BC Shipping News - May 2019

History Lesson: Strange things in Burrard Inlet

Project Cargo: AAL seeing opportunities for growth

Arctic Shipping: Challenges remain

Commercial Marine News for Canada’s West Coast.

BC SHIPPING Volume 9 Issue 4

NEWS

www.bcshippingnews.ca

May 2019

Industry Insight

Anne Legars Ship-source Oil Pollution Fund

LPG Terminal

A big step forward for Canada's gas exports

LNG Terminal LNG Canada gets started

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Green Power for 136,000 Homes AAL shipped a record-breaking 45 units of Australia’s longest-ever wind blades (63m each) on a single sailing for the 200MW Silverton Windfarm in New South Wales. The farm will produce 780,000MWh of clean energy and reduce CO2 by 655,000 tonnes every year.

In its remarkable 25-year history, MPP heavy lift carrier AAL has accomplished numerous ‘firsts’ for its renewable energy project customers, pushing boundaries of engineering and operations to deliver ground-breaking solutions.

www.aalshipping.com

We are driven by the world’s youngest fleet of MPVs, offering best-in-class cargo intake volumes and powered by a multiple award-winning team of professionals worldwide, delivering 24/7 customer service.

aal@aalshipping.com

JUNE 18-20, 2019

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CONTENTS May 2019 Volume 9 Issue 4

Cover Story

34 37 39 42

7

EDITOR’S NOTE

8

IN BRIEF

14

By Jane McIvor

20

Industry traffic and news briefs

INDUSTRY INSIGHT

More than just big spills from tankers Anne Legars, Administrator, Shipsource Oil Pollution Fund Legars provides insight Canada's oil spill liability and compensation regime, noting that it's not just for big spills from tankers.

22 24

HISTORY LESSON

24

Scupper that!

Strange things that have ended up in Burrard Inlet

By Lea Edgar

44

48

IN MEMORIAM

Marcel LaRoche, Ch. Eng. Director, LNG Division, BC Ferries

50

LPG TERMINAL

AltaGas Ridley Island Propane Export Terminal A big step forward for Canada’s gas exports

27 EVENTS

52

LNG TERMINAL

LNG Canada gets started

By Mark Turner

PROJECT CARGO

AAL seeing opportunities for growth on the West Coast

MARITIME PROFILE

AMIX Group Construction, deconstruction and moving cargo on the waterfront

ARCTIC SHIPPING

Arctic Shipping Arctic shipping challenges remain

By Captain David (Duke) Snider

NAVAL SHIPYARDS

Canadian Fleet Maintenance contributes to New Zealand frigate modernizaton program

By Darryl Anderson

LEGAL AFFAIRS

New regulations come into force for passenger liability insurance

By Glen Krueger

OP-ED: TANKER TRAFFIC

Trans Mountain pipeline dilemma

By Captain Edward G. Monteiro

SEA STORIES

Ocean Liner Southern Cross

By Peter Vassilopoulos

CLEAN PACIFIC comes to Vancouver

28

14

31

MARINE TRAFFIC

NEB's Trans Mountain reconsideration highlights a bigger picture for industry

SPILL RESPONSE

The effect of weather on oil at sea

By Lee Britton

42

On the cover: The Green Attitude tanker at anchor in English Bay (photo: BC Shipping News); above: The AltaGas Ridley Island Propane Export Terminal (photo: Lonnie Wishart - www.lonniewishart.com); right: Arctic shipping (courtesy Duke Snider.); left: Anne Legars May 2019 — BC Shipping News — 5

May 2019 Volume 9/Issue 4

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Contributing Writers

Darryl Anderson Lee Edgar Bikram Kanjilal Anne Legars Tony Marra Edward G. Monteiro David (Duke) Snider Mark Turner Dan Woznow

Lee Britton Jannie Bédard Guillemette Glen Krueger George LaRoche Jane McIvor Michael Morland K. Joseph Spears Peter Vassilopoulos

Editorial Assistant Amanda Schuldt Advertising and Subscriptions Phone: 604-893-8800 Jane McIvor (jane@bcshippingnews.ca) Advertising only: Lesley McIvor (lesleymcivor@shaw.ca) Louise Kawaler (louisek@telus.net) ANNUAL SUBSCRIPTION

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Contents copyrighted 2019 McIvor Communications Inc. 300 - 1275 West 6th Avenue, Vancouver, British Columbia Canada V6H 1A6 Phone: 604-893-8800 E-mail: jane@bcshippingnews.ca International Standard Serial Number ISSN: 1925-4865 / Published 10 times per year.

The opinions expressed by contributing writers are not necessarily those of the Publisher. No part of this magazine may be reproduced in any form without written permission of the publisher.

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International Sailor’s Society Canada 6 — BC Shipping News — May 2019

EDITOR’S NOTE

Photo: Dave Roels

The elephant in the room

N

oticeably absent from this month’s BC Shipping News — which has a focus on energy resource transportation — is any mention of Bill C-48, the proposed Oil Tanker Moratorium Act. With Senate committee meetings on-going at the time of printing, anything written here will be dated by the time it comes out.

You likely wouldn’t be surprised to hear however that I oppose the Bill and that any editorial written would most definitely note how politics is triumphing over science; how international conventions and best practices are being ignored; and how this moratorium would be the only one in Canada despite active tanker traffic on even busier waterways like the St.

Lawrence Seaway. The article would likely echo the thoughts of Alberta’s Premier Rachel Notley (at least she was at the time of printing) when, on April 9, she was quoted on iPolitics.com as calling the moratorium a “stampede of stupid.”

Hopefully, any article in BC Shipping News would take a more diplomatic approach.

So I’ll wait and cross my fingers that the Federal Government will come to their senses on this one.

Having said that, there are other stakeholders in the game who are equally entitled to their own opinion and who support the Moratorium. This is what Canada is all about: we can agree to disagree, examine the facts (hopefully all are using the same

statistics), and work toward a solution.

While sometimes it may be an agonizingly slow process, it works. And whether or not we agree with the outcome, all interested parties get the chance to give their opinion.

This is democracy at work and we should stand by it.

So for this issue, BC Shipping News has ignored the elephant in the room and focused instead on those projects that are moving forward — AltaGas’ Ridley Island Propane Export Terminal, LNG Canada, and, because I have faith that common sense really does still exist, the Trans Mountain Pipeline Expansion Project.

Happy reading.

— Jane McIvor

DELIVERING ECONOMIC GROWTH

35

BILLION ANNUAL TRADE

By rail, by truck, and by vessel--the economic impact of the Port of Prince Rupert continues to grow, supporting families and businesses across Northern British Columbia. As we continue to connect Canadian industries with overseas markets, the benefits of this trade will continue to strengthen our communities.

business@rupertport.com rupertport.com

1

BILLION ECONOMIC ACTIVITY

3100 JOBS

IN BC

INDUSTRY TRAFFIC

Tymac announces partnership with Terrapure Environmental

T

ymac Launch Service Ltd (“Tymac”), a diverse Canadian Marine Transportation and Waste Removal Company, and Terrapure Environmental Ltd. (“Terrapure”), one of Canada’s leading providers of essential environmental and industrial solutions, today announced they are forming a partnership to jointly manage cruise ship and marine-sector related waste landed at B.C. Ports.

“We are excited to build upon our long-standing relationship with Terrapure and offer an unparalleled suite of waste removal services to not only the cruise market but the broader marine industry,” said Ron Brinkhurst, President of Tidal Transport, Tymac’s parent organization. “Our dedicated environmental solutions team is always seeking to identify new technologies and waste disposal processes that enhance not only the services we provide but encourage environmental sustainability, reduce overall disposal costs and create positive customer experiences. Working alongside Terrapure allows us to continue to do just that.”

As Canada’s environmental solutions leader, Terrapure provides a broad range of waste management, environmental and field services for industrial, commercial and institutional customers, managing virtually every waste stream with an orientation towards minimizing disposal and maximizing the recovery or recycling of valuable by-products.

“As industry leaders in our respective fields, Terrapue and Tymac are highly complementary in the services we offer to cruise and marine industry in B.C.,” said Todd Moser, President and CEO, Terrapure. “Our shared focus on providing timely, safe and costeffective solutions, coupled with our ability to provide a high level of customer service, makes this partnership a great fit and will allow us to jointly provide a level of service that was previously unattainable in the industry.”

Tymac and Terrapure will continue to operate as separate entities and separate brands. The new partnership goes into effect immediately.

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Shipping Federation hosts Sail into Spring

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The reception was preceded by a Board meeting, which was held at the Federation’s Vancouver office and chaired by John Mears, President of Pacific Northwest Ship and Cargo Services Inc. Several Board members also had an opportunity to tour Vancouver’s inner harbour on board the Seaspan Raven, and all were highly impressed by the vessel’s advanced technology and skilled crew.

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NEWS BRIEFS

Significant contract award announced for work on the OOSV

S

easpan Shipyards (Seaspan) has awarded BCS Automation Ltd. (BCS) a contract for work on the Government of Canada’s new Offshore Oceanographic Science Vessel (OOSV).

BCS is the most recent supplier to partner with Seaspan in its work on the OOSV program.

BCS is a family-owned, Canadian small business located in Belleville, Ontario. The company has been in operation for 30 years and specializes in automated systems for the marine, offshore and cement industries.

BCS represents one of almost 80 Ontario suppliers to date that Seaspan is working with to meet its commitments under the National Shipbuilding Strategy (NSS).

BCS is supplying a state-of-the-art ship control and monitoring system for the OOSV. The system is designed to provide ship personnel with all the basic alarms and status information they require in order to maintain the safe and efficient operation of the machinery, auxiliary systems and other relevant equipment. The system features built-in self-diagnostics, an intuitive, userfriendly interface and a fail-safe redundant

network to enhance safety and reliability.

BCS has previous experience working on NSS projects, having been subcontracted

by Hawboldt Industries to design and build the winch drive system for the Offshore Fisheries Science Vessels (OFSV).

Thanks to its work under the NSS, Seaspan has issued over $850M in committed contracts with approximately 570 Canadian companies. By building ships for the Canadian Coast Guard and Royal Canadian Navy in Canada, Seaspan is helping to re-establish a Canadian marine industry. As the company continues to make progress on its NSS commitments, this supply chain is expected to grow as more Canadian companies realize new opportunities with a revitalized shipbuilding industry. It is through its work on the NSS that Seaspan is directly and indirectly helping to employ thousands of Canadians from coast to coast to coast.

“Today’s announcement is a prime example of how the National Shipbuilding Strategy is contributing to a strong, sustainable marine sector in large and small communities across Canada. This

state-of-the-art control and monitoring system will provide Canadian Coast Guard personnel with the tools they need to safely and efficiently operate the future Offshore Oceanographic Science Vessel,” said the Honourable Carla Qualtrough, Minister of Public Services and Procurement and Accessibility.

Mark Lamarre, Chief Executive Officer, Seaspan Shipyards, said: “Seaspan Shipyards’ work under the National Shipbuilding Strategy (NSS) is rebuilding a marine supply chain across Canada. This contract with BCS Automation is the latest example of the supply chain development which is creating and sustaining highly skilled middle class Canadian jobs.”

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NEWS BRIEFS

BCIT students awarded for excellence

I

n late March, a number of awards were made to students at BCIT School of Transportation – Marine Campus in North Vancouver.

On hand to make the awards were representatives from The Canadian Company of Master Mariners (CCMM), The BC Branch of the Nautical Institute (NIBC), The Nautical Professional Education Society of Canada (NPESC) and The BCIT Foundation (BCIT).

The ceremony was presided over by Jeff Otto, Cooperative Education Coordinator for the Cadet Diploma Programs at BCIT and photos provided by Sheena Clarkson the Cadet Diploma Programs Assistant.

Awards made were as follows:

The Captain Baugh Memorial Scholarship for 2018, provided by the CCMM, was presented to Deck Cadet Havill Leitch.

The Nautical Professional Education Society of Canada 2018 Bursaries, presented

by NPESC Chairman Richard Smith, Captain Joachim Ruether, Captain Terry Stuart and Captain David Whitaker to Daniil Viryachev (a third-year engineering cadet), Alexander Holiove (a second-year

engineering cadet); Kory McSorley (a thirdyear deck cadet); and Havill Leitch (a thirdyear deck cadet) whose bursary was made possible from a generous donation made to the NPESC by Captain Allen.

The BCIT Foundation 2018 First Year Achievement Award, made possible from funds endowed to the BCIT Foundation for students in the Marine Engineering and Nautical Sciences programs at the BCIT Marine Campus, was presented to Cadet Andrew Kachkarov from the BCIT Nautical Sciences program.

The BC Branch of The Nautical Institute Book Award, presented by Captain Raman Mangat who encouraged the attending students to get involved with the N.I. and to look into attending their upcoming conference “Arctic Shipping Challenges” on May 22nd/24th, was awarded to cadet Nicola Zimmy.

The Oak Maritime First Year Achievement Award 2018, made possible through the V.K. Eddie Hsu Foundation, was presented to cadet Robert Jamieson.

The presentation was made to Robert by Jeff Otto, Cooperative Education Coordinator for the Cadet Diploma Program at BCIT.

Richard Smith, Chair of the NPESC (far left), Captain Terry Stuart (second from right) and Captain Joachim Ruether (far right) with recipients of this year's NPESC bursaries.

May 2019 — BC Shipping News — 11

NEWS BRIEFS Open for Business

Port of Nanaimo offers Mercedes-Benz Canada new access to Canada’s western market

M

ercedes-Benz Canada has welcomed its first official delivery of vehicles through the newly opened Vehicle Processing Centre (VPC) in Nanaimo, British Columbia. The Port of Nanaimo and the BC Vehicle Processing Centre is the first and only Western Canadian entry point for European automobiles. This new, all-water approach for European — and potentially additional — importers, establishes cost-effective and environmentally responsible supply chain options for the West Coast of Canada.

“Mercedes-Benz Canada has a longstanding commitment to the West Coast. This outstanding new facility represents a new era for our operations, allowing our B.C.-bound vehicles to travel an efficient all-water highway to this important market,” said Brian D. Fulton, President & CEO of MercedesBenz Canada. “This second point of access to the Canadian market is an example of our constant focus on innovation, which extends beyond our vehicles to all aspects of

12 — BC Shipping News — May 2019

our business. I’m proud to be representing the first European automotive manufacturer to partner with Western Stevedoring and BCVPC to use the Port of Nanaimo facilities to deliver our vehicles.”

Developed in partnership with Transport Canada, Western Stevedoring, the Auto Division of SSA Marine and BCVPC, the Vehicle Processing Centre is the first and only Western Canadian entry point for European auto manufacturers. The BCVPC will process all Mercedes-Benz vehicles bound for dealerships across B.C.

The economic impact to Nanaimo and Vancouver Island region is significant: approximately 40 local companies were employed over the course of construction in 2018/2019. In the short-term, the GDP Economic Development boost is projected at $12.2 million, while long-term projections estimate approximately $52.7 million.

Ian Marr, President and CEO for the Port of Nanaimo, comments: “The BC Vehicle Processing Centre provides an opportunity to showcase how the Port of Nanaimo delivers local benefits with its global reach, with direct shipment of vehicles to our facilities.

This investment, made with key partners, utilized approximately 40 companies and over 50,000 person hours to prepare the processing centre for operation and has diversified our local economy, providing new jobs and important employment benefits. We look forward to attracting more business to Nanaimo and Vancouver Island as a result of this collaborative venture.”

Western Stevedoring President, Brad Eshelman, states, “We are extremely pleased to launch the new auto handling operations in Nanaimo and we are very grateful to Mercedes-Benz for their commitment to bringing this vision to reality, and helping us establish this unique and efficient logistics route. We are very thankful for the commitment of our funding partners, Transport Canada and the Port of Nanaimo, and the cooperation of all involved in the construction of this facility. Western Stevedoring is proud of our heritage as a company that was founded on Vancouver Island in 1948, and we are very pleased to be expanding our presence in the region, providing well-paying jobs and significant economic impact to the Island.”

NEWS BRIEFS

BC Ferries wins award for converting the Spirit of British Columbia to LNG

B

C Ferries has won the Shippax Retrofit Award for completing the conversion of a large passenger ferry from diesel to liquefied natural gas (LNG). The award, received in March at the Shippax Ferry Conference, recognizes the innovative work performed on the Spirit of British Columbia, which is among the largest passenger ferries ever to be converted to natural gas propulsion. It is also the first passenger ferry in the world to refuel LNG via delivery on a fully-enclosed vehicle deck.

“We are honoured to receive this award and to be recognized by our peers for our innovation and commitment to adopting clean technology that reduces BC Ferries’ environmental footprint,” said Mark Collins, BC Ferries’ President & CEO. The Spirit of British Columbia was the first of the two Spirit Class vessels to switch to greener technology. The conversion to natural gas required replacement of four main engines with new dual-fuel engines, installation of a large LNG tank beneath the main deck, and development of an innovative fuel bunkering system.

Upcoming events Visit www.bcshippingnews.ca for more information.

“By using natural gas to fuel the two Spirit Class vessels, BC Ferries expects to reduce CO2 emissions by 12,500 tonnes annually, which is the equivalent of taking approximately 2,500 vehicles off the road every year,” Collins adds.

BC Ferries is an industry leader when it comes to adopting new technology that lowers emissions. The Salish Class vessels, introduced in 2017, were the first passenger vessels in the world to refuel LNG on an 20190060-Gillespie-Munro Ad 7.5x4.87-hi.pdf

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open vehicle deck using proprietary tanker truck technology. BC Ferries and its partners developed both of these innovative solutions.

The Spirit of British Columbia’s conversion to LNG took place during its scheduled mid-life upgrade between the fall of 2017 and early 2018, at Remontowa Shiprepair Yard in Poland. The ferry’s sister ship, the Spirit of Vancouver Island, completed its upgrades and natural gas conversion a few weeks ago.

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www.ims-van.com May 2019 — BC Shipping News — 13

INDUSTRY INSIGHT

More than just big spills from tankers Anne Legars

Administrator, Ship-source Oil Pollution Fund

B

eing careful not to give the impression that it’s an “open bar” on Shipsource Oil Pollution Fund (SOPF or the Fund) access, Anne Legars would like Canadians — especially those in the maritime industry and coastal communities — to know that the Fund is there for them when they need it. “As we approach the 30th anniversary of the SOPF, we want to highlight the relevancy of the Fund and help potential claimants understand the process of seeking compensation for a shipsource oil spill,” said Legars, further noting that recent amendments stemming from Bill C-86 have clarified and strengthened a number of the Fund’s capabilities. And, as Legars explains, “the Fund is for more than just big spills from tankers.”

BCSN: Anne, how did you come to be the Administrator for the SOPF? What sort of training do you have and what are some of the lessons you’ve learned during your career that you can apply to your current role?

AL: Over the past 25 years, I have worked extensively on maritime, transportation, environment and trade files, issues and policies as a lawyer, a trade association representative, and head of organizations.

I am a member of the Quebec Bar and a Certified Association Executive.

During the seven years I was a lawyer in private practice, I learned a number of lessons that I have used throughout the rest of my career. The experience I gained on the litigation side and moving through the court system has been invaluable. It taught me of the need to be rigorous and organized.

Once you’ve been in the litigation system, you understand the ‘black box of justice’ and it becomes easier to work with it.

However, it is when I joined the Shipping Federation of Canada in 2000 that I 14 — BC Shipping News — May 2019

[The SOPF] is available to pay for claims for oil pollution damage, clean-up operations or other preventive measures caused by the discharge or anticipated discharge of persistent or non-persistent oil from all classes of ships... discovered the true essence of maritime law.

I gained a 360-degree view — from the development of international conventions, to their translation into domestic law and regulations, to compliance and enforcement, to the people on the ground who are just trying to understand what they have to do.

Another lesson I’ve learned throughout my career has been how necessary it is for the whole system to work together — to be as strong and supportive as you can be to allow for a well-functioning system.

All of these lessons learned inform my current position, from the recourse to the court system, to Canada’s contribution to the work of the International Oil Pollution Compensation Funds (IOPC Funds) and their relevancy to my daily claims assessment work, to the need to develop easy-to-use tools for the claimants, to stronger collaboration with the Fund’s partners and stakeholders.

BCSN: Could you provide the broad strokes of the purpose of the SOPF? AL: The SOPF is a special-purpose account continued under Part 7 of the Marine Liability Act to facilitate the indemnification of claims for ship-source oil pollution in Canadian waters while protecting the taxpayer. Canada’s compensation regime is based on the fundamental principle that the ship owner is primarily liable for oil pollution damage caused by the ship — that is, the polluter pays principle. It is available to pay for claims for oil pollution damage, clean-up operations or

other preventative measures caused by the discharge or anticipated discharge of persistent or non-persistent oil from all classes of ships on inland or coastal waters, and up to the limit of the Exclusive Economic Zone of Canada. Once compensation is paid to a claimant, the Administrator is obligated to take all reasonable measures to recover that payment from the ship owner or any other responsible party.

The Canadian Coast Guard has been the main claimant of the Fund but many people are unaware that the Fund is available to everyone involved in clean-up operations or preventative measures for an imminent threat of pollution. Claims can also be made by municipalities, provinces, marinas, fishermen, recreational boaters and even waterfront businesses. The Fund is not just about big spills from tankers or million-dollar claims; there are many smaller spills of persistent or non-persistent oils that require thousands of dollars in clean-up costs or caused property damage or losses of income which are eligible for compensation.

It’s important for potential claimants to remember however, to keep track of relevant information and documentation in order for the Fund to process their claim.

BCSN: Given that this is the 30th anniversary, could you provide some background on the evolution of the Fund?

AL: The predecessor to the SOPF was the Maritime Pollution Claims Fund (MPCF) that was established in 1973 and was strictly

INDUSTRY INSIGHT a domestic fund. The money in the original MPCF — collected by levies on oil imported into or shipped from a place in Canada — was transferred to the new SOPF in 1989 when we aligned our regime with that of international conventions. At that time, Canada ratified the 1969 Civil Liability Convention and the 1971 International Fund Convention. Since then, subsequent conventions have been incorporated into Canadian legislation at the same pace as the international arena — for example, the 1992 Civil Liability Convention, the International Oil Pollution Compensation (IOPC) Funds and the Bunkers Convention.

It’s relevant to note that Canada has been a very strong international player in terms of incorporating new conventions into Canadian legislation. The international orientation of the Canadian liability and compensation regime helps victims of a spill gain access to a full range of remedies, including mandatory insurance in a number of cases covered by these conventions with direct access to the insurer and access to the international funds for tankers.

A good example of Canada’s support for international conventions can be found with the Hazardous and Noxious Substances Convention. While the convention is not yet in force, we have already incorporated it into Canadian legislation. So, once the international community has ratified it, our regulatory regime will already be in place.

BCSN: Once the HNS Convention is in place, how will that affect the SOPF? AL: The HNS Convention will cover any damage that would result from an HNS incident — i.e., not only pollution-related damage, but also injuries, etc., and accidents from any hazardous and noxious substance, not only oil. There will be mandatory insurance for ship owners and a specialized international fund for HNS damages.

The only thing that will change is that there will be additional payers involved (mandatory insurance for ship owners and the International HNS Fund) from which the claimant can seek compensation or from which the SOPF will seek reimbursement.

The SOPF will pay the Canadian contribution to the International HNS Fund’s oil accounts and the Administrator will receive the annual reports of Canada’s oil shippers in order to provide the data necessary for the International HNS Fund to determine Canada’s annual contribution for these oil accounts.

BCSN: Has Canada ever made a claim against the IOPC? AL: Yes, once in 1989 after the sinking of the Rio Orinoco off Anticosti Island in the St. Lawrence River, the IOPC Funds paid around $12 million. We also currently have a court case in B.C. related to the Nathan E. Stewart incident. While the action has been brought against the owner and their insurer, the claim raises the question about whether the international fund should be liable. This is still making its way through the courts.

BCSN: Do you ever interact with the U.S. on claims?

AL: The U.S. has their own fund and compensation scheme under the Oil Pollution Act (OPA) and is not part of the international conventions. Given that Canada and the U.S. have two different indemnification regimes, we are working with our U.S. counterparts to make sure

there are no gaps in compensation if a spill occurs at the border. We do find it useful to hold workshops to discuss common issues.

The last workshop was in 2017 and another is planned for later this year.

BCSN: Could you explain the process of accessing the SOPF? AL: Based on the polluter pays principle, when the source of the pollution is identified, the claimant should approach the ship owner or the ship’s insurer first.

However, they are still allowed to file their claim with the SOPF at the same time. In most cases, the ship owner or insurer will settle the claim directly but if there are issues, the Fund is able to pay the claimant and then work to reclaim the funds from the polluter.

If the source of the spill is unidentified or if the ship owner is insolvent or reluctant, we’ll work directly with the claimant to ensure they have access to compensation.

Steven Mo, Vice-President (steven.mo@td.com) Andrew Kostiw, Director (andrew.kostiw@td.com)

May 2019 — BC Shipping News — 15

INDUSTRY INSIGHT When assessing the claim, we want to be reasonably satisfied that the spill has come from a ship and that the claim is reasonable — that is, that damages arose from the incident and that the amount claimed is reasonable. In most cases, we require the same information and documentation as would the ship owner or insurer. If we are unable to recoup the funds from the ship owner or insurer, we absorb the cost.

Another factor that claimants must keep in mind is the limitation period on claims. Claims with the SOPF should be generally filed within two years from the date pollution damage occurred, but no more than five years from the date of the incident. The Fund then has an additional year to start an action against the owners/insurers to recover the amount paid to claimants. Many claimants will file with us while still negotiating with the owner or insurer to ensure their rights to claim with the SOPF are secured if the negotiations with the ship owner or insurer fail.

BCSN: You mentioned that Bill C-86 brought in a number of amendments. Could you describe those?

AL: The most significant ones include the removal of the Fund’s per-occurrence limit of liability (which was $174 million); the alignment with international conventions of the Fund’s liability for economic losses (notably losses of revenue) caused by oil pollution; the Fund’s liability for the costs and expenses incurred by the Minister of Fisheries and Oceans in respect of preventive measures even if the occurrence has not yet created a grave and imminent threat of oil pollution damage; and an expedited, simplified process for small claims (up to $35,000) to the Fund.

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INDUSTRY INSIGHT The amendments greatly clarified an ongoing legal debate around claims for pure economic loss. It has now been clarified that such losses are covered under the domestic regime as they have been under the international regime.

Another area that is a significant change relates to “preventative measures.” The amendments clarify that the ship owner is only liable for preventive measures taken by, for example, the CCG, if there is a “grave and imminent” threat of pollution. The SOPF, however, will absorb the CCG costs even if there is no “grave and imminent” threat but a threat nevertheless exists.

BCSN: Last year, the Federal Government allocated additional funds to the CCG to address derelict vessels through the Oceans Protection Plan (OPP). Which fund would they access first?

AL: If the issue is clearly related to oil, they should come to the SOPF first. Because we now have no cap on costs, we would likely be a better route to go — provided the source of the pollution or threat of pollution is oil and costs of the measure are reasonable — for example, we don’t compensate for

Anne sits with Deputy Adminstrator Mark Gauthier surrounded by staff of the SOPF.

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INDUSTRY INSIGHT the deconstruction of the vessel unless we are satisfied that it was a reasonable measure to prevent oil pollution at a reasonable cost. If you just wanted to remove the vessel because it’s an eye sore or a navigational hazard, it would fall under the OPP specific funds rather than the SOPF. BCSN: Could you tell me about the types of claims you receive?

AL: The Canadian Coast Guard makes up the majority of the claims (23 of the 32 claims made in the 2017/18 fiscal year) and these claims are for clean-up costs or preventive measures; other claims come mostly from ports and municipalities. The 32 claims totalled just over $7 million. The average value per claim was just over $225,000.

However, two-thirds of the claims received were below $50,000 and three claims were over one million dollars each. The highest

claim received in 2017/2018 was for over $2.4 million. I should further note that, as of March 2018, the balance of the Fund is just over $405 million.

As for the types of claims, we’ve had very few cases of persistent oil — usually it is related to diesel spills from fuel tanks. In the case of derelict vessels, there are all kinds of fuel and lubricant oils on board and is not necessarily from the tank but rather can be found throughout the piping system.

BCSN: What are your priorities for the coming years?

AL: For this year, our priorities are communications and developing material that shows the relevance of the Fund as well as easy-to-read guidelines for making claims.

Another area that requires specific attention is on the needs of Indigenous claimants.

We noticed that they are very often in the

background — i.e., are in the vicinity of spills — yet we haven’t had any claims from them.

We are looking at how the claims process can be made more relevant to them. We do know that more often than not, Indigenous communities will make a claim through Indigenous Services Canada (ISC) whatever the type and source of damage incurred, therefore we are looking at various ways to provide access to compensation after an oil spill — either directly or indirectly through ISC as a subrogated claimant.

We are also working on scenarios of how to manage claims in the case of a very large spill. To give you an example, one incident in Korea generated 127,000 claims. We need to ensure that we’re able to leverage our network and expertise in the event that a similar incident happened in Canada.

BCSN

About Anne Legars

About the Ship-source Oil Pollution Fund

nne Legars obtained her Bachelor’s Degree in Political Science from Institut d’Études Politiques de Grenoble, France, as well as a Bachelor, a Master and a Post-graduate Degree in Law from Université de Grenoble II, France, and a Bachelor in Law equivalency and a LL.M. from Université de Montréal. In addition to being a member of the Quebec Bar, she is also a member of the Canadian Society of Association Executives.

nder the Marine Liability Act, the Ship-source Oil Pollution Fund (SOPF) is liable to pay claims for oil pollution damage or anticipated damage at any place in Canada, or in Canadian waters including the exclusive economic zone, caused by the discharge of oil from a ship. It is Canada’s national Fund.

A

Following seven years in private practice at Langlois Gaudreau, Anne joined the Shipping Federation of Canada as Director, Policy and Government Affairs and was subsequently promoted to Vice President. Following her time with the Shipping Federation, she returned to private practice before joining the Ship-source Oil Pollution Fund (SOPF) in the role of Administrator. She has served as the Administrator since May 2016, and was reappointed to a five-year term, beginning March 26, 2018. Since August 2016, she has also been the Administrator for the Fund for Railway Accidents Involving Designated Goods.

Anne has been an active member of the maritime community through her participation as a Board Member of the Canadian Maritime Law Association and Chair of the Committee on the Ratification of International Conventions; a Board Member of Innovation Maritime; and President of the Women in Shipping and Trading Association’s Canadian Chapter.

18 — BC Shipping News — May 2019

U

The SOPF is intended to pay claims regarding oil spills from ships of all classes and is not limited to sea-going vessels or tankers. In addition to persistent oil, it covers petroleum, fuel oil, sludge, oil refuse and oil mixed with wastes.

The SOPF is also available to provide additional compensation (a third layer) in the event that compensation under the international funds, with respect to spills in Canada from oil tankers, is insufficient to meet all established claims for compensation.

The classes of claims for which the SOPF may be liable include the following: claims for oil pollution damage; claims for costs and expenses of oil spill clean-up, preventive measures and monitoring; loss of income and pure economic loss; and loss of subsistence fishing and hunting (marine mammals). Such claims can be filed even where the cause of the oil pollution damage is unknown, when the Administrator of the SOPF has been unable to establish that the occurrence that gave rise to the damage was not caused by a ship.

For more information, visit: www.sopf.gc.ca

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Strange things that have ended up in Burrard Inlet

By Lea Edgar Librarian & Archivist, Vancouver Maritime Museum

T

he Burrard Inlet is known for being the Port of Vancouver’s gateway to the world. Besides its industrial usefulness, it is also known for its natural beauty. Despite this, many have used the coastal fjord as a dumping ground. Beyond sunken ships, all kinds of things have been disposed of — accidently or otherwise into the Inlet. At one point, the owner of the Union Steamship Company even proposed dumping the city’s garbage from a barge into the Inlet for a mere $200 per month.

As recently as 2011, Metro Vancouver was found guilty of pumping raw sewage into the Inlet. Luckily, we now generally recognize the value of keeping the Inlet clean, but stories of the strange things that have ended up in those waters never cease to amaze.

Austin cars

In 1952, the Austin A-40 was a popular car in British Columbia. In the first four years it was sold in this province, sales totalled $15 million. Fred Deeley was one of the most successful dealers of this British car. On April 28, the Dutch ship Dongedy caught fire in Vancouver harbour. Sadly, 50 Austin A-40 cars and trucks were stored

Luckily, we now generally recognize the value of keeping the Inlet clean, but stories of the strange things that have ended up in those waters never cease to amaze. in its hold on their way to Deeley’s lot.

Twenty-two cars suffered salt water damage from the fireboat and were deemed junk.

The Austin executives then came up with the idea to simply dump the damaged cars into the Burrard Inlet. Surprisingly, the authorities agreed with this solution. On May 9, the cars were loaded onto a barge and towed out to the entrance of Howe Sound. They were pulled off the barge one by one by cables attached to the tug boat River Ace. Although they ended up a little outside of the Inlet, as far as anyone knows, they are still at the bottom of the sea.

UBC engineering prank

Fast forward to 2009 and cars were still ending up in our corner of Davy Jones’ Locker. UBC’s Engineering Undergraduate Society is well known for its annual pranks.

The traditional stunt entailed leaving the shell of a Volkswagen Beetle in unusual

The North Vancouver Ferry landing after a street car lost control and went into Burrard Inlet, August 12, 1909. City of Vancouver Archives: AM54-S4-: Out P537.

20 — BC Shipping News — May 2019

places, such as the top of buildings or the most famous of all, suspended from the Lions Gate Bridge. In this instance, the students chose the Iron Worker’s Memorial Bridge. Unfortunately (or fortunately), they were caught by the police before the prank could be pulled off. The students ran into trouble with the cables and the Beetle dropped into Burrard Inlet. The students were arrested and the car sank into the deep. It was the first time the Engineering students had been caught in action for their prank. Charges were considered but later dropped. The tradition endures and the red Volkswagen continues to appear in the oddest of locations.

North Vancouver street car

Another event that caused a vehicle to crash into the Inlet occurred in 1909. In the early 20th century, Vancouverites travelled around the city by street car. North Vancouver was, and continues to be, known for the steep slope up Lonsdale Avenue.

To spare pedestrians the climb, street cars would carry people to the top of the hill and back. On August 12, street car number 62 was descending Lonsdale Avenue to meet the ferry at the base of the hill. Suddenly, the brakes failed and the car was sent careening down the hill. The driver tried desperately to slow the car down but to no avail. He threw it into reverse but that only blew the motor out. The passengers realized what was happening and some decided to leap from the vehicle. Others held on and braced themselves until the car plunged into the sea. Luckily, the car landed on its side in only four feet of water. Rescuers immediately began pulling out the victims,

VANCOUVER MARITIME MUSEUM including three babies without a scratch on them. Though many passengers and the driver were injured, no one was killed.

Second Narrows Bridge

The bridge that spans the second narrows of the Burrard Inlet has a long history of accidents. The first bridge was built in 1925. It was hit by many ships including the cargo vessel Eurana in 1927, Norwich City in 1928, and Losmar in 1930. The final straw was when the Pacific Gatherer got wedged beneath the bridge in September 1930, tearing away the centre span. The vessel was swept into danger by a powerful flood tide. Stuck under the 300-foot span, the tide continued to rise and eventually the bridge could bear no more. The span was toppled into 80 feet of water. The tug pulling the vessel, Lorne, was luckily not damaged. The bridge was sold to the provincial government in 1933 and reopened in 1934. Due to traffic problems, it was decided that a new bridge was needed and construction began in 1955. While under construction, on June 17, 1958, spans 4 and 5 collapsed, spilling 79 workers into

Span of Second Narrows bridge falling into Burrard Inlet, September 9, 1930. City of Vancouver Archives: AM54-S4-: Br P55.2. the water. Sadly, 19 died in this tragic accident. The bridge was renamed the Iron Workers Memorial Bridge in 1994 in their honour.

There are likely many other tales of weird and wonderful things ending up at the bottom of the Burrard Inlet. Purposeful

pollution, ship wrecks or tragic accidents — this part of the ocean floor is likely littered with Vancouver’s history.

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

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IN MEMORIAM

Marcel LaRoche, Ch. Eng. Director, LNG, BC Ferries

E

very once and a while, the departure of a colleague, friend, family member in our community affects us in a strong way. The recent passing of Marcel LaRoche on the morning of March 23, 2019, covered all those categories for me. Marcel was my brother, best friend and colleague in the marine industry. Marcel passed quietly at home with his family after an enormous fight against a very aggressive cancer.

Marcel leaves behind his wife: Natasha, his son: Sam, two daughters: Karina Faye and Mischa, and two grandchildren as well as one brother (me), a half-brother: Francois, and several nieces and nephews.

Marcel was born in Montreal. His father, a naval officer, soon moved the family to Halifax and Marcel often spent time at sea accompanying his father and brother on several races where the navy entered yachts/ schooners into participation. This certainly inspired him to continue his education and career to focus on the marine industry.

Marcel’s family finally settled in Quebec City, where he completed his secondary education. In high school and college Marcel excelled in several sports, including his favourite, football. After graduation from high school, he entered Marine Engineering studies with the Canadian Coast Guard at their college in Cape Breton, Nova Scotia.

Marcel remains in the college’s records as one of the youngest engineers to achieve his fourth-class licence.

22 — BC Shipping News — May 2019

1962 - 2019

Marcel went on to sail for the Canadian Coast Guard on several vessels and participated in several key projects for the CCG, such as the commission of the icebreaker CCGS Des Groseilliers and a large refit project involving several vessels and shipyards.

He also participated in notable voyages to the Arctic, not only to break ice but also to gather data.

After his departure from the Coast Guard, Marcel pursued his career at sea, sailing both internationally for an array of companies and domestically for Algoma and Upper Lakes Shipping. Marcel also went on to achieve his Chief Engineer’s licence. During these years, he gained valuable experience and also gained an increased interest in safety and environmental issues faced by the marine industry. Marcel left his career at sea to work for class societies, most notably Lloyd’s Register, where he had substantial success in both making the industry a safer place, but also in the development of key future codes and programs. Marcel participated in the formation of such documents as the IMO Polar Code and organizations such as Green Marine. For Marcel, the environment soon became a priority as well as how solutions could be applied while still promoting increased sustainability for the stakeholders. Throughout the years, Marcel has given several talks and lectures, always happy to share his knowledge and

experience with others and to assist with education programs.

In 2014, he became the Director of the LNG Division, Engineering for British Columbia Ferries Inc., overseeing the conversion and newbuild construction of LNG ferries for the company and then their subsequent entry into the industry. He offered and applied revolutionary new ideas that have most certainly changed our industry for the better in relation to our marine and air environment. Marcel was instrumental in raising and changing public awareness about the application of Liquified Natural Gas as a viable source of propulsion in our industry, coming at a time when we are quite actively searching for solutions to the issues of carbon emissions, oil pollution, etc. Marcel was a top representative at the SGMF (Society for Gas as a Marine Fuel) and played a key role in developing and modifying important legislation regarding LNG propulsion and fuelling.

This was a “work of the heart” for Marcel and he remained very active in his role throughout a large segment of his fight with cancer. Marcel fought with all his mind and heart, for family, life, and love with a passion rarely seen in our society. He will be missed in this world but waiting for us in the next with one of his infectious smiles.

Rest in Peace Brother Capt. Georges LaRoche

MARITIME EXCELLENCE An ocean elder on a sacred coast in a maritime century

By K. Joseph Spears

T

he passing of Marcel LaRoche is sad but is also the celebration of a life well lived. Marcel, a larger-than-life character, lived his life to the max, whether that was driving his beloved motorcycle or working on a challenging marine problem.

To Marcel, these were never just problems but a means of connecting with a broad cross section of people. He had a unique skillset. Marcel truly listened to people, often changing his mind once he heard the other side of an issue (yes, hard to believe for a Chief Engineer). I have the honour of writing these few words as a friend, mariner, soul brother, ex-Coast Guard member (Marcel never really left the outfit) and a proud Canadian.

I first met Marcel’s beaming smile in Edmonton, Alberta, in 2007 when I was speaking on Arctic Shipping on behalf of Transport Canada. There was an instant soul connection and love of everything marine, oceans and Arctic. Over time, our friendship and brotherhood grew as we worked on many projects together and shared a love of Canada’s sacred coasts and the Arctic.

I was tasked by his boss at Lloyd’s Register, Bud Streeter, for a secret mission.

I was to encourage Marcel to come to the Pacific Coast. I will always cherish this assignment. It was a pleasant mission and tasking. On a rainy July day, on the shores of Horsehoe Bay, I smoked a cigar, prepared and sent overnight from Ocean House (Pacific), the Sailor’s Guide to Howe Sound and Approaches. This document provided all the answers to questions Natasha would ask him. He needed no encouragement. He was ready to sail. He read it, and within a week he was sitting in Horseshoe Bay with his lovely wife Natasha. The following September, they were living on Bowen Island with children Samuel and Mischa.

Marcel thought he was in heaven. He and his family fit into the wonderful Bowen Island community proudly making the daily commute on BC Ferries’ Queen of Capliano (even if classed by ABS) and the Cormorant Marine water taxi. He became familiar with the well-known navigational aid, the Troller Pub, when the ferries were delayed or bad weather prevented the sailing.

I suggested he needed a boat for his son (wink, wink). I said this needed to be a

marine engineering challenge and a rebuild project. Marcel never did take me up on finding a sunken vessel and raising it in true Ketch Harbour fashion but he did find a boat that he and his family enjoyed for years as they ventured around Howe Sound — good or bad weather. I don’t who had the bigger smile, Marcel or Sam, when they were aboard. He was very proud of the life he created on Canada’s Pacific Coast. He called it heaven.

Before joining BC Ferries to assist in the repowering of the ferries and new builds for LNG, He was the Western Manager of Lloyd’s Register where he was instrumental in many projects that are now bearing fruit today. While BC Ferries wanted him in Victoria, he was able to resist the pull and maintained a commute between Bowen Island and the various ferry terminals up and down the coast for some years. His family home was his sanctuary — the place for him to help Natasha raise their two wonderful children. Finally, the move to Victoria could not be avoided and he truly enjoyed and embraced Victoria and Vancouver Island.

At BC Ferries, Marcel played a key role in developing the guidelines for LNG-powered vessels, both in Canada and internationally, and played a key role in the Society for LNG as a Marine Fuel. He embraced the thorny issues. He thought globally and acted locally. To this day, I can see a smile on his face as he walked from the Horseshoe Bay BC Ferry Terminal to the Troller for lunch, knowing he had solved a major problem. He never backed away from a fight. In the end, he lost the good fight to cancer. He left the voyage too soon.

Marcel was deeply committed to his wife Natasha and his family and wanted

to give them the magical experiences that he had experienced while growing up in Quebec City and earlier in Halifax, immersed in the rich history of the Royal Canadian Navy where his father served as a navigation officer with a passion for sailing. From his time in the Canadian Coast Guard, sailing on all coasts and especially the Arctic, Marcel possessed a unique and deep understanding of Canada’s marine potential and opportunity as an ocean nation. For him this was simply muscle memory. Marcel understood Walt Whitman’s words, “when we all think alike we don’t need to think much at all.”

Marcel was a sailor’s sailor, a mariner who had a deep passion for the environment and things he held dear. He loved his family deeply. Marcel’s word was his bond and he never wavered. He had a strong and deep sense of public service and the importance of the safety of life at sea and protection of the marine environment. These were not buzzwords, these were words he held true and worked hard to make a reality in the commercial world and protecting our sacred coast. He understood the 21st century was a maritime century and was happy and excited to be part of it. He was the real deal — a true sailor transcended from generations of seafarers who cared deeply about his family, his country and our oceans and all those who sail on them. This is what made him an ocean elder.

Marcel’s voyage was a life well lived and of faith. We can all learn from Marcel’s life, the hard fight to the very end and the very good choices he made. He passed surrounded by love — what more could a sailor ask for? You are missed my friend and will not be forgotten.

May 2019 — BC Shipping News — 23

LPG TERMINAL AltaGas Ridley Island Propane Export Terminal

A big step forward for Canada’s gas exports

F

ollowing a rigorous approval process, community consultations and two years of construction, the AltaGas Ridley Island Propane Export Terminal (RIPET) in Prince Rupert is almost ready for operations. As the first liquefied petroleum gas (LPG) export terminal in Canada, the significance of the opening is not lost on Dan Woznow, Senior Vice President, Energy Exports. “This is a big step forward for Canada,” Woznow said in a recent interview with BC Shipping News. “Being Canada’s first propane export operation was not without its challenges, but we see the stage now set for even greater opportunities to follow.”

Background

As a leading North American energy infrastructure company headquartered in Calgary, AltaGas first began midstream operations in 1994 with two service contracts and 21 employees. Today, the company employs almost 3,000 people with operations in five Canadian provinces and numerous American states. They focus on three segments of the overarching energy business — midstream (natural gas gathering and processing, natural gas liquids, extraction and fractionation, transmission, storage, natural gas and NGL marketing); utilities (serving approximately 1.6 million customers); and power (generation and sale of capacity, electricity and ancillary services and related products).

“Being Canada’s first propane export operation was not without its challenges, but we see the stage now set for even greater opportunities to follow.”

The RIPET project has been designed to export up to 1.2 million tonnes of propane per year. In selecting the Prince Rupert location, Woznow noted that the brownfield site at the southwest corner of Ridley Island checked all the boxes. “The fact that there was an existing deep-water dock with berthing facilities as well as excellent rail access were key to our decision,” he said, adding that the terminal will be able to utilize some of the existing infrastructure on the site that was once destined to be a sulphur facility.

Once the site was identified, Woznow and his team worked with Ridley Terminals Inc. to get agreements in place and then entered the environmental assessment phase of the project as well as engaged the local community to make sure they were on board. In October 2016, AltaGas was granted approval from the National Energy Board for a 25-year licence and by January 2017, a positive Final Investment Decision was announced. Construction began in April 2017.

From source to dock

Bringing the propane in from the interior and northeast sectors of B.C. as well as

Specially designed loading arms were recently added as part of the modifications to the dock at the AltaGas Terminal on Ridley Island.

24 — BC Shipping News — May 2019

northern Alberta, AltaGas will be using the CN mainline over to Ridley Island where about nine kilometres of new track was laid in the yard to service the facility. “About 50 to 60 pressurized rail cars per day will bring the propane to the terminal where it will be offloaded to temporary storage tanks before being stored in the larger tank which will keep the propane chilled,” Woznow said.

He clarified that, once chilled, the propane is no longer stored under pressure.

To get the propane to the ship, AltaGas will be sharing the RTI dock. “It’s an older dock so we had to be careful about the loading,” he said. “We have installed two specially designed loading arms that minimize the load on the existing structure. Another design feature that was a great benefit for us was that all the modifications required to the dock were above the waterline.”

To ship

AltaGas has partnered with Astomos Energy Corporation in a long-term offtake contract for 50 per cent of the 1.2 million tonnes per year anticipated to move through the terminal. Astomos, a joint venture between Idemitsu Kosan Co., Ltd. and Mitsubishi Corporaton, is one of the

Astomos Energy Corp. recently christened the Maple Gas, a new VLGC that is part of the fleet to be used for transport of propane.

LPG TERMINAL world’s largest players in the LPG business. Headquartered in Tokyo and operating a fleet of 21 Very Large Gas Carriers (VLGCs), they import cargoes into Japan where nearly half of Japanese households rely on propane for their energy. While a significant portion of the cargo will stay in Japan for domestic use, Astomos also has a trading network that extends to India, China, Korea, Indonesia and other South East Asian countries.

The Astomos fleet is impressive — eight of the vessels (both owned and under longterm charter) are less than two years old, including the most recent new build, named Maple Gas in a nod to the Canadian exports.

Maple Gas was built at the Kawasaki Heavy Industries’ Sakaide Shipyard and was delivered to Astomos in February of this year. It is 230 metres in length and 37 metres wide with a draft of 21 metres and can hold up to 82,200 cubic metres of propane. Woznow estimated that there will be between 20 and 30 ship calls per year.

For escorting and berthing, AltaGas entered into an agreement with SAAM

SMIT Towage Canada to provide the services. As part of the agreement, AltaGas and SST are awaiting the imminent delivery of the SST Tsimshian Warrior — the first IMO Tier III emissions-compliant escort tug for the West Coast. Designed by Robert Allan Ltd., the Warrior was built by UZMAR Shipyards in Turkey and is capable of all ship-handling duties, including in heavier weather conditions. She has a bollard pull of 80+ tonnes and indirect escort forces of up to 120 tonnes at 10 knots.

In addition to being one of the greenest tugs in the world, the Warrior was designed to meet a stringent set of performance requirements that were carefully identified and verified by multiple real-time, fullmission bridge simulations done in collaboration with the BC Coast Pilots Ltd., Pacific Marine Institute, Towing Solutions Inc., Lantec Marine, Robert Allan Ltd. and SST Canada. “The routes are the same as other vessels coming to the West Coast so the exercises focused on the type of ship and tug handling under extreme weather conditions,” Woznow said.

Lasting benefits

Having a corporate neighbour like AltaGas comes with significant local benefits. Over 250 people were employed while construction was completed and of those, about 60 per cent came from the local community. Up to 40 permanent jobs will be available once operations begin. “It makes much more sense for us to use local people whenever possible and it’s important to us that the local community benefit as much as possible from the project,” said Woznow.

Given the considerable growth being seen in Prince Rupert with projects like the expansion of Fairview Container Terminal, and the potential for even more growth with companies like Royal Vopak currently going through the environmental assessment process for another bulk liquid terminal on land adjacent to RIPET, finding staff can be a challenge. However, Woznow described a very successful six-month operator training program that AltaGas developed in collaboration with Northwest Community College and the Northern Alberta Institute of Technology. The program, which ran

Photo courtesy of BC Shipping News

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May 2019 — BC Shipping News — 25

LPG TERMINAL from June to December 2018, produced 11 new employees and included both First Nations and non-Indigenous people. To fill the gap, AltaGas will be pulling staff from their existing facilities in both B.C. and Alberta but, Woznow added, “our preference is still to hire as many local people as possible.”

Aside from the direct economic benefit of the project, AltaGas has been an active supporter of non-profit community initiatives and improvements. “We donated $250,000 to support the construction of a controlled rail crossing in Port Edward as well as $10,000 to the North Coast Transition Society and another $10,000 to Port Edward’s public boat launch,” said

26 — BC Shipping News — May 2019

Woznow. “For AltaGas, when we come into a community, it’s for the long term and we become part of that community. Donations for things like rail crossings and docks are important because funding is always a challenge for communities but more than that, it’s the little things that truly make you a part of the community — initiatives like partnering with Earth Rangers on a School Outreach Program and participating in events like Cow Bay Days or actively supporting not-for-profit groups like the Kaien Island Trail Enhancement Society.”

The future

“This project has given us a good foothold in Canada for global exports,” said

Woznow when asked about future growth.

“If you take Astomos as just one example, they are currently getting most of their propane from the Gulf Coast. That’s 25 days away from Asia and that’s not even taking into account delays that can be experienced at the Panama Canal.” He added that having a 10-day route to Japan and other countries in South East Asia has been generating interest for the potential export of other products like butane or ethane.

“This is a big step for Canada,” Woznow concluded. “We’ve been under the radar of overseas markets but as importers start seeing more and more vessel activity in this area, we’ll be seeing more companies interested in what we’re doing.” BCSN

EVENTS

CLEAN PACIFIC comes to Vancouver

T

he CLEAN PACIFIC Conference & Exhibition happens June 18-20 in Vancouver, British Columbia.

CLEAN PACIFIC takes place at the Hyatt Regency Vancouver and is a must-attend event for those involved in spill prevention and response for oil and hazardous materials in the marine and inland environment. CLEAN PACIFIC brings together the tight-knit response community in the Western United States and Canada to address spill prevention and response matters pertinent to that region’s environmental sensitivities. The goal of CLEAN PACIFIC is to deliver a valuable event that covers the most pressing matters in the Western United States and Canada and offer ample time for attendees to network and cultivate the relationships that are crucial before, during or after a response.

CLEAN PACIFIC starts with a workshop and roundtable session on Tuesday, June 18. Starting June 19, three concurrent tracks will take place; Planning and Preparedness, Response and Recovery, and Communication and Engagement.

Over a two-day period, each track will hold multiple sessions led by spill prevention and response experts from U.S. and Canadian industry as well as Provincial, State and Federal Agencies.

Sessions held on Tuesday, June 18 include: • Workshop — Back to the Basics — Safety During Oil Spill Responses, sponsored by API and CTEH • Spill Control Association of America (SCAA) Roundtable: Our Response Community: Present Challenges and the Impact on our Shared Future Sessions held on Wednesday, June 20 include: • General Session: The Importance of Binational Collaboration in Transboundary Waters, an Industry Perspective • Planning for National, State, and Local Transboundary Issues • Innovation in Exercise Design • Planning and Response Considerations for Non-Floating Oil Spills • Environmental Assessment and Restoration • Response Case Studies • Wildlife: Readiness and Response • Before a Spill Incident

• During an Incident • After an Incident: Lessons Learned Translated into Actions Sessions held on Thursday, June 21 Include: • General Session: A Canadian Federal Perspective • Responder Competencies and Evolving Regulations • Arctic Issues • Salvage and Pollution Mitigation • Current Events in Response Technology • Volunteer Management: Help Them Help Us!

• First Nations Perspective and Experience The CLEAN PACIFIC exhibit hall will feature spill response organizations, regulatory agencies, supplier/manufacturers, and service companies showcasing their latest solutions and technologies. Attendees will have the opportunity to meet face-to-face with all of the exhibitors to discuss their unique challenges.

For information on registration, session descriptions and a list of exhibitors, visit www.cleanpacific.org

May 2019 — BC Shipping News — 27

MARINE TRAFFIC

NEB’s Trans Mountain reconsideration highlights a bigger picture for industry

I

t’s been seven years since Kinder Morgan announced it would begin public consultations into twinning the Trans Mountain pipeline. In what is surely turning out to be one of the longest approval processes in Canadian history, Trans Mountain Corporation, now a wholly owned subsidiary of the Canada Development Investment Corporation (CDEV), continues to move slowly towards the finish line. While the National Energy Board (NEB) reconsideration report reached the same conclusion as their original submission — that the project is in the best interests of the country — the report also highlighted issues that will impact the entire shipping industry. Indeed, a closer look at the 16 non-binding recommendations of the reconsideration report to the Governor in Council (GIC) could foreshadow a number of potential regulatory changes that extend far beyond the scope of the Trans Mountain project.

Background

To provide just a brief recap of the process so far: After four years of public consultation and regulatory review, results of the NEB’s first review were released in May 2016. The NEB concluded that the Expansion Project was in the best interest of the Canadian public and recommended to the Federal Government that the project be

28 — BC Shipping News — May 2019

While the NEB reconsideration report reached the same conclusion as their original submission ... the report also highlighted issues that will impact the entire shipping industry. approved — which it did on November 29, 2016. Shortly thereafter, an appeal of the decision was launched by no fewer than 20 First Nations, municipalities and environmental groups.

In August 2018, the Federal Court of Appeal (FCA) “quashed” the Order in Council which had approved the Certificate of Public Convenience and Necessity. The court cited two flaws with the NEB’s original review — the unjustifiable exclusion of project-related marine vessel impacts and implications under the Species at Risk Act and the Canadian Environmental Assessment Act, 2012; and a lack of consultation and meaningful two-way dialogue by the Government of Canada with Indigenous peoples. As a result, under order of the GIC, in September 2018, the NEB began the process for a reconsideration review.

On February 22, 2019, the NEB announced the results of its reconsideration hearing and again recommended the approval of the Project, this time subject to 156 Project conditions and 16 recommendations (including one of the original

conditions) for the GIC’s consideration. The conditions are measures that the NEB can enforce as a regulator. The non-binding recommendations are measures that are beyond the scope of the NEB’s regulatory authority.

The “new” NEB results

The conditions of the new reconsideration report were essentially the old conditions with six revisions. Five have timelines for compliance. For example, while the condition to have a plan for implementing marine spill prevention and response already existed, the NEB added that this plan must be filed within six months of issuance of the Certificate. Trans Mountain is required to also confirm continuation of marine spill prevention and response commitments by filing each year after commencing operations.

Another condition — to file an updated Vessel Acceptance Standard and Westridge Marine Terminal Regulations and Operations Guide — requires that Trans Mountain file this at least three months prior to loading the first tanker and re-file each year for the first five years of the operating project.

The sixth change was to the status of Condition 131, a requirement that Trans Mountain undertake a marine public outreach program. This is now considered to be the responsibility of the government and it is recommended that this be assigned to the Pacific Pilotage Authority with appropriate support from Trans Mountain.

The 15 remaining recommendations are measures that are beyond the jurisdiction of the NEB, outside of the scope of the Expansion Project, and recognized to be the responsibility of the government. They call on the Federal Government to undertake such activities as: develop and implement a regional cumulative effects management plan that takes into account the overall environmental state of, and cumulative effects on, the Salish Sea; develop and implement a marine bird monitoring and protection

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A quick snapshot of overall activity in the Salish Sea highlights the small percentage of traffic to and from Westridge Terminal and reinforces the NEB’s decisions for addressing more than just tankers in their recommendations. program to better understand impacts of all vessel use within the Salish Sea; develop an offset program to address both the increased underwater noise and the increased strike risk posed to SARA-listed marine mammals; review and update federal marine shipping oil spill response requirements; develop a regulatory framework for enhanced tug escorts; and work with relevant U.S. regulatory authorities to consider a transboundary vessel traffic risk assessment.

“In reconsidering the proposal, the NEB noted that we had already carried out an extensive review with filings already on record and that the conditions originally issued adequately addressed these,” said Bikram Kanjilal, Director of Marine Development for Trans Mountain. “However, what became evident through the process was that Trans Mountain activities today and, in the future, accounted for a very small percentage of overall marine traffic and that the scope of any one proponent to more broadly address all issues related to SARA and CEAA2012 beyond their own project was unrealistic.”

Impacts

With Trans Mountain’s tanker traffic currently accounting for about 1.1 per cent of the large commercial vessel traffic in the Salish Sea (increasing to about 6.5 per cent if the project were approved), that leaves roughly 94 per cent of the traffic — container ships, bulk carriers, cruise ships, etc.

— outside the scope of the project and more likely to be the subject of increased scrutiny with the new recommendations. “The NEB recognized that there is a broader scope of shipping to consider when addressing issues related to the Salish Sea overall,” said Kanjilal. “The recommendations essentially suggest that government should consider initiatives that take into account all traffic, not just tankers for this Project.”

While the onus is now on the Federal Government to decide whether to accept and implement the recommendations, Trans Mountain is already ahead of the curve on much of it. For example, as part of the regulatory process, they have already undertaken a comprehensive risk assessment for the Project, mirroring one of the recommendations. “In doing so, while our focus was on our Project and its impacts we had to gather a lot of additional information to be able to do things like a traffic analysis and a quantitative marine risk assessment,” he said.

These studies and assessments have already led Trans Mountain to implement measures that would mitigate the effects of increased traffic to Westridge Terminal. “We took a close look at the entire shipping lane between J Buoy and the terminal with an eye to seeing how we could make our traffic safer — whether there were any gaps where things could be done better,” Kanjilal said.

One result from their study was the increased use of tugs (another recommendation from the reconsideration report).

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MARINE TRAFFIC While traditionally, tugs were being used in the Harbour and selectively at other locations along the shipping lane, now, in the case of tankers, a tug remains tethered to the loaded tanker until it has left English Bay and then escorts it all the way to Race Rocks, including a tethered portion through the Gulf Islands. Should the project be approved, the tug escort would be extended right to J Buoy (the western entrance to Juan de Fuca Strait).

Trans Mountain has also been working with the Western Canada Marine Response Corporation (WCMRC) to increase capacity and capabilities for spill response as part of an enhanced response regime, which is estimated to cost about $150 million. That includes a doubling of

the currently mandated response capacity, having eight response bases) and adding up to 120 extra full-time staff. While the enhancements are primarily focused on the project traffic in the Salish Sea, the NEB has also recommended that the government review the current standards to see if there should be “a requirement for additional response resources on all oceangoing vessels.”

While Trans Mountain may be out in front of the regulations, the remainder of the shipping industry is keenly watching developments that may have an impact on the industry as a whole. Additional recommendations include: • The development of short-, medium-, and long-term targets to address the

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cumulative effects of underwater noise, strike/collision risk of vessels with marine species and measures to achieve those targets.

The expedited completion of a study that is looking at the establishment of a Southern Strait of Georgia National Marine Conservation Area Reserve and, if considered feasible, proceeding to establish it.

In conjunction with relevant U.S. regulatory authorities, consideration of the need for a Canada/U.S. Transboundary Vessel Traffic Risk Assessment.

The development and implementation of greenhouse gas reduction measures related to marine shipping that would align with the final International Maritime Organization Strategy by the year 2023 for reducing greenhouse gas emissions. The recommendation further calls for a mechanism to monitor such reductions and to develop regulations under an appropriate legislation.

Acceleration of the development and implementation of Enhanced Maritime Situational Awareness as well as extending the requirement for Automatic Identification Systems to smaller passenger vessels.

Conclusion

The NEB reconsideration report was submitted to the Federal Government on February 22, 2019. The next step is for the Governor in Council to undertake a 90-day consultation period before delivering a final decision. When asked about the timeline in mid-March, Natural Resources Minister Amarjeet Sohi indicated that Indigenous consultations were underway and that, while he expects to conclude the consultations within the 90-day timeframe, Ottawa was willing to ensure they were given “all the time they need.”

If the government does complete the consultations within the 90-day timeframe, the decision could come as early as this summer.

Given that shipper nominations for apportionment are exceeding Trans Mountain’s current pipeline capacity by an average of 30 per cent each month, a positive decision (fingers crossed) can’t come soon enough.

For the rest of the industry however, that benchmark may mean the beginning of a whole new process should the government set about implementing the 16 non-binding recommendations. BCSN 30 — BC Shipping News — May 2019

SPILL RESPONSE

The effect of weather on oil at sea

By Lee Britton Moran Coastal & Ocean Resources

W

Understanding the environmental factors that are critical to the success of a response can increase the efficiency of response efforts and decrease risks to human health and safety.

Wave height and wave type both play an important role during an oil spill response and can make the difference between the oil slick spreading or dispersing into the water column. For the purpose of this article, waves can be broken into two classifications: waves that are breaking and waves that are not. The mechanical process of a breaking wave plunges surface water down into the water column to about 1.5 times the wave height, so a one-metre-high

breaking wave will plunge surface water 1.5 metres into the water column. If surface oil is caught in breaking waves, it plunges that oil into the water column where it can become temporarily submerged and sequentially resurface. This process disperses the oil into droplets, which have a greater surface area and will degrade more rapidly.

Once in the water column, oil is no longer directly affected by wind-generated waves and will spread via currents. Conversely, oil

Photo courtesy Lee Britton

eather conditions have a significant impact on where spilled oil will go, how fast it will get there, the state of the oil when it is collected and therefore how the response to an oil spill is executed. The primary goal when an oil spill occurs is to recover or disperse as much oil at sea as possible prior to it reaching the coastline because, once it does, response strategies become increasingly complicated.

British Columbia is renowned for having severe weather with sea states that are challenging for the most seasoned mariners. When such conditions occur during a spill event, it can leave only short periods of time for recovery or dispersal activities and can stop response efforts altogether.

Understanding the environmental factors that are critical to the success of a response can increase the efficiency of response efforts and decrease risks to human health and safety. The most important factors to consider when understanding the influence of weather on an oil spill are wind speed, wave height, and the type of oil spilled.

Other factors such as tides and currents as well as ambient temperature are important but have less of an impact on oil behaviour.

Wind plays one of the most important roles during an oil spill, not only because of its influence on sea state and therefore operations, but because wind acts to spread the oil at a rate of approximately 3.5 per cent of its speed. The actual rate can vary slightly with water depth so that oil travels more slowly in deeper waters and faster in shallower areas. For example, in the Juan De Fuca Strait, wind speeds are commonly 20 km/hr which could result in oil moving almost 10 km in several hours, and could dramatically increase the footprint of a spill if not contained. The process of oil being spread is an important one because it increases the footprint of the impacted area while decreasing the thickness of the slick which diminishes our ability to recover the oil.

Breaking waves north of Tofino.

May 2019 — BC Shipping News — 31

SPILL RESPONSE slicks that do not enter areas with breaking waves disperse comparatively little oil into the water column. Instead, the surface oil will continue to spread via winds and nonbreaking waves and will decrease in thickness. The net result of all of this is that wave height is known to be a strong predictor for oil dispersion into the water column.

Although tides and currents may not be as important as waves and wind, they still play a significant role which should be considered, especially in waterbodies constricted by the jaws of land. British Columbia has two high and two low tides per 24-hour period, known as semi-diurnal tides. As these tides move into areas that are constrained by land masses, the speed at which the water moves dramatically increases. If tides and winds are working together it can result in an oil slick moving faster than anticipated. Similar to how wind impacts a spill, oil spread by tides ultimately decreases oil thickness but also makes it more bio-available for microbial digestion.

The ambient air and water temperature should be considered and monitored but may only have a minimal impact on a spill.

The temperature of oil while on water is largely controlled by water temperature which in the Salish Sea is fairly cold, averaging approximately 10oC. If oil is spilled in warm water, which occurs in regions like the southern United States, it can increase the ability of an oil to spread by lowering viscosity and allowing for thinner surface slicks. Colder temperatures would result in an increase in the oil viscosity and, in many cases, will reduce the oils’ ability to spread. As the temperature of the oil decreases, the per unit volume density of the oil will increase which should be considered as it may complicate recovery efforts and should guide the recovery technique used by responders. Although this article is focused on the occurrence of oil at sea, it is worth noting that air temperature becomes increasingly important when oil becomes stranded on shorelines. Stranded oil can become much warmer and less viscous which results in the oil becoming more mobile and increases its ability to penetrate into shoreline sediments.

No matter the weather conditions, the type of oil that has been spilled is

an absolutely critical component. Each oil type, whether it be gasoline or fuel oil, is composed of thousands of different hydrocarbons which results in each of them having different physical and chemical properties. Because each oil has different characteristics, the prevailing environmental conditions will have a unique but predictable impact on them. By way of example, using common environmental conditions for southern British Columbia (wind speed five m/s and a water temperature of 10oC) with the National Oceanographic and Atmospheric Administrations (NOAA) Adios 2 model, it is predicted a common diluted bitumen (Access Wester Blend) will evaporate by 27 per cent within the first five days.

For comparative purposes, using the same environmental variables, it is predicted that gasoline would evaporate by 98 per cent within the first five days with the majority of that occurring in the first 12 hours. It is important to note that changes to density, viscosity and the amount dispersed also occur in predictable manners from both the gasoline and the diluted

vanmaritime.com GirlsRComing_BCS_March_2019_1a.indd 1

32 — BC Shipping News — May 2019

2019-01-29 11:12 AM

SPILL RESPONSE bitumen but are not discussed in this article. With the only difference in these two modelled scenarios being the type of oil product, it is easy to recognize that this is an extremely important component during a spill. Responders and the incident management team should be acutely aware of this phenomenon and use that information to guide response tactics.

Weather is something that plays an important role during a response and can make the difference between a spill having a small footprint or a large one. Severe weather not only impacts field operations but how and where oil is expected to be found. Breaking waves can impact a spill by pushing the surface slick down into the water column, dispersing it through the top layer of water which makes the oil harder to recover but increases its surface area and therefore allows it to biodegrade more quickly. Winds act to disperse the oil over a larger area, reducing the slick thickness, which can lead to it being more difficult to recover. Tides and currents become increasingly important to oil dispersed into the water column as they become the primary mechanism for distribution of entrained oil. The ambient air and water temperature can affect the rate of spreading and influences how fast the oil degrades which becomes increasingly important once oil is stranded on shorelines, especially in regions such as British Columbia where water temperatures are relatively low. Different oils have different chemical and physical properties and will interact with the same environmental conditions in very different ways which will guide how and where response efforts are deployed. Understanding how the prevailing environmental conditions can impact the behaviour of oil during a spill can help create a successful response by allowing the incident management team to mount efforts that are informed by scientific knowledge. This knowledge increases the likelihood that they will be able to find and recover as much oil as possible, minimize the overall time of the response, reduce worker’s exposure to unnecessary weather conditions, and reduce the severity of the environmental impact of the spill.

Lee A. S. Britton, M. Sc., A. Ag. is a Project Scientist with Moran Coastal & Ocean Resources, located in Vancouver, B.C. He can be reached at Lee@coastalandoceans.com.

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May 2019 — BC Shipping News — 33

LNG TERMINAL

LNG Canada gets started

By Mark Turner, Senior Marine Advisor LNG Canada

O

n October 1, 2018, the Joint Venture Participants in LNG Canada made a final investment decision, which moved the Project immediately into construction. It was a great day for our company and an equally great day for northern communities, First Nations, British Columbia and Canada — as they all will benefit from the jobs, contracting and economic development opportunities that accompany a mega project like our own.

At the peak of construction, we expect to need approximately 7,000 to 7,500 construction workers, with about 4,500 on site at any given time. LNG Canada, and our engineering, procurement and construction contractor, JGC-Fluor, are committed to hiring locally first, then within the region and the province, before looking to

LNG Canada is a member of BC Chamber of Shipping and we work closely with all the local marine industry partners to improve safety of shipping and marine operations. hire across Canada. Construction workers from outside Canada are not expected to be required for completion of the project.

LNG Canada is unique among current LNG facilities as we have designed our facility with the lowest GHG emissions of any large-scale LNG export facility currently operating anywhere in the world.

When LNG is used to displace the use of coal for power generation, there are further significant GHG reductions, making natural gas an ideal fuel to support energy transition.

Currently, the majority of work on site is to ready the site for construction. Tree clearing, stream diversion and dredging are some of the activities taking place on site, and piling has just commenced.

We are expecting to deliver first cargo before the middle of the next decade.

The regulatory process

The vast majority of regulatory process involving permitting approvals has been completed. The regulatory process ahead will now turn to managing and demonstrating the

Figure 1 — Design concept showing the tank location of the vessels to be visiting LNG Canada’s terminal.

34 — BC Shipping News — May 2019

LNG TERMINAL fulfilment of our regulatory commitments, and ensuring an account of the breadth of numerous minor permit approvals.

Working with the marine industry

LNG Canada is a member of B.C.'s Chamber of Shipping and we work closely with all the local marine industry partners to improve the safety of shipping and marine operations. This includes adopting industry best practices, increasing awareness of the benefits of using modern technology and cleaner fuels in the marine operations. We understand the importance of demonstrating care for the environment and marine mammals and all other marine species in B.C. navigable waters.

Douglas Channel navigational aids will provide an uninterrupted and blind sectorfree coverage of all project-related marine traffic through a dedicated AIS receiver at Kitimat and various other relay stations fitted by the Canadian Coast Guard. The LNG terminal approach and berths will

Figure 2 — Inside the vessel’s cargo tank. be fitted with state-of-the-art equipment to assist vessel staff and BC pilots to make a safe approach and departure from LNG Canada’s marine terminal in all conditions

of visibility. This equipment will include weather monitoring stations, navigational leading and sector lights as required, radar and AIS coverage, Differential Global

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LNG CANADA Positioning System (DGPS) reference stations, speed of approach displays on shore and on hand-held devices for pilot use, doppler speed logs on LNG carriers, multiple communication channels VHF, DSC available 24/7 and marine traffic coordination

by Canadian Coast Guard.

We are also working closely with Pacific Pilotage Authority and BC Coast Pilots Ltd. on all aspects of making the LNG carrier transit from Triple Island pilot station to Kitimat and back as safe as practicably

possible. We have conducted multiple simulation studies with participation of pilots and marine experts to validate a safe transit route, harbour approach and berthing of LNG carriers. We have considered all plausible exigency, emergency and worst-case scenarios and weather conditions in selecting the safest route and procedures. We have incorporated qualitative and quantitative risk assessments in developing processes and procedures and building the capacity to control and provide the requisite assurance. The escort tug’s

capacity of 90 to 100 tonnes bollard pull recommended by pilots, and also supported by simulation exercise results, have been incorporated as LNG Canada tug specifications in the RFP for tug services. LNG Canada will have three escort tugs each having 90 to 100 tons bollard pull capacity. In addition, three harbour tugs will be stationed in Kitimat for berthing the LNG carriers and the harbour tugs will each have 65 tonnes bollard pull capacity.

LNG Canada expects that the number of direct local jobs support will be in excess of 80 people, and indirectly, may exceed 120 to support LNG Canada’s marine operations.

The ships that will visit

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The LNG carriers visiting the Kitimat terminal will have a carrying capacity range of 155,000 m3 to 185,000 m3 with the most likely size having a capacity of 170,000 m3 capacity. Typical size and tank capacities can be seen in Figures 1 and 2 LNG carriers are designed and built to the highest marine standards and are capable of withstanding all possible collision, allision situations and maintain cargo containment. The cargo carrying tanks are designed to minimize cargo sloshing and are always loaded to more than 98 per cent of the capacity. The cargo tanks are fitted with multiple layers of safety and monitoring instrumentations to measure the conditions in and around the cargo tanks for temperature, pressure and hydrocarbons in the inter-barrier space. The vessels are also fitted with reliquification machinery to minimize the cargo loss due to boil off. The vessels are inspected regularly by flag state inspectors, classification society inspectors, Transport Canada inspectors and others to assure the vessels are maintained and operated safely.

Forward looking

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While there has been some preliminary speculation on expansion beyond the current capacity, LNG Canada’s Joint Venture Participants have only given the green light for the first two processing units or “trains.”

We expect they will have a capacity of around seven mtpa. The expansion decision is up to the five JVPs to make, and it is too early to speculate as to what process, if any, would be required. What I can say is that we expect the number of carrier transits to increase to one per day and we don’t envisage any change in how these carriers would transit, for example, the number of required tugs.

PROJECT CARGO

AAL seeing opportunities for growth on the West Coast

S

everal major projects coming to realization on the North American West Coast have caught the eye of AAL Shipping — none more so than here in British Columbia. “There are a few interesting projects coming up — LNG Canada, for example — that could support a feed strong enough to grow into a more regular service for exports,” said Michael Morland, General Manager, Americas, AAL Shipping.

Given their expertise in the freight forwarding and project cargo industries, combined with their familiarity of the region and one of the youngest, multi-purpose fleets worldwide, AAL is in good stead to pursue upcoming opportunities. Working with Marc Schutzbier, Commercial Manager of AAL’s Canadian operations, along with Operations Manager Tanya Britton, Morland and his team are eager to see more activity on the West Coast.

AAL is no stranger to Canada’s West Coast. The company established an office in Vancouver in 2015 to support its popular monthly ‘Pacific Liner Service’ between North America and Asia. But, recognizing

Given their expertise in the freight forwarding and project cargo industries, combined with their familiarity of the region and one of the youngest, multi-purpose fleets worldwide, AAL is in good stead to pursue upcoming opportunities. the cyclical nature of the shipping industry, they had to scale back in 2018. “Our front haul was our carriage into the marketplace when there was a project feed,” Morland said, “but once that activity died down, the outbound traffic wasn’t enough to sustain a monthly liner rotation so we adjusted our service to a tramp chartering model — but with the ability and the experience needed to re-start a more regular service again, when justified.”

Indeed, AAL was busy in B.C. while a number of infrastructure projects were underway — the Johnson Street Bridge in Victoria, Viterra’s new grain loader, the Rio Tinto Kitimat Smelter upgrade, the North West Redwater Partnership Refinery, Prince Rupert’s Ridley Island Coal Terminal and,

The AAL Singapore at Ogden Point to deliver infrastructure for Victoria’s Johnson Street Bridge (inset: Michael Morland, General Manager, Americas).

of course, Seaspan Shipyards’ Big Blue crane. While activity has slowed in recent months, Morland sees the LNG Canada project as a potential catalyst for civil construction, accommodation, port development, etc. “And on the back of that, the feed might be strong enough to build that more regular route for exports that we are targeting.”

Morland understands that the LNG Canada project will require the movement of a significant cargo volume of freight — everything from the liquefaction plant infrastructure to the marine terminal that will need to accommodate two LNG carriers as well as the port facility and pipe for the pipeline. This volume will for sure keep both ports and carriers busy over an

PROJECT CARGO extended period and there will be additional project cargo needs perfectly suited to AAL’s 31,000 dwt A Class and 19,000 dwt S Class vessels.

“The first phase of the project will be mostly intra-Asia shipments before cargo starts making its way to Canada,” said Morland, adding that he understands LNG Canada will be deciding on a freight forwarder within the month with project cargo movements starting in a May/June timeframe. “Part of the scope of the freight forwarder is to come up with solutions on the best way to handle the feed into the facility — staging and storage, etc. Each proponent will come up with slightly different solutions and once we know who will be doing the actual freight forwarding, we’ll be seeking to work more closely with them.”

AAL’s fleet of 26 multi-purpose vessels is one of the youngest in the project cargo sector. “We have invested hundreds of millions of dollars in designing and building vessels that are perfect for the demands of the heavy-lift and project cargo sectors,” said Morland. “Our cranes have a combined lift of up to 700 tonnes — like the

ones that brought in the Seaspan crane.”

While the vessels are very advanced in terms of meeting the heavy-lift needs of the market, Morland said that the value-add for AAL lies in their back-haul capabilities.

“We market ourselves as project cargo but we also carry bulk — 90 per cent of what we carry out of the Americas is bulk related.

There’s not a lot of project cargo being exported from here, so the flexibility of our multi-purpose ships is a major attraction for shippers and our A-Class fleet features five covered cargo holds ideal for bulk commodities and featuring market leading intake of 40,000 cbm.”

In addition to a high safety record and strong performance results for transporting project cargo from Asian ports to the Americas, AAL prides itself in ensuring a well maintained and efficient fleet.

For example, AAL’s ships are already using low sulphur fuel to meet regulations in Emission Control Areas and Morland noted that the company will continue to use low sulphur fuel to meet IMO 2020 regulations.

“We considered scrubbers but, by using low sulphur fuel, we won’t have to deal with any

residue. And we are not alone, not many other major MPP carriers have shown an appetite for scrubber installation either.”

While Morland and AAL are actively pursuing opportunities within the LNG sector — LNG Canada, Kitimat LNG and Woodfibre — he is also very much aware of the other projects in the Pacific Northwest that could point to a coming upswing of activity. “The wind energy sector has been very active,” he noted, “and there are civil projects, port development projects and even metro system projects that can keep us active all along North America’s coast, including ports in the U.S. like Seattle and Portland.”

In terms of timing and as noted earlier, Morland is expecting the LNG Canada project to start with intra-Asia movements in 2019 and early 2020 but expects transports from Asia to the West Coast to last from mid-2020 to 2022, depending on the construction work timing of major project contractors JGC-Fluor.

In the meantime, Morland and his team are always on the lookout for reasons to visit Vancouver. BCSN

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MARITIME PROFILE AMIX Group

Construction, deconstruction and moving cargo on the waterfront

W

...AMIX Marine Projects is the link in the company that pulls

hen looking at the many capabilities of AMIX Group, there is an overlapping symmetry that appeals to Tony Marra, Director of Sales. “I like the way we can draw a line all the way through our operations,” he said. Using the example of marine pilings, Marra described how AMIX Group can provide new piling through AMIX Steel & Surplus or Western Concrete; pull out the old pile and install the new one using the AMIX Marine Projects and AMIX Marine Services divisions; and then either salvage or recycle the old one through AMIX Marine Salvage. It’s this ability to leverage each of their services that accounts for much of the company’s success.

resources from each division to bring solutions to complex marine projects. purpose-built container barge NT 12000 with a 1,044-TEU capacity is also used as a project barge, servicing the steel transload requirements of importers to Vancouver ocean terminals — another example of the company’s general cargo transport capability.

In speaking about the services provided under AMIX Marine Salvage, Project

Coordinator Chad Carter described the process behind remediating a vessel to the stage where it can be recycled — first removing hazardous material and fluids then salvaging components of value before ending up with a steel shell that can be recycled at AMIX’s yard on the Fraser River or, in the near future, at a new property site in Howe Sound (more on that below).

Background

Photo courtesy AMIX Group

Before getting into the details of some of the unique projects and activities on the go and coming up, establishing a basic knowledge of the five divisions was the first order of business.

Looking first at AMIX Marine Services, Fleet Operations Manager Dan Virtanen noted that wood fibre transportation is the staple of the business — specifically, bundled logs and wood chips — as well as general towing and barging. “We have two steady runs of woodchips originating from Oregon and our transload facility in Prince Rupert,” he said. Virtanen added that the facility in Prince Rupert, as well as those in Surrey and Chilliwack, provide transload services for all manner of cargo — heavy equipment, break bulk, construction and demolition materials to name a few — and transport anywhere along the west coast of North America as well as long-hauls to other parts of the world given their International Load Lined equipment.

A piece of new business for the Marine Services division is managing a roll on — roll off trailer service originating from the City Transfer Terminal in Richmond destined for the Sunshine Coast/Howe Sound and Powell River. “We purchased a barge, the AMIX 2000, for the trade and manage the towing services,” said Marra. The

Job complete! Vancouver harbour anchorage #1 was recently reopened after AMIX recovered a runaway anchor and chain.

May 2019 — BC Shipping News — 39

MARITIME PROFILE

Photo courtesy AMIX Group

AMIX flagship NT 12000 with a 15,000-ton capacity. It now serves the coast as a project and log barge and is also container ready.

Vessels requiring deconstruction come from a variety of sources including Coast Guard, industry and individuals. “However,” notes Carter, “fully 50 per cent of the vessels of concern and derelict vessels are made of fibreglass or wood and can be found in various states of complete disintegration, offering little salvage value.”

AMIX also has Steel & Surplus in Chilliwack — a growing steel distributor with a wide range of products to service all customers from walk-ins to major fabricators as well as Western Concrete, an 11-truck ready mix company, also in Chilliwack.

•

Every project is different

Saving the most multi-faceted division for last, AMIX Projects is the link in the company that pulls resources from each division to bring solutions to complex marine projects. Encompassing all divisions, AMIX Projects acts as a one-stop shop to offer lifting, transporting, storage, transloading and assistance to construction and deconstruction projects.

The best way to describe AMIX’s capabilities is by example. And of the examples, each shows a unique situation that required a tailor-made solution.

• Most recently, AMIX worked with Dynamic Heavy Lift to remove and recycle the crane that collapsed onto a container ship at Vanterm in early February. “The Arctic Tuk was on site 40 — BC Shipping News — May 2019

•

•

•

for about a week,” said Marra, “with our project barge, the NT12000, which has a 15,000-ton capacity. We used specialized recycling equipment, including ‘monster’ shears, to do the final dismantling.”

Earlier this year, AMIX assisted Jones Marine Group in recovering the Samantha J which sank over four years ago. The tug was brought to the surface and put on the deck of The Arctic Tuk where 35,000 litres of water and other liquids were pumped into containment tanks. “After being down 240 feet of water for four years, once we put it back in the water and remediated the liquids, it floated just fine,” Marra said, noting Jones’ plan to get the vessel back into the fleet.

Last year, AMIX lifted six RTGs off the dock at Vanterm and took them away for recycling; another four are scheduled for recycling this year but will be rolled onto a barge this time.

Also last year, AMIX recovered a ship’s anchor in the Port of Nanaimo. While the piece was destined for eventual salvage, AMIX donated the chain to the Port where it is now on display. Another anchor recovery was recently completed in the Vancouver harbour.

Development of new and renovation of existing infrastructure on the Vancouver harbour north shore waterfront will see the AMIX Projects team on location for extended periods this year. Projects

include shiploader installations at G3, Neptune and Fibreco.

Mixed in amongst the larger projects, AMIX works closely with the steamship community on a steady stream of project cargo, transformer and boat lifts. Servicing vessel discharge at anchor or alongside a terminal using their heavy lift capabilities.

Assets supporting operations

Supporting all of AMIX’s operations is a fleet of 16 barges, five tugs and six cranes/ crane barges as well as a number of pieces of specialized equipment used for recycling, salvage and heavy lifts. Marra described a continual process of maintaining, upgrading and acquiring new assets. “We have a number of vessels that have reached end of life and are in the process of being salvaged and recycled (by AMIX Marine Salvage, of course),” said Marra, “for example, the Commander, the Audrey Gail and the Invader. And as the older fleet of tugs, barges and equipment moves through the decommissioning stage, we are bringing on new assets — most recently, the Amix 2000 cargo barge, a 4600-series 5 Manitowoc 350-ton capacity crawler crane and a specialized mobile container stuffing unit.”

Other equipment that can be employed for specialized services include the Think Big, an 85 x 140-foot spud barge; the Miller 202, a 50 x 200-foot semi-submersible equipped with an 80-ton Skagit winch; and

MARITIME PROFILE the CFL #3, a fully submersible 1,200-ton capacity dry-dock.

Dan Virtanen added that the 1,500 HP Sea Warrior was put back into the fleet in 2017 and has been fully utilized ever since, indicating that the company is now considering next steps in terms of fleet expansion.

A busy time ahead

As mentioned earlier, AMIX has signed a long-term lease on a new property site in Howe Sound. The facility focuses on trailer cargo transload but could soon expand into use as a recycling location for marine-based infrastructure. “While our inland recycling facility is more retail-oriented, this new facility will include marine recycling like the RTGs out of Vancouver, the ship to shore crane as well as barges and boats,” said Marra, adding that there are plans to develop a marine industrial complex in the area that would “support our requirements around tug and barge and other marine maintenance as well as potentially to the other industrial complexes there — the log yards, pulp mills, etc.”

When speaking about AMIX’s properties, Marra noted that they are currently in discussion with the Province to determine the impact of the new Pattullo Bridge on their Surrey property. “We’re in the throes of it right now but it’s looking like the site will be needed for the project,” he said.

“We’re still investigating options — for example, whether we have one property or multiple properties as a replacement.”

Complicating the process is the lack of commercial waterfront, something the Port of Vancouver has been sounding alarms over for the past decade. “It will be very difficult to recreate what we have already,” Marra continued. “There are a number of requirements — deep, protected water; land zoning, proximity to rail and highway, etc. — as well as keeping in mind a location that takes into account our staff. We put a lot of effort into training and, if we’re too far away, we’ll run into challenges in retaining our current team.”

Indeed, both Marra and Virtanen expressed a great deal of pride when speaking about the talents and skills of their crew. “We recently had five of our machine operators obtain their red seal from the

Industry Training Authority as a result of the crane operator training program that we developed in house,” said Virtanen. “And we’ve had eight of our marine crew go on to be pilots, including the youngest Master ever to be accepted into the pilotage.”

Marra echoed Virtanen’s comments: “We provide a lot of support to staff who want to further develop skills. And we are always working on continuous improvement — for example, through quarterly committee meetings with masters, mates, deckhands and engineers to plan activities and prepare for upcoming projects.”

“When I think about all of the services the AMIX Group can provide and all of our expertise, it really revolves around the creation of infrastructure or the demolition of infrastructure,” Marra said. “And all of our divisions can be stitched together all the way through a project — fabrication with our Steel and Concrete divisions; removal and remediation with our Salvage division; or creation of new infrastructure with our Marine Services and Projects divisions. We see that as our area of expertise and valueadd to our services.” BCSN

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www.lubrilabbc.com May 2019 — BC Shipping News — 41

ARCTIC SHIPPING

Arctic shipping challenges remain

By Captain David (Duke) Snider Martech Polar

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As traffic into and out of the Arctic increases, are we ready for it? How can we deal with Arctic shipping challenges today and into the future?

All climate models agree, as long as sea ice does exist, it will be present in the Canadian Arctic Archipelago and pose a potential hazard to shipping. Even considering the slowly decreasing extent of sea ice due to climate change, ice conditions remain highly variable, both seasonally and annually. Non-ice class vessels remain restricted to a very short season and can still be disrupted by the variable ice conditions that prevail. The situation in 2018 is an excellent example. Heavy ice blocked the central Canadian Arctic, preventing both resupply arrivals in communities and transits of ice class passenger vessels.

Experienced operators know that for all but the shortest periods in the most southern regions of the Arctic, ice class vessels continue to be required. Furthermore, all vessels regardless of ice capability must be

Photo courtesy Martech Polar

very spring, popular media opens their files and repeats the latest predictions of coming ice-free summers in the Arctic. Those unfamiliar with the present reality leap to proclaim an imminent rapid rise in shipping through our remote waters, alternately looking for a boom in business or a pending catastrophe. Those familiar with working in Canada’s Arctic waterways are well aware of the changes in the environment as “shipping seasons” grow longer, but we still see the Arctic as a challenging shipping environment, yet neither boom nor bust.

Measured traffic studies indicate that neither the Russian Northern Sea Route nor Canada’s Northwest Passage will ever really replace Suez or Panama Canal routing, however incremental increases in destinational shipping, that is, inbound or outbound voyages to resupply communities, export resources or provide shorter “expedition” cruises are ongoing. As traffic into and out of the Arctic increases, are we ready for it? How can we deal with Arctic shipping challenges today and into the future?

Heavy old ice off Point Barrow in early July.

42 — BC Shipping News — May 2019

prepared for what the remote Arctic world can throw at them.

The shipping routes and destinations in the Arctic region remain far-flung and distant from support infrastructure. There were sound reasons for Crystal Cruises chartering a support ship to accompany their two cruises of the Crystal Serenity that garnered so much media attention. Looking at the North American Arctic alone for example, the only facilities for fueling ships are found in either Nuuk, Greenland, or Dutch Harbor, Alaska (The ex Nanisivik mine fueling facility slowly being brought into operation will support only Royal Canadian Navy and Canadian Coast Guard ships). Only limited repair facilities are available in each of these far-flung locations. Though Iqaluit is in the process of developing a single berth to permit alongside resupply, there are no publicly available deep-water berths in the North American Arctic. The small communities that otherwise dot the shores of Greenland, Canada and Alaska can offer no substantive resupply or support to shipping. The Arctic remains a “come as you are” proposition for operators.

Though much was made of the Arctic Council SAR agreement of 2010 that divided the Arctic into SAR regions of responsibility between the five Arctic Coastal States, little change has been made to Arctic SAR infrastructure in the North American Arctic. Canada’s Royal Canadian Air Force SAR air assets remain based in the south of Canada with many hours flying time from a possible incident. The Canadian Coast Guard is gradually increasing stocks of pollution response equipment in the Arctic, but struggles to maintain their fleet of aging

ARCTIC SHIPPING Photo courtesy Martech Polar

Arctic-capable ships that would be required to load and then deploy the new equipment.

To be fair, Canadian Arctic communities are being provided small boats suitable for local response to small incidents and training in both SAR and pollution response, but neither can deal with a major SAR or pollution incident.

Though not an “Arctic” shipping incident in the true sense, the recent main engine failure of the large passenger ship Viking Star off the coast of Norway has highlighted many concerns related to the ongoing increase in marine traffic in the Polar regions. This incident resulted in a happy ending in that no lives were lost and no environmental impact or damage to the vessel occurred. It could have been demonstrably different. Sea conditions precluded the safe evacuation by lifeboat and the decision was made to begin airevacuation by helicopter. Had the anchors not held, the ship would undoubtedly have grounded on the lee shore, perhaps before all passengers and personnel had been safely evacuated. Nearly 500 passengers had been lifted before the ship’s team was finally able to restart the main engines and limp into port. Nearness to land and nearness to pre-positioned Norwegian SAR air assets made this possible. Even then, neighbouring countries such as Sweden and Denmark “cascaded” in their own SAR helicopters to either back stop southern Norwegian assets moved north to assist the Viking Star or to support the evacuation directly. This would not have been as possible in our own Canadian Arctic waters in as timely a manner. CCG icebreakers could be days away, RCAF SAR helicopters as much as 12 hours or more. What would have been the result of a similar incident in storm tossed Baffin Bay or Amundsen Gulf?

Operators must be prepared for the differences that exist and that separate voyages in this remote region from operations in subArctic waters. Voyage planning is not only becoming aware of the myriad of unique regulations that impact Arctic operations — from the IMO’s Polar Code down to national coastal state, regional and other regulations and guidelines — but ensuring ships and crews are suited for the intended voyage.

Extraordinary pre-voyage consultations are not only required but highly advisable for new operators. Exceeding requirements is beneficial in meeting the heightened awareness of local communities along a route.

On the bridge during the early season in the Northwest Passage: Captain Victor Gronmyr CCG Observer; Second Officer Ilka Alhoke; and Captain Jyri Viljanen.

Planning and executing an Arctic voyage can benefit from reaching out to those more experienced in Arctic operations. Lessons can be learned from experienced Arctic shipping operators. Advice and assistance in pre-voyage planning along with provision of onboard expertise in the way of experienced and certified Ice Navigators that meet both Polar Code and Nautical Institute certification can be arranged.

Though many challenges face operators in the Arctic environment, with appropriate planning, preparation and execution, voyages can be conducted safely. Ensuring the ship is fit to the task (possessing the appropriate ice class for the intended voyage) and manned (with the appropriately trained,

experienced and certified personnel) and that all involved are aware of the unique environmental and regulatory requirements go hand in hand. Many of the factors that must be considered prior to and during voyages in the Arctic will be discussed at the two-day Arctic Shipping Challenges Conference hosted by the British Columbia Branch of The Nautical Institute 23/24 May in Victoria, B.C. Captain David (Duke) Snider, founder of Martech Polar, is an ice pilot and ice navigator with extensive Arctic and ice navigation experience in Canadian, American and Greenland waters, Arctic and Baltic waters, and the Gulf of St. Lawrence. He can be reached at snider@martechpolar.com,

Positions available in 2019:

- Able Seamen - Electricians - Carpenter - Deck Hands - Engine Hands - Engineering Administrator - 4th Engineer

May 2019 — BC Shipping News — 43

NAVAL SHIPYARDS Canadian Fleet Maintenance contributes to New Zealand frigate modernization program

By Darryl Anderson Managing Director, Wave Point Consulting

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arly on a cool and overcast March morning, a small groupof guests ventured out to Rocky Point near Victoria to welcome the New Zealand frigate HMNZS TE MANA. The boarding party consisted of Nick Fleming, New Zealand Consul General and Trade Commissioner; Canadian Navy personnel including Captain Brian Costello, Chief of Staff Maritime Forces Pacific; and frigate upgrade team members Joseph Lobo and Bill Cole among others. The occasion marked the arrival of just the second foreign naval vessel scheduled to undergo modernization in a Canadian shipyard since the Second World War. The honour of being the first foreign naval vessel belongs to the TE MANA’s sister ship HMNZS TE KAHA which arrived in 2018.

Onboard HMNZS TE MANA was Commanding Officer Lisa Hunn of the Royal New Zealand Navy. She was supported by the local New Zealand frigate systems upgrade project office which consists of Commander Matthew Wos and

While in Canada, both New Zealand frigates will undergo extensive upgrades to their surveillance, combat and selfdefence capabilities.

Lieutenant Commander Andy James, also of the Royal New Zealand Navy, and Julia Delogu, FSU Integrated Project Team Lead Representative, New Zealand Ministry of Defence.

BC Shipping News was invited to experience HMNZS TE MANA’s voyage into Esquimalt Harbour and to interact with a cross-section of personnel with the intent of offering a more in-depth glimpse for readers as to the purpose of the visit and the crew involved. Before the voyage there was an opportunity to also explore some of the vital work the staff of the Canadian Navy’s Fleet Maintenance Facility (FMF) Cape Breton perform as they support both the ongoing needs of our own navy and the New Zealand frigate modernization project.

The New Zealand frigate HMNZS TE MANA was welcomed into Esquimalt Harbour in March.

44 — BC Shipping News — May 2019

Purpose of the visit

While in Canada, both New Zealand frigates will undergo extensive upgrades to their surveillance, combat and self-defence capabilities. It will allow the ships to match current and future threats and address obsolescence of some of the frigates’ current systems. Frigate systems upgrades include the replacement of combat and self-defence systems with improved radar and targeting systems, a new combat management system and many other improvements to protect the ships. Lockheed Martin Canada is the prime contractor and has arranged with Seaspan’s Victoria Shipyards to perform the work. The entire project has an expected completion date of 2021.

HMNZS TE MANA arrived in Canada with 134 New Zealand crew members (including several trainees) and 15 Canadian sailors who joined the ship when it stopped in Hawaii. The frigate has 30 officers and the balance is enlisted personnel. The four primary trades employed on the frigate are mariners, engineering, supply and operations staff.

When the New Zealand frigate arrives dockside at CFB Esquimalt, the “get to work” phase of the project will commence.

According to Lieutenant Commander James, members of both the New Zealand and Canadian Navy will work together to remove equipment and machinery from the ship and prepare it for storage during the time the vessel is in the commercial shipyard.

The crew remained on board for one week and then move into CFB accommodation for junior rates, senior rates and officers’ rooms. After this time, a small duty watch will remain on board at all times until May 1

NAVAL SHIPYARDS

The Fleet Maintenance Facility Cape Breton has undergone a full transformation and is now the largest enclosed building of its type on North America’s Pacific coast. but the majority of sailors will be accommodated ashore.

After May 1, the majority of the New Zealand sailors will return home except for the 20 crew members from marine engineering, supply and logistics trades who are part of the “keep-alive team.” The members of the keep-alive team rotate every 12 weeks.

New Zealand Lieutenant Commander Andy James, along with Commander Mathew Wos and Julia Delogu of the New Zealand Ministry of Defence, are part of the three-person project staff that is located in Victoria for the duration of the upgrade to both frigates.

Major upgrade initiatives are a bit unique for some navy personnel because they get to stay with a project for an extended period rather than being assigned to a new position on a more frequent basis. Lt Cdr Andy James commented that continuity is vital for project success and he has been part of the frigate upgrade team for the past six years.

Canadian Fleet Maintenance

When HMNZS TE MANA arrives in Esquimalt, the crew onboard will be able to observe with keen intent the physical changes that have occurred to HMNZS TE KAHA that currently sits dockside at Victoria Shipyards.

Upon disembarkation, the crew also note that the Cape Breton facility is a bustling place with a diverse team of more than

1,000 project managers, engineers, technicians, tradespersons and support staff. It is a modern industrial shipyard that delivers technically ready warships and submarines to achieve Royal Canadian Navy objectives and deployments around the globe.

According to Captain Ed Hooper, Commanding Officer at Fleet Maintenance, the Cape Breton handles every aspect of maritime maintenance including fabrication, maintenance and repair — all to keep the Navy’s West Coast fleet operational.

Defence Construction Canada observes that the 376,737-square-foot Cape Breton facility is one of the largest enclosed buildings of its type on North America’s Pacific coast.

The experience of upgrading the Canadian frigates no doubt plays an essential role in helping the Canadian Navy understand and anticipate the needs of their New Zealand counterparts. However, the can-do attitude of the Cape Breton staff is woven deeply into the organization’s DNA, perhaps as a result of the need to address the opportunities and challenges associated with a multi-year upgrade project to their facilities. The purpose of the Cape Breton upgrade initiative is to replace antiquated, outdated and deficient industrial facilities and to transform and modernize the FMF Cape Breton industrial workplace. At its completion in 2019, nearly 200,000 square feet of additional shop space, amongst other upgrades, will be available.

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May 2019 — BC Shipping News — 45

NAVAL SHIPYARDS The transfer of care from the Royal New Zealand Navy (RNZN) to Lockheed Martin Canada and Seaspan’s Victoria Shipyards could not occur without the staff of the Cape Breton being deeply involved in the planning and execution of the work.

Captain Hooper commented that the role of the Royal Canadian Navy’s Canadian Fleet Maintenance is to prepare the ship for arrival and get it ready for the commercial shipyard. In its simplest form, the work consists of taking equipment and material off the vessel, making the equipment prepared for storage, safekeeping the items while in storage and returning the items to the ship once the frigate returns from the commercial shipyard. Canadian Navy staff also support the New Zealand Navy when the upgraded frigates undergo sea trials.

Canada and the Fleet Maintenance Service have experience in supporting Canadian frigate upgrades and the knowledge and insights gained help with the proper sequencing of the work and getting the vessel prepared for the next phase.

Nevertheless, the work on the New Zealand vessels also comes with some unique learning challenges. For example, a specific type of lubricant was required by the New

46 — BC Shipping News — May 2019

Zealand frigates while specific equipment was being prepared for layaway. However, the lubricant was not commercially available in North America, and the project team needed to successfully work through the steps of obtaining approval for a change order or securing the product from an alternative supply chain.

The above example illustrates that attention to details and seemingly small items can impact the efficiency of the workflow. It also demonstrates the value of project planning and clarifying working assumptions when faced with a new opportunity, even if it is similar to past project work. To help proactively bridge the possible gap on “operating assumptions,” Canadian engineering personnel travelled to New Zealand during the planning phase to familiarize themselves with the technical details of the ships.

Benefits to Canada

In addition to the obvious economic benefits of working on a multi-year, multiship upgrade program that Captain Hooper was quick to acknowledge, he also offered more nuanced reflections on other benefits.

From the perspective of the Royal Canadian Navy, the benefits to Canada of working with

New Zealanders on the frigate upgrades is a chance to collaborate with an ally and partner over a prolonged period: it allows for a good stable working relationship to develop.

The Canadian Navy had previously collaborated with New Zealand including providing assistance during the 2011 Christchurch earthquake. However, a more intense bond develops as the level of trust between the two countries has the potential to impact even how the two navies train together.

“It was an honour to represent the New Zealand Government on the last leg of HMNZS TE MANA’s voyage into Esquimalt Harbour, where it will join HMNZS TE KAHA in the Frigate Systems Upgrade program, taking place at the Royal Canadian Navy’s Fleet Maintenance Facility Cape Breton,” said Nick Fleming, New Zealand Consul General and Trade Commissioner. “It is a shining example of collaboration between our two countries which provides benefits for both.”

Commander Amit Bagga, Operations Manager, observed that from a Navy perspective, the benefits of the New Zealand frigates is that they have a common platform and technological solution which increases the ability to work together. The second benefit of a shared technology platform is that it helps guard against technical obsolescence because the platform has more active users so there is an incentive to keep it current and leverage the costs of upgrades.

Also, some aspect of the technology platform may be suitable to be used in other vessel types such as Arctic offshore vessels and supply ships.

Captain Hooper also noted the considerable professional development opportunities that are available for both navy and civilians involved and, “as an organization, you sharpen your problem-solving skills.”

Project success relies on a militarycivilian partnership that is now a proven concept which will influence the evolving nature of the relationships of all involved.

Both Captain Hooper and Operations Manager Commander Bagga agreed that the work on the New Zealand frigate upgrade could lead to other opportunities for similar work from other smaller countries’ navies where Canada is part of an alliance or form of international partnership.

Darryl Anderson is a strategy, trade development, logistics and transportation consultant. His blog Shipping Matters focuses on maritime transportation and policy issues.

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LEGAL AFFAIRS

New regulations come into force for passenger liability insurance

By Glen Krueger A Vancouver lawyer with Bernard LLP

O

n June 16, 2000, the True North II sank in Georgian Bay, resulting in the drowning of two children.

An inquest by the Ontario government found that the owner-operator of the vessel was not insured and recommended that commercial ships carrying passengers be required to have liability insurance.

Although in place for nearly two decades, the liability regime created by the Marine Liability Act for all commercial and public-purpose ships engaged in the carriage of passengers did not, unto itself, require maintenance of insurance towards this liability. Thus, passengers may not have been able to receive compensation in the event of a marine incident resulting in liability on a ship owner or operator.

Mandatory insurance coverage for thirdparty liability claims is an uncontroversial aspect of daily life. Drivers are required to insure their vehicles with serious consequences for failure to do so. Such requirements also already exist in the air and rail fields. It is the norm in most fields of transportation.

The MLA did allow for regulations to be enacted requiring insurance coverage; this begs the question of why it took so long for such regulations to come into place. The Minister of Transport announced plans to proceed with implementation of regulations in 2003 and consultations occurred with marine stakeholders and insurers over 2003/2004.

The MLA as it existed then would have caused the adventure tourism industry significant difficulties and so the matter was dropped. Specifically, adventure tourism owner-operators could not find insurance without “waivers of liability” but the MLA prohibited such waivers. In 2009, the MLA was amended in a way that could exempt the adventure tourism industry from these regulations. Of course, that still does not explain the nearly 10-year delay in the enactment of these regulations.

48 — BC Shipping News — May 2019

Under the new regulations, all commercial and public-purpose ships engaged in the domestic carriage of passengers are required to maintain liability insurance in a minimum amount of $250,000 for each passenger the ship has the capacity to carry.

Regulation SOR/2018-245 came into effect on January 11, 2019. While some provinces such as Quebec have enacted laws that require insurance, B.C. did not.

Contracts of marine insurance are specifically exempted from the B.C. Insurance Act. Under the new regulations, all commercial and public-purpose ships engaged in the domestic carriage of passengers are required to maintain liability insurance in a minimum amount of $250,000 for each passenger the ship has the capacity to carry. It is important to note that this does not mean that specific dedicated marine insurance is required; prior general liability insurance would be sufficient as long as the coverage meets the $250,000 per passenger threshold.

Ships are also required to keep a certificate of insurance or certificate of entry on board where feasible; in any event, the certificates must be produced within 24 hours.

Failure to provide this proof of insurance could also lead to the detention of the vessel and/or a fine of up to $100,000.

There are some exceptions including the adventure tourism industry. To fall within the adventure tourism exemption, the activity must meet several conditions: • The participant must be exposed to an aquatic environment; • The activity normally requires safety equipment and procedures beyond those normally used in the carriage of passengers; • The participants must be exposed to greater risks than the risks normally exposed in the carriage of passengers; and

• The risks must have been presented to the participants and the participants must have accepted the risks in writing.

The regulations also do not apply to pleasure crafts as defined in the Canada Shipping Act. Critically, these vessels must be used exclusively for pleasure and guests on board must be carried without remuneration or any object of profit.

Some other exemptions exist including for carriage of a sail trainee, search and rescue operations carried out by the Canadian Coast Guard Auxiliary, carriage performed by the federal government, a provincial government or by entities entitled to indemnification and for ships operating between Canada and the United States.

The benefits of this regulation are clear — liability is transferred from individual ship owners to pooled insurance groups with passengers and their families now able to rest easy knowing there is a much greater likelihood of there being assets to collect should a claim arise. Government analysis also indicates an expected reduction in the number and severity of marine accidents, as operators now are incentivized to maximize the safety of their vessels so as to minimize liability insurance costs.

Cost-wise, the estimate is that, over 10 years, the regulations will cost approximately $24.18 million for approximately 1,756 ship operators. Insurers could see a corresponding increase in revenues. If the 1,756 number seems low, bear in mind that previously, while insurance was not mandatory, it was nonetheless available.

It seems likely that larger ship owners and operators would have insured their vessels

LEGAL AFFAIRS regardless of whether such insurance was mandatory. It is not uncommon though for smaller operators to have insufficient insurance coverage or none at all. However, the cost of this regulation would also likely be proportionate to the size of the operation — smaller vessels and fewer passengers would presumably lead to lower costs for insurance as the total coverage sought would be lower.

As well, the additional costs for this coverage could be passed on to the consumer at negligible costs. It is difficult to imagine consumers complaining about a mild increase in ticket prices if it meant insurance coverage protecting them.

The $250,000–per–passenger required minimum does not actually cover the full potential liability of an owner-operator.

Under the MLA, there is a limit of liability in the amount of 175,000 Special Drawing Rights per passenger, which currently equates to approximately $324,000CAD. It is good practice to ensure you are covered for the full potential liability, not just the minimum amount required by the regulation.

The regulation does not stipulate how an operator must determine a vessel’s

Transport Canada has advised that TC Marine Safety Inspectors will be enforcing this regulation and will require operators ... to produce a certificate of insurance. passenger capacity. Note that all operators of vessels that carry passengers must comply with the Canada Shipping Act. Some vessels may have a certificate specifying the maximum number of passengers permitted while in other cases no maximum may be stipulated. Transport Canada has advised that the operator must get insurance to the certified number of passengers or to whatever number of passengers the operator knows will be the maximum number ever carried, if that figure is lower than the amount specified on the ship’s certificate or capacity place.

It is probable that the bar here will be high. If an operator under insures based on the number of passengers, claiming ignorance may not be enough to defend against penalties. The operator must know the maximum passengers ever to be carried if it is lower than the amount certified.

Transport Canada has advised that TC Marine Safety Inspectors will be enforcing this regulation and will require operators of applicable ships carrying passengers to produce a certificate of insurance. If no certificate is produced, or if the number of passengers is in excess of the number indicated on the insurance certificate, the Inspector will have the power to impose the penalties noted above.

If you already have insurance covering potential passenger liabilities, you may have some time. Such owners or operators are required to comply with the regulations when their current policy expires, is altered or is cancelled. Owners and operators should speak with their broker to ensure compliance. Otherwise, all other carriers had 60 days after January 11, 2019 to comply.

Glen Krueger can be reached at Krueger@ bernardllp.ca.

May 2019 — BC Shipping News — 49

OP-ED: TANKER TRAFFIC

Trans Mountain pipeline dilemma Captain Edward G. Monteiro, FNI Marine Consultant

B

y now, everyone reading this article is familiar with the problems encountered by the Trans Mountain pipeline. It is a pity to have reached this stage and it is doubtful if it will ever be built.

Canada is a resource-rich country and relies on the sale and export of its resources to other countries. Its exports pay for our standard of living, our medical system, education, government, defence forces, etc. If we cannot export our resources, the situation would be very dire indeed. We do not have the manufacturing capabilities to compete in world markets. Sales are governed by two factors: a supplier and a buyer. To a seller, the more buyers seeking the product, the greater the capability to increase profit margins. If you only have one buyer, the seller is at the mercy of that buyer. In order to increase that number and attract more potential buyers, sellers must be able to ship the product around the world and to do so, they need transportation.

Canada is a huge country and most of the production is in the middle of the country. We have three coastlines and the goods have to get to tidewater in order to be exported. As a result, the important question is: How can we get the product to tidewater?

Different products are suited to different transportation methods. A bulky dry product such as grain or ore is best suited to railcars. Liquid products are better suited to a pipeline. One could of course ship the liquid product by railcar but it would be inefficient. Another means of transportation is by truck, but given the volume of goods to be shipped and the distances involved, this form of transport is not viable. That leaves only two options, rail or pipeline. Of the two, a pipeline is the preferred means for liquid cargoes.

50 — BC Shipping News — May 2019

Given the political reality, it would appear that we have a long, expensive and acrimonious litigation process, which would put the whole project on hold for many years to come.

Easy decision

Trans Mountain has an existing pipeline that runs through Western Canada and ends at the seaport of Vancouver. When the seller decides to increase its output and ship more liquid cargoes through the Port of Vancouver, it seems an easy decision to add to the pipeline along the same route as this existing pipeline. Making the pipe bigger would allow for more product to be shipped from the source to sea. It would be a simple matter to obtain permits to put in the new pipes.

Industry support

Of course, the sea terminal would need to be enlarged to accommodate the additional volume, together with storage tanks and berthing facilities. The Port would, of course, be glad to handle the additional volume as it would mean more revenue and increase its stature in the global market. Ancillary services would have to be expanded and everyone would stand to benefit from this new revenue source. It would be a slam dunk!

The naysayers

Much to everyone’s surprise, there was a small lobby of people who were opposed to it. They oppose laying the additional pipe as it disturbs the land environment, but that argument could not be sustained so the opposition then took the next leg of the journey which was outside of the original pipeline discussion. They looked to challenge the ocean component of the journey.

If they could find fault with ocean transportation, then there would be no reason to

build the second pipeline to bring the product to the port. The old order, or status quo, would be restored.

Economic considerations

To the seller, this is not a solution. He would be restrained to only one buyer if he could not get his product to tidewater. That buyer would, of course, use every means possible to prevent the seller from bringing in competition.

Practical considerations

Looking at the geography of the Port, the shipping terminal for a trans-mountain pipeline is tucked in deep inside Burrard Inlet. During the original construction, it was sufficient to bring the pipe to the closest point of entry to tidewater. Tankers now have to steam under two road bridges and one rail bridge. The two bridges are located at the choke points where the currents are strongest. This has been carefully managed by the Port and the ancillary industries such as marine pilots, tugs, oil spill response, government regulators and traffic controls.

Thankfully, there have not been any incidents to necessitate change.

With the expansion, the situation changes. There will be much more tanker traffic added to an already busy port, especially in the summer cruise ship season. There may be situations where adequate resources are not available, or fatigue due to overtime work, or any other reason. Even with the most rigid controls, situations can develop where a small slip could quickly grow out of control.

The transit of the Second Narrows is restricted to at or near slack tide which

OP-ED: TANKER TRAFFIC only leaves a small window for vessels to enter or depart. The size of vessel is also restricted by the draft and overhead clearances.

Burrard Inlet and Indian Arm are well known for their natural scenic beauty. It is true there are a few industries in the area but they have been there for several years and they are inconspicuous. At the time when these industries were established, Vancouver was inconsequential. The City welcomed industry to help grow. Today, the situation has changed. Property values have soared and many residents would not be pleased to see an enlarged industrial complex close to their homes or view from their window every day. The increased number of tankers would need new berths and anchorages as holding areas — all of them detrimental to the peaceful enjoyment of their pristine environment. It is one thing to install industry before residences are established, but the other way around it is nearly impossible.

Impasse

Given the political reality, it would appear that we have a long, expensive and acrimonious litigation process, which would put the whole project on hold for many years to come. The seller loses, the government loses and the taxpayer loses. We now own a partially built, partially incomplete pipeline.

The way out

Is there a solution? There may be if all the parties are willing to put their heads together and agree on the solution.

Remember the phrase “out of sight, out of mind.”

Part of the problem has been trying to implement the project in a location that may not be suitable. So consider changing the location. Location, location, location.

Why does the pipeline end up in Burrard Inlet? Short-sightedness, perhaps?

If the pipeline was diverted to a relatively unoccupied or isolated island in the outer reaches of Vancouver, where no one can see or care, it would be half the battle won.

For example, think of a small island such as Lasqueti, which is just offshore. There is an industry already established in the vicinity. The pipeline would be diverted and submerged for part of the route. This is not impossible as it has been done in many parts of the world.

Thinking outside the box...Monteiro proposes that, if we can’t get the pipeline built in the harbour, move it out further.

Advantages

Removing tankers from Burrard Inlet has several advantages: • Size of the vessel is unrestricted. It could be a VLCC or even a ULCC. That would allow the seller to choose the size depending on the production and shipment volumes. As a consequence, the number of vessels required can be cut in half, thus limiting the environmental exposure and likelihood of accidents. Of course, there is also the economy of scale and the shipping costs are considerably less with a larger vessel.

• The terminal could be built to suit the size of vessels to be accommodated. It could be a finger jetty with adequate dolphins. Or, it could even be a “single point mooring buoy,” as is done in other parts of the world. The tanker is free to swing around this mooring point and the loading hose is fed over the bow of the tanker.

• Pilotage would be simpler and quicker as the ships would not have to traverse Burrard Inlet. Vancouver Harbour traffic would be reduced by moving the tankers outside the Inlet.

• Berthing tugs could be permanently based at the oil port and could serve as escort tugs if deemed necessary.

• The facility could be fully enclosed with a permanent oil boom to prevent the escape of any accidental spills.

Cost impact

There will be additional costs for rerouting the pipeline through new and unexplored territory. The cost to submerge the pipeline below sea level will also need to be considered.

New facilities will be needed for the terminal staff and transportation to and from the island.

Eventually, the existing terminal in Burrard Inlet will need to be replaced or modernized at a future date at substantial cost. Perhaps now is the time to build new and modern facilities at “Lasqueti Oil Terminal” before the costs increase. It would be easier to build now before vacation resorts and residential homes take over the island.

Finally, the existing terminal could be converted into elite waterfront condominiums which would defray some of the cost of this project.

Impact on marine life

Moving the terminal out of Burrard Inlet will have no bearing on marine life. It will be the same as for any other bulk carrier, container ship or cruise ship.

The possibility of an oil spill due to collision or grounding can be mitigated by employing marine pilots and escort tugs, adequate clearance by all vessels from tankers, and an enhanced traffic control system until the vessel is safely out of Canadian waters.

Conclusion

Yes; there is hope that the pipeline will finally be built. But it just may be somewhere else.

Captain Ed Monteiro is a former shipmaster on international voyages and has been active in the shipping industry with Canadian Transport Company Ltd.(CTCo); as Past Chair of PACMAR and a member of WMCC.He is also the former Chair of PMTI and Vice Chair of BCIT Board of Governors as well as a member of Master Mariners, Nautical Institute, NPESC and Supercargoes Association. He can be reached at egmonte@aol.com.

May 2019 — BC Shipping News — 51

SEA STORIES

Ocean Liner Southern Cross

By Peter Vassilopoulos

T

he Southern Cross was built in the 1950s. After serving as a world wide passenger liner, in various places and with changing names, she was moved to the route England to South Africa in the 1960s. That was when I first saw the vessel. It was a newsworthy occasion. The Southern Cross hit the news as the first ship to have the engines in the stern of the vessel, a design that was followed by many ships thereafter. The funnel was near the stern and that identified it for what it was.

My wife Carla went to Cape Town from Southampton aboard the Southern Cross in 1970 after a lengthy tour of Europe. By coincidence, I had just returned by air from a three-month tour of Europe when I met her just after her arrival in Cape Town.

On the job as a radio news reporter, I was assigned to meet passenger liners (or cruise ships as they later became known) in the Cape Town city harbour every Wednesday to interview the captain and personalities who happened to be aboard. It was a pleasant job. As usual, I was invited by the captain to join him for breakfast where he had a special table for special guests.

I was intrigued to meet some other interesting people aboard the ship: a couple who were among South Africa’s top singing entertainers, Des and Dawn Lindberg, very much like Sonny and Cher at the time.

In the next couple of years, the Lindbergs joined me for lunch a number of times on visits to the city. I also met Lord Douglas of Kirtleside, also known as Sholto Douglas, the man who had been head of the Royal Air Force during the Second World War.

52 — BC Shipping News — May 2019

He was an interesting gentleman and, after having breakfast together at the captain’s table, he invited me to join him and his wife in their cabin to chat some more and join them for a glass of Mimosa, something I had not heard of previously.

Now the interesting thing about both my wife and my experiences with the liner Southern Cross was that, years later, we boarded the vessel in Los Angeles for a cruise at Christmastime. We had no idea at first that it was the same ship.

It was in the late 1980s that my wife and I were in Los Angeles visiting some very close friends, Dave and Arline Parker (the founder and manufacturer of Pelican Products…watertight suitcases and other equipment for the diving industry, fire department, police and military). After spending some time with them, we decided to do a short cruise before driving back home to Vancouver. So we made reservations and headed down to the LA harbour and boarded a cruise ship by the name of Azure Seas that was about to do a four-day trip into Mexico with a first overnight stop at Catalina Island, a place we had visited quite frequently with the Parkers on a variety of boats they owned over the years.

Carla and I boarded the vessel without really taking note of the style of the ship.

The name on her, Azure Seas, was totally new to us. As we made our way to the cabin we stopped to look, in amazement, at a large panel covered with photos and data about the Southern Cross. Why, we asked ourselves, would the Azure Seas have a large panel of data about the Southern Cross?

Then it dawned on us. We were aboard the ship that Carla had arrived on in Cape Town and where I had met those personalities over breakfast with the captain. I had forgotten that my wife, Carla, had been a passenger on board the Southern Cross in 1971. I met her a few weeks later while attending a golf tournament where Gary Player, whom I had come to know through mutual friends, was the big attraction.

The Captain of the Azure Seas was Greek.

When he was introduced to us and heard my last name, he was interested to know that I was of Greek descent and invited us to join him in his cabin for appetizers that evening. We did, and we also ended up in the wheelhouse with him as we departed Ensenada in Mexico on the return trip to Los Angeles.

Another interesting thing about the Southern Cross is that her name was changed to SS Calypso and then SS Calypso I for a while in 1973 before becoming the Azure Seas. Interestingly I had the pleasure of meeting the owner of the well-known research vessel Calypso, Jacques Cousteau, during Expo in 1986, having known his son Jean-Michel for some years (he introduced me to his dad in the most amusing way – he stopped a meeting in progress in Vancouver by calling his dad to leave the podium and cross the floor through the crowd to come and meet me).

Peter Vassilopoulos, Publisher, Pacific Marine Publishing, is a long-time boating author and authority on the waterways, islands and installations on the coast.

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