COS Weekly Newsletter - Friday, 8 April 2022

SAAM Towage Canada has just acquired Standard Towing Ltd. and Davies Tugboat Ltd. Both companies provide harbour, shipdocking and towage services on the West Coast of Canada.  The acquisition contributes to SAAM Towage’s drive to continue to consolidate its leadership position on the West Coast.  Through these acquisitions, adds three Canadian-built tugboats to the fleet enabling SAAM Towage to expand its service area to Northern Vancouver Island. The assets being acquired are Numas Warrior and Renegade who will both continue to serve in Port McNeill and Point Valiant serving under a long-term charter.

PSA International Pte Ltd (“PSA”) and Halifax Port Authority are pleased to announce PSA’s acquisition of Ceres Halifax Inc. from Nippon Yusen Kabushiki Kaisha. PSA Halifax will now operate two container terminals in Halifax, namely Atlantic Hub and Fairview Cove, jointly branded under PSA Halifax.

PSA Halifax’s Atlantic Hub terminal is located at the south end of the city of Halifax and new investment in megavessel handling capability over the past two years have future-proofed its long term competitiveness, allowing it to handle the largest vessels ever to call at Canada’s ports to date. PSA Halifax’s Fairview Cove terminal, at the north end of the city, will complement Atlantic Hub’s existing operations for vessels of up to 8,000-TEU capacity as part of its integrated offerings.

The Montreal Port Authority (MPA) and Canadian National Railway (CN) announced that they have reached an agreement to integrate rail facilities at the new container terminal in Contrecœur. Along with the private firm that will build and operate the terminal, the railroad and port will develop the technical aspects of the intermodal facility. A CN rail line is already in place at the site of the expansion and this initiative will help maximize the terminal’s efficiency and ensure a competitive commercial offering with greater access to key markets in the North American industrial heartland.

Davie Shipbuilding announced that 86% of its production workers, members of the Syndicat des travailleurs du chantier naval de Lauzon inc. (STCNL) affiliated with the Fédération de l’industrie manufacturière de la Confédération des syndicats nationaux (FIM-CSN), have voted in favor of a ground-breaking new long-term collective agreement. This new collective agreement will run until June 30, 2030 as the organization remodels its working environment. The agreement is the result of colossal joint efforts by the members of the negotiating teams.  In March 2022, Davie was awarded a $14.36 million contract for vessel life extension on the Canadian Coast Guard icebreaker, Louis S. St-Laurent.

Canada's Environment Minister Steven Guilbeault formally approved on Wednesday the Bay du Nord offshore oil project, providing a positive shot in the arm for Newfoundland and Labrador, and for the region's workers, families and communities. Following a thorough and science-based environmental assessment conducted by the Impact Assessment Agency of Canada (the Agency) over four years, the approval follows conclusions in the Agency's Environmental Assessment Report that determined the proposed Bay du Nord Development Project is not likely to cause significant adverse environmental effects when mitigation measures are taken into account. The project is therefore allowed to proceed with strict measures to protect the environment.

Canada’s Finance Minister Chrystia Freeland has delivered the 2022 federal budget on April 7^th. The budget focused on economic growth, climate change, innovation, housing, and supply chain competitiveness. Our ‍COS Circular No. 022-030 compiled planned spending that may be of interest to marine transportation.

President Joe Biden nominated Adm. Linda L. Fagan to serve as the 27^th Commandant of the US Coast Guard. Upon confirmation, Adm. Fagan will be the first woman to serve as Commandant of the Coast Guard.  Adm. Fagan is currently Vice Commandant and previously served as Commander of the Coast Guard Pacific Area overseeing operations from the Rocky Mountains to the waters off the East Coast of Africa. The Pacific Area Commander concurrently serves as Commander, Defense Force West providing Coast Guard mission support to the Department of Defense and Combatant Commanders. Adm. Fagan is the Coast Guard’s first-ever Gold Ancient Trident, as the officer with the longest service record in the Marine Safety field. Pending confirmation, Adm. Fagan is expected to relieve the current Commandant of the Coast Guard, Adm. Karl L. Schultz, during a change of command ceremony planned for June 1, 2022 in Washington, DC.

A new US organization is joining the fight to keep ocean and Great Lakes free of marine debris. The National Oceanic and Atmospheric Administration (NOAA) selected the inaugural Board of Directors for the new Marine Debris Foundation established in December 2020 with the passage of the Save Our Seas 2.0 Act.  The group's purpose will include encouraging, accepting, and administering private gifts of property for the benefit of, or in connection with, efforts to address marine debris and to perform other functions related to marine debris.

The European Commission President, Ursula von Leyen, released the fifth package of sanctions. The EC will impose an import ban on coal; a full transaction ban on 4 Russian banks, and a ban on Russian vessels and Russian-operated vessels from accessing EU ports. In addition, the European Commission had indicated additional sanctions underway, including on oil imports.

According to the European Commission website, the EU relies on Russia for around 45% of its coal imports, 45% of its gas imports and approximately 24% of its oil imports. The proposed restrictions in Europe leave uncertainty about tight gas supplies and coal. The economic impacts are evident; although alternatives to Russian coal and gas exist, they will require an increase in the price. The world’s top coal exports, Australia, and Indonesia, have hit their production limits and are unlikely to meet EU demands. Alex Stuart-Grumbar, a dry bulk analyst, stated that the need to import more coal would be positive for the larger Panamax and Capesize shipping segments on longer trade routes. Stuart-Grumbar commented: “The initial disruption to trade patterns will be positive for dry bulk markets, though ultimately, this will push global coal prices higher, incentivizing China and India to produce more coal domestically.”

The Corvus Energy Hydrogen Fuel Cell System developed through the H2NOR project has received Approval in Principle (AiP) by DNV for its groundbreaking safety solution enabling simplified placement of the system inside a ship’s hull. This is the first fuel cell system (FCS) designed to be inherently gas safe meaning that the surrounding machinery space will be considered gas safe under all conditions. This design significantly reduces the number of requirements for the safety and ventilation support systems, thereby enabling a more efficient integration onboard the ship.

The Corvus Fuel Cell System can serve as the main power source or as an additional power source to increase fuel flexibility onboard. With water being the only exhaust, the Corvus Fuel Cell will allow a ship to operate in any harbour and protected area. Onboard sailing pilots will take place in 2023 and be commercially available from 2024.

IMO is adding e-learning to its portfolio of services. The first free to access course was launched during an online event (7 April), in the margin of its Pollution Prevention and Response (PPR) Sub-Committee meeting. IMO has developed a number of e-Learning courses with the purpose of increasing the capacity of Member States to effectively implement IMO instruments. Some courses are also available to anyone interested in maritime issues wishing to enhance their maritime knowledge. The first such course is: "An Introduction to Oil Pollution Preparedness, Response and Cooperation", designed to provide a basic introduction to those involved in, or that have an interest in, matters related to oil pollution preparedness and response, whether from within the oil spill response community or the maritime sector.

The series of e-Learning courses is being developed in collaboration with the World Maritime University. Distance learning has become key in meeting the changing educational needs in the maritime industry and IMO is offering students and maritime professionals around the world the possibility to boost their understanding of key maritime issues. Click here to visit the e-learning platform.

Brazilian offshore vessel operator CBO signed an agreement with the technology group Wärtsilä to convert vessels with hybrid propulsion. The CBO Flamengo is now the first vessel in Latin America to be fitted with a battery pack for hybrid propulsion, compliant with the DNV-GL’s “Battery Power” class notation. CBO aims to improve the vessel’s energy consumption and reduce its carbon footprint by switching diesel and electric energy from batteries.

Length/Beam                          89/19m
Summer Deadweight (t)       4750
Length Overall (m)                89
Gross Tonnage                        4063
IMO number                           9578880