Proceedings of Shipping Federation Conference held in Montreal

Proceedings of Shipping Federation Conference held in Montreal

By Brian Dunn

As Laura Dawson, Director of the Wilson Centre’s Canada Institute, Washington, DC, sees it, a combination of U.S. unilateralism, a softening demand for Chinese exports and imports and the Brexit fiasco, has resulted in global instability. To make matters worse, President Donald Trump will probably get re-elected in 2020 as there’s no viable alternative.

“We feel Canadian trade representatives are doing a very good job (in the U.S.) and it’s a relationship to be managed, not cured. Our organization is non-partisan and we work with Canadian businesses to make sure Canada is not part of any collateral damage,” she said during the 18th annual conference of the Shipping Federation of Canada in Montreal on May 22. (more…)

Hunt Refrigeration finds new opportunities to continue its growth

Hunt Refrigeration finds new opportunities to continue its growth

By Brian Dunn

Alan Espey was 24 years old when he came to Montreal from Dublin to launch a new company with the intention of only staying for a year. That was back in 1985 and he’s still here.

The company he launched with co-founder James Spicer was Hunt Refrigeration Canada Inc. with CP Ships being its first customer. Mr. Spicer passed away in 2003 and Rob Nadeau, who joined the company in 1987, became a partner and part of the management team. Mr. Nadeau retired last year and Mr. Espey is semi-retired, but is overseeing the transition to the new management team of son Yanik Espey, wife Hélène Newberry and Eric Bédard. (more…)

Port of Saguenay well positioned to support new area industrial development

Port of Saguenay well positioned to support new area industrial development

By Brian Dunn

Judging from all the planned activity in the works, you would think the port of Saguenay was a major player in Canada’s marine industry. Far from it. But that’s not stopping Saguenay Port Authority from forging ahead with some ambitious projects with its industrial partners that could make your head spin. For example, Black Rock Metals is developing an iron-vanadium mine in Chibougamau and constructing a metals processing plant in Saguenay’s IP (investissements portuaire)  sector valued at over $1 billion. The company will convert the concentrate into pig iron that will be shipped to the Great Lakes and Europe, according to Carl Laberge, General Manager, CEO, Port of Saguenay.

The port’s 12.5 km rail spur linking it to CN’s main line was inaugurated in May 2015 at a cost of $37 million and will allow Saguenay to play a key role in Quebec’s Maritime Strategy and Plan Nord, he added. The port’s rail facilities feature a loading ramp with access to indoor storage of more than 70,000 sq. ft. and access to more than 2,500,000 sq. ft. of high capacity outdoor storage, including a paved area of over 70,000 sq. ft.

In August, 2018, the Quebec government announced $63 million in loans and loan guarantees to Développements Port Saguenay, a subsidiary of the Port, to create the required infrastructure to develop the port’s IP zone and to support the Black Rock Metals project.

GNL Québec has completed environmental assessment studies for a liquefied natural gas plant it plans to build at Saguenay’s Grande-Anse marine terminal. The $10 billion project includes construction of a 750-kilometre pipeline to transport natural gas from the Saguenay plant to Ontario by Gazoduq Inc.

Since 2014, the Port has been working on developing a new marine terminal on the North Shore that will enable Arianne Phosphate of Saguenay to construct an apatite mine for about $1.2 billion. But construction on the new terminal will not proceed until the Port gets assurances the project will move ahead. The mine expects to produce three million tonnes of apatite concentrate (used to make fertilizer) annually. The project got the go ahead last October from Canada’s environment minister Catherine McKenna. And in June, the company signed a Memorandum of Understanding with SINOCONST, a large Chinese state owned company which includes financing and would give SINOCONST access to high-quality phosphate concentrate.

Last December, Barrette-Chapais began work at the Grande-Anse terminal for a storage and shipping site for wood pellets destined for Europe. The pellets will be made at a new plant that is part of the company’s sawmill in Chapais near Chibougamau. Once completed, the $17 million Grande-Anse facilities will produce approximately 200,000 tonnes of industrial grade pellets, which will replace coal in electricity production in the United Kingdom.

All of these projects will boost the region’s profile which enjoyed record activity last year. The port saw its traffic grow to 369,020 tonnes in 2018, up 13.2 per cent from 326,000 tonnes the previous year. The increase is largely due to the rise in volume of aluminum and road salt since other cargo volumes remained fairly stable. The port is one of the few deep water ports on the St. Lawrence, and its year-round Grande-Anse marine terminal can accommodate vessels of more than 100,000 DWT at a depth of 13.8 metres at low tide, Mr. Laberge pointed out.

Dry bulk accounts for almost 64 per cent of volume, followed by general goods at over 22 per cent and liquid bulk at over 13 per cent. The main products handled include aluminum, anodes, liquid pitch, bricks, coal, kaolin, de-icing salt and fluorspar.

Operating revenue grew by 20 per cent to $3.82 million, while net profit was up 37 per cent to $1.16 million. The results were attributed to cooperation between the Port of Saguenay, City of Saguenay, Promotion Saguenay, federal and provincial governments, community organizations and different port initiatives.

“We’ll do about the same this year as we did last year. But our volumes will grow in 2020 when the wood pellets production ramps up,” said Mr. Laberge. “And it will continue to grow in 2021 and beyond with all the other projects coming on stream.

In addition to Black Rock, there are other mining projects in the planning stages.”

With over three million acres of land, the port is currently working with the government of Quebec on developing its industrial zone by improving its infrastructure with the installation of natural gas facilities and high voltage electric power lines to accommodate more heavy industry.

The cruise ship terminal at La Baie also enjoyed a busy year, with a record 57,000 passengers on 56 vessels visiting the region, making it the third most import port of call on the St. Lawrence, behind Quebec City and Montreal. One of the highlights of last year’s cruise season was the arrival of MV Disney Magic and its 1,752 passengers during its first call at a Quebec port on Sept. 24, which attracted several hundred onlookers. This year’s cruise season which runs from May 1 to Nov. 2, will welcome among others, 3,000-passenger Caribbean Princess on Aug.11, Sept. 16 and Oct. 6, 2,500-passenger Queen Mary 2 on Sept. 10 and Oct. 13 and for the first time, 2,700-passenger Mein Schiff on Sept. 28. “We expect a similar cruise season this year which is impressive, considering that we’ve only been in the business for ten years,” noted Mr. Laberge. The City of Saguenay contributed more than $6 million to add floating docks and a floating breakwater to improve visitor experiences and to increase cruise passenger capacity. The icebreaker system that protects the Port’s infrastructure during the winter was also updated.

The Port continues to show a commitment to its community by being heavily involved in several non-profit organizations, supporting more than 42 organizations in the region in 2018.

Paul Pathy on the ups and downs of business, and the frustration and loss to the economy of operating without sufficient icebreaker support

Paul Pathy on the ups and downs of business, and the frustration and loss to the economy of operating without sufficient icebreaker support

By Brian Dunn

As it celebrates its 75th anniversary this year, Fednav is showing its appreciation for the support it has received from the Montreal business community, by naming its two new Lakers Federal Montreal and Federal St. Laurent. It’s the first time Fednav has named a vessel after a city. Federal Montreal will be delivered at the end of August and Federal St. Laurent is expected to arrive at the end of June. The 35,000-tonne Lakers are being built by Oshima Shipbuilding in Japan with six holds, four cranes and onboard ballast water system. (more…)

Proceedings of the Arctic Shipping Summit held in Montreal

By Brian Dunn

Coordinating the aims of the various stakeholders in Arctic development is a daunting task which needs to be clarified, while competition will likely be centred around sovereignty issues such as the disputed limits of the Continental shelf and economic issues. The remarks were made by Mike Emerson, Director, Marine Transportation Systems, United States Coast Guard (USCG) during the 14th Arctic Shipping Summit in February in Montreal. Global shipping, especially in the Arctic, is not on the U.S.’ radar and there needs to be a business case made, such as a return on investment, to attract American investment in the region, he added. (more…)

The cost of hijacking and corruption – Proceedings of 2018 BLG Annual Law Seminar

The cost of hijacking and corruption – Proceedings of 2018 BLG Annual Law Seminar

By Brian Dunn

The cost of hijacking and corruption

In the film Captain Phillips based on the 2009 hijacking by Somali pirates of U.S.-flagged MV Maersk Alabama, the character played by Tom Hanks is taken hostage for a ransom that was never paid after a tense standoff. Maersk Alabama was also the first American cargo ship to be hijacked in two hundred years.

While hijacking is clearly the most dangerous type of situation facing shipping companies in some parts of the world, there are less severe incidents which still have to be dealt with on a daily basis. One of the most common is bribes to officials at certain ports who can make life difficult and costly if shippers don’t cooperate. (more…)