ILWU Local 508 on Vancouver Island received a historic mandate from its membership to transition from its current manual based legacy dispatch platform to an electronic dispatch platform. Local 508 will be the first ILWU out port Local in BC and the first in North America to transition to a fully scalable electronic dispatch platform. The BC Maritime Employers Association, ILWU Canada and Local 508 will meet to discuss next steps as they move into the development phase for the new electronic dispatch platform.
LNG Canada gas link pipeline approved
TransCanada's 670 km long, 48” diameter, Coastal GasLink pipeline to deliver shale feed-gas to the Shell's proposed Canada LNG terminal in Kitimat has been approved by the BC Government with 32 conditions related to construction best practices. If built, the pipeline will run from Groundbirch area near Dawson Creek to the export terminal with an initial capacity of 2-3 billion cubic feet of LNG per day. Shell has a 50% stake in LNG Canada, PetroChina has 20% leaving Mitsubishi Corp and Korea Gas Corp with 15% each.
BG Group announces "pause" on Prince Rupert LNG project
BG Group this week announced a lenghty pause in development of their LNG export project in Prince Rupert. The company referenced shifting market conditions including a flood of LNG expected to hit global markets, especially from the U.S. where BG already has firm agreements to market gas from two LNG facilities. Just last week the company reported a worse-than-expected 26% fall in third-quarter operating profit, mainly due to a decline in production in Egypt and the steep drop in oil prices which have also dragged down the price of LNG.
It was also announced this week that First Nations groups are receiving federal funding to participate in permitting processes for LNG projects. The Environmental Assessment Agency has provided $200,000 in funding to eight First Nations groups involved in the LNG Canada project being developed by Royal Dutch Shell and three Asian partners at Bish Cove, Kitimat.
SMIT to rebrand
SMIT Marine Canada Inc. and it subsidiaries has announced a rebranding. As of July 1st the company became part of Saam Smit Towage, a joint operation between Boskalis B.V. of the Netherlands and Saam S.A. of Chile a cooperation which spans Canada, Mexico, Panama and Brazil. The aim of Saam Smit Towage will be to remain a major player in its existing markets and expand into Central America and the Caribbean. Notwithstanding this new Joint Venture, the link with Boskalis remains unchanged.
Unifor threatens Seaway strike
Kellie Leitch, Minister of Labour expressed disappointment this week over the decision by Unifor to serve 72 hours strike notice to take effect at 12:15pm today eastern time. Unifor has five locals and 460 members along the waterway and all have given the 72 hours strike notice. The Seaway has been retrofitting locks to operate automatically resulting in manpower reductions whereas Unifor is arguing that some staff should be kept at the locks to respond to emergencies. Three collective agreements expired on March 31, 2014.
Financing of Arctic patrol ships questioned
Canada’s parliamentary budget watchdog claimed this week that the C$2.8 billion allocated to build six to eight Arctic patrol ships at Irving Shipbuilding is well below the level of funding needed. Rather, the watchdog believes that the funding will deliver only three or four ships. The government immediately rejected the analysis. Deliveries are to be spread over seven years beginning in 2017.
RCN to commemorate the Battle of Coronel
Tomorrow the Royal Canadian Navy (RCN) will mark the Battle of Coronel that took place on November 1, 1914 off the coast of central Chile near the city of Coronel and resulted in the first ever casualties in the history of the RCN. Four RCN midshipmen who joined the armoured cruiser HMS Good Hope in the Royal Navy's West Indies Squadron, that was outmatched while waiting for reinforcements and sunk with all hands on-board. The midshipmen lost were from the first class to graduate from the Royal Naval College of Canada established in 1911. Tomorrow all personnel serving RCN will salute the following:
Midshipman Malcolm Cann, 19, of Yarmouth, Nova Scotia;
Midshipman John V. W. Hatheway, 19, of Fredericton, New Brunswick;
Midshipman William Archibald Palmer, 20, of Halifax, Nova Scotia; and
Midshipman Arthur Wiltshire Silver, 20, of Halifax, Nova Scotia.
TFN announces three new projects underway
Tsawwassen First Nation (TFN) and TFN Economic Development Corporation (TEDC) announced agreements for three major projects on the initial 70 acres of their serviced industrial lands known as Tsawwassen Gateway Logistics Centre. The three developments include a large warehouse facility, a container examination centre, and a cardlock truck fueling facility.
The largest project in the Tsawwassen Gateway Logistics Park is GWL Realty Advisors Inc. on behalf of Healthcare of Ontario Pension Plan Realty to develop 57 acres with up to 1.2 million sq. ft. of warehouse facilities. The target opening date is mid-2016.
Construction of the long-awaited container examination facility to be located on 11.4 acres of the TFN Industrial Lands near the Deltaport container terminal started earlier this year. Canada Border Services Agency expects to begin operations at the new facility in late 2016.
The third project is Chevron's commercial truck fueling station strategically located on a one acre site. The facility will service trucks en route to the Roberts Bank port terminals. The target opening date is late 2014 or early 2015.
Nanaimo Port Authority releases economic impact study
The Nanaimo Port Authority (NPA) has released its latest economic impact study based on current operations. InterVISTAS estimates that the annual direct impact of operations at the Port of Nanaimo is $185 million in wages, 2,900 person years, $290 million in GDP, and $665 million in economic output. President of the NPA, Bernie Dumas, further notes that the port community contributes an estimated $76 million in tax dollars. To read more visith the Nanaimo Port Authority's new website at www.npa.ca.
CBSA releases new video on border modernization
Canada Border Services Agency has released a new video on how new technology will assist in improving border management. This goes in hand with recent announcement on commercial modernization and upcoming consultations on the development of new multi-modal process maps. The video can be found on YouTube at: https://www.youtube.com/watch?v=mhinyWcBGq4.
Nisga’a Nation to involve in LNG economy
Following talks between the provincial government and the Nisga'a Nation, two pieces of legislation have been tabled to enable the Nisga’a Nation to become a major participant in the emerging liquefied natural gas economy in northern British Columbia.
Bill 7 - the Nisga’a Final Agreement Amendment Act, if passed, will establish the Nisga’a Nation as the primary property taxation authority over Nisga’a Lands and allow the Nisga’a Lisims Government to levy and collect property tax from persons other than Nisga’a citizens, including companies that operate industrial installations, such as LNG pipelines and midstream infrastructure.
Bill 8 - the Protected Areas of British Columbia Amendment Act (No. 2), 2014, if passed and brought into force by regulation, will confirm the removal of 63.5 hectares of land from Nisga’a Memorial Lava Bed Park. This will assist Prince Rupert Gas Transmission’s (PRGT) proposed 900-kilometre pipeline project to move forward if all regulatory approvals are received.
Transport Canada issues Ebola update
Lazaro Cardenas pushing as alternative to LA/LB
Kansas City Southern Railway (KCS) is aggressively courting ocean carriers and beneficial cargo owners to Mexico’s Lazaro Cardenas as an alterantive to the continuing severe congestion in Los Angeles-Long Beach. Using Lazaro Cardenas to service the Gulf region adds two days steaming time compared to shipping through LA/LB but the overall cost is claimed to be considerably cheaper and time to end destination faster. KCS operates an expanding north-south network from southern Mexico to the U.S. Gulf and Midwest. Lázaro Cárdenas has been rated as the third most productive port in the Americas in the first half of 2014, averaging 79 moves/hour lead by Balboa, Panama, with 97 moves/hour and Los Angeles, with 80 moves/hour. There are currently between 8 and 10 container ships waiting for berth off LA/LB.
Double container ship fire in Port Klang
Two large container ships were involved in a collision at Port Klang, Malaysia this week. Fire broke out in the forward container stacks on both vessels causing extensive damage. Reports say that the 8,700 TEU San Felipe was heading to berth when it was in contact with the 13,500 TEU Al Riffa operated by UASC. The cause of the collision is under investigation but thankfully there were no injuries.
South Korean prosecutors seek death penalty for Sewol Captain
South Korean prosecutors this week called for the death penalty for the Captain of the ferry Sewol which capsized and sank in April with the loss of 304 people – most being teenagers on a school excursion. The prosecution has accused the 68 year old Captain of abandoning the ship without making any efforts to rescue passengers (see picture above). He also admitted that he knew the crew member steering the ship at the time of the accident was relatively new to the job and did not have the skills and experience required. Prosecutors also asked for three crew members to be sentenced to life in imprisonment and recommended terms of between 15-30 years for the other 11 crew members who were tried on lesser charges. Verdicts are due to be handed down in November.
Candidates emerge for top IMO job
We are looking at a potential contest of two Andreas’ for the top spot at the IMO following the announcement that Mr. Koji Sekimizu is to step down as Secretary General at the end of 2015. Denmark has announced that it will nominate Mr. Andreas Nordseth, Director-General of the Danish Maritime Authority, while Cyprus has again nominated Mr. Andreas Chrysostomou to stand again having lost out to Mr. Sekimizu last time round. The election will be held by the IMO Council in June or July 2015. Mr. Nordseth, 54, has been with the Danish Maritime Authority under the Ministry of Business and Growth since 1991.
EU official to testify in UK House of Lords
Mr. Haitze Siemers, the European Union’s head of unit for the North and Baltic Seas in the Department for Fisheries and Maritime Affairs appeared before the UK’s House of Lords this week The meeting was the committee’s first in its inquiry into European Union regional marine co-operation, which is designed to focus on how improved policy co-ordination can protect the marine environment and support the development of marine industries. Specifically Mr Siemers was asked about the main features of the EU Integrated maritime policy, its vision for blue growth, the co-ordination between EU policies affecting the marine environment including the Maritime Spatial Planning Directive and strategies for the North and Baltic Seas. The inquiry was motivated by continued EU attempts to regulate shipping with unilateral regulation rather than supporting the work of the IMO. Rumors that Mr. Siemers was later sent to the Tower of London to await his fate were unconfirmed at the timer of writing.
Northern Sea route applications again increase in 2014
The Northern Sea Route (Northeast Passage) received over 600 applications for permits this year, a new record, while sea ice prevented the Northwest Passage from opening up for the first time in five years. The Northeast Passage fully opened on August 21 and stayed open for six weeks, eventually closing on October 1. There is considerable variation on the time period that the NSR remains open for navigation year by year.
Another S.E. Asian tanker hijacked
Indonesian pirates went one further on October 8 when they hijacked the 3,200 DWT tanker Srikandi 515 (built 2013) off the coast of Malaysia. The vessel was loaded with a full cargo of palm oil at the time of the encounter. The vessel’s crew was held captive for 13 days before they were cast adrift in a lifeboat before being found by Malaysian fishermen. The vessel itself remains missing.
Market Report - October 31, 2014
Having forced down the prices of iron ore and coal, China is again buying and Capesizes are in lift off mode as there is no stopping the market at the top end. The Baltic Dry Index closed on Thursday on 1424 points compared to 1155 points last week and 963 points the week previously.
Spot time charter
One week ago
Tankers:On the back of heavy Chinese buying to take advantage of the current low price of oil, VLCCs spot rates to Asia this week climbed by around $9,000/day to the $45-50,000/day range – a major improvement on the rates at the beginning of October. China’s oil demand in September was 42.3m tons, or an average of 10.3m barrels per day — up 7.4% from the same month a year ago, according to Platts.
Nov 14 - Plimsoll Club 2014 Fall Banquet
The Plimsoll Club's 2014 Annual Fall Banquet will be held on November 14, 2014 at the Fairmont Waterfront Hotel. Guest speaker for the evening is Paul Nicklen, acclaimed Arctic photographer as seen in National Geographic. For more information visit: www.plimsollclub.ca or call Mariam at 604-681-2351.
Jan 28 - Cargo Logistics Canada Expo & Conference
The seminar listing for the Cargo Logistics Canada conference and registration is now available at: http://www.cargologisticscanada.com/. The Cargo Logistics Canada Expo & Conference is the largest and most diverse gathering of stakeholders in Canadian supply chains to be assembled in Canada.
Most people had probably never heard of CCGS Gordon Reid, a mid-shore fisheries patrol vessel, until she was pressed into service two weeks ago on a rough night west of Haida Gwaii to assist the disabled Russian multi-purpose vessel Simushir.
Built in 1990 by Versatile Pacific Shipyard, Vancouver LOA 49.95m Beam 11m GRT 880 tons Propulsion: 4 × Deutz SBV 9M628 Speed 12 knots Complement: 12 crew Based in Patricia bay, Sydney BC
Mid-Shore Patrol Vessels are used to support the Department of Fisheries and Oceans Compliance and Enforcement program on the Atlantic and Pacific Coasts. As part of this program, Canadian Coast Guard personnel and the Department of Fisheries and Oceans' Fishery Officers work together to:
Conduct surveillance of fisheries operations to ensure all regulations and guidelines are being respected
Seize, recover, store and transport illegal fishing gear
Monitor and patrol the oceans (coastlines and international boundaries) and provide a Canadian presence
Discourage smuggling and fish poaching.
Between 2012 and 2014, the Coast Guard has taken delivery of a series of eight new mid-shore patrol vessels (above) built by Irving Shipbuilding in Halifax. The design is based on Damen’s Stan Patrol 4207 standard.