INSIDE: AUSTRALIA’S OIL SPILL RESPONSE
BC SHIPPING NEWS
Volume 3 Issue 10
December 2013 / January 2014
Commercial Marine News for Canada’s West Coast.
Industry Insight Captain Bob Shields, President ITB Marine Group
The Role of the Freight Forwarder
DEC/JAN 13 CP PM# 42161530 DEC 2013 / JAN 2014
Marine Domain Awareness The Foundation of Environmental Navigation
Plus: Will it be this time lucky for Nanaimo fast ferry?
December 2013/January 2014
Volume 3 Issue 10
On the cover: The Island Defender. Photo credit: Carolyn Matt, ITB Marine Group Below: The Island Tenacity. Photo courtesy of Island Ferries.
22 Will it be this time lucky for Nanaimo fast ferry?
10 Industry insight
Of legacies and empires The President of ITB Marine Group reflects on his Dad’s legacy and the creation of an ever-expanding empire that continues to influence the West Coast maritime community.
30 Search and rescue
Foggy stretch puts the CLI in high demand The Canadian Lifeboat Institution shares its report from this past September/ October when a very foggy fisheries opening threatened safety on the Fraser River.
Technology Plastics reaches milestone in tank size 51 BARR The custom fabrication department at BARR Plastics took the company to new lengths — literally.
Innovative ‘green’ biofilter for oily bilgewater Ensolve Biosystems develops low-cost oil water separator system for bilgewater treatment.
D E P A R T M E N T S
F E A T U R E S
Captain Bob Shields
News briefs/industry traffic
A short history of boom boats by Lea Edgar Sue Hanby — Heart of the community by Peter G. Bernard
A rare glimpse into Battle of Trafalgar
Coastal Aboriginal Shipbuilding Alliance (CASA) created; plus We are Shipbuilders campaign launched RAL and ITB collaborate on barges
International shipping Report from Maritime Cyprus by Kaity Arsoniadis-Stein
Marine domain awareness
World spill response
The role of the Freight Forwarder by Robert Parker The foundation of environmental navigation by K.Joseph Spears
Australia’s spill response — Another unique response regime Corporations may be liable for supervisor’s negligence by J.Vander Woude
December 2013/January 2014 BC Shipping News 3
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December 2013/January 2014 Volume 3/Issue 10 Publisher McIvor Communications Inc. President & Editor Jane McIvor Contributing Writers Kaity Arsoniadis-Stein Peter G. Bernard Jason Caplan Ray Dykes Lea Edgar Robert Parker Bob Shields K.Joseph Spears James E. Vander Woude Advertising and Subscriptions Jane McIvor Phone: 604-893-8800 / Email: email@example.com Lesley McIvor (Advertising only) Phone: 604-893-8800 / Email: firstname.lastname@example.org ANNUAL SUBSCRIPTION Canada Three Years $99.95 Cdn* Two Years $69.95 Cdn* One Year $37.50 Cdn* USA One Year $60.00 Cdn Other Countries One Year $75.00 Cdn Single copies Outside of Canada *Canadian rates add 5% GST
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4 BC Shipping News December 2013/January 2014
Photos by Dave Roels, www.daveroels.com
You just can’t argue with crazy
his was just too interesting not to share. The following ‘conversation’ on Twitter demonstrates the fanaticism that comes with discussion of the environment, specifically, the debate over the expansion of coal transport through the Lower Mainland: BC Shipping News (@bcshipping): Interview with Robin Silvester, Pres/ CEO: The definition of leadership: bit.ly/1drfZjG - great insight... ClimateChange Steves (@Harold_ Steves): Leader or dictator? Silvester says in US “Municipal politics...stand in the way of the logical argument” & ignores locals here. @bcshipping: With respect Mr. Steves, PMV “attended or participated in more than 600 events in 2012”. How is that ignoring locals? @Harold_Steves: Propaganda yes. Not one public hearing was held by the Port on expansion of coal, jet fuel, and oil shipping on the Fraser River. Member of:
@bcshipping: Wouldn’t it be up to the applicant to hold the public meeting? PMV’s job is to evaluate the application, not set policy... While I’m amazed that someone involved in municipal politics for over 40 years doesn’t realize the process the port goes through in reviewing applications — a process very similar to that of a city council — the real fun starts when Communities and Coal (@NoUsThermalCoal) picks up on the conversation: @NoUsThermalCoal: Silvester not elected, transparent nor inclusionary & hides behind powers afforded a federal authority. @bcshipping: Actually, Silvester was hired by the PMV board which is appointed by elected officials. @NoUsThermalCoal: So u admit 2 wanting democratic governance, but u clearly don’t understand how that works!
@bcshipping: It sounds like you want to change the system because you don’t agree with decisions. I understand just fine. @NoUsThermalCoal: The system meant 2 b democratic & collaborative. Silvester & @PortMetroVan r just gaming system 4 their advantage. The conversation continues on in the same vein until, finally, tired of trying to decipher what @NoUsThermalCoal is trying to say, I finish off. @bcshipping: Let’s agree to disagree. Seems like PMV governance wasn’t an issue until the anti-coal movement. It would have been nice to have an informed and relevant conversation (albeit 140 characters per shot is pretty limiting) and not be on the end of a vitriolic, paranoid, and fanatical rant but, like my Dad always said, ‘you just can’t argue with crazy’. — Jane McIvor
Thanks to Steve Daigle, Daigle Welding & Marine in Campbell River for this photo of the two patrol boats operated by the Nanaimo Port Authority. On the left is the NPA Eagle, a 32-foot patrol boat; and on the right, the NPA Osprey, a 39-foot EagleCraft pilot/patrol vessel with a top speed of 27 knots.
International Sailor’s Society Canada
Got a great photo? Send it to firstname.lastname@example.org to be included in our feature on ships visiting our local waters.
December 2013/January 2014 BC Shipping News 5
Caldwell & Co. Maritime Law
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Vessel Transfers & Mortgages Insurance Claims General Litigation Arrest & Seizure of Vessels Shipbuilding Contracts
Nanaimo Port’s Markin retires after 26 years of service
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www.thundermarine.com 6 BC Shipping News December 2013/January 2014
n her 26th year of service with Nanaimo Port Authority, Lorraine Markin retires! Lorraine began her career with the Nanaimo Port Authority in October 1997. Hailing from Slocan Park, near Nelson B.C., Lorraine ventured west to start a career on Vancouver Island, settling on Nanaimo as her employment destination. “We moved with a family of two boys in 1987, securing employment in Nanaimo, and I never looked back!” said Markin, Nanaimo Port Authority’s Executive Assistant. “I’ve gained many exceptional contacts throughout my time in Nanaimo and enjoyed working with 35 Directors of the Port Board, City Councillors, Administration personnel, and businesses. Nanaimo’s waterfront changed dramatically in my time here and it was great to see it develop into a world-class destination.” Bernie Dumas, President & CEO, Nanaimo Port Authority, stated: “We will truly miss Lorraine’s expertise and professionalism in our office. She became a genuine friend to her colleagues and many business associates. We all wish her the very best in the next stage of her illustrious career!”
NEWS BRIEFS Steveston Lifeboat steers Seaspan through the fog
service that helped ensure a clear and safe passage. In appreciation of CLI’s work, Seaspan staff made a donation to the
Institution which operates exclusively by donation. For the full story on CLI’s work during the recent spell of fog, please see page 30.
Photo courtesy of the CLI and Seaspan Ferries
he thick fog that covered the Lower Mainland for a couple of weeks in October was a huge headache for vessels trying to navigate the South Coast. Throw into the mix a 24-hour gill net fishing window and an estimated 400 fishing boats setting down nets between Steveston and Mission and it was a “calamity in the making”. “Captains and crews certainly had their work cut out for them, but thanks to the Canadian Lifeboat Institution, a non-profit volunteer organization that regularly patrols the Fraser River, Seaspan Ferries was able to avert what could have been a very ugly situation,” said Peter Pedersen, Seaspan Ferries The Canadian Lifeboat Institution provided assistance to the Seaspan Ferries fleet from their docks at Tilbury and Surrey to Steveston. By sailing ahead of the Seaspan vessels and informing captains as to the precise whereabouts of both the fishing boats and their nets, they provided a valuable
Left to right: Bob McIlwaine, John Horton, and Brian Cook of the CLI; Steve Roth, Peter Pederson and Phil Loewen from Seaspan Ferries.
December 2013/January 2014 BC Shipping News 7
INDUSTRY TRAFFIC Mike Owen inducted into Fraser River Hall of Fame
Photo credit: BC Shipping News
Mike Owen accepts a plaque commemorating his induction into the Fraser River Hall of Fame (with FRDC Chair Stephen Bruyneel).
Add your voice to the...
General Commercial User Group We are: • a non-profit association for indivduals and small to medium-sized businesses who are lease or permit holders within Port Metro Vancouver’s jurisdiction; • an information resource and a member of the PMV nominations committee; • a network for people with common interests; • an advocate for government initiatives and policy. #29-3871 River Road, West Delta B.C. V4K 3N2 www.generalcommercialusergroup.com E: firstname.lastname@example.org 8 BC Shipping News December 2013/January 2014
riends, family, and colleagues came out to pay tribute to Mike Owen of Ladner Reach Properties as he was inducted into the Fraser River Hall of Fame in early November. Mike is the 22nd recipient of the honour awarded by the Fraser River Discovery Centre and was recognized for his tireless efforts, ‘get-er-done’ attitude, and endless contributions toward the stewardship of the Fraser River. Emcee for the evening, Allen Domaas, retired CEO of the Fraser River Port Authority and current director on the board of the FRDC, introduced speakers such as B.C. historian Gordon Gibson, Delta Councillor Bruce MacDonald (who came with a message from Mayor Lois Jackson), B.C. Minister of Environment Mary Polack, and Mike’s brother David — each with their own testament of Mike’s strength of character and influence on family, community, and the Fraser River. For over 40 years, Mike has been involved with numerous projects and organizations, including serving as president of the Ladner Business Association and chair of the Delta Chamber of Commerce. He is a founding member of the Floating Home Association of B.C. as well as the General Commercial User Group, an advocacy organization representing individuals, and small and mediumsized businesses for government initiatives and policies within the Port Metro Vancouver jurisdiction. Mike has been an instrumental figure in many projects aimed at improving aspects of the Fraser River — for example, he was a key figure on the Millennium Trail Committee which developed the walk and bike path stretching from the Riverhouse Restaurant to Deas Island Regional Park. He has also been a strong advocate for dredging projects that provide access to businesses along the river. In recieving the Hall of Fame award, Mike joins an elite list of past inductees that include the likes of Fraser Surrey Docks, Fraser River Pile and Dredge Ltd., Bill Sauder, Lucille Johnstone and the Ladner Family. More photos online at www.bcshippingnews.com. BCSN
NEWS BRIEFS Studies underway at ClassNK Research Institute to address key issues for industry
lassNK Research Institute is currently working on a number of studies that, while relating directly to ship classification, will provide a significant contribution to ensuring the safety of ships and protection of the marine environment. Research projects include: • Research into preventing brittle fractures on ultra-large container ships that could initiate in welds when very thick steel plates are used, particularly in the construction of very large container ships. • Investigation into the structural influences of engine room/deck house arrangements of large container carriers as they grow in size, particularly with respect to hull girder torsionalbending strength. • Research into the effect of hydroelastic response on hull strength as
ship size increases. The aim of this study is to quantity the hydro-elastic effect on hull response regarding ultimate longitudinal strength and fatigue strength. • The development of technical guidelines for very large ore carriers (VLOCs) exceeding 300m in ship length, particularly to provide guidelines for structural strength assessment to ensure safe yet reasonable design. • Research into corrosion caused by water-emulsion fuel, one of the technologies to cope with NOx emission regulations. The purpose of this project is to prepare the technical basis of the rules to prevent corrosion damage caused by water-emulsion fuel. • An investigation into the cause and prevention of shaft damage related
to torsional vibration. • Interference of shaft coupling reamer bolts — when a propeller shaft is pulled out for inspection, “seizure” damage might be found in the reamer bolts of the shaft coupling flange. The purpose of this project is to investigate the proper interference of reamer bolts and prepare a standard solution of the interference to prevent such “seizure” damage. • Fatigue monitoring on hull fatigue strength — this project aims to clarify and solve the technical, operational and practical issues involved with fatigue damage control by use of monitoring technologies and to prepare for the technical services on hull fatigue management system. To find out more about these projects, please visit www.class.or.jp.
December 2013/January 2014 BC Shipping News 9
Of legacies and empires Captain Bob Shields, President, ITB Marine Group
In the case of Island Tug and Barge — or ITB Marine Group as it will soon be known — we learn that son Bob has taken Peter Shields’ legacy and created an ever-expanding empire that continues to influence the West Coast marine industry.
10 BC Shipping News December 2013/January 2014
ingled in with names like McLaren and Allan, you’ll find the name Shields as another that has been integral in shaping the maritime industry in B.C. As the McLarens were instrumental in shipbuilding, and the Allans in naval architecture, the Shields have made their presence best known in the tug and barge industry. In the case of Island Tug and Barge — or ITB Marine Group as it will soon be known — we learn that son Bob has taken Peter Shields’ legacy and created an ever-expanding empire that continues to influence the West Coast marine industry. BCSN: Could you start by telling us how the Shields family got into the marine industry on the B.C. Coast? BS: My father was a civil engineer who got involved in property development in remote locations that needed to be serviced by tug and barge. He found the service unreliable — equipment and material would show up late and/or damaged — and so he went out and bought his own barge in 1964 and by 1966, with three or four barges, he found himself in the tug and barge business and about to build the first of his brand new tugs. One of the things they would do was travel the coast with a little tug and oil barge. He’d fill it up with fuel and send his guys off and tell them not to come back until it was all sold. That’s what got him started in the fuel business — primarily serving logging interests and coastal communities. During the same timeframe, his operations manager overheard a couple of gentlemen talking about the poor service they were getting in their West Coast operations. He went over and introduced himself — turns out it was Imperial Oil and they were looking for someone new to tow their oil barge — and that started what became a 50-year relationship with Imperial Oil. Backing up just a bit — in the late 1950s — my American grandfather had a piece of property on an island in B.C. He and his neighbours wanted telephone service so they would scrounge around for abandoned cables from BC Tel and relocate them. In doing so, they ended up creating an expertise in repairing and deploying submarine cables. This caught the attention of BC Tel who asked them if they would like to service all of BC Tel’s cables. In 1959, that’s what they started doing,
INDUSTRY INSIGHT and BC Hydro came along shortly after that. The submarine cable installation and repair business remains a big part of what we do today. BCSN: At what point did you get involved in the business? BS: I was about 14 — I’d just finished school for the year and was looking forward to another summer with my friends. My dad had other plans however. ‘I don’t think so, Son,’ he said, and threw me onto a tug. That was in late June and I got off just in time to go back to school in the fall. I continued to do that every year. It was actually a great way to spend the summer and by the time I graduated, I could afford to put myself through university. When I finished university (I graduated with a Bachelor of Science in Economics from the University of Victoria), I had so much sea time built up that I went straight into a Marine College and got my Mate’s ticket. After about a year, I had enough sea time to write my Masters. I sailed for about a year with my Masters and, when one of the guys in the office retired, Dad got me to come ashore. That was in 1987. BCSN: That was about the same time your Dad got involved in Seaspan wasn’t it? BS: Yes, it was close. In 1986, my Dad, along with a group of other businessmen in Vancouver, purchased Seaspan from Imasco who was breaking up the assets of Genstar. Dad became very focused on managing Seaspan and needed someone to come in and run this operation which was then called Shields Navigation. Unlike a lot of people who build their own businesses and can’t let go, he stepped right back and left me alone to run things in my own way. One of his favourite sayings was ‘if you’re falling on your face, at least you’re still moving forward’ and he was great at letting me do that. I had the freedom to do what I wanted but still had him in the background to swat me on the head if I got too far off track. I had a lot of ideas on how to change things and had the freedom to do that. We started to look at upgrading our fleet to get more into the bulk oil side of the business and get away from some of the less profitable activities.
Peter and Bob Shields working together, circa 1988.
You really have to be focused if you’re going to be in the business of transporting sensitive cargoes like oil. It’s very demanding and you have to be able to demonstrate not just a solid safety record, but forward-looking initiatives in safety management
You really have to be focused if you’re going to be in the business of transporting sensitive cargoes like oil. It’s very demanding and you have to be able to demonstrate not just a solid safety record, but forward-looking initiatives in safety management — something the big oil companies make a priority. Throughout the 1980s and into the 1990s, we started to grow the bulk oil side of our business. First through towing services under Standard Towing and Shields Navigation, and then, as the oil companies started to move away from owning their own transport assets, we purchased their barges and set up longterm contracts to provide the transportation services under the company name of International Tug and Barge. With ownership of the barges, we were able to grow into areas like South East Alaska and the Puget Sound — it was this U.S. trade that really expanded our market and our capacity considerably. In the mid-1970s, we acquired a log barge in a partnership called Egmont Towing which we operated under the flag of Shields Navigation. Along with the log barge, we acquired a beautiful old tug called the Haida Chieftain but
by the late 1980s found it to be horribly inefficient and so needed a different solution. Instead of just replacing the tug we decided to get a group of mariners together and let them create a new company and build something based on what an employee would want. With the purchase of an ex-Seaspan tug, the Island Warrior, Seatow Marine was created. We rebuilt it, doing one of the first automations of a tug on this coast. We took the manning down from seven to five and that paved the way for a lot more of those to be done here in B.C. Coincidentally to all of this going on, we were looking to start another company and Dad suggested we take over a company name that had been sitting on the shelf at Seaspan called Island Tug and Barge. So we saved the $80 in registration fees and purchased the name from Seaspan for one dollar. That was kind of neat — it was an iconic company, originally based in Victoria and one of the first big towboat companies on the West Coast. We started that one up with a single harbour tug called the Pacific Force which we operated in partnership with Pacific Towing.
December 2013/January 2014 BC Shipping News 11
Bob worked cable installations prior to moving to the office.
I fully expect that, within a few years, there will be a legislated requirement to have an RO in the [Arctic]. We’ll likely pursue that accreditation and set ourselves up as a proper RO.
BCSN: By my count, you’re now up to five companies. BS: Yes and we found very quickly that the administrative work was way too cumbersome. Not only that, but we were losing our brand identification — no one really knew who we were. All of our large bulk oil work was being done through International Tug and Barge which just owned barges and would hire the services of Standard Towing, Seatow, Island Tug and Barge, and Shields Navigation. It got really confusing for people to understand the relationship between all of these companies so we started merging them together. One challenge we ran into was related to the labour makeup — each company had different union representation and
it got pretty messy. At the end of the day, the final merger occurred between Shields Navigation and Island Tug and Barge in 2000 with the Canadian Merchant Service Guild as the sole union representing our workers. That was a changing moment for us. We were now able to focus on our principal business of bulk petroleum transport and strengthen our brand which was all about safety and employee engagement. And of course, throughout it all, we still had our submarine and sub-sea cable work. That’s an area of the company that continues to grow. BCSN: Could you describe the company’s growth in that area? I also understand you’ve started an Arctic operation. BS: Yes, within the last three or four years, we’ve really grown our sub-sea
12 BC Shipping News December 2013/January 2014
business — the submarine cable installation and repairs. We acquired Canpac Divers, as well as the assets from Pirelli Submarine Cables when they shut down their West Coast operation, and we converted one of our older oil barges into a dynamically positioned construction vessel which is used for submarine cable laying and repairs as well as supporting other sub-sea work. Over the last couple of years, we’ve ended up with a number of different business lines, including expansion into the Canadian Arctic. We’re in the process of re-organizing all of these to fall under an umbrella company called ITB Marine Group. We’re moving away from the name Island Tug and Barge — it makes people think we’re on Vancouver Island — and are organizing the business lines into ITB West, ITB North, ITB Subsea, and ITB Fuels. ITB West will cover Island Tug and Barge operations; ITB North is the business line that manages all of our northern operations, anything above 60o latitude; then ITB Subsea is the collection of all our submarine cable business along with Canpac Divers; and ITB Fuels is the fuel reselling and tank farm business. ITB Marine Group deals with those shared services that are common to all of the businesses — our safety management, senior management oversight, accounting, payroll, and any of our maintenance and engineering functions. BCSN: Could you describe your operations in the Arctic? How did that come about? BS: We worked with Northern Transportation Co. Ltd. for a number of years, supporting the work that they were doing. The Island Trader, our ATB (articulated tug barge), did seasonal stints for about five or six seasons, primarily moving petroleum cargoes. We retrofitted another ex-tanker barge into a deck barge, that’s now the ITB Beaufort Sea which supported NTCL’s dry cargo lift. Given that our traditional business on the West Coast is not a largegrowth business, especially if you’re Canadian-flagged and can’t move U.S. cargoes, we were looking for an area to grow and the north was really the only place. We’re not competitive to do
trans-border work because of our high cost so we look for ways to increase our inter-Canadian work. The Arctic is one of those places with a lot of potential growth, both in liquid and mineral resources. We decided we were going to plant the ITB flag up there a few years ago and sent in one of our 25,000-barrel, double-hulled barges — the first into the Western Arctic on a committed basis. We retrofitted our tug, the Cindy Mozel, to ice class and set it up with cold weather equipment. The Arctic has nothing in the way of a committed spill response regime so we retrofitted one of our older tank vessels and outfitted it with skimmers and boom and other pollution response gear and have it based out of Tuktoyaktuk. With this, and all of the other gear we have in the region, we have found ourselves like a mini oil spill response company. And given that there are no permanent salvage capabilities in the north, we also outfitted a container full of cold-water dive suits and salvage equipment and based that in Inuvik so we can deploy our divers and all the equipment to repair a ship or refloat something that’s stranded. BCSN: Do you contract out oil spill response services to other companies just like a Response Organization would? BS: There’s no structured regime in the north right now. An expert panel has been set up to review that but there is no requirement currently to have a relationship with a Response Organization (RO) so there’s no reason for anyone to pay money to have that service available to them. If something happened though, there’s no one else to call — we’re the only ones up there with all of that equipment specifically used for that purpose. I fully expect that, within a few years, there will be a legislated requirement to have an RO in the region. We’ll likely pursue that accreditation and set ourselves up as a proper RO. BCSN: What sort of trends are you seeing in the Arctic? Is there more traffic or an increase in land-based operations using the marine side to get their exports out? BS: Not yet. The first big marineserviced mine shut down last year. It was very promising but it wasn’t a fit for the mining company that owned it December 2013/January 2014 BC Shipping News 13
Peter and Bob at the Island Scout Naming Ceremony, July 12, 2006.
If Canada wants to make use of its northern resource wealth, they will need to get on with it and produce some rules, put in the hardware, and develop the region into a viable shipping destination.
so they closed it down. It’ll come back again but the majority of mines are still shipping out through ice roads or, for some, by lake and inland waterways and then by rail. Eventually, they’ll be back up into the ocean environment so we are investing in the area. We recently bought Horizon Marine’s assets and we’ve leased a number of their shore facilities. We have a base in Tuktoyaktuk, an office and terminal in Inuvik, and a leased terminal in Hay River so we’ve got the Mackenzie River, the Beaufort Sea, and the western Arctic covered. The purchase of Horizon Marine’s assets included a number of river tugs and river barges and we added four new double-hulled oil and deck cargo barges that are capable of operating in both the ocean and river (see page 28 for details). ITB North has gone from really nothing to quite a big organization. BCSN: How long do you think it will be before Arctic activities start really taking off? BS: It depends on who you ask. The northern shipping route on the Russian side is open now and it’s by far the better route — it’s a straight passage with
deep water and no little islands to navigate around. The Russians have made it the law that you have to use their icebreakers if you want to use their route. They’ve got a huge fleet of both conventional and nuclear, very high-class icebreakers and they’re very organized. In contrast, on the Canadian side — the Northwest Passage — you’ve got a lot of areas with shallow water; areas that are yet to be charted and a whole cluster of islands with narrow passages. In addition to that, the Canadian Northwest Passage is one of the last places on earth with multi-year ice — it’s like granite. Long before we see an ice-free Passage in Canada, the polar ice cap is going to be clear, and once that’s clear, why would you go through the Canadian side when you can just go right over the top in a straight line in deep water. So, will the Northwest Passage be a longterm shipping route? No, I don’t think so. I think there will be ships that use it periodically in the summer, but not as a regular shipping route. Now, will Canada’s Arctic be a destination for resource development? Yes. Some of Canada’s northern communities will develop as ports and will
14 BC Shipping News December 2013/January 2014
be used to export Canada’s resources. Russia has been operating in their Arctic region for decades and have a huge commitment to populating their northern regions to develop resource and mineral extraction. Companies like Norilsk Nickel have a fleet of very high-class icebreaking cargo ships that operate autonomously through the region and that’s just one example of many that are working in northern Russia. Canada is just starting to think about it. If Canada wants to make use of its northern resource wealth, they will need to get on with it and produce some rules, put in the hardware, and develop the region into a viable shipping destination. BCSN: What are some of the challenges you have operating in the Arctic? For example, is it hard to get experienced labour? BS: A lot of the crew we have gained their experience in the 1970s and 1980s and there hasn’t been a lot of opportunity in the last 30 years to get that experience. Those guys are getting close to retirement and we do have many young guys coming in that are taking their place. There’s enough labour today to service our current operations but if there was a huge growth spurt, we’d be scrambling. There are other challenges: There’s the ice and the obvious challenges with that; there’s the cold-weather environment and all kinds of issues related to introducing equipment and humans into those conditions; the weather itself can get pretty nasty with horrific winds that come up without warning — the weather forecasting that’s available in the more temperate regions is just not there for the Arctic; there’s poor visibility; no landmarks; very limited satellite availability; and no reliable charting so a lot of the time you’re running on local knowledge. From a business standpoint, you have a very limited season and a lot to do within that season so you have high costs and a very short period of time to recoup those costs. Politics is another challenge — there are a lot of regulations in place that are simply not practical to apply in the Arctic environment. You need different solutions. BCSN: Are you expecting a lot of regulations to come out of the federal
INDUSTRY INSIGHT government’s review of the spill response regime north of 60o? BS: I suspect that’s going to happen. It’s unfortunate that what will likely result will be a political answer to a big noise made by a small number of people. The tanker industry is not just one of the safest shipping modes, but is by far and away one of the safest industries in the world. You can’t find a safer ship than a tanker, and that has principally been achieved by internal regulation by the shipping companies and the oil companies. For me, I see a lot of effort being put into a problem that doesn’t exist when there are a lot of other areas needing attention that aren’t getting it. The only thing for certain is that whatever changes are implemented, it’s going to be very expensive and someone is going to have to pay. Theoretically, it’s the consumer at the end of the line that ultimately pays and they need to realize they can’t have it both ways. Unfortunately, I think that’s where we get ourselves into trouble. There isn’t a good understanding in the general public about what’s really being done in shipping to run a safe, efficient and non-polluting business. On top of
that, you might find people unwilling to work on the ships because if something goes wrong, our society wants to throw them in jail. In Canada, there is a section of the Migratory Bird Act that assigns a criminal penalty together with an automatic guilty conviction. In the industry, this is called a strict liability offence for which there is normally a due diligence defence, but in this case, it carries a criminal penalty and no due diligence defence. As much as I hate to say it, I think people would be crazy to seek a seafaring career under these circumstances. BCSN: Let’s look at other government regulations — do you have any insights into the availability of fuel that meets the sulphur content required for Emission Control Areas? BS: That’s a tough one. Our company uses marine gas oil, (diesel fuel) which meets the requirement for sulphur so it’s not an issue for us. The availability of low sulphur heavy fuel oil is not coming on line the way it was predicted by the regulators — they felt supply would follow demand and it hasn’t. Whether it will or not, I’m not sure. There’s a lot of talk about refiners putting in
de-sulphuring plants but bunker fuel is normally a low-margin residual product. To put extra cost into it will require recouping those costs so the price of bunker will inevitably go up. BCSN: What do you think will happen? BS: I would like to think that they’ll keep on pushing for a higher environmental standard but find a more practical solution to achieving it. In the end, it will ultimately mean an increase in shipping costs which the consumer will pay through higher prices for goods and services. BCSN: What about alternative fuels, like LNG? BS: Liquid natural gas is only practical in certain ships. I think it has certain applications where it’s a good alternative but it isn’t for every ship — it’s not practical for smaller vessels because of the cryogenic tanks required. They need constant monitoring and they’re huge and can’t fit on smaller vessels. Having said that, I hear that Westport Innovations and Robert Allan Ltd. are working on a concept for an LNG-escort tug, so we’ll see. For something like a ferry — a big ship on a short run with the ability
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December 2013/January 2014 BC Shipping News 15
We do a poor job of promoting marine trades as a viable vocation... we don’t make a big noise about who we are, what we do, and what we offer, and we need to change this.
to fuel frequently, it makes sense. It makes sense based on the price of gas today but if the price were to triple, would it still make sense? I don’t know. Another alternative is methanol — it’s much easier to convert to — you don’t need special tanks and the engines convert very easily. I’m not sure whether you get enough energy out of methanol to be able to store enough for long-range voyages but it is certainly another possible solution. Other alternatives, like solar or wind, are being played around with but generally, in shipping, the demand is for just-in-time deliveries and shipping needs to be able to respond to that. A container ship has to be able to deliver from Asia to North America in a threeweek period or you don’t fit that current model. Slow steaming works but only when there’s a huge amount of extra tonnage. BCSN: How are the various trends in the industry affecting ITB’s fleet?
BS: We will be re-investing in our fleet to move to dedicated articulated tug-barge units. We’re going to retrofit our liquid vessel barges to dedicated pushers so they’ll all be ATBs. In our domestic trade, the primary advantage is that you can separate the two so they are regulated separately. Regulations like manning are more suitable for the type of coastal operations we do and provide for lower costs. As for the design specifications on those tugs, we’re looking to make them much more friendly to attract anybody to the industry, including mixed-gender crews. We don’t think it should be a predominantly male-oriented industry so we want to make sure the vessel accommodates that. We also want to address noise — we want quiet ships that are comfortable and take advantage of all of the technologies available today. We don’t want a complicated ship but we do want one that’s more technically advanced and more automated. We’d
About Bob Shields
ob Shields’ career in the marine industry began at the age of 14 working on tugs up and down the B.C. Coast for Shields Navigation, the family business. After achieving a Bachelor of Science in Economics at the University of Victoria, Bob pursued his Masters ticket which he received in the mid-1980s. By 1987, Bob was running Shields Navigation and, although father Peter was keeping a close watch, was given the freedom to expand operations and pursue new business opportunities, turning Island Tug and Barge into one of the largest tug and barge operations on the West Coast. Bob is currently the Chair of the Council of Marine Carriers. The Council’s role is to formulate and advocate policies, legis- Bob with daughters Josie and Sydney. lation and regulations that are beneficial to the tug and barge industry. The Council of Marine Carriers represents the membership in all matters before the appropriate governmental and industrial agencies. 16 BC Shipping News December 2013/January 2014
like to build in features that unload the crew from all the duties required for older vessels and give them time to do what they’re supposed to do— i.e., safely deliver our cargoes. Generally, within Western Canada, there’s going to be continued interest in ship-docking and ship-escort services so you’ll see more high-spec vessels being built to serve that market. If the LNG plants get off the ground, there will have to be some pretty fancy terminal escort tugs involved with that. For the coastal transport sector, we really have become an industry that works around the Gulf of Georgia Basin and not much further. West Coast operators have a very high cost of operation so to try to take our industry beyond Canadian borders is difficult. There are a lot of changes needed to address labour agreements that haven’t kept pace with either current labour practices or business models. Trade unions that represent mariners on the West Coast need to start building a group of professional mariners that are sought after globally, much like the old brick layer guilds where accreditation had meaning. Unions should be focusing on training and professionalism rather than how much extra an employee can get for dental care. The trade unions in the U.S. made that shift decades ago to the point now that they own the training institutes. BCSN: For coastal operations, what sort of trends are you seeing in the movement of cargoes? Do you have an opinion on short sea shipping? BS: I’ve been watching short sea shipping for almost 20 years — it’s time will come. Our roadways and our railways cannot support the amount of traffic that is on them today and a different solution is needed. We have an ocean highway that’s very under-utilized and the key is to change the mindset away from the just-in-time delivery model that is keeping the trucking industry active. Not only can short sea shipping move a huge tonnage of cargo for a very low dollar cost but the amount of horsepower to take 5,000 tonnes of cargo from Vancouver Port to up the valley for distribution, is about the same as two trucks. So you’re moving much more cargo with a fraction of the
INDUSTRY INSIGHT emissions and consumption of fuel. It is a practical solution that just needs a catalyst. BCSN: What about trends in labour? You mentioned a desire to recruit more women — how’s that going? BS: We haven’t really embarked on recruiting women yet — we want to have the vessels first before we head down that road. We do have women working on the shore-side though. Generally, the majority of people that come to work here have chosen the industry because they know someone already in it. We don’t find a lot of younger people coming out of school who want to be a tugboat captain. It’s just not on their radar. We do a poor job of promoting marine trades as a viable vocation. When I say we, I mean all of us in the industry; we don’t make a big noise about who we are, what we do, and what we offer, and we need to change this. BCSN: With the automation of tugs and the reduced manning that came with it, do you see a gap in the skills required? BS: It does create a bit of a problem — because we have smaller crews, there aren’t any extra positions on board that can be used for training. Typically, on ocean-going vessels, all the lower positions are training positions. For coastal work, you can’t afford that. To give you an example of the difference in cost — we had a big offshore tug with a crew of 13. The total cost of that crew of 13 — and they’re well paid — was roughly the equivalent of a four-man coastal tug. It’s two and a half times more expensive to run a tug domestically on the West Coast than it is to run one offshore. It’s huge and as a result of that, you can’t afford to have any position on board that isn’t absolutely necessary. BCSN: Do you see a solution? BS: We’ve been very fortunate in that we’ve been able to groom a number of younger people. We have three in-house operating trainers and then one ashore that manages that. To be in charge of a tank barge’s loading and discharge operation, a new employee will spend an intensive three to six months training under another tanker man and then after that, they go through another two years of being shadowed.
What we do is fairly unique in the industry — we go after the niche market so we’re doing a lot of different things that attract new employees. We also feed a lot of people to the pilots. The experience they gain while they’re here is very beneficial to moving on to that final plateau of becoming a BC Coast Pilot which is the utopia for a B.C. towboat operator.
In terms of a solution, I’d like to see a way to do more within the confines of the economics that we face. I think a lot of it has to do with the inflexibility contained in the current labour collective agreement. There’s a lot of ways to do more without costing more. It just requires people to embrace change which is often difficult but necessary. BCSN
TB is the end result of the creation and merger of a number of marine companies established by the Shields Family but primarily rooted in the family’s original company, Shields Navigation. Shields Navigation had served industry and communities along the Pacific Coast since 1965, delivering fuel and deck cargoes as well as supplying submarine cable laying and repair services. Today, the main focus of operations concentrates on bulk fuel delivery, underwater cable installations, general towing, and barge services and has operations along the West Coast from Alaska to California and in the Canadian Arctic and McKenzie River. “Our strength comes from within,” says President, Captain Bob Shields, “employee involvement is encouraged and welcomed, and in all ways sets the tone for the image that the company portrays. Our goal is one of operational excellence and enthusiastic achievement.” ITB’s vessels are known for their innovative design and attention to safety. ITB is voluntarily compliant with the ISM Code (the International Safety Management Code) and is ISO 9001 certified through Lloyds Register. Recognizing their commitment to marine safety and environmental stewardship, ITB was the first tug and barge company to be awarded the Exceptional Compliance Program Award (ECOPRO) from the Washington State Department of Ecology in 2005 for their voluntary prevention planning standard. “We’re proud and privileged to be a part of the ECOPRO program,” said Captain Shields. “Because it’s voluntary, we find it has greater meaning and value — it’s something we do because we choose to do it rather than being forced through regulation.” ITB also received a legacy award from the B.C./States Oil Spill Task Force for their work in oil spill response and safety management. They continue to participate in OSR exercises with key response agencies from both Canada and the U.S.
For more information, please visit: www.islandtug.com
Photo courtesy of Carolyn Matt, ITB Marine Group
December 2013/January 2014 BC Shipping News 17
Photo credit: Dave Roels (www.daveroels.com)
A short history of boom boats By Lea Edgar
Librarian/Archivist, Vancouver Maritime Museum
Sidewinders, pond boats, dozer boats, and log broncs. So many names for such a little tug!
idewinders, pond boats, dozer boats, and log broncs. So many names for such a little tug! Yet these tiny but tough vessels have been largely overlooked when it comes to tugboat history. The term “boom boat” only began appearing in the industry media shortly after the Second World War. In British Columbia, the term appears to first be used by John Manly Ltd. when he completed the welded steel boat Glendale Prince for BC Forest Products in 1947. In fact, the Glendale Prince may have been the first Canadian boom boat. Before boom boats existed, log drivers had the dangerous task of walking the logs on the water, sorting them with a pike pole and stacking them at the log lift. Boom boats were designed to make short work of this precarious job. They crash into and shuffle the logs for hours, herding them into place. Today, people enjoy watching these little boats sorting logs by bobbing, bumping, spinning around, and generally showing off their unique manoeuvrability.
Plain Jane II built by John Manly Ltd. in 1960.
There have been several prototype boom boats built over the years. Early designers included H.C. Hanson of Seattle and Robert Allan Ltd. of Vancouver. The earliest models were wooden-hulled, however, they couldn’t stand up to the strenuous requirements of the job. It wasn’t until the advent of welded steel hulls that the widespread use of boom boats really took off. An early, locally designed model was called the “pod bottom” boat. Its lower hull was much smaller than the upper hull, giving the boat lots of waterplane area for stability, but also the least underwater volume for optimum manoeuvrability. Many boat builders, such as John Manly Ltd., West Coast Salvage, Mac & Mac Manufacturing, Vancouver Steel Fabricators, and Alberni Engineering, to name a few, have been active suppliers of boom boats in B.C. The average boom boat measures approximately 16 feet long, eight feet in the beam, and four feet deep. The typical gross tonnage is a mere three tons. The
Image courtesy of Dave Weldon.
18 BC Shipping News December 2013/January 2014
two most common types of boom boats are dozer boats and sidewinders. Dozer boats have conventional drives with a single screw and the propeller near the rear of the vessel, whereas Sidewinders have a 360-degree rotating steerable drive in a cage near the front. The development of boom boats over the last 50 years was largely influenced by the drive design. Initially fitted with gas powered engines driving a single propeller, diesel engines became standard by the mid-1950s. By the 1960s, right angle-drives became available. Early on, companies such as Olympic Foundry and Hydro Drive Corporation in Seattle designed and built the drives. The Original Olympic 360-degree Drive was first produced in 1969. Rendell Tractor built several sidewinder boom boats with both Hydro Drives and Olympic Drives. In 1973, they bought the rights to manufacture the Olympic Drive. In 1975, Rendell Tractor redesigned the drive, changed its company name to Summer
Expo 86 Boom Boat Ballet.
Image courtesy of Rebecca Bollwitt.
VANCOUVER MARITIME MUSEUM Equipment, and came out with the HD-3 model. Summer Equipment later bought the rights to manufacture the Hydro Drive in 1993. In 2005, Olympic Drives & Equipment Ltd. purchased the rights to manufacture the Olympic Drive from Summer Equipment, and they continue to sell the drives today. Another design worth mentioning is the Log Bronc. Invented in 1958 by Fred Nelson, the Log Bronc was a type of boom boat largely used on the West Coast of the United States. This model, with the addition of roll bars, was even used by the U.S. Navy. These little tugs are so captivating in their manoeuvrability, that they were even featured in the festivities for Expo 86 in a performance called the Boom Boat Ballet. The brainchild of Al Dickey of West Coast Salvage, and Lucille Johnstone of Rivtow Marine, the little Sidewinders put on a choreographed musical “dance” in the waters of False Creek. Even the size of the operators had to be co-ordinated to achieve the perfect symmetry for the
dance. Today, a similar performance takes place every year at the Discovery Passage Boat Rodeo. Other comparable performances also regularly make appearances in various festivals around B.C., proving the continued charm and uniqueness of these little vessels. Although largely viewed as a means to an end, boom boats deserve their place in tug boat history. Their ruggedness, durability, agility and simple design makes them long lasting and effective
Dozer boat (left) vs. a sidewinder (right).
Marine paintings, special commissions, talks, reproductions and books...
John M. Horton, Marine Artist
little vessels that still busily work the waters of British Columbia today. Special thanks to Robert Allan, Doug Blake, S.C. Heal, John Rendell, R.L. Shields, Dan Teloski, and Rollie Webb for their assistance in writing this article. Lea Edgar started her position as Librarian/Archivist for the Vancouver Maritime Museum in July 2013. She can be contacted at email@example.com
Images courtesy of runran via Flickr and John Rendell, respectively.
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December 2013/January 2014 BC Shipping News 19
2/7/2013 1:14:42 PM
Sue Hanby — Heart of the community Peter G. Bernard Q.C., Director and Past Chair, International Sailors Society Canada
he marine community has, at its heart, a special group of people who contribute, not for dollars, but for the satisfaction of making others welcome and comfortable. Carolyn Sue Hanby, who died on October 12, 2013, was such a person. Sue was born and raised in North Vancouver. She graduated from high school and went on to work at the Royal Bank and subsequently the Vancouver Aquarium. Sue quickly became a very active and giving member of the community through her church, the choir and various seniors’ groups. She began her volunteer work with seafarers at the Vancouver Mariners’ Home and the British Sailors’ Society club on Howe Street in the 1970s. Little did she know in those early days that she would, many years later, become one of the leading advocates for seafarers’ welfare in Canada and in fact around the world. Certainly, Sue was one of the few individuals with detailed knowledge of the history and evolution of the work promoting
the welfare of sailors coming to Canada on foreign flag vessels. Sue married Bernie Hanby in 1965 after meeting him in the elevator of their apartment building. The ceremony took place within a few months of their initial meeting and the union continued happily for 48 years. Sue’s daughters, Lynn and Tamara, and their families, never ceased in their amazement at the depth and intensity of Sue’s activities at the church, in the choir, and in making seafarers welcome in Vancouver. Bernie added to Sue’s maritime passion with his love of things under the sea. He combined scuba diving and photography to achieve international recognition for his book entitled “Marine Life of the Pacific Northwest”. (Bernard Hanby and Andy Lamb, published in 2005). The book contains 1,700 photos. It represented a continuation of Bernie’s passion which was recognized by the Vancouver National History Society when they awarded him the Davidson award for conservation and education in 2003.
20 BC Shipping News December 2013/January 2014
Continuing in her work on behalf of seafarers, Sue became a director of the British Sailor’s Society (BSS) Canada in the late 1970s, during which time the focus of the organization had changed significantly from the club operations in the earlier days. Beginning with the sale of the BSS Club in 1977, the organization altered its mandate and became a support and funding source for seafarers’ organizations across Canada. The Society moved to Water Street in Gastown where Winnifred Thorne continued to oversee the day-to-day work. Patrick Graham became the executive director, fostering the relationships with seafarers’ groups in Canada and managing the financial assistance given to them by BSS Canada based on the fund which was created by the sale of the property and donations from various supporters. Sue continued on the BSS Canada board until the untimely death of Patrick Graham. In April 1984, she became executive secretary. As one would expect, she was soon buried in projects ranging from individual assistance given to seafarers calling at her office, to travel across Canada from Port Alberni where BSS ran the Seamen’s Haven, to Newfoundland. She visited other shipping centres including Sarnia, Hamilton, Toronto, Montreal, Quebec, Saint John, Halifax, and Saint Johns. Sue had, in every case, an immediate ability to understand and encourage
IN MEMORIAM the work of the agencies in each of those centres while at the same time providing advice and direction to assist them in maintaining their objectives. She would then report to the BSS board with recommendations on the degree of support for each of the separate societies she had visited. Over a period of almost 25 years, Sue was the main connection between the Vancouver Society and those groups administering to the welfare of seafarers. She kept the board advised and connected. She involved most of the members of the board whenever a visiting chaplain or other representative of any group carrying on similar work in the world would call in British Columbia. In 1987, Sue led a campaign to change the name and image of the society. The result was the International Sailors’ Society Canada (ISSC). Sue, along with a dedicated group of local directors and members, organized the Third International Sailor’s Society conference held in Vancouver in 1996 which was attended by delegates from England, New Zealand, South Africa, and Canada. The event was productive and fun. Many ideas and stories were exchanged. Sue travelled extensively, both in her own right and to numerous gatherings of various seafarers’ organizations. She went to England in 1987 where she attended meetings with the secretaries of the four international British Sailor’s Society groups. On this occasion, she attended at Buckingham Palace when invited to the Royal Garden Party. Sue was in Scotland in 1993 for the 175th anniversary of the British Sailor’s Society again attended by representatives of the international agencies. In 1995, while in Moscow, she met with the executive officers of the International Confederation of the Water Transport Workers Union. They certainly appreciated Sue’s advice and encouragement to assist them in dealing with the difficult times being faced by those attempting to administer the needs of seamen in that country. On the local scene, Sue was known for her ability to recruit family and friends to assist in her efforts to make the work of ISSC successful. On Port Day, she would staff a booth with her daughters and her friends along with some directors to advise the visiting public on the work of the Society. She organized, with others including her good friend Lynne Walmsley, the Valentine’s Day, Evening at Sea, and ISSC dinner events, all of which were successful in raising significant amounts to help with the work to be done. In each year of her executive secretary function, Sue provided a written report to the ISSC Board. Without fail, the reports detailing all of her activities during the year in Vancouver and around the world would contain a summary paragraph which reflected Sue’s absolute faith in the continuing success of the Society. The concluding paragraph of the 1987 report read as follows: “My final comments concern the future of seafarers working in Canada. The need for greater stability in the establishment and operation of seafarer centres is of the utmost importance. The strength of this unique work in unity and developing a closer relationship amongst the centres should be encouraged. Each would retain its individuality while working together, using the knowledge and experience of each other to solve problems and develop programs that enhance the service each provides. This can only serve to
advance our common interest....to provide comfort, guidance, and a warm welcome to all seafarers visiting Canadian ports.” Sue alone was responsible for much of the success achieved. She will be missed for many reasons by numerous people around the globe.
Sue (second from left) with volunteers at the Yarmouth Charity Shop.
Sue (on the left) at a fundraising dinner with U.S. seafarer group representatives.
December 2013/January 2014 BC Shipping News 21
Will it be this time lucky for Nanaimo fast ferry? By Ray Dykes
or what appears to be the fourth time in 20 years, the port city of Nanaimo is all abuzz over the prospects of a new fast ferry passenger service linking it with downtown Vancouver. Two of the earlier versions tried and failed. One run by Kavaerner Fjellstrand of Norway back in 1993 spent a little over a year, some say largely trying to sell its heavily-subsidized fast ferries to the world, and carried 220,000 passengers on Nanaimo and Victoria runs to the Mainland. Then, HarbourLynx came with much fanfare and lasted about 30 months, carrying about 350,000 passengers before going bankrupt in February 2006. A third attempt by SeaLink Ferry Corporation, headed by Ed Life who bought and reengined the HarbourLynx fast ferry in 2008, eventually was sold out and disappeared from the scene without running a single trip to Vancouver. So, Nanaimo’s long-suffering fast ferry wanna-bes and a hungry tourism
For what appears to the fourth time in 20 years, the port city of Nanaimo is all abuzz over the prospects of a new fast ferry passenger service linking it with downtown Vancouver.
industry can be forgiven if they use a jaundiced eye to view the latest proposal by an entity known as Island Ferry Services Ltd. or more simply Island Ferries. Yet, this new $63.5 million venture seems to be tackling everything in the right way and may well succeed in launching a fast ferry service as planned in the spring of 2014. Much has to happen before then, but, already, much is happening toward securing the key financial backers. It has some powerful proponents including founder and Chairman, Dr. Stewart Vinnels, who initiated the former Island Jetfoil between Victoria and Seattle in the 1980s, North America’s first highspeed passenger-only ferry service; and Harvard Business grad and Managing Director Bob Lingwood of Lingwood
Transportation Strategies Ltd., who just happens to be a past President & CEO of both BC Transit (during the Millennium Line expansion) and BC Ferries. I talked with Island Ferries’ Marine Director, retired naval Captain David Marshall, who is one of the three main principals behind the project. For starters, the good captain is smart, knows the marine industry, and is attracting enthusiastic support almost everywhere. David is Marine Operations Director for Island Ferry Services; principal owner of Strategus Consulting (the name comes from the title given to the political and strategic counsellors to Roman Emperors) in Victoria; is currently on the Board of Directors of the Greater Victoria Harbour
The Island Tenacity — one of two new fast ferries heading to the West Coast for service between Nanaimo and Vancouver. 22 BC Shipping News December 2013/January 2014
FERRIES Authority; and was a marine engineer with the Canadian Navy for 27 years. Along the way, he earned a degree in Engineering Management, plus his Royal Navy Master of Science in Marine Engineering; was CFB Esquimalt Base Commander for two years before retiring in 1999; took a break to run a gas and wood stove manufacturing plant for something completely different; and then spent five years or so with BC Ferries as Vice President of Engineering and then Vice President Operations (Mainland Services). Impressive as this high-powered team is in the marine industry, it won’t amount to a hill of beans unless they can convince passengers, the City of Nanaimo, and backers that they have the nous to pull the fast ferry venture together. And that’s the prime focus of Island Ferries today. They’ve been before Nanaimo City Council and have offered them a deal for a 20-year lease to use some of the Wellcox Rail Yard Property on the waterfront and close to the Nanaimo Cruise Ship facility. The City only finalized a deal to buy the land last March and plans to develop a transportation hub there with a possible bus and now ferry facility, perhaps even a float plane service or two. Marshall says Island Ferries is not looking for a tax handout and predicts the deal they offered to the City — 25 cents per passenger carried, lease revenue and half of the parking revenues at the Wellcox property — could bring $4.4 million or so into City coffers over the decade. Meanwhile, Island Ferries isn’t sitting back. It has bought two brand new, snazzy-looking fast ferries from Damen Shipyards Group of Holland, opting for the shipbuilder’s Damen Fast Ferry 4212 model, which needs a draft of only 1.5 metres to operate and can whip along at over 40 knots carrying 376 passengers. The hulls were built in China and finished in a Damen Shipyard in Singapore. The fast ferries — named Island Tenacity and Island Friendship — will have 50 per cent of their seats set out around tables and the announced one-way fare between Nanaimo and Vancouver is $30 with six round trips
The Island Tenacity, a Damen Fast Ferry (4212 model). a day for eight months of the year and four a day in winter. Lower fares will be offered for groups, seniors and children, and higher fares set for an upscale Business Class. There’ll be a light cafeteria service on board to feed the hungry on the 68-minute crossing.
Marshall has read letters from writers to local newspapers in Nanaimo who already complain that the fare is too high but he says once the passenger loadings are known, fares will vary on a time-of-day basis much like an airline. An enthusiastic Marshall was in Singapore for recent sea trials of one
December 2013/January 2014 BC Shipping News 23
FERRIES If one suffered engine failure, it has three other engines capable of producing speeds of about 30 knots to get it back to port...And with two vessels there’s overlap should the service be disrupted.
of the vessels and says it can reach 40 knots in 51 seconds from a standing start. With a deadweight of 590 tonnes, the four-waterjet model sports four MTU 16V2000 M72 engines giving it far more flexibility than the twoengined HarbourLynx ever had. And that was one of the major pitfalls of the last ferry service to run the downtown to downtown service. The 1997 vintage HarbourLynx had log snarling trim foils and with no other vessel to fall back on — if it damaged an engine the service was down until it could be fixed — there were cancelled sailings and frustrated passengers. I recall riding on the bridge of the HarbourLynx back in 2003 and the crew kept a vigilant watch, not just for other George Strait marine traffic, but especially for damaging deadheads which plague the waters between the Lower Mainland and Vancouver Island. The Damen 4212s have a crew of eight with a Captain, First Officer and Engineer on the bridge. The cabin staff can be augmented in heavier passenger seasons. “It’s really a beautiful vessel,” says Marshall. “I drove one and they handle magnificently; they can almost turn in their own length.” Unlike HarbourLynx they have an active interceptor system for ride control much like a trim tab on a speed boat. If one suffered engine failure, it has three other engines capable of producing speeds of about 30 knots to
get it back to port and could continue to operate at that lower speed until repairs can be scheduled. And with two vessels there’s overlap should the service be disrupted. Marshall says HarbourLynx was like a one-bus, bus company and he adds, equally it doesn’t pay to try to run a one-ferry, ferry service. Both fast ferries produce only a small wake — excessive wake has dogged many a fast ferry service around the world — but will not be accelerating to their cruising speeds until out of the harbour in any case. “Just like with the seaplanes and BC Ferries, there may be some days where we choose not to run our service because of poor weather,” says Marshall. “Our studies show only seven days in a year where wave height was over our limit of 2.37 metres and BC Ferries likely didn’t operate then either.” Marshall says they are close to finalizing the financial backing Island Ferries needs to raise $63.5 million, some of which has already been spent on the two vessels, consulting fees, ridership surveys, commissioning studies and travel. Both vessels have already been sea-trialed and Transport Canada certified for fast-foot-passenger operations in Canadian waters. “The ferries are registered in Nanaimo and are ready to import for service,” he adds of the two vessels, which would take about a month in transit. Surprisingly, the Nanaimo Port
The Island Tenacity’s main deck, forward salon, starboard side. 24 BC Shipping News December 2013/January 2014
Authority, which has been up front and involved in past fast ferry operations and proposals, seems to have been sidelined on this one. Island Ferries had hoped to move into the new and so far lightly-used cruise ship facility near downtown Nanaimo, but couldn’t work out a deal with the port authority. Nanaimo Port Authority CEO Bernie Dumas says the talks with Island Ferries have been an “interesting story” and they are not necessarily over yet. The new fast ferry firm is hoping to eventually take over Seaspan facilities on the Wellcox land, but it’s not a given that Seaspan will vacate the site it uses for a barge service to Vancouver. “We are more than willing to talk with Island Ferries again,” says Dumas, “we are still interested in talking with them.” The NPA has “a public asset here, paid for by government support” which could be an ideal platform for any fast ferry service, Dumas adds. Meanwhile, Nanaimo has had some other good news with the signing of a downtown hotel deal which ties in with the Vancouver Island Conference Centre and is seen as a huge boost to tourism. The City has inked a contract with SSS Manhao International Tourism Group Co. to build and run a hotel by 2016. The developer says the 21-storey hotel will act as a landing pad for 70,000 tourists a year from its parent company Suzhou Youth Travel Services Co. Ltd., and that has to be just the right sort of news for Marshall and his Island Ferries’ backers. Ray Dykes is a journalist who has worked his way around the world as a writer/photographer. Ray can be reached at email@example.com.
SPECIAL EXHIBIT Exhibit gives rare glimpse into Battle of Trafalgar Photo courtesy of Vancouver Maritime Museum
ittingly, on the 208th anniversary of the Battle of Trafalgar (October 22), the Vancouver Maritime Museum opened the Nelson’s Letters exhibit, a collection of over 300 documents, including letters, reports and even a secret battle plan for the Battle of Trafalgar. The collection, a donation from Mr. Anthony Sessions, is one of the largest ever recieved by the Museum and will be on a special display until January. In a speech on opening night, VMM President Craig Beattie thanked sessions and noted that he had “assembled an amazing collection of artifacts of great significance, and has now shown his appreciation and respect for his Canadian home by giving those to...the Museum”. Nelson’s Letters represent a portion of the most significant collection of Lord Nelson material outside of the United Kingdom. The documents consist of records related to the naval careers of Lord Nelson, the Earl of Northesk, and Lord Collingwood as well as events including the Battle of Trafalgar. Original correspondence and transcriptions of letters as well as 21 letters from the Duke of Clarence (Queen Victoria’s uncle) to the Earl of Northesk regarding various naval matters are a part of the collection but Sessions’ “favourite” is the Secret Plan for the Battle of Trafalgar written by Nelson to the 27 Captains in his fleet, just 12 days before the great battle, and his own death. Only three copies of the plan remain in existence today. With a rare glimpse into early naval warfare strategy, the documents show how Nelson broke the traditional custom of arranging ships bow to stern in a single line by deploying his fleet in two columns and sailing head-on, perpendicular to the enemy line of battle. Bringing the significance of the battle to British Columbia, Beattie noted that: “To many of us, the Battle of Trafalgar and the Napoleonic Wars were great but dimly remembered events of long ago, but how many of us have been struck by the dozens of Spanish place names in the Pacific Northwest and wondered
Mr. Anthony Sessions with his daughters and granddaughter at the opening of the Nelson’s Letters exhibition at the Vancovuer Maritime Musuem. why we don’t now speak Spanish? The answer lies in the great maritime events taking place at the end of the 18th century and through to 1805. The Nootka Treaty made the Pacific Northwest a safer place for the British, but it was the Battle of Trafalgar that removed forever the threat of Spanish dominance here. Quite simply, on October 20, 1805, there were three great empires locked in combat on the seas, and on October 22, the British had undisputed control of the seas and both the French and Spanish navies were decimated.
In his acceptance speech of the Museum’s thanks and appreciation, Sessions, originally from Britain, said that the donation was a way to thank Vancouver and Canada for all that he has received. “There is no better place on earth for these documents to be shown,” he said. As mentioned, the Nelson’s Letters exhibit at the Vancouver Maritime Museum will be on display through to January 2014. For visitor information, please go to www.vancouvermaritimemuseum.com
Located at Vancouver Waterfront and Roberts Bank
www.flyingangel.ca December 2013/January 2014 BC Shipping News 25
SHIPBUILDING Coastal Aboriginal Shipbuilding Alliance (CASA) created Photo credit: BC Shipping News
hree Aboriginal training and employment organizations have taken steps to create the Coastal Aboriginal Shipbuilding Alliance (CASA). Representatives from the Aboriginal Community Career Employment Services Society (ACCESS), Coast Salish Employment and Training Society (CSETS), and First Nations Employment Society (FNES) met on November 1 to sign a Memorandum of Understanding, witnessed by Jonathan Whitworth, President & CEO of Seaspan. The three organizations agree to jointly develop, design, deliver, and evaluate quality training and employment programs and services in the shipbuilding industry for Aboriginal people living in Vancouver and on Vancouver Island. “The award of the NSPS to Seaspan creates a need for skilled workers in the marine industry,” said John Webster, President & CEO of ACCESS. “ACCESS
Left to right: Jonathan Whitworth (Seaspan), John Wesley (CSETS), Chief Lucinda Phillips (FNES), and John Webster (ACCESS). is proud to be partnering with FNES and CSETS under the Coastal Aboriginal Shipbuilding Alliance to provide Aboriginal people with the means to gain the skills necessary to be part of this exciting opportunity.” The MOU was signed at a ceremony at the Chief Joe Mathias Centre in North Vancouver. The guests, represented by
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Building a World of Sustainable Communities 26 BC Shipping News December 2013/January 2014
a wide range of partners from Aboriginal organizations, Seaspan, educational institutions, unions and municipal, provincial and federal governments, were welcomed by Chief Gibby Jacob of the Squamish Nation and elder Ernie George of the Tsleil-Waututh Nation, and treated to a performance by the Squamish Youth Group. “This is a long-term partnership,” said Marlene Rice, Executive Director of CSETS. “We are joining forces to provide funding for training and assist our clients in finding employment in the shipbuilding and marine industries.” Under the agreement, ACCESS, CSETS, and FNES will work together to ensure Aboriginal Peoples are poised to meet the challenges and opportunities created by the shipbuilding industry. In turn, this initiative will better equip industry to meet the greatly increased demand created by the NSPS. “We are honoured to sign this agreement with our ACCESS and CSETS colleagues,” said Chief Garry Feschuk of the Sechelt First Nation, and President of FNES. “Our goal is to create career opportunities for Aboriginal people. Together we can ensure a brighter future as a result of our joint training and employment programs.” ”Today’s signing ceremony marks yet another crucial milestone in the future of the NSPS,” said Jonathan Whitworth. “We are thrilled to partner with ACCESS, CSETS, and FNES, and look forward to working with CASA to develop and grow a world-class shipbuilding and ship repair centre of excellence on the West Coast.”
We are Shipbuilders campaign launched
he B.C. Shipbuilding and Ship Repair Board (SSRB), with support from the B.C. Ministry of Jobs, Tourism & Skills Training, is kicking off its We are Shipbuilders campaign with an online contest at www.weareshipbuilders.ca. Companies, including Seaspan, Point Hope Maritime, Meridian Marine Industries and others have donated six thousand dollars in cash prizes towards the “Get on Board!” contest. Current and past employees of B.C.’s shipbuilding sector are encouraged to enter the contest by sharing a story, video, and/or survey about their experiences in the shipbuilding and ship repair industry. “The shipbuilding workforce represents a cross-section of individuals from a wide variety of jobs within the sector,” says Mark Wilson, SSRB Chair Publication and VP, Engineering for BC Ferries. “We BC Shipping Newsthe industry through want to promote their stories and experience.” IssueSelected stories and elements of the December/January survey will be used throughout the development of the We are Shipbuilders Size campaign, and three finalists will be Island page vertical) chosen(half by a jury of industry experts to take home cash prizes totalling $6,000. Deadline VP of Human Resources at Seaspan November 2013 and Chair7, of the SSRB Communications and Marketing Sub-Committee, Lisa Features Bumbaco states: “We are all shipbuilders, and this contest is aimed at everyEDITORIAL FOCUS: one who works or has worked in B.C.’s Ÿ Tugs & Workboats shipbuilding and ship repair industry: Ÿ Industry Insight – Bob from those who recently joined and Shields, President, are enjoying learning the ropes, to our Island Tug & Barge more experienced workers with great Ÿ Recent RAL Press release stories to tell.” on ITB barges The “Get on Board!” contest marks the first phase of the SSRB’s website, a highly anticipated industry-wide resource tool that will help raise awareness of B.C.’s shipbuilding and ship repair sector, and provide information on career and training opportunities available on the West Coast. Over the next decade alone, B.C.’s employers will need over 4,000 individuals to meet existing and future job openings in both the shipbuilding and ship repair sector and the directly
affiliated metal plate and fabrication sector for such professions as Welder, Marine Fitter, Electrician, Pipefitter/ Sprinkler Installer, Trades Supervisor, Machine Fitter and Marine Engine Mechanic occupations and many more. The contest started on October 28, 2013 and ends December 20, 2013. For more information, visit weareshipbuilders.ca.
2,410 Tonne Dwt. Shallow Draft, Double Hull, Combination Bulk Oil / Deck Cargo Barges for ITB Marine Group Ltd.
December 2013/January 2014 BC Shipping News 27
VESSEL DESIGN RAL and ITB collaborate to bring first shallow-draft, double-hull oil barges to the Mackenzie River
n September 2012, ITB North Ltd., a division of ITB Marine Group Ltd., contracted with Robert Allan Ltd. Naval Architects to design a new class of shallow-draft, double-hull, combination bulk oil and deck cargo barges for operation on the Mackenzie River, Great Slave Lake, and the Beaufort Sea in the Canadian Arctic. Robert Allan Ltd. and another of the ITB Marine Group divisions, Island Tug and Barge Ltd., have a long history working together, dating back to the late 1950s when Robert Allan Ltd. began designing tugs and barges for the company’s expanding fleet. Presently, Island Tug enjoys the position as the largest marine supplier of oil cargo transport in Western Canada.
Recognized for their commitment to environmental protection, the company’s oil barge fleet is 100 per cent double-hulled, well in advance of regulatory requirements.
Recognized for their commitment to environmental protection, the company’s oil barge fleet is 100 per cent double-hulled, well in advance of regulatory requirements. When ITB Marine Group decided to expand their operations to the Mackenzie River, they chose to work once again with RAL to design their new shallow-draft, doublehull oil barges. An extremely tight design and build schedule was required in order to get
The ITB Deh Cho 2 heads into Vancouver for final outfitting before heading up to ITB’s base in Tuktoytuk. 28 BC Shipping News December 2013/January 2014
the barges delivered to the Canadian Arctic in time for the 2013 summer operating season. The highly compressed design schedule involved a close collaboration between owner and designer in the development of this unique class of vessel required to operate on the Mackenzie River with its challenging 1.5m river draft, short three-month operating season, and many ports of call that are little more than a river bank. ITB’s knowledge and years of experience in bulk oil transport, coupled with RAL’s extensive experience in shallow-draft barge designs, resulted in an innovative and economical design to serve communities and industry in Canada’s northland. Steel cutting commenced just three months after the award of the design contract. In all, four barges have been built to this design and have been named the ITB Deh Cho 1, ITB Deh Cho 2, ITB Deh Cho 3, and ITB Deh Cho 4. “Deh Cho” means “Big River” in the Dene First Nation language — their name for the Mackenzie River. The barges were constructed at Jiangsu Yangzijiang Shipbuilding Company in China under the construction management and supervision of Seabridge Marine Contractors. The first two were transported on the deck of two 7100 DWT deck barges towed by the Pacific Hickory in a three-week tandem trans-Pacific tow and floated off in Vancouver where final outfitting took place. They were later towed to their home port in Tuktoytuk in another three-week tandem tow by Island Tug’s 3000 BHP ice class tug, Island Tugger (Ex. Canmar Tugger). The second two barges were towed direct from the shipyard in China to Nome, Alaska by the Pacific Hickory and then onward to Tuktoyaktuk by the Island Tugger.
VESSEL DESIGN All four barges are now in service delivering bulk fuel oil and deck cargoes to various locations in the North less than 11 months after the original design contract was placed. These barges represent a significant milestone, bringing the first doublehull oil barges to the Mackenzie River. The design has many innovative features including: • Portable ramps able to be deployed off the bow, stern, or midships P&S. • 15 T/m² deck load rating. • Spuds for locating the barges on the river during cargo loading/offloading operations. • Designed for both coastal towing and for pushing on the river using push knees and barge winches. • Certified for both high and low flash cargo products. • Portable cargo pumpsets which can be removed and stored inside during the winter months. • Extensive use of high-strength steel to reduce deck and shell plate thicknesses reducing barge weight while not compromising plating strength. Spill prevention and response features include: • 300mm high coaming surrounding all cargo tank openings and fittings. • Common cargo vent system. • Closed loading capability. • Dedicated spill tank. • High level and high-high level indication. • Cargo tank sight glasses. • Remote emergency pump shut-down. • On-deck spill response container housing equipment including 1,000 feet of inshore containment boom and an Aquaguard Triton 60 skimmer. All towing and pushing fittings were checked using finite element analysis (FEA) to ensure required strength for the intended operations. The portable shore ramps and deck structure were also analyzed using FEA. Particulars of the Deh Cho barges are: Length overall: 70.00m Beam, moulded: 18.90m Depth, least moulded: 3.40m River draft: 1.525m Loadline draft: 2.514m Capacities are:
Total dwt at River Draft: 1,055t Total dwt at Load Line Draft: 2,410t Maximum Cargo oil (95 per cent full): 2,037m³ Arctic Diesel Capacity at River Draft: 1,270m³
Spill Tank: 19m³ 20-ft container capacity: 78 The barges were designed and constructed to Lloyd’s Register Class requirements with the notation: 100AN Oil Barge.
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December 2013/January 2014 BC Shipping News 29
SEARCH AND RESCUE
Foggy stretch puts the CLI in high demand Report from the Canadian Lifeboat Institution
30 BC Shipping News December 2013/January 2014
Photo courtesy of the CLI
eptember and October 2013 proved to be an extremely busy time for the CLI. Our tireless volunteers completed the initial refit and painting of the Fraser Lifeboat, and while this was going on, the Steveston Lifeboat was conducting safety patrols with several First Nationsâ€™ fisheries. Following immediately was a 24-hour commercial chum fishery on October 24 through 25. It was known that during this period there would be a large number of commercial shipping movements and the danger to all was compounded by dense fog which stayed in the area for over a week. This led to extreme safety concerns by many maritime organizations. The CLI was contacted by Port Metro Vancouver, Department of Fisheries, Fishsafe and Seaspan Ferries to ensure safety escorts could be conducted. It had been hoped that the Fraser Lifeboat might have been operational but owing to some equipment still not being fitted, it was deemed not ready â€” especially owing to the conditions. Our Steveston Lifeboat provided escorts to many rail ferries, deepsea ships, tugs and barges and pusher tugs with barges, all in zero visibility. Often, the fishing vessels and escorted vessels were never seen by the lifeboat crew and all were controlled and monitored by radar and AIS (Automated Identification Systems). The lifeboat lookouts were kept on their toes.
Zero visibility on the Fraser River. At 2330 on Thursday night, October 24, while escorting the Seaspan Challenger down river in zero visibility, a radio message was received from a tug and barge also outbound at Steveston Bend advising that a fishing vessel was blocking the channel with no response from the people on board. The Steveston Lifeboat picked up the vessel on radar and put on speed to ensure it would be clear for the Seaspan Challenger. Arriving on scene, it was determined the fishing vessel was not fishing and was clear of the centre of the channel. The lifeboat was then immediately turned around to return to the Seaspan Challenger as she was now having a problem with another fishing vessel. Suddenly, the stern lookout reported a flare from the first fishing vessel. Quickly returning to the scene, it was found that the vessel had drifted onto the rock wall. Communications were almost impossible owing to a language problem (the crew only spoke Vietnamese), a three-knot ebb, and dense fog. After two attempts, a towline was finally secured, the fishing vessel was towed off the rocks, and a course was set for Steveston. The lifeboat was informed that the hovercraft had been dispatched but as the fishing vessel was safely under tow, the hovercraft was able to stand down. The fishing vessel was finally secured at 0045 in Steveston where it was determined she had a broken shaft. The CLI had been requested to provide an escort for an outbound Seaspan ferry from Tilbury at 0200 but as there were only two boats still fishing, the ferry captain kindly suggested our crew should get some sleep prior to an escort requested for 0700 from Sandheads. And so after four hours of sleep, the Steveston Lifeboat slipped to escort the Seaspan Challenger, the Arctic Hooper, and the Sealink Pusher up river in convoy. This proved successful as a large number of fishing vessels were now fishing on the morning flood. Some minor problems were resolved and the first two vessels docked safely at Tilbury Terminal. The escort continued with the Sealink Pusher to Fraser Surrey Docks. A much larger concentration of fishing vessels had to clear the channel under the Alex Fraser Bridge and off the Fraser Surrey Docks. The fishery closed at 0900 just as the Sealink Pusher docked. The Lifeboat was then asked
SEARCH AND RESCUE to investigate a reported length of net adrift on the south side of the river off Acorn Dock. The net was eventually found but could not be retrieved as it was too heavy with fish and foul of the bottom. It was finally left but marked with a buoy and a notice to shipping promulgated by Coast Guard radio. The net was later retrieved by DFO. Now the lifeboat could return to Steveston where a very tired crew
secured at 1100 on Friday, October 24. The lifeboat crews are to be heartily thanked. With a bridge team made up of three retired Royal Canadian Naval officers, and two master mariners, great professionalism was brought to the service. During the evening, several trainees had embarked for the regular Thursday night two-hour training session. Little did they know they would be out for 6.5 hours as it was impossible
to return to home base until the rescues/patrols had been completed! They all returned with smiles on their faces and a story to tell at work later. The Canadian Lifeboat Institution exists entirely by donations. To learn more about how to support this valuable service, please visit: www. canadianlifeboatinstitution.org.
Photos courtesy of the CLI
The Canadian Lifeboat Institutionâ€™s Steveston Lifeboat on patrol.
Imagine seeing this behind you without any warning. The CLI provides that warning. December 2013/January 2014 BC Shipping News 31
Report from Maritime Cyprus:
Remodelling shipping By Kaity Arsoniadis-Stein LLB, LLM President & Secretary-General International Ship-Owners Alliance of Canada
he Republic of Cyprus hosted its 13th annual maritime conference entitled “Remodelling Shipping” from October 6 to 9, 2013 in Limassol, Cyprus. The Maritime Cyprus Conference has been established as a biennial event in Cyprus. It is organized by the Ministry of Communications and Works and the Department of Merchant Shipping in co-operation with the Cyprus Union of Shipowners and the Cyprus Shipping Chamber. Opening address The President of the Republic of Cyprus, Mr. Nicos Anastasiades, opened the conference together with Mr. Koji Sekimizu, Secretary-General of the International Maritime Organization (IMO) at the Presidential Palace in Nicosia. The government of the Republic of Cyprus showed its full support for the shipping industry, promoting “blue growth” and underscoring the government’s top priority to develop Cyprus as a global hub for shipping. Addressing over 700 participants from around the world, the President noted that shipping is one of the main economic pillars of Cyprus contributing over seven per cent of the GDP and $1 billion Euros into the economy. He noted that the Government’s House of Representatives is currently working on a Bill to form a group of “Under Secretaries” to the President to strengthen the country’s shipping industry internationally. Furthermore,
Mr. Sekimizu raised the question of what could be done if there was not enough fuel available or if it was prohibitively expensive and whether government pressure could be put on to the refiners.
the President stated that there are new plans to rapidly establish a liquid natural gas terminal as it is Cyprus’ intention to become a significant energy hub. Lessons can be learned from Cyprus, a nation which is prioritizing and promoting its shipping industry globally, despite its political obstacles, banking hurdles, and limited resources. Canada, by contrast, is a nation with enormous advantages and should consider building its shipping industry to optimize its Gateway and Trade Corridor investments. It makes good business sense for Canada to embrace the shipping industry and proactively promote shipping. Given Canada’s abundant natural resources that are in high demand by Asian markets, and with predicted trade volumes dramatically increasing since the commodities market will be driven by China and India, Canada’s high-quality trade and transportation infrastructure, its sound banking system, and its political stability, are all factors which put Canada ahead of other maritime nations which are suffering sovereign debt crisis, banking instability and political uncertainty. Secretary-General Sekimizu noted the excellent leadership Cyprus has exuded over the past 30 years since
32 BC Shipping News December 2013/January 2014
its expansion in 1983 and commented that Cyprus would be a good model for others to consider. Mr. Sekimizu explained the concept of a sustainable maritime transportation system and outlined the 10 goals and actions that are required to develop this system: 1. Safety, culture and environmental stewardship; 2. Education and training in maritime professions and support for seafarers; 3. Energy efficiency and ship-port interface; 4. Global distribution and energy supply for ships; 5. Maritime traffic support and advisory systems; 6. Maritime security; 7. Technical co-operation; 8. New technology and innovation; 9. Sound financing for new-buildings and retrofitting, promoting a harmonized approach for the allocation of liabilities and related insurance requirements; and 10. Ocean governance. Low-sulphur fuel availability The Secretary-General stated that shipping is at the heart of global
INTERNATIONAL SHIPPING sustainable development. I was very pleased to hear him single out the responsibility that oil refineries have regarding the availability of low-sulphur fuels, imploring and emphasizing the need for them to invest now in order to meet the needs of the shipping industry. Mr. Sekimizu raised the question of what could be done if there was not enough fuel available or if it was prohibitively expensive and whether government pressure could be put on to the refiners. He also stressed the need to accelerate the IMO study on the availability of low-sulphur fuel in order to understand if the oil majorsâ€™ investments in refineries are sufficient to meet the future demand when the prescribed global limit on sulphur emissions drops. Mr. Sekimizu hoped to target 2015 to carry out the study which should include what oil refiners can deliver in order to meet the 2020 deadline. In closing, the Secretary-General reminded the group that the cost for clean air should be borne by the global community as a whole. The lively discussion that followed included remarks which indicated that the other parts of society which are currently enjoying the use of higher grade fuels should be moving on to alternatives such as electric cars and subsequently freeing up cleaner fuels for the global fleet. What remains to be seen is how the oil refineries will environmentally dispose residual fuels, such as the bunker C fuel that the shipping industry has been disposing for them for years while in the background the oil majors have been profiting quietly.
Kaity Arsoniadis-Stein with Mr. Koji Sekimizu, Secretary-General of the International Maritime Organization. in order to meet the challenges arising from the continuously evolving shipping industry. Moderator John C. Lyras, Vice-Chairman, International Chamber of Shipping, emphasized the importance of continuously having to
look forward in the shipping industry. He noted that the shipping industry is an enabler of world trade and when regulations are made, the industry should be considered within this context. He also indicated support for
Season's greetings! From the team at IMS Marine Surveyors
Need for adaptation The first panel session included Thomas Rehder, President, European Community Shipownersâ€™ Association and Fotis Karamitsos, Deputy Director General, Transport, European Commission, who disclosed that the European Commission had decided to keep in place the 2004 Guidelines for State Aid to Maritime Transport, meaning that all European tonnage tax regimes, including Cyprus, would be maintained. The panel focused on the need for adaptation regarding new regulations and policies at an international level December 2013/January 2014 BC Shipping News 33
INTERNATIONAL SHIPPING the IMO, whose success is based on consensus and the need to be holistic, unequivocally stating that the IMO should be the overall regulator. Mr. Lyras acknowledged the importance of the need to create good policy with co-ordinated co-operation between the IMO and the EU.
owners, the panel included Professor Elias Karakitsos, Chairman, Global Economic Research; Thanassis Martinos, Managing Director, Eastern Mediterranean Maritime Ltd.; and Nick Roos, Head of Finance, Deutsche Bank. They focused on the difficulties the shipping industry currently faces in obtaining ship finance. Financing ships under the current Mr. Roos and Dagfinn Lunde (DVB economic scene Bank), who was in the audience, both Moderated by George Mouskas, noted that there is plenty of finance 1/2 pg v #3_Ad Del Comm 2/4/13 8:49 PM Page 1 President, Cyprus Union of Ship- available for ship owners, albeit at
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34 BC Shipping News December 2013/January 2014
higher costs. Mr. Roos stated that financing is available for owners who need to upgrade projects to keep existing vessels compliant with changing regulations, but that owners must accept equity risks, put more of their own cash on the table, and accept that debt risk would have tougher requirements from the banks. A turning point for fleets Moderated by Andreas Chrysostomou, Acting Director, Department of Merchant Shipping for Cyprus, more widely known as the immediate past Chairman, Marine Environmental Protection Committee of the IMO, the expert panel, which included Katharina Stanzel of INTERTANKO, Peter Hinchliffe of the International Chamber of Shipping, and Roberto Cazzulo of the International Association of Classification Societies, all agreed that shipping is not at a turning point (in relation to existing fleets and new “ecoship” design and shipbuilding) but that changes taking place constitute a natural evolution of the shipping industry. The panelists noted that the term “ECO-ships” was not very helpful. Ms. Stanzel emphasized the need for evidence-based measurements as too many variables make certainty problematic and a lot of claims for fuel savings are unsubstantiated. She joked that by the time all the calculations were added, a ship would eventually start producing fuel. The panelists cautioned about rushing to order new eco-ships stating that optimizing the existing fleet should not be ignored while waiting for the next big stride in technology. They emphasized the need to establish standards and control methods for the quality of fuels that are supplied to ships, as it is the quality of fuel that directly affects the emission of greenhouse gases. It is important that the fuel consumed by the global fleet is regulated just as land-based fuel is regulated. Regulations should be in place to ensure the ships receive the fuel they have ordered and paid for as specified on the bunker delivery note — the stumbling block being that the IMO cannot step ashore and regulate. Photo credit: BC Shipping News
INTERNATIONAL SHIPPING The future of propulsion fuels Moderated by our good friend Craig Eason, Lloyd’s List, this debate which included Geir Hoibye, The Business Sector’s NOx Fund, Norway; Sveinung Oftedal, Ministry of the Environment, Norway; and William Sember, American Bureau of Shipping, focused on the future use of alternative fuels such as liquefied natural gas, biofuels, methanol and other distillates. The main theme was the need to invest in the infrastructure required for the facilitation of the use of alternative fuels. The panelists agreed that LNG will become a major fuel supply and that batteries/fuel cells will be used for energy diversity. There was talk about future non-availability of heavy fuel oil and the concern about investments made in scrubbers to enable continued use of heavy fuel oil. Young executives’ session The panel was chaired by Despina Panayiotou-Theodosiou, President of WISTA, Cyprus, and the panelists were Katy Ware, the U.K.’s Permanent Representative to the IMO, Alison Jarabo-Martin, Managing Director of Fathom Shipping, and myself. The discussion was aimed at how young executives could establish themselves in the shipping scene. We shared our personal insights and experiences with young professionals and outlined the necessary tools and traits that could be beneficial in their careers. The key elements discussed included hard work, the importance of ethics and integrity, commitment to life-long learning, networking, and of course, a passion for the industry.
Kaity sat on the panel that provided insights into how young executives could establish themselves in the shipping industry. Administration, Mr. Soncini of SpecTec Group and Mr. Galanakis of Elvictor Group spoke about the growing shortage of seafarers which has become a global concern. The key message was that the need for officers is critical. They spoke of predictions that show a shortage of 60,000 officers — a shortage that would threaten the very future of the international shipping industry. Mr. Cotton spoke out against criminalization of seafarers. He made the point of defending criminalization but not criminals.
As a side note, I wish to elaborate that global international shipping treaties do not criminalize accidental pollution and The MARPOL Convention, 1973 (MARPOL) makes a fundamental distinction between accidental and deliberate pollution. The United Nations Convention on the Law of the Sea, 1982 (UNCLOS) points to monetary penalties as the normal sanction for pollution, specifically providing at Article 230 that “monetary penalties only may be imposed with respect to violations of national laws and regulations […] for
The human element in shipping The General-Secretary of the International Transport Workers’ Federation, Stephen Cotton, moderated this session which discussed the Maritime Labour Convention 2006. He stated the importance of decent working conditions for seafarers as an aspect of ensuring fair competition among ship owners, helping to meet the demand for quality shipping which is crucial to the global economy. The panelists, Mr. Hans Cacdac, of the Philippine Overseas Employment December 2013/January 2014 BC Shipping News 35
The panel concluded that the market would improve for all types of freight except crude oil that will improve but at a much slower pace.
Kaity stands with the President of the Republic of Cyprus, Mr. Nicos Anastasiades, who opened the conference with the Secretary-General of the IMO. the prevention […] of pollution of the marine environment, committed by foreign vessels in the territorial sea […]”. In Canada, not only do our laws provide for criminalization of seafarers for pollution, but also Canada’s legal regime provides for criminal conviction based on reverse onus. This means that Canada’s Constitutional right — to be presumed innocent until proven guilty — is not in place. Canada’s legal regime raises serious human rights issues and conflicts with Canada’s international treaty obligations under MARPOL and UNCLOS, which distinguish between accidental and intentional pollution and the legal process that should follow. The shipping industry has become increasingly uneasy
about the potential for criminalization of seafarers as well as their fair treatment. To place seafarers in such an uncertain position concerning their basic freedoms as they serve global trade is unacceptable, not to mention the knock-on-effect with respect to the recruitment and retention of well-qualified seafarers. It is also clear that many in our industry are reluctant to do business with jurisdictions in which domestic legislation might disregard a seafarer’s human rights. The industry at large supports the need to eliminate ship-source pollution and accepts the need for appropriate sanctions for deliberate violations of environmental rules. However criminal penalties without the right to be pressumed innocent in place is a blatant disregard for Canadian constitutionally protected fundamental human rights. Trends in shipping The organizers of the Conference were very shrewd in reserving this topic as the last panel discussion. Everybody gathered to hear the crystal ball predictions of the industry, particularly since Dr. Martin Stopford, of Clarksons Research Studies, was on the panel. The panelists which included Dagfinn Lunde of DVB Bank and Thomas Rehder, ECSA moderated by Captain Adami of the Cyprus Shipping Chamber, commented on how different the business of shipping is today and that investors must deal with a variety of challenges. Dr. Stopford commented that the fastest growing sector is the container industry while tankers are suffering because the United States is no longer a major importer of oil. He indicated that the market has a sizable surplus of ships, which may constitute 25 per cent of the global fleet. This surplus is being absorbed by slow steaming which will need to be realized before a real market is re-established and furthermore, that the charterers are soaking up all the profits. Uncertainty was really the only thing ship owners could be certain about. Furthermore, ship owners need a closer relationship with banks since the industry is relying on a lot of shipbuilding credit. The panel concluded that the market would improve for all types of freight except crude oil that will improve but at a much slower pace. Concluding remarks In conclusion, I would like to express my congratulations to the Republic of Cyprus in co-operation with the Cyprus Union of Shipowners and the Cyprus Shipping Chamber for organizing a truly successful and productive Maritime Cyprus 2013. I would be remiss if I didn’t make honourable mention of Andreas Chrysostomou. He, most likely, was the sole individual who masterminded and brought together a vast selection of globally authoritative speakers for this successful event, providing an intimate opportunity for an insightful exchange of views regarding the international shipping industry.
36 BC Shipping News December 2013/January 2014
Connecting the industry with tomorrowâ€™s shipping professionals The UBC Supply Chain Management Club is hosting its annual Careers Fair! Donâ€™t miss the opportunity to access this great pool of talent. Held at the UBC Sauder School of Business, the Careers Fair will offer your company a free booth to connect with talented students of diverse backgrounds in Transportation and Logistics, Finance, Accounting, Marketing, and several other specializations. Last year, the Careers Fair had 17 companies in attendance. This year, 20 spots are being held and they will fill fast. Guarantee a spot at this amazing event by contacting us today!
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38 BC Shipping News December 2013/January 2014
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The role of the Freight Forwarder in the dynamic Port Metro Vancouver
Robert Parker, Director Business Development – Western Canada , Nippon Express
ort Metro Vancouver is Canada’s largest and busiest port; it is a dynamic gateway for domestic and international trade and tourism as well as a major economic force that strengthens the Canadian economy. With the exciting growth in trade through the port, comes the growing relationship between port stakeholders and clients and the increased importance of the Freight Forwarder. What is the current role of the Freight Forwarder and how, with expanding port capabilities coupled with the solutions extended via the Freight Forwarder, will Vancouver be positioned as a primary centre for North American Supply Chain competencies? For Vancouver, Canada, and North America, the local Freight Forwarder plays a very important role in commerce and international carriage of goods. Traditionally, the Freight Forwarder was the link between the owner of the goods and the carrier and provided forwarding or clearing services. The Forwarder acted as the agent for the cargo owner, and in some cases, at the same time for the carrier. With the advent of containerization, the Forwarder undertook activities such as packing and cargo consolidation on their own account — as principal. In modern days, the Freight Forwarder has adopted a new role in which he is not only assisting all
With the exciting growth in trade through the port, comes the growing relationship between port stakeholders and clients and the increased importance of the Freight Forwarder.
parties in the transportation of goods, but is ‘undertaking’ the carriage by his own means of transport or by making arrangements with other transport providers. This new role has placed the Freight Forwarder in a unique position whereby they can act progressively as an extension of the clients’ business. If you take a look at the growth of third party logistic (3PL) distribution centres near the Vancouver port, you will soon realize the Freight Forwarder is extending full-service solutions that interface in a partnership role with their clients. Big box retailers like Home Depot have, as of late, built large North American Distribution Centres near the Vancouver port because they are aware that it is a unique geographic portal to North American distribution and the port itself is expanding capabilities and offerings. End-to-end supply chain solutions now require more flexibility to changing circumstances and contingency routing plans as traditional port options have little room for future growth. In a broad sense, the activities of a Freight Forwarder fall under the classical Roman contract type of man
datum (term for washing of the feet), but nowadays, a distinction has to be made between the three different roles a Forwarder can fulfill. A Freight Forwarder can act as a mere agent on behalf of his customer or the performing carrier; as the contracting carrier assuming carrier liability without performing the carriage himself; or as the performing carrier. The liability of the Freight Forwarder depends on its role and the governing legal regime. From these activities, the Freight Forwarder supplies five core pieces: 1. Logistics 2. Statutory compliance 3. Risk management 4. Finance and payment 5. Cross-function integration Going forward with this man datum, the Freight Forwarder bridges the gap between the port and the existing client relationship with the need for expert assistance. Freight Forwarders can provide the systems the port and client need for smooth transition of product from ship to store. The freight forwarding companies also provide Subject Matter Experts who create a set of KPI’s (key performance indicators) that assist the port in their expansion efforts while maintaining performance targets for the ultimate
December 2013/January 2014 BC Shipping News 39
Nippon Express Canada recently opened a 160,000-square-foot, state-of-the-art multivendor distribution facility in Richmond, B.C. client. The Freight Forwarder is able to offer knowledge of market trends and complexities and provide alternative solutions to move the goods to market while integrating in a client partnership. The Freight Forwarder is the primary conduit for sourcing a valuable supply chain solution and ensuring there is an infrastructure that aids the client to meet future business plans and goals. The future of Port Metro Vancouver and the Freight Forwarder will grow
as companies are looking for solutions that build value and efficiencies in their supply chain process. Vancouverbased Freight Forwarders, whom have invested in Distribution Centres near the port and have created efficiencies in the supply chain process and manage cost controls, will see a bright future. Of course with the exciting, breakneck growth of Port Metro Vancouver as the gateway between Asia and North America and the freight forwarding industry, are the inevitable
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www.atpi.com 40 BC Shipping News December 2013/January 2014
infrastructure problems that can plague present operations. Over the past 10 years, these problems have changed before our eyes, including: • The opening of the Port of Prince Rupert with one full berth coupled with extensive rail ties to both Canada and the United States. • Construction of the perimeter highway from Delta Port that eases congestion to the TransCanada Highway and border crossings into Washington State. In addition to the projects mentioned above, Port Metro Vancouver has eight other major infrastructure projects in place to assist in the growth of the Canadian economy as well as the growth of British Columbia as a major port destination on the West Coast. The freight forwarding industry is poised to assist and reap the benefits of all these plans and we see the long term growth just as we called it in our heading: DYNAMIC!! Nippon Express Canada recently opened a 160,000-square-foot, state-ofthe-art multi-vendor distribution facility in Richmond B.C., on the new Port Metro Vancouver lands and serves their client base with a global footprint as the fourth largest International Freight Forwarder in the world. Nippon Express was ranked third by Armstrong & Associates as a Top 50 Global 3PL with 20.321 USD Billion in Gross Logistics Revenue in 2012.
Cargo Logistics Canada Conference and Expo Join Port Metro Vancouver, Prince Rupert Port Authority plus 75 other expert presenters and panelists at the Cargo Logistics Canada Conference and Expo. Cargo Logistics Canada is coming to the Vancouver Convention Centre West on January 29 and 30, 2014 and will showcase over 125 exhibitors featuring products, services, technologies and equipment designed to optimize an entire supply chain. Trade show attendance is FREE if you register before December 13. To learn more please visit: www.cargologisticscanada.com. Registration is now open.
Marine domain awareness:
The foundation of environmental navigation By K. Joseph Spears
roposed energy exports on Canada’s West Coast have focused public interest and government attention on Canada’s ocean management regime which has evolved over the last century. For example, the province of British Columbia commissioned the West Coast Spill Response Study on oil spill response preparedness which was released this fall. The executive Summary of the report stated: “The Government of BC has the opportunity now to seek consensus among the agencies, companies, and public interest organizations who have a stake in the safe operation of marine vessels in establishing exactly what “world class” looks like and identifying and pursuing the voluntary and/or legislated means of achieving it.” Marine Domain Awareness (MDA) is an important and underlying foundation of ocean management and, increasingly, the regulation of shipping in coastal waters. MDA needs to enter into the thinking of those engaged in discussion about the development and evolution of a “world class oil spill response regime” especially at the prevention stage of a risk managementbased approach to marine incident response. The International Maritime Organization (IMO) defines MDA as the effective understanding of anything associated with the maritime domain that could impact the security, safety, economy, or environment. The maritime domain is defined as all areas and things of, on, under, relating to, adjacent to, or bordering on a sea, ocean, or other navigable waterway, including all maritime-related
Marine Domain Awareness (MDA) is an important and underlying foundation of ocean management and, increasingly, the regulation of shipping in coastal waters.
activities, infrastructure, people, cargo and vessels, and other conveyances. While achieving MDA may seem straightforward, it is not at all simple. During a February 2007 presentation, Lieutenant General Dumais, the commander of the CF’s Canada Command, explained that: “Maritime domain awareness is difficult to define as it is neither an operation nor a mission — you do not do MDA, you achieve it. All agencies contribute to it. It knows no owner but responds to many masters who readily use it to achieve their respective goals.” Therein lies the problem with developing a robust MDA capability. There is no lead or co-ordination function that has the legislative framework with the legal process to share
information between federal departments. It doesn’t presently exist other than in the marine security area where the Marine Operation Security Centres (MOSC) have been successfully developed to deal with marine security threats. For example, Australia has done a lot of work in this area and has created a National Marine Domain Centre. In the marine security field, Transport Canada states: “Maritime domain awareness requires a co-ordinated effort within the federal government as well as with stakeholders and global partners.” It is the fundamental underpinning of the regulation of maritime shipping and ocean governance in Canada’s West Coast that there is a recognized maritime picture (RMP) of marine traffic
Satellite-AIS information plotted on a world map easily identifies vessel traffic patterns. December 2013/January 2014 BC Shipping News 41
MARINE DOMAIN AWARENESS
A quick check of websites like IHS Fairplay (www.ihs.com) or www.marinetraffic.com can provide real-time vessel traffic information. The above provides a good illustration of the amount of traffic that transits B.C.’s waters. within Canada’s jurisdiction. This is not just important from a defence and security standpoint but also covers all aspects of ocean governance, including search and rescue, fisheries management, pollution response, and administering marine protected areas. In an earlier article in BC Shipping News, I examined Canada’s vessel traffic requirements which are based on voluntary call-in systems — something Canada pioneered and is set out in the Canada Shipping Act, 2001. The Canadian Coast Guard has only limited coastal radar systems that leave many radar coverage gaps on the coast and its range offshore is limited from shore-based stations. Canada also uses PAL (Provincial Aerospace Ltd.), an aviation company which provides civilian aircraft for airborne maritime surveillance. It is critical to have MDA for ocean management across a wide range of government departments, coastal communities, First Nations, and the private sector to have a bigpicture overview of what is happening in Canada’s ocean for both destination shipping to or from Canada as well as for in-transit shipping, i.e., those vessels transiting Canadian waters, such as American-flagged Valdez-originating oil tankers in Canada’s Exclusive Economic Zone (EEZ) or other marine traffic on a North Pacific great circle route. This is especially important to be able to make proper ocean management decisions as new energy projects develop on the West Coast and marine traffic increases in volume, complexity, and environmental risk. There was a time when the signal station at Prospect Point at the entrance to Vancouver Harbour used flags and symbols to provide the necessary MDA for arriving commercial vessels of the day. Armed with a good set of binoculars, the practice was deemed to be enough. Those simpler days have long passed. Canadian jurisdiction extends to over nine million square kilometres of land, 891,000 square kilometres of fresh water and 3.4 billion square kilometres of ocean. (Source: Statistics Canada, 2005). Canada’s size presents a challenge for marine regulation and Canadian MDA. Achieving MDA in Canadian West Coast waters is made up of a variety of government departments utilizing a 42 BC Shipping News December 2013/January 2014
multitude of sensors — Marine Communication and Traffic Services (MCTS); shore-based radar; civilian, military and government air assets; in addition to space-based assets. It is a system of systems. Earlier articles in BC Shipping News have looked at some of these subjects including pilotage, environmental navigation, maritime air and SAR-JRCC Victoria. Many agencies collect this marine information for their own specific statutory mandated purposes which can be inputted into MDA. While the information may exist “in the system”, it may not be readily shared given there is no mechanism to do so. (One example was the drifting Japanese trawler sunk by the U.S. Coast Guard in the spring of 2012.) These agencies all provide pieces of information about what is happening in Canada’s ocean space on the West Coast. Intertwined with that is commercial information and pilotage information. It is clearly a web of interconnecting pieces with no central agency co-ordinating MDA on Canada’s West Coast. We need to bring this together in addition to the marine security context. Noted Canadian MDA expert Captain (N) (retired) Peter Avis wrote in 2010 : “an ‘effective understanding’ of the Maritime Domain must come from a knowledge of the facts — whether they originate from geo-spatial surveillance and reconnaissance data or intelligence analysis and assessment. By finding the means to bring individual parcels of information from different departmental sources together in a central pool, then analyzing the data and fusing it with background intelligence data through comparison and selection, we can create a common picture.” Anyone working in the marine industry has developed their own waterfront telegraph service to find what’s going on when it is needed. In the United States, there is a national MDA policy that sets out this information-sharing. While not without its problems given the variety of data sources, the work is progressing. Canada needs to develop a similar approach. Automatic identification system (AIS) is a ship-based anticollision system mandated by the IMO and developed to provide additional information to seafarers engaged in vessel navigation. AIS operates on a VHF frequency with a range of up to 50 kilometres. It emits a continuous signal chockfull of data. Every commercial vessel of 300 GRT must have an AIS transponder which provides detailed information on the particular ship. However, from space, the same lowenergy signals can be detected at up to 400 miles by satellite in low-earth orbit and AIS data has been recovered at the International Space Station (ISS) in model demonstrations. These AIS signals are tracked by the Canadian Coast Guard using the Long Range Identification Tracking (LRIT) system from shore stations which merges radar signals and AIS. However, the range is limited. As the AIS has matured, this data has become very accurate and reliable. As we have seen in the recent Costa Concordia grounding, AIS provides a detailed track of the vessel — rocks and all. AIS is also a boom for MDA. These AIS signals provide a variety of data with respect to individual vessels over a broad area. Canada has been at the forefront of thinking and technology with respect to MDA, including increased use of
MARINE DOMAIN AWARENESS space-based assets to gain an understanding of the regulation of maritime activity which can be cost-efficient and effective, and can provide decisionmakers with real-time information. That real-time element is critical in pollution countermeasures, marine law enforcement, security and defence, and search and rescue. The solid foundation provided by a robust MDA will also grow in importance in environmental navigation for such things as preventing whale/ship collisions when coupled with adequate and complete oceanographic data. It is a necessary tool of a world class ocean management and pollution response regime. Technology has now developed and improved to extend marine domain awareness over much of Canadian waters in a very cost-effective fashion. This involves high-frequency surface radar as well as long-range information tracking systems (LRIT) used by the Canadian Coast Guard and space-based data recovery of AIS transponders to provide a global picture of commercial vessels in real time. Canada has pioneered this space based technology and the Canadian Space Agency has been a major supporter of the use of micro-satellites that collect this AIS data, commonly called S-AIS. Space-based AIS is very cost-effective and provides both broad area and global coverage. ExactEarth, a COMDEV subsidiary and a Canadian firm, has developed the data integration and provides this to the Canadian government for use in ocean management. This AIS data, when used by decisionmakers is a powerful source of realtime information for ocean managers across a broad spectrum. However, this will require data fusion across a wide number of federal departments who have jurisdiction over various aspects of ocean governance. For example, S-AIS was used very successfully during the 2010 Olympic Games to provide real-time marine information in the security context. It is also important, when it comes to data fusion, for the private sector and interested parties to have access to this data. For example, this can assist fishing openings and steer vessels clear of marine mammals in
coastal waters of the EEZ. As marine traffic increases in volume and size, this source of real-time vessel information will develop and serve as an enhancer of protection of the marine environment and safety of life at sea. S-AIS is another tool in the MDA sensor toolbox. We need to get the marine agencies and marine industry talking about this important issue. We have the technology to get this right. Our waters and our ocean governance regime will become more robust and will come back to Canada’s roots as a pioneer in environmental navigation.
The result could well be a “world class” MDA regime that underlies Canada’s pollution response capability, a key element of environmental navigation. Joe Spears is a maritime barrister at Straith Litigation Chambers and Principal of Horseshoe Bay Marine Group. He hosted Canada’s Ships and Space workshop in Ottawa in 2009 on behalf of COMDEV / Exact Earth. He maintains MDA in the port of Horseshoe Bay. Joe can be reached at firstname.lastname@example.org or Joe.email@example.com
December 2013/January 2014 BC Shipping News 43
WORLD SPILL RESPONSE Part 4: Australia’s oil spill response:
Another unique response regime
n this, the fourth and final part of our series looking at world oil spill response regimes, we take a look at Australia. As we’ve seen so far — and have already concluded — the obvious take-away from these comparisons and reviews is that there is no single “world-leading” regime that could, in its entirety, be implemented to another geographic location and still be as effective. Each regime has been developed based on geography, weather patterns, shipping traffic, experience with past incidents, and other factors that speak to the uniqueness of each region of the world. A few clarifying notes: our review of Australia’s oil spill response regime predominantly focuses on the 2011 version of the National Marine Oil Spill Contingency Plan which lies within the “National Plan to Combat Pollution of the Sea by Oil and Other Hazardous and Noxious Substances”. The National Plan, along with the “National Maritime Emergency Response Arrangements” (NMERA), underwent a review that was released in October 2012 by the National Plan Management Committee but has not yet resulted in an updated National Marine Oil Spill Contingency Plan. Over 45 outcomes were noted in the Review, covering such issues as integration of the National Plan and the NMERA; adoption of standardized incident management systems; the upgrade of assets in identified highrisk areas; etc. The Review is available through the Australian Maritime Safety Authority’s website (www.amsa. gov.au). Also, for the sake of simplicity and because B.C. does not have an offshore petroleum industry, we have not included this sector in our comparison but must note that this part of the industry brings with it additional response assets available for major incidents. In context A few facts are helpful to provide some context for Australia’s
...the obvious take-away from these comparisons...is that there is no single “world-leading” regime that could, in its entirety, be implemented to another geographic location and still be as effective.
regime: In addition to the mainland of the Australian continent, the Commonwealth of Australia includes the island of Tasmania and numerous smaller islands. It is the sixth largest country in the world with a population of 23.1 million (as of August, 2013) which is mainly concentrated in the eastern states. There are six states, two major mainland territories, and eight minor territories (mainly the islands surrounding the mainland). Australia’s mainland has a total coastline length of 35,876 kilometres with another 23,859 kilometres of island coastlines for a total of close to 60,000 kilometres. By comparison, Canada’s total coastline is about 243,000 kilometres — B.C.’s coastline is about 27,000 km. While shipping is accredited with carrying 90 per cent of the world’s trade, in Australia, that number jumps to 99 per cent. In 2011/12, over one billion tonnes of cargo moved through Australian ports. Just over 4,800 uniquely identified cargo ships made a total of 32,400 port calls. Of those calls, about 5,200 were from tankers (including oil, chemical, LNG, and LPG) in 669 unique vessels. Comparing those numbers to B.C. (albeit noting a very different system of measurement), according to the recent Provincial West Coast Response Study, a total of 29,185 vessel transits were recorded at six passage lines throughout the province for 2012. Of those, 1,634 were tanker transits (chemical, LPG/LNG, and oil) from 321 unique vessels (roughly half the number of Australia). The majority of activity was in the south, through Neah Bay and Point Roberts, with the majority of tanker transits heading to U.S. ports in Washington State.
44 BC Shipping News December 2013/January 2014
The plan(s) In 2005, the Australian Transport Council (now the Standing Council on Transport and Infrastructure) began to take steps to establish an integrated national approach to Emergency Response arrangements. The Intergovernmental Agreement on the National Maritime Emergency Response Arrangements (NMERA) was brought in by 2008 and established a Maritime Emergency Response Commander (MERCOM) to act on behalf of the Australian Maritime Safety Authority (AMSA). The MERCOM is responsible for the management of responses to shipping incidents in Commonwealth waters, with intervention powers to take such measures as may be necessary to prevent, mitigate or eliminate a risk of significant pollution, including the power to direct a port to release a tug to provide emergency assistance to a vessel at risk or designate a place of refuge for a ship in emergency situations that present a risk of significant pollution. The MERCOM has appropriate statutory powers to enable effective decisionmaking consistent with the aim of the NMERA. Incidents requiring the intervention of the MERCOM have occurred infrequently. The National Plan Australia’s “National Plan to Combat Pollution of the Sea by Oil and other Noxious and Hazardous Substances” outlines the roles and responsibilities of the Commonwealth Government (i.e., comparable to our federal government); State and Northern Territory (State/NT) Governments (playing a role in the response regime similar to our Canadian Coast Guard); and the oil, shipping, ports, chemical and
WORLD SPILL RESPONSE petroleum exploration and production industries. Together with the InterGovernmental Agreement (which formalizes and provides specific details or responsibilities), the National Plan consists of components that are placed within a hierarchy or authority (from top to bottom): the National Marine Oil and Marine Chemical Spill plans; the Marine Pollution Contingency Plan for the Great Barrier Reef Marine Park; State/NT plans; and port and industry plans. The National Marine Oil Spill Contingency Plan As a part of the Marine Pollution Contingency Plan, the oil spill contingency plan focuses on Preparedness, Response, and Response Support. Preparedness — In addition to providing an introduction to the various agencies and organizations with authority and responsibility for managment of the National Plan and, further, the Oil Spill Contingency Plan, the Preparedness section outlines some of the key base requirements for implementation of an oil spill response. Some items of note: • The first three agencies recognized (the Australian Transport Council, the National Plan Management Committee, and the National Plan Operations Group) provide high-level oversight and advice on strategic direction of the National Plan while the fourth — the Australian Maritime Safety Authority (AMSA) — is the managing agency and responsible for maintaining the National Marine Oil Spill Contingency Plan (more detail on the role of the AMSA below). • Responsibility for responding to oil spills around Australia are shared between the AMSA, State/NT Governments, Port Authorities and Corporations, and the oil industry. Within three nautical miles of the coast, State/NT Governments have the authority over the spill response including within ports (but excluding terminals); beyond the three-nautical mile limit, the AMSA is the relevant authority
(except for rigs, platforms and pipelines which are the responsibility of the oil company). Like the role of the Canadian Coast Guard, Statutory Agencies will oversee response actions by Combat Agencies — i.e., those organizations that undertake spill operations. Levels of response are set out in three Tiers: 1) up to 10,000 tonnes; 2) between 10 and 1,000 tonnes; and 3) above 10,000 tonnes. Generally, the oil industry subscribes to AMOSC (the Australian Marine Oil Spill Centre), a subsidiary of the Australian Institute
of Petroleum (AIP). AMOSC (described in detail below) holds a Tier 3 stockpile and provides response training and other services. Through AMOSC, the industry has access to AMOSplan — co-operative arrangements for response (much like mutual aid agreements). Australia follows the Oil Spill Response Incident Control System. The system is designed to provide for flexibility yet compatibility between agencies and events, making it easier to escalate or downsize responses as required. Leading the OSRICS is the Marine Pollution Controller
December 2013/January 2014 BC Shipping News 45
Photo source: www.abc.net.au
WORLD SPILL RESPONSE
The National Plan was activated in 2012 when the MV Tycoon cargo vessel broke free from its mooring at Christmas Island, spilling close to 102 tonnes of intermediate fuel oil. (representing the Commonwealth or State/NT), followed by the Incident Controller (responsible for management and co-ordination of response operations). • Additional organizations that are available to provide advice and assistance include Emergency Management Australia; the Department of Sustainability, Environment, Water, People, and Communities; National Response Support Teams; and others. • Training programs are conducted at three levels: 1) operator level personnel; 2) middle management personnel responsible for managing operational response; and 3) senior government and industry personnel responsible for high-level decisions. Response — Covering such things as measures to be employed, priorities for overall protection, and reporting protocols, the Response section also includes response options, including surveillance, control and recovery, application of dispersants, shoreline clean up, and, in rare cases, bioremediation. Response Support — Through the AMSA, Australia maintains an Oil Spill Response Atlas (OSRA) which contains all the information needed to be able to determine an appropriate
response. Datasets available through the OSRA include such things as habitat, nautical charts, bathymetry, locations of National Plan equipment stockpiles, aerial photography, etc. The AMSA also manages the provision of the Oil Spill Trajectory Model which can identify speed of movement, weathering, and spreading characteristics of the oil under the influence of prevailing currents and weather conditions. Additional information resources to aid in oil spill response include a library of approximately 1,000 different oils and their properties; a computer database that lists the type, quantity, location, and availability of pollution control equipment; protocols for charter hires and hires of spray aircraft; defence force assistance parameters; and salvage arrangements. The players There are three main groups of participants in Australia’s oil spill response regime: Management (to provide highlevel strategic direction and planning); Statutory Agencies (responsible for overseeing response actions); and Combat Agencies (operational responsibility to take action in response to an oil spill) . The Australian Maritime Safety Authority (AMSA) is the overriding organization that spans all three disciplines.
46 BC Shipping News December 2013/January 2014
Management The management structure of the National Plan, and matters related to setting policy for oil spill response, lies with the Standing Council on Transport and Infrastructure with support from such agencies as the National Plan Management Committee and the National Plan Operations Group — both established to provide advice on strategic policy-making and operational aspects. As noted previously, the AMSA is the managing agency for the National Plan. It has, as its principal functions: • Promoting maritime safety and protection of the marine environment; • Preventing and combating shipsourced pollution in the marine environment; • Providing infrastructure to support safety of navigation in Australian waters; and • Providing a national search and rescue service to the maritime and aviation sectors. Specifically related to oil spill response, the AMSA is responsible for acting as both a Statutory and Combat Agency for incidents in Commonwealth waters (i.e., beyond three nautical miles from shore) as well as providing support to State/NT Statutory and Combat Agencies for incidents within the three-nautical mile limit. It works with State/NT government agencies; and the shipping, ports, oil, salvage, exploration and chemical industries to ensure an effective response. Equipment provided by AMSA is generally reserved for Tier 2 and 3 spills and, in addition, they have a number of contracts for outsourced resources (for example, aircraft for dispersant spraying operations). AMSA regularly provides training courses for roles that include: Incident Management Team, Incident Controllers, Planning Officers, Operations Officers and Logistics. In 2011, AMSA trained close to 600 personnel. State/NT Statutory Agencies As part of the National Plan, each State and Northern Territory has its own statutory and/or combat agencies that are responsible for responding to marine oil spills within their
WORLD SPILL RESPONSE
jurisdictions. To use one example, the Western Australia’s Oil Spill Response Co-ordination unit has a mandate to: • Develop marine oil spill response capabilities. • Provide resources and support during response operations. • Maintain equipment to enable an effective response. • Develop and deliver appropriate training programs. • Assist ports and industry in developing marine oil spill contingency plans. • Provide 24-hour on-call support for marine oil spills. • Develop national networks to ensure WA is up to date with oil spill response techniques. • Maintain the Oil Spill Response Atlas (OSRA). • Raise community awareness about the impact of marine oil spills. In addition, State Response Teams are made up of front-line marine oil pollution responders who provide guidance to other responders and, in the event of a major incident, have the qualifications to take on the role of team leader. Members of the SRT are drawn from organizations such as government agencies, port authorities and industry. Combat Agencies Australian Marine Oil Spill Centre (AMOSC) and the Australian Institute of Petroleum (AIP) — Established in 1991 in Geelong, Victoria, AMOSC is a subsidiary of the AIP and is financed by nine participating oil companies and others that carry out the majority of the oil and gas production, offshore pipeline, terminal operations and tanker movements around Australia. AMOSC provides a central stockpile of industry-owned oil spill response equipment that is on 24-hour standby. In addition to its own staff, AMOSC is able to access personnel from a number of major oil, gas, and shipping companies. AMOSC also co-ordinates the industry’s mutual aid arrangements. AMOSC is a member of the Global Response Network which provides access to additional resources. In 2009, AMOSC formed an alliance with Oil Spill Response Limited (OSRL), the
It is difficult to imagine the ability of governments and industry to meet this level without considerable cost to all — especially the taxpayer and consumer.
world’s largest organization for oil spill response. The alliance allows AMOSC to call on OSRL in the event of a major incident. Oil Response Company of Australia (ORCA) — As the largest private provider of contract spill response training and oil pollution equipment maintenance services in Australia, ORCA is fully trained to respond to spill incidents (both onshore and offshore) and are used in a number of roles, including as the primary response team, a supplement to other teams or as replacements or relief teams. They also conduct on-site evaluations of equipment, response capabilities and maintenance regimes as well as provide training courses to government and industry stakeholders. Polluter pays Like all other regimes we have reviewed, Australia ascribes to the International Convention of Civil Liability for Oil Pollution Damage 1992. The Convention requires tanker owners to maintain insurance to cover pollution damage — the amount varies depending on the size of the tanker and can be up to a maximum of A$170 million. Supplementary compensation is also available through the International Convention of the Establishment of an International Fund for Compensation for Oil Pollution Damage for a total compensation of about A$1.4 billion. Spills from ships other than oil tankers are required to carry compulsory insurance under the International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001. Conclusion As we’ve noted before, direct comparisons to spill response regimes in other parts of the world is impossible. There is no single ‘world-leading’ oil spill response regime that could be implemented anywhere else except the country — and even the region — for
which the regime was developed. Given each country’s own unique characteristics and their own unique experiences with marine incidents, the most that can be taken from these reviews are the small nuggets of gold (as noted in our first interview with Toni Frisby, Western Canada Marine Response Corporation). Things like Norway’s collaboration and integration of all response activities; the frequency with which Britain continually reviews and updates their response plans; or U.S. state requirements for tankers to have a response capacity equal to the tonnage of oil carried. And so it is with our comparison to Australia. The strength of their support mechanisms, such as the Oil Spill Response Atlas and their extensive supplies of equipment are both aspects of that regime that would surely add value to B.C.’s regime. One thing that is a certainty given the significant focus on West Coast spill response capabilities and the desire to ‘bring it to the level of a worldclass regime’, is that the costs involved will be significant. It is notable that all of the regimes studied over the past four issues of BC Shipping News have had an offshore petroleum industry which has contributed greatly to equipment and asset resources. It is difficult to imagine the ability of governments and industry to meet this level without considerable cost to all — especially the taxpayer and consumer. Now that there are three reviews focused on West Coast oil tanker safety — the Provincial study on West Coast Spill Response, the Standing Senate Committee on Energy, the Environment and Natural Resources’ Study of the Safe Transport of Hydrocarbons by Pipelines, Tankers and Railcars in Canada; and the Federal Government’s Expert Tanker Safety Panel Review — it remains to be seen which elements of international regimes can — or will — be implemented here in B.C. BCSN
December 2013/January 2014 BC Shipping News 47
Corporations may be criminally liable for a supervisor’s negligence By James E. Vander Woude
A lawyer with Bernard LLP, Vancouver
hat does an Ontario court decision regarding a tragic construction accident have to do with the maritime sector? A recent decision of the Ontario Court of Justice shows that corporations doing business in Canada may be held criminally liable for the negligent actions of even mid-level managers and supervisors. This is in addition to corporate liability under federal and provincial occupational health and safety legislation. In R. v. Metron Construction Corporation, 2012 ONCJ 506, the Ontario Court of Justice used relatively recent Criminal Code provisions to hold Metron Construction Corporation (“Metron”) liable for the criminally negligent actions of a site supervisor. The court sentenced Metron to a $200,000 fine, subsequently increased to $750,000 on appeal. Background In September 2009, Metron agreed to restore concrete balconies on two high-rise buildings in Toronto. Metron contracted with a project manager who in turn hired a site supervisor named Fayzullo Fazilov. Metron acquired a number of “swing stages” from a local supplier to carry out the restoration work. Swing stages are platforms with railings that are suspended from cables to allow workers access to the vertical surfaces of buildings. Safety regulations mandated by Ontario health and safety legislation require all workers on a swing stage to be attached to a safety line.
A recent decision of the Ontario Court of Justice shows that corporations doing business in Canada may be held criminally liable for the negligent actions of even mid-level managers and supervisors.
By October 2009, Metron needed more swing stages. The local supplier was out of stock, so Metron sourced two swing stages from an Ottawa-based supplier. These swing stages seemed to be new but, contrary to Ontario health and safety regulations, lacked any markings, information or labels regarding maximum capacity. They arrived without a manual, instructions, or design drawings prepared by an engineer. Metron did nothing to address or remedy these shortcomings. The accident On December 24, 2009, near the end of the day, five construction workers and the site supervisor, Fazilov, climbed onto a swing stage from the 14th floor of the apartment building where they had been working. Only one of the men was attached to a safety line. Almost immediately the swing stage collapsed, and five of the six men (those not attached to safety lines) plunged some 14 floors to the ground. Four of the five men, including Fazilov, died from the fall. The fifth suffered serious injuries. The Court found that the regular practice on the worksite had been for only two workers at a time to use the swing stages, with both workers connected to safety lines.
48 BC Shipping News December 2013/January 2014
Subsequent testing revealed that the swing stage had not been properly constructed and was not safe for even the usual load of two workers, much less six. Toxicology results revealed that three of the four deceased — including Fazilov — had likely been smoking marijuana just prior to the accident. Criminal negligence in Canada The Criminal Code is federal legislation and applicable in all Canadian jurisdictions. Section 219 says: 219. (1) Every one is criminally negligent who (a) in doing anything, or (b) in omitting to do anything that it is his duty to do, shows wanton or reckless disregard for the lives or safety of other persons. Metron and the Crown agreed that Fazilov had omitted to take reasonable steps to prevent bodily harm and death when he permitted: • six workers to board the swing stage when he knew or should have known that the usual practice was two workers; • six workers to board the swing stage knowing only two lifelines were available; and • workers under the influence of an
LEGAL AFFAIRS illegal substance, marijuana, to work on the site. Corporate liability for negligence at common law Until recently, under the common law, a corporation was only liable for the criminal negligence of a “directing mind” of the corporation. The Supreme Court of Canada in the 1985 decision R. v. Canadian Dredge & Dock Co.,  1 S.C.R. 662, said: The identity doctrine merges the board of directors, the managing director, the superintendent, the manager or anyone else delegated by the board of directors to whom is delegated the governing executive authority of the corporation, and the conduct of any of the merged entities is thereby attributed to the corporation. (page 693) So why did Metron plead guilty to Criminal Negligence Causing Death? A mere site supervisor hired for a specific project was surely not a “directing mind” of Metron. The answer lies in legislative changes long sought by labour unions and finally implemented following a tragic 1992 mining accident. A catalyst for reform The Westray Mining Disaster changed the face of corporate liability for criminal negligence. In 1992, a methane explosion in the Westray Mine in Nova Scotia killed 26 miners. Although a Royal Commission found that mine management had comprehensively failed to operate the mine according to industry safety standards, attempted prosecution of two mine managers and the owners were unsuccessful. Public outcry led to revamping of the Criminal Code. The new provisions increased corporations’ responsibility for the negligent actions of supervisors and managers.
(a) acting within the scope of their authority (i) one of its representatives is a party to the offence, or (ii) two or more of its epresentatives engage in conduct, whether by act or omission, such that, if it had been the conduct of only one representative, that representative would have been a party to the offence; and (b) the senior officer who is responsible for the aspect of the organization’s activities that is relevant to the offence departs — or the senior officers, collectively, depart — markedly from the standard of care that, in the circumstances, could reasonably be expected to prevent a representative of the organization from being a party to the offence. A “senior officer” is defined as “a representative who plays an important role in the establishment of an organization’s policies or is responsible for managing an important aspect of the organization’s activities and, in the case of a body corporate, includes a
The Shape of dventure.
director, its chief executive officer and its chief financial officer;” An “organization” includes a corporation, and a “representative” of an organization includes: “… a director, partner, employee, member, agent or contractor of the organization; Finally, section 217.1 says: Duty of persons directing work 217.1 Every one who undertakes, or has the authority, to direct how another person does work or performs a task is under a legal duty to take reasonable steps to prevent bodily harm to that person, or any other person, arising from that work or task. The Ontario Court of Justice summarized the dramatic impact of these changes:  These changes in the criminal law among other effects “eliminate[s] the prosecutor’s duty to prove that a person is the directing mind of the Corporation” …and … “clearly extends the attribution of the criminal corporate liability to the actions of mid-level managers” such as Mr. Fazilov.
The Shape of dventure.
Corporate liability for negligence under the Criminal Code Section 22.1 of the Criminal Code says: 22.1 In respect of an offence that requires the prosecution to prove negligence, an organization is a party to the offence if December 2013/January 2014 BC Shipping News 49
LEGAL AFFAIRS These new provisions had the cumulative effect of making a corporation criminally liable for the negligence of its middle managers and supervisors. Verdict and sentencing In the Metron case, the Court agreed that Fazilov was a “senior officer” of Metron, and therefore Metron was liable for Fazilov’s negligent actions. The Court found Metron guilty of Criminal Negligence Causing Death. The Court considered various factors in sentencing, including Metron’s previously good safety record and the impact of the sentence on Metron’s “economic viability”. The Court sentenced Metron to a fine of $200,000 plus a Victim Fine Surcharge of 15 per cent ($30,000). The Crown appealed the sentence on the grounds that it was “manifestly unfit”. In 2013, the Ontario Court of Appeal increased the sentence to a fine of $750,000, citing the intent of the new Code provisions to hold corporations responsible for the conduct and
supervision of their representatives, and the “extreme” criminal negligence of Metron’s site supervisor. The Court of Appeal emphasized the importance of denouncing and deterring unsafe behaviour at paragraph 115: A sentence consisting of a fine of $200,000 fails to convey the need to deliver a message on the importance of worker safety. Indeed, some might treat such a fine as simply a cost of doing business. Workers employed by a corporation are entitled to expect higher standards of conduct than that exhibited by the respondent. Denunciation and deterrence should have received greater emphasis. They did not. The sentence was demonstrably unfit. Conclusion The Metron decisions are significant because of the size of the fine — $750,000 is one of the largest fines ever levied under occupational health and safety prosecutions in Canada — and because the relevant Criminal Code
50 BC Shipping News December 2013/January 2014
provisions have until now rarely been used. It is important to understand that under Canadian law, a corporation may be liable for the negligent actions of its mid-level managers and supervisors not only under provincial occupational health and safety legislation like B.C.’s Workers Compensation Act but also under the federal Criminal Code. Importantly, unlike most occupational health and safety legislation, the Criminal Code does not provide for a maximum fine. There are as yet no reported section 22.1 cases in British Columbia, but if British Columbia courts follow the reasoning in Metron then it becomes all the more important for corporations doing business here to ensure that they hire competent, reliable and responsible people for mid-level management and supervisory positions. James Vander Woude is a lawyer with Bernard LLP and can be reached at firstname.lastname@example.org.
TECHNOLOGY BARR Plastics reaches milestone in holding tank size.
experience in the distribution of plastic tanks and liquid handling products, BARR established their custom fabrication and plastic welding division in the late ‘90s and manufactures custom plastic tanks ranging anywhere from five gallons to over 2,500 gallons. They also handle many repairs and welding of fittings onto these tanks. The range
of products built by the BARR team has grown to include a full range of liquid and materials-handling products for a variety of applications, from chemical storage tanks to food handling bins to skidded transport tanks and, of course, marine water and wastewater tanks. For more information, please visit: www. barrplastics.com.
Photo courtesy Barr Plastics.
Barr Plastics used advanced extrusion welding equipment on this 20.5-foot holding tank for Latitude Marine’s barge (below). Photo courtesy Latitude Marine
he custom fabrication department at BARR Plastics Inc. took the company to new lengths — literally — when they completed the production of the largest plastic marine wastewater holding tank in the company’s manufacturing history. Measuring 20.5 feet long, six feet wide and three feet high with a capacity of 2,750 U.S. gallons, the tank was built and installed into a barge for the marine construction and repair company, Latitude Marine Services, based in LaConnor, Washington. The barge tank has been put into service as a discharge facility to empty the holding tanks of smaller ships. A senior plastic welder and fabricator at BARR Plastics Inc. completed the labour-intensive project within one month using advanced extrusion welding equipment to bond thermoplastic copolymer materials into the custom tank shape. A large number of structural baffles were also installed inside to reinforce the tank and stabilize liquids when in transport. Once completed, the tank was filled with water and underwent a 10-foot head pressure test, proving its high strength and durability well above operating limits. “The team at BARR was great to work with,” says Patrick Gudmundson, president of Latitude Marine Services. He went on to explain BARR’s attention to detail in making sure the tank drawings Latitude presented matched the requirements for the rest of the barge project. “Our customer indicated there would be more of these facilities built and we will return to BARR for the tanks,” says Gudmundson. Since first opening their 6,000 square-foot custom fabrication facility in 1998, BARR’s largest enclosed tank built to date was an estimated 1,800 gallons. In consideration of this marine tank project of 2,750 gallons, BARR’s senior fabricator says, “It is definitely a big accomplishment.” Based in Abbotsford, B.C., BARR Plastics Inc. is a leading industrial supplier of liquid and materials handling tanks, containers and dock building supplies. With over 45 years of
December 2013/January 2014 BC Shipping News 51
Innovative “green” biofilter for oily bilgewater treatment Jason A. Caplan, PhD, President & CEO, EnSolve Biosystems, Inc. (www.ensolve.com)
ilge water consists of liquids that drain to the lower regions of the ship’s hull and is comprised of water, oils, fuels, surfactants, and a myriad of other contaminants. Common methods of separating and removing oil from this mixture include coalescing, filtration, centrifugation, flocculation, and/or combinations of these technologies. There are varying degrees of success of each of these methods but a common problem for all of these oil water separators (OWS) is the high cost involved for long-term operation and maintenance. This may not be reflected in the initial price tag but ship engineers are well aware of the high labour and materials costs to maintain these systems. When such operational costs are factored in, the total cost of ownership (TCO) of these OWS systems can be astronomical, in some cases up to $100,000 per year per vessel. In contrast, the operational costs associated with EnSolve’s PetroLiminator® OWS system are a fraction of those of conventional OWS systems. Since its initial introduction to the maritime market in 2000, the PetroLiminator OWS system has been installed on a wide variety of ship platforms including cruise ships, ferries, Ro-Ro’s, military vessels, off-shore drill rigs, work boats, supply vessels, ore carries, and many others. None of our PetroLiminator clients has been cited by the regulatory authorities for an illegal discharge of oily bilgewater. Superior OWS technology EnSolve’s novel PetroLiminator OWS consists of three stages: Stage I physically separates and removes the non-emulsified oil via an advanced coalescing matrix. The influent stream enters the inlet chamber where water turbulence and velocity are sharply reduced, and initial gravimetric separation occurs. As the bilgewater flows through the separation chamber, oil
The PetroLiminator OWS from EnSolve Biosystems, Inc. droplets coalesce and grow in size rising to the surface for removal. From Stage I, the process flow is directed into the Stage II biotreatment chamber for further treatment. In this chamber the environment is controlled for optimal growth of hydrocarbondegrading microbes. Stage II is packed with support matrix media with billions of hydrocarbon-degrading microbes attached to its surface. These are natural, non-pathogenic micro-organisms that have been selected to consume oil as its primary carbon source. The process of bioremediation has been used for decades to treat thousands of waste streams and contaminated ground water sites worldwide. EnSolve Biosystems has adapted and patented a process that utilizes this technology for shipboard specific use. In biodegradation, petroleum hydrocarbons are converted to CO2, cell components, and water. Optimal biodegradation of hydrocarbons will occur with the pH between six and eight, temperature between 10 and 35 °C, abundant oxygen, and safe nutrients for sustained growth.
52 BC Shipping News December 2013/January 2014
Stage III is a final clarifier, which allows for continuous oil concentration analysis and removal of hydrocarbon-free effluent. The oil content monitor ensures that only effluent meeting the preset criteria (i.e., oil concentration) will be discharged over board. From an operational standpoint, the elegance is built into the design, not operation of the PetroLiminator OWS system. Unlike many OWS systems that require a lot of attention, the PetroLiminator system is fully automated. The operator merely has to turn the dial to “Automatic Operation” and walk away. A one-page laminated quick reference guide is chained to the system which provides the recommended daily (five minutes) and weekly (15 minutes) system checks. No flocculation agents or carbon adsorbent filters are required. Unlike centrifugation OWS systems, no pretreatment weir tanks are required for the PetroLiminator OWS thus saving ship owners valuable space and costs for such installations.
TECHNOLOGY Certifications There are three PetroLiminator models available for any size ship. Each model is USCG, MEPC 107(49), and Transport Canada Approved. The PetroLiminator is also ABS and DNV Type Approved and MED certified so the PetroLiminator OWS system is available to operate world-wide. Total cost of ownership EnSolve Biosystems has benchmarked the total cost of ownership (TCO) of the PetroLiminator OWS against other OWS systems. The operating costs, manpower requirements, wastes generated, and capital costs of different systems were collected over the past 10 years. The median cost data below confirms that the PetroLiminator’s TCO is two to six times lower than conventional OWS systems.
WÄRTSILÄ® is a registered trademark.
Conclusion The PetroLiminator OWS provides ship operators and owners a reliable, “green”, and economical solution for treating bilgewater on board any vessel. Compared to other OWS systems on the market, the PetroLiminator OWS is simple to operate and does not require carbon filters, flocculants, or similar disposable materials that only transfer oil from one phase to another and are prohibitively expensive to dispose. Those already using PetroLiminator OWS include some of the largest shipping companies in the world with ships operating in some of the most extreme environments.
PREVENTING THE UNEXPECTED: SOLVING PROBLEMS BEFORE THEY CAUSE PROBLEMS.
Figure 1: Ten-year Total Cost of Ownership comparison of various bilgewater treatment systems. Not shown in the graph above is the waste generated from each system. The PetroLiminator OWS system generates up to 14 times less waste than other OWS systems. For more than a dozen years, the PetroLiminator has proved durable and resilient in the most extreme marine environments. The PetroLiminator OWS is availabe in Canada through Jastram Technologies. To find out more contact Jastram (sales@ jastramtechnologies.com / 604-988-1111 or visit www.jastramtechnologies.com.
The West Coast’s Newest Old Shipyard!
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www.meridianmarine-inc.com wartsila.com December 2013/January 2014 BC Shipping News 53
Representing eleven major cruise lines operating in the Pacific Northwest, Canada, Alaska and Hawaii. The member lines of CLIA-North West & Canada (formerly North West & Canada Cruise Association)
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ABS Americas......................................................................... 13 Arrow Marine Services Ltd...................................................... 15 ATP Instone Marine Travel....................................................... 40 Bernard LLP............................................................................ 35 Borden Ladner Gervais............................................................BC Bracewell Marine Group.......................................................... 12 Caldwell & Co. Maritime Law..................................................... 6 Canada’s Pacific Gateways (Prince Rupert Port Authority)....... 19 Capilano Maritime Design Ltd.................................................... 8 Cargo Logistics Canada Conference........................................ 38 Chamber of Shipping of British Columbia................................. 20 ClassNK.................................................................................... 9 CLIA - North West & Canada................................................... 54 CMC Electronics..................................................................... 43 CN Rail.................................................................................. IFC Corix Water Products.............................................................. 26 Dave Roels Photography........................................................... 6 Gateway Shipping and Transport............................................. 29 General Commercial User Group............................................... 8 Greenwood Maritime Solutions Ltd............................................ 6 IMS Marine Surveyors & Analytical Laboratories Ltd................ 33 Industrial Plastics & Paints...................................................... 30 International Sailors Society Canada........................................ 21 International Ship-Owners Alliance of Canada Inc..................... 36 Jastram Technologies Ltd./ Jastram Engineering Ltd............... IBC John Horton, Marine Artist...................................................... 19 Lloyd’s Register........................................................................ 7 Lubri-Lab Inc.......................................................................... 29 Mercy Ships............................................................................ 50 Meridian Marine...................................................................... 53 Mission to Seafarers............................................................... 25 Nanaimo Port Authority........................................................... 23 Redden Net & Rope................................................................. 15 Robert Allan Ltd...................................................................... 27 SeaMOB/Startech Marine........................................................ 31 Seaspan Marine...................................................................... 34 Tervita..................................................................................... 29 Thunderbird Yacht Sales............................................................ 6 UBC Supply Chain Management Club...................................... 37 Vancouver Maritime Museum.................................................. 49 Volvo Penta............................................................................. 54 Wärtsilä.................................................................................. 53 Western Canada Marine Response Corporation........................ 45
BC SHIPPING NEWS
Commercial Marine News for Canada’s West Coast.
• Stainless steel and bronze throughout for long service life and minimal marine growth.
For advertising information:
T: 604-893-8800 / E: email@example.com www.volvopenta.com
54 BC Shipping News December 2013/January 2014
Do you unDerstanD maritime law in CanaDa? Fortunately, we Do. At 265,523 kilometres, Canada has the longest national coastline in the world – and it’s surrounded by three oceans. It’s hardly surprising maritime law is vitally important in this country. Borden Ladner Gervais LLP (BLG) is at the forefront of maritime law development, and is often involved in judicial decisions that form the essence of maritime law in Canada. At BLG, our Maritime Law Group has had extensive experience handling maritime law issues across the country, including terminals, ocean carriers, shippers, and rail. And though we are the pre-eminent Canadian law firm serving the marine industry in Canada, our Maritime Law Group are particularly knowledgeable about issues related to BC. The law of the land doesn’t stop at the oceans. At BLG, our service doesn’t stop there either.
Calgary | Montréal | Ottawa | Toronto | Vancouver | Waterloo Region Lawyers | Patent & Trade-mark Agents | Borden Ladner Gervais LLP is an Ontario Limited Liability Partnership.
Published on Nov 27, 2013
Published on Nov 27, 2013
BC Shipping News: Vol.3, Iss.10 - December 2013. Industry Insight with Captain Bob Shields, President, Island Tug and Barge; Will it be this...