COS Weekly Newsletter - Friday, 14 April 2023
CPKC is official
Canadian Pacific and Kansas City Southern today combined to create Canadian Pacific Kansas City ("CPKC"), as authorized by the US Surface Transportation Board's ("STB") March 15, 2023 final decision. CP completed its US$31 billion acquisition of KCS on Dec. 14, 2021. With its global headquarters in Calgary, CPKC is the only railway connecting North America and has unrivaled port access on coasts around the continent, from Vancouver to Atlantic Canada to the Gulf of Mexico to Lázaro Cárdenas on Mexico's Pacific coast. While remaining the smallest of six U.S. Class 1 railroads by revenue, the new combined company has a much larger and more competitive network, operating approximately 20,000 miles of rail, and employing close to 20,000 people. Full integration of CP and KCS is expected to take place over the next three years, unlocking the benefits of the combination.
CPKC plans capital investments in new infrastructure of more than US$275 million over the next three years to improve rail safety and the capacity of the core north-south CPKC main line between the US Upper Midwest and Louisiana.
Anticipated environmental benefits of CPKC include the avoidance of more than 1.6 million tons of greenhouse gas (GHG) emissions due to the anticipated improved operational efficiency of CPKC versus current operations and another 300,000 tons of GHG emissions with the diversion of 64,000 trucks to rail for a total reduction of 1.9 million tons of GHG emissions over the next five years. Diverting 64,000 long-haul truck shipments to rail annually with new CPKC intermodal services will reduce total truck vehicle miles traveled by almost 2 billion miles over the next two decades, saving US$750 million in highway maintenance costs.
CPKC will also support the expansion of Amtrak and other passenger services on the CPKC network
GVHA receives funding for shore power at Ogden Point
On April 5th the Province of BC announced that $9 million will go to the Greater Victoria Harbour Authority towards the planning an installation of shore power infrastructure at Ogden Point, allowing cruise ships to access clean hydroelectricity at the port, turn off their engines and reduce greenhouse gas emissions. The installation will support two berths. Earlier estimates indicated that the total installation will cost between $23.3 million and $24.8 million.
Tentative agreement reached in Port of Halifax
The Halifax Employers Association (HEA) and the Council of ILA locals for the Port of Halifax announced they have reached a tentative labour agreement that carries through to December 31, 2025. The current Collective Agreement expired on December 31, 2021. The details of the tentative agreement will not be released until the agreement has been ratified, the two parties said.
PSAC job action update expected Monday
The Public Service Alliance of Canada (PSAC) holds a strike mandate for 120,000 government workers that includes about 3,000 employees working in agriculture-related positions. Negotiations are continuing and PSAC representatives will update the bargaining process on Monday. Other PSAC members in a strike position include programs and administrative services, operational services, technical services and education and library science. Most vessel inspection services are deemed essential and fall in other bargaining units that may in the near future hold their own strike vote. Minimal disruption is anticipated should picket lines go up.
Recognition Program of STCW Certificates
Transport Canada has announced that they have signed new reciprocal arrangements with the United Kingdom and the Republic of the Philippines. The agreements recognizes UK and Filipino seafarers holding a valid STCW certificate of competency issued by their respective authorities enabling them to apply for Canadian endorsement. For more information visit: Ship Safety Bulletin 03/2023 (UK)
and Ship Safety Bulletin 04/2023 (Philippines).
North Atlantic Right Whale seasonal measures announced
Due to changing migration patterns of North Atlantic right whales and their increased presence in the Gulf of St. Lawrence, the Government of Canada has set seasonal speed restrictions in specific zones. These speed restrictions zones are defined as “static zones”, “dynamic shipping zones”, “seasonal management areas”, a “voluntary seasonal slowdown zone’’ and a “restricted area.” Changes to the speed restriction zones will be effective from April 19th
, 2023, while the restricted area will be implemented based on whale presence. A voluntary seasonal slowdown of 10.0 knots over the ground spanning from Cabot Strait (a line running from Cape North NS to Cape Ray NL) to the eastern edge of dynamic shipping zone E will be implemented at the beginning and end of the North Atlantic right whale season. For more details see Ship Safety Bulletin 05/2023
NLRB rules against ILWU in jursidiction dispute
The US National Labor Relations Board (NLRB) ruled that the International Longshore and Warehouse Union (ILWU) violated federal labor law in its attempt to acquire maintenance and repair work related to the use of cold ironing shore power to supply electric power to ships docked at Terminal 5 in the Port of Seattle. The NLRB states that employees represented by the ILWU’s Local 19 chapter performed this new maintenance and repair work for the terminal’s operator, SSA Marine, on a “temporary and inconsistent basis. This jurisdictional issue has prolonged the US West Coast longshore contract negotiations that are nearing a year. The ILWU will appeal the NLRB’s decision.
In the latest period of labor unrest, terminal operations closed at the Ports of Los Angeles and Long Beach for Thursday’s night shift and Friday’s day shift. Work resumed with Friday’s night shift.
Trade growth to slow in 2023
Global trade growth in 2023 is still expected to be subpar despite a slight upgrade to GDP projections since last fall, WTO economists said in a new forecast on 5 April. Weighed down by the effects of the war in Ukraine, stubbornly high inflation, tighter monetary policy and financial market uncertainty, the volume of world merchandise trade is expected to grow by 1.7% this year, following 2.7% growth in 2022, a smaller-than-expected increase that was pulled down by a sharp slump in the fourth quarter.
The WTO’s trade projections, set out in the new “Global Trade Outlook and Statistics
” report, estimate real global GDP growth at market exchange rates of 2.4% for 2023. Looking ahead to 2024, trade growth should rebound to 3.2%, as GDP picks up to 2.6%, but this estimate is more uncertain than usual due to the presence of substantial downside risks, including geopolitical tensions, food supply shocks, and the possibility of unforeseen fallout from monetary tightening.
Apr 18/20 Maritech Conference & Exhibition in Vancouver, BC
Apr 18 - The Plimsoll Club Board Meeting @ 13:00
Apr 18 - CILTNA - Changing Face of the BC Marine Industry @ 16:30
Apr 25 - WMCC CMAC Debrief Meeting @ 1000
Apr 26 - WMCC PACMAR/NANS Meeting
Apr 27 - ICS Pub Night @ 16:30
May 4-5 - WESTAC Spring Forum - Winnipeg
May 9 - COS Board of Directors Meeting @ 1200
May 10 - Quarterly Pilotage Operations Meeting @ 1000
May 11 - The Plimsoll Club Golf Tournament @ Mayfair Lakes
May 11 - Vancouver Maritime Centre for Climate 2nd Anniversary Celebration
Jun 2 - The Plimsoll Club Nooner at the Nat @ 11:30
June 12/14 - Green Marine GreenTech 2023, Seattle, WA
Jun 14 - Vancouver Grain Exchange Golf Tournament @ Northview
Ship of the Week
Apr 14 - Glovis Sunrise
MV Glovis Sunrise
, a South Korean carrier, has conducted its first bio-bunkering trial in partnership with GoodFuels, using a sustainable biofuel blend called MDF1-30. The biofuel is produced from feedstocks such as processed used cooking oil and animal waste fats, certified as 100% waste or residue. The fuel has well-to-exhaust CO₂ reductions of between 80% and 90% compared to its fossil fuel equivalent. The trial took place during MV Glovis Sunrise’s
voyage from Europe to the Persian Gulf, and the vessel was able to consume the biofuel without any modifications to the engine or tanks.