The $3.8 billion US Dakota Access pipeline began shipping oil for customers on Thursday while the developer will face scrutiny later this summer over whether it violated North Dakota rules during construction. Dallas-based Energy Transfer Partners announced that the 1,931-kilometres line carrying North Dakota oil through South Dakota and Iowa to a distribution point in Illinois had begun commercial service. Dakota Access and the Energy Transfer Crude Oil Pipeline from Illinois to the Gulf Coast together make up the $4.8 billion US Bakken Pipeline system, which ETP said has commitments for about 520,000 barrels of oil daily.
German shipping group Rickmers has filed for insolvency under self-administration to Hamburg District Court with the aim of restructuring after bondholder HSH Nordbank rejected its restructuring plan a day ahead of a last-ditch bondholders' meeting. Rickmers had proposed a revamp plan under which the equity stake of owner Bertram Rickmers was to be reduced to 24.9 percent, while bondholders, HSH Nordbank and potentially another bank would hold 75.1 percent. The Executive Board remains in office and capable of acting. The necessary legal expertise will be provided by experienced Hamburg restructuring expert, lawyer and tax adviser, Dr Christoph Morgen. The aim of the Executive Board is to work out a new restructuring solution together with the creditors and making use of the tools of insolvency law. Banks, bondholders and the workforce will be represented on a temporary committee of creditors. Rickmers' loss more than doubled to $383 millionin 2016, amid overcapacity in the market and falling freight rates.
The Panama Canal Authority (PCA) has published a proposal to amend the Panama Canal Tolls system which has been in place since April 2016. If passed, the proposals will be implemented on 1 October 2017 following three months notice. Only three sectors are affected by the proposed changes: Containerships, Container/Breakbulk vessels and LPG/LNG vessels. For the containership segment, the proposal offers more attractive rates per loaded containers on the return voyage, applicable only to those Neopanamax vessels deployed on the Canal route in the head and back haul legs, and when: (1) the utilization rate of the northbound transit is higher or equal to 70 percent, and (2) the time lapse between the northbound and the southbound transit is not greater than 25 days. In order to promote the use of the services provided by the local transportation hub, any additional days that the vessel requires to perform port-related activities in the Panamanian terminals will not add to the 25 day period. Tolls for all other sectors will remain as implemented in April 2016. The usual 30 day public consultation period has now begun and written comments must be received by the PCA by July 3 and this will be followed by a public hearing is scheduled for 5 July.
Hapag-Lloyd is looking to cut up to 12 percent of its almost 11,000 land-based workforceover the next 18-24 months following the completion of its merger with UASC. Downsizing of the workforce will not affect its 2,100 member crew. Hapag-Lloyd now plans to combine its 118 services with the 45 services making up UASC’s network, a process estimated to start in roughly eight weeks, taking up to the end of the third quarter. The combined fleets will include 230 vessels with a shared capacity of approximately 1.6 million TEUs.
Teekay Tankers Ltd. has agreed to acquire all the remaining issued and outstanding shares of Tanker Investments Ltd. (TIL) in a share-for-share merger creating the world's largest publicly-listed mid-sized conventional tanker company. The acquisition of over $500 million of modern tankers, results in combined total assets of $2.4 billion. TIL's fleet consists of 10 Suezmax tankers, 6 Aframax tankers and 2 LR2 Product tankers with an average age of 7.3 years. Following the merger, Teekay Tankers' fleet will consist of 62 conventional tankers, including 3 in-chartered conventional tankers (30 Suezmax tankers, 22 Aframax tankers, 9 LR2 Product tankers and one 50 percent-owned VLCC).
As part of the transaction, Teekay Tankers will assume approximately $350 million of TIL's long-term debt, which includes two revolving credit facilities and a term loan, and on a pro forma basis as of March 31, 2017, the transaction adds approximately $117 million(1) of liquidity to Teekay Tankers. Once finalized, the acquisition will lower the average fleet age, reduce the financial leverage and increase the total liquidity position. In addition, with the acquisition of the remaining interest in Teekay Operations for approximately $27 million, Teekay Tankers has now completed its evolution into a fully-integrated conventional tanker platform with all management and operations now owned and operated solely by Teekay Tankers.
Coinciding with the Vancouver Fraser Port Authority's Annual General Meeting held on May 30th, the Port released its 2016 economic impact study and sustainability report which together describes how economic, environmental and social sustainability are being addressed and measured. Compared with the last report in 2012, the economic output from activities of the Port of Vancouver in 2016 increased by $4.2 billion to $24.2 billion with a 17 per cent increase in jobs across Canada from 98,800 to 115,300 jobs.
Shown above are the 2016 Blue Circle Award recipients with VFPA President and CEO, Robin Silvester. Receiving the awards presented at the AGM were representatives from: CMA CGM, Hamburg Sud, The China Navigation company, Hapag Lloyd, Hyundai Merchant Marine, Evergreen Line, United Arab Shipping Company, “K” Line, Mediterranean Shipping Company, NYK Line, Disney Cruise Line, Princess Cruises, Grieg Star, Westwood Shipping Lines, and Yang Ming.
Green Marine marked its 10th anniversary as North America’s environmental certification program for the maritime industry this week with its GreenTech 2017 conference in Fort Lauderdale. Released at the event was the 2016 environmental performance results of Green Marine members showing continuous improvement throughout even with the recent introduction of new indicators and tougher criteria for the existing indicators. West coast ship operators, ports and terminals results are positive and prominent for 2016. BC Ferries’ fleet maintenance unit received its first Green Marine certification this year. While BC Ferries' vessels vessels and terminals have been Green Marine certified since 2015, the shipyard certification is a new achievement, showing their commitment to continue to benchmark environmental performance and make continuous improvements.
The 2017 voluntary environmental program has 12 performance indicators that address environmental issues such as air polluting emissions, greenhouse gases, aquatic invasive species, waste management, community impacts and underwater noise.
Upon completion of the Kinder Morgan Canada's IPO, the investment decision on the Trans Mountain Expansion Project was finalized. The final investment decision to proceed with the Trans Mountain Expansion Project triggers a number of important next steps including the finalizing of construction contracts and the actualization of the financial, employment and safety benefits the company has committed to through more than five years of engagement and consultation.
The final investment decision means that investments in safety, jobs, the environment and communities will commence including:
Construction is set to begin in September 2017 and the Project is expected to be placed in-service by the end of 2019.
The Minister of Fisheries and Oceans, the Honourable Dominc LeBlanc was in Victoria earlier this week to announce further commitments under the Oceans Protection Plan by the federal government, including:
The Minister also announced an additional $1.4 billion commitment to rehabilitate the Department of Fisheries and Oceans and the Canadian Coast Guard. These funds which will complement the $1.5 billion allocated to the Oceans Protection Plan, a significant portion will enable the Canadian Coast Guard to increase its staff across Canada by 15 per cent and upgrade its fleet, and investments in communications equipment and technology. Fisheries and Oceans will benefit by better research in ocean science, thereby providing better data for policy development.
On May 31, 2017, the Government of Canada announced plans to move forward with the Review of the Pilotage Act. This Review will support the delivery of safe, efficient and environmentally responsible marine pilotage services into the future. It is also part of the Government’s comprehensive Oceans Protection Plan.
The scope and mandate of the Review
The Terms of reference: Pilotage Act Review covering the Review’s scope, mandate and key principles are now available.
The Vancouver Fraser Port Authority has announced that it has no plans to further deepen the Fraser River to accommodate larger vessels as it, together with existing marine terminal properties and port industrial lands, can sufficiently handle Canada’s trade for the foreseeable future.
The port authority continuously monitors trends in global ship sizes relative to the size of vessel that can be accommodated. Commercial ships are increasing in size because it is more economical and environmentally responsible to run larger vessels. However, there are limitations to the Fraser River that restrict its ability to accommodate larger ships including height, depth and width restrictions.
Recently, the Vancouver Fraser Port Authority completed an analysis of the Fraser River and its potential to accommodate increasing trade. The analysis considered a variety of possible uses of existing port lands and assessed dredging the river at different depths, and it was determined that deepening the Fraser River would be extremely costly, requiring extensive environmental study and consultation over many years.
According to American Shipper, the American Association of Port Authorities (AAPA) has expressed concern over declines in various federally funded, port-related programs in President Donald Trump’s fiscal 2018 budget request, which was transmitted to Congress Tuesday. The budget proposal for next year includes the elimination of the U.S. Department of Transportation’s (USDOT) Transportation Investment Generating Economic Recovery (TIGER) grant program, and a 52 percent reduction in funding for the Department of Homeland Security’s Port Security Grant Program (PSGP) to $47.8 million. In fiscal 2017, the PSGP provided 35 port security related grants, and the TIGER grants program awarded $61.8 million in multimodal infrastructure grants to US ports. The AAPA is calling for $66 billion in federal funds for port-related infrastructure over the next decade to ensure U.S. job creation, economic growth, safe and secure ports, and tax fairness.
In addition, President Trump has proposed cutting the Environmental Protection Agency’s (EPA) budget by 31 percent, while the EPA’s Diesel Emissions Reduction Act (DERA) grants would see an 83 percent cut.
A new study commissioned by Clear Seas Centre for Responsible Marine Shipping (Clear Seas), and conducted by the Council of Canadian Academies, concludes that marine shipping is of great value to Canadians in all regions. The study, The Value of Commercial Marine Shipping to Canada, demonstrates that no Canadians’ life is untouched by marine shipping. Whether you are buying imported consumer goods, working in an auto plant in Ontario, or live in the Arctic, marine shipping has imparted value to your well-being.
Among the report’s key findings:
The Chamber of Shipping issued a media release titled, Chamber of Shipping calls for Federal Government Triage on Coastal Management, to initially welcome the report and emphasize the need for a balanced approach to coastal management.
Kinder Morgan says it will proceed with the $7.4 billion Trans Mountain pipeline expansion as long as it secures satisfactory financing for the project through its initial public offering. Kinder Morgan is pricing its initial public offering of 102.9 million shares of common stock at a price to the public of C$17.00 per share for total gross proceeds of C$1.75 billion. The final investment decision is conditioned on the successful completion of the IPO, which is expected to take place by no later than May 31, 2017.
CN Rail and the Teamster’s Canada Rail Conference union representing 3000 CN’s conductors in Canada have been in negotiations and CN has advised that TCRC may announce the results of a strike vote in the next week. The union cannot initiate strike action unless 72 hour’s advance notice is given to the Company. Based on our discussions to date, CN is optimistic that the company and union still have time to reach a mutually satisfactory collective agreement without a labour disruption. Nonetheless, if the union does provide such a 72 hour notice, the TCRC will be in a legal strike position as of 00:01 hours on Tuesday May 30, 2017.
Construction has been underway at our North Vancouver G3 Terminal Vancouver site at Lynnterm West Gate since March 7, 2017. Peter Kiewit Sons ULC has been selected as the design-build construction contractor for the project. Activities since the start have included the demolition of old buildings/structures, site clean-up, relocating underground utilities, digging foundations, and dock panel removal (involving no in water works). We will manage dust on site using water trucks and expect minimal traffic impacts in the non-industrial area during this time. Regular updates can be found www.g3terminalvancouver.ca.
Industrial traffic requiring access to Lynnterm West Gate will be rerouted to a temporary detour starting in June this year. The temporary detour will be on the east side of Lynn Creek accessed via Mountain Highway, Dominion road and Harbour avenue, then along a temporary road built over the rail line and bridge to the G3 and Vancouver Pile Driving sites. We will monitor traffic and adjust to minimize traffic disruptions to local businesses located in the industrial area. There will be a small and temporary realignment of access to the Harbourview Dog Park and while we have made considerable efforts to ensure a safe and timely route be maintained to the parking lot, we suggest that dog owners may wish to access the park via the trail via access points to the north.
The Prince Rupert Port Authority has welcomed to its Board of Directors Frans Tjallingii, MSc, MBA, co-founder of Global Data Chain and past president of Saam Smit Towage. Mr. Tjallingii was appointed on the recommendation of the Minister of Transport in consultation with the Coast Tsimshian First Nations. Mr. Tjallingii is the co-founder and Chairman of the New Leaf Project, a not-for-profit that is pioneering new approaches to homelessness. Mr. Tjallingii also chairs the First Nations Housing Foundation, which strives to develop innovative housing solutions through a global incentive prize.