COS Weekly Newsletter - Friday, 13 January 2023

Canadian Pacific Railway Ltd. and Unifor have reached a tentative collective agreement for 1,200 workers who are responsible for maintaining rail cars and locomotives. Negotiations have been ongoing since September. The details of the tentative contract will not be released publicly until the agreement has been ratified. The contract covers workers at 18 locations from British Columbia to Quebec.

The Vancouver Fraser Port Authority (VFPA) and DP World are developing a conceptual terminal design and operating model for a common-user short-sea shipping terminal within the Richmond Properties on the Fraser River.  The site could accommodate up to two barge berths, container storage and staging, a truck gate, and a rail spur.  This design phase comes after the initial engagement, with industry, Indigenous groups, and local governments during a viability analysis conducted with funding received from the National Trade Corridors Fund. The VFPA is exploring other potential options for short-sea shipping within the Vancouver gateway.

The Government of Canada is working to improve its ability to work together with Indigenous communities, the marine industry, regional, municipal, provincial and territorial governments to respond to marine pollution incidents that involve oil and/or hazardous and noxious substances. Recognizing there is room for improvement, a Marine Pollution Preparedness, Response and Recovery Discussion Paper outlining a proposal to develop a coordinated system to respond to all such marine pollution incidents.  Comments are due by May 31, 2023.

The Minister of Transport, the Honourable Omar Alghabra, announced amendments to the Transportation Information Regulations to increase supply chain transparency and create a better understanding of the performance of Canada’s freight rail sector for the benefit of all rail users.  Additional data will also be required by Transport Canada to support targeted public policy and other regulatory purposes, including waybill information (such as origin, destination, weight) and traffic data (such as number of carloads, goods, and car types).

These changes will come into force on April 4, 2023 and will enhance the data currently available on the Government of Canada’s Transportation Data and Information Hub. and provide Canadians with a better picture of end-to-end freight rail performance.

The Government of Canada has announced an investment of up to $22.7 million to support improvements for the Welland Canal under the National Trade Corridors Fund. The $45.3 million project will support the St. Lawrence Seaway Management Corporation in the reconstruction and rehabilitation of three wharves, currently out-of-service, located at the Welland Canal in Port Colborne, Ontario.

The Government of Canada has filed a complaint with the Federal Public Sector Labour Relations and Employment Board (FPSLREB) against the Public Service Alliance of Canada (PSAC) for breaching its duty to bargain in good faith.  PSAC is moving forward with conducting strike votes ahead of recommendations still to be tabled by the Public Interest Commission.

The Biden administration released its US National Blueprint for Transportation Decarbonization outlining plans to eliminate all greenhouse gas (GHG) emissions from the sector by 2050. A whole-of-government approach is being taken starting with the blueprint developed collaboratively by the US Departments of Energy, Transportation, Housing and Urban Development, and the Environmental Protection Agency (EPA). The maritime sector represents 3% of transportation emissions. The US will continue to support the Zero-Emission Shipping Mission (ZESM) goals to ensure that 5% of the global deep-sea fleet are capable of using zero-emission fuels by 2030, and support the domestic maritime sector with more research into sustainable fuels and technologies and incentives.

Ending the "chicken and egg debate" Cargill has teamed up with Mitsu & Co to place an order for two methanol-fuelled Kamsarmax carriers in Japan. The order was reportedly signed last month and the ships are scheduled for delivery at the end of 2025 and in the first quarter of 2026 respectively.  Other carriers signalling the adoption of green methanol fuel in their operations include Maersk, Pacific Basin Shipping, HMM, and MSC.  While LNG is the most popular marine fuel for newbuilds currently, DNV data notes there are 82 methanol-powered ships in operation and on order.

Maersk has 19 green methanol vessels with dual-fuel engines on order, which are at the center of the company’s plans to meet its net-zero emissions target by 2040 across the entire business.  Its venture Maersk Growth has just revealed an investment in Berlin-based startup C1 Green Chemicals AG which specializes in the production of green methanol. C1 has invented new ultra-efficient catalysis for green methanol to be produced from waste biomass or CO2 and H2 and due to the containerized design of the C1-reactor, currently, in the pilot stage, production is possible where sustainable feedstocks are available or close to harbours where green methanol is needed to fuel the vessels.

The International Association of Port and Harbour (IAPH) has issued newly-created risk and resilience guidelines for ports, together with a new risk inventory portal aimed at sharing best practices on risk mitigation and management for ports. Applying the same pragmatic approach by the IAPH-WPSP COVID19 Taskforce, the newly issued guidelines are the first IAPH tool produced by expert regular and associate members from the IAPH Risk and Resilience Committee which aims to support ports in establishing a structured approach towards risk management, business continuity and organizational preparedness. To assist in this, IAPH has also established an online risk inventory portal which will act as a central hub for mutual learning from ports which have dealt with or which are proactively preparing for specific events and incidents. In addition to containing the three crucial infographics that form the backbone of the guidelines, it offers the first two examples on how ports deal with specific threats, with illustrative case studies from member ports. Effectively managing business continuity during the next crisis has become an essential port requirement.

40Seas, an innovative fintech startup is hoping to close the $1.7 trillion global trade finance gap, providing a solution that enables digital B2B payment functionality while facilitating cross-border trade between SMEs. While SMEs account for 43% of cross-border trade volume but are more likely to be denied access to trade financing than multinational companies. 40Seas' $11 million seed funding round, led by Team8 with participation from ZIM Integrated Shipping Services Ltd., is complemented by a $100 million credit facility for exporters and importers. The fintech platform leverages AI and data-driven technology, offering flexible payment options that are primed to disrupt legacy trade-financing solutions by extending the accessibility of working capital for SME importers, exporters, freight forwarders and sourcing agencies. Since going live with a soft launch in October 2022, 40Seas has already financed transactions for dozens of SMEs and is slated to finance tens of millions of dollars in the coming months. 40Seas is available as an API or stand-alone platform, both of which can be seamlessly embedded into checkout portals to improve business flow and deliver more convenience to customers. In addition to helping businesses streamline communications around order tracking, the platform utilizes data-driven technology to automate decision-making processes and verify creditworthiness.

Pioneers of luxury train travel since the 19th century, Orient Express, a brand synonymous with fabulous, opulent and expensive slow travel, has revealed plans to launch the world's largest sailing ship - Orient Express Silenseas. 

At 220 meters long with a tonnage of 22,300 UMS, Orient Express Silenseas has room for 54 suites measuring on average 70 square meters, but those with deeper pockets may want to splash out on the monumental 1,415-square-meter Presidential Suite complete with 530-square-meter private terrace. Guests will also enjoy two swimming pools including a lap pool, two restaurants and a speakeasy bar. More extravagant perhaps are the state-of-the-art amphitheater and private recording studio, should guests be feeling musical.

Orient Express Silenseas is a result of a partnership between hospitality giant and Orient Express owner Accor and Chantiers de l’Atlantique, a French shipbuilder. Powered by a unique ‘solid-sail’ wind propulsion system combined with a hybrid propulsion system powered by liquified gas, she is expected to set sail in 2026 with stops in the Mediterranean and the Caribbean.