COS Weekly Newsletter - Friday, 24 February 2023

In September 2022, the Vancouver Fraser Port Authority (VFPA) advised that implementation of the Rolling Truck Age Program would be deferred until April 3, 2023, to allow for truck owner-operators to source program-compliant trucks. However, in light of the current economic landscape and continued pandemic-related issues, VFPA will again defer the implementation of the program for no less than nine months.  In the interim, VFPA will be considering new technologies, as well as federal and provincial fleet greening programs. The port authority will continue to consult with the drayage sector, the port community, government, and local and Indigenous communities to refine the approach moving forward.

The Port of Montreal has decided to spend over US$245 million (CA$335 million) in its new five-year investment strategy for infrastructure on Montreal Island. According to the port of Montreal, key projects planned over the next five years include optimising substations, which will allow the Canadian port to meet the growing demand for electrical energy, optimising rail capacity by adding six kilometres of track, which will improve the fluidity of rail traffic and storage, and wharf modernisation to safely accommodate vessels.

Canadian National Railway has been in ongoing negotiations with Unifor since October 2022 covering five collective agreements, all of which expired in December. The union represents approximately 3,000 employees working in various departments such as Mechanical, Intermodal, and Facility Management, and in clerical positions in Canada.

Western IntermodeX (IntermodeX) has announced the acquisition of Quickload Logistics (Quickload) in Prince Rupert. Quickload joins IntermodeX alongside Coast2000 Terminals and Interhold Distribution subject to customary closing conditions. This investment immediately unlocks import transload capacity for Western IntermodeX in Prince Rupert for the North American marketplace.

Following a national executive search, the BCMEA has announced that Shayne Daum has been selected as the BCMEA’s new Vice President of Training and Safety, effective March 1, 2023. Shayne is currently Director of Operations Delivery at the BCMEA and is attuned to the various training, safety and regulatory activities across industry. As VP of Training and Safety, Shayne will join the Executive Team, providing strategic direction and operational management of the longshore on-boarding, training and safety portfolios.

The Minister of Transport, the Honourable Omar Alghabra, has announced $12.5 million in funding to launch the Ballast Water Innovation Program in the Great Lakes and St. Lawrence region.  Technical challenges caused by unique water conditions, such as cooler temperatures and heavy sedimentation rates, can pose a challenge to ballast water management systems in the region. Transport Canada is now accepting applications for research funding from Canadian vessel owners and operators, Canadian Port Authorities, not-for-profit organizations, public sector organizations, and academia until May 10, 2023.  Approved projects are expected to begin in 2023.

The Government of Quebec has announced an investment of $3,5M for training in the marine sector.  This financial support will enable the Comité sectoriel de main-d'œuvre de l'industrie maritime, in collaboration with the Institut maritime du Québec of the Collège de Rimouski, to carry out a significant skills development project. Nearly 2,800 hours of training for will help workers in Quebec's marine industry prepare for the future. The trades covered by the various updated training courses include bridge officers; Engineer Officers/Engineer Officers for Inland Waterway Transport; deckhands and engine-room deckhands; Transport Directors; and longshoremen.

The International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) announced today that they continue to negotiate and remain hopeful of reaching a deal soon. The parties have agreed not to discuss negotiations in the media as collective bargaining continues. Negotiations for a new collective bargaining agreement covering more than 22,000 dockworkers at 29 West Coast ports began on Tuesday, May 10, 2022, in San Francisco. The parties have reached a tentative agreement on certain key issues, including health benefits, and remain committed to resolving the remaining issues as expeditiously as possible. Talks are continuing on an ongoing basis until an agreement is reached.

Negotiations are not open to the media or the public, and news articles purporting to know what is happening at the bargaining table are speculative at best. During negotiations, West Coast ports have continued to operate.

The US Maritime Administration issued a Maritime Security Communication with Industry to alert maritime stakeholders of potential vulnerabilities to maritime port equipment, networks, operating systems, software, and infrastructure. Maritime ports, facilities, and infrastructure worldwide are vulnerable to physical and cybersecurity exposure through foreign adversarial access to port equipment and supply chain information management systems. The MSCI contains guidance to the industry on how to address these threats.

Evergreen Line, HMM, Maersk, the Offen Group, ONE (Ocean Network Express), Seaspan as well as Lloyd’s Register are joining forces with Safetytech Accelerator to find and advance technology innovations from across maritime and other industrial sectors to reduce the incidence and impact of cargo fires or cargo loss overboard. The Initiative has a broad scope encompassing three significant topics of concern. The first relates to onboard cargo control, including whether cargo has been properly, loaded, secured and monitored during transit. The second area covers the ability to detect fire onboard and stop its spread through effective onboard response, particularly on large container ships and car-carriers. The third relates to the challenges created by the increasing scale of vessels.

The International Chamber of Shipping and others have released an open letter calling on United Nations Secretary-General Antonio Guterres to urgently prioritize the evacuation of 331 seafarers and 62 ships that remain trapped in Ukrainian ports. The 34 signatories, including the International Chamber of Shipping, NKY Line, the Union of Greek Shipowners, Danish Shipping, and seafarer charities, called the situation an ‘unacceptable risk to life.’

In February 2022, 112 vessels crewed by more than 2,000 seafarers were berthed in Ukranian ports across the Black Sea and the Sea of Azov. Since then, 1,700 have been safely evacuated and have been able to return to their families or return to their work of keeping global trade flowing. The remaining 331 seafarers from countries such as Bangladesh, Philippines, Turkey, Syria, China, Egypt, Lebanon, Greece, Indonesia, Ghana, India, Azerbaijan and Georgia, remain to maintain the safety and protect against environmental harm. No other industry have non-combatants in the area over a year on from the start of the conflict, as they can only leave when the ships leave.

Teekay Tankers is expanding its owned and chartered fleet in a series of purchase and charter deals.  Teeky has given notice that it will exercise its purchase options on nine vessels under sale and leaseback agreements.  The acquisition will cost $164m and will be funded using cash on hand and executed in March this year.  This announcement follows fourth quarter and annual 2022 results that surpassed Wall Street expectations.  Commenting on results, CEO Kevin Mackay said “While the mid-size tanker market in the third quarter was among the strongest in recent years, rates in the fourth quarter of 2022 surged to among the highest rates ever recorded”.

The newest Mercy Ship , the Global Mercy™ arrived in Dakar Senegal on 14 February 2023. While the ship hosted surgical training in Senegal in 2022, this year marks the first time that specialized surgeries will take place on this newly built hospital ship. This field service will include partnership with ministries of health in both Senegal and The Gambia, serving both countries through the port of Dakar.

Designed with purpose, the Global Mercy hospital ship is 174 meters long, 28.6 meters wide and has space for 200 patients, six operating rooms, a laboratory, general outpatient clinics, dental, and eye clinics, and training facilities. The hospital decks cover a total area of 7,000 square meters and contain the latest training facilities. The ship can accommodate up to 950 people when docked, including crewmembers and volunteers from all over the world and will serve collaboratively in the future with the Africa Mercy, which has been in operation since 2007 and is currently undergoing refit to return to service in the fall.

It is expected that more than 150,000 lives will be transformed through surgery alone, during the next 50 years of the Global Mercy’s lifespan, with each transformation representing a person with a name, a face, a story, a family, and a purpose. In addition, thousands of African medical professionals will receive training and mentoring with the goal of multiplied impact within their own communities.