to the scene.

The two tugs pumped water directly from the river, helping considerably to extinguish the flames.

The federal government recently issued two Requests for Supply Arrangements (RFSA) to address a short-term need in the Canadian Coast Guard’s delivery of additional services on the St. Lawrence and the Great Lakes. What is your view on whether this helps address the shortage of ice-breaking resources in the Great Lakes-St. Lawrence region? Is that an opportunity for your company?

Ocean was the first to introduce new generation tugs with firefighting equipment on the St. Lawrence River. Can you mention several incidents where they intervened to enhance safety?

The recent acquisition of three tugs from Svitzer Canada expanded your harbor towing fleet to 36 units. In which ports are Ocean tugs engaged in harbor towing?

We now have 33 tugs in our fleet with the sale of some tugs (OCEAN Delta, Hercules and Avantage).

In the Province of Quebec, Ocean tugs are located at Québec, Montréal.

Trois-Rivières/Bécancour, Sorel-Tracy, Sept-Iles ,Baie-Comeau and Port-Cartier.

In Ontario, Ocean tugs are located in Hamilton, Oshawa, Toronto, and Goderich.

23 23

In Conversation

In Conversation

IN CONVERSATION WITH

OCEAN GROUP

From deploying some of the world’s highest-performance tugs to dredging in the Caribbean and building a patrol boat for France’s navy... In an exclusive interview, Gordon Bain, founder and chairman, describes how Quebec City-based Ocean Group has evolved from a small commercial diving enterprise into a Canadian innovator of international dimension.

BY LEO RYAN

Since 1972, you have transformed from a fledgling operation, AquaMarine, into Ocean Group — a major supplier of marine services across Canada. What are some examples of your services in marine transportation and their geographic scope?

Ocean celebrated its 45th anniversary in 2017. Thanks to its acquisitions, its strategic development and the diversification of its activities, the company is one of the major suppliers of marine integrated services in Canada and a leader of the Canadian maritime industry. We have three main sectors of activities: harbour towing; naval construction and repair; marine works (rental of barges, wharves and specialized marine equipment) and dredging.

What economic impact does your company have in Canada in terms of jobs and other contributions?

The company owns one of the most important fleets of marine equipment in Canada with over 570 pieces of equipment, and employs more than 850 people in 16 business locations positioned along the St. Lawrence River, on the Great Lakes, in New Brunswick and in Western Canada.

Ocean Industries is an employer involved with its local community by participating in local activities and by supporting important causes in its region through various donations and sponsorships.

22

Otherwise, we are very much involved in causes close to my heart, such as sick children. We organized an event during our 40th anniversary, during which we raised $200,000 for the purchase of specialized respiratory equipment for children at the Centre Hospitalier universitaire de Québec (CHUQ).

What has contributed the most to the company’s success over the past 45 years – a strong team, innovation, timing or a combination of factors?

Definitely, strong team! I love to be surrounded by good people. Ocean is a story of teamwork and it is because of the people around us that we have succeeded in making Ocean what it is today. I trust the people that I hire.

Jacques Tanguay, my associate, my friend, and now Ocean’s new President, also knows how to surround himself with efficient and competent people.

They are the heart of the company and represent its future.

What business and/or government policies do you feel are necessary to help Ocean Group grow over the next five to 10 years?

Quebec’s Maritime Strategy has put shipping and its importance back in the public debate. We are very pleased to see that both our elected and Quebec officials are emphasizing the marine environment and hope that

this will continue, or even increase, in the coming years.

We are very interested in the Government of Canada’s Fleet Renewal Strategy. Our shipbuilding and ship repair services are closely monitoring the upcoming bidding and we are targeting construction projects in the small and medium-sized category (under 1000 metric tons).

More specifically, Ocean has an important background with the construction, operation and maintenance of harbour tugs. Canada’s National Defense announced several years ago that it wants to build four large tugboats. We will rely on our experience and history to win this tender.

In the case of smaller shipyards, aid to shipbuilding would have the positive effect of maintaining expertise outside major shipyards. A ship repair tax credit or a similar measure would be appropriate.

Any more expansion on the radar screen? And can you give us an estimate of investments in fleet renewal in the past 10 years?

After 45 years, we have expanded more than ever and are continuing to grow. We now develop services, such as dredging, that can be deployed on an international level. Since 2013, we have obtained various dredging contracts in Mexico, Dominican Republic, Cuba and Jamaica. Ocean has become a leader in the Canadian maritime industry. We have developed a unique expertise that has allowed us to begin a major turning point in our development strategy. Our vision of the future: become a worldclass company and a trusted business partner for its clientele. Overall, Ocean has invested $320M since 2005. These investments demonstrate Ocean’s priority to offer state-of-the-art equipment and quality service to its customers.

Describe the great innovations offered by your Z-tugs and such tugs as the Ocean Tundra.

In December 2013, the shipyard Ocean Industries completed the construction of the most powerful tugboat ever built in Eastern Canada, the Ocean Tundra. The second in the TundRA series, was also completed in October 2016.

These 36-m tugboats are equipped with the most modern technologies and can operate in the most extreme conditions. The hulls of these tugs are reinforced and certified 1A Super FS for ice navigation. In addition, their engines develop 8,160 BHP of power, propelled by two Z-drive omnidirectional propellers and with a total bollard pull force of more than 100 TM. The Z-drive propulsion allows greater malleability and flexibility for harbour towing operations The new, ultra-powerful, highperformance and versatile tug will provide docking and ship-to-ship operations and will be used for ice escort, short and long distance towing as well as for salvage and salvage operations.

On November 25, 2011, a fire was raging in a 120,000 sq. ft. warehouse in the Anse-au-Foulon section of the Port of Québec. Because of the dangerous nature of the fire, firefighters sounded four successive alarms. The Ocean Ross Gaudreault, equipped with a FI-FI 1 firefighting system, arrived as back up for Québec City’s fire department. A few minutes later, the Ocean Bertrand Jeansonne was called to the scene.

The two tugs pumped water directly from the river, helping considerably to extinguish the flames.

The federal government recently issued two Requests for Supply Arrangements (RFSA) to address a short-term need in the Canadian Coast Guard’s delivery of additional services on the St. Lawrence and the Great Lakes. What is your view on whether this helps address the shortage of ice-breaking resources in the Great Lakes-St. Lawrence region? Is that an opportunity for your company?

Ocean was the first to introduce new generation tugs with firefighting equipment on the St. Lawrence River. Can you mention several incidents where they intervened to enhance safety?

The recent acquisition of three tugs from Svitzer Canada expanded your harbor towing fleet to 36 units. In which ports are Ocean tugs engaged in harbor towing?

We now have 33 tugs in our fleet with the sale of some tugs (OCEAN Delta, Hercules and Avantage).

In the Province of Quebec, Ocean tugs are located at Québec, Montréal.

Trois-Rivières/Bécancour, Sorel-Tracy, Sept-Iles ,Baie-Comeau and Port-Cartier.

In Ontario, Ocean tugs are located in Hamilton, Oshawa, Toronto, and Goderich.

23 23

In Conversation

Yes, this request from the federal government is an opportunity.

A majority of our tugs are reinforced and certified with ice classes to break the ice more accurately than the current Canadian Coast Guard icebreakers. The two 36-m TundRA series tugboats, the OCEAN TAIGA and the OCEAN TUNDRA, with 8000 HP of power and Super A1 ice classes, would be appropriate to support these approaches. However, we have already mentioned to them that we could intervene on an ad hoc and targeted basis to support the current and future Coast Guard icebreakers. It is certain, however, that the Coast Guard will have to address this issue with a long-term solution.

Ocean Group also operates its own shipyard in the Isleaux-Coudres. Describe the activities of the facility, which has been an important contributor to the local economy and which also recently won its first contract with a foreign navy – that of France.

Since its acquisition in 1997, Ocean’s shipyard in Isle-auxCoudres has developed a significant expertise in naval construction and repair for small to medium tonnage ships with steel and aluminum hull.

The shipyard has built nearly 375 ships and barges and completed more than 500 dry dockings.

In Conversation

Our contribution to the local economy is important by maintaining 130 to 140 well-paying jobs in the Charlevoix region.

The Fulmar contract, patrol boat of the French Navy, is important on two points. This is the first contract with a foreign navy. Moreover, it is the first recurring contract for a military ship. After a long process, the signing of this contract gives us a handson experience with our Canadian government, regarding future bids as part of its National Shipbuilding Strategy.

In another shipyard development, this past fall Ocean was awarded a contract by the New Brunswick government for the construction of a cable ferry. This appears to have positive implications for the revival of your Naval Center in Bas Caraquet?

Ocean was proud to announce that it was awarded a contract with the provincial government for the construction of a cable ferry in New Brunswick. With a capacity of 15 cars and 100 passengers, this 25-metre ship will be used for the crossing at Kennebecasis.

It will be launched next fall.

This contract reinforces the relaunch project at the Naval Center with the construction of the floating drydock and strengthens Ocean’s foundation and expertise in shipbuilding and ship repair in New Brunswick. During this time, we continue the floating dry dock construction with which we intend to create more than 75 jobs in the region.

To what extent are infrastructure projects at the heart of some of your business?

One of our business units is working on some submerged infrastructure projects, such as the Champlain Bridge where we are the leading supplier of marine equipment.

Our towing services also worked in the province of Newfoundland and Labrador in Bull Arm Bay to build a Hebron drilling rig.

Through the years, floating wharves have been a core business. In this regard, any sign of renewed activity in the Arctic where in 2008 Ocean took part in a pioneering pilot project for Baffinland Iron Mines?

The Arctic will inevitably be an issue in the coming years and we have the expertise and the equipment to operate there again when the context is right.

We do have several large projects in which we bring in strong expertise with floating docks, barges and tugs.

Ocean is the largest owner of barges in Eastern Canada and participates in various major projects, such as the construction of the new Champlain Bridge in Montréal. More than 70 per cent of the marine equipment there comes from our company.

The past few years have seen some impressive growth in international business for Ocean via dredging contracts. As you head towards a 50th anniversary several years away, are you setting your sights on more opportunities overseas beyond Latin America to markets, say, in Europe and Asia?

We are focusing our efforts on diversifying our operations in the Caribbean and the countries south of the United States, where we cannot operate due to the Jones Act. We currently have good experiences with dredging in the above-mentioned countries and we are continuing our development in these areas.

Europe is a market already well covered by historically wellestablished companies. We are not closing the door, but are stepping up our development towards markets where competition is

more open. Asia is geographically further away and we look less at these territories. However, our vision is to become a world-class organization. In this sense, nothing is impossible in the long run.

Finally, in global marine and other industries, finding skilled workers has emerged as one of the most pressing challenges in today’s world. Is this also the case for Ocean Group?

Yes, manpower is currently our main challenge. The scarcity of labour, especially in sites outside the larger cities, is a daily problem and could slow down our growth in the medium term. We put a lot of effort on recruitment and retention of workforce. We are working on different measures to limit this impact. n

• Based in Quebec City, • Founded in 1972 by Gordon Bain who initially created a small commercial diving enterprise called Aqua-Marine.

• Three main sectors of activity: harbor towing, naval construction and repair, and marine works and dredging.

• 850 employees in 16 different locations in Quebec, Ontario, New Brunswick and in western Canada.

• Has invested $320 million since 2005 in fleet renewal and state-of-the-art equipment.

• Operates a fleet of 33 tugboats, including the Ocean Tundra, the most powerful tugboat ever built in Eastern Canada.

• Ocean was the first to introduce new generation tugs with firefighting equipment on the St. Lawrence River.

• Ocean Group’s dredging division obtained its first international contract in 2013 at Mexico’s port of Dos Bocas.

WHY GO WEST TO SHIP EAST? Did you know that one in four international 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.

OCEAN’S INNOVATIVE NAVAL CONSTRUCTION EXPERTISE IS WIDELY PRAISED.

Find out what we can do for you at tradingwiththeworld.com

24

25

PRODUCTION EN STUDIO

1 FÉVRIER 2018 11:39

In Conversation

Yes, this request from the federal government is an opportunity.

A majority of our tugs are reinforced and certified with ice classes to break the ice more accurately than the current Canadian Coast Guard icebreakers. The two 36-m TundRA series tugboats, the OCEAN TAIGA and the OCEAN TUNDRA, with 8000 HP of power and Super A1 ice classes, would be appropriate to support these approaches. However, we have already mentioned to them that we could intervene on an ad hoc and targeted basis to support the current and future Coast Guard icebreakers. It is certain, however, that the Coast Guard will have to address this issue with a long-term solution.

Ocean Group also operates its own shipyard in the Isleaux-Coudres. Describe the activities of the facility, which has been an important contributor to the local economy and which also recently won its first contract with a foreign navy – that of France.

Since its acquisition in 1997, Ocean’s shipyard in Isle-auxCoudres has developed a significant expertise in naval construction and repair for small to medium tonnage ships with steel and aluminum hull.

The shipyard has built nearly 375 ships and barges and completed more than 500 dry dockings.

In Conversation

Our contribution to the local economy is important by maintaining 130 to 140 well-paying jobs in the Charlevoix region.

The Fulmar contract, patrol boat of the French Navy, is important on two points. This is the first contract with a foreign navy. Moreover, it is the first recurring contract for a military ship. After a long process, the signing of this contract gives us a handson experience with our Canadian government, regarding future bids as part of its National Shipbuilding Strategy.

In another shipyard development, this past fall Ocean was awarded a contract by the New Brunswick government for the construction of a cable ferry. This appears to have positive implications for the revival of your Naval Center in Bas Caraquet?

Ocean was proud to announce that it was awarded a contract with the provincial government for the construction of a cable ferry in New Brunswick. With a capacity of 15 cars and 100 passengers, this 25-metre ship will be used for the crossing at Kennebecasis.

It will be launched next fall.

This contract reinforces the relaunch project at the Naval Center with the construction of the floating drydock and strengthens Ocean’s foundation and expertise in shipbuilding and ship repair in New Brunswick. During this time, we continue the floating dry dock construction with which we intend to create more than 75 jobs in the region.

To what extent are infrastructure projects at the heart of some of your business?

One of our business units is working on some submerged infrastructure projects, such as the Champlain Bridge where we are the leading supplier of marine equipment.

Our towing services also worked in the province of Newfoundland and Labrador in Bull Arm Bay to build a Hebron drilling rig.

Through the years, floating wharves have been a core business. In this regard, any sign of renewed activity in the Arctic where in 2008 Ocean took part in a pioneering pilot project for Baffinland Iron Mines?

The Arctic will inevitably be an issue in the coming years and we have the expertise and the equipment to operate there again when the context is right.

We do have several large projects in which we bring in strong expertise with floating docks, barges and tugs.

Ocean is the largest owner of barges in Eastern Canada and participates in various major projects, such as the construction of the new Champlain Bridge in Montréal. More than 70 per cent of the marine equipment there comes from our company.

The past few years have seen some impressive growth in international business for Ocean via dredging contracts. As you head towards a 50th anniversary several years away, are you setting your sights on more opportunities overseas beyond Latin America to markets, say, in Europe and Asia?

We are focusing our efforts on diversifying our operations in the Caribbean and the countries south of the United States, where we cannot operate due to the Jones Act. We currently have good experiences with dredging in the above-mentioned countries and we are continuing our development in these areas.

Europe is a market already well covered by historically wellestablished companies. We are not closing the door, but are stepping up our development towards markets where competition is

more open. Asia is geographically further away and we look less at these territories. However, our vision is to become a world-class organization. In this sense, nothing is impossible in the long run.

Finally, in global marine and other industries, finding skilled workers has emerged as one of the most pressing challenges in today’s world. Is this also the case for Ocean Group?

Yes, manpower is currently our main challenge. The scarcity of labour, especially in sites outside the larger cities, is a daily problem and could slow down our growth in the medium term. We put a lot of effort on recruitment and retention of workforce. We are working on different measures to limit this impact. n

• Based in Quebec City, • Founded in 1972 by Gordon Bain who initially created a small commercial diving enterprise called Aqua-Marine.

• Three main sectors of activity: harbor towing, naval construction and repair, and marine works and dredging.

• 850 employees in 16 different locations in Quebec, Ontario, New Brunswick and in western Canada.

• Has invested $320 million since 2005 in fleet renewal and state-of-the-art equipment.

• Operates a fleet of 33 tugboats, including the Ocean Tundra, the most powerful tugboat ever built in Eastern Canada.

• Ocean was the first to introduce new generation tugs with firefighting equipment on the St. Lawrence River.

• Ocean Group’s dredging division obtained its first international contract in 2013 at Mexico’s port of Dos Bocas.

WHY GO WEST TO SHIP EAST? Did you know that one in four international 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.

OCEAN’S INNOVATIVE NAVAL CONSTRUCTION EXPERTISE IS WIDELY PRAISED.

Find out what we can do for you at tradingwiththeworld.com

24

25

PRODUCTION EN STUDIO

1 FÉVRIER 2018 11:39

News Updates

Trade Winds

HOW TO MOVE A HOTEL BY WATER

BY LEO RYAN

I

n Calgary’s East Village, Quebecbased Groupe Germain is building one of its ALT hotels. To the unaccustomed, it may seem like many other hotel projects.

But its construction and components took a rather unique journey – with its hotel rooms prefabricated in Poland and transported as modular units by ship to Canada and heading west straight through the Great Lakes-St. Lawrence Seaway.

“WE HAD THE MOST STEVEDORE HOURS IN 10 YEARS AT THE GENERAL CARGO TERMINAL IN 2017” Tim Heney, President and CEO of the TBPA.

To start with, the 156 modules manufactured by Poland’s Polcom Group in Topola were transported 125 kms south to the port of Gdansk. At the large Baltic Sea port, the modules were transferred from Poland via ship for the Port of Thunder Bay where they were offloaded last September by Logistec Stevedoring.

26

Stored provisionally in the port’s extensive lay down area, the units were then trucked in phases to Calgary’s East Village, where the hotel was partly assembled prior to the onset of winter, and construction was expected to resume this spring.

Located at the head of the Great Lakes-St. Lawrence Seaway System, the Port of Thunder Bay has long been chiefly known as the eastern gateway of choice for grain exports from Western Canada. But a diversification strategy, bolstered by the Keefer general cargo terminal equipped with a mobile harbor crane, has transformed the port in recent years into a competitive player in the world’s fast-expanding project cargo market.

Working with the Thunder Bay Port Authority (TBPA) “has been an absolute pleasure,” remarked Laurie Ritter, Modular Cargo/International Trade Specialist at Polcom USA LLC. “The logistics portion of these projects requires a relationship to be established well in advance of arrival and pricing can affect where our vessel arrives.”

According to Ritter, “Thunder Bay provides a cost-effective water-arrival option to Central and Western Canada without compromising security, inland resources and specialty needs.”

In 2017, the hotel modules were a first for the Port of Thunder Bay. Another first was steel piping for Alberta by train. Other moves involved heavy machinery, electrical transformers, wind turbines from Germany for northern British Columbia, wood pellets from Norway and structural steel from Spain and Luxembourg for western Canada.

This all added up to a banner year for project cargo.

“We had the most stevedore hours in 10 years at the general cargo terminal in 2017,” indicated Tim Heney, President and CEO of the TBPA. These included 16 project-related shipments through the terminal – just one shy of a record 17 in 2015.

“To attract business, we have enhanced the laydown area,” noted Heney. “We have capitalized on the infrastructure of the general cargo terminal to provide value to the shipper.

Diversifying our cargo base has been a main initiative since 2004.”

Additional infrastructure improvement is on the drawing board – notably a terminal reconfiguration project that could cost $15 million. This would comprise rail upgrades and a heated storage building. Federal government financial support has been requested.

Targeting European trade with western Canada In late 2017, the Port of Thunder Bay also refreshed its corporate brand with a new logo and tagline – The Superior Way West. This supports a strategic growth objective and vision as the preferred marine route for European trade with western Canada.

In an interview, Heney said “one of the things that have helped us has been the liner concept introduced several years ago by (Dutch multi-purpose carrier) Spliethoff. Prior to that, it used to be full shiploads. Now we are getting a lot more smaller shipments, part shipments. That’s allowed us to cater to new customers.” n

GREAT LAKES SHIP CONTEST HUGE SUCCESS IN RAISING INDUSTRY AWARENESS

M

otorcycle enthusiasts Robin Ball and her husband Barry Grant will be trading their usual rides – for a rare trip aboard one of CSL’s new Trillium-class vessels now sailing the Great Lakes-St. Lawrence system.

Kingston resident Ms. Ball was confirmed the official winner of the Win a Trip on a Great Lakes Ship contest last September and will take her trip during the 2018 shipping season.

“I didn’t believe my husband at first when he told me my entry had been chosen,” said Robin Ball. “We’re excited. It’s a new experience for us, a new adventure.

We both ride motorcycles and take trips to the U.S. and we’ve been on a passenger cruise on the St. Lawrence – but this is really going to be different.”

The Chamber of Marine Commerce (CMC) partnered with CSL on the contest as part of its 2nd summer festival program to raise awareness in Ontario of marine shipping’s investment in innovation and environmental stewardship. CMC set up an event booth along with branding, advertising and giveaways at three festivals held in Hamilton, Niagara and Brockville attended by over 400,000 people.

The contest had more than 2150 entries, a 330 per cent increase over last year. Traffic at the CMC website

during the contest period hit an all-time high and the contest and its positive messaging reached thousands of people over social media. It also generated media coverage in daily newspapers across the Niagara region.

Bruce Burrows, President of the Chamber of Marine Commerce, said: “The contest is a fun way for us to engage the public in a conversation about how ship operators are spending billions on modernizing their fleets with cutting-edge technologies that significantly reduce marine shipping carbon and air emissions and improve navigation and crew safety. It’s a very successful tool to raise awareness about marine commerce and build longer term relationships with the public who then have the potential to become regular followers of shipping news.”

Meanwhile 2016 contest winner Jerry Dabrowski and his guest MyHanh Le took their prize trip on the CSL Baie Comeau in September, travelling from St. Lambert Lock in the St. Lawrence Seaway to the Port of Toronto, where the ship unloaded sugar.

“We literally got to see every crevice from the bow to the stern, from the bridge to the engine room. It was really, really cool, said Mr. Dabrowski.

“I learned about the volume of material

HUSBAND AND WIFEROBIN BALL & BARRY GRANT

a ship can carry, how many hundreds of transport trucks it would take to deliver the cargo that’s being delivered by one ship load. It’s a very viable, economical and safe way to deliver everyday products like the sugar in our coffee.

Every time I open a pack of sugar, I’m going to be thinking about this and how we were on board this ship delivering some of that sugar.”

Mr. Dabrowski was also impressed by the professionalism of the Canadian crew.

“We got to meet the crew, they are spectacular. They are very passionate.

If I would have known about this when I was younger, it would have opened up a whole new opportunity, a whole new world, and a career. It’s well-paying, the people are very committed and they are very conscientious about their roles and responsibilities.” n

Niche-sized bulk carriers & tug-and-barge units Efficiencies in cargo handling and loading.

LEARN HOW MCKEIL DELIVERS

MCKEIL.COM

27

News Updates

Trade Winds

HOW TO MOVE A HOTEL BY WATER

BY LEO RYAN

I

n Calgary’s East Village, Quebecbased Groupe Germain is building one of its ALT hotels. To the unaccustomed, it may seem like many other hotel projects.

But its construction and components took a rather unique journey – with its hotel rooms prefabricated in Poland and transported as modular units by ship to Canada and heading west straight through the Great Lakes-St. Lawrence Seaway.

“WE HAD THE MOST STEVEDORE HOURS IN 10 YEARS AT THE GENERAL CARGO TERMINAL IN 2017” Tim Heney, President and CEO of the TBPA.

To start with, the 156 modules manufactured by Poland’s Polcom Group in Topola were transported 125 kms south to the port of Gdansk. At the large Baltic Sea port, the modules were transferred from Poland via ship for the Port of Thunder Bay where they were offloaded last September by Logistec Stevedoring.

26

Stored provisionally in the port’s extensive lay down area, the units were then trucked in phases to Calgary’s East Village, where the hotel was partly assembled prior to the onset of winter, and construction was expected to resume this spring.

Located at the head of the Great Lakes-St. Lawrence Seaway System, the Port of Thunder Bay has long been chiefly known as the eastern gateway of choice for grain exports from Western Canada. But a diversification strategy, bolstered by the Keefer general cargo terminal equipped with a mobile harbor crane, has transformed the port in recent years into a competitive player in the world’s fast-expanding project cargo market.

Working with the Thunder Bay Port Authority (TBPA) “has been an absolute pleasure,” remarked Laurie Ritter, Modular Cargo/International Trade Specialist at Polcom USA LLC. “The logistics portion of these projects requires a relationship to be established well in advance of arrival and pricing can affect where our vessel arrives.”

According to Ritter, “Thunder Bay provides a cost-effective water-arrival option to Central and Western Canada without compromising security, inland resources and specialty needs.”

In 2017, the hotel modules were a first for the Port of Thunder Bay. Another first was steel piping for Alberta by train. Other moves involved heavy machinery, electrical transformers, wind turbines from Germany for northern British Columbia, wood pellets from Norway and structural steel from Spain and Luxembourg for western Canada.

This all added up to a banner year for project cargo.

“We had the most stevedore hours in 10 years at the general cargo terminal in 2017,” indicated Tim Heney, President and CEO of the TBPA. These included 16 project-related shipments through the terminal – just one shy of a record 17 in 2015.

“To attract business, we have enhanced the laydown area,” noted Heney. “We have capitalized on the infrastructure of the general cargo terminal to provide value to the shipper.

Diversifying our cargo base has been a main initiative since 2004.”

Additional infrastructure improvement is on the drawing board – notably a terminal reconfiguration project that could cost $15 million. This would comprise rail upgrades and a heated storage building. Federal government financial support has been requested.

Targeting European trade with western Canada In late 2017, the Port of Thunder Bay also refreshed its corporate brand with a new logo and tagline – The Superior Way West. This supports a strategic growth objective and vision as the preferred marine route for European trade with western Canada.

In an interview, Heney said “one of the things that have helped us has been the liner concept introduced several years ago by (Dutch multi-purpose carrier) Spliethoff. Prior to that, it used to be full shiploads. Now we are getting a lot more smaller shipments, part shipments. That’s allowed us to cater to new customers.” n

GREAT LAKES SHIP CONTEST HUGE SUCCESS IN RAISING INDUSTRY AWARENESS

M

otorcycle enthusiasts Robin Ball and her husband Barry Grant will be trading their usual rides – for a rare trip aboard one of CSL’s new Trillium-class vessels now sailing the Great Lakes-St. Lawrence system.

Kingston resident Ms. Ball was confirmed the official winner of the Win a Trip on a Great Lakes Ship contest last September and will take her trip during the 2018 shipping season.

“I didn’t believe my husband at first when he told me my entry had been chosen,” said Robin Ball. “We’re excited. It’s a new experience for us, a new adventure.

We both ride motorcycles and take trips to the U.S. and we’ve been on a passenger cruise on the St. Lawrence – but this is really going to be different.”

The Chamber of Marine Commerce (CMC) partnered with CSL on the contest as part of its 2nd summer festival program to raise awareness in Ontario of marine shipping’s investment in innovation and environmental stewardship. CMC set up an event booth along with branding, advertising and giveaways at three festivals held in Hamilton, Niagara and Brockville attended by over 400,000 people.

The contest had more than 2150 entries, a 330 per cent increase over last year. Traffic at the CMC website

during the contest period hit an all-time high and the contest and its positive messaging reached thousands of people over social media. It also generated media coverage in daily newspapers across the Niagara region.

Bruce Burrows, President of the Chamber of Marine Commerce, said: “The contest is a fun way for us to engage the public in a conversation about how ship operators are spending billions on modernizing their fleets with cutting-edge technologies that significantly reduce marine shipping carbon and air emissions and improve navigation and crew safety. It’s a very successful tool to raise awareness about marine commerce and build longer term relationships with the public who then have the potential to become regular followers of shipping news.”

Meanwhile 2016 contest winner Jerry Dabrowski and his guest MyHanh Le took their prize trip on the CSL Baie Comeau in September, travelling from St. Lambert Lock in the St. Lawrence Seaway to the Port of Toronto, where the ship unloaded sugar.

“We literally got to see every crevice from the bow to the stern, from the bridge to the engine room. It was really, really cool, said Mr. Dabrowski.

“I learned about the volume of material

HUSBAND AND WIFEROBIN BALL & BARRY GRANT

a ship can carry, how many hundreds of transport trucks it would take to deliver the cargo that’s being delivered by one ship load. It’s a very viable, economical and safe way to deliver everyday products like the sugar in our coffee.

Every time I open a pack of sugar, I’m going to be thinking about this and how we were on board this ship delivering some of that sugar.”

Mr. Dabrowski was also impressed by the professionalism of the Canadian crew.

“We got to meet the crew, they are spectacular. They are very passionate.

If I would have known about this when I was younger, it would have opened up a whole new opportunity, a whole new world, and a career. It’s well-paying, the people are very committed and they are very conscientious about their roles and responsibilities.” n

Niche-sized bulk carriers & tug-and-barge units Efficiencies in cargo handling and loading.

LEARN HOW MCKEIL DELIVERS

MCKEIL.COM

27

KEY FACTS

Trade Winds

• The port handled 408,567 metric tons of cargo in 2017.

• On average, the port handles $23 million worth of cargo annually.

• Main cargo categories include salt, steel, asphalt, grain, potash, calcium, heavy lift and project cargoes.

• Port activity supports 294 jobs for Oshawa community.

• Port generates $6 million annually in federal and provincial taxes.

INTERMODAL INVESTMENTS DELIVER NEW BUSINESS FOR OSHAWA

BY LEO RYAN

L

ocated on Lake Ontario, some 51 kms from Toronto, the Port of Oshawa is the Durham Region’s gateway to North American and world markets through the St. Lawrence Seaway. Over the past decade, it has handled more than 500 commercial freighters and shipped more than three million metric tons of cargo ranging from salt and steel products to asphalt, grain, heavy lift and project cargo.

Now, investments in a rail spur and a cement terminal are paying off, establishing the port as an intermodal hub and attracting new business and cargoes. In 2017, cargo traffic increased by 9 per cent to 408,567 metric tons from 372,301 metric tons in 2016.

Steel climbed to nearly 200,000 metric tons, salt more than doubled to more than 92,000 metric tons. Especially significant, however, was the volume of cement of nearly 21,000 metric tons versus zero in 2016.

Last year, McInnis Cement added Oshawa to its distribution network in 28

Canada and the United States. McInnis retrofitted two existing domes on the east wharf of the port to establish a cement unloading system for arriving vessels and a truck loading station.

Combined, the two domes provide a storage capacity of 14,000 tons of cement, while the terminal can accommodate up to 60 trucks daily for loading and delivery to customers.

The terminal is primarily served by NACC Quebec, a vessel chartered for the distribution of cement throughout the Great Lakes-St. Lawrence region and the East coast.

The cement terminal was strongly welcomed by Donna Taylor, president, CEO and harbourmaster of the Oshawa Port Authority (OPA) and by OPA chair Gary Valcour for strengthening “the diversity of the port.”

In the spring of 2015, a $4.1 million rail spur was launched funded by the OPA – permitting the Port of Oshawa, in Taylor’s words, to emerge as “a national deepsea port that is now truly

intermodal.” The rail spur includes a section that can accommodate project cargo that is too big to move by road, opening opportunities for new niche business.

OSHAWA’S HARBOURFRONT ‘WARRIOR’ Users and customers widely acknowledge the crucial contribution that Donna Taylor – Canada’s longest serving port executive – has made to the Port of Oshawa for more than three decades. In effect, throughout sometimes tense port relations with the City of Oshawa, Taylor has been a veritable waterfront warrior.

“She has played a major role in the development of the Oshawa Port Authority,” notes Frank Robertson, manager of Oshawa Stevedoring. “Her vision of a multimodal facility finally came to life a few years ago with the opening of the CN Rail spur. Since then, the port has maintained its growth and keeps expanding with new

Trade Winds

volumes and new cargoes because of her hard work, persistence and devotion to the cause.”

“Over the course of the last 20 years, our steel tonnage imports have risen consistently and the Port of Oshawa has been, and is, a key partner in helping us grow our business by always being proactive in developing their infrastructure to adapt to our ever growing volumes,” stated Henry Pankratz, president of Ferrostaal Steel Canada Inc. The latter falls under the umbrella of Hamburgbased Ferrostaal Trading GmbH, a leading world industrial service provider.

“As an example,” Pankratz stressed, “because of the port’s investment in a rail spur, our business has broadened towards western Canadian markets.

“Our imports serve, among others, the Ontario building trades market and has reached hundreds of thousands of tons during the years of our long association with the Port of Oshawa.”

Taylor’s association with the port also goes back a long time. After a stint as secretary to the port manager of the then Oshawa Harbour Commission, she became Canada’s first female port manager in 1984. As part of a settlement agreement, the marina lands and some west wharf lands were transferred to the City of Oshawa for recreational use. And in 2012, she took over the helm of the Oshawa Port Authority (OPA) under the restructured system of leading Canadian ports.

In an interview, Taylor declared: “Since becoming the Oshawa Port Authority, our new stability has encouraged us to reach out to our existing users and encourage longer term commitments and seek new long-term agreements with new users.

To this point we now have a new 70,000 square foot warehouse for the storage of sensitive steel products and a contract to blend salt with investments of over $3.7 million. The rail spur has been completed and is being used to distribute steel products to Western Canada and transfer dimensional moves from rail to barge. The Port of Oshawa is now truly intermodal, with Highway 401 only two kilometres away.

Donna Taylor, CEO and harbourmaster of the Oshawa Port Authority

We want to build on this new service and have plans to extend the spur further south.”

“Being close to the Toronto condo market with easy access for trucking,” Taylor continued, “has made the Port of Oshawa a destination point for construction materials such as rebar, beams and pipes. Our experience with steel products, high productivity and careful handling has made us the choice of many importers.”

“OVER THE COURSE OF THE LAST 20 YEARS, OUR STEEL TONNAGE IMPORTS HAVE RISEN CONSISTENTLY AND THE PORT OF OSHAWA HAS BEEN, AND IS, A KEY PARTNER IN HELPING US GROW OUR BUSINESS” Henry Pankratz, president of Ferrostaal Steel Canada Inc.

Taylor affirms that the port’s “relationship with the City of Oshawa has improved tremendously and we are mindful that we are abutting the Oshawa Second Marsh Wildlife Area to the east and the City’s Lakeview Park to the west.”

CONTAINER FEEDER SERVICE AHEAD? Taylor said she continues to believe in the need for a container feeder service in the Lakes from the Canadian side.

“I also think the Great Lakes cruise industry is coming into its own with an increase in sailings. These are new initiatives that will put a lot of pressure on the port in terms of space, as the Port of Oshawa can figure prominently in these new ventures.”

Meanwhile, Taylor remains resolutely optimistic over the port’s outlook in the wake of a recent arbitration award mandating the OPA to pay FarmTech $4.1 million after it cancelled a proposed ethanol plant project following an agreement made in 2012.

Local environmental groups and the city council had opposed the project.

“Despite a significant arbitration judgment against the Port of Oshawa, it is business as usual,” Taylor told Marine Delivers. “We have already received several commitments for the opening of 2018 navigation, and our plans for new projects proceed unimpeded as we work towards a resolution of this budgetary matter.” n

29

KEY FACTS

Trade Winds

• The port handled 408,567 metric tons of cargo in 2017.

• On average, the port handles $23 million worth of cargo annually.

• Main cargo categories include salt, steel, asphalt, grain, potash, calcium, heavy lift and project cargoes.

• Port activity supports 294 jobs for Oshawa community.

• Port generates $6 million annually in federal and provincial taxes.

INTERMODAL INVESTMENTS DELIVER NEW BUSINESS FOR OSHAWA

BY LEO RYAN

L

ocated on Lake Ontario, some 51 kms from Toronto, the Port of Oshawa is the Durham Region’s gateway to North American and world markets through the St. Lawrence Seaway. Over the past decade, it has handled more than 500 commercial freighters and shipped more than three million metric tons of cargo ranging from salt and steel products to asphalt, grain, heavy lift and project cargo.

Now, investments in a rail spur and a cement terminal are paying off, establishing the port as an intermodal hub and attracting new business and cargoes. In 2017, cargo traffic increased by 9 per cent to 408,567 metric tons from 372,301 metric tons in 2016.

Steel climbed to nearly 200,000 metric tons, salt more than doubled to more than 92,000 metric tons. Especially significant, however, was the volume of cement of nearly 21,000 metric tons versus zero in 2016.

Last year, McInnis Cement added Oshawa to its distribution network in 28

Canada and the United States. McInnis retrofitted two existing domes on the east wharf of the port to establish a cement unloading system for arriving vessels and a truck loading station.

Combined, the two domes provide a storage capacity of 14,000 tons of cement, while the terminal can accommodate up to 60 trucks daily for loading and delivery to customers.

The terminal is primarily served by NACC Quebec, a vessel chartered for the distribution of cement throughout the Great Lakes-St. Lawrence region and the East coast.

The cement terminal was strongly welcomed by Donna Taylor, president, CEO and harbourmaster of the Oshawa Port Authority (OPA) and by OPA chair Gary Valcour for strengthening “the diversity of the port.”

In the spring of 2015, a $4.1 million rail spur was launched funded by the OPA – permitting the Port of Oshawa, in Taylor’s words, to emerge as “a national deepsea port that is now truly

intermodal.” The rail spur includes a section that can accommodate project cargo that is too big to move by road, opening opportunities for new niche business.

OSHAWA’S HARBOURFRONT ‘WARRIOR’ Users and customers widely acknowledge the crucial contribution that Donna Taylor – Canada’s longest serving port executive – has made to the Port of Oshawa for more than three decades. In effect, throughout sometimes tense port relations with the City of Oshawa, Taylor has been a veritable waterfront warrior.

“She has played a major role in the development of the Oshawa Port Authority,” notes Frank Robertson, manager of Oshawa Stevedoring. “Her vision of a multimodal facility finally came to life a few years ago with the opening of the CN Rail spur. Since then, the port has maintained its growth and keeps expanding with new

Trade Winds

volumes and new cargoes because of her hard work, persistence and devotion to the cause.”

“Over the course of the last 20 years, our steel tonnage imports have risen consistently and the Port of Oshawa has been, and is, a key partner in helping us grow our business by always being proactive in developing their infrastructure to adapt to our ever growing volumes,” stated Henry Pankratz, president of Ferrostaal Steel Canada Inc. The latter falls under the umbrella of Hamburgbased Ferrostaal Trading GmbH, a leading world industrial service provider.

“As an example,” Pankratz stressed, “because of the port’s investment in a rail spur, our business has broadened towards western Canadian markets.

“Our imports serve, among others, the Ontario building trades market and has reached hundreds of thousands of tons during the years of our long association with the Port of Oshawa.”

Taylor’s association with the port also goes back a long time. After a stint as secretary to the port manager of the then Oshawa Harbour Commission, she became Canada’s first female port manager in 1984. As part of a settlement agreement, the marina lands and some west wharf lands were transferred to the City of Oshawa for recreational use. And in 2012, she took over the helm of the Oshawa Port Authority (OPA) under the restructured system of leading Canadian ports.

In an interview, Taylor declared: “Since becoming the Oshawa Port Authority, our new stability has encouraged us to reach out to our existing users and encourage longer term commitments and seek new long-term agreements with new users.

To this point we now have a new 70,000 square foot warehouse for the storage of sensitive steel products and a contract to blend salt with investments of over $3.7 million. The rail spur has been completed and is being used to distribute steel products to Western Canada and transfer dimensional moves from rail to barge. The Port of Oshawa is now truly intermodal, with Highway 401 only two kilometres away.

Donna Taylor, CEO and harbourmaster of the Oshawa Port Authority

We want to build on this new service and have plans to extend the spur further south.”

“Being close to the Toronto condo market with easy access for trucking,” Taylor continued, “has made the Port of Oshawa a destination point for construction materials such as rebar, beams and pipes. Our experience with steel products, high productivity and careful handling has made us the choice of many importers.”

“OVER THE COURSE OF THE LAST 20 YEARS, OUR STEEL TONNAGE IMPORTS HAVE RISEN CONSISTENTLY AND THE PORT OF OSHAWA HAS BEEN, AND IS, A KEY PARTNER IN HELPING US GROW OUR BUSINESS” Henry Pankratz, president of Ferrostaal Steel Canada Inc.

Taylor affirms that the port’s “relationship with the City of Oshawa has improved tremendously and we are mindful that we are abutting the Oshawa Second Marsh Wildlife Area to the east and the City’s Lakeview Park to the west.”

CONTAINER FEEDER SERVICE AHEAD? Taylor said she continues to believe in the need for a container feeder service in the Lakes from the Canadian side.

“I also think the Great Lakes cruise industry is coming into its own with an increase in sailings. These are new initiatives that will put a lot of pressure on the port in terms of space, as the Port of Oshawa can figure prominently in these new ventures.”

Meanwhile, Taylor remains resolutely optimistic over the port’s outlook in the wake of a recent arbitration award mandating the OPA to pay FarmTech $4.1 million after it cancelled a proposed ethanol plant project following an agreement made in 2012.

Local environmental groups and the city council had opposed the project.

“Despite a significant arbitration judgment against the Port of Oshawa, it is business as usual,” Taylor told Marine Delivers. “We have already received several commitments for the opening of 2018 navigation, and our plans for new projects proceed unimpeded as we work towards a resolution of this budgetary matter.” n

29

Infrastructure Investment

Infrastructure Investment

U.S. GREAT LAKES PORTS EXPANSION ATTRACT NEW BUSINESS FEDERAL INFRASTRUCTURE GRANTS KEY TO NEW PROJECTS

BY BILL BECK

U

.S. Great Lakes ports are attracting new cargos and economic activity for their local communities following infrastructure investments to upgrade their dockside facilities. From Cleveland to Burns Harbor to Duluth, many of these projects have been helped by federal and state grants, underlying the importance that marine shippingrelated investments be included in any upcoming national infrastructure legislation.

“Ports are economic engines for their communities. They attract inward investment, support wellpaying jobs and are vital to the global competitiveness of the region’s industries,” says Chamber of Marine Commerce President Bruce Burrows. “President Donald Trump put

infrastructure investment at the heart of his election platform. Investing in Great Lakes ports and inland maritime shipping is investing in the future success of America.”

At the Duluth Seaway Port Authority (DSPA), for example, the big port on Lake Superior is in the midst of $24 million in infrastructure capital investment. “The big generator was a $10 million TIGER grant in 2013,” Port Interim Executive Director Kevin Beardsley said. “We got another $4 million in state grants, and put in $4 million of our own money.”

The TIGER grants (Transportation Investment Generating Economic Recovery) are a supplementary discretionary grant program included in the American Recovery and Reinvestment Act of 2009 and are

awarded by the U.S. Department of Transportation. Since the program was first created, $5.1 billion has been awarded for capital investments in surface transportation infrastructure over eight rounds of competitive grants.

Transportation Secretary Elaine Chao noted in soliciting applications for the 2017 round of grants this past September that “TIGER grants will continue to fund innovative projects that will improve the safety of America’s passengers and goods.”

DSPA used its $10 million TIGER grant to rebuild and expand a 28-acre general cargo dock at the Port of Duluth-Superior and connect the site to existing road and rail infrastructure. The project helped transform underutilized Docks C & D, which were in a deficient condition,

into a fully functional intermodal facility to support existing industries and the growth of new commerce throughout the Midwest.

Connecting Port of Duluth to road/rail network The project has helped bolster the economic competitiveness of the region by increasing import and export capacity at the Port, while helping to promote increased U.S. exports via the Great Lakes and St. Lawrence Seaway. By connecting the Port of Duluth to the nation’s highway and rail network, the project will facilitate more environmentally sustainable freight transportation.

The refurbishment of Docks C & D paved the way for the port to kick off Duluth Cargo Connect, a partnership between the Duluth Superior Port Authority and Lake Superior Warehousing, working in conjunction with CN’s rail network in the region, helping to open up a new logistics supply chain and growth opportunities for the port’s partners and shippers in the region.

Minnesota is also one of two Great Lakes states that operate a state port assistance program. The Washington, D.C.-based American Great Lakes Port Association (AGLPA) notes that state programs can be “a critical source of grant assistance to rebuild dock walls, provide dredge material disposal, and redevelop waterfront facilities.” AGLPA points out that other states should consider emulating Wisconsin’s Harbor Assistance Program, which since its inception in 1979 has invested more than $110 million in the state’s Great Lakes and Mississippi River ports.

FASTLANE award program

30 30

EXPANDED GENERAL CARGO DOCK AT PORT OF DULUTH-SUPERIOR

Another U.S. Department of Transportation program used to encourage infrastructure projects is the FASTLANE small project

award program. The Fostering Advancements in Shipping and Transportation for the Long-term Achievement of National Efficiencies Discretionary Grant program is part of the 2015 federal legislation Fixing America’s Surface Transportation (FAST) Act. Now in its second fiscal year, the program is already attracting interest among U.S. Great Lakes port directors. In 2017, the Port of Indiana-Burns Harbor was awarded a $9.85 million FASTLANE grant for enhanced intermodal facilities with rail and truck marshaling yards at the Lake Michigan port. The FASTLANE grant will cover half of the $19.7 million project. The port expansion will include the construction of a new 2.3-acre cargo terminal with multimodal connections for handling cargo transfers between ships, barges, rail cars and trucks.

The port will also add 4.4 miles to the existing 14-mile rail network and build two new railyards for storage of 165 rail cars.

Rich Cooper, Ports of Indiana CEO, is a big fan of leveraging federal and state grants for infrastructure projects.

The statewide port commission, which also operates two ports on the Ohio River in southern Indiana, was a 2015 recipient of a TIGER grant of $10 million for Truck-to-Rail and Rail-to-Water Improvements at the Port of Indiana-Jeffersonville.

“W ith these investments, companies using water to move cargo will have new options for their inbound raw materials, outbound finished products and transferring shipments between ships and barges, rail cars and trucks,” Cooper said.

Cleveland and Chicago port priorities William D. Friedman, president and chief executive officer of the Cleveland-Cuyahoga County Port Authority, agrees that upgrading infrastructure can pay dividends in the long term. “We want to make

sure that the infrastructure is good,” he said. “We’ve spent a lot of money as the local sponsor for dredge spoils disposal.” Friedman added the port “needs to make some good-sized investments at its bulk cargo facility.”

Part of that project includes $8 million worth of dock remediation.

“We were able to re-purpose an older earmark to free up some federal money,” Friedman said. “We worked through the Ohio Department of Transportation (ODOT) to get that done.” The port also received federal money for two new Liebherr Mobile Cranes, two container handling reach stackers and a new transit shed for transloading. On tap at the port is a gate upgrade at the general cargo dock. “We continue to handle more containers and a lot more trucks,” Friedman indicated.

At the Illinois International Port District (IIPD), a recently passed piece of state legislation allowed the Chicago port to change its debtequity position. In the process, the legislature erased nearly $15 million of debt that had been on the port books for years.

“The bill didn’t give me $15 million,” said Clayton Harris III, IIPD’s President and CEO. “It gave me an eraser. The probability of achieving our goals is increased. We’re moving from possibility to probability.”

Improving infrastructure is a big part of the planning process the Port District is undergoing at Harris’ direction. “When we publish our fiveyear plan,” he said, “it’s a roadmap for our 10-year and 20-year plans.”

Utilizing $2.3 million in grant funding, the Port District is re-doing Butler Drive at Lake Calumet, the main thoroughfare to the port and the heart of multi-modal transportation in Chicago. The $15-$18 million project will eventually involve an upgrade of rail networks, transit sheds and the dock wall serving the port. “It’s an example of what we can do in the future,” Harris said. n

31

Infrastructure Investment

Infrastructure Investment

U.S. GREAT LAKES PORTS EXPANSION ATTRACT NEW BUSINESS FEDERAL INFRASTRUCTURE GRANTS KEY TO NEW PROJECTS

BY BILL BECK

U

.S. Great Lakes ports are attracting new cargos and economic activity for their local communities following infrastructure investments to upgrade their dockside facilities. From Cleveland to Burns Harbor to Duluth, many of these projects have been helped by federal and state grants, underlying the importance that marine shippingrelated investments be included in any upcoming national infrastructure legislation.

“Ports are economic engines for their communities. They attract inward investment, support wellpaying jobs and are vital to the global competitiveness of the region’s industries,” says Chamber of Marine Commerce President Bruce Burrows. “President Donald Trump put

infrastructure investment at the heart of his election platform. Investing in Great Lakes ports and inland maritime shipping is investing in the future success of America.”

At the Duluth Seaway Port Authority (DSPA), for example, the big port on Lake Superior is in the midst of $24 million in infrastructure capital investment. “The big generator was a $10 million TIGER grant in 2013,” Port Interim Executive Director Kevin Beardsley said. “We got another $4 million in state grants, and put in $4 million of our own money.”

The TIGER grants (Transportation Investment Generating Economic Recovery) are a supplementary discretionary grant program included in the American Recovery and Reinvestment Act of 2009 and are

awarded by the U.S. Department of Transportation. Since the program was first created, $5.1 billion has been awarded for capital investments in surface transportation infrastructure over eight rounds of competitive grants.

Transportation Secretary Elaine Chao noted in soliciting applications for the 2017 round of grants this past September that “TIGER grants will continue to fund innovative projects that will improve the safety of America’s passengers and goods.”

DSPA used its $10 million TIGER grant to rebuild and expand a 28-acre general cargo dock at the Port of Duluth-Superior and connect the site to existing road and rail infrastructure. The project helped transform underutilized Docks C & D, which were in a deficient condition,

into a fully functional intermodal facility to support existing industries and the growth of new commerce throughout the Midwest.

Connecting Port of Duluth to road/rail network The project has helped bolster the economic competitiveness of the region by increasing import and export capacity at the Port, while helping to promote increased U.S. exports via the Great Lakes and St. Lawrence Seaway. By connecting the Port of Duluth to the nation’s highway and rail network, the project will facilitate more environmentally sustainable freight transportation.

The refurbishment of Docks C & D paved the way for the port to kick off Duluth Cargo Connect, a partnership between the Duluth Superior Port Authority and Lake Superior Warehousing, working in conjunction with CN’s rail network in the region, helping to open up a new logistics supply chain and growth opportunities for the port’s partners and shippers in the region.

Minnesota is also one of two Great Lakes states that operate a state port assistance program. The Washington, D.C.-based American Great Lakes Port Association (AGLPA) notes that state programs can be “a critical source of grant assistance to rebuild dock walls, provide dredge material disposal, and redevelop waterfront facilities.” AGLPA points out that other states should consider emulating Wisconsin’s Harbor Assistance Program, which since its inception in 1979 has invested more than $110 million in the state’s Great Lakes and Mississippi River ports.

FASTLANE award program

30 30

EXPANDED GENERAL CARGO DOCK AT PORT OF DULUTH-SUPERIOR

Another U.S. Department of Transportation program used to encourage infrastructure projects is the FASTLANE small project

award program. The Fostering Advancements in Shipping and Transportation for the Long-term Achievement of National Efficiencies Discretionary Grant program is part of the 2015 federal legislation Fixing America’s Surface Transportation (FAST) Act. Now in its second fiscal year, the program is already attracting interest among U.S. Great Lakes port directors. In 2017, the Port of Indiana-Burns Harbor was awarded a $9.85 million FASTLANE grant for enhanced intermodal facilities with rail and truck marshaling yards at the Lake Michigan port. The FASTLANE grant will cover half of the $19.7 million project. The port expansion will include the construction of a new 2.3-acre cargo terminal with multimodal connections for handling cargo transfers between ships, barges, rail cars and trucks.

The port will also add 4.4 miles to the existing 14-mile rail network and build two new railyards for storage of 165 rail cars.

Rich Cooper, Ports of Indiana CEO, is a big fan of leveraging federal and state grants for infrastructure projects.

The statewide port commission, which also operates two ports on the Ohio River in southern Indiana, was a 2015 recipient of a TIGER grant of $10 million for Truck-to-Rail and Rail-to-Water Improvements at the Port of Indiana-Jeffersonville.

“W ith these investments, companies using water to move cargo will have new options for their inbound raw materials, outbound finished products and transferring shipments between ships and barges, rail cars and trucks,” Cooper said.

Cleveland and Chicago port priorities William D. Friedman, president and chief executive officer of the Cleveland-Cuyahoga County Port Authority, agrees that upgrading infrastructure can pay dividends in the long term. “We want to make

sure that the infrastructure is good,” he said. “We’ve spent a lot of money as the local sponsor for dredge spoils disposal.” Friedman added the port “needs to make some good-sized investments at its bulk cargo facility.”

Part of that project includes $8 million worth of dock remediation.

“We were able to re-purpose an older earmark to free up some federal money,” Friedman said. “We worked through the Ohio Department of Transportation (ODOT) to get that done.” The port also received federal money for two new Liebherr Mobile Cranes, two container handling reach stackers and a new transit shed for transloading. On tap at the port is a gate upgrade at the general cargo dock. “We continue to handle more containers and a lot more trucks,” Friedman indicated.

At the Illinois International Port District (IIPD), a recently passed piece of state legislation allowed the Chicago port to change its debtequity position. In the process, the legislature erased nearly $15 million of debt that had been on the port books for years.

“The bill didn’t give me $15 million,” said Clayton Harris III, IIPD’s President and CEO. “It gave me an eraser. The probability of achieving our goals is increased. We’re moving from possibility to probability.”

Improving infrastructure is a big part of the planning process the Port District is undergoing at Harris’ direction. “When we publish our fiveyear plan,” he said, “it’s a roadmap for our 10-year and 20-year plans.”

Utilizing $2.3 million in grant funding, the Port District is re-doing Butler Drive at Lake Calumet, the main thoroughfare to the port and the heart of multi-modal transportation in Chicago. The $15-$18 million project will eventually involve an upgrade of rail networks, transit sheds and the dock wall serving the port. “It’s an example of what we can do in the future,” Harris said. n

31

Community Outreach

Community Outreach

PORT OF

Good communications make good neighbours

WINDSOR

PORTS INNOVATE TO REACH OUT TO COMMUNITIES

T

BY BRENT FREDERICK

If there is one thing that all ports have in common, it is the need to convince local communities that the marine sector’s priorities can benefit all citizens.

Ports have been coming up with innovative ways to get closer to their neighbours and fulfil their roles as good corporate citizens.

PORT OF

TORONTO

I PORT OF

MONTREAL

I

n Montreal, the Montreal Port Authority (MPA) is connecting with the community in numerous ways. It opened a Port Centre – the first interpretation centre in Quebec dedicated to port activity – in its new cruise terminal last July. Visitors can learn about port and shipping activities past and present through a free exhibition entitled History of Ships. It features six ship models, a large mural of visual and video information that illustrates the history of goods transportation and covers themes from port development to jobs, and a second mural on passenger transportation and the new cruise terminal.

The exhibition attracted some 25,000 visitors in its first five months and has been extended.

The MPA will introduce new themes for the centre moving forward. “We want to 32

create a lively, educational and dynamic Port Centre that is interactive and gets the community to participate,” said Sophie Roux, the MPA’s Vice-President of Public Affairs. “We are committed to having Montrealers make the port their own and be proud to call themselves citizens of a port city.”

Also at the cruise terminal and Alexandra Pier on which it sits, the MPA is developing a green rooftop terrace and several other areas for the public.

One end of the pier has been lowered toward the St. Lawrence River to create an open space that brings people closer to the water. The MPA will hold a large celebration in the spring that will allow the community to discover these new spaces.

The MPA has a Community Investment Policy supporting initiatives that contribute

to the well-being of communities that border port operations. It promotes socioeconomic development, training related to marine careers, and a healthy environment. The MPA also has created a Good Neighbour Committee, comprising residents and representatives of local organizations, and holds open houses to present its projects to the community, most recently for its restoration of Alexandra Pier and the cruise terminal and its project to develop a container terminal in Contrecoeur.

“We see the community as a stakeholder in our operations, just like our business partners,” Roux said.

“We are strengthening our presence and our ties with our neighbouring communities while supporting initiatives that contribute to their well-being.” n

n Toronto, an attraction that has become a huge hit with the community is PortsToronto’s annual Sail-In Cinema.

This free three-night event, held every August, draws thousands of people to Toronto Harbour, which is transformed into the city’s largest outdoor movie theatre. Family-friendly movies are shown under open skies on a four-storey two-sided screen anchored to a floating barge. People can watch the movies from land on Sugar Beach or by boat on Lake Ontario.

The idea for Sail-In Cinema was conceived eight years ago as a way to celebrate PortsToronto’s 100-year anniversary. “It seemed fitting to hold an event that would encourage the community to come to the waterfront – by foot or by boat – and enjoy a movie under the stars,” said Deborah Wilson, PortsToronto’s Vice-President of Communications and Public Affairs.

A few thousand people and a handful of boats participated in 2011. Those numbers have increased to more than 10,000 people enjoying the event from land and 100 boats over the course of the weekend.

“The community’s enthusiasm for the event continues to grow each year with a record number of public votes cast to select the movies in 2017 and

an audience that continues to grow in numbers each year,” Wilson said.

“More than half of Sail-In Cinema’s attendees have cited the movie festival as one of the best free summer events in Toronto. It is regularly featured as a ‘Don’t-Miss Event’ in all of the summer program guides, and we love that the city and community has embraced the experience.”

Sail-In Cinema has won numerous awards, including accolades from the International Association of Business Communicators in the special events category in 2016.

PortsToronto strongly believes in being an active participant in and strong supporter of the community in which it operates. It supports communities, youth and families along the waterfront under three investment pillars: sports and recreation; arts and culture; and youth education. It provides more than $500,000 in donations, sponsorships and in-kind contributions to local initiatives and events each year.

“These initiatives and events share a common goal of promoting healthier, greener and empowered communities,” Wilson said. PortsToronto supported more than 26 different organizations in 2017. n

he Windsor Port Authority (WPA) developed the WPA Outreach Campaign with Olde Sandwich Towne, which won an Award of Merit in the 2017 Association of American Port Authorities’ Communications Competition.

As part of the campaign, the WPA reached out to the local community for input to determine which specific environmental, community and sponsorship activities it should undertake, said David Cree, the WPA’s President and CEO. Over the past 10 years, the WPA has created more than 1,200 linear feet of new fish habitat in conjunction with two tenants. It redeveloped last fall a derelict port authority dock into an area that features greenspace, a public fishing pier and fish habitat.

Following discussions with the committee representing the community, it has also purchased vacant land adjacent to the WPA head office that will be developed as an “outdoor museum,” Cree said. It will include green space, seating areas, walking paths, artwork, numerous storyboards detailing the history of Olde Sandwich Towne and the Port of Windsor, and other attractions.

There will be significant public input in the project’s design, Cree said.

“We are pleased to be able to develop these ‘people places’ for the public and seem to be hitting the right notes with the community,” Cree said.

The WPA also supports university and college scholarships as well as numerous community initiatives including the Sandwich Teen Action Group, which offers a safe haven for community teenagers, the Olde Sandwich Towne Festival every September, a local food bank and an annual food drive.

“Integrating the community is essential for the continued viability and sustainability of the port,” Cree said. “Our initiatives are generating significant community awareness and better appreciation for the WPA and port operations.” n 33

Community Outreach

Community Outreach

PORT OF

Good communications make good neighbours

WINDSOR

PORTS INNOVATE TO REACH OUT TO COMMUNITIES

T

BY BRENT FREDERICK

If there is one thing that all ports have in common, it is the need to convince local communities that the marine sector’s priorities can benefit all citizens.

Ports have been coming up with innovative ways to get closer to their neighbours and fulfil their roles as good corporate citizens.

PORT OF

TORONTO

I PORT OF

MONTREAL

I

n Montreal, the Montreal Port Authority (MPA) is connecting with the community in numerous ways. It opened a Port Centre – the first interpretation centre in Quebec dedicated to port activity – in its new cruise terminal last July. Visitors can learn about port and shipping activities past and present through a free exhibition entitled History of Ships. It features six ship models, a large mural of visual and video information that illustrates the history of goods transportation and covers themes from port development to jobs, and a second mural on passenger transportation and the new cruise terminal.

The exhibition attracted some 25,000 visitors in its first five months and has been extended.

The MPA will introduce new themes for the centre moving forward. “We want to 32

create a lively, educational and dynamic Port Centre that is interactive and gets the community to participate,” said Sophie Roux, the MPA’s Vice-President of Public Affairs. “We are committed to having Montrealers make the port their own and be proud to call themselves citizens of a port city.”

Also at the cruise terminal and Alexandra Pier on which it sits, the MPA is developing a green rooftop terrace and several other areas for the public.

One end of the pier has been lowered toward the St. Lawrence River to create an open space that brings people closer to the water. The MPA will hold a large celebration in the spring that will allow the community to discover these new spaces.

The MPA has a Community Investment Policy supporting initiatives that contribute

to the well-being of communities that border port operations. It promotes socioeconomic development, training related to marine careers, and a healthy environment. The MPA also has created a Good Neighbour Committee, comprising residents and representatives of local organizations, and holds open houses to present its projects to the community, most recently for its restoration of Alexandra Pier and the cruise terminal and its project to develop a container terminal in Contrecoeur.

“We see the community as a stakeholder in our operations, just like our business partners,” Roux said.

“We are strengthening our presence and our ties with our neighbouring communities while supporting initiatives that contribute to their well-being.” n

n Toronto, an attraction that has become a huge hit with the community is PortsToronto’s annual Sail-In Cinema.

This free three-night event, held every August, draws thousands of people to Toronto Harbour, which is transformed into the city’s largest outdoor movie theatre. Family-friendly movies are shown under open skies on a four-storey two-sided screen anchored to a floating barge. People can watch the movies from land on Sugar Beach or by boat on Lake Ontario.

The idea for Sail-In Cinema was conceived eight years ago as a way to celebrate PortsToronto’s 100-year anniversary. “It seemed fitting to hold an event that would encourage the community to come to the waterfront – by foot or by boat – and enjoy a movie under the stars,” said Deborah Wilson, PortsToronto’s Vice-President of Communications and Public Affairs.

A few thousand people and a handful of boats participated in 2011. Those numbers have increased to more than 10,000 people enjoying the event from land and 100 boats over the course of the weekend.

“The community’s enthusiasm for the event continues to grow each year with a record number of public votes cast to select the movies in 2017 and

an audience that continues to grow in numbers each year,” Wilson said.

“More than half of Sail-In Cinema’s attendees have cited the movie festival as one of the best free summer events in Toronto. It is regularly featured as a ‘Don’t-Miss Event’ in all of the summer program guides, and we love that the city and community has embraced the experience.”

Sail-In Cinema has won numerous awards, including accolades from the International Association of Business Communicators in the special events category in 2016.

PortsToronto strongly believes in being an active participant in and strong supporter of the community in which it operates. It supports communities, youth and families along the waterfront under three investment pillars: sports and recreation; arts and culture; and youth education. It provides more than $500,000 in donations, sponsorships and in-kind contributions to local initiatives and events each year.

“These initiatives and events share a common goal of promoting healthier, greener and empowered communities,” Wilson said. PortsToronto supported more than 26 different organizations in 2017. n

he Windsor Port Authority (WPA) developed the WPA Outreach Campaign with Olde Sandwich Towne, which won an Award of Merit in the 2017 Association of American Port Authorities’ Communications Competition.

As part of the campaign, the WPA reached out to the local community for input to determine which specific environmental, community and sponsorship activities it should undertake, said David Cree, the WPA’s President and CEO. Over the past 10 years, the WPA has created more than 1,200 linear feet of new fish habitat in conjunction with two tenants. It redeveloped last fall a derelict port authority dock into an area that features greenspace, a public fishing pier and fish habitat.

Following discussions with the committee representing the community, it has also purchased vacant land adjacent to the WPA head office that will be developed as an “outdoor museum,” Cree said. It will include green space, seating areas, walking paths, artwork, numerous storyboards detailing the history of Olde Sandwich Towne and the Port of Windsor, and other attractions.

There will be significant public input in the project’s design, Cree said.

“We are pleased to be able to develop these ‘people places’ for the public and seem to be hitting the right notes with the community,” Cree said.

The WPA also supports university and college scholarships as well as numerous community initiatives including the Sandwich Teen Action Group, which offers a safe haven for community teenagers, the Olde Sandwich Towne Festival every September, a local food bank and an annual food drive.

“Integrating the community is essential for the continued viability and sustainability of the port,” Cree said. “Our initiatives are generating significant community awareness and better appreciation for the WPA and port operations.” n 33

Community Outreach

GREAT LAKES-ST. LAWRENCE OUTLOOK:

CYCLICAL TAILWINDS BLOWING BUT WHAT ABOUT NAFTA? BMO Senior Economist Robert Kavcic gives his forecast for the region’s economy and the major sectors supported by marine shipping.

PORT OF

HAMILTON PORT OF

DETROIT

I

n Detroit, the Detroit/Wayne County Port Authority (DWCPA) has launched a unique initiative to tell the community about the importance of the maritime industry and the port. It unveiled last May the Portal View, a riverfront educational resource housed in a repurposed shipping container. It features a touchscreen display that allows visitors to track in real time the location of vessels on the Great Lakes as well as educational boards and maritime artifacts.

“It is extremely important to educate the public here,” said Kyle Burleson, the DWCPA’s Interim Director. “Detroit has been the Motor City since the time of Henry Ford, but before that, Detroit was a huge shipping town, and it still is. That said, one of the biggest reasons we put together the Portal View was to help educate people that the ships they see on the river actually stop in Detroit, and that they’re not just passing through.”

The Portal View is open every day in spring, summer and fall from dawn till dusk. Burleson said it has attracted a lot of attention from the general public, including school groups that come to the waterfront for boat trips and other events. “Everyone who has been in the Portal View has learned something, which is the best thing we can offer to the community,” he said.

To highlight the port’s goals, initiatives and desire for community involvement, the DWCPA held a community forum last October. Some 60 people – businesspeople, community leaders and representatives of various sectors – attended. A wide array of issues were discussed, including legislative challenges and the DWCPA’s efforts to fix them, as well as the port’s economic impact on the region.

Attendees spoke of an overwhelming need for jobs and educational opportunities. “I discussed some of the things DWCPA is doing in this regard, specifically a sponsorship program we started that helps pay the start-up costs for students attending the Seafarer’s Academy in Piney Point, Maryland,” Burleson said. “People were very interested in this as well as educational opportunities at the Great Lakes Maritime Academy in Traverse City, Michigan. We hope to keep this conversation going with a few community forums throughout the year.” n 34

E

lsewhere on the Great Lakes, in Hamilton, the Hamilton Port Authority (HPA) has built a publicly accessible lookout that offers the community a new window onto the day-to-day life of the Port of Hamilton’s working waterfront.

The idea for the viewing platform, located at Pier 15, emerged from discussions the HPA had with the local community, said Larissa Fenn, the HPA’s Director of Public Affairs.

The lookout offers views of the ongoing Randle Reef environmental remediation project, the west dockwall at Stelco, drydock activities, and vessel activity on the harbour. It is a way for the HPA to build awareness of Hamilton’s ongoing role as a port city, Fenn said. “It provides an interesting perspective of the port and offers something different to see every week while addressing a desire for public interface with the port.”

The HPA’s own team designed and built the platform. The port authority will go back to the community in 2018 to discuss ways to make the lookout an even more inviting, safe and informative space.

The HPA also provides donations, sponsorships and in-kind contributions to support community, educational, environmental and marine-related initiatives and activities.

In December, it partnered with Mohawk College in Hamilton to launch a new post-graduate certificate in supply chain management. The first wave of students to enrol in the eight-month program began classes in January. The HPA is providing a $20,000 tuition-support fund that will directly assist local students participating in the program in the coming years. It is also working with companies in the port to create coop and internships placements to complement the program. The port authority has also made a $10,000 contribution to a mobile classroom for CitySchool by Mohawk, which offers a free on-site introduction to welding, an in-demand skill among Hamilton’s industrial employers. n

T

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 economy enters 2018 in very healthy shape, with Ontario and Quebec boasting some of the strongest macroeconomic conditions in at least a decade, while states in the region are expected to pick up alongside a broader increase in U.S. momentum. Overall, solid consumer spending activity and improving business investment are supportive, with fiscal stimulus expected to add to growth south of the border. Against that backdrop, U.S. economic growth is forecast to accelerate to 2.6 per cent this year, up from a 2.3 per cent pace in 2017.

Canada is expected to moderate to 2.2 per cent after a 3.0 per cent surge in 2017, with Central Canada cooling somewhat, but maintaining abovepotential growth. Most U.S. states in the Great Lakes-St. Lawrence Region are expected to strengthen this year, which bodes well for overall growth in the region and its impact on the broader North American economy.

AUTO SECTOR DEMAND TAPERS, BUT BROADER FACTORY ACTIVITY UP The auto sector is in strong shape, though North American car and truck production faded for the first time this cycle in 2017, to 17.2 million units. Part of this reflects a sector that is largely running at capacity, while demand tapers off in later-cycle fashion—U.S. sales dipped for the first time since 2009 last year. And, the region continues to grapple with new investment directed toward the Southern U.S. and Mexico.

Broader factory activity has improved, with those tied to agriculture and energy rebounding after a multi-year retrenchment in those sectors. Indeed,

regional manufacturing surveys in Chicago and Milwaukee show cycle-high readings for new orders heading into 2018, suggesting that the momentum will be sustained.

MORE JOBS, HIGHER WAGES For consumers across the region, a strengthening labour market will remain supportive. Note that Quebec’s jobless rate sat at a record low at the turn of the year, while Ontario is not far off that mark. A major challenge on this front is demographics, with population growth in some areas of the region fading—Illinois for example, is seeing persistent net outflows to faster-growing states in the West and South. Ontario, however, has seen growth accelerate alongside higher international immigration targets and provincial inflows from weaker regions of Canada. Labour costs are also in focus as the Midwest factory sector seeks to remain competitive, while minimum wages have risen sharply in Ontario.

NAFTA UNCERTAINTY BIGGEST RISK While the cyclical backdrop is unquestionably solid, uncertainty over NAFTA is the most significant risk for 2018 given the deeply integrated nature of cross-border activity in the region. Indeed, the Great Lakes-St.

THE BOTTOM LINE: THE GREAT LAKES-ST. LAWRENCE REGION IS ENJOYING STRONG ECONOMIC CONDITIONS, WHICH ARE LARGELY EXPECTED TO HOLD TRUE IN 2018. TO BE SURE, SOME LONGERTERM CHALLENGES REMAIN, AND ALL EYES ARE FOCUSED ON HOW TRADE NEGOTIATIONS PLAY OUT.

Lawrence Region is likely where a major trade shock would hit hardest, with the region’s states the origin of roughly a quarter of total U.S. merchandise exports, while Ontario and Quebec account for about 60 per cent of Canadian shipments. Ontario looks like the jurisdiction most at risk from a disruption to NAFTA, with nearly 83 per cent of shipments flowing south of the border. Because the province is relatively export-intensive to begin with, that leaves 26 per cent of GDP tied to U.S. exports, the highest in North America. Meantime, the average share of exports to NAFTA partners among states in the region is a modest 3.5 per cent of GDP, with Michigan topping the list at 7.3 per cent —that state carries the highest exposure in America thanks to its reliance on autos. n

REAL GDP (% CHANGE)

2016

2017E

2018F

United States Canada

1.5 1.4

2.3 3.0

2.6 2.2

2.6 1.4 1.0 2.5 1.3 2.1 2.2 0.6 1.1 0.4

2.8 2.9 1.2 2.2 1.6 2.7 2.9 1.9 2.2 1.0

2.4 2.1 1.8 2.3 1.5 2.3 2.9 2.1 2.2 1.9

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

35

Community Outreach

GREAT LAKES-ST. LAWRENCE OUTLOOK:

CYCLICAL TAILWINDS BLOWING BUT WHAT ABOUT NAFTA? BMO Senior Economist Robert Kavcic gives his forecast for the region’s economy and the major sectors supported by marine shipping.

PORT OF

HAMILTON PORT OF

DETROIT

I

n Detroit, the Detroit/Wayne County Port Authority (DWCPA) has launched a unique initiative to tell the community about the importance of the maritime industry and the port. It unveiled last May the Portal View, a riverfront educational resource housed in a repurposed shipping container. It features a touchscreen display that allows visitors to track in real time the location of vessels on the Great Lakes as well as educational boards and maritime artifacts.

“It is extremely important to educate the public here,” said Kyle Burleson, the DWCPA’s Interim Director. “Detroit has been the Motor City since the time of Henry Ford, but before that, Detroit was a huge shipping town, and it still is. That said, one of the biggest reasons we put together the Portal View was to help educate people that the ships they see on the river actually stop in Detroit, and that they’re not just passing through.”

The Portal View is open every day in spring, summer and fall from dawn till dusk. Burleson said it has attracted a lot of attention from the general public, including school groups that come to the waterfront for boat trips and other events. “Everyone who has been in the Portal View has learned something, which is the best thing we can offer to the community,” he said.

To highlight the port’s goals, initiatives and desire for community involvement, the DWCPA held a community forum last October. Some 60 people – businesspeople, community leaders and representatives of various sectors – attended. A wide array of issues were discussed, including legislative challenges and the DWCPA’s efforts to fix them, as well as the port’s economic impact on the region.

Attendees spoke of an overwhelming need for jobs and educational opportunities. “I discussed some of the things DWCPA is doing in this regard, specifically a sponsorship program we started that helps pay the start-up costs for students attending the Seafarer’s Academy in Piney Point, Maryland,” Burleson said. “People were very interested in this as well as educational opportunities at the Great Lakes Maritime Academy in Traverse City, Michigan. We hope to keep this conversation going with a few community forums throughout the year.” n 34

E

lsewhere on the Great Lakes, in Hamilton, the Hamilton Port Authority (HPA) has built a publicly accessible lookout that offers the community a new window onto the day-to-day life of the Port of Hamilton’s working waterfront.

The idea for the viewing platform, located at Pier 15, emerged from discussions the HPA had with the local community, said Larissa Fenn, the HPA’s Director of Public Affairs.

The lookout offers views of the ongoing Randle Reef environmental remediation project, the west dockwall at Stelco, drydock activities, and vessel activity on the harbour. It is a way for the HPA to build awareness of Hamilton’s ongoing role as a port city, Fenn said. “It provides an interesting perspective of the port and offers something different to see every week while addressing a desire for public interface with the port.”

The HPA’s own team designed and built the platform. The port authority will go back to the community in 2018 to discuss ways to make the lookout an even more inviting, safe and informative space.

The HPA also provides donations, sponsorships and in-kind contributions to support community, educational, environmental and marine-related initiatives and activities.

In December, it partnered with Mohawk College in Hamilton to launch a new post-graduate certificate in supply chain management. The first wave of students to enrol in the eight-month program began classes in January. The HPA is providing a $20,000 tuition-support fund that will directly assist local students participating in the program in the coming years. It is also working with companies in the port to create coop and internships placements to complement the program. The port authority has also made a $10,000 contribution to a mobile classroom for CitySchool by Mohawk, which offers a free on-site introduction to welding, an in-demand skill among Hamilton’s industrial employers. n

T

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 economy enters 2018 in very healthy shape, with Ontario and Quebec boasting some of the strongest macroeconomic conditions in at least a decade, while states in the region are expected to pick up alongside a broader increase in U.S. momentum. Overall, solid consumer spending activity and improving business investment are supportive, with fiscal stimulus expected to add to growth south of the border. Against that backdrop, U.S. economic growth is forecast to accelerate to 2.6 per cent this year, up from a 2.3 per cent pace in 2017.

Canada is expected to moderate to 2.2 per cent after a 3.0 per cent surge in 2017, with Central Canada cooling somewhat, but maintaining abovepotential growth. Most U.S. states in the Great Lakes-St. Lawrence Region are expected to strengthen this year, which bodes well for overall growth in the region and its impact on the broader North American economy.

AUTO SECTOR DEMAND TAPERS, BUT BROADER FACTORY ACTIVITY UP The auto sector is in strong shape, though North American car and truck production faded for the first time this cycle in 2017, to 17.2 million units. Part of this reflects a sector that is largely running at capacity, while demand tapers off in later-cycle fashion—U.S. sales dipped for the first time since 2009 last year. And, the region continues to grapple with new investment directed toward the Southern U.S. and Mexico.

Broader factory activity has improved, with those tied to agriculture and energy rebounding after a multi-year retrenchment in those sectors. Indeed,

regional manufacturing surveys in Chicago and Milwaukee show cycle-high readings for new orders heading into 2018, suggesting that the momentum will be sustained.

MORE JOBS, HIGHER WAGES For consumers across the region, a strengthening labour market will remain supportive. Note that Quebec’s jobless rate sat at a record low at the turn of the year, while Ontario is not far off that mark. A major challenge on this front is demographics, with population growth in some areas of the region fading—Illinois for example, is seeing persistent net outflows to faster-growing states in the West and South. Ontario, however, has seen growth accelerate alongside higher international immigration targets and provincial inflows from weaker regions of Canada. Labour costs are also in focus as the Midwest factory sector seeks to remain competitive, while minimum wages have risen sharply in Ontario.

NAFTA UNCERTAINTY BIGGEST RISK While the cyclical backdrop is unquestionably solid, uncertainty over NAFTA is the most significant risk for 2018 given the deeply integrated nature of cross-border activity in the region. Indeed, the Great Lakes-St.

THE BOTTOM LINE: THE GREAT LAKES-ST. LAWRENCE REGION IS ENJOYING STRONG ECONOMIC CONDITIONS, WHICH ARE LARGELY EXPECTED TO HOLD TRUE IN 2018. TO BE SURE, SOME LONGERTERM CHALLENGES REMAIN, AND ALL EYES ARE FOCUSED ON HOW TRADE NEGOTIATIONS PLAY OUT.

Lawrence Region is likely where a major trade shock would hit hardest, with the region’s states the origin of roughly a quarter of total U.S. merchandise exports, while Ontario and Quebec account for about 60 per cent of Canadian shipments. Ontario looks like the jurisdiction most at risk from a disruption to NAFTA, with nearly 83 per cent of shipments flowing south of the border. Because the province is relatively export-intensive to begin with, that leaves 26 per cent of GDP tied to U.S. exports, the highest in North America. Meantime, the average share of exports to NAFTA partners among states in the region is a modest 3.5 per cent of GDP, with Michigan topping the list at 7.3 per cent —that state carries the highest exposure in America thanks to its reliance on autos. n

REAL GDP (% CHANGE)

2016

2017E

2018F

United States Canada

1.5 1.4

2.3 3.0

2.6 2.2

2.6 1.4 1.0 2.5 1.3 2.1 2.2 0.6 1.1 0.4

2.8 2.9 1.2 2.2 1.6 2.7 2.9 1.9 2.2 1.0

2.4 2.1 1.8 2.3 1.5 2.3 2.9 2.1 2.2 1.9

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

35

Look Ahead

Look Ahead

ECONOMIC OUTLOOK: Industry executives in the know give their forecasts for the 2018 shipping season and share their upcoming ventures.

TERENCE BOWLES, PRESIDENT AND CEO, THE ST. LAWRENCE SEAWAY MANAGEMENT CORPORATION The 2017 season ended with 38 million tonnes transiting the St. Lawrence Seaway’s locks, representing an increase of 3 million tonnes (9%) above the previous year’s performance. Robust economic growth brought about strong gains in a number of cargo sectors, including iron ore, breakbulk, and dry bulk.

Economists are calling for continued growth in the year ahead in virtually every sector of the world economy, which grants us reason for optimism. Granted, we face a few uncertainties, including the state of NAFTA negotiations (at the time of this writing). Nevertheless, we believe that pragmatism will prevail and lead to greater trading volumes within the St. Lawrence Seaway.

With Thunder Bay well stocked with grain to start the 2018 season, and expectations that the steel industry will continue to benefit from buoyant auto and construction industries, we are hopeful that Seaway tonnage volume in 2018 will rise once again and proceed to break the 40 million tonne mark. n

36

JULIE LAMBERT, SENIOR DIRECTOR COMMERCIAL CANADA STEAMSHIP LINES

KEVIN BEARDSLEY, INTERIM EXECUTIVE DIRECTOR, DULUTH SEAWAY PORT AUTHORITY

Improving economic conditions throughout 2017 have positively influenced demand for commodities in the Great Lakes.

As we look forward to 2018, many sectors such as iron ore, construction and grain are showing strong signs of improvement, and we hope to see this trend continue. We remain cautious, however, and are working strategically with our customers to manage the changing conditions in a proactive way.

Of note in 2017, our crews and onshore personnel were instrumental in ensuring safe and continued service to our customers throughout a challenging operating season characterized by high water levels, rapid freeze and deteriorating winter conditions. n

Last year—2017—was a great year for the Duluth Seaway Port Authority, for Duluth Cargo Connect and for the Port of DuluthSuperior as a whole. Along with notable business expansions and new service offerings, overall tonnage through the Port was running nearly 20 percent ahead of 2016 heading into December, carried forward by a strong surge in domestic and international shipments of iron ore.

Mother Nature reared her ugly head, however, before Christmas, and weeks of below-zero, frigid temps hampered loadings and stalled momentum here in the Twin Ports and across the Great Lakes.

By all accounts, the manufacturing and steelmaking sectors are looking robust heading into the first half of this new year, which bodes well for the 2018 shipping season to open on an upbeat note—again, with shipments of iron ore and limestone leading the way.

We anticipate a brisker pace this year for the movement of project cargo in/out of the heartland via the Great Lakes-Seaway system. We also expect movements of freight by truck and rail through the new CN Duluth Intermodal Terminal to double first-year projections.

So, all in all, the working waterfront in the Port of Duluth-Superior has set a strong foundation upon which to build in the year ahead. n

TONY VALERI, VP CORPORATE AFFAIRS, ARCELORMITTAL DOFASCO

ROBERT DALLEY, GENERAL MANAGER, PORT OF JOHNSTOWN

ArcelorMittal, the world’s largest steel and mining company, has six business units in Canada, with nearly 9,800 employees.

The company also has a joint venture, Baffinland Iron Mines.

ArcelorMittal Dofasco is based in Hamilton, ON and serves a broad set of markets, including Automotive, Construction & Manufacturing, Tubular, Consumer & Industrial Packaging, and Service Centres. We rely on ships to deliver iron ore and coal for steelmaking at our mills in the Great Lakes region. As well, our mines in Canada and the United States also ship raw materials via the waterways to sister sites and other consumers.

Last year brought several notable achievements for our Canadian business units. Our Tailored Blanks, Steel and Research and Development teams co-engineered the world’s first five-piece-hot-stamped laser-welded door ring and B-pillar with Fiat Chrysler Automobiles US LLC. ArcelorMittal Mining Canada announced a C$500M investment in its facilities in the North Shore region, supported by the Quebec Government’s electricity rebate program. In Hamilton, we kicked off a $112 million Utilities Boiler and Power Generation project. Slated to be in service in 2019, this project will result in about 129,000 Megawatt Hours of annual electricity savings, enough to power 11,000 homes annually.

We see overall Canadian steel demand as holding steady in 2018. We see some market segments, like tubular products for the energy sector, likely to experience more growth, while automotive will likely decline in 2018 as vehicle sales and production start to taper off in Canada. With the global economic demand for steel growing, we expect that demand for key inputs used in steelmaking such as iron ore, coking coal, scrap, and other metals such as zinc and aluminum will also increase. n

The Port of Johnstown recorded an 8.5 per cent increase in cargo over its docks in 2017. This was led by a record year in salt with 575,000 metric tons, an increase of 26 per cent over 2016. Grain cargo by vessel was down by 23 per cent. The majority of this decrease in grain was due to soybean that stayed in storage at the port’s grain elevator and is expected to go out by vessel in the spring when the St. Lawrence Seaway reopens.

Among the highlights in 2017, the port welcomed new breakbulk cargo in the way of steel beams for the construction industry and it is expected that this new cargo will continue into 2018. Overall, total cargo processed at the port, including trucks, rail and vessel was 1.21 million metric tons which was down slightly from 2016’s record year of 1.25 million tons.

The port continued to invest in additional storage in 2017- adding two more 5,000 metric ton steel grain silos and other infrastructure investments totaling over $3 million. The investments over the past five years are now over $50 million and clearly demonstrate the POJ Management Committee and staff’s commitment to improving the facilities and services offered at the port. Having a diversified port available for both domestic and international business with rail, marine and trucking gives businesses a viable alternative to the metro ports which are becoming more congested. n

37

Look Ahead

Look Ahead

ECONOMIC OUTLOOK: Industry executives in the know give their forecasts for the 2018 shipping season and share their upcoming ventures.

TERENCE BOWLES, PRESIDENT AND CEO, THE ST. LAWRENCE SEAWAY MANAGEMENT CORPORATION The 2017 season ended with 38 million tonnes transiting the St. Lawrence Seaway’s locks, representing an increase of 3 million tonnes (9%) above the previous year’s performance. Robust economic growth brought about strong gains in a number of cargo sectors, including iron ore, breakbulk, and dry bulk.

Economists are calling for continued growth in the year ahead in virtually every sector of the world economy, which grants us reason for optimism. Granted, we face a few uncertainties, including the state of NAFTA negotiations (at the time of this writing). Nevertheless, we believe that pragmatism will prevail and lead to greater trading volumes within the St. Lawrence Seaway.

With Thunder Bay well stocked with grain to start the 2018 season, and expectations that the steel industry will continue to benefit from buoyant auto and construction industries, we are hopeful that Seaway tonnage volume in 2018 will rise once again and proceed to break the 40 million tonne mark. n

36

JULIE LAMBERT, SENIOR DIRECTOR COMMERCIAL CANADA STEAMSHIP LINES

KEVIN BEARDSLEY, INTERIM EXECUTIVE DIRECTOR, DULUTH SEAWAY PORT AUTHORITY

Improving economic conditions throughout 2017 have positively influenced demand for commodities in the Great Lakes.

As we look forward to 2018, many sectors such as iron ore, construction and grain are showing strong signs of improvement, and we hope to see this trend continue. We remain cautious, however, and are working strategically with our customers to manage the changing conditions in a proactive way.

Of note in 2017, our crews and onshore personnel were instrumental in ensuring safe and continued service to our customers throughout a challenging operating season characterized by high water levels, rapid freeze and deteriorating winter conditions. n

Last year—2017—was a great year for the Duluth Seaway Port Authority, for Duluth Cargo Connect and for the Port of DuluthSuperior as a whole. Along with notable business expansions and new service offerings, overall tonnage through the Port was running nearly 20 percent ahead of 2016 heading into December, carried forward by a strong surge in domestic and international shipments of iron ore.

Mother Nature reared her ugly head, however, before Christmas, and weeks of below-zero, frigid temps hampered loadings and stalled momentum here in the Twin Ports and across the Great Lakes.

By all accounts, the manufacturing and steelmaking sectors are looking robust heading into the first half of this new year, which bodes well for the 2018 shipping season to open on an upbeat note—again, with shipments of iron ore and limestone leading the way.

We anticipate a brisker pace this year for the movement of project cargo in/out of the heartland via the Great Lakes-Seaway system. We also expect movements of freight by truck and rail through the new CN Duluth Intermodal Terminal to double first-year projections.

So, all in all, the working waterfront in the Port of Duluth-Superior has set a strong foundation upon which to build in the year ahead. n

TONY VALERI, VP CORPORATE AFFAIRS, ARCELORMITTAL DOFASCO

ROBERT DALLEY, GENERAL MANAGER, PORT OF JOHNSTOWN

ArcelorMittal, the world’s largest steel and mining company, has six business units in Canada, with nearly 9,800 employees.

The company also has a joint venture, Baffinland Iron Mines.

ArcelorMittal Dofasco is based in Hamilton, ON and serves a broad set of markets, including Automotive, Construction & Manufacturing, Tubular, Consumer & Industrial Packaging, and Service Centres. We rely on ships to deliver iron ore and coal for steelmaking at our mills in the Great Lakes region. As well, our mines in Canada and the United States also ship raw materials via the waterways to sister sites and other consumers.

Last year brought several notable achievements for our Canadian business units. Our Tailored Blanks, Steel and Research and Development teams co-engineered the world’s first five-piece-hot-stamped laser-welded door ring and B-pillar with Fiat Chrysler Automobiles US LLC. ArcelorMittal Mining Canada announced a C$500M investment in its facilities in the North Shore region, supported by the Quebec Government’s electricity rebate program. In Hamilton, we kicked off a $112 million Utilities Boiler and Power Generation project. Slated to be in service in 2019, this project will result in about 129,000 Megawatt Hours of annual electricity savings, enough to power 11,000 homes annually.

We see overall Canadian steel demand as holding steady in 2018. We see some market segments, like tubular products for the energy sector, likely to experience more growth, while automotive will likely decline in 2018 as vehicle sales and production start to taper off in Canada. With the global economic demand for steel growing, we expect that demand for key inputs used in steelmaking such as iron ore, coking coal, scrap, and other metals such as zinc and aluminum will also increase. n

The Port of Johnstown recorded an 8.5 per cent increase in cargo over its docks in 2017. This was led by a record year in salt with 575,000 metric tons, an increase of 26 per cent over 2016. Grain cargo by vessel was down by 23 per cent. The majority of this decrease in grain was due to soybean that stayed in storage at the port’s grain elevator and is expected to go out by vessel in the spring when the St. Lawrence Seaway reopens.

Among the highlights in 2017, the port welcomed new breakbulk cargo in the way of steel beams for the construction industry and it is expected that this new cargo will continue into 2018. Overall, total cargo processed at the port, including trucks, rail and vessel was 1.21 million metric tons which was down slightly from 2016’s record year of 1.25 million tons.

The port continued to invest in additional storage in 2017- adding two more 5,000 metric ton steel grain silos and other infrastructure investments totaling over $3 million. The investments over the past five years are now over $50 million and clearly demonstrate the POJ Management Committee and staff’s commitment to improving the facilities and services offered at the port. Having a diversified port available for both domestic and international business with rail, marine and trucking gives businesses a viable alternative to the metro ports which are becoming more congested. n

37

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PARTICIPANTS PARTNERS SUPPORTERS ASSOCIATIONS Total

34 23 19 7 83

118 77 66 23 284

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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?

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Page 27

Delivering More Rand Logistics, Inc. is a leading provider of marine bulk freight shipping and logistics services throughout the Great Lakes region. Through our fleet of fourteen U.S. and Canadian flagged vessels and our team of dedicated professionals, we provide unique and comprehensive supply chain solutions to the marketplace. We take pride in our world class safety record, exemplary maritime and technical expertise, and the unmatched efficiency and flexibility of our operations. We are the only carrier that offers significant domestic port-to-port services in both Canada and the U.S. on the Great Lakes, and due to the versatile and diverse makeup of our fleet, the only carrier that can access every commercial port in the region. Contact us for more information about how Rand Logistics and our subsidiary companies can help you with your supply chain needs.

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RAND LOGISTICS INC.

38

Rand Logistics, Inc. is a leading provider of marine bulk freight shipping and logistics services throughout the Great Lakes region. Through our fleet of fourteen U.S. and Canadian flagged vessels and our team of dedicated professionals, we provide unique and comprehensive supply chain solutions to the marketplace. We take pride in our world class safety record, exemplary maritime and technical expertise, and the unmatched efficiency and flexibility of our operations. We are the only carrier that offers significant domestic port-to-port services in both Canada and the U.S. on the Great Lakes, and due to the versatile and diverse makeup of our fleet, the only carrier that can access every commercial port in the region. Contact us for more information about how Rand Logistics and our subsidiary companies can help you with your supply chain needs.

ALGOMA CENTRAL CORPORATION

www.randlogisticsinc.com

www.algonet.com

Inside Back Cover

Back cover

Lower Lakes Towing, Ltd. 517 Main Street Port Dover, Ontario, CA N0A 1NO Phone: 519-583-0982

R AND LOGISTICS, INC.

Grand River Navigation Company 1026 Hannah Avenue, Suite D Traverse City, Michigan, USA 49686 Phone: 231-642-4622

Rand Logistics, Inc. 333 Washington Street, Suite 201 Jersey City, New Jersey 07302 www.randlogisticsinc.com

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ADVERTISERS’ INDEX PAVING THE WAY ON THE H20 HWY.

We transform ideas

into innovation.

McAsphalt Marine Transportation Limited (MMTL) specializes in providing marine transportation that goes the extra mile.

We pride ourselves in offering our customers the safest, most environmentally friendly and efficient means of transportation “on time, every time”.

MARITIME TRANSPORTATION OF GENERAL CARGO, PROJECT CARGO, DRY BULK AND LIQUID BULK TURNKEY LIFTING AND HANDLING SERVICES

WE KNOW WHAT POWERS YOU. Sterling Fuels provides a full range of fuels and ExxonMobil lubricants, all of which meet the strictest industry standards. Just like the service we offer, whether by water, land or truck.

Operating two Articulated Tug/Barge (ATB) units, the “Everlast/Norman McLeod” and the “Leo A. McArthur/

info@desgagnes.com desgagnes.com 418 692 1000

John J. Carrick”, on the Great

WINNER

WINDSOR | SARNIA | HAMILTON | HALIFAX

STERLINGFUELS.CA

Lakes, St. Lawrence Seaway

cslships.com

and Eastern Seaboard.

mcasphalt.com

CSL-CANADA STEAMSHIP LINES

GROUPE DESGAGNÉS

MCASPHALT MARINE TRANSPORTATION

3665 Russell St. Windsor, Ontario N9C 1E9 Tel: 519 253 4694 Email: info@sterlingfuels.ca

STERLING FUELS

www.desgagnes.com

www.cslships.com

www.mcasphalt.com

www.sterlingfuels.ca

Inside Front Cover

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SAVE

SAVE

TIME &

MONEY

Eastern Ontario’s Premier Port Tel.: 613.925.4228 www.portofjohnstown.com

generalinfo@portofjohnstown.com @portofjohnstown.com

ENVIRONMENTAL CERTIFICATION PROGRAM FOR THE NORTH AMERICAN MARINE INDUSTRY

PROGRESS SINCE INCEPTION DIRECT ACCESS INTO ALL OF NORTH AMERICA

TRADING IN OVER 50 GLOBAL MARKETS

BULK, BREAK BULK, LIQUID & SPECIAL CARGO

SEAMLESS SUPPLY CHAIN WITH A CONNECTED NETWORK

SIMPLE. COMPETITIVE. CONNECTED. EUROPE TO U.S. MID-WEST

SPECIAL CARGO ICON/BADGE

PORT OF JOHNSTOWN

PORT OF HAMILTON

2007* 2018**

www.HamiltonPorts.ca

www.portofjohnstown.com

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PARTICIPANTS PARTNERS SUPPORTERS ASSOCIATIONS Total

34 23 19 7 83

118 77 66 23 284

Delivering More

*October 2007 **February 2018

2007

U.S. MID-WEST TO NORTH AFRICA

2018

CANADA

USA

SHIP WITH US TODAY OVER A DECADE OF ADVANCING ENVIRONMENTAL EXCELLENCE green-marine.org

THE ST. LAWRENCE SEAWAY MANAGEMENT CORPORATION

GREEN MARINE

www.hwyh2o.com

www.green-marine.org

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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 port-montreal.com/why-montreal

Niche-sized bulk carriers & tug-and-barge units Efficiencies in cargo handling and loading.

LEARN HOW MCKEIL DELIVERS

MCKEIL.COM

MCKEIL MARINE www.mckeil.com PORT OF MONTREAL www.port-montreal.com

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Delivering More Rand Logistics, Inc. is a leading provider of marine bulk freight shipping and logistics services throughout the Great Lakes region. Through our fleet of fourteen U.S. and Canadian flagged vessels and our team of dedicated professionals, we provide unique and comprehensive supply chain solutions to the marketplace. We take pride in our world class safety record, exemplary maritime and technical expertise, and the unmatched efficiency and flexibility of our operations. We are the only carrier that offers significant domestic port-to-port services in both Canada and the U.S. on the Great Lakes, and due to the versatile and diverse makeup of our fleet, the only carrier that can access every commercial port in the region. Contact us for more information about how Rand Logistics and our subsidiary companies can help you with your supply chain needs.

Page 25

Lower Lakes Towing, Ltd. 517 Main Street Port Dover, Ontario, CA N0A 1NO Phone: 519-583-0982

R AND LOGISTICS,

INC.

Grand River Navigation Company 1026 Hannah Avenue, Suite D Traverse City, Michigan, USA 49686 Phone: 231-642-4622

Rand Logistics, Inc. 333 Washington Street, Suite 201 Jersey City, New Jersey 07302 www.randlogisticsinc.com

RAND LOGISTICS INC.

38

Rand Logistics, Inc. is a leading provider of marine bulk freight shipping and logistics services throughout the Great Lakes region. Through our fleet of fourteen U.S. and Canadian flagged vessels and our team of dedicated professionals, we provide unique and comprehensive supply chain solutions to the marketplace. We take pride in our world class safety record, exemplary maritime and technical expertise, and the unmatched efficiency and flexibility of our operations. We are the only carrier that offers significant domestic port-to-port services in both Canada and the U.S. on the Great Lakes, and due to the versatile and diverse makeup of our fleet, the only carrier that can access every commercial port in the region. Contact us for more information about how Rand Logistics and our subsidiary companies can help you with your supply chain needs.

ALGOMA CENTRAL CORPORATION

www.randlogisticsinc.com

www.algonet.com

Inside Back Cover

Back cover

Lower Lakes Towing, Ltd. 517 Main Street Port Dover, Ontario, CA N0A 1NO Phone: 519-583-0982

R AND LOGISTICS, INC.

Grand River Navigation Company 1026 Hannah Avenue, Suite D Traverse City, Michigan, USA 49686 Phone: 231-642-4622

Rand Logistics, Inc. 333 Washington Street, Suite 201 Jersey City, New Jersey 07302 www.randlogisticsinc.com

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