COS Weekly News - Friday, 8 December 2023

COS Weekly News - Friday, 8 December 2023

‍‍COS Weekly News - Friday, 8 December 2023


In the news...

‍Local News

CSL achieves biofuel milestone

CSL has reached a significant milestone in its Great Lakes biofuel program.  Over the past four years, CSL's biofuel program has clocked 75,000 hours on B100 biodiesel, replacing 55,000 MT of fossil fuel, and avoiding 156,000 tonnes of CO2.  In 2023, CSL's biofuel fleet set a new record by using 16,400 MT of B100 in a single season, resulting in 80-90% reduction in GHGs, avoiding 50,000 MT of CO2 across its Great Lakes fleet.  CSL's biofuel program has played a pivotal role in shaping industry standards through data sharing with various organizations including the International Maritime Organization, classification societies, and original equipment manufacturers. Eight CSL ships will run again on biofuel in 2024.

Oldendorff plans to install wind rotors on post-panamax bulker

Oldendorff Carriers has ordered the installation of wind rotors on one of its post-Panamax bulk carriers in collaboration with Norsepower and Teck Resources. Norsepower will manufacture the rotors, constructed in part with recycled materials, including material from approximately 342,000 plastic bottles. The chosen vessel, the Dietrich Oldendorff, will have three rotors offset on the starboard side to avoid interfering with cargo operations. The addition of rotors, along with other emission savings measures, is expected to reduce emissions by 55%, providing an annual reduction of over 17,000 tonnes of CO2 emissions.

First domestic Green Shipping Corridor launched in Canada

At a side event to COP28 currently underway in Dubai, the Montreal Port Authority (MPA), Oceanex and QSL today announced their collaboration to create the first domestic green shipping corridor between Quebec and Newfoundland. This corridor will make it possible to green one of Eastern Canada’s busiest shipping routes, used daily between the Port of Montreal and the Port of St. John’s, and served by Oceanex and QSL. This initiative is part of their respective efforts to propel the energy transition and play a leading role in decarbonizing the shipping industry.

HaiSea Marine receives third Battery-Electric Tug

Sanmar Shipyards in Turkey has delivered the Haisea Brave, the third battery electric tugboat, to HaiSea Marine in Canada. The vessel is scheduled to operate in Vancouver alongside its sister ships, HaiSea Wamis and HaiSea Wee'Git, before being transferred to LNG Canada’s new export facility in Kitimat, British Columbia. HaiSea Marine is a joint venture majority-owned by the Haisla Nation in partnership with Seaspan ULC, providing tug harbour and escort services in an environmentally-sensitive region. The tugs, based on the ElectRA 2800 SX design by Robert Allan Ltd, are designed to achieve 70 tonnes of bollard pull and operate on battery power alone during ship-berthing and unberthing missions.

Nanaimo Port Authority's proposed tariff changes

Nanaimo Port Authority has proposed changes to their handling rates and tariff, which will take effect from the 1st of February, 2024. The proposed changes include a 5% increase in Harbour Dues, Wharfage Fees, and Berthage Fees. The new fee document is available from the Nanaimo Port Authority's website. Organizations interested in making a representation in writing to the Nanaimo Port Authority regarding the proposed fee revisions may do so in writing by email to arolston@npa.ca before 30th January 2024.

Trigon Terminals accelerates engineering work for LPG project

Trigon Pacific Terminals Ltd. (Trigon) is advancing engineering work for its proposed Trigon LPG Project, aiming to repurpose a portion of its existing facilities for liquid petroleum gas (LPG) exports. The project includes completing pre-FEED engineering, rail design, and risk assessment planning. Trigon aims to diversify its operations amid the Canadian government's thermal coal export ban in 2030. The project includes over 120,000 cubic meters of new LPG storage capacity, leveraging existing infrastructure, and plans to start operations by late 2027, subject to regulatory approvals.

Quebec's CUPE dock workers reject mediator's proposal to end lockout

Port of Quebec's 80 longshore workers, in a vote last week, rejected the mediator's proposal to end a more than one-year lockout with a 70% majority. Facing the prospect of a second Christmas on picket lines, the workers found the offered resolution unsatisfactory. The lockout, ongoing since September 15, 2022, has led to the employment of replacement workers. The union emphasizes the need for both parties to return to the bargaining table and negotiate a mutually satisfactory agreement. Negotiations began on May 31, 2022, with the union requesting mediation on June 16, 2022.

New in-land terminal planned for Nova Scotia

Millbrook First Nation has partnered with Canadian Rail Equipment Works and Services to develop an inland shipping terminal near Truro in central Nova Scotia. The facility, named We'kopekitk, aims to enhance cargo flow through the Port of Halifax, reducing truck congestion in downtown areas. The terminal will be equipped with railway sidings, cranes, and warehouses for efficient container sorting and transfer. The initiative aims to move more cargo by rail, reducing the number of trucks entering the downtown core, and contributing to energy efficiency and emission reduction.

CN to acquire Iowa Northern Railway

Canadian National Railway (CN) has signed and closed an agreement to acquire Iowa Northern Railway (IANR), adding approximately 275 track miles in Iowa to CN's U.S. rail network. The transaction is subject to regulatory review by the U.S. Surface Transportation Board (STB) and has closed into an independent voting trust. IANR serves upper Midwest agricultural and industrial markets, particularly in biofuels and grain transport. The acquisition aims to support local business growth, create single-line service to North American destinations, and maintain access to existing carrier options. The STB decision on the transaction is expected in 2024.

‍Government News

Canada announces West Coast Green Shipping Corridor MOU

On the margins of COP28, the Minister of Transport, Pablo Rodriguez, announced the signing of a Memorandum of Understanding to pursue the establishment of a green shipping corridor between Canada's west coast ports and ports in the United Arab Emirates, Korea and Japan.  The MOU showcases the power of partnerships across the marine sector and includes Indigenous groups, governments, shippers, shipbuilders, ports and terminal operators, clean fuel producers and cleantech companies. While the Chamber of Shipping did not sign the MOU ahead of the announcement this week, we are continuing discussions with Transport Canada on the details of the MOU and the industry endorsement.

Last week, we noted that Transport Canada launched the Green Shipping Corridor Program and the call for funding proposals for clean ports and clean vessel demonstration projects.  On December 12 at 08:00 PST Transport Canada will host a webinar to share information about the program and answer any questions. For details on the webinar contact the Chamber or email: GSCprogram-ProgrammeCMV@tc.gc.ca.

National Supply Chain Office kicks off with virtual forum

Last Friday, the Minister of Transport, the Honourable Pablo Rodriguez, announced officially the establishment of the National Supply Chain Office, led by Assistant Deputy Minister Robert Dick. This initiative is supported by an investment of $27.2 million from Budget 2023. In collaboration with industry, labour, Indigenous groups and other levels of government, the Office will work to increase efficiency and resiliency across our supply chains, including mitigating impacts from disruptions. While details on the mandate are included in the news release, there is an open invitation to industry stakeholders to join the inaugural National Supply Chain Forum, a virtual event to be held on December 15th at 09:00 PST.  This virtual event marks the beginning of a series aimed at providing insights into federal processes and initiatives touching on supply chains, enhancing transparency within our supply chain community, and offering a dedicated avenue for supply chain participants to ask questions. Click here to register.

Celebrating marine protection off the west coast of Haida Gwaii

The Government of Canada issued a news release to celebrate the third anniversary of increased marine protection measures off the west coast of Haida Gwaii. The marine shipping industry in partnership with the Haida Nation and the Government of Canada has been supporting a Voluntary Protection Zone (VPZ) off the west coast of Haida Gwaii as part of the Proactive Vessel Management initiative under the Oceans Protection Plan since September 2020. The news release recognizes the shipping industry's high level of compliance and the resulting success in mitigating current and future impacts by reducing vessel transits through this sensitive ecological area. Our Chamber of Shipping members and other association members continue to be instrumental to the success of the VPZ.

‍US News

Bay Houston Towing orders multiple Robert Allan RAstar tugs

Bay Houston Towing has contracted Sterling Shipyard to build RAstar 3200-W tugs, designed by Robert Allan Ltd. These tugs, classified as ABS Low Emission Vessels (US), aim to diversify the fleet with powerful, eco-friendly features. With dimensions of 105 feet in LOA, 46 feet in beam, and 18.3 feet in molded depth, the tugs prioritize enhanced seakeeping. Powered by EMD 16 E23B HD Tier 4 EPA engines, they target a notable 116 short tons of bollard pull, emphasizing emission-friendly operations. The vessels feature advanced deck machinery, including electric winches and capstans, aligning with Bay Houston Towing's commitment to high-performance, green tugs.

‍International News

Seaspan and Glovis to enter PCTC market with LNG and ammonia-ready newbuilds

Seaspan Corporation is diversifying its portfolio with an order for up to ten dual-fuel LNG Pure Car and Truck Carrier (PCTC) vessels in collaboration with South Korean shipping company Hyundai Glovis. Seaspan has contracted China State Shipbuilding Corporation's Shanghai Waigaoqiao Shipbuilding for the construction of six firm and four optional 10,800 CEU dual-fuel PCTCs. The vessels will be ammonia and methanol-ready, marking Seaspan's entry into the Pure Car and Truck Carrier market. The deal aligns with Seaspan's commitment to alternative fuels and sustainability, with the shipowner already having an extensive newbuild program, including 25 dual-fuel LNG containerships.

EU considers expanding list of banned discharges from ships

The European Union is considering stricter measures to reduce pollution by expanding the list of materials banned as discharges from ships in European waters. The Transport and Tourism Committee has proposed several steps, including extending current EU rules on discharges to include sewage, garbage, and residues from scrubbers. This would build upon the existing rules that prohibit the discharge of oil and other noxious or polluting substances. The committee's draft mandate aims to ensure that all international standards on preventing illegal discharges from ships, developed by the International Maritime Organization, become part of EU regulations. The proposal also includes measures to enhance enforcement and increase penalties for illegal discharges.

CEOs call for end date on fossil-fuel powered vessels at COP 28

The CEOs of leading global shipping lines, MSC, Maersk, CMA CGM, Hapag-Lloyd and Wallenius Wilhelmsen, issued a joint declaration at COP 28 last Friday calling for an end date for fossil-only powered newbuilds and urging the International Maritime Organization (IMO) to create the regulatory conditions to accelerate the transition to green fuels. The joint declaration calls for the establishment of four regulatory cornerstones, starting with an end date for new-building of fossil fuel-only vessels and a clear greenhouse gas (GHG) intensity standard timeline to inspire investment confidence, both for new ships and the fuel supply infrastructure needed to accelerate the energy transition.

ABB launches CO2e Calculator to aid shipowners estimate their Carbon output

ABB has launched the CO2e Calculator, a digital tool that allows shipowners, operators, and designers to estimate the emission-reduction impact of various ABB technologies on board ships. The tool covers five ABB solutions for the maritime industry – Azipod electric propulsion, energy storage, Onboard DC Grid power system platform, shaft generator, and shore connection – demonstrating their potential to support the shipping industry's decarbonization goals. The calculator provides transparency into the effectiveness of ABB's solutions, helping stakeholders make informed decisions aligned with the International Maritime Organization's net-zero ambitions.

‍Upcoming Events


Dec 15 - National Supply Chain Forum @ 09:00 

Dec 15 - COS Liner Committee Meeting @ 1200 Terminal City Club

Dec. 25 - Christmas Day - Office Closed

Dec. 26 - Boxing Day - Office Closed

Jan. 1 - New Year's Day - Office Closed

 

 

‍Ship of the Week

8 December - K.J. Gardner

The Western Canada Marine Response Corporation (WCMRC) is temporarily docking its newest oil response vessel, the largest in Canada, at Ogden Point before stationing it in Beecher Bay. The K.J. Gardner is named after its current President, Kevin Gardner, who has been at the helm of the organization since 2001 and has led the largest expansion of oil spill response capacity ever seen in Canada.  Throughout his work, Kevin has conducted himself with the values of collaboration, leadership, service, and building and sharing knowledge. He has created meaningful avenues for communities to contribute traditional and local knowledge and build upon local preparedness capacity through training and resources provided by WCMRC. A recipient of this year's Oil Spill Task Force Legacy Award, presented by the Pacific States - British Columbia Oil Spill Task Force, Kevin is set to retire at the end of the year so we are pleased to see that his legacy will continue on the water.

The response vessel K.J. Gardner is a 244-foot vessel that will help fill a gap in oil spill response support in the area, committing to a maximum six-hour response in shipping lanes, down from a previous 72-hour window. WCMRC is partnering with the Trans Mountain pipeline expansion to provide safety support for oil transportation over the Salish Sea.

The vessel, originally designed for offshore oil platforms, has been outfitted with spill response equipment and can hold and transport one million litres of oil gathered. WCMRC further stated that they spent ~$6 million on new equipment and ~$400,000 on installation costs to prepare the vessel for response capabilities.


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