BC Shipping News - October 2013

INSIDE: SHARED INTERESTS: U.S. OIL SPILL RESPONSE

BC SHIPPING NEWS

Volume 3 Issue 8

www.bcshippingnews.com

October 2013

Commercial Marine News for Canada’s West Coast.

Industry Insight

Mike Corrigan, President & CEO BC Ferries: Held to a higher standard

Safety Training SailSafe showing impressive results

Fire Safety

As you train, so shall you respond

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CP PM# 42161530 OCTOBER 2013

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Plus: Pacific Basin’s expansion plan bucks trend

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VANCOUVE UVE R

TOKYO TO TOK O Y DALIAN D

YOKOHAMA

B USAN

S HANG HAI

S H E NZ H E N HONG H GK KONG O KAOH S I U NG KAO

Closer

is better.

Port Metro Vancouver is already closer to Asia than any other major port in North America. And with u n p r e c e d e n te d i n f r a s t r u c t u r e investment in our gateway, we’re getting even closer.

We’re building land-side projects that boost rail and road efficiency. We’re increasing our container terminal capacity and reducing on-dock dwell through collaboration with supply chain partners. And we’re operating with longshore labour certainty to 2018.

As a result, we’ve taken up to 3 days out of your supply chain. That brings your goods closer to market and you closer to your customers.

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to

October 2013

Volume 3 Issue 8

On the cover: The Coastal Inspiration. Photo courtesy: BC Ferries.

Cover inset: Pacific Basin’s Barrow Island. Photo credit: Robert Etchell Below: Joint training exercises off Port Angeles, Washington.

Photo credit: Richard Lam

Cover Story

Contents 34

10 Industry insight Held to a higher standard BC Ferries’ President & CEO discusses new builds and fleet maintenance, safety, fare rates, environmental performance, and more...

50 Safety training

SailSafe showing impressive results

With six years of measurable data, SailSafe is being credited with so much more than that of changing BC Ferries’ safety culture.

Fire safety you train, so shall you respond 38 As The need for realistic and relevant onboard training by John Lewis, 44

FNI, CRSP, Principal Consultant, SeaFire Training Ltd. Fire prevention: firestop and sealing products With the help of our friends at Jastram Technology Ltd., we learn about some effective ways to stop the spread of fire.

D E P A R T M E N T S

F E A T U R E S

Mike Corrigan

Shared interests: A look at the U.S. oil spill response regime

6 18

News briefs/industry traffic

20

Harbour towage

23

Shipbrokers

26

Bulk carriers

28

Events: ACPA

News briefs and letters to the editor

History lesson

Life on board an oil tanker by Lea Edgar SMIT keen to blaze its own West Coast trail by Ray Dykes Our word, our bond — the Institute of Charters Shipbrokers Pacific Basin’s expansion plan bucks trend Theme of building partnerships resonates with attendees

32

Events: Cargo logistics

42

Fireboats

45

Legal affairs

48

Mercy Ships

The entire supply chain under one roof

by Tiffany Edwardsen New RAL-designed fireboats for Port of Long Beach by Ernst Schneider Supreme Court of Canada upholds workplace litigation bar by Peter Swanson Africa Mercy blazes through her first five years as charity hospital ship by JoJo Beattie October 2013 BC Shipping News 3

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JoJo Beattie Ray Dykes Tiffany Edwardsen John Lewis Jamie Marshall Peter Swanson

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GUEST EDITORial

This month’s takeaway: safety first

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ith every issue we’ve published so far of BC Shipping News, I feel it has been successful if I can take away at least one thing learned. This month, it’s all about safety. Throughout each article, you’ll notice this recurring theme.

Take, for example, BC Ferries (we have two articles: the Industry Insight with Mike Corrigan, President & CEO; and SailSafe Training with Captain Jamie Marshall, Vice President, Fleet Operations). Both articles show how the organization has placed safety as their first priority. The actions they have taken over the past six-plus years show that it’s not just marketing ‘window

dressing’ but has, in fact, changed their corporate culture — from the head office to the bridge, to the engineering room, to the catering staff — it’s now a part of their normal routine.

Then there is the contribution from John Lewis, SeaFire Training Ltd. who focuses on the need for realistic firefighting training practices. Very appropriately, John notes that: “As you train, so shall you respond.” It’s a simple concept but how many companies actually follow through?

And then there was the message received by attendees of the Association of Canadian Port Authorities Conference from the new Minister of Transport,

Lisa Raitt. Imagine being in that role and one of your first responsibilities is to visit the town of Lac Mégantic following the train disaster? The impression left on the new minister will, no doubt, play a large part in the priorities she sets to make all transportation modes safer.

All in all, the message of safety is one you ignore at your own peril. I hope, from the articles herein, you’ll be convinced that safety training must be practised frequently and realistically.

Like BC Ferries has done, the culture of safety must be as much a part of your everyday routine as any other task.

— Jane McIvor

Member of: International Sailor’s Society Canada

Local traffic...

Thanks to Lance Leighton, Pacific Pathfinder Prince Rupert Pilotage Launch, for this shot taken of a COSCO container ship while tied up at Prince Rupert’s Fairview Terminal this past summer. While the name of the ship is obscured (and Lance didn’t keep a record), the shot was just too awesome to pass up. If you know, let us know (jane@bcshippingnews.com) and we’ll pass it along.

Got a great photo? Send it to jane@bcshippingnews.com to be included in our feature on ships visiting our local waters.

October 2013 BC Shipping News 5

LETTER TO THE EDITOR Dear Jane, I read Syd Heal’s story on bulk carriers (September 2013) and I found some interesting things: yes, we have Cape-size bulkers at Roberts Bank, but there is the odd one that will go to Neptune Terminals in North Vancouver. As a marine photographer for over 25 years, I have seen, this year, that the Port of Metro Vancouver has been getting alot of new bulkers that have been built this year. Two such bulkers are the Barrow Island and the Aquila. One of the big bulker lines that I have seen a lot of in Vancouver is Pacific Basin. Just like Syd said, it’s hard to keep up with the ships and their companies — they just keep building new ships all the time.

Robert Etchell, Vancouver, B.C. Editor’s note: Robert’s note was great timing given our coverage of Pacific Basin Shipping (Canada) Ltd. in this issue on page 26. The inset on the cover is Robert’s photo of the Barrow Island.

The Aquila, photo by Robert Etchell.

DNV to class ultra large container ships

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yundai Heavy Industries, Korea (HHI) is to build the five 18,000 TEU ships. In addition, there will be an option for one more.

The contracts between UASC and HHI also include 5 + 6 ships of 14,000 TEU, also to DNV class.

“I’m pleased and proud that DNV has been selected as the preferred class for these huge and advanced ships,” says Henrik O. Madsen, DNV Group CEO. “We have actively supported the owner and yard up to the

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contract signing. Through our expertise and technology, we have been able to aid in the development of these new ships, which represent a major leap forward in terms of size and operational excellence.”

The ships will be designed according to the latest cutting -edge technology.

In line with UASC’s vision of being an environmentally focused ship owner, the vessels will also be designed ‘LNG ready’. Accordingly, they will be prepared for easy retrofitting for using

LNG fuel in the future, when the related infrastructure is in place.

The vessels will be optimised for an Asia — Middle East — North Europe trade. Their optimal speed window will be 16 to 18 knots. In addition to hull optimisation and advanced propulsion arrangements, cargo securement has been improved through new lashing bridges.

“DNV’s long-term focus on research, innovation and new concepts for improved ships, its high standards and extremely competent people has convinced UASC. I’m sure DNV is the right partner when UASC is to take this major leap for the container shipping industry,” says Jørn Hinge, UASC CEO. “These are complex ships. Complexity requires competence and DNV has been preferred due to its long-lasting focus on and development of expertise.”

Mr Madsen adds: “These new ships will break new barriers. The lessons learned from this project will have an effect on other new building projects too. Size matters and technology improvements to secure leaps like this will also have an impact on and ensure improvements in most vessel sizes.”

DNV has a long track record when it comes to ultra-large ships. In addition to these ultra large container ships and the world’s largest ore carriers, many of the very largest product tankers, chemical tankers, cruise ships, car/truck carriers and anchor handlers are all classed by DNV.

news briefs Global Marine Trends 2030 published by Lloyd’s Register

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loyd’s Register Canada’s President Bud Streeter was in Vancouver in mid-August to present the findings from “Global Marine Trends 2030 to Vancouver’s shipping industry. The full report can be downloaded from: http://w w w.lr.org/sectors/marine/ GTC/gmt2030.aspx.

With astonishing events unfolding in the financial world in 2008 and in the Arab world in the early part of 2011, giant forces are at play, not to mention technology, demographics or the movement of capital and manufacturing around the world seeking best investment returns.

For much of the past two years, Lloyd’s Register, QinetiQ and University of Strathclyde have worked together as a team to prepare the report. It aims to define key global trends using demography, economy, resources, and environment, and the explores underlying factors which drive them; where

they seem headed; and how they might interact to affect the marine world in 2030. The report is exploratory rather than definitive; discussion is descriptive rather than predictive. It is not a prediction of the world in 2030, but rather a description of what these giant forces are and how they might interact.

It is a work in progress and the trends are, at best, indicative in nature, based on existing works in the public domain and LR’s own research. Nevertheless, by examining a small number of the giant forces that are considered most influential, the trends presented should provide a good basis for framing strategy-formulation discussions, and identifying policy options for threats and opportunities that arise from them.

The marine world in 2030 will be almost unrecognizable, owing to the rise of emerging countries, new consumer classes, and resource demand.

By examining different scenarios based on major global drivers (such as economic and population growth, resource demand, accelerated technological advances, rise of consumers and cities in large emerging countries), LR maps out divergent futures. By bringing together trends and their interactions, industry-specific insights, and using simple problem-solving techniques, they have been able to create three possible outcomes in a quantitative, actionable and unbiased way, namely the “Status Quo”, “Competing Nations” and “Global Commons” scenarios. These principally separate out the possible actions of society in terms of international politics. The propensity to compete or co-operate depends on human nature.

“At the very least,” notes Streeter, “we hope it will generate debate and discussions about what the future might hold for us all.”

Better solutions based on experience We have been providing the marine industry with technically-sound and cost-effective consultancy solutions for over 60 years. Every piece of advice we give is underpinned by a wealth of technical and operational experience, helping you find the best solution, whatever your project. www.lr.org/marine

Lloyd’s Register is a trading name of Lloyd’s Register Group Limited and its subsidiaries. For further details please see www.lr.org/entities

October 2013 BC Shipping News 7

industry traffic Aqua-Guard completes 10 days of ocean demonstrations of its largest URO 600 Offshore Oil Skimming System.

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ver a 10-day period this August, Aqua-Guard Spill Response Inc. held at sea demonstrations of its state-of-the-art URO 600 offshore oil skimming system. Aqua-Guard invited customers and industry-associated personnel to view, learn and operate the system to gain understanding and appreciation of all the features and ease of operation.

The URO 600 (equipped with patented RBS TRITON™ technology) is the largest of its kind available on the market with an oil recovery capacity of over 600 cubic metres per hour.

The system was launched from a jetty at the Vancouver Drydock facility in North Vancouver. A single operator fully deployed and operated all functions of the system via the handheld

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wireless remote control unit.

The 2,300 kg (5,000 lb) URO 600 skimmer head is deployed and recovered by the high tensile floating hose utilizing the six-metre crane extension.

Once in the water, the skimmer head’s dual 36cm (14”) diameter thrusters were engaged producing 72hp of total thrust, allowing the necessary maneuvering of the skimmer head and its 80m of trailing floating hose.

Four brush recovery modules, complete with the brush extension option and patented RBS TRITON™ oil recovery technology, were engaged with the twin high capacity lobe pumps (375 m3/h) and water injection system located on the skimmer head.

A pump inlet adapter was demonstrated showing how the skimmer head can easily be converted to a lightering or transfer pump for general transfer and salvage operations.

In attendance were representatives from Marine Spill Response Corp USA (MSRC), Western Canada Marine Response Corp (WCMRC), Shell E&P Alaska, Enbridge Northern Gateway Pipelines, Kinder Morgan (Trans Mountain Expansion Project), ESSO (Imperial Oil) Calgary, Robert Allan Ltd (Naval Architects and Marine Engineers), STX Canada Marine, Worley Parsons, Stantec, Sanitherm, Fitzwright Survival, Simson Maxwell, Royal Bank of Canada, Aqua-Guard international sales agents/staff and other interested third parties.

Cameron Janz, CEO, Aqua-Guard Spill Response Inc. noted that: “It was great to see the both local and international interest and participation in our URO 600 oil skimming system water demonstrations. The event was a great success with participants fully understanding Aqua-Guard’s level of quality and technological advancements. It also reinforces the need for constant R&D and the importance of feedback from our clients and industry personnel in terms of operation and maintenance so we can continue our high level of innovation.”

news briefs Release of CSR Structural Assessment Software Version 7.0.0

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lassification society ClassNK (Chairman and President: Noboru Ueda) has announced the release of the latest versions of IACS Common Structural Rules (CSR) structural assessment software. The following software packages have been updated: PrimeShip-HULL(Rules)/CSR PrimeShip-HULL(Rules)/CSR is software designed to perform structural evaluations using the scantling formulae defined in the CSR. This software possesses a number of powerful functions such as user friendly interfaces and result displays. This software can be used for both bulk carriers and tankers.

PrimeShip-HULL(DSA)/CSR PrimeShip-HULL(DSA)/CSR is software designed to perform the direct calculations defined in the CSR. Using

FE models, users can easily execute complicated FEM analyses through the use of special features like the automatic identification of structural members and compartments. In addition, a function to help user navigate the operation process is also provided.

Both packages have been updated to reflect feedback from the users of the software to include new functions and strengthen existing features to improve usability, and help make design work more efficient. ClassNK is constantly looking for new ways to develop even better user-oriented software in the future.

These software products are provided free of charge to customers planning to perform CSR structural assessments. Please contact Class NK’s Hull Department or Natural Resources and Energy Department to apply to use these products.

Event: Marine Engineering: The New Wave

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he Vancouver Island Branch of the Canadian Institute of Marine Engineering (CIMarE) is pleased to present “Marine Engineering: The New Wave“, a technical conference and marine exhibition.

The conference will take place June 12 and 13, 2014, on the West Coast of Canada, at the Delta Victoria Ocean Pointe Resort and Spa, located on the shores of Victoria’s picturesque inner harbour.

The two-day conference will feature guest speakers, relevant technical presentations, a trade exhibition, an evening social event, and various networking opportunities.

For more information, visit: www.thenewwave.ca.

October 2013 BC Shipping News 9

INDUSTRY INSIGHT

Held to a higher standard Mike Corrigan, President & CEO

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From improved safety to lower employee

Photo courtesy of BC Ferries

absenteeism to better fleet on-time performance...

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olding a position such as that of President & CEO of BC Ferries — one of the largest, most complex ferry systems in the world — requires thick skin. As Mike Corrigan has learned since taking the reins from David Hahn on January 1, 2012, scrutiny from media, government and the public means being held to a higher standard than privately operated companies and, more importantly, ensuring delivery of that standard. Despite criticisms and armchair quarterbacks who know better, BC Shipping News learns that Corrigan and his team are achieving some impressive targets. From improved safety to lower employee absenteeism to better fleet on-time performance and reliability to an increase in overall customer satisfaction, Corrigan proves he’s up to the task.

BCSN: First things first — I’d like to find out more about the three new builds that were just announced.

MC: We’ve been tasked to build three intermediate class ferries. They’ll be on a platform of an 85-car ferry but two of them will hold 145 cars and the third will hold 125. We’re anticipating the use of ramps and platform decks

10 BC Shipping News October 2013

[and] an increase in overall customer satisfaction, Corrigan proves he’s up to the task.

or underdeck storage to expand the footprint of an 85-car ferry because we want to use that as the footprint going forward for fleet standardization.

There’s a real desire for BC Ferries to go from the 17 classes of vessels we currently have down to four or five, and one of the predominant classes will be this intermediate class. The Queen of Burnaby and the Queen of Nanaimo will be retired and we’ll replace those two vessels with three — two will sail on Route 9 (Tsawwassen to Salt Spring and touching the Southern Gulf Islands), and one will sail on Route 17 (the Powell River run). The third vessel will be used to provide service in the peak and shoulder seasons as well as for refit relief.

BCSN: Have you determined the propulsion method yet?

MC: We’re very bullish on liquified natural gas (LNG) for new construction and we believe we will be building these new vessels with LNG, but, that being said, we haven’t made the final decision yet. We’ll be looking at three options when we go to tender — diesel, natural gas and dual-fuel and we’ll evaluate the benefits of all three.

The challenge we have with LNG is that there’s a premium — around 10 per cent — to put in LNG equipment (piping, storage tanks and even the engines to a certain degree) so we need to get a payback that would justify that 10 per cent. That translates to about $10 to $15 million per vessel so it’s pretty significant. While there is a really good cost advantage at the well-head between diesel and LNG, the challenge is transferring that cost savings down to the delivery price at our terminals and on our ships — getting the delivery price to where we need it for LNG. It’s a new market so we’re working through that.

BCSN: Would it require new infrastructure at the terminals?

MC: No, we would deliver fuel with trucks, like we do with diesel right now. Fortis has the ability to truck LNG in to the terminals. We get diesel deliveries about three times a week and we’d just replace diesel with LNG. We need to make sure we can do it safely — for example, it requires cryogenic-type steel protection and the ability to vent the atmosphere in case there’s a gas cloud, but we believe it’s all do-able.

INDUSTRY INSIGHT Photo courtesy of BC Ferries

BCSN: For the dual-fuel option, what would determine a switch over between diesel and LNG? MC: If we choose dual-fuel, it would be purely based on price and supply availability.

BCSN: The three Coastal Class vessels were diesel/electric — have you considered that option for these new vessels?

MC: It’s still an option. We haven’t ruled it out. Possibilities include LNG/ electric, diesel/mechanical, LNG/mechanical, etc. As part of the procurement process, just like we have done with other vessels, we’ll do a design-build and we ask the shipyards to come back with proposals in terms of what the vessel will look like, and types of fuel and propulsion systems that could be used.

At the end of the day, the beauty of a design-build is that it’s up to the shipyard to prove the design as well as the operational side — cost, reliability, etc.

BCSN: And the timing for delivery?

MC: We expect to sign a contract early in 2014, so we’ll be negotiating heavily throughout the fall. We’re doing a worldwide procurement including Canadian yards and there are a number of yards who will be participating (no names are released during the procurement process). Two vessels will be delivered in 2016 and one in 2017.

It will be a series build — you want to build one right after another to get the economies of scale and scope. The first ship usually absorbs the design and engineering costs and the next two will obviously be cheaper for that reason.

BCSN: What about other fleet renewal projects?

MC: We’re just finishing up the Tachek at Point Hope Shipyards which is a $20 million life extension project. The vessel is essentially getting completely rebuilt in terms of engines, generators, asbestos abatement and new control systems.

It will be completed by this fall.

After that, we have mid-life upgrades of five key vessels — the two Spirit Class vessels need to be upgraded over the next couple of years as will the sister vessels Queen of Capilano and Queen of Cumberland as well as the Skeena Queen — those are actually some of the newer vessels in the fleet so it gives you a sense of the challenges we have in operating a fleet of 35 vessels.

Mike Corrigan announced interior design contracts for the Super C-Class project at a news conference (October 2005).

*

In going forward, the focus for us is on small to medium-class ferries in terms of having to rebuild those assets.

In going forward, the focus for us is on small to medium-class ferries in terms of having to rebuild those assets.

BCSN: The focus on small vessels, is that a reflection of declining ridership levels?

MC: It’s more about flexibility going forward. The average age of the small ferries in the fleet is 35 years which makes them a priority.

We try to forecast ridership levels as best as we can for future demand but when you build a ship to last 40 years, it’s difficult which is why we’re going to this intermediate class. The 85-car deck gives you more flexibility to move ships around to reflect changes in demand. If you want to alter routes, there is more flexibility versus purpose-built ships with specific routes which has been done in the past.

The first major vessel class ever built that BC Ferries could offer on all major

routes was the Coastal Class. Before that, certain vessels stayed on certain routes — for example, the old C-class vessels (Queen of Cowichan, Coquitlam, Oak Bay, Surrey) stayed on Routes 2 and 3 (Horseshoe Bay-Departure Bay and Horseshoe Bay-Langdale); and the Spirit Class stayed on Route 1 (Swartz Bay- Tsawwassen). And then we built the double-ended Coastal Class with a common platform that could work on any major route. That started the principle of inter-operability which is what we want to carry over and take further with the intermediate-class ferries.

So that’s where we’re focusing our efforts right now. For the first 10 years of our current service model, we focused on rebuilding the big ships and the big terminals as well as the northern service. We’re now moving our focus to the minor routes and the

October 2013 BC Shipping News 11

Photo courtesy of BCIT

INDUSTRY INSIGHT

At the launch of BCIT’s new simulation centre (May 2011) — left to right: Captain John Clarkson (formerly Associate Dean, BCIT Marine Campus), Jeff Joyce (BC Ferries), Don Wright (formerly President, BCIT), Mike and Captain Jamie Marshall (BC Ferries).

*

Of the 25 routes we serve, 22 require a government subsidy...it has always been necessary given the population distribution and the need for affordable accessibility to all areas of the province.

intermediate to small ferries — for example, we’re getting ready to spend upwards of $200 million on the Powell River Route which will include rebuilding the docks on both sides and putting in a new ferry.

BCSN: I understand there are also big changes ahead for Denman Island?

MC: Yes, that’s another project we’re currently working on — installing a cable ferry from Buckley Bay on Vancouver Island to Denman Island. It’s a controversial project but from the company standpoint, it makes a lot of sense.

After a lot of studies and engineering consultation, we’re firmly of the opinion that we can provide an equivalent level of service as safely as we currently do while reducing costs substantially for that run. It would save about $80 million over the 40-year life of the vessel and infrastructure and that goes a long way in keeping fares down.

It will be, just marginally, the longest cable ferry in the world (by about 100 or 200 metres). We’ve been investigating and discussing its potential for almost four years now and firmly believe it’s the best option for that 12 BC Shipping News October 2013

route. The vessel that’s there will be taken and used as a refit relief vessel on three or four other routes but the benefit for us is it stops us from having to replace another vessel at a cost of $60 or $70 million and the cost of the cable ferry is significantly less than that.

BCSN: Are there other routes in the BC Ferries system where this is being considered?

MC: No, this is the only opportunity for this kind of system. There are already a few cable ferries in the Interior of B.C and quite a few in Atlantic Canada and there are thousands around the world but on our system right now and the current 25 routes that we serve, this is the only opportunity we have. Some people argue that it’s a one-off so why are we getting into the cable-ferry business despite our focus on standardization — that’s a valid point, but when you have $80 million in cost savings, it’d be crazy not to take it.

BCSN: What about shore-side projects?

MC: We’re just finishing up with Swartz Bay and Tsawwassen as well as Horseshoe Bay and Departure Bay. All the major terminals have now been

rebuilt including improved customer service areas at most of those terminals which helps us increase ancillary revenues, giving us another way to keep fares down. Another major project underway is the rebuild of all three docks on the tri-island run — Alert Bay, Sointula, and Port McNeill. All three docks are being taken out and replaced one at a time so the service can keep running.

BCSN: You mentioned forecasting ridership levels earlier — can you provide any insights into trends?

MC: I get asked a lot of questions on traffic and it’s very difficult to give an exact prediction. We’ve had a couple of years of traffic declines which is worrisome and there’s a lot of speculation on reasons for it. In actuality, it’s a combination of a number of factors — the cost of fares; demographic changes; an increase in services and goods available on Vancouver Island (and even online shopping) so people don’t need to travel to the mainland as often; the high price of fuel at the pump; businesses that have conference calls and Skype instead of in-person meetings. People are also travelling less in vehicles and taking other forms of transportation and some have cut out travel altogether.

And for the Lower Mainland market, the U.S. exchange rate over the past few years has motivated a lot of people to go south rather than to the Island.

So, you factor all those things together and it means there are challenges around traffic going forward.

Our objective must be to run this ferry system over the long term, taking into consideration that traffic is probably not going to be at the levels it was a few years ago. How do we manage the business accordingly considering we have a very fixed-cost ferry system? If you run on the same number of routes with substantially the same costs but with less passengers, it stands to reason that fares will go up. So that’s always a challenge.

BCSN: Could you describe the process of how fares are set? I’m not familiar with the details of the Coastal Ferry Act and the service contract you have with the BC Government but do you make a recommendation to government or does government advise of a target?

MC: There are three entities that make up discussion around ferry service on the West Coast. There is BC Ferries that has a 60-year contract with the BC Government to provide a ferry service as safely and efficiently as possible.

Then, there is the BC Government who defines the services levels (so the number of round-trip sailings, etc.) and also stipulates how much of a subsidy they will be allocating for those service levels to be maintained. Of the 25 routes we serve, 22 require a government subsidy or contribution to break even so it’s necessary — it has always been necessary given the population distribution and the need for affordable accessibility to all areas of the province. This is the case for many if not all ferry services — Washington State Ferries, ferry services across Canada, etc. In fact, BC Ferries has one of the highest “Farebox Recovery” ratings in the industry (i.e., the way we measure how we cover operating costs through passenger and vehicle tariffs).

Just to give you an example, at the end of 2011, BC Ferries had an 85 per cent recovery of operating costs while both Marine Atlantic and Washington State Ferries operate at just over 60 per cent.

The third party is the regulator, the Commissioner. The BC Ferry Commission was put in place under the Coastal Ferry Act of 2003 and has the primary responsibility of regulating ferry fares. The Commissioner sets a ceiling or “price cap” on the average level of fares which BC Ferries can charge. The goal is to balance the interests of ferry users with the interests of taxpayers while protecting the financial sustainability of the ferry operator. He also monitors our activities to ensure we’re fulfilling the Coastal Ferry Services contract and that we’re meeting all of our service levels; and that we’re minimizing expenses while maximizing safety and efficiency.

BCSN: Who makes up the Commission and how are they appointed?

MC: They are completely independent of both government and BC Ferries.

They’re appointed by the provincial government as independent statutory officers. Currently, Gord Macatee is the Commissioner and Sheldon Stoilen is the Deputy Commissioner.

October 2013 BC Shipping News 13

INDUSTRY INSIGHT

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We’re...the biggest shipping company on the West Coast...and we need to be environmental stewards. We should be — and are — held to a higher standard.

BCSN: Some argue that if you provided a very basic, bare-bones type service, it would be a lot cheaper and there wouldn’t be a need for a subsidy — is that the case?

MC: Non-tariff revenues account for about $100 million per year that doesn’t come from the farebox so that keeps the fares lower than they otherwise would be, but there are a couple of additional reasons: first, the number of crew on board each vessel — whether

they’re there for retail or food services or deckhands — has to be there anyway because of Transport Canada mandated crew requirements which are set up around emergency situations — firefighting, abandon ship, etc. —and you need a lot more crew in those scenarios than you do to operate on a day-to-day basis. Second, we actually make money through food sales, retail, gift shops, etc., so it behooves us to put those in.

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BCSN: Regarding staffing and labour, is the retirement surge affecting BC Ferries?

MC: Yes, we’re no different from everybody else. I think the numbers are something like 50 per cent of our workforce is set to retire over the next five to 10 years. It is something we are addressing — how we continue to recruit and crew our vessels and still keep our level of service up. We’re doing everything we can — for example, apprenticeship programs have started back up. We have our first pilot cadet program here this year and we’re investing more than ever in training to get our younger employees to the levels that are required — so deckhands ultimately will become chief officers and captains; engineering assistants become chief engineers and first engineers. We have to move people through the ranks as best as we can.

BCSN: That must impact on your costs as well.

MC: Absolutely. We spend a lot of money on training and development but at the same time we’re getting it back in other areas like more engaged employees, less absenteeism, and a huge improvement in safety. Over the past 10 years, we’ve had a 50-plus per cent improvement in employee safety; a 36 per cent improvement in employee absenteeism; an 8.3 per cent improvement in fleet on-time performance and a five per cent improvement on fuel consumption not to mention a five per cent increase in overall customer satisfaction. Those are all auditable stats that show we’ve made really good progress.

BCSN: Given the age of the fleet, maintenance costs must be higher than usual.

MC: We’re actually quite proud of our maintenance costs and the way our engineers have been able to keep the fleet running. We have some pretty old vessels and there are challenges around maintenance but, in today’s dollars, we’re spending less to maintain our fleet than we did 10 years ago.

We’re doing a lot more and we’re doing it more efficiently and we’re actually

INDUSTRY INSIGHT Photo courtesy of BC Ferries

getting better numbers in terms of on-time performance and fleet reliability. We’re getting really good productivity and engagement from our engineering staff.

BCSN: To what are you attributing this trend of improvements?

MC: Better cost management, better project management, the sense of pride the engineers have in their work and the satisfaction of doing a good job. It’s a combination of things but much has to do with the SailSafe program. [Editor’s note: see the article on page 50 for an in-depth look at SailSafe.]

BCSN: Let’s move on to environmental sustainability — you mentioned a reduction in fuel consumption, what are some of the other initiatives that are lessening your environmental footprint?

MC: We’re most proud of our fuel consumption numbers.

We’re getting more efficient technology in the newer vessels but, that being said, everyone in the company is focused on reducing our environmental footprint. We burn ultra-low sulphur diesel which is the most environmentally friendly product there is other than solar and wind and perhaps LNG, and we’ve been doing that for some time now. That was a conscious decision made to improve our environmental performance.

Shipping companies traditionally burn heavier diesel as it’s cheaper but we made the decision quite a long time ago to use ultra-low sulphur - ultimately for the environment but it’s also better on the engines from a maintenance standpoint.

We’re arguably the biggest shipping company on the West Coast with the most ships and we need to be environmental stewards. We should be — and are — held to a higher standard.

Mike with Captain Finn Andersen at the decommissioning ceremony of the Queen of Saanich (November 2008).

There are other things — for example, we spent millions to have the ability to plug our ships into BC Hydro’s energy grid at night at our major terminals so the vessels aren’t running their diesel generators overnight. That helps obviously and it’s cheaper to plug into the energy grid with BC Hydro

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October 2013 BC Shipping News 15

Photo credit: BC Shipping News

INDUSTRY INSIGHT

The Canadian Ferry Operators Association Conference (September 2012) — left to right: Michael McNevin (BCFMWU), Mark Wilson (BC Ferries) and Eduardo Munoz (BCFMWU) with Mike. than for us to burn diesel ourselves but, more importantly, it’s better for the environment and better for nearby communities.

We are a partner in the Power Smart program and work with BC Hydro to reduce energy consumption right across our fleet, terminals and offices. We’ve got some pretty aggressive targets that

we’re working on in that area. We’re also a big proponent of environmentally friendly cleaning products on our vessels, especially if there’s potential for the product getting into the ocean.

And we’ve gone to pump-ashore for all of our sewage discharge — right across the board. We have a couple of ships where we still treat the water but

About Mike Corrigan

M

ike Corrigan was appointed President and Chief Executive Officer of British Columbia Ferry Services Inc., on January 1, 2012. He has been a senior executive with BC Ferries since joining the company in 2003, serving in the separate roles of Chief Operating Officer (2006-2011) and Executive Vice President of Business Development (2003-2006). In addition to overseeing all aspects of BC Ferries’ operations as COO, he has been responsible for creating and leading the company’s SailSafe program — a joint initiative with the BC Ferry and Marine Workers’ Union — that has established a comprehensive safety culture at BC Ferries.

Prior to joining BC Ferries, Mike worked in senior roles with Westcoast Energy in both British Columbia and Ontario. He has a MBA from the University of Victoria, a Bachelor of Business from the University of Western Michigan and an Arts Degree from Kalamazoo College in Michigan. Mike grew up in Sudbury, Ontario and now resides in VictoPhoto credit: BC Shipping News ria with his wife, Shari, and their Mike and Shari Corrigan. two daughters, Jakki and Mika.

16 BC Shipping News October 2013

for the vast majority of the fleet, we’ve gone to pump-ashore. We spent tens of millions of dollars on that project when new environmental regulations came in — more than that, though, it was the best way to minimize our environmental footprint by pumping into municipal sewage treatment plants. We started doing that a couple of years ago.

It’s expensive but it’s the right thing to do.

We also strongly promote people not idling their cars on ships and in terminals and we have a waste diversion program where compostable waste on the ships is separated and diverted away from the landfills. So there’s a lot going on with the environmental side of the equation.

BCSN: We haven’t yet touched on federal and international regulations that affect BC Ferries. Are there any that are posing a challenge?

MC: There are always challenges around regulations — some changes to manning regulations a few years ago added crew to our vessels and ultimately costs to our systems; and environmental regulations relating to sewage discharge saw some significant costs for treatment plants, but we work closely with Transport Canada both at the regional and national level to ensure a healthy dialogue on proposed regulations.

BCSN: What about at the international level — the International Maritime Organization?

MC: Yes, we’re always monitoring developments on issues like grey water discharge, air emissions (ECA) or the Energy Efficiency Index.

We’re members of InterFerry and the Canadian Ferry Operators Association and we choose to do a lot of our lobbying and our education through those organizations. Captain Jamie Marshall (Vice President, Fleet Operations) is the chair of the CFOA and I’m a board member on InterFerry. It’s important and of great benefit to be able to work with others in the ferry industry on common issues so that we have a stronger voice when speaking with governments.

BCSN: Last question: you’ve been President & CEO for a couple of years now, are you enjoying the role?

MC: Most days... BCSN

INDUSTRY INSIGHT About BC Ferries

B

C Ferries was incorporated on June 15, 1960 as the British Columbia Toll Authority Ferry System. It started out with two ships, two terminals, and around 200 employees. In April 2003, BC Ferries was transformed from a Crown Corporation into an independent, commercial organization under the Company Act. Today, with 35 vessels, 47 terminals and 25 routes, BC Ferries employs upwards of 4,700 employees. In Fiscal 2013 (year ended March 31, 2013), BC Ferries carried about 19.9 million people and 7.7 million vehicles.

SCA0019A - Ferries BC Shipping News.pdf Photo courtesyAd of BC

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10/19/2012

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Vision — To provide a continuously improving west coast travel experience that consistently exceeds customer expectations and reflects the innovation and pride of our employees.

Mission — To provide safe, reliable and efficient marine transportation services which consistently exceed the expectations of our customers, employees and communities, while creating enterprise value.

The six core values of BC Ferries revolve around safety, quality, integrity, partnerships, environment and employees.

For more information about BC Ferries, visit www.bcferries.com.

October 2013 BC Shipping News 17

history lesson An experience told through photos

Life on board an oil tanker

By Lea Edgar

Librarian/Archivist, Vancouver Maritime Museum

H

illis Stratton was the wireless operator and purser on board the oil tanker Britamerican. A year before he passed away, Hillis graciously donated two photograph albums to the Vancouver Maritime Museum full of images of his trips on board the British-American Oil Company vessel.

Photographs are, more often than not, the only records we have to study a historic period or subject. Through his images, Hillis offers us a unique view of the life of an oil tanker crew member in the late 1940s. His photographs feature many subjects, including B.C. port towns and canneries, numerous vessels plying the local waters, crew members at work and at play, and even the occasional seagull.

Albert LeRoy Ellsworth formed the British-American Oil Company (BA) in 1906 and began distributing oil from Toronto. In the early part of the century, BA bought out many smaller oil companies and started to expand.

In 1946, the company purchased Union Oil Company in British Columbia and began shipping oil products along the coast. Hillis’ ship, the Britamerican, was one of the vessels supplying oil to British Columbians in both populated and remote locations from Port Albion to the Inverness Cannery near Port Edward. Hillis’ amateur photos provide us with a glimpse of a specific moment in time in B.C.’s shipping history.

Regrettably, neither Hillis nor any surviving heirs are here to describe to us the context of the photographs. Even so, accompanied by Hillis’ often humorous captions (the captions below each photo are courtesy of Hillis), the photographs featured here Hillis Stratton still speak for themselves.

18 BC Shipping News October 2013

Locations As a starting point for each journey, this must have been a common sight for Hillis on board the Britamerican. Erky Woodside was the BA Oil salesman for the harbour.

“Midnight at Erky’s.”

“Harry and a lass at North Pacific.”

The North Pacific is the oldest intact salmon cannery on North America’s West Coast and was the longest running cannery in B.C. A very important heritage site, it is fascinating to see photographs of it as a functioning cannery.

VANCOUVER MARITIME MUSEUM The Crew Hillis often took photographs of his fellow crew members.

Sometimes playful, sometimes hard at work, the crew were all characters in Hillis’s pictographic story.

“Dave and Harry ‘going over’ a winch at Powell River.” One of the few images Hillis took of the crew working.

“SE x S ¼ S” An unnamed female crew member that appears in two other images taken by Hillis. It is unknown whether she was in fact crew, the wife of a crew member, or a guest on board the ship.

“Reflections in oil – in #7.” Hillis starts to get more artistic with his shots. This is also a significant image amongst the more playful crew photos, and serves as a reminder of why they were there.

The Ship Hillis took many photographs of the Britamerican herself.

A number feature seagulls that followed and caught a ride on board the vessel. Others illustrate the condition of the ship and cargo and the rough seas frequently encountered along the B.C. Coast.

“Scooping it up” Swells go up and over the deck.

“Who said a tanker doesn’t carry passengers?” One of Hillis’s many photographs of seagull stowaways. In addition, however, this image also shows us how the oil drums were stowed on board. It makes one wonder how many were lost in situations like the one shown above.

The last image of the two photo albums happens to be of Hillis himself. Looking a little older and more experienced, Hillis seemed to enjoy his time on board the Britamerican. Little was documented about his life, however, we do know he married and lived out the remainder of his days in North Vancouver. Thanks to his photographic hobby, we can piece together what the experience of working on an oil tanker was truly like in the post-World War II period.

Lea Edgar started her position as Librarian/Archivist for the Vancouver Maritime Museum in July 2013. She can be contacted at archives@vancouvermaritimemuseum.com October 2013 BC Shipping News 19

SMIT keen to blaze its own West Coast trail

By Ray Dykes

W

hile it’s not the biggest tug boat company on the West Coast, SMIT Marine Canada Inc. comes well-connected globally.

In many ways, it is forging its own West Coast trail with a fleet of 21 tugs operating in the ports of Vancouver, along the Fraser River, Prince Rupert, Stewart, Squamish, Port Mellon, and Kitimat. With 100 employees and a variety of tug boats on the coast, SMIT is heavily involved in harbour towage.

SMIT raised its profile on the West Coast in 2000 when it bought the RivTow fleet — once the largest tug and towboat fleet in British Columbia — with high hopes. Back then, the B.C. forest industry had been languishing and towboat business was slumping.

20 BC Shipping News October 2013

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...SMIT’s presence in Canada brings more to the table through its parent company in Holland, Royal Boskalis Westminster N.V., which took it over in 2010.

The markets never did recover and in 2010, SMIT sold its barge towing business to Seaspan Marine Corporation.

Barge operations weren’t seen as part of the core business of the worldwide SMIT group and the decision was made to sell.

The aim for now is to concentrate on what SMIT does best — harbour and river towage and tanker escorts.

Today, SMIT’s presence in Canada brings more to the table through its parent company in Holland, Royal

Boskalis Westminster N.V., which took it over in 2010. As well as the familiar harbour towage in ports worldwide, Royal Boskalis has an 1,100-vessel fleet operating in over 75 locations on the world map involved in dredging, dry infrastructure, terminal services, salvage, offshore contracting, and heavy marine transportation (through its Dockwise subsidiary).

Vancouver-based President of the Canadian arm of SMIT, Frans Tjallingii,

Photo credit: Mike Zelt, courtesy of SMIT Marine Canada Inc.

harbour towage Photo credit: Mike Zelt, courtesy of SMIT Marine Canada Inc.

has lived with his family in Canada for the past two-and-a-half years. He’s in charge of three separate entities — SMIT Marine Canada Inc., SMIT Harbour Towage Westminster Inc., and SMIT Harbour Towage Vancouver Inc. — and says the attractive feature of the group is its personalized service.

Asked if it’s a busy time for the companies, he admits demand overall is “off and on” but notes slow but steady growth in Port Metro Vancouver and Prince Rupert.

The story in Kitimat, where two SMIT tugs call home, is not as encouraging yet, but the potential of major projects promised for the private port offers huge hope.

“Kitimat is very quiet at the moment and it’s quite a job keeping our crews busy working on the vessels,” he adds.

It’s a different story in Vancouver and Prince Rupert, but there are still concerns there, too. SMIT is competing strongly for harbour towage work for the typical 3,000-plus vessel calls recorded each year in Port Metro

SMIT’s Tiger Spirit and Tiger Sun Vancouver. It’s not what Tjallingii calls a booming market, but business has picked up a bit in Vancouver Harbour over the last year or so, while the Fraser River has been slower than in previous years.

There’s the same eagerness in Prince Rupert to gain more business, but the ship call numbers are a fraction of what they are in Vancouver or on the Fraser.

Due to ever larger vessels entering

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HARBOUR TOWAGE under his belt and expansive global experience, Tjallingii has a good feel for the world and brings that knowledge and expertise to the West Coast.

He was born in Holland and raised in Mozambique and has worked in Gabon, West Africa, in a SMIT subsidiary serving oil and gas companies assisting tankers and offshore rigs. He has also worked on environmental aspects for the Dutch Government, and in consulting.

Since he arrived in Canada in 2011, he has been a SMIT booster. “We are smaller than Seaspan, but we offer a highly personalized service,” he says.

“Our Captains and crew are very good and we have a very, very high rate of satisfaction.”

SMIT’S 21 tug boats range in power from two small 600 horsepower tugs used largely for handling vessel lines, to others up to the 6,700 hp/ 85 TBP SMIT Orleans, which is the most powerful harbour/escort tug on the B.C. coast. The fleet is well-spread throughout with seven tugs in Vancouver,

another five working the Fraser River, seven more in Prince Rupert, and two in Kitimat.

“Over the past few years we have invested heavily in bringing our fleet to a very high standard,” says Tjallingii.

“This has included re-powering one vessel and relocating a number of others from elsewhere in SMIT’s world.”

Safety is the main driver for the company right now and Tjallingii says the aim is to continuously increase the safety levels, quality, and care for the environment.

Facilities in Vancouver include a head office for coastal operations and tie-up berthage at the Commissioner Street Dock. Prince Rupert boasts a dock, a maintenance facility and a brand new office. Kitimat also has a dock, a small office and maintenance capacity. New Westminster has its own dock and maintenance facility as well.

One little-used capacity Tjallingii would like to see highlighted more is the company’s salvage division and its firefighting capacity. SMIT recently

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Frans Tjallingii, President, SMIT Marine Canada Inc. helped fight a container barge fire near the Port of Prince Rupert as a first responder and the SMIT boss believes the combination of a strong local presence with world-class salvage capability is a great plus.

As well, SMIT is hopeful of winning the bid to salvage the oil-filled, World War II shipwreck, the General M.G. Zalinski, which ran aground and sank off the B.C. coast in the Grenville Channel near Prince Rupert in 1946.

The 1919-built, 251-foot-long steel vessel was discovered upside down and perched on the edge of a cliff by divers.

The ship has continued to deteriorate and its oil needs to be removed to protect the environment.

SMIT is one of those salvage experts seeking the contract from the Canadian Coast Guard and it is estimated that whoever wins the bid will take about one or two months to do the work later this year.

With its versatile fleet, highly skilled crews and the backing of one of the world’s largest marine companies, Tjallingii believes SMIT has a bright future ahead on the West Coast.

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

SHIPBROKERS

Our word, our bond

Putting Vancouver on the map of the international shipping scene

O

ur word, our bond — this is the motto ensconced in the Coat of Arms of the Institute of Chartered Shipbrokers (ICS). It reflects the pride and importance that the Institute’s founding directors placed in honest, forthright, and ethical practices for shipbrokers. Given the rich history of the Institute — dating back to the early 1900s — and the tradition of upholding high standards, Vancouver’s emergence as the headquarters of the Canada Branch is somewhat of an honour. The fact that the London-based Controlling Council of the ICS chose Vancouver as the next location for their annual meeting, taking place in September, solidifies the acknowledgement that Vancouver is very much a key player on the stage of international shipping.

While the Institute’s name reflects its roots in shipbroking — i.e., the service of acting as an intermediary or negotiator between ship owners and charterers who use ships to transport cargo, or one who facilitates the sale of a ship — its membership comes from all aspects of the shipping industry, including owners, agents, lawyers, businessmen, and those committed to continual improvement of their knowledge of the industry. Indeed, the ICS plays an important role in providing access to professional development, best practices, and networking to a membership of over 4,000 individuals and 120 companies in 24 branches located within key shipping centres around the world.

Most importantly, the Institute provides strong leadership in the ethical conduct of its membership. With 78 members and 15 students in various degrees of progress through the Institute’s accreditation program, the Canada Branch maintains the reputation of the ICS through similar leadership to the local industry.

ICS roots As far back as 1285, and up to the late 1800s, a shipbroker in the City of London required a licence to trade.

Any infractions of the rules which resulted in less than honourable

ICS’ Coat of Arms that hangs in the ICS office in London: “Azure three ancient ships under fesswise in bend or between four bendlets wavy Argent. And for the Crest on a wreath of the colours. In front of two anchors in saltire or surmounted by a ship’s wheel a mast head with a mast head light all proper,” noted The Shipbroker in 1931. “The three ships represent the fleets whose destinies are influenced by the Institute, the blue field of the shield and the four wavy bendlets are, or course emblematic of the sea. The Crest is rather more elaborate. The anchors are indicative of the seafaring activities of the Institute, and the ship’s wheel is to show that it performs the function of a guide, whilst the mast head light may be considered as both a symbol of safety, and the light of information spread by the members of the Institute.” behaviour were answerable to the Court of Aldermen. By the late 1800s however, brokers of the day saw the licence as a restrictive interference in the expansion of their practices and succeeded in getting the law repealed. For 30 years, the shipbroking industry was without regulation and, as is often the case when there are no set standards of conduct, the reputation and professionalism of the industry quickly declined. For this reason — plus the realized need

for an institute that would protect its members in issues of remuneration, and act as a regulator in setting professional standards — the Shipbrokers’ Institute was formed and approved through the Baltic Exchange in October 1910. As noted by the first president, Sir Thomas Lane Devitt, the Institute meant that the work of a broker should “be lifted from a mere haphazard trade into the dignity of a profession”.

The formal objectives for the new Institute were: October 2013 BC Shipping News 23

SHIPBROKERS

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By the early 1990s, the Vancouver shipping industry had transformed itself...new export markets had flourished on the West Coast...so that local chartering activity increased.

• To protect and promote, by co-operation, the general welfare and interest of shipbrokers • To discuss, consider and report subjects of interest to shipbrokers and to communicate with the Chambers of Commerce and other public bodies • To promote or oppose legislative and other measures affecting the business of shipbrokers and to consider, originate, and support improvement in maritime and commercial law • To consider all questions affecting the interest of persons engaged in the business of shipbrokers • To provide better definition and protection to the profession and business of shipbrokers by a system of examination and issue of certificates It was this last activity — to set standards by examination — that convinced the U.K.’s Privy Council that the Institute was a serious professional body and deserving of a much coveted Royal Charter, which was granted in 1920. And so the Institute of Shipbrokers became the Institute of Chartered Shipbrokers.

24 BC Shipping News October 2013

In addition to the conditions applied to the provision of education, the Royal Charter imposed a system of discipline so that any member acting in a discreditable manner would be censured, suspended or even expelled from membership. This is still the case today.

The 1920 Charter had stipulated that members of the Institute must be British born. This rule was amended in 1947 to British subjects: as a result of the increase in the number of members that this engendered, new branches of the Institute were opened in British territories outside the U.K. and in Commonwealth countries. By 1984, the Institute was granted a supplemental charter to permit membership from citizens of any country in the world.

ICS in Canada The British Columbia Branch of the Institute was started in Vancouver in 1962 by Frank Dollman and Frank Kendrick and, at the time, was only the second overseas branch to be established (after Hong Kong). While attracted by the ideals of the Institute,

Sarah Gilbert, President, Institute of Chartered Shipbrokers, Canada Branch.

Dollman and Kendrick were challenged in their efforts — the local maritime industry did not include much shipowning or operating activity and, as most of the bulk exports were sold FOB (Free On Board, meaning the seller pays for the transportation of goods), there was virtually no local chartering activity.

Coupled with the restriction of membership to British subjects, the Branch was put into hiatus in the 1970s.

By the early 1990s, the Vancouver shipping industry had transformed itself — from forestry products of lumber, pulp and paper, logs, and woodchips to grain, sulphur, potash, liquid chemicals and petroleum, new export markets had flourished on the West Coast. Several of the new export markets for these products were developed on the basis of C&F sales (Cost and Freight, meaning the importer has paid the cost from port of loading to final destination) so that local chartering activity increased.

In the mid-1980s, the establishment of the Asia Pacific Initiative, in recognition of Vancouver’s increasing prominence as Canada’s “Gateway to the Pacific Rim”, issued the recommendation that an International Maritime Centre (IMC) be created. The IMC lobbied for — and were successful in achieving changes to Canada’s Tax Act that would encourage ship owners and operators to relocate to Vancouver.

Banking regulations were changed to allow for Vancouver to develop as an International Banking Centre. At the

shipbrokers same time, the Vancouver Maritime Arbitrators Association was developing Vancouver as an excellent location for international maritime arbitrations.

The only gap in the IMC however was a forum for internationally accredited maritime education courses. In 1992, a delegation from ICS London visited Vancouver to discuss the possibility of a Distance Learning Centre in B.C. It was agreed that a local Branch would be the best option for administering ICS exams and in 1993, the Branch was re-established.

By 2004, the Branch recognized the importance of including Canadian members outside of British Columbia.

The Executive committee put together a recommendation to the ICS Controlling Council and the British Columbia Branch was renamed ICS Canada Branch in 2005.

The importance of professionalism Now, with members across Canada, and a board mandate that ensures at least one director be based on the East Coast, the ICS Canada Branch plays a significant role in preserving professional standards through education and examination that implies a certain level of professional competence and standing.

“It is understood that members must uphold the standards of the Institute,” said Sarah Gilbert, President of the ICS Canada Branch. “The designation is well-recognized around the world and the significance of maintaining a strong branch presence shows the international community that we have the professional expertise here and that Vancouver is a vibrant centre for shipping.”

As a truly international provider of professional maritime training, ICS offers an unrivaled learning experience. The exam process — whether for Professional Qualifying Exams, a Foundation Diploma or an Advanced Diploma — can be started at any stage in a person’s career with the ability to either break studying into manageable chunks or embark on the full qualifying program.

Working closely with the Chamber of Shipping of British Columbia, the ICS in Vancouver organizes

professional development sessions covering a variety of topics from Dry Cargo Chartering to Agency to Maritime Law. One of the most popular sessions, now offered in multiple locations around B.C., is the ‘Business of Shipping’ — a one-day course led by local industry leaders who provide an overview of their particular area of expertise.

The relevance of the ICS in Vancouver cannot be understated: “We have all the parties here to arrange every aspect of shipping in the City

and it’s important that local stakeholders realize this and take ownership of every level of the shipping process,” said Gilbert. “By promoting the industry here, we are ensuring that development and growth continue, attracting even more companies and individuals to do business on the West Coast. It’s a classic case of ‘use it or lose it’ and this is where the ICS comes in — it establishes a degree of ethics and high standards that allow us to promote the local industry to the world.” BCSN

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October 2013 BC Shipping News 25

BULK CARRIERS

Pacific Basin’s expansion plan bucks trend

S

ince becoming a public company in 2004, Pacific Basin’s growth — through both acquisitions of vessels and offices opened around the world — has bucked current trends in the dry bulk shipping sector and has outperformed the market by 32 per cent on their Handysize fleet, and 28 per cent on their Handymax fleet. They are currently owners of the world’s largest, most modern Handysize fleet, and a significant owner and operator in the Handymax segment.

Globally, Pacific Basin employs 2,500 seafarers and 350 shore-based staff in 16 offices around the world under two banners: Pacific Basin Dry Bulk and PB Towage. Given that one of their 16 offices is here in Vancouver (in fact, was the sixth office established following their July 2004 entry onto the Hong Kong Stock Exchange), the significance of their presence is another example of Vancouver’s growing importance within the international shipping industry.

“There is a very active shipping market here,” said Peter Amat, General Manager, Pacific Basin Shipping (Canada) Ltd. in an interview with BC Shipping News. “With PB being a Hong Kong-based company with activities into and out of the North Pacific, Vancouver was seen as a logical choice for an office.”

Operating from Mexico to Alaska, Pacific Basin Canada handles all major commodities on the North Pacific, including grains, petcoke, scrap, logs, cement, and minerals. They are actively involved in two segments of the dry bulk market — Handysize (DWAT 28,000 to 38,000) and Handy/ Supramax (DWAT 48,000 to 61,000 MT geared vessels) and also provide some parcelling services in both sectors.

Their worldwide dry bulk fleet — with an average age of six years — consists of 175 Handysize (18 of which are new builds on order), 69 Handymax (four of which are new builds on order), and two Post-Panamax. An additional 45 tugs and barges operating in Australasia bring the total number of vessels to 291.

26 BC Shipping News October 2013

Peter Amat, General Manager, Pacific Basin Shipping (Canada) Ltd. The focus on Handysize and Handymax allows PB a flexibility in operations — not just for the accessibility to ports restricted by shallow water or narrow channels — but for the ability to manage the ups and downs of world dry bulk markets and open up markets of more valuable cargoes such as concentrates.

Reporting on performance to date (to June 30, 2013), CEO Mats Berglund wrote in PB’s 2013 Interim Report that: “Our core dry bulk shipping business was again profitable and delivered a healthy cash flow despite the weak dry bulk shipping market.

“Our average Handysize daily earnings fell 12 per cent year on year…but still outperformed the market by 32 per cent in the period, and our Handymax earnings outperformed the

bulk carriers market by 28 per cent. This performance reflects the value of our fleet’s scale and our global dry bulk team’s ability to achieve optimal cargo combinations — combining contract and spot cargoes — and optimal matching of cargoes with the right ships, all of which is driven by our industrial and customer-focused business model.”

Amat echoed that message: “In a lot of ways, our fate is out of our hands and solely dependent upon our customers’ success. But our reputation for doing whatever we can do to assist them, and help make them competitive by offering innovative solutions to their shipping needs, demonstrates our customer-focused business model in action.”

Bringing the conversation closer to home, Amat noted: “Shippers are always striving to find economies in operations and scale. An example of this would be the shift in size of log shipments off the West Coast from DWAT 28,000 to DWAT 32,000, and now larger units are being built. We’ll have the largest fleet of DWAT 37,000 to 38,000 globally by the end of this year. This has been a major investment to service the requirements of our closest customers and assist them in lowering their shipment costs.”

Having weathered a weak dry bulk market over the past five years, PB has bucked trends of scrapping or laying up vessels and have instead, accelerated their fleet expansion — they have committed to purchasing 21 second-hand ships in 2013 and have six new builds on order plus an option for another three. The strategy of significant acquisitions while the market has been soft has proven successful: “We remain very satisfied with the timing of our acquisitions,” writes Berglund. “In view of the narrowing gap between second-hand and new build ship prices, we gradually shifted our focus from the purchase of second-hand ships to also ordering new builds — including larger 37,000tonne vessels which are not available in the second-hand market — which offer good value at today’s historically attractive prices.”

Berglund further writes: “Availability of the right ships remains tight, but we

are well-positioned to access both onmarket and off-market opportunities — as our acquisitions of the past several months have shown — to position ourselves optimally for a cyclical recovery and to generate attractive longterm returns.”

Berglund expects the dry bulk market to remain weak overall in the second half of this year with improvement being seen into the fourth quarter due to reduced new-build deliveries and a resumption in demand. Handysize and Handymax spot markets will remain relatively flat with an “eventual recovery being only gradual in the short-tomedium term.” He noted that the worst of the influx of new capacity — which peaked in 2012 — has now shifted and that “the global fleet of Handysize vessels registered a one per cent net capacity growth in the first half of 2013 as scrapping substantially offset deliveries.”

Commenting further on forecasting for the dry bulk market, Amat added: “Shipping and especially bulk shipping

is cyclical. The recent market fuelled

by China’s hunger for commodities created a super cycle and we have now returned to a more traditional cycle where supply and demand oscillates more uniformly. The great markets of the mid-2000s saw owners rushing to build vessels at great cost only to be faced with deliveries in 2010 to 2012 when the world economy was at the bottom. Hence, the last few years have been tough on the industry and many owners are struggling. It is fair to say that going forward, things can only get better, but there will still be some casualties along the way.

“We expect a slow recovery of rates and the market as we go forward, perhaps by the second quarter of next year. Scrapping is taking away many older, inefficient ships, and high bunker prices will render may ships uneconomical. Many owners are now ordering “ecoships” which potentially burn less fuel and are thus more competitive. Overall, I think it is a case of “steady as she goes”. BCSN

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EVENTS: PORTS Theme of building partnerships resonates with attendees

F

rom the first day of activities to the closing session, the Association of Canadian Port Authorities Conference delivered on its promise of a dynamic, engaging agenda with relevant panel discussions, great networking opportunities, and an exhibit area where new products and services caught the interest of attendees. Hosted in the City of Nanaimo, the Nanaimo Port Authority is to be commended for their efforts in assisting ACPA with on-site logistics as well as highlighting city sights through unique and entertaining events.

The theme of “Building Partnerships” was evident throughout each of the business sessions over the three-day ACPA Conference (held in mid-August).

It also played a key part of the message from speeches by new Minister of Transportation Lisa Raitt, U.S. Consul General Anne Callaghan, and Captain Luc Cassivi, Deputy Chief of Staff Operations and Plans for Maritime Forces Pacific.

with relevant panel discussions, great networking opportunities, and an exhibit area where new products...caught the interest of attendees.

Exhibit area New to ACPA conferences this year was an exhibit area that doubled as a meeting area during coffee breaks and off-session free times. Exhibitors such as Daigle Welding and Marine, the Port of Belledune (site of next year’s ACPA conference), Teledyne Reson, BC Shipping News, Canadian Sailings, Vector Group, and many more were on hand to display new products and services and network with conference attendees.

The initiative of an exhibit area during the conference received fantastic feedback and all exhibitors had no hesitation in recommending that the practice continue for next year.

engage in conversation and enjoy the perfect summer weather. Events took conference guests to the Nanaimo Golf Club for the Annual ACPA Golf Challenge (for non-golfers, a Nanaimo Walking Tour provided a chance to become familiar with nearby attractions); the Welcome Reception, held later that evening at the Nanaimo Port Authority Cruise Ship Welcome Centre, featured First Nations dancers, a resident eagle, an on-water display of Nanaimo Port Authority’s two patrol vessels, (built by Daigle Welding & Marine), and a scrumptious West Coast BBQ & Seafood Feast.

Following the first full day of sessions, attendees were treated to the popular Good Timber Show at the Port Theatre. Featuring a history of logging on Vancouver Island, the show was not only educational but extremely entertaining.

The main social event of the conference — the Chairperson’s Gala — held at the Conference Centre, featured “An Island in the Pacific Beach Party” with guests dressed in Hawaiian-inspired shirts and leis amid palm trees and exotic plants.

ACPA welcome messages Welcoming guests to the 55th Conference of the Association of Port Authorities, Conference Chair, and President & CEO of Nanaimo Port Authority, Bernie Dumas described the significant changes undergone in Nanaimo since the last ACPA conference hosted in the city 32 years prior. ACPA President Wendy Zatylny, Councillor George Anderson, representing the City of Nanaimo, and ACPA Chair Robin Silvester each provided messages focused around the theme of Building Partnerships. Silvester further recognized the efforts of Bernie Dumas and his team at the Nanaimo Port Authority.

Photos credit: Kim Dumas

Social and networking Given that many attendees rarely get the opportunity to meet their counterparts from across the nation, the ACPA Conference was as much about networking and information sharing in an informal setting as it was about structured presentations. To this end, there were a number of opportunities to

*

...[ACPA] delivered on its promise of a dynamic, engaging agenda

Left to Right: Paul Walter, Greg Entwistle, Lorrainer Markin, Sarah Lane (event planner) and Dave Mailloux 28 BC Shipping News October 2013

Keynote speakers The Honourable Lisa Raitt, Minister of Transport — In her first formal speech as Minister, the Honourable Lisa Raitt felt right at home amongst past colleagues and peers.

Noting her background as President & CEO of the Toronto Port Authority, Minister Raitt told attendees that she was well aware of the importance of transportation logistics in growing the national economy.

EVENTS: PORTS Having been in her new position approximately nine days before facing the Lac-Mégantic train derailment and explosion, Minister Raitt stressed that safety was the top priority and cornerstone of operations. As Transport Minister, she considered this a fundamental piece of her role.

Relating safety to marine operations, the Minister outlined recent initiatives taken by the federal government in addressing oil tanker safety, including a new piece of legislation, “Safeguarding Canada’s Seas and Skies Act”, designed to ensure a ‘worldclass’ pollution prevention scheme.

Minister Raitt also spoke about the government’s recent $2 million contribution to Access Technologies to develop efficiencies in collecting and analyzing data for harbour security.

She wrapped up her presentation by noting that Canada’s ports have been key partners in building an efficient transportation system and that it was BCSN 1/2 pgto h _1/2 pg a horz 8/23/13 important “stay step ahead12:09 at aPM

Phone 604.988.3111

time when governments are trying to balance their books”.

Anne Callaghan, U.S. Consul General, spoke following Minister Raitt and reiterated the importance of ports in the overall logistics supply chain. She pointed to the Asia-Pacific Gateway Initiative as a great model for infrastructure that combined various modes of transportation into a seamless chain. She also highlighted initiatives such as Beyond the Border, Nexus, and the innovative Cargo Perimeter Security pilot program as collaborative ways to keep obstacles to the largest bilateral trading partnership in the world to a minimum.

Approaching the notion of partnerships from the naval point of view, Captain Luc Cassivi, Deputy Chief of Staff and Plans for Maritime Forces Pacific, outlined activities of MARPAC with a special focus on joint initiatives, exercises and task forces that were carried out between U.S. and Page 1 Canadian naval forces.

Business sessions 1. Cruise partnerships in Canada — moderated by Greg Wirtz, President of the Cruise Line International Association - North West and Canada, panelists took turns discussing cruise line, port and supplier perspectives.

Carmen Ortega, Manager Business Development, Port Metro Vancouver, highlighted initiatives like shore power and US Direct (a program that provides pre-clearance for cruise passengers) as examples of how partnerships were improving environmental and security considerations for the cruise industry. Peter Lehmann, Senior Marine Services Manager Marine, Tervita Waste Management, described how the partnership between his organization, the port, cruise lines and other key suppliers to the Victoria cruise industry were making an impact on lessening the industry’s environmental impact as well as some unique programs such as supplying Victoria’s less fortunate

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October 2013 BC Shipping News 29

EVENTS: PORTS with blankets and other used goods from the cruise ships, to using cooking oil from the ships as bio-fuel for tour buses. Andy Nelson, Business Consultant, Royal Caribbean Cruises Ltd. spoke of the importance of building relationships before they are needed. “It takes a community to make a cruise industry viable,” he said.

2. Intermodal partnerships — Mike Ircha, Senior Advisor, ACPA moderated this session that saw Elaine Holmes, Director Intermodal - International, Canadian Pacific Railway; Andrew Carter, Economic Analyst, Transport Canada; and Michael McLellan, Vice President, Strategic Initiatives, TSI Terminal Systems Inc. described the importance of strategic alliances and mutual trust amongst partners in supply chain logistics. Holmes provided three examples of partnerships revolving around communications and metrics; dynamic export management; and perishable protective service consolidation that were key to

creating capacity and enabling growth. Carter looked at system efficiencies within Canada’s national transportation policy and spoke to how the application of metrics was key to facilitating intermodal partnerships. McLellan described the qualities required to make an effective partnership, specifically, transparent goals and pre-determined objectives combined with information sharing and trust.

3. Maritime resumption: Emergency response — Captain Edward Dahlgren, Manager of Marine Operations and Harbour Master, Nanaimo Port Authority moderated a panel consisting of Matt Morrison, CEO, Pacific NorthWest Economic Region (PNWER); Allan Bartley, Director, Marine Security Policy, Transport Canada; and Pat Docking, MBA, Engineering Tech, PDocking Consulting Ltd. Each in turn described the high degree of partnerships that would be required to address supply chain disruptions in the event of a catastrophic event. Morrison used the recent Superstorm Sandy, which created over $1 billion in damages to the East Coast, as a way to demonstrate the national resources required to return life to normal. Bartley reviewed processes such as identifying threats and vulnerabilities (pre-disruption) and restoration of timelines and establishing priorities for inbound and outbound vessels (postdisruption). Docking outlined 10 best practices that were a ‘step-by-step’ guideline to be able to minimize the impact of a disaster. Captain Dahlgren used Docking’s step by step process to demonstrate the NPA’s Priority Action Items, and in the process, demonstrating the numerous contingencies and partnerships required.

Photos credit: Kim Dumas

Scenes from the55th ACPA Conference in Nanaimo, August 18 to 21, 2013. Special thanks to Kim Dumas for her excellent photography.

30 BC Shipping News October 2013

EVENTS: PORTS 4. Community partnerships — more than a few people watching the panel session on community partnerships were jealous of the relationship enjoyed between Jim Quinn, President and CEO, St. John Port Authority, and Greg Norton, Councillor, City of Saint John. With Wendy Zatylny in the moderator’s chair, Norton and Quinn described a working relationship between the port and the city that encouraged community engagement and recognized the importance of the port for jobs, business opportunities and, ultimately, growth of the economy. The third panelist, Michael Buda, Director, Policy and Research, Federation of Canadian Municipalities, reviewed some of the challenges faced by municipalities, including aging infrastructure, the transfer of costs from federal and provincial governPublication ments, andNews the need to balance the BC Shipping growth of global trade with local Issueimpacts of noise, increased traffic and pollution, and security costs.

October Closing speeches Size Robin Silvester, President and Island (half page vertical) CEO, Port Metro Vancouver / Chair, ACPA, started off by recognizing the Deadline efforts of 6, Wendy Zatylny, President of September 2013 ACPA, and ACPA’s new Communications Manager, Antoinnette Brind’Amour.

Features He touched on past successes, such as Thisthe ad White is supporting the press Paper on Marine Policy, and release the more PoLB work fireboats notedonthat was upcoming to address issues that affected ports EDITORIAL FOCUS: Shipping across Canada and further improved Charters/Agents Ÿ Industry – Peter Amat, Canada’s Insight supply chain.

Pacific Basin / Sarah Gilbert – Wendy Zatylny presented “New President, ICS Directions which she Ÿ Ferries: BC2013” fleetinupdate andoutlined the many changes and initiatives that operations Ÿ BC Ferries safety: had taken place overSAILSAFE the past year as program well as those to be implemented in the Ÿ Oil Spill Response: Part 2: coming year.toGoals for ACPA included: Comparison US Regime Ÿ Onboard fire safety (to be • Rebuilding foundations — updating confirmed) administrative procedures, expanded Ÿ Cargo Logistics Canada – communications conference lead-up(as well as bilingual communications), and a new membership category for those who support the goals and activities of the association.

• Increasing visibility in Ottawa.

• Advocacy — focusing on issues such as the Emissions Control Area, shore power funding, and various activities around infrastructure.

In addition to the business sessions, ACPA held their Annual General Meeting before the close of the conference. At the meeting, Sylvie Vachon, President & CEO of the Port of Montreal was elected to the position of Chair. Bernie Dumas, President & CEO, Nanaimo Port Authority was elected to the position of Vice Chair.

One last order of business — ACPA bestowed the Medal of Merit Award to Captain Alwyn Soppitt, the posthumous award was in recognition

of Captain Soppitt’s 30-year career with the Saint John Port Authority, from Assistant Harbour Master to Harbour Master, to President & CEO and finally as Special Advisor during transition to current President & CEO Jim Quinn. The Medal of Merit is offered in recognition of outstanding works or service, preferably of national impact, by an individual, institution or organization in the port, shipping and maritime transportation fields.

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October 2013 BC Shipping News 31

EVENTS: CARGO LOGISTICS Coming soon to Vancouver:

The entire supply chain under one roof

By Tiffany Edwardsen, Event Manager, Informa Canada

32 BC Shipping News October 2013

Photo courtesy of: Vancouver Convention Centre

T

he inaugural Cargo Logistics Canada Conference and Expo (CLC) is taking place January 29 and 30, 2014 at the Vancouver Convention Centre West. CLC is a new industry platform with a unique approach — bring together the most diverse group of supply chain stakeholders ever assembled in Canada in order to exchange ideas, information and opportunities. It will feature a 50,000-square-foot multimodal cargo logistics exposition, 30-plus seminars and professional development sessions, and countless opportunities to network with the Industry.

The inspiration for the Cargo Logistics Canada conference came from an unlikely place…a window.

Looking out the window of his downtown Vancouver office watching Port Metro Vancouver in action, Show Director David Tyldesley thought: “Why doesn’t Vancouver host a large-scale ‘one-stop-shop’ supply chain and logistics conference?” The vision is to provide a networking, education, and business forum for all stakeholders in Canadian supply chains all under one roof.

The first order of business was to recruit a team of industry-leading supply chain professionals and partner associations to help create a relevant and dynamic conference program.

Cargo Logistics Canada’s Advisory Council includes members from: the Association of Operations Management, Ashcroft Terminal, Chamber of Shipping of British Columbia, Canadian International Freight Forwarders Association, the Canadian Institute of Traffic and Transportation, Canadian Manufacturers & Exporters, the Canadian Material Handling & Distribution Society, the Greater Vancouver Gateway Council, the Halifax Gateway, the Canadian Association of Importers and Exporters, London Drugs Limited, OK Tire, Schneider Electric Solar, the Supply Chain Management Association, Sylco Services Ltd., Teck

Vancouver Convention Centre West — site of the CLC Conference in January 2014.

Resources Limited, Van Horne Institute, Van-Whole Produce, WESTAC and Port Metro Vancouver.

“Port Metro Vancouver is pleased to be a part of the inaugural Cargo Logistics Canada Expo & Conference,” said Peter Xotta, Vice President, Planning and Operations, Port Metro Vancouver. “As Canada’s largest port, ongoing collaboration with supply chain partners is key to delivering supply chain excellence through our Gateway. We are excited to be a part of a conference that encourages collaboration among industry partners to further improve operational efficiencies as the Gateway grows to service our nation’s trade requirements.”

Having previous experience with events of this size and scope has also helped. Cargo Logistics Canada is produced by Informa, the largest publicly owned organizer of conferences, expositions and training events in the world.

Informa is a global organization, with 150 offices in more than 40 countries.

Each year, Informa brings together approximately 1.1 million professionals from every corner of every continent, all looking to meet, network, and do business. The Informa exhibition business has the unique claim to fame of having operated shows since 1880

while also publishing the world’s oldest newspaper, the maritime shipping “bible”, Lloyd’s List. Informa also produces Intermodal Europe & Asia, TOC, IMHX, INMEX China & India, and Maritime Vietnam.

As the key gateway connecting North America and Asia, Vancouver is the perfect venue to host CLC and the local industry is ready — as was proved on June 18 when 200 guests from the cargo community crowded into the Terminal City Club. CLC was officially launched

by Peter Xotta, Vice President, Planning and Operations, Port Metro Vancouver, and Raymond J. Segat, Director, Cargo & Business Development, Vancouver Airport Authority — and the momentum is only building.

A Dynamic conference program CLC is a national show, but will showcase regional content and issues.

Some highlights from the conference program include: • A case-study on one of the fastestgrowing economic regions in North America — Northern British Columbia. This session will examine the economic development in this region and the cargo, logistics, and transportation-related growth that is occurring as a result.

EVENTS: CARGO LOGISTICS Photos courtesy of Informa Canada

• A National Container Port Panel to discuss security, innovation, infrastructure, and the overall competitiveness of our port system versus the U.S. • Joy Nott, President of IE Canada will be moderating a panel on the next emerging “BRIC” country, examining the emerging opportunities in fast-growth markets like Southeast Asia, Latin America, the Middle East, Eastern Europe, and Africa.

• A panel on Inland Terminals moderated by Dr. Jean Paul Rodrigue of Hofstra University.

• A panel on the North AmericanGlobal Logistics Pipeline (Global Trade Lane Evolution and MultiModal Trends).

• Louise Yako, President & CEO of BCTA, and Dr. Vijay Gill, Conference Board of Canada, will discuss real solutions to the truck driver shortage in Canada.

• A session on the next 20 years of NAFTA from a logistical perspective…and much more.

And on the lighter side, CLC will be bringing in Tony Beck, previously of the Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games. Mr. Beck will describe how the logistics and supply chain for the 2010 Winter Olympics was structured and outline the creative solutions designed to tackle the logistical challenges from the Games. And you won’t want to miss the ‘meet and greet’ with Canadian hockey hero, Trevor Linden, in participation with the BC Safety Charter.

CLC will bring together a mix of high-quality speakers and key exhibitors to provide an invaluable industry forum covering all aspects of the supply chain. We look forward to welcoming Canadian Supply Chain professionals to Vancouver in January. CLC is a long awaited national platform where the entire freight sector can come together to compare suppliers, routes and modes to find ways of improving their supply chain and transportation flow. The full conference program, including tours and networking events is online now.

At the CLC Summer Mingler: David Tyldesley, Cargo Logistics Canada; James Laitinen, APICS Vancouver; Peter Xotta, Port Metro Vancouver; Raymond J. Segat, Vancouver Airport Authority; Cheryl Carter, Business in Vancouver; Sham Singh, SCMA; Tiffany Edwardsen, Cargo Logistics Canada

Peter Xotta, Vice President, Planning and Operations, Port Metro Vancouver, addresses attendees at the CLC Summer Mingler.

Learn more at: www.cargologisticscanada.com October 2013 BC Shipping News 33

WORLD SPILL RESPONSE

Shared interests: A look at the U.S. oil spill response regime

G

iven ocean currents — and hence the flow of an oil spill and it’s ignorance of political boundaries — Canada and U.S. oil spill response regimes are inextricably linked. Mutual aid agreements, joint exercises and co-ordinated task forces are in place that provide assurances for both countries that, should the unthinkable happen, we each have each other’s back. In this article, the second of a four part series that looks at international oil spill response regimes, we review the structure and best practices of America’s regime with our goal of further trying to answer the question: what is a ‘world-leading’ oil spill response regime.

From reviewing Norway’s spill response regime in the September issue of BC Shipping News, key differences included specific note of the collaboration and co-operation at every level of government. From municipal to federal, each agency tasked with a component of spill response (whether it be a minor marina spill or a ship-source spill) was able to come together quickly and act as a single unit if needed. Another difference highlighted was the access to large supply ships afforded by offshore oil drilling. In the United States, differences are much more subtle.

For the sake of clarity, this review deals only with coastal marine spills. In the U.S., responsibility of spills is split between the Environmental Protection Agency (EPA) for inland spills, and the U.S. Coast Guard for marine spills. It should be noted that one of the key strengths of the American regime is the National Response Center — “a single, national point of contact for reporting all oil, chemical, radiological, biological and etiological discharges into the environment anywhere in the United States and its territories.” (From the www.nrc.uscg.mil website.)

Regulations and legislation We begin by looking at the legislation that governs oil spill response 34 BC Shipping News October 2013

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Given ocean currents — and hence the flow of an oil spill and it’s ignorance of political boundaries — Canada and U.S. oil spill response regimes are inextricably linked.

in the U.S. The Oil Pollution Act 1990 (OPA) was brought in quickly following the Exxon Valdez spill in 1989. The Valdez spill highlighted key deficiencies in the response regime, specifically, a lack of adequate resources to deal with large spills; and a limited scope of damages compensable under federal law to those impacted by a spill. OPA created a comprehensive prevention, response, liability and compensation regime dealing with pollution in U.S. navigable waters from either vessels or facilities.

While a key part of OPA is the Oil Spill Liability Trust Fund (OSLTF), the Fund, in actuality, had been established four years prior albeit Congress did not pass legislation to authorize the use of the money or the collection of revenue necessary for its maintenance. It was only after the Exxon Valdez incident and the passage of the OPA that authorization was finally granted.

The OSLTF has two major components: • The Emergency Fund, available for Federal On-Scene Co-ordinators to respond to incidents and for federal trustees to initiate natural resource damage assessments. The Emergency fund is a recurring $50 million available to the President annually. The amount can be raised to $100 million, taken from the Principal Fund (detailed below), if the need is there.

• The Principal Fund is the remaining balance of the OSLTF and is used to pay claims and to fund administration of the OPA as well as to support research and development. Revenue for the Principal Fund comes from a variety of sources, the largest being a per-barrel excise tax collected from the oil industry on petroleum produced in, or imported to the U.S.

Other sources include transfers from other existing pollution funds, interest from U.S. Treasury investments, cost recoveries from responsible parties, and penalties and fines.

Under OPA, all tankers within U.S. waters must have a vessel response plan (VRP) which details sufficient resources and plans capable of dealing with a number of spill scenarios, including the loss of the entire cargo (it should be noted that some individual states have enacted different and additional requirements on tanker owners from those under OPA). In the event of a spill, the responsibility for response lies with the Responsible Party (RP) — this is done under the co-ordination of a designated Federal On-Scene Co-ordinator (FOSC). The Responsible Party would be expected to enact the VRP (noting that pre-contracted personnel and resources are accessible) — if the work is not performed satisfactorily, the FOSC has the authority to take over the response and appoint contractors (at the RP’s expense).

Response: Who’s who Incident Command System (ICS) is the common management system used by responders in the U.S. A typical response scenario for a coastal marine spill would see the establishment of an Incident Command Post (ICP) which would include a unified command of the FOSC, the State On-Scene Co-ordinator (SOCS) and the RP with additional government agencies, private contractors and other interested stakeholders involved in one or more of the four sections within the ICS: Planning, Operations, Logistics and Finance.

As noted earlier, a key strength (or, at the very least, a great idea in principle)

WORLD SPILL RESPONSE Photo credit: Richard Lam

of the American spill response regime is the National Response Center. (This is comparable to CANUTEC in Canada which focuses on transportation of dangerous goods as well as a national reporting system for spills.) The NRC is staffed by Coast Guard personnel who maintain a 24-hour, 365-day-peryear telephone watch. In addition to gathering and distributing spill data for FOSCs and serving as the communications and operations centre for the National Response Team, the NRC maintains agreements with a variety of federal agencies and organizations to make additional notifications regarding incidents.

The National Response System (NRS) is the federal government’s mechanism for emergency response to discharges.

Initially, the NRS focused on oil spills and selected hazardous substances but has since been expanded by other legislation to include all hazardous substances and waste. The NRS functions through a network of interagency and inter-government relationships as outlined in the National Oil and Hazardous Substances Pollution Contingency Plan (NCP) which establishes three highlevel organizations and four special force components: • Federal On-Scene Co-ordinators (FOSC) — pre-designated by the USCG for coastal or major navigable waterways, these individuals co-ordinate all federal containment, removal, disposal efforts and resources during an incident. The FOSC also co-ordinates federal efforts with the local community’s response.

• The National Response Team (NRT) — comprised of 15 Federal departments and agencies, the NRT is responsible for co-ordinating emergency preparedness and response to oil and hazardous substance pollution incidents. It is a planning, policy, and co-ordinating body that provides national level policy guidance prior to an incident and does not respond directly. They can provide assistance to the FOSC during an incident, usually in the form of technical advice or access to additional resources and equipment.

• The Regional Response Team (RRT) — currently, there are 13

Marine Spill Response Corporation’s (MSRC) W.C. Park Responder — at over 190 feet in length and 17 feet in depth, the vessel is one of the largest Oil Recovery Vessels on the West Coast. Seen above taking part in Canada/U.S. joint training exercises this past summer.

RRTs, one for each of the 10 federal regions plus one each for Alaska, the Caribbean and the Pacific Basin.

Each team maintains a Regional Contingency Plan and both the state and federal governments are represented. Like the NRT, they are primarily planning, policy and coordinating bodies.

• There are four special force components: • Coast Guard National Strike Force (NSF) — composed of three strategically located strike teams and a co-ordination centre. The teams have specially trained personnel and are equipped to respond to major oil spills and chemical releases.

The co-ordination centre maintains a national inventory of spill response equipment and assists with the development and implementation of exercise and training programs for the National Response System.

• Coast Guard Public Information Assist Team — a highly skilled unit of public affairs specialists who are prepared to complement the existing public information capabilities of the FOSC. • EPA Environmental Response Team (ERT) — specially trained scientists and engineers with capabilities of multi-media

sampling and analysis, hazard assessment, clean-up techniques and technical support.

• Scientific Support Co-ordinators (SSC) — The National Oceanic and Atmos-pheric Administration (NOAA) provides an SSC for coastal and marine areas. They serve on the FOSC staff as the lead for a scientific team who provides expertise in environmental chemistry, oil slick tracking, pollutant transport modelling, natural resources at risk, environmental trade-offs of counter measures and clean up, information management, contingency planning and liaison to the scientific community, and natural resource trustees.

In addition to the framework above, the U.S. Navy has large amounts of equipment at its bases. While primarily used for spills from Navy sources, the equipment is available for other uses if needed.

One of the most striking differences between the U.S. regime and that of Canada is the number of parties involved — some for profit and others not. Compared to Canada’s four Response Organizations that span the coasts, the U.S. has no less than 100 private Oil Spill Removal Organizations (OSROs) that have been classified by the U.S. Coast Guard to operate in October 2013 BC Shipping News 35

WORLD SPILL RESPONSE designated areas (depending on their capabilities). Of these, there are two that operate nation-wide: • Marine Spill Response Corporation (MSRC) — as a not-forprofit, U.S. Coast Guard-classified OSRO, MSRC was formed in 1990 to offer oil spill response services and mitigate damage to the environment. Funding for MSRC is provided by members of the Marine Preservation Association (MPA) who are within the petroleum transportation and energy industries. Focusing on open-ocean and near-shore recovery, MSRC has an extensive cache of assets (for example, over 100 various vessels and barges; over 650,000 feet of boom and 293 skimming systems) and has capabilities including in-situ burning, dispersants aircraft (they have six dedicated dispersant spray/ spotter aircraft) and emergency communications systems. Their primary operating areas include all 28 Captain of the Port zones (a USCG officer that deals with safety, security and marine environmental protection regulations) on the East, West and Gulf Coasts in the U.S., including Caribbean and Hawaiian islands.

• National Response Corporation (NRC — not to be confused with the National Response Center which also

36 BC Shipping News October 2013

goes by the acronym NRC) — NRC is the largest commercial OSRO in the U.S. and maintains stockpiles of spill equipment around the country. They provide coverage to more than 15,000 vessels, 2,000 barges and about 1,400 assorted facilities, refineries and pipelines. Formed in 1992, they have been involved in most of the major oil spill incidents in the U.S. Help when it’s needed The U.S. participates in a number of regional and bi-lateral agreements for co-operation in oil spill response, including with countries such as Canada, Japan, Mexico and Russia.

Mutual aid agreements are formal contracts to lend assistance across jurisdictional boundaries when required.

Specifically focusing on U.S.-Western Canada capabilities in the event of an oil spill, mutual aid agreements exist between the Western Canada Marine Response Corporation (WCMRC), Marine Spill Response Corporation, the Southeast Alaska Petroleum Resource Organization (SEAPRO), and several members of the Association of Petroleum Industry Co-operative Managers (APICOM), including Alaska Clean Seas, Alaska Chadux, SERVS and Clean Channel. The agreements provide for joint training, compatible equipment, common communication

frequencies, investigation, and purchase of new capital. In addition, WCMRC has adopted the same format when developing geographic response plans (GRPs) as has been developed by the Alaska and Washington State governments. This helps to ensure that responders in B.C., Alaska and Washington can read and understand each other’s plans.

Joint spill response between Canada and the U.S. has been in place since 1972 through the Joint Marine Pollution Contingency Plan (JCP). The plan — actually a treaty — is updated and revised as needed with the most recent update being in 2003. The implementation and maintenance of the JCP and its supporting geographic plans is the joint responsibility of the USCG and the Canadian Coast Guard.

Spills that occur in the contiguous waters between B.C. and Alaska fall under the JCP geographic plan known as the CANUSDIX (which addresses the Dixon Entrance); spills that occur in the waters of Juan de Fuca, Boundary Pass and Rosario Straits between B.C. and Washington State fall under the JCP geographic plan known as CANUSPAC. Both GRPs are exercised on a two-year cycle alternating host countries.

This past summer, BC Shipping News was invited along to monitor and experience joint training exercises off Port Angeles, Washington. About 50 participants, representing USCG, National Response Corporation, Western Canada Response Marine Corporation, Marine Spill Response Corporation, and others spent one week in both classroom and field exercises focused on site safety and characterization; response planning and techniques; shoreline recovery and geographic response plans; on-water recovery and SMART (Special Monitoring of Applied Response Technologies) monitoring; and regulations, insurance, and media. For the field exercise, teams were shuttled to various response vessels where they familiarized themselves with equipment, procedures and, perhaps most importantly, each other. The value of establishing personal relationships amongst all team members cannot be overstated.

Both MSRC and WCMRC are members of the Global Response Network (GRN),

WORLD SPILL RESPONSE a coalition of major oil spill response companies operating throughout the world. While not providing direct spill response resources, the mission of the GRN is to maximize the knowledge, expertise and preparedness that each spill response organization has individually and share that information with other GRN members.

In the case of the Deepwater Horizon spill in the Gulf of Mexico, the U.S. State Department listed 70 assistance offers from 23 countries — eventually, eight offers were accepted although the USCG actively requested skimming boats and equipment from several countries, including Canada. WCMRC sent 65 personnel (internal and contractors) and equipment to the Gulf to assist with efforts. Being able to participate in the rare circumstance (thankfully) of a real spill proved to be a valuable learning experience.

Another vehicle for international co-operation is the Pacific States/ British Columbia Oil Spill Task Force, consisting of senior executives from the environmental agencies with oil spill regulatory authority in Alaska, Washington, Oregon, California, Hawaii and B.C. The task force most recently released a working group review of the “Planning and Response Capabilities for a Marine Oil Spill on the U.S./Canadian Transboundary Areas of the Pacific Coast”. The review contained 11 recommendations for improvements with both

the CANUSDIX and CANUSPAC Joint Response Teams.

Conclusion As was the case when reviewing the Norwegian oil spill response regime, a direct comparison to assets, organizational structures and command systems is a bit like comparing apples to oranges.

The most apparent differences include the sheer number of participants within the U.S. organizational structure for spill response, including both commercial and not-for-profit organizations that compete for ‘business’. However, the leadership of both U.S. and Canadian Coast Guards is an over-riding similarity — both with the authority to take over the response effort should the Responsible Party not live up to its commitments. Both the U.S. and Canada have a ‘polluter pay’ policy.

While both countries require vessel response plans, tankers headed to the U.S. must ensure they are aware of and comply with individual state requirements (Canada’s requirements under Transport Canada are consistent throughout the country).

Additional differences highlighted here include the pre-designation of one person (the FOSC) to lead a unified command response, and the significant resources and assets available to respond to an emergency.

In our third part of this four-part series, we look at the response regime of the United Kingdom. BCSN

Spill speak... a guide to acronyms

Just a sampling...

OPA: Oil Pollution Act 1990 OSLTF: Oil Spill Liability Trust Fund VRP: Vessel Response Plan RP: Responsible Party FOSC: Federal On-Scene Co-ordinator ICP: Incident Command Post SOCS: State On-Scene Co-ordinator NRC: National Response Center NRC: National Response Corporation Environmental Services NRT: National Response Team RRT: Regional Response Team NSF: Coast Guard National Strike Force ERT: EPA Environmental Response Team SSC: Scientific Support Co-ordinator OSRO: Oil Spill Removal Organization NOAA: National Oceanic and Atmospheric Administration NCP: National Oil and Hazardous Substances Pollution Contingency Plan MPA: Marine Preservation Association GRN: Global Response Network JCP: Joint Marine Pollution Contingency Plan GRP: Geographic Response Plan APICOM: Association of Petroleum Industry Co-operative Managers NRS: National Response System SERVS: Ship Escort/Response Vessel System MSRC: Marine Spill Response Corporation WCMRC: Western Canada Marine Response Corporation SEAPRO: Southeast Alaska Petroleum Resource Organization

Burrard Cleaner No.9 takes part in Canada/U.S. joint training exercises in Port Angeles, Washington over the past summer.

Photo credit: Richard Lam

October 2013 BC Shipping News 37

As you train, so shall you respond...

The need for realistic and relevant onboard training

By John Lewis, FNI, CRSP, Principal Consultant, SeaFire Training Ltd.

N

o matter how sophisticated the navigational equipment; no matter how automated the engine room; no matter how computerized cargo operations are, none of these factors are of much help if the officers and crew are not proficient in responding to emergency situations.

The purpose of this short article is to address the lack of a comprehensive approach to emergencies; failure to provide realistic onboard training; and a general “can’t happen to me” attitude. These criticisms are, thankfully, not applicable to every vessel, but there are few, if any, who could not improve in some area, particularly firefighting, use of lifeboats, and chain of command.

Technical comments will be limited and general principles promoted instead.

Firefighting training: how many think “I’ve had this training, 20-plus years ago — what could have changed?”

Citing just three examples, there have been changes in methods of fire attack, use of hoses, and ventilation. How many vessels have Class K extinguishers for their deep fat fryers? Yet such equipment has been around for 20 years.

Vessel fires in Canada are increasing, from about 38 per year in the 1980s to about 55. B.C. has its share of small vessel fires — too many to list here — and they keep happening.

Comprehensive approach Let’s look at drills on a larger vessel.

For some strange reason, lifeboat drills and fire drills are seen as being separate. “Okay, Mate. We’ll have a fire in the galley and then we’ll have an abandon ship.” This supposes that if we fail to

38 BC Shipping News October 2013

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No matter how sophisticated the navigational equipment...none of these factors are of much help if the officers and crew are not proficient in responding to emergency situations.

contain the galley fire we will have to prepare the boats and afterwards abandon ship.

Real emergencies rarely follow such a neat progression. A drill is supposed to be a response to a simulated emergency, and should be run as such. There is no problem with singling out various tasks for specific training, but conversely, there is no merit in exercising unrealistically.

A common mistake is to assume that everyone will be available in an emergency. Consider a tug with a crew of three — Master, Engineer and Deckhand. Now consider an emergency such as Person in the Water — and remove one of the crew members, making him/her the victim. How well does the plan work now? For small crews, this is a major problem.

In the Galaxy fire, October 2002, Captain Dave Shoemaker found himself with fire on multiple decks, three crew members in the water, 20-foot seas and 30-knot winds — yet 23 of 26 survived. This is not ancient history or wartime. This is a recent incident of a fishing vessel off Alaska, and could happen anywhere.

What then is the problem and how do we address it? Even with reduced numbers on board, there are sufficient numbers to form a fire team, a backup team, a first aid party, and command.

A smaller crew can still have command, an emergency group, and a support group. The problem is that they should be organized to form one team providing a comprehensive response to an emergency.

For illustration, let us first imagine a representative vessel with Master, three Deck Officers, three Engineer Officers, Bosun, No. 1 Oiler, six Deck Ratings, three Engine Ratings and a Catering Department of four, giving a total of 23.

(Ferries have the additional problems of crowd control, but let’s set that aside for now.) The numbers are not so important as the concepts — see if you can apply the listed actions to your vessel. The sample station bill is as follows: • Command: Master, Chief Engineer (CE), Officer on Watch (OOW), one deck rating (helm), first Engine Room (ER) Officer and rating in Engine Room • Fire Team: Chief Officer (CO), second Engineers (2/E), Petty Officer (PO) and five ratings (three deck, two ER ) • First Aid: Catering Department • Back up Team: The remaining deck officer, one engineer, a PO, two deck ratings Initiation of response Upon the fire alarm sounding, the OOW shall (assuming a fire while at sea) call the Master, start the fire pump,

fire safety

Organization Command: For sake of simplicity, the Master is on the Bridge with the OOW and one rating; the CE is roving* to co-ordinate and one engineer is maintaining services assisted by one rating. (If there were still a Radio Officer, he/she would be manning communications. However, on most vessels, distress calls with latest position, may be sent by pressing one button, using Digital MSC.) *The Chief Engineer is not roving just to give him something to do. He is another set of eyes and ears for the Master and well-briefed to assume command of the emergency response should the Master be incapacitated.

Fire Team: The CO and 2/E are Team Leader and backup with the appropriate individual taking charge depending on the location of the fire — for example, if in the Engine Room, the 2/E is the leader; if on deck, the CO is in charge.

Assuming a minimum manning of two per hose line, each wearing fire suits and self-contained breathing apparatus (SCBA), then we have enough for two hose lines with one pair of backup — assuming also there is enough equipment. It is more likely that there will only be enough SCBA to equip four, namely one hose team with backup, or two hose teams with no backup. (This is a problem for vessels such as small ferries, with crews of seven.

However, knowing your vessel and acting defensively, may enable you to fight a fire with less people.) For example, if responding to an accommodation fire, the CO is in charge of the attack with the 2/E in charge of ventilation and support. It is scanty but manageable.

For an interior attack, they cannot use more people unless they have more SCBAs, fire suits and hoses.

First Aid Team: During the emergency, they have two immediate duties: 1) prepare to receive

Photo courtesy of Seafire Training Ltd.

and announce the location of the fire while sounding the general alarm and putting on a second steering motor.

All these actions should be planned in advance for all foreseeable situations, both at sea and in port, and written down as operational guidelines.

Using a hose for protection while attacking the fire with an extinguisher.

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As you train, so shall you respond. Realistic training equals ready response. However you say it, there is no room for “but we’ll do it differently if it is a real emergency”.

casualties, (two should be sufficient for this); and 2) ensure additional provisions are in the lifeboats. (This means realistic amounts; I once saw a steward bring two blankets for 17 people. After some coaching, he always brought two bundles for a total of 20 blankets.)

Backup Team: While all this other activity is taking place, the backup team swing out both boats, lowered to embarkation deck and ready to lower. It is simple to leave the toggle painters permanently rigged and connected to a wire pennant to prevent chafing, thus reducing the need for crew to carry the painter out in an emergency. Once the boats are ready, the backup team stands ready to assist the fire team.

NB: On some vessels, or for some situations, the Backup Team may be used for, say, controlling ventilation, while the First Aid Team prepares the boats. This is acceptable. The main point is that the boats are prepared concurrently with the firefighting response.

Vessels with less crew members may have sufficient numbers for only two teams — Response and Support.

However large or small the numbers, the concept is the same, even to vessels

whose crew may be counted on one hand.

What is the result of this effort?

The chain of command is intact with replacements ready if necessary; the Fire Team is working; the First Aid Team is standing by as is the Backup Team; the boats are provisioned and ready to go if required, and it has all taken only a few minutes. In line with the principle “better to be looking at it than looking for it”, all is ready. If the Fire Party is successful, everything is put back and teams will stand down. If an abandon ship is necessary, we may be able to return later, as has happened in many successfully fought ship fires, such as the Heythrop (1973).1 1 The Heythorp (an OBO) was tank cleaning when an explosion blew the hatches off #11 hold. The fire was extinguished, but re-ignited when the rolling of the vessel caused the foam blanket to break down through contact with hot metal. The vessel was abandoned when the fire spread to the accommodation. When other vessels arrived on scene, the Master and a small party reboarded and successfully extinguished the accommodation fire, while the hold fire burnt out. Twelve weeks after the incident, the Heythorp returned to service following replacement of the upper superstructure.

October 2013 BC Shipping News 39

fire safety

Photo courtesy of Seafire Training Ltd.

We cannot afford to wait and see. The first five minutes of any emergency are “The Golden Window of Opportunity’.

Smoke changes your orientation on board.

Skill Use of extinguishers, especially dry chemical, cartridge operated, (easily rechargeable.)

Deploying hoses and nozzles Use Breathing Apparatus Practise Search and Rescue Emergency Fire Pump and Emergency Generator

Damage Control Liferafts and EPIRBs Foam Equipment Rescue from confined spaces Table 1: Basic skills that can be practised on board.

40 BC Shipping News October 2013

Realistic Training As you train, so shall you respond. Realistic training equals ready response. However you say it, there is no room for “but we’ll do it differently if it is a real emergency”. I mentioned the steward carrying the token blankets — how many have observed a crew member who, at every drill, was given the task of holding the nozzle over the side or hosing down decks while the stream was “tested”? How often, during a false alarm or real emergency, has that crew member been found doing just what he always did, despite the fact that it had no relevance to the current situation?

Ships’ officers must share the task of training. If an individual has specific responsibilities in maintaining lifesaving or firefighting equipment let that individual instruct his/her colleagues in the correct use of that equipment, for example, starting the emergency generator. Why not have several crew members familiar with the task? This does not mean the ability to read the instructions and then attempt the task but rather have the competence and confidence of successfully performing the operation, unaided, within the last month.

Perhaps the most difficult onboard training is in firefighting. After all, boats may be lowered and used, and the advantages are obvious, but without the motivation of smoke and flame, onboard firefighting training may seem dull, unrealistic or even “silly” — all because a little imagination is necessary. Large scale simulations should be avoided until officers and crew show competence in the basic skills and a clear

Recommended Practice Discharge a percentage of those on board each month, thus combining maintenance and training.

Lay hose along decks, up and down interior and exterior stairs, into machinery spaces — identify specific tasks to be learned and practised. Practise the “buddy system.”

Use during Search and Rescue, in confined spaces.

Black out a lower alleyway for reduced visibility and practice using systematic searching techniques.

All should be capable of starting these. NB: The MAIN fire pump must be used in emergencies. Only use the emergency if the main fails, (but have the emergency pump running, just in case.)

Depending on the vessel and route, practise shoring, closing of w/t doors, etc.

Ensure all are familiar with the uses and operation of liferafts (discarded rafts may be obtained for display) and EPIRBs. Ensure personnel can rig and maneuver it easily.

Always rig for rescue before entering spaces, and use the opportunity to practise extrication.

fire safety you say it, there is no room for “but we’ll do it differently if it is a real emergency”.

understanding of concepts. It is astonishing how few seafarers fully understand the principles of ventilation as applied to firefighting on board (read “Ventilating fires aboard ships”, an article by John Abell, Safety at Sea, May 1994. At the time, this article was seen as ground-breaking. Even after all these years, the topic is still barely understood.)

What is even more astonishing is the benefit of 20 minutes per week of realistic and relevant training. This can include lectures, planned lessons with scenarios, safety videos, as well as practical skills training. Often, a planned discussion around the mess room table will accomplish more learning than a confusing drill where participants are unsure of the concept or their roles.

I performed a drill in a Fraser River tug recently. I started a smoke machine in the engine room while three crew members were inside. They knew what was happening, were prepared to evacuate when they first saw smoke, and were astonished at how difficult it was to find their way as the smoke filled the space so quickly. Even more concerning was that the Skipper did not see the smoke until after they evacuated — it wasn’t visible from outside. Most importantly, the drill participants looked at safety differently and were less complacent.

You must convey the sense of urgency needed for quick response and this is best done by a combination of case histories and applying situations to your vessel.

Some basic skills which may be practised on board can be found in Table 1 on the previous page. This list is only a sample, and is by no means exhaustive.

Pre-emergency planning Every vessel should have a list of potential emergencies — not just “fire” and “abandon ship” but other situations as well. Even the perennial “fire in the galley” may be practised with new insight — how to approach? To ventilate?

What if......? Other onboard emergencies include intruders, whether through piracy or petty thieves in port; hijacking; terrorism; bomb scares; bilging and flooding; oil spills; chemical releases; medical emergencies, etc. Some emergencies are specific to the vessel type or run, for example, flooding and damage control if on an ice-breaking vessel.

When the basic skills are being regularly demonstrated, it is time to “put the pieces together”. Then, and only then, may large scale drills be successfully practised. It is to the credit of many seafarers that they acquit themselves so well in many emergencies, but often, it is in spite of — not because of — their onboard training.

Finally, it is essential to coach junior officers in leadership skills. They should be encouraged to take an active part in onboard instruction as mentioned earlier. They should also be encouraged to follow the seafaring tradition of “understudy the next job up, while teaching your job to the next

Photo courtesy of Seafire Training Ltd.

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As you train, so shall you respond...However

Fire gear on board — is this it? in line”. In emergencies, promotion may be sudden and unexpected.

Command The scope of this article does not allow for full coverage of Command. Command training, with validated competencies, is an area where we need considerable improvement.

Clear, unambiguous language and orders; situation assessment and updates; transfer of command and other concepts must be understood and practised. This is being looked at through Simulator Training and Bridge Team management but command of emergencies is not given much attention.

However, that is a topic for another time.

Conclusion In closing, good, comprehensive onboard training is attainable, though not without effort. The principle of “little and often” will build to success. Any competent officer with the will to persevere and the support of Senior Officers, may accomplish an amazing amount in just a few months.

John Lewis is a safety and risk management consultant. He has taught marine firefighting for land-based firefighters to many departments in Canada, Ireland and the U.S. He is a Master Mariner, with a chemical tanker background, and managed the BC Fire & Safety Training Centre for 10 years (1987-1997). He is Chair of the IFSTA Marine Fire Fighting Committee (Fire Protection Publications, Oklahoma State University). John has worked for the U.S. Department of Justice, reviewing ship fire incidents and is a member of the National Working Group on Marine Chemical Emergency Response for the Canadian Coast Guard. He is also a member of the Pacific Regional Advisory Council on Oil Spill Response. He frequently makes presentations at industry and port seminars and conferences. He can be reached at seafire@shaw.ca.

October 2013 BC Shipping News 41

FIREBOATS New RAL-designed fireboats for Port of Long Beach

By Ernst Schneider, Robert Allan Ltd.

R

obert Allan Ltd. is proud to announce that it was selected to be the Owner’s Naval Architect for the design and construction of two new fireboats for the Port of Long Beach.

Custom designed for service in this critical and vital U.S. port, these nextgeneration, high-performance fireboats will be operated by the Long Beach Fire Department and will be amongst the largest and most capable fireboats in North America.

Robert Allan Ltd.’s design work began in 2011, with a series of kickoff meetings with the Port of Long Beach and the Long Beach Fire Department to establish the Statement of Requirements for the new vessels.

Functional requirements identified in this process included: • Firefighting of ships, boats and near shore structures • On-shore support, including shoreside supply of water • Water Rescue including vessel dewatering, towing and dive support • Medivac services and EMS / paramedic support • Harbor security patrol, including detection of hazardous agents • Disaster response, including a Command Information Center • Operation in contaminated (CBRN) areas, including vessel self-protection and decontamination facilities for personnel From there, a number of trade off studies were conducted and, through a series of design phases and reviews with the Port of Long Beach and the Long Beach Fire Department, plans and specifications were developed. The final design, issued for Shipbuilder bids, had the following characteristics: • Length overall — 108’ • Molded Breadth — 35’ • Navigational draft — 15’ • Air draft — 45’ • Tonnage — 300GRT The vessels are to have a maximum speed of 12 knots, a low wash (less than 12”) speed of eight knots and onsite endurance of five days. Control

42 BC Shipping News October 2013

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Custom designed for service in this critical and vital U.S. port, these next-generation, high-performance fireboats...will be amongst the largest and most capable in North America.

stations are located both forward and aft in the wheelhouse, with bi-directional operation and visibility of all working deck areas being a key feature.

Exceptional low-speed maneuvrability and stationkeeping are provided by the Voith Schneider propulsion system. Extensive CFD studies have been conducted to verify the performance parameters, as they are critical to operation of the vessel in this sensitive environment.

Propulsion power is being provided by a pair of Caterpillar 3512C Main Engines developing 2,012 bhp at 1,600 rpm, which are driving two Voith Schneider Propellers VSP 26GII/165 AE45. An additional two Caterpillar

3512C engines, and one Caterpillar C12 engine will team up with the drive engines to power the array of seven firefighting pumps, ranging in size from 2,000 GPM to 8,000 GPM with a total aggregate capacity of 41,000 GPM. The vessels will be equipped with ten monitors in total, the largest capable of delivering 12,000 GPM at a 600’ range. This monitor alone exceeds the requirements of a National Fire Protection Association (NFPA) Type II fireboat. In addition, there will be nine other monitors ranging from 1,500 to 6,000 GPM. Two of these monitors will be able to deliver 6,000 GPM of firefighting foam at a range of 500’. There

FIREBOATS are four hydrants with a capacity of 500 GPM in conjunction with the shoreside supply of up 22,000 GPM. The vessel will have a normal crew of four, with the ability to carry up to 12 supplementary firefighters with gear, or various support personnel such as SAR techs, EMS responders and dive teams.

In addition to developing the technical design drawings and specifications, Robert Allan Ltd. worked with the Port of Long Beach to assemble the complete bid package for the construction phase of the project.

On to the Shipyard: In September 2012, the Port of Long Beach issued its Notice Inviting Bids to Shipbuilders interested in building the new fireboats. Robert Allan Ltd. provided support to the Port during the bid phase by responding to technical questions from bidders.

In late 2012, the Port of Long Beach selected Foss Maritime Company to build the vessels at the Foss Seattle yard.

Construction of the first vessel is well underway, and Robert Allan Ltd. continues to support the Port of Long Beach by providing quality assurance for the project and onsite technical services at the shipyard.

Robert Allan Ltd. eagerly anticipates the day that these two new vessels will be on site, protecting the Port of Long Beach.

For more information on Robert Allan Ltd. fireboat designs, please visit www.ral.bc

Starboard profile (above) and top view (below) of the RALdesigned fireboats being constructed for the Port of Long Beach.

Marine Fire and Safety Training and Consulting • Safety and risk management • Safety audits • Offering courses in Marina and Small Craft Harbours Fire Fighting; Confined Spaces Entry and Rescue; Waterfront Hazmat; Initial Emergency Response to Incidents for Terminal and Port Operators; Spill Response; and Basic Fire Fighting

SeaFire Training Ltd John F. Lewis, FNI CRSP Tel: 604 951 0061 Cel: 604 318 0985 Email: seafire@shaw.ca

www.seafire.org October 2013 BC Shipping News 43

fire safety Fire prevention: firestop and sealing products

W

e’ve all seen the photos and some have even experienced the real thing: fires blazing out of control on oil rigs, cruise ships, ferries, container ships and the like.

A key question that is evoked by the image is ‘what could have been done to avoid this?’ While a well-trained crew and proper maintenance of firefighting equipment is critical, there are many components to a fire prevention plan that must be integrated throughout each construction, upgrade, refit or operational aspect of the vessel.

Take, for example, firestop and sealing products. Using bst — Brandschutztechnik products to demonstrate the type of fire stop systems available and how simple measures taken to protect cable and pipe systems, especially during the construction phase, can slow down or stop the spread of a fire.

Headquartered in Vienna, bst is a world-leading manufacturer of preventative fire protection and sealing techniques for cables, pipes and installation mains. Their products illustrate the culmination of over 30 years of experience and continuous product development in fire protection technology and additionally include protection against the elements, gas and water.

Multi-cable frame systems To protect against fire, gas and water transfer (fire, flood and explosion), cable transits in bulkhead and deck openings must be sealed completely. bst modular cable sealing systems are made from flexible, non-inflammable, halogen-free elastometric rubber (bst-HFE) and premanufactured angle steel, aluminum

Multi Cable Transits

or GRP frames. Frames are available in weld in and bolt in configurations depending on the penetration surface configuration. After the frame or “rigid structure” installation, cables are mechanically sealed by “Quick Fix Tolerance Cable Modules” in combination with anchor plates and wedge compression.

Flexibility for future cable installations is granted by module cores, filler blocks or multi filler blocks. Re-usable multi insert modules facilitate and accelerate the assembly.

Filler blocks and insert modules Also constructed from flexible, noninflammable, halogen-free elastometric rubber (bst-HFE), filler blocks are used as adjustment modules to fill up reserve space for later cable installations. Insert modules are used to seal cables of different diameters inside the bst frame systems. Both the filler blocks and insert modules simplify assembly and reduce manpower costs during the installation process. The halogen-free elastomeric rubber used is a vulcanized material highly resistant to ozone, aging and weather influences and is also swellingresistant to hot water, steam, oxidizing media, acids, basic liquids, polarized organic media, and hydraulic liquids.

The rubber compound does not contain any silicones or siliconeous chemicals, and will not support combustion, neither will any discard materials that are used in the construction or refit support combustion.

Wedge compression units Wedge compression units and anchor plates are used to compress and fix

Super Modular System

Plug Seals

A sample of the products from bst that can slow down or stop the spread of a fire.

44 BC Shipping News October 2013

modules inside frame systems to achieve pressure tightness of the bst Multi Cable Transits. One bolt tightens the entire system, providing for simple assembly at any position inside the frame.

Plug systems bst has designed a variety of plug seal types that can be in either multi or single cable sealing and can be adapted to each sealing situation. The seals provide for tightness against fire and the highest pressures of air, gas and water for cables already installed. Plugs and firestop solutions are also available for plastic pipes and provide a good option when penetrating bulkheads and decks when only a fire barrier is needed. This solution is commonly used in cruise ships and ferries where a significant weight reduction is realized by changing black and grey water piping from metal to plastic.

Cable Transit and plug systems are not new technology, and are in common worldwide use. What is important to remember is to carefully select a system that is not only safe, but sustainable and user friendly, competitively priced and fits with your vessel, and those people who work or live aboard.

When fire safety products, such as those described above are used, the ability to reduce or prevent the spread of onboard fires is greatly enhanced.

Given the ease of availability (check out more details at www.jastramtechnologies.com) and their competitive cost pricing, taking that extra step in a fire prevention plan that carries throughout all aspects of the vessel can save costs and, most importantly, save lives.

Intumescent Collar

legal affairs Marine Services International Ltd. v. Ryan Estate:

Supreme Court of Canada upholds workplace litigation bar

By Peter Swanson

Partner with Bernard LLP, Vancouver

O

n September 19, 2004 the fishing vessel, Ryan’s Commander, capsized, killing both Joseph and David Ryan who were returning from fishing off the coast of Newfoundland and Labrador. Following on the tragedy, the Ryan brothers’ widows and dependents (the “Estate”) sued a number of different parties including companies involved in the design and construction of the vessel (alleging negligence in the design and construction of the Ryan’s Commander) and the Government of Canada (alleging negligence in the inspection of the vessel by Transport Canada). At the time of suit, the Estate had applied for and received compensation under the Newfoundland and Labrador Workplace Health, Safety and Compensation Act (the “Workplace Act”) as the death of the Ryan brothers occurred in a workplace context.

The Workplace Act had a litigation bar which was designed to prevent employees from suing their employers, or other employers or workers, within the compensation system for work-related injuries or death.

Some of the Defendants applied to the Newfoundland Compensation Commission (comparable to Worksafe BC) in order to obtain a ruling that the Estate was prohibited by the litigation bar from carrying on with any lawsuits against employers or workers within the meaning of the Workplace Act. The Newfoundland Compensation Commission concluded that the litigation bar was valid and, therefore, the lawsuits could not properly proceed.

The Estate appealed the decision of the Newfoundland Compensation Commission to the Supreme Court of

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Specifically, it was argued that the provincial litigation bar restricted the scope of the right to sue granted under section 6(2) of the Marine Liability Act

Newfoundland and Labrador arguing, essentially, that the litigation bar, as found in the Worksafe Act (provincial legislation), was unconstitutional because the provincial legislatures do not have the jurisdiction to make laws in relation to “navigation and shipping”.

Rather, it is Federal Parliament that has exclusive jurisdiction to make laws in relation to “navigation and shipping” and that Federal Parliament had done so in the context of marine negligence claims expressly in the Marine Liability Act. Specifically, it was argued that the provincial litigation bar restricted the scope of the right to sue granted under section 6(2) of the Marine Liability Act and was therefore unconstitutional.

Section 6(2) of the Marine Liability Act is fairly straight forward and reads as follows: Damages for death 6 (2) If a person dies by the fault or neglect of another under circumstances that would have entitled the person, if not deceased, to recover damages, the dependants of the deceased person may maintain an action in a court of competent jurisdiction for their loss resulting from the death against the person from whom the deceased person would have been entitled to recover.

The first judge hearing the case concluded that the Newfoundland Compensation Commission was wrong, holding that the determination of

liability and the creation of a right of suit in a marine context falls within exclusive federal jurisdiction under “navigation and shipping” as set out in Canada’s Constitution. The judge went on to observe that the provision of the Marine Liability Act (specifically section 6(2) quoted above) is a core feature of that federal constitutional power. The judge therefore concluded that the litigation bar, as found in the Workplace Act, had to be read down so that it would not bar the action of the Estate.

In other words, the litigation bar did not apply to prevent the Estate from suing the designer and others involved in the construction and inspection of the vessel even though they were employers within the system created by the Workplace Act. The decision of the single judge was appealed to the Supreme Court of Newfoundland and Labrador — Court of Appeal. Three judges heard the appeal. The majority of the Court of Appeal upheld the judge’s decision concluding that the litigation bar could not apply to a core element of the federal power over navigation and shipping and if allowed to prevent the Estate from pursuing their claims, would impair the core of that federal power. The Court of Appeal affirmed that the constitutional doctrine of inter-jurisdictional immunity applied, in this case to limit the application of provincial laws. The October 2013 BC Shipping News 45

legal affairs Court of Appeal also held that the doctrine of paramountcy applied. This is the constitutional principle whereby a valid federal law will prevail in the event of conflict with an otherwise valid provincial law.

While the majority of the Court of Appeal upheld the decision to allow the lawsuits of the Estate to proceed, there was a strong dissenting judgment whereby one of the Court of Appeal judges concluded that the two key constitutional principles applied by the majority (inter-jurisdictional immunity and paramountcy) did not apply in the context of the Workplace Act such that the litigation bar should be upheld and the suits of the Estate should not be allowed to proceed. The Minority judgment expressed concern about the impact such a decision would have on the no-fault workplace compensation system that was in place in Newfoundland and Labrador and virtually every other Province and Territory in the country.

The Defendants in the lawsuit sought leave to appeal to the Supreme Court of Canada. The Supreme Court of Canada does not hear all cases where a party wants to appeal. Rather, the Court generally only hears cases that raise issues of public importance. It seems fairly clear the Supreme Court of Canada recognized the potential impact of the Court of Appeal decision on workplace legislation across the country.

Leave to appeal was therefore granted.

The Supreme Court of Canada heard argument on the merits of the appeal on January 15, 2013 and reserved judgment, issuing its decision on August 2, 2013. In addition to the

parties to the suit, a number of other entities intervened in the case, including the Attorney General of British Columbia and the Workers’ Compensation Board of British Columbia.

Not entirely surprising to maritime law practitioners, the Supreme Court of Canada overturned the Court of Appeal decision, reaffirming the decision of the Newfoundland Compensation Commission to uphold the litigation bar.

Critical to the Supreme Court of Canada’s decision is the recognition of the importance that Worksafe compensation regimes play in each and every province in this country. The Court, no doubt, was concerned about the fragmentation of workers’ compensation systems if the provisions of the Marine Liability Act were upheld as being intended to regulate relations between employers and employees in a maritime workplace context. Central to the Supreme Court of Canada’s decision was their realignment of the doctrine of inter-jurisdictional immunity as applied in the maritime negligence law case of Ordon Estate v. Grail. In that case, the Supreme Court of Canada expressed, in very broad terms, the scope of Federal Parliament’s power to legislate in relation to “navigation and shipping”, including the power to enact laws regulating negligent conduct in a marine context. While reiterating the broad nature of Parliament’s power to enact laws in respect of “navigation and shipping” and negligent conduct in a marine context, the Court noted that when Ordon Estate was decided, the doctrine of inter-jurisdictional immunity was more broadly construed — the provincial law in question only had to “affect”

The general arrangement of the Ryan’s Commander and the vessel, before and after capsizing. Negligence was alleged in the design and construction and a number of parties were sued as a result of its capsizing.

46 BC Shipping News October 2013

legal affairs the core of the federal power in order for the doctrine to be applied. Since Ordon Estate, however, the doctrine of interjurisdictional immunity was refined so that, for a provincial law to be found to be inapplicable, it would have to do more than “affect” the core of the federal power, it would have to “impair” the core of the federal power. This change in constitutional law, the Court held, had to be taken into account.

While accepting that maritime negligence law is at the core of the federal power over “navigation and shipping”, the Court concluded that allowing the Workplace Act litigation bar to stand would not impair the exercise of the federal power over “navigation and shipping”. In coming to this conclusion, the Supreme Court of Canada recognized that allowing the litigation bar to stand would not alter the uniformity of Canadian maritime law across the country since every province has a similar bar in similar workplace-type legislation. Moreover, the litigation bar would not restrict Parliament’s ability to determine who may possess a cause of action under the Marine Liability Act. Specifically the Court said: [62] Although s. 44 of the WHSCA [the Workplace Act] has the effect of regulating a maritime negligence law issue, it neither alters the uniformity of Canadian maritime law nor restricts Parliament’s ability to determine who may possess a cause of action under the MLA. Despite their inability to initiate the maritime negligence action provided for by s. 6(2) of the MLA, parties in the position of the Ryan Estate still receive compensation for the accident in question (albeit through a different mechanism and from a different source).

The Supreme Court of Canada went on to conclude that the doctrine of paramountcy is similarly not properly invoked in this case as there is no true conflict between the federal and provincial laws in issue. The Court observed that conflict in a constitutional sense means more than just a different outcome. The Court said: “The validity of the two legislative enactments relevant in this appeal is not disputed. At issue is whether they are inconsistent. Inconsistency can

arise from two different forms of conflict between the federal and provincial legislation:…The first is described by Dickson J. in Multiple Access Ltd., at p.

191, where he stated: In principle, there would seem to be no good reasons to speak of paramountcy and preclusion except where there is actual conflict in operation as where one enactment says “yes” and the other says “no”; “the same citizens are being told to do inconsistent things”; compliance with one is defiance of the other.

Where the federal statute says “yes” and the provincial statute says “no”, or vice versa, compliance with one statute means a violation of the other statute. It is the archetypical operational conflict.

[69] The second form of conflict is when the provincial law frustrates the purpose of the federal law…”

The Court concluded that neither type of conflict existed in this instance so the doctrine of paramountcy did not apply.

In the result, the Supreme Court of Canada upheld the litigation bar in the Workplace Act resulting in the Estate being prevented from suing employers or workers within the compensation system. Importantly, the Court continued to make a clear distinction between the compensatory system created by laws such as the Workplace Act and the regulatory system that imposes occupational health and safety

elements. Specifically the Court noted the following: Provincial workers’ compensation schemes generally cover persons employed in the relevant province, even if a workplace accident occurs outside of the province: Workmen’s Compensation Board v. Canadian Pacific Railway Co., [1920] A.C. 184 (P.C.) (“Canadian Pacific Railway”).

The compensatory elements of these schemes apply to federal undertakings operating within the province, but the occupational health and safety elements do not…

This appears to be a recognition that while the compensatory element of such workplace laws will apply in a federal context, the laws imposing health and safety standards will not. No doubt this distinction will likely be the subject of future constitutional litigation.

Marine Services International Ltd. v.

Ryan Estate is an important constitutional case in the field of maritime law. It will be interesting to see to what extent provincial governments and their agencies seek to broaden their regulation of the maritime industry.

Peter Swanson is a partner with Bernard LLP. His practice includes maritime cases relating to the carriage of goods, marine insurance, collision, salvage, ship source pollution, charter party disputes, immigration, regulatory issues and commercial matters. Peter can be reached at Swanson@bernardllp.ca

October 2013 BC Shipping News 47

MERCY SHIPS

Africa Mercy blazes through her first five years as charity hospital ship

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By JoJo Beattie, Mercy Ships Canada

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uilt in 1980, the Danish rail ferry Dronning Ingrid transported cargo and passengers across the Baltic Sea connecting Danish islands Zealand and Funen. In 1999, a road was built connecting the islands and this great ship ceased to have a purpose. Instead of becoming scrap metal, Dronning Ingrid received reconstructive surgery and in 2007 was transformed into the Africa Mercy, the world’s largest charity hospital ship. The onceDronning Ingrid left the safe waters of the English shipyards to brave the Atlantic Ocean on her way to Liberia, West Africa. Her new mission? To carry 420 volunteer crew and all the equipment needed to deliver hope and healing to West Africa.

This year marks five years since Africa Mercy entered service in June 2007. She is the first of a new class of Mercy Ships, built around the Oak Foundation Hospital. To carry out her mission of delivering free medical care and capacity-building programs, the floating hospital is equipped with six state-of-the-art operating rooms, two intensive care units and ward space for 78 patients. The 152-metre, 16,572GRT vessel has a berth capacity for 484 individuals. More than 1,200 volunteers from some 40 nations serve each

This Mercy Ship has been responsible for impacting over two million direct and indirect beneficiaries and has delivered in excess of $250 million in services and tangible assistance.

year to fulfill all aspects of running the vessel, the hospital and all the programs on and off the ship.

Africa Mercy has served the nations of Benin, Guinea, Liberia, Sierra Leone, South Africa, and Togo since deployment. She is in field service approximately 10 months a year, not including a supplementary six-month shipyard project in South Africa. This Mercy Ship has been responsible for impacting over two million direct and indirect beneficiaries and has delivered in excess of $250 million in services and tangible assistance.

Of the 420 volunteers on board the ship, many being Canadian, the Africa Mercy relies on their dedication and hard work to change thousands of lives.

Chris McCaffrey, an electrician from Comox, B.C., has spent 15 months on board the Africa Mercy serving in Sierra Leone, Guinea and is soon to be on his way to the Republic of the Congo.

McCaffrey is an example of how one does not need to work in a medical

capacity to help transform the lives of patients. McCaffrey says: “George [a patient] came to the hospital with a dislocated hip from birth. I was able to build traction for him where we hung dive weights from his feet for a few weeks in an effort to pull his hip back into joint before he received surgery.”

Volunteers work creatively together, using what is available to them to help contribute in any way possible.

The technical crew members are vital to the daily operations on board.

Although in good shape, the 30-yearold vessel is not without her faults.

When asked what challenges crew faced on board the Africa Mercy, McCaffrey says: “The ship was refitted in England to become a hospital in 2007. In 2010, the ship was refitted in Durban, South Africa with four new 1000kw Generators. It has taken awhile to get all the bugs worked out of the new control system. Mixing old technology with new technology has its challenges, and for some reason the surgeons

Left: Mackenzie Mosley surrounded by kids who have benefitted from Mercy Ships care; right: Chris McCaffrey, from Comox, B.C., has spent 15 months on board the Africa Mercy providing non-medical assistance.

48 BC Shipping News October 2013

MERCY SHIPS do not really like it when the lights go out while they’re doing surgery!”

While Africa Mercy is in port, a variety of activities take place in various venues on shore as part of the overall field service for a nation, based on assessment and close cooperation with the host government and other partners.

Programs include dental treatments and hygiene, primary health training at the community level, agricultural training to support better health, nutrition and sustainable development, and mental health training to address a key need, especially in post-conflict societies.

Mackenzie Moseley, from Victoria, B.C., volunteered on board the Africa Mercy for six weeks in October and November 2012 as Second Officer. He was in charge of maintenance and inspection of Life Saving Appliances on board. Moseley has an extensive history working on board commercial vessels. As a Captain for the Canadian Coast Guard, currently assigned to the CCGS Kitimat II, Moseley used his experience and skillsets to volunteer and see as much as he could.

Moseley says, “While maintaining the Life Saving Gear was not that challenging, it gave me free time to be in operating rooms, and witness surgeries that in Canada I would not be privy to; as well as see patients in dental and eye clinics with conditions you only (sometimes) read about in text books. I had spent some previous time in Haiti working on a reefer ship and was looking forward to again doing some volunteer work and trying to leave the world in a better state. It balances you, and makes you realize how good we have things in Canada, just based on where we were lucky enough to be born.”

An important element of the Mercy Ships’ Long Term Strategy is to engage in infrastructure projects that increase access to health care for a nation. This can range from additions or renovations to new construction. Projects occur before, during, and after the time the Africa Mercy has been in port. These help leverage the ship’s presence, protocol, and partner relationships to leave behind tangible improvements to national health and health care delivery.

Some of the free services provided through the Africa Mercy include transformational surgeries that reduce the effects of neglected trauma, disease and congenital conditions, dental care, eye care and training programs to build the capacity of local professionals.

Dr. Gary Parker is a maxillofacial surgeon who serves as Chief Medical Officer on the Africa Mercy. He has lived and served on a Mercy Ship for over 26 years where he raised his family while tirelessly taking on some of the most extreme cases imaginable. He has had to develop innovative approaches to the devastating and life-threatening disfigurements that only occur under conditions of extreme poverty.

Those with severe facial deformities are treated as outcasts, and live at the margins of society. They require long, complex, and often multiple surgeries. Each life restored becomes a witness of hope to the larger community as the individual re-enters society.

A young man named Thierno is one such story. He came to the Africa Mercy in Conakry in November 2012 with a benign tumor that, in five years, had grown to the point of starving and suffocating him. His years of physical and mental

The Africa Mercy, formerly the Dronning-Ingrid. suffering were such that he declared, “Please, take the tumor or take my life.” After recovery from a complex nine-hour surgery he went home to a grateful family and a changed life.

Africa Mercy arrived, for her first time ever, in the Congo in August where she had her largest patient selection day in 20 years in Pointe Noire. More than 7,350 people lined up in the early morning on August 28 with medical professionals selecting 1,326 individuals to be seen by a surgeon during the ship’s 10-month stay. Mercy Ships plans to provide more than 3,300 surgeries on board the ship and treat another 20,000 people at land-based clinics during their stay in Congo-Brazzaville.

The Africa Mercy has been, and continues to be, a controlled and safe environment ideally suited for serving patients and crew. As more than 75 per cent of the world’s population lives within 100 miles of a port city, the once-Dronning Ingrid now transports people and vital cargo in service of a different kind — changing the world one nation, one community, and one life at a time.

For more information about Mercy Ships Canada, visit www.mercyships.ca.

October 2013 BC Shipping News 49

SAFETY training

SailSafe showing impressive results

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istrust, friction, publicly fighting safety-related issues… these are just some of the words that have been used to describe BC Ferries’ labour relations in 2006.

Add in the fatal and high-profile incident of the Queen of the North and another non-fatal, yet equally serious, incident in January 2007 on board the Quinsam and you can imagine the desire and motivation to bring in sweeping change.

The Morfitt Report — “A Review of Operational Safety at British Columbia Ferry Services Inc.” — which was released in January 2007, produced about three dozen recommendations to BC Ferries to address all aspects of operations — from the Safety Management System (SMS), to Bridge Resource Management, crowd management and control, as well as crewing, training and emergency drills.

The report summary concluded that “the company was operating a safe coastal ferry transportation system.

The company directors, management and staff are highly committed to operational safety, both for the travelling public and for BC Ferries personnel.

50 BC Shipping News October 2013

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Photo courtesy BC Ferries

...with six years of measurable data...the SailSafe program is being credited with so much more than that of changing the organization’s safety culture.

Nevertheless, there are a number of areas identified in this report where safety and related administrative processes and procedures should be strengthened.”

New to the position of Chief Operating Officer but not unaware of the challenges raised in the Morfitt Report, Mike Corrigan realized a wholesale shift in the company’s safety culture was needed. The answer came in the form of SailSafe, a comprehensive, multi-year initiative focused on — as the name implies — sailing safely. Now, with six years of measurable data that show impressive results in all areas of performance within BC Ferries (e.g., employee injuries and absences are down, fleet on-time performance is up as is overall customer satisfaction), the SailSafe program is being credited with so much more than that of changing the organization’s safety culture.

What is SailSafe?

SailSafe is a multi-year project designed to engage the workforce, revitalize the current Safety Management System (SMS) and integrate occupational health and safety. It is based on programs successfully developed and implemented by WrightWay Training (U.K.) and FORCE Technologies (Denmark). The two companies had seen positive results following implementation of programs for ferry companies (for example, Caledonian MacBrayne, T-T Line and InterIslander), shipping companies (for example, AP Moller-Maersk), oil companies (for example, Conoco-Phillips, BHP, Shell) and others (for example, British Nuclear Energy). To develop a tailor-made solution for BC Ferries, the two companies joined their teams to form “WrightForce”. The two risk areas that required immediate focus were on ship-to-shore interface (i.e., loading

Three phases of implementation Starting in the fall of 2007, more than 500 BC Ferries employees participated in workshops and generated more than 4,500 learning opportunities — or gold dust. Gold dust was also collected by WrightForce team members as they travelled the fleet as well as by submissions made through the SailSafe website.

In January 2008, the 4,500 learning opportunities were sifted by a “SafeWatch” team (a cross-functional team of BC Ferries employees, both union and management, from operational areas such as engineering, trades, deck, safety, security, environment, crewing and human resources, terminals, catering, etc.) to form a comprehensive action-plan proposal around four pillars: • Safety of our People • Safety of our Assets • Safety through Procedures • Safety through Communication Each pillar contained a group of challenges and action plans with “SMARTT”

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An integral part of SailSafe is the recognition that employees are crucial to success because nobody understands the job better than the people who are doing it. budget, to more major, wholesale changes of procedures.

One example of a very successful action plan was the All Learning Events Reported Today (ALERT) Handbook.

The recommendation was made to facilitate employee reporting of near miss or unsafe acts (learning events), as well as follow-up actions and improvements. The handbook enabled quick and easy reporting of safety observations, learning events, near misses, unsafe acts and unsafe conditions, together with immediate actions(s) taken and ideas on how to prevent recurrence. Generated by employees, ALERTs (over 4,300 have been submitted since the start) have resulted in numerous corrections to procedures and boasts an over 90 per cent resolve rate.

solutions (Specific, Measurable, Attainable, Realistic, Trackable and Timely). Through the process, five areas of recommendations were identified which became the basis of Phase I actions: • Company safety procedures • Fleet regulations, and terminal and vessel-specific standard operating procedures • Risk assessment procedures • Safety procedures at every worksite • Site joint safety and health committees Over the next two years, over 40 action plans were implemented. Leaders were assigned to ensure resources were allocated to solutions and timelines were put in place for completion.

Action plans ranged from relatively minor fixes which required very little Photos courtesy of BC Ferries

and discharge) and bridge operations.

“In 2007, we brought in the leads from WrightForce — John Wright and Peter Sorenson — to meet with union representatives and management,” said Captain Jamie Marshall, Vice President, Fleet Operations. “Even with poor labour relations at that time, the WrightForce team brought us to a starting point where both sides agreed that employee safety was a key priority and should be the first focus of any new initiative.”

That first discussion led to a tripartite agreement that was developed between WrightForce, BC Ferry & Marine Workers Union, and BC Ferry Services Inc., and work began in earnest to address recommendations from the Morfitt Report and to bring about change in BC Ferries’ safety culture.

An integral part of SailSafe is the recognition that employees are crucial to success because nobody understands the job better than the people who are doing it. All employees play a part in identifying areas and methods for enhancing current safety practices, and ensuring that safety is put first each and every day.

SAFETY training

The SailSafe program has been incorporated into every aspect of fleet and terminal operations with great results being shown across the board.

October 2013 BC Shipping News 51

SAFETY TRAINING defined safety implementation “program” to a normal part of daily business and an ongoing commitment to safety excellence...

“Most can be resolved at the local level,” said Marshall. “but there are some that lead to multi-million dollar fixes — for example, during the Northern Expedition’s first winter operating out of Prince Rupert, an ALERT noted that the vessel’s stern tie-up arrangement needed improvement during extreme wind conditions. That led to an Initial Assessment Report which led to a multi-pronged solution, including specific crew training and awareness, improved vessel lines, reworked procedures, and an engineering solution which was to build an additional tie-up dolphin — it was a $1.6 million fix which required approval by the president. This ensured the vessel could remain safely secured in all extreme weather conditions.”

Phase II of SailSafe started in January 2010 and continued to implement the second half of the action plans developed in Phase I. Actions continued to be focused around the continual improvement of safety performance and culminated in the development of the SailSafe Ambassador Team — about

52 BC Shipping News October 2013

400 employees who acted as liaisons, disseminating SailSafe information, answering questions for employees, and collecting and reporting on safety suggestions.

Now in its sixth year and third and final Phase, SailSafe is starting to show some pretty impressive results.

Phase III, which began in April 2012, marked the formal shift from a defined safety implementation “program” to a normal part of daily business and an ongoing commitment to safety excellence that is fully integrated into daily work. “This is the point at which safety becomes part of our culture — one of the features of a world-class safety organization,” said Marshall.

Phase III saw the creation of the SailSafe Advisory Council made up of five teams that focused on: • Building and maintaining awareness of SailSafe and of safety in general at BC Ferries through effective communications.

• Building a more complete understanding and adoption of the ALERT process.

Photo courtesy BC Ferries

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Phase III, which began in April 2012, marked the formal shift from a

Captain Jamie Marshall, Vice President, Fleet Operations, co-chairs the Phase III SailSafe Advisory Council along with Michael McNevin, President, Ships Officer Component, BC Ferry & Marine Workers’ Union.

• Clarifying and supporting the central role played by the Safety Committee.

• Ensuring effective and sustainable team building, including engaging more employees in Town Hall Sessions and health and wellness initiatives.

• Monitoring of Phase I and II action plan items to ensure that their goals and outcomes are sustained and, if appropriate, expanded.

“Phase III is a sustainment strategy,” notes Marshall. “It’s the continuous pursuit of safety so that it becomes ingrained in the fabric of the company.

Safety is now the first thing on agendas at meetings. Our whole safety management system has changed to provide for a focus based on everything we’ve learned throughout the SailSafe program.”

Having said that, additional programs — such as SproutAtWork (an online networking program that encourages employees to team up on health and exercise initiatives) — are continually being identified, tested and assessed for potential implementation. “The benefits of a program like SproutAtWork boost employee wellbeing and greater productivity,” said Marshall. “The Health and Wellness Committee tested it out and really liked

it and we are looking at potentially introducing this for all crew and staff.”

Results While safety-related statistics show a marked improvement since the beginning of SailSafe, ancillary measurables — fleet reliability, fleet on-time performance, fuel consumption, customer satisfaction — have shown marked improvement as well: Fleet on-time performance has risen from 85.2 per cent in 2004 to its current 92.3 per cent. Fleet reliability has risen from 99.14 per cent to 99.75 per cent over the same timeframe while fuel consumption has dropped five per cent. But the most striking statistics can be seen in employee safety and absenteeism. Employee time loss due to injuries has improved by a remarkable 52 per cent (from 365 incidents to 175) and employee absenteeism for illness or other paid leave has dropped from 379,238 hours to 242,265 (a 36.1 per cent decrease).

As a result of these numbers, WorkSafe BC is now undertaking an audit of BC Ferries to determine eligibility for a Certificate of Recognition: “The certificate will drive down our costs on WorkSafe premiums by $300,000 to $400,000 per year,” said Marshall who also highlighted two additional initiatives that were borne out of SailSafe as proof that the program is working: The SEA program (Standardized Education and Assessment) and BOSS (Bridge Operations Skills and Systems) are providing new ways to ensure that each employee has the proper education and training to be able to perform at high levels of competency.

“The SEA program is a six-year project and, by the time it’s complete, will be incorporated throughout the entire organization and each job,” Marshall continued. “Instead of traditional job shadowing, SEA standardizes training so that a level of competency is set and employees meet that level through practical and written exams with final sign-offs throughout the entire training process.” So far, SEA has been applied to 16 of 30 positions.

The BOSS program is made up of three levels: • BOSS 1 focused on communications, bridge rules and responsibilities, and bridge status red/green.

• BOSS 2 is focused on situational awareness.

• BOSS 3, under development this year with the expectation that it will be released next year, will focus on bridge/ engine room communications and will have bridge and engine room teams trained together.

Conclusion When BC Ferries began the implementation process of SailSafe, they were told that it would take seven to 10 years to see results. Based on a review of performance numbers to date, noting that 2013 marks the sixth year since inception, the program is proving to be even more successful than first imagined. Captain Marshall summed it up nicely by saying: “We are observing the results of a process which is still being implemented. In some ways, it will never be over. Will the safety performance, on-time performance and cost savings at BC Ferries continue to improve? One could easily argue that they will. Will the safety culture continue to improve? I truly believe so.”

Located at Vancouver Waterfront and Roberts Bank

www.flyingangel.ca October 2013 BC Shipping News 53

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