On February 15, the keel laying ceremony for Teekay’s first shuttle tanker newbuilding for East Coast Canada (ECC) took place at the Samsung Heavy Industries shipyard in Korea. This important milestone marks the end of the block building period as well as the beginning of the next phase – to complete the newbuilding with all its systems. The shuttle tanker, the Beothuk Spirit, is the first of three shuttle tankers under construction and is expected to be delivered in August of 2017. Teekay Offshore will be the sole supplier and operator of shuttle tankers services for East Coast Canada.
The Chairman of the International Chamber of Shipping, Esben Poulsson, has set out what the industry would like the International Maritime Organization to achieve as part of its CO2 reduction strategy for the shipping sector. Speaking in Indonesia today at The Economist magazine’s World Ocean Summit, Mr Poulsson feared that unless IMO makes significant progress the industry could be vulnerable to regional action, not only from the EU – which is considering incorporating shipping into the EU Emissions Trading System – but also from Canada or California, which have already introduced carbon pricing.
ICS stresses that IMO should adopt objectives for the entire sector, not for individual ships, in the same way that governments have already agreed CO2 commitments for their national economies under the Paris Agreement. IMO also needs to agree a mechanism for delivery which ICS would like to see in place by 2023. If IMO decides to develop a Market Based Measure, ICS says that the clear preference of the industry is for a bunker fuel levy.
In the meantime, ICS argues that any CO2 reduction goals agreed by IMO must also address the legitimate and valid concerns of developing nations about the potential impacts on trade and sustainable development. According to the United Nations, 60% of maritime trade now serves developing nations.
Not long after announcing changes to Bull, Housser & Tupper, Norton Rose Fulbright has announced that it is in the process of combining with a leading New York-based international law firm, Chadbourne & Parke. The expanded firm, comprised of more than 4,000 lawyers in 58 offices worldwide, will be known as Norton Rose Fulbright.
Amendments to the Pacific Pilotage Tariff Regulations for 2017 have been published in Canada Gazette Part I, February 18, 2017 for comments. The amendments reflect industry's discussion and agreement with the PPA. The following amendments are proposed:
The California State Lands Commission (SLC) issued a notice stating that it invites participation in the informal comment period on proposed regulations relating to performance standards and compliance assessment protocols for the discharge of ballast water for vessels operating in California waters. The informal comment period closes on 24 March. In the meantime the SLC posted a letter stating that the Commission unanimously opposes proposed federal legislation that would revoke the right of states to regulate ballast water discharges into state waters by making federal ballast water discharge standards preemptive
The Centerm Expansion Project team invites the public to learn more about, and provide feedback on, the proposed Centerm Expansion Project during the public consultation period from February 20 to March 24, 2017. The project team will be hosting a series of open house events and small group meetings to share information on the project’s proposed design of on-and off-terminal improvements, results of technical and environmental studies, anticipated construction activities, and the proposed community investment program. A second phase of consultation is planned for mid-2017. For more information visit: porttalk.ca/centermexpansion.
Hanjin Shipping was was officially declared bankrupt by the Seoul Central District Court today, ending a 40-year voyage that culminated with over USD5 billion of debt. The Seoul Central District Court decided to declare bankruptcy for Hanjin Shipping after a two-week period for appeal expired. The court said a bankruptcy trustee will be appointed to lead the sale of the shipping line’s assets to pay off debts to creditors. While the Hanjin Vienna remains at Constance Bank, the owners based in Germany have decided to sell the ship and it is expected that a transaction will be concluded in the near future. The crew have been well looked after by Reederei NSB during the five and a half month ship arrest. The Hanjin Scarlet owned by Hanjin Shipping is still in Cowichan Bay despite earlier expectations of her departure.
The Province of British Columbia has reached impact-benefits agreements with the Lax Kw’alaams Band and Metlakatla First Nation that totals $144.5 million and transfers 28.86 square kilometres of Crown land to the two nations, including a 1.64 sq.km section of South Kaien Island to be transferred to Metlakatla, as well as approximately 7.8 sq.km on Digby Island and a small section of Port Edward. The multiple benefits agreements are tied to the potential operation of the Pacific NorthWest LNG project on Lelu Island, and the Prince Rupert Gas Transmission Natural Gas Pipeline Benefits Agreement.
In other project related news, this week the CEO of Malaysia’s Petronas has confirmed speculation that the company is considering relocating the export terminal for its Pacific NorthWest LNG project in Prince Rupert to Ridley Island. A final investment decision is still pending.
G3 expects to begin construction of G3 Terminal Vancouver on March 7, 2017. Whenever feasible, G3 will conduct construction activities from Monday to Saturday between 7:00 am and 8:00 pm. Working outside of these hours will require separate authorization from the port, and separate notification to surrounding areas.
Initial construction activities will focus on mobilization, demolition of existing buildings, demolition of the existing wharf superstructure (land work only), relocation of underground utilities, and excavations for the concrete foundations. A temporary detour, which will tie in to Harbour Avenue, will be installed in the first few months of construction. G3 does not anticipate any major impacts to the local community as a result of these initial construction activities. Dust is anticipated to be minimal and will be controlled with water spray. Noise is anticipated to be ambient or below ambient. Construction-related truck traffic is anticipated to be lower than traffic related to the operations of the outgoing tenant.
For general inquiries, the public may contact 1-844-263-2398, and for construction-related inquiries, they may contact 778-373-3150.
This week Fisheries and Oceans Minister, the Honourable Dominc LeBlanc, and Canadian Coast Commissioner, Jody Thomas, were in Vancouver to make several announcements related to the federal government's Oceans Protection Plan. The Chamber of Shipping directors were in attendance at the official endorsement of the Pacifc North Coast Integrated Management Area (PNCIMA) Plan which outlines an ecosystem-based management framework for marine activities and resource development in the Pacific North Coast. Together with the Great Bear Rainforest, it was stated that this represents the largest area in the world managed under an ecosystem-based framework, balancing ecological, economic and social goals and objectives for sustainable development.
The Plan does not make commitments to new action, but rather sets a broad ecosystem context that can inform and guide existing work. All parties involved in the plan’s development are responsible for implementing its goals, objectives and strategies within their own organizations. Implementation of the Plan will require five priorities: governance arrangements for implementation; marine protected area network planning; monitoring and adaptive management; integrated economic opportunities; and tools to support plan implementation.
By majority vote, the Members of the European Parliament have agreed to include shipping in the European Emission Trading Scheme (ETS) Directive as of 2023, unless there is a comparable system agreed under the auspices of the IMO by the end of 2021. Various international shipping associations have expressed disappointment as this is viewed as counter-productive to the IMO's commitment to address the reduction of greenhouse gas (GHG) emissions from ships. The IMO Roadmap is aligned with target dates for actions under the Paris Agreement and seeks to establish a harmonized international regime.
The Vancouver Aquarium's Coastal Ocean Research Institute in partnership with the Vancouver Fraser Port Authority and the Prince Rupert Port Authority has released the Mariner's Guide to Whales, Dolphins and Porpoises of Western Canada to raise awareness among large vessel mariners in an effort to help mitigate vessel impacts on cetaceans along the BC coast including strikes, disturbance, noise, and air pollution.
Two container shipping lines, CMA CGM and Zim, have signed up with Alibaba to allow customers to book space on their vessels through the Chinese e-commerce giant, in a bid to boost sales as the sector battles a severe downturn. Maersk was the fist to start offering online booking services to Chinese shippers on Alibaba's OneTouch website in December 2016 and has just announced a partnership with the online freight forwarding platform Yun Qu Na.
On Saturday, February 18 and February 25 the MV Queen of Nanaimo will be voluntarily participating in Vancouver Fraser Port Authority's ECHO (Enhancing Cetacean Habitat and Observation) Program to help establish a baseline of ambient noise and vessel contributors in the Strait of Georgia. The ferry will add another 55 minutes to its scheduled 8:45pm sailings to help the ECHO Program better understand the impact of shipping activities on at-risk whales throughout the southern coast of BC. The initiative reflects the values of BC Ferries’ SeaForward program.
The Canadian Food Inspection Agency and the US Department of Agriculture have issued a pdf joint notice (57 KB) reminding vessels of the Asian Gypsy Moth requirements for pre-departure inspections at regulated ports in Far East Russia, Japan, Korea and Northern China during specified periods of risk. Vessels that arrive in Canada between March 1 and September 15th without a certificate will require an inspection by CFIA at designated locations prior to entering the port. Please refer to CFIA directive D-95-03: Plant protection policy for marine vessels arriving in Canada from areas regulated for Asian Gypsy Moth.
Fisheries and Oceans Canada has designated Hecate Strait and Queen Charlotte Sound Glass Sponge Reefs as the newest Marine Protected Area (MPA), as part of the Government of Canada’s commitment to expand the national network of MPAs under the Oceans Act. This new MPA represents 2,410 km² of protected aquatic territory along the Pacific North Coast, southeast of Haida Gwaii, between the northern and southern entrance to the Douglas Channel. The area is nationally and internationally recognized as an important and exceptional marine habitat as the reefs are made up of large colonies of glass sponges that are estimated to be 9,000 years old. The sponge reefs provide an essential water filtration service as well as refuge, habitat and nursery grounds for aquatic species, including commercially important rockfish, finfish and shellfish species.
The regulations prohibit any activity that disturbs, damages, or destroys living marine organisms or habitat within the area, with the exception of some activities that do not compromise the MPA conservation objectives, such as some marine scientific research or safety and security measures. The MPA is comprised of three spatially distinct components to encompass the northern reef, the two central reefs, and the southern reef. The regulations apply a zoned approach that offers varying levels of protection to the MPA and provides core protection to the sponge reefs.
The Government of Canada has settled several lawsuits filed by the Seafarers’ International Union of Canada (“SIUC”) against the Government of Canada since 2015. The lawsuits targeted violations under the Temporary Foreign Worker Program (“TFWP”). All lawsuits have now been settled and the terms agreed to by Employment and Social Development Canada (“ESDC”) include: